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  • 1. BSNLIT Strategic Planning 1 Group 2 • Alyosha Agrawala • Kunal Gupta • Prajakta Thakur • Sudeep Singh Mahal © S P Jain Center of Management
  • 2. Agenda 2Telecommunication IndustryBSNLCandidate Projects by LensesIT Audit: BSNLCandidate Projects ConsolidationProject Justification and FundingITS Documentation Guidelines
  • 3. IT Strategy Framework 3 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6Background work IT Audit (Business Candidate Candidate Project Strategy, ITS Project Project Justification CSF, Survival Documentation Drivers, Identification Consolidation and Funding Needs Trends, Business Structure)
  • 4. Phase 1:Background Work 4
  • 5. Importance of Telecom Industry 5 StrengtheningEconomic Growth Investments Job Creation Gender EqualitySocial Development M-commerce Facilitating R&DRural Development Impetus to initiatives: E - Governance MNREGA, Aadhaar
  • 6. Evolution of Indian Telecom Sector 6
  • 7. Current Indian Telecom Landscape 7 Urban & Rural Subscriber base Telecom Services – India August 2010 StatisticsPopulation: 1184.59 million Teledensity: (BSNL) : 59.63 Urban population: 355.38 million - Mobile Teledensity : 56 Rural population: 829.21 million - Fixed Teledensity: 3Total Subscribers: 706 million - Urban Teledensity: 133Wireless subscribers: 670 million - Rural Teledensity: 27Broadband connections: 10 million
  • 8. Wireless Segment 8 CAGR (Wireless Subscribers) – 77.5% FY10 – 584.3 million GSM subscribers – 84.1%
  • 9. Wireline Segment 9 CAGR (Wireline Subscribers) : 3.3%  Urban Market: 73.1% FY10 : 37 million  PCOs: 3.5 million Teledensity: 3.1%  VPTs: 0.6 million
  • 10. Internet & Broadband 10
  • 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 currentlyServices shrinking. At present, only four GMPCS services were launchedPMRTS have not grown to theirexpected potential in India. The high radio paging service providers are in India in 1999. These serviceslicence fee leaves a very thin margin for present in the Indian market. allow a subscriber toservices providers; thereby, inhibiting communicate from any point onits growth. About 31,000 subscribers earth through a handheldare currently availing this service in terminal. Moreover, the telephoneIndia 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
  • 12. Growth Drivers : Indian Telecom Market 12
  • 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 operators1. Losing ownership of client2. Failure to maximize customer value3. Rising regulatory pressures4. Ineffective infrastructure Investment5. Inability to contain costs6. Lack of talent and innovation7. Inability to manage investor expectations8. Inappropriate systems and processes9. Poorly managed M&A and partnerships10. Privacy, security and piracyrisks
  • 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 SERVICESBSNL GSM Services OperatorsMTNL Airtel VodafoneReliance IdeaTTSL Reliance Internet Services Operators BSNLBSNL CDMA Services OperatorsMTNL RelianceReliance TTSL BSNLTTSLAirtel
  • 17. Major Global Telecom Players 17Revenues of Major Telecom Operators in the World (US$Bn)
  • 18. Trends in Global Telecom Market 18 Convergence
  • 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 SubstitutionOnline 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 ModelInnovation• Partner network Creating a community of ‘Foneros’: Fon’s Business Model Innovation
  • 25. Bharat Sanchar Nigam Ltd. 25
  • 26. BSNL 26Fully Government Owned Indian Telecom companyBSNL 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 connectionsBSNL is leading Internet and Managed network Serviceprovider• 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 countrys economyDecision Making Chairman : Mr. Gopal Das CEO : Arjun Bhagwat
  • 28. Services Offered : BSNL 28Wireless Services Tarang-WLL-M Cell One and Excel Leased Circuits MLLN, MPLS-VPN/IP-VPN ServicesInternet Services Internet Under Dialup Access( Sanchar net) ISDN Dialup Access Internet Leased Line Access Net One, Internet Dhabas Data One Rural Telecom ServicesBasic 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
  • 29. Services Offered : BSNL 29
  • 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 33Revitalise 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 othersBuild operational excellence in the following critical areas : Marketing, sales and distribution Product innovation and pricing Customer service Revenue assurance , Cost efficiencyCreate 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 36KRA/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 LensStrategy:• Fully leverage operations to build competitive advantage Performance :• Identify and manage strategic • Organize governance to emphasizetrade-offs accountability Performance • Streamline management structure to Lens expedite decision making • Consolidate redundant organization structures and locations
  • 38. Way forward 38
  • 39. Phase 2:Candidate Project Identification ( 10 Lenses Approach) 39
  • 40. 1 Global Trends 40 Forces / Trends Candidate ProjectProduct  Services  Web based portals for value added services / bundled offeringsInterdependence  Collaboration  Infrastructure sharing and outsourcingBusiness  Consumers  Web Based Customization software with high securityMass Customization  BI Analytics project – Recommendation engine/Trend AnalysisGlobalization  Integration Project / Enterprise SoftwareOutsourcing  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 billingGovernmental Aspect  Regulation  Audit Software,  Financial Software packagesCrowd Sourcing (Open source)  Platform based initiativeFlexibility  M - Commerce  Implementing GMLC (Gateway Mobile Location Center)  Mobile payment methods software  Secured mobile banking servicesTechnology  Implementing Cloud computing for Data Centers  VoIP based services  Deployment of LTE and WiMax
  • 41. 2 Business Model 41Precision – Mass Customization Innovation (Novelty)• Providing a unified Internet web • Novelty entails world class mobile andplatform for selection of services broadband services• Providing information about different • BSNL has certain novel aspects but overall lacksservices 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 QualityCost – 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 withcustomized 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 offeringsbeen its strategy in the telecom business space
  • 42. 2 Candidate Projects 42Precision – Mass Customization Building recommendation engine based on Customer preference Effective BI to understand customer demands Online interface for custom bundling of offersInnovation (Novelty) More application based services over internet Tapping in Convergence to provide integrated and consolidated servicesCost – Mass Production Shared Infrastructure OutsourcingQuality 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 2With 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 offocus 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 46Barriers 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 serviceBargaining 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 48User 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 SERVICESBSNL GSM Services OperatorsMTNL AirtelReliance Vodafone IdeaTTSL Reliance Internet Services Operators BSNLBSNL CDMA Services OperatorsMTNL RelianceReliance TTSLTTSL BSNLAirtel
  • 51. 6 Market Share 51Sources 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 inthe GSM segment. As of June 2010, Bhartiaccounted for 25.9 per cent of the GSM market,followed by Vodafone, with a 20.7 per centmarket share.• Private players accounted for approximately86.4 per cent, while public sector operators(BSNL and MTNL) accounted for theremaining share(13.6 per cent)•Reliance Communications dominates theIndian CDMA mobile services segment with amarket 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, BhartiAirtel, 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 55External Readiness Internal ReadinessCost curve Ability and effectiveness in handling technology transferStability of tech. and its suppliers Skill levelTech. standards Risk profile (risk appetite) or ability to handle/tolerate riskPerceived business value Implication to existing established business proc.Level/rate of adoption in industry general Culture of the companyOpenness Open Standards
  • 56. 7 Technology Vs External Readiness 56
  • 57. 7 Technology Vs Internal Readiness 57
  • 58. 7 Internal Vs External Readiness 58
  • 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
  • 62. 9 Value Chain Analysis 62
  • 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 65CSF 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 regulationsCSF 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
  • 67. 67Phase 3:IT Audit
