The Essential of Mobile Payment by Jolito Ortizo Padilla

1.       Background of the Studies:

Zain Bahrain was established in Bahrain market in 2003 when the country is on the bleak of telecommunications operations where services were inefficient and high rate of costs prevails. To make life better in Bahrain Zain formulated a technological aspiration among Bahrainis in terms of excellent services and an atmosphere of excitement through mobile technology. Its broadband and WiMAX  services enhance every individual and businesses as well and considerably accommodates thousands of Bahrain users with pride and  enthusiasm. The excellent delivery of services with the energetic customer service serves at the affront of operations that gives Zain the epitome as the best telecommunication in Africa and Middle East.

Zain strength is on training and development as major standpoint of growth in building Bahrain market. Presently, Zain lunches its 4G that enhances the capability of its operations to the maximum in terms of reliability, high speed and cost savings. The company is banking on its Core Values to provide aspiration to its thousands of customers in Bahrain.

Zain venture in M-Payment is another landmark that magnifies  Zain into a pedestal of success to enhance its image in the MENA region. As Zain is engrossed to the excellent customer service, more product alignment is meted to suit its customer needs, wants and expectations.

2.       Introduction:

Using the internet and mobile environments allows customers in buying goods and services from anywhere and anytime with Mobile payment. Payment is through digital goods by downloading software, tickets and e-books or by services like games, booking tickets, auto parking and trading. Using the payment through mobile phone is the important factor for an organization. The benefit of which is for convenience and economical to customers in mobile payment category.

When the customer shops online they can use mobile phone for the payment of the product and services for transaction purposes. Unique code is required for bank recognition when payments are made. Validation is done after the payment is made.

In Bahrain , according to the Ministry of Telecommunications , mobile phone users is at almost 6,34,500 as of February, 2014, 98% of the total population living that are both expatriates and Bahrain nationalities. For security and convenience purposes any of the customers are able to adapt to a new payment system to provide a solution based on this new technological payment. The cost of transaction is negligible as compared to the transaction costs. The transformation of the mobile phone to a personal mobile wallet is the vision of the m-payment (Ding&Unittan, 2006).

There are some suggested m- payment applications ( Ding and Unittan, 2006)

1, Payment through automation like vending machines and ticket machines

2. Taxi meters and shop counters

3. Wireless application protocol for internet payment through mobile access.

4. Using the internet fixed sites

5. Individual to individual payments.

There are some payment schemes that were successful but that is based on the implementations and geographical locations. (Padilla, J, 2011) An interoperable payment system and standard is set in the acceptance of m-payment must be obtained. Mediators like Paybox m-payments is implemented and extracted through m-payment infrastructure.

The key players that played the important role in M-Payments are the consumers or customers which transact the payments through his mobile device in which they are installed and registered with the Zain Telecommunications or financial institutions. They obtained a credit and debit statements. Merchants which is Zain telecommunications sells the services to the consumers ; the issuer that maintains the  consumer accounts and payments by the financial institution; acquirer which maintains  accounts of the business organization by transferring funds and the certification authority that Issue  certificates to banks customers and merchants.

3.        Information System Background:

Reasons why M-payments is essential:

1.       Convenience and personal attachment- M-Payment is convenient to carry by the use of mobile device and ensure trust among the merchants.

2.       Payment is airtime- airtime payment is computed with accuracy and settled amicably.

3.       It acts as a third party mediator and familiar with the customers- consumer location and person identification is known and the transactions are known by the mobile operator.

4.       Provides text and voice communication- a multifaceted services can be used since it provides

Text  and voice data. 

5.       Provides access to the world regardless of time and location.

6.       Ensure protection of transaction because it is authenticated and becomes secure.

7.       Preference to geographic area where location is being provided.

8.       In remote towns and rural areas, mobile services can provide access to the merchants

9.       Transactions can be personalized with mobile phones.

Issues with M Payments

There are limitations and constraints among mobile banking like keyboard, memory, processing and bandwidth which prevent the transactions of m-payment. But in the future these limitations are be stricken out due to faster broadband access.

Others restrictions are:

1.       With M-payment, customer’s shares data from other customers which will keep them away from the payments, thus they wanted to be anonymous.

2.       Mobile phones got lost easily, that restricts them to use m-payment

3.       The limitations of signal receptions which the customers have the perception that the mobile operator is less reliable.

4.       Due to the high investments of mobile operator, like upgrading the solutions and no interoperable global solutions that cause the roaming becomes complicated. Also, there is a higher credit risks from the banks or mobile operator.

5.       The inflexibility of m-payment solutions in the use of hardware and software.

M-Payment Security

The transaction amount is based on the level of security required. In the case of the low valued amount the security implementation is less worth therefore no security is provided. In case the customer requires notwithstanding the value of the amount, PIN is used for encryption. This PIN is only known to the customer and nobody can do the transaction for him/her. The transaction is to be authenticated and a X.509 v3 marginal key is kept to authenticate an encryption. A high level of security is used by the use of smart card.

There are many security communications are being used in m-payments. One of this is WAP that displayed an Internet Information enabling WAP in the mobile device. The Wireless Transport Layer Security (WTLS) standard which is the basis in WAP 1.x security is a provision of TLS. There are many standards that are connected to security at the level of application, the level of transport and management level that increase the security capacity in WAP. These are  1) WAP Identity Module ( WIP) which is stored in the mobile device, a tamper resistant smart card chip used to store Public Key Infrastructure (PKI) keys. 2) The WMLSSCrypt , WML Scriptto API interfacing the application programming that is  in WMLS Crypto Library (WMLSClib) as a security functions  and using the basic security services , WIM and 3) The Wireless PKI (WPKI) are used to extend at the maximum and the wireless environment PKI( Aswin , R, 2003).

111. Analysis of the IS

Systems of Zain M-Payment:

M Pay bill through Vodafone

It is the simplest and easiest way system using the virtual point of sale (POS) small amount of money. The charge is through the phone bill of the customers or from prepaid. The transactions involve three systems which are the customer, merchants and the m-Pay Bill server. There is a registration for m-Pay Bill online by registering their credentials, phone numbers and PIN number. The prepaid airtime is then deducted with the phone bill and the amount is charged.

Customer data is kept in the database and can be shared with other service providers thus privacy is exposed which is part of the system problem.

TextPayMe

TextPayMe provides payments for P2P in sending to mobile phones and Web browser. The payment system solves the unattended segments of the market namely the parking market, the F2F payments with the merchants and transferring funds whenever the customers has short of payment bills in the restaurants or any service establishments. No registration and installation is to be done in the mobile device, just send and receive text messages. The customer need not worry about fraud and losing the mobile device.

TextPayMe needs a credit card or bank account initially as funds. SMS with a specified number of mobile phone by the customer is being sent to TextPayMe .After which call is initiated requesting for the PIN authorizing the customer to pay to complete the payment. This system is convenient with a secure dominance for every mobile phone nowadays.

PayME

The PayMe is being supported by Gemplus, PBS and Orange. A WAP based mobile phone, a PC and the internet is used supported by a credit, debit cards. There will be a registration by the customers with the payment server. A PIN is then issued and in the mobile phone through SIM. The purchase request is sent  by the customer  through SMS to a merchant  via the payment server. The response by the payment server authorizing the payment is being sent for confirmation purposes. PIN is then issued by the customer to confirm the purchase request and debit the appropriate amount. The process pass through the payment gateway, which then generates a receipts and send it back to the merchant.

Customer’s information is not detailed online which is of the advantage to the customer. This system is fraud free because it is secured by tapping the PIN on the payment terminal or on the phone. The authentication confirmation by the payment center is with the coordination with the Elliptic Curve Cryptography (ECC) cryptographic system (public key cryptography though elliptic curves). Encryption of data is validated with the digital signature with the banks availability though end to end encryption.

Paybox

P2P system is being used with the POS payment through mobile phone. The customer need to register and Paybox gives them a PIN. Customer communicates with Zain Telecom according to his telephone numbers.  Zain then send messages to Paybox  then message the players for the authority to pay with the merchant name and amount requested. A PIN number is then issued by the payer informing any authorize banks in Bahrain to act on the payment using the system. The process is similar with the Internet payments through the customer accounts and both the users and merchants are being charged a service fee. The system is being used in micro and macro payments, Any fraudulent acts is being detected by Paybox . The system uses the Interactive Voice response (IVR) to call the customer which is less secured. The transaction is only available with Global System for Mobile Communications (GSM) enabled phones (Padilla, J, 2010). The system used the GSM for authentication and authorization by the use of Caller ID and (MSISDN) – mobile subscriber integrated services digital network.

OBopay

This allows mobile phone users to purchase and receive funds through their mobile phones. The market segments targeted are restaurant bills and considerably the theatre and cinema houses. OboPay depends not on SMS but on the java client.  This gives the interfaces secured Cingular and T-Mobile and represented by handset manufacturer like Nokia, Samsung, IPhone and Sony Ericssson.

P2P payments support this service system. Customer is being issued a debit card and ATM withdrawals for payments. After the registration and installation on the mobile devices, a debit message is received and any amount is credited to a receiving person. Charge is being included during the transactions. ATM is used to buy or purchase any items in the retail outlets. MasterCard or Visa Card is also associated with the system. Money called or any message is similar to the debit card, therefore balance of payment can be checked anytime and anywhere.  

MobiPay

The system can be used for mobile or stationary merchant; internet payment; the P2P payments or to recharge mobile telephone and pre-paid accounts. With customer’s telephone number a registration is made with all operation is being carried out during the transactions. PIN numbers is being issued to the customer for safety purposes. The remittance is being charged to the issuer cards or with the associate of the clients with the confirmation message is sent to the issuer. Security code using the PIN based on the personal Mobipay number and being encrypted in the mobile phones.

BIBIT

IBM, Microsoft, Intershop, Oracle, Mercantec, KPN Mobile and Allaire supports BIBIT. BIBIT is used by   International Internet payments paying the customer by way of foreign internet by means of the traditional paying method by a specific country using the local currency. A virtual shop is then chooses by the customer and redirected to the BIBIT system which notifies the customer the specific action like shipment of the customer from country to country. BIBIT responds by informing the customers to all the transaction whatever the method of payment is. Software used is Java based. SSL is encrypted in BIBIT server which is included in all transaction. A different mobile devices connected through the Internet can be used to accept payment with the use of BIBIT Payment Suite. The system acted on the security specifically in Europe uses GPRS as transactional standard.

PayPal Mobile

Paypal commence 300million accounts throughout the world. The system allows sending and receiving securely by online applications by means of authorized bank accounts with corresponding e-mail address. Paypal ensures privacy because it acts on the payments without shared financial information with the merchant.

Paypal works through credit cards. The customer has to registered and applied with the system using his credit card details. Specific software must be installed when the PDA or mobile phone is used. Mechanics are two ways, firstly by texting through the phone number with the amount of the receiver’s phone number and secondly setting instructions according to the scheme by calling the recipient’s number. Using the Paypal Mobile, the activation of accounts is by registering and logging through Paypal accounts , choosing the PIN  to secure the m-payment. PayPal Mobile sends text message to PayPal to make payments and PayPal calls back to the user to confirm the payment. For text to buy method after the merchant receives the payment, the items is shipped to the receiving party.

Future Trends of M-Payment

Many innovative payments methods depends upon the failure of acceptance following the success of eCash and the German’s GeldKarte setting a criteria for the satisfaction of the customers. According to the survey by GA Consultancy (Padilla, J, 2010) shown that there is no accepted payment system globally. A standard payment method for the B2B and B2C m-payment should be accepted and exist in this technological environment.

E-commerce situation has proved to be successful in designing the m-payment system. M-commerce should concentrate on micro and macro payments until customer is flexible enough to adjust to this kind of payments. There will be no automatic changes on the part of the customer to shift from the traditional payments to the m-payment. Teenagers are flexible enough to adapt to this kind of technology faster than the old ages. A predominant payment through cash is currently used but decreases as the present generation favors this technological advancement.

The problem lies on wireless network infrastructure that varies based on the global payment system. A secure infrastructure can provide the consumer and merchants to use the m-payment which serves as a challenge to Zain telecommunications.  Posed by the Internet problems and WAP signifies a challenge to m-payment. PKI keys provide mostly a security solution to m-payment. Other issues in security like privacy of data, confidentiality, integrity, authentication, non repudiation, accountability, system availability and customer protection are to be given priority in m-commerce development.

Software and hardware solutions can solve technical difficulties.  Global m-payment with good transactional intermediaries and inoperable standards is best serve with satisfaction to the customers.

Requirements for a Common M-Payment Model

The future of M- payment should have processes: 1) Payment service is to be registered, 2) Authentication and authorization, 3) Proof of transactional completion, 4) Conflict resolution

According to Ding and Hempe,(2005) and Schwiderski-Grosche and Knospe (2206) ,  the ease of use, security, divisibility, transferability, interoperability, privacy, popularity or brand cost, and  standardization are the key results areas for m-payment. The adaptability of m-payment is of utmost importance and should be well accepted by the customers. This standardization is further enhanced by PKI keys combined with smart cards that increased trust and acceptability of m-payment.

Padilla, J (2010) noted that the future payment will be supported by the payment process through credit cards, debit cards; direct debit to bank account, and account based stored values. The insistent of bank using a definite network service provider is a taboo to the customers since they have the right to choose the network provider and only when the bank is to process the m-payment.

 There are many mobile devices that has many featured network standards like Bluetooth, 802.11a, 80211b, HyperLAN2, and 802.11g WLANs. The 2G, 3G, systems are most commonly used 3G are CDMA2008 by Qualcom and WCDMA by Ericsson. The GSM network is using the WCDAM called UTMS and dominates in the European Countries while in the United States; the usage of CDMA is widely welcome. According to Padilla, J, 2010, the most common issues that connect to the M-Payment are security, interoperability, convenience, and ease of use.

Recommendation:

Zain telecommunications should adapt to m-payments in terms of global interoperability and a setting of standards must be developed. The development of the business models should have to deal with customers and merchants for these are important to the business circulations. Fraudulent activities like virus and stolen devices creates a big problem in M-payment thus security policies by countries all over the world should be mitigated and addressed for. Fraudulent activities hinder the growth of M-Payment. Privacy and anonymity should always be emphasized to which is relevant to security where personal data, transactions and content should always hold confidential and should not be divulged to anyone. The customers trust the network operators and the its business partners so they play an important factors in the developing M-Payment in the future. Trust and security lies on both the merchant and customers as M-Payment dominates into the marketplace.

