2. Agenda
2
Telecommunication Industry
BSNL
Candidate Projects by Lenses
IT Audit: BSNL
Candidate Projects Consolidation
Project Justification and Funding
ITS Documentation Guidelines
3. IT Strategy Framework
3
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6
Background
work
IT Audit
(Business Candidate Candidate Project
Strategy, ITS
Project Project Justification
CSF, Survival Documentation
Drivers, Identification Consolidation and Funding
Needs
Trends,
Business
Structure)
5. Importance of Telecom Industry
5
Strengthening
Economic Growth
Investments
Job Creation Gender Equality
Social Development M-commerce
Facilitating R&D
Rural Development
Impetus to initiatives:
E - Governance MNREGA, Aadhaar
7. Current Indian Telecom Landscape
7
Urban & Rural Subscriber base
Telecom Services – India
August 2010 Statistics
Population: 1184.59 million Teledensity: (BSNL) : 59.63
Urban population: 355.38 million - Mobile Teledensity : 56
Rural population: 829.21 million - Fixed Teledensity: 3
Total Subscribers: 706 million - Urban Teledensity: 133
Wireless subscribers: 670 million - Rural Teledensity: 27
Broadband connections: 10 million
11. Other Telecom Services
11
Radio Paging
In 1995, radio paging services
emerged as a promising segment in
India. However, this segment could
not compete with cellular services
in general and SMS technology in
GMPCS*
Public Mobile Radio Trunked particular, and is currently
Services shrinking. At present, only four GMPCS services were launched
PMRTS have not grown to their
expected potential in India. The high radio paging service providers are in India in 1999. These services
licence fee leaves a very thin margin for present in the Indian market. allow a subscriber to
services providers; thereby, inhibiting communicate from any point on
its growth. About 31,000 subscribers earth through a handheld
are currently availing this service in terminal. Moreover, the telephone
India from 12 different operators. Very Small Aperture Terminals number remains unchanged,
(VSAT) irrespective of the subscriber’s
location.
The market for VSAT services increased
by 5.73 percent during the quarter
ending in December 2006, and the
segment had a total subscriber base of
55,070. HCL Comnet is the largest of the
* Global Mobile Personal
eight players functioning in the market. Communication by Satellite
13. Other Growth Drivers
13
Mobile Applications
Evolution of new technologies
Increase in Customer Demand
Social Media
Infrastructure capabilities:
Flexibility
Scalability
Re-usability
Lean & Green
Emergence of new players
Liberalization of the global telecommunications markets
14. Industry Risks
14
Top 10 business risks
for telecoms operators
1. Losing ownership of client
2. Failure to maximize customer
value
3. Rising regulatory pressures
4. Ineffective infrastructure
Investment
5. Inability to contain costs
6. Lack of talent and innovation
7. Inability to manage investor
expectations
8. Inappropriate systems and
processes
9. Poorly managed M&A and
partnerships
10. Privacy, security and piracy
risks
15. KPIs for Telecom
15
Call Centre Systems
Performance Analysis Financial Analysis
Wait Times Avg revenue per user
Availability
Call volume Grade of Service Prepaid ARPU
# of complaints received Bit error ratio ARPU from contracts
Bit rate Rev. per voice min
Avg. speed of answer
Downtime % of non-voice revenue
Revenue per call
Call completion Ratio Avg Revenue Realization
Avg. quality of calls Minutes of Usage
Cost of support systems
# of calls transferred Cost of operational Avg rev. per employee
Avg call length systems Avg. rev. per subscriber
Avg call length Periodical rev. analysis
# of one call resolutions
Analysis of ASR route Analysis of company
Abandon rates
Network traffic , overheads
Customer satisfaction P&L Analysis
congestion
Agent Efficiency Idle time on network Recovery Analysis
Dropped calls
16. Major Indian Telecom Players
16
Basic Services Operators MOBILE SERVICES
BSNL GSM Services Operators
MTNL Airtel
Vodafone
Reliance
Idea
TTSL
Reliance
Internet Services Operators BSNL
BSNL CDMA Services Operators
MTNL Reliance
Reliance TTSL
BSNL
TTSL
Airtel
17. Major Global Telecom Players
17
Revenues of Major Telecom Operators in the World (US$Bn)
19. Trends in Global Market Contd..
19
Shift In Technologies
Fixed line operators – Move towards FTTH
Mobile Operators – Move towards 3G, 3.5G and 4G
Focus on content – IPTV
The Shift to Emerging Markets
Fixed Mobile Substitution
Entry of Online Players
20. Trends in Global Market Contd..
20
Shift to Emerging
Markets
Fixed Mobile
Substitution
Online Players Initiatives in the Communication Services Space
21. Major Innovation in Telecom Sector
21
Telcos and People Devices and Apps
• Tailored Tariffs • Location Based Services
• Co-Creation • Mobiles as shopping and
• Democratization of selling devices
smartphones • Tablet PCS
Telcos and Business
• Network Quality and Congestion Telcos and Social Web
• Targeting B2B segment • Integration in Business Process
• Partnership
22. Issues facing Indian Telecom Industry
22
Spectrum re-farming & effective
management of spectrum Effective utilization of USOF
to increase rural penetration
Establishing effective licensing Increasing broadband
framework involving service penetration and rural
providers connectivity
“Critical” Infrastructure Status Security concerns
along with uniform policy and
single window clearance Limited availability of talent
Fixed mobile convergence
Energy requirements
(FMC)
High operating expenditure
23. IT related issues to Telecom Sector
23
Integration of globally distributed application systems
E-Business platforms that can process high volumes of transactions
Consolidation of IT infrastructure into one location
Dealing with data security and confidential information
Need for effective reporting and trend analysis
Flexibility of adapting technologies to business processes
Reduction of IT maintenance overheads
Keeping up with changes to regulatory guidelines
Keeping costs low while providing effective network services
Channel and infrastructure utilization
Content Management
Developing innovative applications for M-Commerce to attract customers
Need for effective customer service tools to prevent churn out
24. Innovative Strategies : Telecom
24
• Customer relationship
Outsourcing the unexpected: Bharti Airtel Business Model Innovation
• Revenue streams
Standing on the shoulders of the advertisers: Blyk’s Business Model Innovation
• Customer segments
Cultivating emerging markets: Tencent’s Business Model Innovation
• Core capabilities
Leveraging the knowledge of the crowd: Iliad’s Open Source Freebox Business Model
Innovation
• Partner network
Creating a community of ‘Foneros’: Fon’s Business Model Innovation
26. BSNL
26
Fully Government Owned Indian Telecom company
BSNL is the largest fixed land line service provider in India
• 26.45 million fixed line subscribers (about 74% market share)
• 102.45 million total number of connections
• 76.10 million wireless connections
BSNL is leading Internet and Managed network Service
provider
• Telecom Infrastructure alone is worth more than US $30,000 million
• BSNL was the first 3G service provider in India August 2010
• BSNL has more than 500,000 KM OFC infrastructure
• Total about 38000 fixed line exchange
27. BSNL
27
Vision:
To become the largest telecom Service Provider in Asia.
Mission:
• To provide world class State-of-art technology telecom
services on demand at competitive prices.
• To Provide world class telecom infrastructure in its area of
operation and to contribute to the growth of the country's
economy
Decision Making
Chairman : Mr. Gopal Das
CEO : Arjun Bhagwat
28. Services Offered : BSNL
28
Wireless Services
Tarang-WLL-M
Cell One and Excel Leased Circuits
MLLN, MPLS-VPN/IP-VPN Services
Internet Services
Internet Under Dialup Access( Sanchar net)
ISDN Dialup Access
Internet Leased Line Access
Net One, Internet Dhabas Data One
Rural Telecom Services
Basic Telephone Services Village Public Telephone(VPT)
B-Fone, One India Plan
Rural Community Phones
Integrated Services Digital Network (ISDN)
Replacement of MARR Village Panchayat
Centrex , Intelligent Network Services (IN Services) Phones
Public Telephone (PT) Rural Household DELs
30. Network Organization
30
In India, whole region is divided into 24 circles (almost equal to each state)
and 4 metro districts (Delhi, Mumbai, Chennai and Kolkata)
BSNL Operates in all 24 circles and two metro districts
PSTN:: Separate User Profile and Services
PLMN: : Separate User Profile and Services
DATA: : Separate User Profile and Services
31. Financial Performance
31
In Rs Crores
MARGINS
• Voice Services (L)
• Internet Services (L)
Parameters 2006-07 2007-08 2008-09 2009-10
• Banking Services (M)
Income 39,715 38,053 35,812 32,045 • Wi-Fi (M)
• Games (H)
Expenditure 31,466 33,636 34,354 34,078
• Productivity Tools (H)
• Shopping Platforms (H)
Net Profit 7,806 3,009 575 (-)1,823
• HD TV (H)
• Mobile Phone Tie-ups (H)
• Caller Tunes (H)
• SMS voting (H)
L- Low, M- Medium, H- High
32. Business Positioning
32
BSNL provides almost every telecom service in India.
Goal: To become the largest Telecom Company in South
East Asia with most modern state-of-art technology
offering world class service to its customers.
BSNL is planning to increase its customer base to 108
million customers by 2011.
BSNL is a pioneer of rural telephony in India. BSNL has
recently bagged 80% of US$ 580 m (INR 2,500 crores)
Rural Telephony project of Government of India
On the 20th of March, 2009, BSNL advertised the launch of BlackBerry services across
its Telecom circles in India.
The corporation has also launched 3G services in select cities across the country.
Presently, BSNL and MTNL are the only players to provide 3G services, as the
Government of India has completed auction of 3G services for private players.
33. BSNL Strategy
33
Revitalise the business via:
Focusing on aggressive growth in Mobility (2G/3G), Broadband and Enterprise segment(i.e.,
corporate customers)
Reducing churn in the landline (including PCO) business and consolidating our positioning the
wholesale business (i.e., NLD)
Venturing into new areas to further drive growth such as infrastructure sharing, DTH,
International expansion among others
Build operational excellence in the following critical areas :
Marketing, sales and distribution
Product innovation and pricing
Customer service
Revenue assurance , Cost efficiency
Create a high performance organization to achieve the above :
Redesign the organisation structure, roles & responsibilities
Strengthen our HR policies and practices
Put in place a strong performance management system and culture
34. SWOT Analysis
34
Strengths Weaknesses
Experience Poor marketing strategies
Competitive pricing Low IT penetration within the organization
Pan-India reach Bureaucratic organizational setup
Total telecom service provider Limited Value added services
Huge resource base High setup time , Slow service
Huge optical fiber network Lack of strategic alliances
Huge customer base Use of obsolete technologies
Great broadband speed at lowest cost Political inference
Poor knowledge management
Opportunities Threats
Scope of improvement in marketing skills Market saturation in the conventional
Tremendous market potential telecom business
Huge business potential in e-gov initiatives Political and economic instability
Untouched international market Competition from private players
Huge potential in DTH services Decreasing profits due to competitive pricing
Huge scope for penetration with low cost
35. Critical Success Factors
35
CSF
Brand Awareness & Equity
Packaged Offerings & Services
Data Speeds / Bandwidth
Network Quality & Congestion
Retail Presence
Economies of scale
Financial Strength
Customer Service
Alignment with emerging trends
like Convergence
Partnership & Alliances
36. KRAs / KPIs
36
KRA/KPI
• Call Center
• Customer Satisfaction
• Systems and Networks
• Network Quality
• Compliance
• Coverage
• Revenue
37. BSNL – A view from our lens
37
Engagement: Operation:
• Foster cooperation across Engagement • Minimize complexity of input,
functions and departments Lens production and output
• Make employees aware of their • Increase first-time-right results
impact on operational excellence • Optimize resources for core processes
• Adjust service levels to overdeliver at
selected touchpoints
Strategic Operational
Lens Lens
Strategy:
• Fully leverage operations
to build competitive advantage Performance :
• Identify and manage strategic • Organize governance to emphasize
trade-offs accountability
Performance • Streamline management structure to
Lens expedite decision making
• Consolidate redundant organization
structures and locations
40. 1 Global Trends
40
Forces / Trends Candidate Project
Product Services Web based portals for value added services / bundled offerings
Interdependence Collaboration Infrastructure sharing and outsourcing
Business Consumers Web Based Customization software with high security
Mass Customization BI Analytics project – Recommendation engine/Trend Analysis
Globalization Integration Project / Enterprise Software
Outsourcing Project Mgmt. Software and Vendor Management Software.
Environmental Aspects Green IT Virtualization software, Data Server Consolidation ,
Energy conservation projects in office premises, mobile apps
Paperless office – Online billing
Governmental Aspect Regulation Audit Software,
Financial Software packages
Crowd Sourcing (Open source) Platform based initiative
Flexibility M - Commerce Implementing GMLC (Gateway Mobile Location Center)
Mobile payment methods software
Secured mobile banking services
Technology Implementing Cloud computing for Data Centers
VoIP based services
Deployment of LTE and WiMax
41. 2 Business Model
41
Precision – Mass Customization Innovation (Novelty)
• Providing a unified Internet web • Novelty entails world class mobile and
platform for selection of services broadband services
• Providing information about different • BSNL has certain novel aspects but overall lacks
services on Social Media innovative product/service offerings
• Push SMS for most preferred basket of •Novel initiatives:
services via SMS •Telecommunications services via satellite
•Use of CRM tools – Customer Service
BSNL
Quality
Cost – Mass Production • Network availability and quality are critical
•State of the art network for the telecom sector
•Common infrastructure to reduce cost • Reduction of network congestion and value
•Automated system for billing and added services help provide quality service with
customized offer for customer customer satisfaction
•Integration of various services offered • BSNL is focusing on enhancing providing
• BSNL focuses on low costs and this has quality services through bundled offerings
been its strategy in the telecom business space
42. 2 Candidate Projects
42
Precision – Mass Customization
Building recommendation engine based on Customer preference
Effective BI to understand customer demands
Online interface for custom bundling of offers
Innovation (Novelty)
More application based services over internet
Tapping in Convergence to provide integrated and consolidated services
Cost – Mass Production
Shared Infrastructure
Outsourcing
Quality
CRM
Data Server Consolidation and Virtualization
Infrastructure upgradation
Effective Online experience
Quality Network
43. 3 Business Transformation
43
Demand for bundled offerings, multiple products and services
Social Media leverage
Integrating the facebook, twitter, blogs, online banners etc
Crowd Sourcing
Evolution of new technologies
One-to-many calls, broadcast voice mail, and voice-to-text has changed the
industry dynamics
Fibre-To-The-Home
Implementing EDGE and GPRS technology
Green IT initiatives
M – Commerce – Mobile banking, Mobile entertainment
Trends – Introduction of WIFI and the security systems, Convergence of Systems
44. 3 Business Model Transformation
44
Precision Novelty
3 4
BSNL
Business
Cost Transformation Quality
1 2
With increasing competition and customer demands it is important for BSNL to balance Quality,
Customization and Innovation at the same time. The ideal transformation would be the change of
focus from Cost to Quality and eventually leading to Innovation with Customized offerings
45. 3 Candidate Projects
45
M-Commerce -
- Multimedia features
- Open Source leverage
Social Media Engagements for Customer Interaction
VoIP based services
Green IT Data Centers
46. 4 Porter’s Analysis
46
Barriers to Entry ( Low) Threat of Substitutes ( Low)
• Governmental Regulations • No clear substitute for
• Large Capital Requirement Telecom
• Marketing Costs • Internet based technologies
• Positioning Challenges Rivalry (High) like VoIP
• Existing Competition • Many major players
• Limited Bandwidth • Players with stronghold
• Demand for Value Added Services on certain segments
• Increased FDI • Favourable factors like
• Huge subscriber base and High FDI , Deregulation
• Untapped rural segment • Focus on VAS, quality
and service
Bargaining Power of Supplier • Outsourcing & focus on Bargaining Power of Buyer
( High) core competence (Medium)
• Geographical foothold • Cost effective Services
• Few number of major suppliers • Many alternatives available
• High Dependence • Strength of provider network
• Provision of state-of-the-art technology • Availability of bundled
• Criticality of excellent infrastructure. offerings and custom needs
• Importance of Network Strength & quality • Brand Identity
47. 4 Candidate Projects
47
Collaboration with Suppliers through Selling Chain Management
Product Enhancements: VAS , Mobile gaming
Latest Technologies: Embracing technologies like 3G & Wi-Max and rolling out different
commercial plans. E-Commerce features, M-Commerce enhancements
Enhancing Barriers to Entry: Use of Social Media projects for strong viral marketing and
brand positioning to surpass competition
Cost focus: Cloud Platform leverage to reduce costs
To alleviate network issues: ‘Network Feedback SMS service’
Managing ICT Infrastructure: Outsourcing to other partners who manage the ICT
infrastructure
48. 5 User Survey
48
User Feedback is important :
To help understand user requirements
To help enhance existing products
To help develop new products or services offerings
To help understand the current trends
Gaining new ideas from the customers
To create brand affinity – To make customers feel heard and
involved and to help promotion through word-of-mouth
publicity
Tips for Conducting Interviews
Use of interview guide. General to Specifics
Listening and guiding, not leading.
Strategies: intervention of higher-ups, interview in pairs
Paraphrasing , Use of indirect approach.
Sensitivity and not asking for too much
Columbo trick
49. 5 Candidate Projects
49
Social Media projects for capturing and
enhancing value through channels like
Facebook
Twitter
YouTube
Blogs
Web 2.0 and enhance existing E-business
Interactive portal . Taking the portal
from being just informative and
transactional to being interactive and
transformational
System for integrating unstructured data
from various channels and sources like
voice, comments, references , mobile
services
Use of BI Analytics , Web Analytics to
understand trends and consumer demand
patterns
50. 6 Analysis of Competition
50
Indian Telecom Players
Basic Services Operators MOBILE SERVICES
BSNL GSM Services Operators
MTNL Airtel
Reliance Vodafone
Idea
TTSL
Reliance
Internet Services Operators BSNL
BSNL CDMA Services Operators
MTNL Reliance
Reliance
TTSL
TTSL BSNL
Airtel
51. 6 Market Share
51
Sources to gather information about competitors:
• Cross hiring • Customers of Competitors
• Industry Journals/ Trade Magazines • Forums/Employee blogs
• Patent Filing • Historical trends
• Consulting community • Trade exhibitions
• IT Trends • Industry Espionage
52. 6 Analysis of Competition
52
• Bharti Airtel has the largest market share in
the GSM segment. As of June 2010, Bharti
accounted for 25.9 per cent of the GSM market,
followed by Vodafone, with a 20.7 per cent
market share.
• Private players accounted for approximately
86.4 per cent, while public sector operators
(BSNL and MTNL) accounted for the
remaining share
(13.6 per cent)
•Reliance Communications dominates the
Indian CDMA mobile services segment with a
market share of 52.4 per cent as of June 2010
•BSNL is the biggest player in this market with 9.7 million subscribers, followed by MTNL, Bharti
Airtel, Reliance and Hathway Cable & Datacom
53. 6 Candidate Projects
53
Effective Value Added Services to match and overpower competitors:
Content Management Tool
E-Commerce portal
Voice Based Applications
CRM
Tie ups with other providers based out of the country so that there is better
availability of roaming services : Vendor Management software
Additional services in free-zones such as promotional offers in relation to latest
technology launches : Social Media Marketing, Online Banners
Cost-sharing for the network infrastructure in sparsely populated areas :
Infrastructure projects , Infrastructure Management systems
54. 7 TechScan
54
Convergence and Integration between Mobile service providers and Music/Video
industry
Guided Positioning System
E Commerce
Mobile Banking
Online SMS providers
Social Media
Cloud Computing
Use of Internet for Phone calls
55. 7 Factors Governing Technology Readiness
55
External Readiness Internal Readiness
Cost curve Ability and effectiveness in handling
technology transfer
Stability of tech. and its suppliers Skill level
Tech. standards Risk profile (risk appetite) or ability to
handle/tolerate risk
Perceived business value Implication to existing established
business proc.
Level/rate of adoption in industry general Culture of the company
Openness Open Standards
59. 7 Candidate Projects
59
E-Commerce projects for enhancement of offerings with Web 2.0 features
Social Media Marketing Projects for increasing subscriber base
Leveraging Cloud Platform
M-Commerce and M-Banking Applications for secure transactions
Implementing GPS based navigation devices and localization features
60. 8
7 Idea Scan
60
Disruptive Technologies
Social Media
CRM, Enterprise systems
E-Business, E-Commerce
IPTV
Integration : Integration of the operations
Convergence : Horizontal and Vertical
Open Source for reduction in costs
Cloud Platform and Data Centers for effective infrastructure management
Wireless Mesh Networks for network quality and availability
61. 8 Candidate Projects
61
Cloud based Data Centers
Implementation of Wireless Mesh Networks
Agile System Operations for cost reduction
63. 9 Impact of IT on Telecom Value Chain
63
Elimination threat to certain Telecom services and Value Chain partners
• Introduction of Voice over IP impacts the fixed and mobile telephone service
providers
Enhanced sharing and collaboration between different stakeholders like infrastructure
vendors partners, competitors
• BSNL partnering with Cisco to use Virtual Service Provider model which will help to
offer bundled packaged services
Opportunities to increase and improve the customer base, market share, profit margins
• Large number of services and products have been introduced creating more
opportunities for the Telecom Service Providers
Increase in Operation Efficiencies of the Telecom Ecosystem and various Service Providers
• Introduction of enhanced network systems, network sharing models has helped
Telco’s to reduce cost
64. 9 Candidate Projects
64
M-Commerce :
Tie up with online application providers to provide combo services and to enhance
mobile commerce
Increase Mobile commerce services like mobile payments, reservations, ticketing
Form alliances and partnerships with credit card operators, entertainment and
media companies and increase services.
Selling Chain Management, Vendor management Software: This will help
maintain the order cycle details
CRM : Customers are the focus of any service offering.CRM implementation and
enhancement will help deliver effective customer service
Business Analytics: These systems will help understand customer demand and help
define strategy accordingly
Social Media Marketing will help promote brand and increase sales through viral
marketing
65. 10 Critical Success Factors
65
CSF for Telecoms ( Long Term )
• Market segmentation and effective targeting
• Fast introduction and application of services
• Economies of Scale
• Proper vendor selection, Retail Presence
• Financial strength
• Plausible state legislation and regulations
CSF for Telecoms ( Short Term)
• Bundled service offerings / Value Added services
• Network availability and congestion
• Customer Service and Experience
• Brand Awareness
• Alignment of commercial terms with business goals
• Business/Operations Support Systems (B/OSS)
• Specific best practice implementation methodology
• Effective governance, SLAs
66. 10 Candidate Projects
66
Operations Support Systems/Business Support Systems application
Implementation
Customer Relationship Management
SCM – Selling Chain Management
Vendor Management Software
Business Analytics for Market STP ( segmentation, targeting and positioning)
Enterprise Apps – Finance Module
Web Portal for better offerings
Security and Operational Controls Systems
68. IT Audit
68
BSNL conducts close monitoring of network operation through information technology-
enabled systems, which include introduction of CDR (call data records)-based billing,
commercial and fault repair service and work order management system.
BSNL has launched a Rs 1.93 crore campaign "BSNL 3G branded Rajdhani express" in
association with the Indian Railways for the promotion of its 3G products and value added
services.
Bharat Sanchar Nigam Limited (BSNL) has announced the launch of its new 3G Value Added
Services for its customers across the nation. With this, BSNL becomes the first service
provider in India to have launched specialised VAS services for 3G users.
BSNL launched the much awaited ‘Dial-a-Video’ service in collaboration with Percept
Knorigin.
It also launched the FTTH (fiber to the home) service in Bihar. The customers who are in great
demand of good internet speed such as in the application of IPTV, HD TV, VoD, 3D TV and
many more will be in more benefit.
HCL - BSNL are planning to work together on National Broadband Penetration Program - A
nation wide initiative to bridge the rural-urban digital divide by accelerating ICT penetration in
rural and remote areas
69. BSNL Current Projects
69
High Critical Projects Low Critical Projects
Expansion of
UTStarcom’s MSANs Broadband, Mobile
Payment
BSNL Customer
Support System Expansion of Digital
Media and ICT
VOIP enabled service Network SMS
project
Wi-max enabling
project
3G network
Expansion
National Broadband
Penetration Program
70. Functional Mapping
70
STRATEGIC IT INITIATIVES/APPLICATIONS
- Web Portal
- M-Commerce
- Value added services
TACTICAL IT INITIATIVES/APPLICATIONS
- Improvements in Mobile / Online commerce
- Social Media
- CRM
OPERATIONAL IT INITIATIVES/APPLICATIONS
- ERP
- Content Management Tools
71. Age of application vs. Functional Quality
71
Old
Infrastructure
BI
IVR
Payments
Age Of system
Application CRM ERP
Web Portal
Social
Media
M-Commerce
Young
Low Functional Quality High
72. Age of application vs. Technical Quality
72
Old
Infrastructure
BI
IVR
Payments
Age Of system
Application CRM
ERP
Web Portal
Social
Media
M-Commerce
Young
Low Technical Quality High
73. Degree of automation vs. Potential of automation
73
Infrastructure
Potential of
automation
IVR E-Commerce ERP
CRM
M-Commerce
Business Analytics
Social Media
Degree of automation
74. IT Audit – Customer Service Solution
74
• A 24X7 Man Helpdesk will be available for attending customer’s calls, escalations &
to support them around the clock. Customer will get the toll free no on which he can
Current log a request in case if he wants to make any changes in his configuration.
System
• Which services are affected by network events, severity of the service impacts,
Survival which customers are affected, and response prioritization
Needs
• Integrate the solution with next generation services like Wi-Max
Planned
System
75. IT Audit – Network Services
75
• UTStarcom s B1000 multi-service access node (MSAN) to fixed access customers
• UTStarcom's ADSL 2+-based broadband solutions will now enable BSNL to offer new
broadband-based, triple-play services such as video-on-demand (VoD), video multicast, VPN
Current services, and high-speed Internet services across the country while providing the operator with
System network flexibility, scalability for innovation and a rapid return on investment.
• High speed network services through IT to provide high quality service to the
Survival customers
Needs
• Migrate existing IT infrastructure to the above mentioned technology not only in
fixed access but in mobile services too
Planned
System
76. IT Audit McFarlan Model
76
high
Turnaround Strategic
Committed to use
Impact on Strategy
Exploit emerging
of IT to enable
strategic
both core
opportunities In BSNL, IT is
operations and
from new IT
core strategy used mainly for
Operational
purpose and not
for Strategic
Support Factory Advantage
Reduce costs and
Local
improve
improvements and
performance of
low cost savings
org
low
low Impact on Operation high
77. Factory to Strategic movement
77
high
Turnaround Strategic
Committed to use
Exploit emerging
Impact on Strategy
of IT to enable
strategic
both core
opportunities
operations and
from new IT
core strategy
BSNL is trying to
Support Factory move into
Local Reduce costs and strategic quadrant
improvements improve
and low cost performance of
by gaining
savings org competitive
advantage
low through IT
low Impact on Operation high
79. Project Selection Metrics
79
Projects of similar nature have been clubbed together and redundant options
have been eliminated to come with a consolidated list of projects.
The projects selected have been given ratings between 1-10 to further filter
these depending on their criticality to the enterprise, their value add, their risk
factors and so on
Rating of 1 means that the candidate project has the worst value for the given
attribute
Rating of 10 means that the candidate project has the best value for the given
attribute
80. Project Selection Metrics - 1
80
Drivers/ Candidate Project ROI Risk Time CSF Cost Of Survival Invisible Tota
Frame Learning Criticality s l
Portals for VAS with Web 2.0 9 6 8 9 8 8 6 54
features (E – Commerce)
Cloud Computing for Data centers 8 6 8 9 7 7 5 50
Vendor Management software 6 6 6 6 5 5 4 38
Green IT initiatives 5 7 7 5 6 4 5 39
M – Commerce Applications 9 6 8 9 7 9 6 54
Business Analytics system 4 7 5 6 4 5 5 36
CrowdSourcing (Open Source) 3 6 4 5 4 4 4 30
84. Screened List Of Candidate Projects
84
Web Based Portal
Mobile Banking Applications
M – Commerce Applications
Social Media Projects
CRM
Network feedback SMS service
Cloud Computing Platform
Content Management Tool
ERP Implementation
86. Project Justification Metrics
86
CSF/ Department Marketing Sales Customer Operations Finance
Service
Cloud Computing Low Low Low Med Service Improvement
Platform Cost Reduction
Web Based Portals High High Med Med Revenue Generation
ERP Implementation Med Med Med High Service Improvement
Integration of systems
Mobile Banking Med High Low Med Revenue Generation
Applications
M – Commerce Apps Med High Med High Revenue Generation
CRM Med High High Med Service Improvement
Social Media Apps High Med High Low Customer Feedback
Network feedback SMS Med Med Med Med Service Quality
service
Content Management Med Med Low High Service Quality
Tool Product Novelty
88. Approach & Methodology
88
Approach
BSNL is one of the oldest and major players in the Indian Telecom Sector
Inspite of the broad reach, Governmental support and resources at hand it has not been able to carve a
niche and is degrading on its performance.
With increasing competition and demand from consumers, it has become crucial for BSNL to adapt its
business model and to have a combined focus on quality and innovation with personalized offerings
The objective of this assignment is to evaluate the IT landscape of the company and to harness
technology to boost the performance of the company
Approach focuses on identifying the ‘As Is’ state and devising the ‘To Be’ State to help define the IT
strategy for BSNL through use of a 6 phased IT Strategy Model
Methodology
An exhaustive analysis of the industry and company was done to understand the current state and the
strategic objectives to be reached
BSNL was revisited through the 10 lenses to identify candidate projects
Projects were evaluated on various criteria like the feasibility, need, impact, required resources
Prioritization techniques were used to come up with the final projects to be implemented in next 2
years
89. Winning Projects
89
Winning projects were identified based on the prioritization technique using various
parameters like Risk, CSF, ROI, Cost of learning, Time frame, etc
Candidate Profile Projects filtered were :
Web Based Portal
Mobile Banking Applications
M – Commerce Applications
Social Media Projects
CRM
Network feedback SMS service
Cloud Computing Platform
Content Management Tool
ERP Implementation
After identification, each project was revisited to understand its implications on
various departments using certain metrics
After thorough evaluation of all aspects and the company needs, projects were
selected for next 2 years of execution
90. TimeLine , Cost and Execution
90
Candidate projects will be executed in 2 years timeframe
The current estimated costs associated with the Candidate profile projects is
approximately $30 million
The execution will happen with the in-house talent and outsourcing to the
preferred vendors
Vendor selection process would follow the standard routines as been followed
by the company
Executing vendor will need to present Pilot which will then determine the
grant of contract to the vendor
Projects will be implemented using Waterfall model under the purview of
BSNL IT department
91. Preface
91
Who Vote:
Business Leaders and IT Team
Candidate projects:
Web Based Portal , Mobile Banking Applications , M – Commerce Applications, Social
Media Projects, CRM, Network feedback SMS service, Cloud Computing Platform,
Content Management Tool, ERP Implementation
Goals:
To boost performance of BSNL through innovative , personalized and quality
offerings
Business Capability:
These projects will enable BSNL to better utilize the available infrastructure, incur cost
savings through outsourcing, provide customer centric service offerings and value
added services thus enhancing the BSNL brand and market share in the due course
Ownership
The entire execution is owned by the BSNL IT leadership team in collaboration with
the Business units and outsourced vendors
93. 93
References :
• Consultant Report:
Mckinsey Quarterly, Ernst & Young, BCG, Gartner, Accenture
• Research Library :
CIA world factbook, Data Monitor 360
• E Magazines / newspapers:
Financial Times, Economic Times, Wall Street journal, Business World,
Time magazine, Forbes, Harvard Business review
• Company Websites of Telecom players
• Internet Resources: Case Studies, Government sites, blogs, websites
• Subject Material
• Deliverable D1 gives exhaustive list of most of the sources