  • 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 69High 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 PaymentsAge Of systemApplication 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 PaymentsAge Of systemApplication CRM ERP Web Portal Social Media M-Commerce Young Low Technical Quality High
  • 73. Degree of automation vs. Potential of automation 73 InfrastructurePotential ofautomation 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 canCurrent 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-MaxPlannedSystem
  • 75. IT Audit – Network Services 75 • UTStarcom s B1000 multi-service access node (MSAN) to fixed access customers • UTStarcoms 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, VPNCurrent services, and high-speed Internet services across the country while providing the operator withSystem network flexibility, scalability for innovation and a rapid return on investment. • High speed network services through IT to provide high quality service to theSurvival customers Needs • Migrate existing IT infrastructure to the above mentioned technology not only in fixed access but in mobile services tooPlannedSystem
  • 76. IT Audit McFarlan Model 76high 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 orglow low Impact on Operation high
  • 77. Factory to Strategic movement 77high 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 advantagelow through IT low Impact on Operation high
  • 78. 78 Phase 4:Project Consolidation
  • 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 80Drivers/ Candidate Project ROI Risk Time CSF Cost Of Survival Invisible Tota Frame Learning Criticality s lPortals for VAS with Web 2.0 9 6 8 9 8 8 6 54features (E – Commerce)Cloud Computing for Data centers 8 6 8 9 7 7 5 50Vendor Management software 6 6 6 6 5 5 4 38Green IT initiatives 5 7 7 5 6 4 5 39M – Commerce Applications 9 6 8 9 7 9 6 54Business Analytics system 4 7 5 6 4 5 5 36CrowdSourcing (Open Source) 3 6 4 5 4 4 4 30
  • 81. Project Selection Metrics - 2 81Drivers/ Candidate Project ROI Risk Time CSF Cost Of Survival Invisibles Total Frame Learning IssueSocial Media Applications 9 7 9 7 8 7 8 55Network feedback SMS service 7 7 7 6 7 5 6 45Outsourcing Infrastructure 3 5 4 6 5 4 4 31MaintenanceProject Management 6 7 7 3 6 3 5 37Infrastructure Sharing projects 3 3 2 7 4 3 5 27GPS based navigation devices 6 5 6 4 4 4 5 34Wireless Mesh network project 3 5 5 4 4 3 4 28VOIP based services, Wi-Max , LTE 6 5 7 5 4 5 4 36deployment systems
  • 82. Project Selection Metrics - 3 82Drivers/ Candidate Project ROI Risk Time CSF Cost Of Survival Invisibles Total Frame Learning IssueMobile Banking Applications 9 7 7 6 7 5 6 47Content Management Tool 8 6 7 7 6 8 8 50Voice Based Applications 4 5 5 6 4 5 4 33Customer feedback system 6 6 7 3 3 6 5 36Marketing tools and Web Analytics 2 2 3 7 4 3 5 26CRM 9 7 7 5 5 7 6 46ERP Implementation 7 8 7 6 7 6 6 47Selling Chain Management 6 4 3 5 4 5 6 33
  • 83. 83 Phase 5:Project Justification & Funding
  • 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
  • 85. Project Justification Metrics 85CSF/ Department Marketing Sales Customer Operations Finance ServiceCost Reduction 7 5 4 8 7 3 6 3 6 3 5 5 8 4 8Customer Acquisition/ 7 7 8 8 6Retention 4 8 5 8 3 9 3 6 5 7Time to Market 6 7 7 7 5 4 8 5 9 3 8 3 5 4 6Customer Satisfaction 7 9 9 5 8 3 7 4 9 5 9 4 6 3 7Increase in Sales 9 6 6 6 9 3 9 4 8 3 6 3 5 5 7Quality of Service 7 8 7 5 7 2 7 4 9 5 9 4 6 3 6
  • 86. Project Justification Metrics 86CSF/ Department Marketing Sales Customer Operations Finance ServiceCloud Computing Low Low Low Med Service ImprovementPlatform Cost ReductionWeb Based Portals High High Med Med Revenue GenerationERP Implementation Med Med Med High Service Improvement Integration of systemsMobile Banking Med High Low Med Revenue GenerationApplicationsM – Commerce Apps Med High Med High Revenue GenerationCRM Med High High Med Service ImprovementSocial Media Apps High Med High Low Customer FeedbackNetwork feedback SMS Med Med Med Med Service QualityserviceContent Management Med Med Low High Service QualityTool Product Novelty
  • 87. 87 Phase 6:Documentation & Communication
  • 88. Approach & Methodology 88Approach 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 ModelMethodology 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
  • 92. Thank You ! 92
  • 93. 93References :• 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