Slide1 : Network Provider Community of Interest
Milestone Meeting #1 SIU Dunn-Richmond Center
3:00-5:00 PM
June 20, 2006 Building a Collaborative Regional Economic Strategy
Enabled By Broadband Connectivity
Leading With Healthcare
CONNECT SI
Slide2 : Agenda - Milestone Meeting #1 3:00 PM - Introductions of Participants and GIS Mapping Team
3:15 PM - Overview of Connect SI and Role of Network Provider COI
3:45 PM - Review Central Role of GIS Map and Available GIS Resources
4:15 PM - Discuss Guiding Principles for GIS Data Provision, Security and Access
4:45 PM - Leadership of COI and Next Steps
5:00 PM - Adjourn
Slide3 : Population=423,670
Workforce=195,429
Slide4 : Connect SI: Strategic Goals Create a broadband enabled 20-county economic strategy
Build network provider, CED and health COI’s for regional economy
Communicate enabling economic role of connectivity to region
Benchmark impact of healthcare on regional economy
Develop connectivity business case for at least 3 Tele-health apps
Create GIS broadband demand aggregation map and peering solution
Build strategies to improve employee retention & raise wages in SI
Establish long-term regional framework to sustain initiative
Implement a successful collaborative funding strategy
Connect SI Strategic Engagements : Connect SI Strategic Engagements 20-County Economic and Community Development Leadership Engagement Health Services Community of Interest (COI) Engagement Connectivity Provider Community of Interest (COI) Engagement Enabled by Collaborative Regional Leadership and Connectivity Frameworks
Connect SI Potential Outcomes Drive Connectivity Demand : Connect SI Potential Outcomes Drive Connectivity Demand Connect SI Possible Five-Year Measurable Outcome Goals:
Create 10,000 new jobs paying $43,500/year plus health benefits=$435 million/year
Raise average wage by $3,400/year for regions workforce=$571.6 million/year
Reduce region poverty rate to state average of 10.7% from 16.4% affects 22,000
Reverse health service revenue migration to increase revenues by $100 million/year
Reduce regions real unemployment rate to state average=6.1%
Increase broadband penetration rates by 50% to finance ubiquitous broadband access Projected Five-Year Measurable Outcome Goals versus ViTAL Economy Client History:
Job creation goal is 40% of average client experience for comparable employment base
Average wage goal is 52% of average client community experience
Annual wage creation is 42% of average client community experience
Healthcare revenue creation goals are 20% of average client community experience
Unemployment rate goal is 50% of average client community experience
Slide7 : Role of the Connectivity Provider COI Champion collaboration of connectivity providers to grow regional economy
Collaborate to map all broadband network infrastructure assets in the region
Develop the business case for a sustainable shared-use broadband network in SI
Collaborate with other COI’s to identify who else benefits from shared access
Research and propose legal peering solutions to connect all of Southern Illinois
Use connectivity to make Southern Illinois attractive for work and workers
Develop COI and community understanding of connectivity impact on SI economy
Move region/industry from a mindset of parochial competition to co-opetition
Link the COI strategy to Connect SI strategy for regional economic transformation
Invest time, talent and treasure in making Connect SI a collaborative success
Connectivity Provider COI : Connectivity Provider COI Establish GIS Sub-Committee, Procure & Feb 2006-------------------------------------------------------->
Manage GIS Resources
Source and Map All Network & User Info Mar 2006--------------------------------------------------->
1 - Organize COI, Conduct Amplify Workshop Jun-Sep 2006
Set GIS Mapping Guidelines & Goals
2 - GIS Map Regions Broadband Assets, Sep - Dec 2006
Conduct Gap Analysis
3 - GIS Map Broadband requirements for Health Dec 2006 - Feb 2007
ED, CED and General Community
4 - Select a ROI based network peering solution Feb - Apr 2007
& Develop Reg’l Demand Driven B-Band Strategy
5- Connect COI Strategy with other COI Strategies Apr 2007
into Regional Strategy
Slide9 : What Would Define Connect SI Success for You? Your thoughts…
Benefits Articulated by Connectivity Providers : Benefits Articulated by Connectivity Providers Expands market size and market share for providers
Providers become customer solution partners
Dramatically increases provider customer loyalty
Opens up emerging market opportunities for providers
Positions connectivity as a strategic resource
Transforms customers into provider sales champions
Expands collaborative investment opportunities for providers
Maximizes return on network investment for providers
Focuses on increasing provider share of market GDP
Central Role Of GIS Map : Central Role Of GIS Map
Slide12 : GIS Map Is Central To A Connectivity Driven Growth Strategy
Provides a clearer picture of broadband connectivity for users and providers
Identifies gaps that are real and dispels myths about gaps that may not exist
Creates ability to map connection of remote resources to solve problems
Aggregates market demand opportunities…clarifies expanded market opportunities
Enables provider collaboration on network investments…increases ROI
Creates a robust economic development tool for attracting KBE’s
Unified Connectivity Growth Strategy : Unified Connectivity Growth Strategy Regional Marketplace
Enterprise Customers
Communities of Interest
Industry Clusters
Lifestyle Application Offerings
Increased Share of GDP
Slide14 : Regional Economies Transformed by Broadband Connectivity Western New York - 1st networked rural health/learning service across 4 counties
Rural North Carolina - Rural Internet Access Authority transforms rural regions
Olympic Peninsula - Connectivity enables reversal of 30 year economic down trend
Nova Scotia - Networks transform fishing villages into e-learning & e-business engines
Tasmania - Resource economy becomes global virtual marketplace
Southwest Virginia - 13 counties become a virtual networked economy
Coachella Valley - Nine communities transform desert into a smart economy asset
Rural Maryland - Networks transform 17 rural counties into growth engines
New Brunswick - Connecting 750,000 citizens to global economy
Sample States & Cooperating Providers VE Led GIS Broadband Infrastructure Initiatives : Sample States & Cooperating Providers VE Led GIS Broadband Infrastructure Initiatives Sample Communities Sample Providers
Maryland Verizon, Comcast, IOC’s
Pennsylvania Verizon, ATT, Comcast, Cox, etc.
Virginia Verizon, Sprint, IOC’s, Cable
North Carolina Bell South, Comcast, IOC’s, GTE
Washington State Century Tel, CLEC’s IOC’s, Cable
Delaware Verizon, CLEC’s, Cable, etc
Arkansas Alltel, IOC’s, Cable, CLEC
New York Verizon, IOC’s, Cable, CLEC’s
Review of GIS Resources : Review of GIS Resources Dr. Tonny Oyana Assistant Professor of Geography Graduate Program Director Southern Illinois University
Slide17 : Guiding Principles for GIS Data Provision,
Display, Use and Access Your thoughts…
What You Need To Do To Assure the Success of Connect SI : What You Need To Do To Assure the Success of Connect SI Lead/Participate in the Connectivity Provider COI and Connect SI
Invest in the 2006/2007 collaborative funding of Connect SI
Champion the sharing of network infrastructure info to connect region
Define benchmarks that will measure success of Connect SI
Provide access to resources to help map regions broadband assets
Define connectivity requirements to link regions resources
Help COI define viable business cases for priority initiative actions
Move the region to a climate of shared versus special interests
Support a sustainable framework for managing regional economy
Slide19 : Next Steps Your thoughts…
Back-up Resource Slides : Back-up Resource Slides
Why Network Providers Like the ViTAL Economy Approach “It Generates Measurable Connectivity Results” : Why Network Providers Like the ViTAL Economy Approach “It Generates Measurable Connectivity Results” Provider doubles business over 5 years in mature rural market
Rural provider feature take-rate becomes highest in any of their U.S. markets
Provider realizes added $35 mm in sales per year on $50mm investment
Provider moves from 40% below to 150% above sales plan-6mths
Regions leaders become connectivity sales force to grow enablers sales from 1.5% to 3% of regions GSP…ultimate goal is 6% of GSP
Regions providers lower infrastructure build plan from $7mm to $500,000
Network expansions gain regulatory support & approval for 3-year versus 16-year depreciation schedules…it changes regulatory and citizen perspectives
Users now view broadband connectivity as a strategic asset they can’t afford to be without versus a service they cannot afford…increased willingness to pay
Understand How Connectivity Grows Value of Networks & Integrated Marketplaces : The Utility/Usefulness of a Network Increases by the
Square of the Number of Users on the Network !
Metcalfe’s Law The Value of a Network Increases Geometrically by the Number of “Many-to-Many” Uses delivered over the Network !
ViTAL Economy Law Understand How Connectivity Grows Value of Networks & Integrated Marketplaces Users Uses Utility Value Integrated
Marketplace
Successful Response To Integrated Marketplace Requires ViTAL Economy’s 3 C’s for Economic Development : Successful Response To Integrated Marketplace Requires ViTAL Economy’s 3 C’s for Economic Development
Collaboration
Builds Sufficient Critical Mass to Compete Globally, while
Emerging Cluster Strategies Assure Regional Growth
+
Connectivity
Links Geographically Remote Resources to Increase Access, while
Creating Opportunity, Building Diversification, Enabling Collaboration
+
Changed Spending
Increases Productivity and Revenues
Opens New Markets, Expands Opportunity,
Establishes Measurable Benchmarks and Goals
How the ViTAL Economy Approach Works to Increase Connectivity % of GDP : How the ViTAL Economy Approach Works to Increase Connectivity % of GDP Existing customers recruit new customers into the ViTAL Economy initiative. . The Vi AMPLIFY Sales Funnel becomes a powerful tool for building GDP and your own revenue.
Slide25 : Move Up the Value Chain, Capture Greater Share of Value Chain Margins, Increase Economic Prosperity Economics 101 P=Producer & C=Customer
Business Cases are Built Using The Value Linkage Process : Business Cases are Built Using The Value Linkage Process
Example of A Community of Interest Within an Integrated Marketplace : Example of A Community of Interest Within an Integrated Marketplace Acute Care Hospitals
Nursing Homes
Assisted Living Centers
Life Care Communities
Homecare
Medicare and Medicaid
3rd party Payers
Managed Care Providers
Patients at Home & On the Go
Prisons, Jails, Homeland Security
Primary Care Givers Mental Health Providers
Community Health Clinics
CME for Providers and Clients
Employers
Schools
Laboratories, Pharmacies, Therapists
GP and Specialized Physicians
Tertiary Care Specialists
Primary Care Providers
State and Federal Regulators
Public Health Service Providers
Slide28 : Collaborative Investment Builds Regional Ownership of Strategy
Healthcare Providers Invest 2006/07 @ $100,000/Year = $200,000 over 2 years
Connectivity Providers Invest 2006/07 @ $100,000/year = $200,000 over 2 years
Reg’l Communities invest 2006/07 @ $100,000/Year = $200,000 over 2 years
Corporations/Foundations invest 2006/07 @ $100,000/Year = $200,000 over 2 years
State/Fedral Governments invest 2006/2007@ $100,000/Year = $200,000 over 2 years ViTAL Economy Recommended Funding Model
How Many Direct & Indirect ICN Connections by County Are In Southern Illinois ? : How Many Direct & Indirect ICN Connections by County Are In Southern Illinois ? County Direct Indirect Total
Alexander 18 3 21
Franklin 30 30 60
Gallatin 2 0 2
Hamilton 6 11 17
Hardin 5 3 8
Jackson 58 21 79
Jefferson 40 13 53
Johnson 24 6 30
Perry 26 4 30 County Direct Indirect Total
Pope 3 0 3
Randolph 18 17 35
Saline 25 6 31
Union 29 11 40
Washington 11 5 16
Wayne 14 3 17
White 23 1 24
Williamson 50 9 59
Direct = T-1, multiple T-1’s, DS-3 or Fiber Link via cable provider
Indirect = Example of a large DS-3 going to a Library and sub-clients connect behind it
96% of ICN Constituents are connected at a T-1 speed or greater
Why Network Providers Invest in Connect SI? : Why Network Providers Invest in Connect SI? It expands base of customers willing to pay for connectivity services
It transforms customer perceptions of the cost of connectivity from too expensive or an entitlement, to a valuable strategic investment that is to be afforded
Leaders of all major institutions are at the table as well as the key leaders of 20 counties with 425,000 citizens and 195,000 workers
Strong federal, state and local level political and funding support
Provides an opportunity for network providers to be seen as strategic partners enabling economic growth rather than a mere vendor of service
Opportunity to use a highly visible collaborative initiative that creates a more collaborative climate for consideration of changes in regulations that grow the economy
Brings to the forefront the fundamental strategic value of your services for growing a rural 21st century economy
Next Steps : Next Steps