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new role of consultencies in the feild of space sector.

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  1. 1. MIB 2012 Sireesh PALLIKONDA Rasha ITANI Karen PORTUGAL Vineet TYAGI Consultancy Management of5/1/2012 Space Capitalization
  2. 2. Why Space?Is it just a fascination or business?Yes its more of a business than fascinationWhat are all business that are dependent on the space satellites • Internet • Irrigation planning • Telecommunication • Town/ Urban Planning • Television and radio • Disaster management broad casting • Costal and forest • Transportation conservation (navigation) • Medicine • Metrology • Tele-reach(education) • Agriculture planning • Space exploration and • Space travel 5/1/2012
  3. 3. How does this business works5/1/2012
  4. 4. Why Privatization of Space5/1/2012
  5. 5. Scope and Depth of Privatization Scope Depth Only few countries have the As many as 1,185 satellites are capabilities of space launch to be built and launched by 1. US governments, companies and 2. Russia universities between 2009 and 3. France 2018. 4. UK 5. Japan Revenue estimated is $178 6. China billion 7. India 8. Israel 9. Iran 10. Ukraine• Launching a satellite is 12-15% costlier in Europe, and 25-30% more expensive in the US. Russia used to offer launch services at rates comparable with India—but not any more.• Consultancies helps satellite makers negotiate contracts with get regulatory clearances, besides transporting the communications device to the launch site. 5/1/2012
  7. 7. 1. A pro-space government 2. An established professional infrastructure 3. An established base of space, aerospace and high tech industries 4. Zero tax on space and satellite business 5. Access to orbital slots; and 6. Financial incentives and grant aid for businesses which create new jobs on the Island.5/1/2012
  8. 8. Operations• Operations are considered one of the main zones to focus on.• True common language of business, the decision consists of a complex set of functional components, technical and organizational.Business Intelligence Software• They are divided into main parts• Technical: tracking down the position and health of the satellite at a given point of time.• Supply Chain: 5 W’s : Where,when,how,what,who?• Opportunities & Revenue Returns.5/1/2012
  9. 9. We believe in a parallel approach: Operational Performance Improvements : design of results-oriented projects and programs aimed at effectively realizing gains in terms of customer satisfaction, quality, speed, cost and risk. Operational Performance Foundations : developing the building blocks needed to Operational Excellence focused organization, with the required leadership, ownership, roles & responsibilities, and suitable underlying instruments. Anticipated results5/1/2012
  10. 10. Proposed advantages in cost and volumesBefore privatization After privatizationThe cost each launch for telecom The cost becomes 500 euros for eachcompany Is 1000 euros. launch for telecom company.Telecom companies have to depend on Launch companies will the autonomy togovernment launch stations for their market themselves and increase theirsatellites to get launched. volumes of launch.In a single launch, they orbit one or two In a single launch they can orbit 6satellites and make a profit of 100 euros satellites and make a profit of 1500 euros.Markets were restricted and limited No restrictions This gives the competitive edge to the telecom-companies in reducing the price of their service and increase the volume of their customer base.5/1/2012
  11. 11. Organization, Systems and Process EUTELSAT is a holding Company, the leading European satellite operator and one of the top 3, in the world “Where the space, telecoms and audiovisual industries converge, Eutelsat Communications is at the heart of the new challenges facing the digital economy with its ability to make broadband facilities available for people to access information worldwide” Wide range of services, has become an essential source of high performance and flexibility for telecommunications operators and companies in more than 150 countries. Counts with a fled of 28 satellites, operation in 20 positions on the geostationary satellite orbit, covering Europe, the Middle East, Africa and a large part of Asia and the Americas. The Group is based in Paris and employs a workforce of 700 people representing 30 different nationalities.5/1/2012
  12. 12. Management Committee Michel de Rosen Michel Azibert Catherine Guillouard Jacques Dutronc Izy Béhar Jean François Bureau CEO Deputy CEO Chief Financial Officer Chief Development and Director of Human Director ofFrançois Bureau Jean Institutional & Committee Chairman Committee Deputy Chairman Innovation Officer Resources International Affairs Director of Institutional & International Affairs Manuel Calvo Francesco Cataldo Ignacio Gonzalez Nunez Yohann Leroy Raphaël Mussalian Director of Operations Management of Resources & Chief Risk Officer Director of Strategy Director of Sales of Capacity Director Engineering Vanessa OConnor Arduino Patacchini Ariane Rossi5/1/2012 Director of Corporate Director of Multimedia & Value- Director of Accounting, Controlling Communications Added Services & Corporate Finance
  13. 13. As Consultants: Important information in order to: • An adequate communication - Know who to talk • Integrated and engage – Right people, right time, right place • Understanding of supply chain – