Killen Alert August 2006
What Is In This Issue
- The most Important IT development on which all business and IT managers should focus - service oriented architecture (SOA)
- Suppliers
- Oracle’s Portal.com customers now face an uncertain future
- Amdocs wants to be seen as more than a core billing supplier
- Telcos need to add content billing software to the core
- Tips for marketing, sales, and IT professionals
- Management consulting tips
- South Africa: billing, telco, and SOA developments
- Culture: South African archeological development
1. The Most Important IT Development on Which all Business and IT Managers Should focus - Service Oriented Architecture (SOA)
During a speech in Africa at a major telephone company, Michael Killen said, “service oriented architecture (SOA), is the most important IT enterprise development of this decade, and in the foreseeable future. He recommended that every Fortune 2000 enterprise should, right now, have ten or more SOA developments underway.
After the speech, Sun Microsystems agreed to take part in two webcast interviews focused on SOA. They are, “Why SOA is the Most Important Enterprise IT Development of This Decade and the Foreseeable Future” and “How to Slash the Time and Cost to Develop SOA Applications and Integrate ERP Systems.” The video and transcriptions of the interviews are available at http://www.killen.com. In these interviews, Tony Willis, Sun Microsystems, helps business and IT management understand why they should develop plans for SOA applications and infrastructure. Tony also explains why enterprises should invest in a comprehensive set of software tools to decrease the time and cost to obtain the benefits of SOA.
These interviews are the start of a new series, “Most Important Enterprise IT Development of this Decade: Insights for Business and IT Leaders.” The May 2006 issue of the Killen Alert, reports on SAP, Oracle, and other Enterprise Resource Planning (ERP) companies’ SOA development efforts.
2. Suppliers: Portal.com (Oracle), Amdocs, and Telcos
Oracle has purchased the Telco billing-software company, Portal.com. Portal.com’s customers face an uncertain future. Will Oracle rewrite Portal software so that it conforms to “Project Fusion?” Gad Meir, has developed billing software for Portal.com and other suppliers, and worked as a consultant for Killen & Associates. In the webcast series, “Billing Challenges and Opportunities for Providers of Telecommunications,” Gad shares his thoughts on the future of the Portal.com software. http://www.killen.com/telecom/
Amdocs, an Israeli billing software supplier, continues to distance itself from its national roots. And the company is also distancing itself from its label as a supplier of core-billing software and services. Scott Kolman, marketing manager, Amdocs Corporation, shares how they now want the marketplace to view their company. http://www.killen.com/telecom/
Suppliers of core billing, electronic-bill presentment and payment (EBPP), and electronic invoice presentment (EIPP) - with a few exceptions, have not seized the content-billing opportunity. The core-billing suppliers have tended to expand the scope of their existing software, EBPP suppliers have tended to expand into the EIPP marketplace, and EIPP suppliers have migrated into the credit approval and management marketplace. This has created an opportunity for new companies to pursue the content-billing software market. CellMania is an example of a new company that is pursuing this opportunity. Please see interview with CellMania at http://www.killen.com/telecom/ .
3. Tips for Marketing, Sales, and IT Professionals
Michael Killen, taking a page from Aristotle says, “People have only three ways to persuade other people. They are by using the principles of ethos, logos, and pathos. The principle of ethos (credibility) says, “Promote the background of the speaker or an expert, to add weight to your effort to persuade. When a supplier refers to statements made by an industry analyst about themselves, their product, or a market opportunity, that company is using the principle of ethos. IT manager use this approach to assure business managers that they are heading in the right direction.
The principle of logos says to use logic to convince. When one presents a return on investment (ROI) analysis, they are using logic to persuade someone.
When a sales person says, “We only have a few computers left, the sales person is tapping into the fear of being left out. Apple Computer and Starbucks design their store experience as a way of tapping into emotions. They want you to feel happy when you visit their point of sales. All “design innovation” projects search for ways to use pathos (emotions) to influence customers. Since music has a profound affect on emotions, developers are now focusing on how to use music to persuade.
 4. Management Consulting Tips
Laura Roman, a Stanford University professor and management consultant, often hosts The Killen Report cable TV show when Michael is away on assignment. Laura recently interviewed Michael, after his return from an engagement in South Africa, about the intricacies of providing management consulting in a developing country. The video can be seen at http://www.killen.com/mci/.