Conclusion

Many m-payments have been in the market today relying on the specified segments but the existing m-payments systems has its own limitations and generalized payment procedures. To adopt m-payment the customers are benefitted such as convenience, savings and least cost, reliable, adaptability, quick response and scalability. The issues concern is anonymity, robbery, poor signal reception in some areas, and the hardware and software used are inflexible. Gender, age, cultural diversity, regional adaptability,  kind of purchase, amount of purchase, mobile devices used, and the network operator greatly influenced m-payment in the world’s context. Proper standardization and security policies should be a primordially requirements when there is an interoperability problems.  

References:

Aswin, R. (2008) From E-commerce to m-commerce: The Wireless Proposition, Citi banks Guide to cash and treasury management in Asia , pp26-37

Baker, P and Stone D, (1998) a research report in Data warehousing, London, KPMG Management Consultant

Carat, G (2003) E-Payment system database: Trends and analysis. Retrieved October 2006 from Http:// epso .jrso.es/DocsBackground -9pdf

Ding M.S. and Hampe , J. F. (2003) , June 9-11 Reconsidering the challenge of e-payment: A roadmap to plotting the financial of future M-Commerce Market. Paper presented at the 16^th Bled e commerce e transformation Bled, Slovenia

Ding, M.S & Unittam R.C (2004) Mobile payments (m-payments) –An exploratory study of the emerging issues and trends. E-commerce and m-commerce technologies . Hersheys, PA: Idea group

Padilla, J, (2010) Strategic Management- M payment solution and m commerce fraud management.

Chan, M and Padilla, (2011)  A research report on predicting mobile payment success in Asia. Journal of Information Technology Published by Nanyang Technological University Press.

 

 

 

 

 

 

 

 

           

Viva Bahrain : The Evolution from 2G to 4G by Jolito Ortizo Padilla

Reminder: Copyright Infringement is Punishable by Law.

Organization Background

VIVA Bahrain, a part of the STC Group, launched commercial services in Bahrain in March 2010 with the aim of transforming the telecommunications landscape in the Kingdom.

Since launching services, VIVA has thrived to provide consumers in Bahrain a fresh approach to mobile telecommunications services. We launched operations with the latest innovative technologies and have always kept the customer as our sole focal point. VIVA’s best in class voice and data network provides subscribers with reliability and connectivity and is a direct manifestation of our customer centric approach. VIVA has built a simple and easy to understand, yet flexible and customizable product portfolio that gives high value for money to our subscribers ( Padilla, J. ,2012)

VIVA positively impacted the telecommunications market by exposing it to a number of firsts including the first HSPA+ network, the fastest broadband service in the Kingdom at 42Mbps,and the launch of high-tech devices such as the Windows Phone 7 and the iPhone 4 (Padilla, J,2012)

Our customer centric focus and innovation has led to VIVA being recognized as Bahrain’s most advanced telecom operator and achieving unprecedented market share as a 3^rd entrant. VIVA has built a strong network of customer touch points, including a comprehensive retail network and a user-friendly web portal (www.http//.viva.2013)

Besides being a provider of high quality communications services to consumers, VIVA also has a comprehensive portfolio of products to help businesses grow and succeed. With our drive and innovation we have created more choices in the marketplace and are truly empowering businesses. Our business offerings include mobility products, national & international connectivity services and internet solutions (www.http//viva.com, 2013)

Our success is because of the trust and support of the people of Bahrain and VIVA is fully aware of such responsibility that  this creates. To this end, ,VIVA has launched “VIVA Jusoor” a program which will develop and run long-term projects to benefit the Bahraini community. VIVA is also the official partner of the English Premiership Champions Manchester United and under the umbrella of this partnership has launched various programs with to develop and promote football in Bahrain www:http//viva.com, 2012)

 

Introduction

The rapid development of new mobile and wireless technologies and integration with the internet are major challenges for mobile communications and Internet businesses. Forthcoming generations infrastructure both in access and core networks, providing both higher data rates and packet access with Quality of Service (QoS) . The ultimate goal is the development of technological infrastructure for universal communication network, which will be based on the convergence of existing networks (fixed and wireless. Such ubiquitous, but heterogeneous networking is expected to be fully operational in the Fourth Generation (4G) of mobile networking. In the new environment many business opportunities will emerge, as technological innovation is expected to enable the development of new value added services (UMTS Forum, 2000).

 In this early stage, it is not useful to predict potential growth rates and size of the new market. Several attempts to do this have failed to predict the potential of highly innovative markets. For example, the popularity of the Short Message Service (SMS) had been underestimated whilst Wireless Application Protocol (WAP) services over GSM have been overestimated

In this context, two main questions arise:

1.       Who will the key market players are?

2.       How will business models evolve due to the introduction of new technologies?

In the following sections we attempt a systematic account of key industry players and their likely roles in future generations of wireless technologies, leading up to 4G. In doing so, we sketch likely scenarios of market dynamics based on mobile networks technological evolution. In particular the following section introduces key mobile telecommunications players (mobile operators, Internet service providers).  We present technological innovation mobile networks and its impact on the key players. We mainly focus on mobile operator’s strategies and their business relationships without market players.

 In the service provision value chain of both mobile communications and the internet, the key legacy players that are expected to sustain or even improve their market position in the dynamic environment of technological innovation (Padilla, J,2010) are as follows:

·         Connectivity providers that own wireless network infrastructure and have large customer bases for mobile communication services. Viva have been the leaders of developmental success of mobile telecommunication market in Bahrain, by providing personal communication services and information services through wireless (GSM) network. The creation of the critical mass of mobile customers. They have been investing large amounts on upgrading, maintaining, and expanding their networks while developing competence in managing and pricing mechanisms. The mobile communications market presents intense competition, which in combination with continuous technological innovation is shrinking profit margins as communication services are becoming commodities (Laffont and Tirolle, 200). Communications services remain the primary revenue source for VIVA. However, they already faced the challenge of developing new strategies towards providing value added services, content and applications, in order to sustain their profit levels.

 

 

·        Internet Service Providers (ISPs)  connectivity and, sometimes information providers that have IP network infrastructure, Internet know how, and how high speed backbones, which maybe integrated as the core network of 3G and 4G technologies. They have a large customer base of fixed internet subscribers. They are currently managing their own networks locally (traditional ISPs) or internationally (backbone providers). They will provide connectivity services (local and global) Internet access, through packet switched networks. Many ISPs also provide information services to both individuals and corporate customers. They have been developing, in collaboration with technology integrators, various types of value added services covering security,QoS and wide range a wide range of commercial needs. National markets have numerous ISPs that either provides competitive network services covering security or focus on niche markets. However, intense competition is driving the market to consolidate.

 

·         Content providers providers that are currently active mostly in the fixed internet. They provide services at the applications level, typically on top of a TCP/IP communication infrastructure. Their role will be empowered in the new market, as 3G and 4G network technologies will provide the necessary infrastructure for wider use of multimedia content and applications as well as for provision of high value added personalized services. Their services are usually bundles of information content, customized information needs. Some content providers have developed mediating roles that facilitate customer exploitation of the internet by providing suitable online facilities for communication and/or business transactions.

There are two players having a significant impact on technology deployment and hence, market evolution, namely:

·         The mobile device and infrastructure vendors (Nokia, Samsung, IPhone , Sony Ericsson)

·         The software vendors and communities (Microsoft, Symbian, Linux)

As mobile and wireless IP network technologies are not fully deployed and no specific standard are widely adopted yet, the role of the market player  will be critical , though the selection and timing of the technology that will be implemented on end user devices.