5. South Africa: Billing, Telco, and SOA Developments
Of all the African countries, South Africa is the best market for IT software, services, and hardware. The sites StatsOnline, http://www.statssa.gov.za/, and The CIA World Facts, https://www.cia.gov/cia/publications/factbook/index.html, are best places to look for information. A combination of factors that includes people, infrastructure, health care, and climate makes South Africa the most Western-friendly African country for business.
Thabo Mbeki, president of South Africa, is trying to start an African Renaissance. He has encouraged South Africans to move forward quickly to develop their own economy and to seek out business opportunities in Africa, especially in Sub-Saharan Africa. However, he has shocked the world by failing to accept the causes of AIDS, and by failing to put the government behind a plan to slow the growth of AIDS. South Africa has the largest number of H.I.V. infected people in the world. Mbeki continues to question the effectiveness of the antiretroviral treatment. If it were not for his AIDS blind spot, he would clearly be the most successful head of an African country today.
On March 18,1992, South Africans voted overwhelmingly to end approximately 50 years of apartheid. Within a few years, South Africa was welcomed back into the world community. This black-run country provides opportunities for both blacks and whites. To overcome a half century of limited opportunities, the country is committed to moving blacks into professional positions in all segments of the government and industry.
IBM, Oracle, SAP, and Sun Microsystems and many other western suppliers are busy helping South African enterprises automate applications, upgrade infrastructures and improve workflow processes. The interviews that we conducted with Tony Willis, Sun Microsystems, provided insights on the emergence of SOA in South Africa.
Striata, a Johannesburg company provides software and services to the nation’s business and financial sector. Mike Wright, CEO of Striata, says, “We have successfully integrated with SAP’s CRM using SOA principles. The SAP system updates the messaging engine with user details, and the messaging engine updates SAP with delivery results. Both processes use loosely coupled file transfers ensuring the independence of each system.”
He went on to say, “The Striata Application Platform 2.5 supports the concept of SOA with the publication of a messaging XML schema. The core idea of loosely coupling the data input and output processes reduces the dependence on initial integration and allows both the operational systems and the eBilling system to evolve without impacting each other.” With Mike’s and Tony’s inputs, we came to the conclusion that firms in South African are aware of the emergence of SOA, and that they are developing systems that conform to SOA principles. http://www.striata.com/index-africa.php
ESKOM is South Africa’s energy supplier and Telkom SA is the nation’s telecommunication provider. The Government has opened the telco market to competitors. ESKOM is part of a consortium that plans to compete with Telkom SA. ESKOM and Telkom SA are the two largest billers. ESKOM relies on local governments to issue bills to customers. http://www.eskom.co.za/live/index.php
6. Culture: South African Archeological Development
Ken Dalglish, Take a Break Tours, Johannesburg, takes clients to places that are off limits to most tour guides and tourists. (Michael Killen always retains Ken to help him see the best of South Africa when he and his family travel in South Africa.)
Ken was having lunch with a Sterkfontein paleontologist, when Dr. Ron Clarke, came over to the table and gave Ken a special offer to witness a working site. The UN has designated Sterkfontein, located a few hours north of Johannesburg, as a “Cradle of Humankind,” World Heritage Site. Ron Clarke is world famous for finding "Little Foot" - the oldest complete skeleton ever found.
When lunch was finished, Dr. Clark asked Ken if he’d like to see how far his team had gotten in cutting the skeleton out of the rock. Ken instantly said, “Yes!” Non-professionals rarely get to see a dig in progress. Even more rare, is for the head of one of the most important digs to provide a personal tour.”
Ken added, “He took us right into where they are working. I saw the whole thing - even touched the skull, the femur and the hand bones. It was so amazing. And only when you see it, do you appreciate the difficulty of getting the parts out of the rock. I feel so privileged.” Ken ended his note to Michael by saying, “Next trip to South Africa, I will take you to Sterkfontein.”
Ken Dahlglish, info@takeabreak.co.za +27 083-457-4161
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Killen & Associates is a management-consulting firm that assists banks, telecommunications, information technology, and other enterprises develop new goals and strategies. Our tools include expert level knowledge of banking, telecommunications, information technology, and strategy. We also produce studies and webcasts. Presently we are developing two webcast series. They are
· “Most Important Enterprise IT Development of this Decade: Insights for Business and IT Leaders.”
· “Billing Challenges and Opportunities for Providers of Telecommunications”
We also release our webcasts on cable TV. Contact Jo Brown at info@killen.com.
http://www.killen.com, +1 650 327-2312
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Killen & Associates publishes the Killen Alert. http://www.killen.com
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