The market position of Viva is determined by their respective market power or, in other words, their ability to command superior revenues and profits. The main revenue source is the customer base. In many cases the key player who owns the customer base has the market power to decide on new business relationship with other players. Mobile operators have large customers bases already created from the provision of mobile telephony. ISPs and information providers also manage large customer bases on the Internet. Customers currently subscribe to mobile operator, for mobile communication services, to ISPs for Internet access services and to information providers for content or application services over the Internet (Padilla,J, 2012)

The convergence of the mobile and Internet markets will facilitate provisioning of the above mentioned services through a common network infrastructure. Thus customers will need to subscribe to more than one operator for access and network services. Instead, they will buy network access and probably end to end services with QoS via a single contract. In this context, the strategic challenges are as follows: Who is going to provide network access and services to the customer, and what are the other key players going to do? Will they adapt their strategy by developing different value added services?

 

Business Relationship Models in 2G and 2.5G Technologies

Communication services in 2G are based on circuit switched radio channels (and in Europe and GSM standard), Kano (2000) identifies the driving force of GSM success as standardization vis-a vis the proliferation of platforms that defined First Generation analogue systems (inter alia, NMT, TACS, and AMPS) , 2 G standardization in Europe occurred for three substantive reasons. First, over the European continent, individuals” mobility makes the case for regional “roaming” compelling. National boundaries in terms of mobile communications is less meaningful than in the US where for example, international or the technological developers and vendors into global businesses able to compete with the United States and Japan. Third, Europe has a predilection towards central standards setting and adoption in contrast to the United States where market is a significant determinant of outcomes.

In the GSM, the drivers were two fold. First, there was a clear push- this was arguably feasible because of the modest market expectations for the technology. Second, there was no prediction for the generation of a mass market; moreover, the existence of the mass market in Europe cannot be explained by consumer demands nor is the explanation rooted in technology. The answer lies somewhere in between. For example, SMS, the GSM short messaging service, was not demanded by consumers, but once available became a cultural phenomenon, especially in the youth market. Mobile operators have generated high profits vis  SMS , which is considered to be a “ killer” application in 2G.

Wireless Application Protocol

Recently, Viva invested in Wireless Application Protocol (WAP) technologies that permit in embryonic (i.e. limited) interconnections with the internet. They expected to generate high profits by providing information services that are enabled through WAP. WAP is an open, global specification that empowers mobile users with wireless devices to access and interact with information services. WAP can be used on of various communication systems.WAP was designed for the current generation of wireless devices. It adds to a relatively small additional small additional memory requirements to non-WAP mass market products.  Content providers saw an opportunity to extend their business model to include an untapped market of mobile customers. As mobile operators own the access network, ISPs and content providers often enter into agreements with them to effectively exploit their investments in WAP (Padilla,J, 2011)

Regarding security, WAP includes a specification called WTLS, which implements option for authentication and encrypt that, are optimized for use in the mobile environment. WAP is using existing Internet standards such as XML, User Datagram Protocol (UDP) and IP. The WAP architecture was designed to enable standard off-the shelf Internet servers to provide services to wireless devices. WAP is based on Internet such as HTTP and TLS, but has been optimized for the unique constraints of the wireless environment. The Wireless Markup Language (WML) used for WAP content makes optimum use of small screens by and allows easy navigation. However, available bandwidths is very limited, circuits switching is not efficient for data transfers, and mobile devices have limited capabilities and are unable to support a wide range of more complex and demanding WAP applications.

With the introduction of 2.5G technologies, GPRS (General Packet Radio Service) and EDGE (Enhanced Data Rates for Global Evolution), the technical limitations of 2G will partially removed. 2G and 2.5G technologies are empowering mobile operators by enabling them to expand their business scope towards information services, notably information portals. GPRS deployment will enable customers to have efficient (because of packet switching) and effective (because of higher data rates) Internet access. According to Bettsletter et al, 1999, GPRS is an important step in the evolution toward the Third Generation mobile networks. “ The challenge in the development and implementation of GPRS has been in integrating the circuit switching mode technology of GSM and the packet switching mode technology of GSM and the packet switching mode of GPRS. Bringing GPRS online involves operators overlaying a packet based infrastructure over the GSM circuit switched network infrastructure. This is both a major upgrade and a step towards UMTS rollout.

GPRS does a not require that mobile devices dial up to access the Internet because users are always connected. The service enhancement is illustrated by GPRS’s ability to allow users to capitalize on services  currently available on the fixed Internet, namely file transfer, Web browsing , chat, email, telnet, corporate LAN access; location dependent information services; and WAP. Another key issue is the expectation of operator’s equipment vendors, particularly device manufacturers, with respect to the provision of mobile devices that can exploit the full range of services they expect to offer. The recent experience of GPRS phones suggests that operators are vulnerable to the withdrawal of vendors’ support for new services should they choose not to market the application supporting devices.

It is also worth mentioning that 2G operators without 3G licenses will attempt to compete with 3G operators on a range of non- voice services (e.g. information services). GPRS could be the top of the see the need to migrate to 3G.

 We present the 2G business relationship model, where players retain their traditional business activities. Mobile operators provide network and information services to the customer. Any player wishing to offer services to mobile customer will need to interconnect to the customer’s mobile operator. On the other hand, if a more powerful user device is used, and standard TCP/ IP protocols and applications are used, the business model could change drastically and start resembling what we expect for the early 3G phase.

Business Relationship Models in 3^rd Generation Technologies

Third Generation wireless technology will enable high speed mobile convergence to the Internet while offering customers full access to rich content , applications and value added services. An important issue to consider is Fransman’s observation that mobile telecommunication technologies have in the past developed well in advance of consumer demand (Fransman, 2003, forthcoming). There is little evidence that there exists a demand for 3G and its supporting hardware. Operators, however, need to maximize revenue through services and applications in order to recoup the often huge investments ploughed into network development and licenses.

Recent stock market declines have been fuelled by telecom stocks, in turn informed by the liabilities that some operators have taken on as a result of license auction. The shocks in the financial markets are rooted in uncertainty about business and consumer interest in the technology and its capabilities especially in the context of modest but adequate competition from innovations that significantly enhance GSM platform, notably GPRS, which fully captures the essence of incremental innovation in its building on existing technology whilst increasing capacity.

3G is not about voice (to the extent that it may be provided free of charge in future tariff packages), it is about data communications and multimedia based packet switched, volume charged models. To deliver on this plurality of technical and content skills have to be deployed in some collaborative effort. It is not yet clear what the terms of such collaborative efforts will be. What is clear is that operators are in danger of entering parts of the value chain in which they have no competence to control the arena and avoid having to relinquish control over their customer information-probably the most valuable asset in the whole scheme.

 Circumventing the power of the operators may also feature in the future scenarios. If operators try to control the content access by users- for example, by directing customers through particular portals rather than simple access to the Internet-Handset manufacturers may well exploit this constraint and differentiate their products by making it easy for users to reconfigure their devices to suit their own needs rather than those of the operators. The trade offs, however, is whether users have the inclination and motivation to do this.

Business Relationship Models in 4^thG Generation Technologies

The system enabled 4G technologies will combine mobility with broadband services on converging figure networks. A broad range of access systems will be offered to the subscriber in order to cover a variety of requirements. Hence different access systems will have to be integrated with the backbone network. Convergence and ubiquitous networking are going to be key concepts. Technological revolution will lead to a seamless network where the customer will be able to access application, from any access infrastructure, terminal or user interface. Wireless networks will evolve towards higher data rates, flexible bandwidth allocation in any part of the assigned spectrum and the ability to efficiently handle asymmetric services.

End to end IP connectivity over wire-line and wireless networks will support multimedia applications. Consistent, QoS and security are of strategic importance for any player involved and must be offered at the link, transport and application levels in coordinated manner. The same services are expected to be available in all environments using intelligent application layer adaptation technology to cope with widely variable bit rates (Wireless Strategic Initiative-IST Project, 2000). Customers will be able to use any service of any third party without being limited by exclusive arrangements or other exclusionary tactics of the access provider. From business perspective, the objective is to provide cost effective bandwidth to mobile customers while focusing on increasingly individualized, content and commercial applications.

Fourth Generation Impact on Access Networks

The introduction of 4G technologies will have critical implications on access networks. Aiming at the development of a globally integrated access network and the provision of “seamless service”, a layered structure of the access technologies is expected to appear. This can be compared to hierarchical structures in mobile radio systems. This concept facilitates an optimum system design for different applications areas, cell ranges and radio environments, since a variety of access technologies complement each other on a common platform. In this structure the degree of support for mobility and the cell sizes increases from the lower layer to the top layer.

The Broadcasting layer contains emerging digital broadcasting (or distribution) systems such as Digital Broadcasting (DAB), Digital Video Broadcasting (DVB), High Altitude Platforms (HAP) and satellite systems that have a global coverage and support large cells, full mobility, as well as global access. Individual links are not necessarily needed for broadcasting services. This technology can be used as broadband downlink channel to provide fast transfer of Internet content. Other access systems may be used as return channels for data requests and acknowledgement signaling in highly asymmetric services.

The 2G and 3G layer enables a high system capacity in terms of customers and data rates per unit area. It will consist of 2G and 3G mobile radio systems for data rates up to 2Mbps. The systems on this layer provide full coverage, full mobility and global roaming. The 2G and 3G layer is well suited for small to medium bit rate multimedia applications and supports individual links.

The LAN layer is intended for very high data applications, it should be employed in “hot spots” such as company campus areas, conference centers and airports. This layer contains WLAN (Wireless Local Area Network) type systems. These systems are flexible with respect to the supported data rates, adaptive modulation schemes and support asymmetric services. In contrast to 2G and 3G systems, this layer contains systems that are characterized by a shorter range and provide mainly local coverage with local mobility. Where global roaming will be required, however, full coverage is not expected.

The Personal Area Network (PAN) layers will mainly be used in office and home environments. Various information appliances (laptops. Printers, personal digital assistants) and traditional appliances (video cameras, TVs, refrigerators, toasters, washing machines, smart sensors) can be connected to each other to provide short range communication via systems such as Bluetooth,. These systems can also be used to connect the equipment directly to medium access system or to multi mode terminals that can also communicate on one of the other network layers and are of course also equipped with a short range connectivity system. This facilitates an efficient interconnection between the devices as well as a connection from these devices to the public network. PANs may not support mobility (Wireless Strategic   Initiative –IST Project, 2000)

The Fixed network layer contains fixed access systems such as optical fiber twisted pair systems (xDSL) and coaxial systems (CATV).Furthermore, fixed wireless access or wireless local loops can be included in this category. However, portability with global roaming is feasible and might be supported. These systems of the fixed network layer are characterized by high capacity and relatively low cost.

Interconnection issues on 4G Networks

Interconnection will be the key to the formation of 4G networks. Both mobile communications and the internet market have established various types of interconnection agreements to ensure connectivity between networks. An interconnection agreement ensures bilateral exchange of traffic between two networks according to specific conditions.

When considering interconnection in mobile communications, where services used to be provided through circuit switched networking, agreements were more straightforward and related to the total amount of traffic and the peak amounts of exchange between networks. However, the future seamless network will be based on packet technologies. The Internet market provides a suitable metaphor for analysis. Internet connection agreements are broadly classified into two categories: peering that involves exchange of traffic free of charge, and transit that involves usage based pricing. The new seamless network will have an IP based core network managed by internet legacy key players such as backbone providers. Therefore interconnection agreements, at least at the initial phase of future network development, will be internet driven. However, issues related mobility and roaming may be better  handled by Viva  that have already developed such as core competencies in circuit switched networks (Laffont& Tirole, 2000) 

Communications and network services between various networks become a commodity, as technological innovation will lead to low coast provision. However, the various autonomous systems will need to collaborate closely in order to increase efficiency of the future network and provide services to the customers. Interconnection between various networks will be necessary. In order to minimize inefficiencies observed in the internet (free riding, asymmetrical information), a common framework for interconnection agreement is needed.

 1V. Recommendations

In 4G, Wireless LANs (WLANs) and other unlicensed spectrum local connectivity solutions will compete as substitutes to mobile networks (which are attempting to provide ubiquitous service).  WLANs will provide an alternative access network in the framework of a 4G seamless (inter-)network. WLAN access can be envisioned as an involving no usage cost since the use of spectrum will be free; the main cost would be the cost of the deployment (and secondarily maintenance)

The initial deployment of WLAN is expected to focus on access from customers within specific areas that it covers, the “hotspot” e.g as a corporate network. The relatively low cost of implementing WLAN technologies in specific “hotspots” may increase competition in the market for network access , thus putting more pressure in prices. Furthermore, in order to exploit network externalities, WLAN operators may cooperate to create a wider coverage access network based on WLAN islands.

Conclusion

The evolution of business relationship models in mobile networking indicates the leading role of Viva Telecommunications. However, the ability of manufacturers to supply infrastructure and handset according to the launch timeframes of new technologies is critical. In addition technological innovation enables the provision of new value added services that create new business opportunities for Internet players. Ultimately, the proliferation of wireless data and multimedia is likely to be driven by the extent which applications simplify or add value to people lives and by usability of the devices they run out.

The increasing importance of information services for mobile customers, along with the decreasing margins from communication services provision, suggests that Viva should reconsider their strategy, in order to maintain the leading position in the future seamless network.

References:

Bettsteeter, C, Vogel , H.G  (199(, GSM Phase 2 +General Packet Radio Service GPRS,: Architecture, protocols and air interface IEEE Communication Survey  pp 23.24

Fransman, M (2001) Evolution of the Telecommunication Industry into the Internet Age, International Hanbook on Telecommunication Economics, Edward Elgar Publishing, ppp236, 237

Laffont, JJ (2000) Competition in Telecommunication , MIT Press, 2001, p96, 97

Padilla, J , (2010) Strategic Management. 2^nd edition , p14,17,187,123

Padilla,J (2012) Study of Smart Telecommunications Evolution, American Journal of Information Technology , October, p19, Vol 123

UMTS Forum (2008) Shaping the Mobile Multimedia Future-An extended Vision from the UMTS Forum , Report No. 10 , September

Wireless Strategic Initiatives –IST Project (2000) –The Book Visions of 2006 : Visions of the Wireless Worls, http://www.1st –wsi.org

www.http//viva.com-conf

Index:

 The ultimate goal is the development of technological infrastructure for universal communication network, which will be based on the convergence of existing networks (fixed and wireless. Such ubiquitous, but heterogeneous networking is expected to be fully operational in the Fourth Generation (4G) of mobile networking. In the new environment many business opportunities will emerge, as technological innovation is expected to enable the development of new value added services (UMTS Forum, 2000).

In 4G , Wireless LANs (WLANs) and other unlicensed spectrum local connectivity solutions will compete as substitutes to  mobile networks (which are attempting to provide ubiquitous service) .  WLANs will provide an alternative access network in the framework of a 4G seamless (inter-)network. WLAN access can be envisioned as an involving no usage cost since the use of spectrum will be free; the main cost would be the cost of the deployment and secondarily maintenance (Padilla, J, 2012)

 

 

 

Figure1: Current Business Relationships Model in 2G and 2.5G

 

 

 

 

 

 

 

 Figure 2- Current Business Relationship Model

Source: Viva Telecommunication / Padilla, J.. Strategic Management

Project Management Studies by Jolito Ortizo Padilla

Moving Offices Project

Project Management

Select a project that you have been involved in and prepare a report which describes the relevant project activities and artifacts, guided by product life cycle diagram.

Background:

Almoayyed  Office equipment has 45 staffs working at Exhibition Road, Manama and spread over eleven offices within the old office building. New accommodation  is currently being prepared by Almoayyed Contracting , and Almoayyed Office Equipment staff are due to move offices around the middle of July , 2014 –indeed, Almoayyed Contracting engineers have indicated informally that the new offices should be ready by August 27, 2014. The new offices are considerably more extensive than the existing ones and will allow the AOE to expand in line with strategic planning projections for the next few years.

AOE management has decided to take advantage of the office move to upgrade the office IT network. Some of the existing equipment will be retained but a significant amount of new equipment is to be supplied and installed. The new equipment includes scanners, printers and modems supplied by Xerox. It also includes PCs and monitors supplied by Dell. There will also be a requirement for a range of software, for email, voice recognition and network management. This is to be installed by a firm of specialist software engineers called YK2 Ltd.

Most of the AOE office equipment and furniture can be moved by their normal removals contract, Shifters Ltd. However, the computers and other specialist IT equipment have to be moved by AOE in-house IT division. The IT division is contractually required  to move the equipment for insurance and security reasons but YK2 Ltd will be required in order to decommission the system and prepare for recommision the system upon completion. There is only one other organization called Virus Ltd that would be capable of carrying out this work.

AOE has made it clear that the computing system must be shut down for a shortest possible time. This is because AOE has a contractual responsibility to provide administration services.

Defining

Projects that are already running have their own informal communication channels and information difficult to access these once they are established, in the case of informal communication channel. It is immediately apparent that there are some rigid deadlines are not met(Gofton, K 1997). Indeed, if these deadlines are not met, there are financial penalties to be paid. The immediate problem for the project manager is to analyze these deadlines and penalties as risks and to make some kind of evaluation of impact and probability.

There are two primary danger areas. These are downtime and late move damages. Downtime cost is high and sure to occur. There is nothing that the project manager can do about these other than to ensure that downtime is kept to the minimum and is not duplicated ( Irish Times, (1998). Accurate project planning should enable the project manager to isolate the amount of downtime that is necessary and to ensure that adequate resources are available so that works that contribute to downtime are completed on time.

The late occupancy damages are high but are not certain to occur. Again, careful planning can go some way to ensuring that all necessary works are completed on time, but the final determinant of whether or not non-occupancy damages are payable is the main contractor , Almoayyed Contracting.

The various supply contracts appear to be in order although the project manager should make sure that all the necessary orders have been placed are flagged with the latest placement times (given the time lags that are required between order and delivery), the project manager might also note that the supply contracts appear to be fairly weak, in that they state that delivery will be on time “or your money back” (Chrisnal , P ,1997). Money back only provides the opportunity to start all over again with another supplier. In the meantime, the damages and downtime costs continue to accrue. It is clear that communications will play a particularly important part in this project. The lack of firm contractual linkages and clear line of authority suggest that the project manager will have to make a “soft project management skills in order to try to make the best use of and control people(Gofton, K 1998).

Consider the likely role and responsibilities of the project manager . These role and responsibilities will vary in relation to the project life cycle of the various works that are in upgrading the program. 

As required the works are therefore underway and the project manager will not be able to play an active role in such aspects as briefing and selecting the various consultants and suppliers  (Bray,Roger ,1997). However, the project manager have the opportunity to review the planning and costing calculations that have been carried out and to establish new and more accurate time and cost control procedures that will ensure that the remainder of the “moving offices” project runs smoothly and efficiently . These are set out next according to six project stages (Manchester, P 1998).

1.       Provides advice on all aspects of the project during feasibility – possibly involving detailed investment appraisals and economic analysis, cost benefit analysis and financial modeling.

2.       Coordinates the development of the project brief, which is essential part of the most project development plans and which formalizes the client requirements in a format that can be used as the basis for the subsequent design process.

3.       Advises on the appointment of specialists feasibility study consultants, as required;

4.       Provides monitoring and coordination of all approvals and consents;

5.       Establishes an overall conceptual program for the project

6.       Establishes project control and reporting procedures.

The project manager would consider all remaining aspects of the office move from the operational and logistical viewpoints. The level of financial modeling would be low in this particular case, but the logistics of what is involved could be considerable (Poynder, R 1996). The Project Manager would have to consider particularly the legal implications of some of the contracts that are in place with the hauling company. These contracts may take the form of service level agreements, and there could be penalty clauses that come into force where the operator has to pay damages to the hauling companies for every day that the agreed level of services is not being provided ( Shilingford,J 1997).

Planning

One of the Project Manager first formal requirements would be the review of the formal brief (if there is one). The brief should act as the focus for the plan and should set out the primary success criteria for the project. The preparation of this will have involved a series of pre-planning meetings, where all members of the project team were allowed to make their contribution to the development of the brief (Witink, D.R. , Vriens, M and Burhenne, W 1994). The end result should have been a document that outlines the requirements of the project and defines what achievements are necessary for the project to be considered a success.

Figure1

The project Manager would review this brief and then set up a formal sequence of progress and review meetings, together with some form of reporting system. As part of the tracking and control procedures, it is essential that there are regular meetings where progress and procedures are reviewed. Meetings would be weekly, monthly or some other frequency (Witink, D.R. , Vriens, M and Burhenne, W 1994).       There would normally be some process for the proceedings to be recorded and circulated to the various project team members.

This process of review is sometimes known as focusing or definition. The process acts as an interface between the planning, or “intent” , phase of the project and the implementation, or “doing”, phase  (Manchester, P 1998). The focusing process takes the aims and intentions of the project sponsor or other member of senior management or client body, and converts them not measurement variables within an implementation monitoring and control system (IMCS)

The IMCS tracks the development of the implementation phase and evaluates performance in each of the key defined success-factor areas and expresses any divergence as a variance (Reed,D. 1996). The IMCS allows variances to develop so long as they remain within the predetermined acceptability limits (the variance envelope). The variance envelope therefore restricts implementation variances to maximum and minimum levels that are established by the range of eventual outcomes that are necessary in order to realize the project success criteria (Reed,D. 1996).  

Focusing is also part of an ongoing process. Focusing establishes the monitoring and control systems and also calibrates them so that performance can be measured (Marsh, P 1997). The IMCS then works alongside the implementation process for the remainder of the project life cycle in order to ensure an acceptable outcome.

The project manager would give advice on the appointment of any remaining professional consultants. Large organization often has fixed lists of approved consultants. These practices are invited to tender on some kind of Rota basis, with preference being given to those that have performed well in the past (Shilingford,J 1997). Terms and conditions of engagement could be standard or could be negotiated   . The project manager would then review the project team in conjunction with senior management, making changes or additional appointments as necessary in order to ensure that the project team operates effectively and efficiently (Vernon, M 1998). The assistant project manager might put forward the project manager’s proposals on resources to senior management and then support this bid as far as possible. The final decision on staffing and resource levels, together with limits on external consultant fees, would be the station manager’s responsibility.

Once the boundaries and membership of the current project team have been agreed, the project manager has to set up an appropriate leadership style and control system for the team. This would be difficult in this particular case as most of the project team members have been appointed and the project itself has been running for some time (Gofton, K 1997).. Initially, the current team will need a lot of direction and will be very task oriented; as the team develops, a less directive approach will be required.

The project manager will have to keep alert for any personality clashes and other areas where there is obvious potential for conflict. If conflict appears, there has to be a procedure in place for dealing with it. Conflict detection and resolution will probably be through informal systems and will rely heavily upon the informal communication system within the project team (Vernon, M 1998). The project manager also has to establish some forms of stress evaluation to ensure that individual team members are not becoming over-stressed.

Figure 2-PERT Data

In the design stages, the project manager (Dempsey, M 1995) should coordinate all aspects of the design to ensure that the evolving solution continues to meet client requirements. He develops initial time, cost and quality objectives and agrees these projects  success criteria with client AOE; develop a project statement of works (SOW), which details all aspects of the project designed; typical components which includes project drawings, schedules of rates, item descriptions, some forms of measured works listing and standard and specific forms and condition of contract; develops a work breakdown structure(WBS) (The Financial Times, 1997) , which isolates the individual work packages that act as the basis of all subsequent planning and control approaches; develops a cost accounting code (CAC) system based on the WBS elements and primes each work packages with a budget total using a computerized database estimating system (CDES) which establishes a budget total for all work packages in the project from the outset.

Using the CAC system he develops a precedence diagram for the project and, using the critical path method (CPM) or the program evaluation and review technique (PERT), develops a draft master schedule (DMS) for the project (Dempsey, M 1995).

Following client feedback on the proposed DMS, he develops alternative scenarios for meeting adjusted time, cost or quality objectives by presenting trade-off options to the client together with recommendations on the most favorable type of trade off for any given solution (Poynder, R 1996). He then applies the accepted trade-off solution in order to generate a project master schedule (PMS).; ensures that the designs comply with all internal and external design requirements; ensures that the designs comply with all relevant national and international statutory requirements; and if appropriate , coordinates the design and implementation of a prototype and coordinates performance and recording; ensures that all aspects of design are compatible with execution and prepares and coordinates an accurate cost plan and budget plan for the project then set up a suitable earned value analysis (EVA) reporting system for subsequent cost control.

The project is already under way in this particular case, and so the design stage work is probably complete. In terms of ensuring that the team operates effectively, the project manager has to prepare a formal plan of the project and set up appropriate monitoring and control systems. The project manager would check again that the cost limits and time scales that have been entered in the brief are correct and then use as the reference points for the planning process (The Times, 1996) for time control, the project manager would look at the contract documentation and split up into obvious work packages. These packages could be defined by work type or by contractor /supplier type. It would probably be logical to consider IT removals as one package since it is carried out by a single contractor under a single contract. There would be no point in considering the removal in more detail as the removal of the IT systems is being treated as a single entity.

Figure 3- WBS

For cost control, the project manager would take the work packages identified for time planning and ascertain their costs and values. This information could be obtained directly from the priced contract documents. This process would allow him to build up cost plan and provides costs and values or each work package in the project (The Economist, 1999).

Tender and awards is the process involved in inviting prices for the work, based on the competitive pricing of the works as described and summarized in the SOW (Oldroyd, R 1996). In this process the project manager coordinates the preparation of a complete pre-tender cost check, which will confirm that the project as documented and billed complies with the client’s cost criteria; coordinates the preparation of full SOW documentation and authorizes the issue of this documentation to prospective tenderers; the project manager  will generally also advise on the selection and procurement of prospective tenderers and the tendering procedure to be adopted for the project; advises on the tender to be accepted; coordinates any activities required in order to conclude the contract , which could include checking on any necessary , carrying out checks on individual tendering companies.

The project manager needs to check that all contracts have been put in place and formally concluded. Responsibility for the preparation of the contracts would probably be with the specialist legal services section within the organization  (Oldroyd, R 1996). The project manager would only identify any sums under  AOE Control that have to be retained or held as bonds or as performance retention sums. Most contracts require the client to retain a percentage in order to provide leverage over the contractor at the end of the works, where the client is trying to get any defects remedied or any outstanding works completed (. In this case, most retention and bond sums will be held by Almoayyed Contracting than AOE.

As with the aspects of project management control, a pre-tender cost checks are increasingly being carried out by CDES-based software. A CDES pre-tender cost check has the advantage that it uses a blank version of the actual document that the contractor is going to price (Dempsey, M 1995). There is virtually no chance of misunderstanding or misrepresentation of any part of the pricing process.

The project manager would also have to check carefully to ensure that all pricing in any AOE  contract is in place and that there are no ambiguities in the blank or priced documents. Most standard forms of contract list procedures that are to be adopted in the event of errors or omissions being detected.Some contracts require tendered to stand by the submitted tender price or to withdraw. Other contracts allow the tender sum to be adjusted in line with any corrections that are required in order to describe the scope and extent of the work accurately (Green-Armytage, J 1996).

The project manager also have to monitor the award of contracts and ensure  all necessary liability provisions, such as performance bonds, are in place before the contract is awarded.

Project Execution:

The project manager (Dempsey, M 1995) coordinates the efforts of all members of the design team and any contractors or suppliers; establishes a suitable performance monitoring and control system for the schedule; establishes a suitable cost monitoring and control system with sufficient sensitivity to operate at work package level; establishes a suitable quality management and control system with sufficient to operate at the appropriate level; establishes and operates an EVA variance analysis system; isolates variances and records them as part of a comprehensive variance analysis reporting (PVAR) system ( The Economist, 1997The); uses these variance reports as the basis for executive recommendations and actions; monitors and controls the team development and team building process;

In executing the contract, the project team is converting the design plans into reality. The project manager would have to put procedures in place for monitoring and control time, cost and quality together with necessary checks on team development and performance. In most cases this would involve the establishment of detailed cost plan and time schedules using the EVA based PVAR approach. Increasingly, these functions are being assisted by comprehensive project management software packages.

The PM would need to use all her control skills during this phase. The project is developing and the team itself is evolving and changing in operational characteristics (Marshal, K.P. and La Motte, S.W. 1992). As a design evolves, there will be a need for a number changes that will have to be allowed for and contained within the change management system. It will be important to ensure that change request are monitored and controlled in order to ensure that they do not add significantly to the cost or time scale , the project manager will have to check to see whether the additional finance or time is available or will be made available. If not, it may be necessary to compensate for any such increase by finding savings elsewhere (Talvinen, J.M. and Saarinen, T. 1993).

Team and people management skills are required as the team continues to develop. As the project progresses, more and more aspects become fixed and there is less and less scope for change. In addition, the final completion times and costs become more and more accurately predicted. it may transpire that these are above and beyond the originally stipulated limits (Green-Armytage, J 1996). These developments can all lead to increase in stress and conflict levels. The PM motivational skills may be in greatest demand at this stage.

The PM will have to be most involved with the ICMS during this stage. The scope and adaptability of the ICMS is restricted in this case because some aspects of the project are directly responsibility of up track people(Daniels, N.C. 1993). There may also be a difference between the project success criteria for Almoayyed Contracting and AOE.. If there are any delays in the project , AOE will be liable for damages to company that will lease the new building ( Mafro)  because of late handover of the existing offices. These damages are high and are of great significance to UMS. They are probably of much less significance to Almoayyed  Contracting  as they only affect one small part of the   operational network.

Delivering

The project’s activities are formally completed and the deliverables or results are turned over to the customers. In either case, the project manager and team must obtain closure before moving on to their next assignment ( O’Connor, J. 1992). Additionally, the team, client and stakeholders will be concerned both about the disposition of this project and their immediate future.

A formal acceptance by the client ensures that the project is truly finished and helps give finality on the project. This can minimize continuing call from the client regarding the product usage or other questions, and it helps the team obtain closure and move on to other work with minimal disruption from the previous project ( Information Week, 1995). Additional objectives of project closure includes communicating staff performance, closing out all financial reports, improving estimates for future projects, improving project methodologies, smoothing the release staff and ensuring client and stakeholder satisfaction.

Proof can be provided by testing, analysis, inspection, or interpolation. The precise measures and methods used will depend on the project’s context. Sometimes, proof of completion relies on physical or chemical testing. For other projects, we conduct accelerated life cycle testing or simulate a system’s performance ( O’Connor, J. 1990).

Administrative closure involves bring to completion all internal aspects of the project concerning team members, management, other stakeholders, financials, and equipment (The Times, 1996). There are processes that ensure that no loose ends are left dangling like deliverable turnover, verification and acceptance which are reviewed and tested against previously determined requirements and are accepted by the customer with a formal sign-off; the post completion data that determine any variances in the schedule, cost and scope; follow up maintenance and warranties which if applicable hardware, software or other a reporting that provides information to functional management on the performance of project team members during the life of the project; ( Kahn, K.B. and Mentzer , J.T. 1997),  financials that all expenses are paid and project budgets are closed; releasing staff and ensure the smooth transition of all staff to new assignments therefore notifying functional managers with sufficient lead time so the meaningful work assignments can be made; and the final closing report that prepares a summary of the above information including any open issues and distribute it to appropriate stakeholders ( Shaw, R. and Stone,M 1990)

One of the first step in initiating project closure is to contact the team members’ resource managers to prepare them for closure (Curtis, J 1996). This includes two important actions such as the managers need to determine the team members’ next assignment and the project manager needs to communicate staff member performance to the resource managers.

The Project Manager should meet the team to review project closure as the team’s new assignment, plans for lessons learned, assurance that all deliverables are presented and accepted and the closure of administrative and financial information (Marsh, P 1999).

We discussed earlier that one of the benefit of project closure is the provision of a methodology to prevent repeating mistakes. This includes identifying what went well and what went poorly during the project, documenting it, and communicating this information to everyone who may benefit it  ( Shaw, R. and Stone,M 1988).

The purpose of the lessons learned is to capture best practices and improvement areas upon the completion of a project, major or substantial event, so that problems can be addressed and successes repeated in the future.

After the deliverables are completed, the project manager and team accumulate final sets of actual data on activities are recorded (Wheelwright, G, 1997)  . This information should be kept for reference in estimating future projects. Capture the final project costs and other financial information. Complete the financial reports required by your organization and submit them for approval Dempsey, M 1995). Ensure this step is done early enough to allow time for the finance group to provide feedback and handle requests for changes. Finally, archive all information in your organization’s formal archive.

This action is needed for all staff members who have a large amount of time on the project and don’t report directly to you(Vernon, M 1998).  When team members have worked on a project for an extended period, their direct managers may not have appropriate insights not their performance , making it difficult to appropriate raises, promotions or demotions.

One of the final steps in closing a project is to release the remaining staffs. This steps should be planned early and communicated to the staff members to relieve their concerns for the future. One techniques that may be employed for larger projects is to make the dismissal formal, either through a meeting where the project manager thanks the team or through a team celebration (Padilla, J, 2000)This provides the team with final closure and allows them to proceed to their next assignments without lingering concerns.

At the outset, the project creates the team. At closure the team created the project.

References:

Padilla, J, 2000- Strategic Management, 2^nd edition, p234, Pearson

Vernon, M 1998 – Keep Know –how in the company, Financial Times, 31 July

Dempsey, M 1995- Project Compartmentalized , Financial Times, 1 March , p6

 Kahn, K.B. and Mentzer , J.T. (1997), State of Project Management systems in corporate America, Journal of Business Forecasting, Spring, p56, vol67

Marsh, P 1997-The Price on the priceless, The Economist. 12 June 1997

Curtis, J 1996- Sorting out the project from chaff, Precision Management , 5 February, p35, Vol.16

Shaw, R. and Stone,M 1988

Wheelwright, G, 1997- Keeping Track of customers, Financial Times , 5 November, p23, vol5

The Times, 1996- Data Warehousing Supplement 5, June , vol34, pa23

 Shaw, R. and Stone,M 1990- Why so many companies are embracing the CRM trend, Financial Times, 3 Febraury, p4

 O’Connor, J. 2002- sophisticated project management tool , Financial Times , p76, vol 106, July, 2002

Information Week, 1995- System designed to support customers can actually drive them away, Information Week, p 18 12 June

 O’Connor, J. 2002-A sophisticated project management tool , Financial Times , p76, vol 106, July, 2002

Daniels, N.C. 1993-Information Technology: The Management Challenge Wokingham: Addison Wesley, pa567

Green-Armytage, J 1996-SBC Warburg speeds up risk management, Computer Weekly, 6 June, p 7  

Talvinen, J.M. and Saarinen, T. 1994-  Project Management process: perceived improvement in project management , Project Management and Planning, Vol 13, No.1

Reed,D. 1996 – Project Management,  a marriage of systems and project management , Junior of applied Project Management Research, Vol8, Number 3, Summer

Talvinen, J.M. and Saarinen, T. 1995- Project Management process: perceived improvement in project management , Project Management and Planning, Vol 20, No.1

Poynder, R 1996-Risk Management in Construction, pp234,235, 1^st edition, McMillan, 1996

Gofton, K 1997- Management Technique, Fingers on the Pulse, 17 July 1997, p14,  Volume 12

Chrisnall, P. 1997  Project Management, pp27,28, Prentice Hall, 1^st edition

Index:

One techniques that may be employed for larger projects is to make the dismissal formal, either through a meeting where the project manager thanks the team or through a team celebration (Padilla, J, 2000)

A CDES pre-tender cost check has the advantage that it uses a blank version of the actual document that the contractor is going to price (Dempsey, M 1995).

The IMCS tracks the development of the implementation phase and evaluates performance in each of the key defined success-factor areas and expresses any divergence as a variance (Reed,D. 1996)

Sometimes, proof of completion relies on physical or chemical testing. For other projects, we conduct accelerated life cycle testing or simulate a system’s performance ( O’Connor, J. 1990).

The process acts as an interface between the planning, or “intent” , phase of the project and the implementation, or “doing”, phase  (Manchester, P 1998).

The lack of firm contractual linkages and clear line of authority suggest that the project manager will have to make a “soft project management skills in order to try to make the best use of and control people(Gofton, K 1998).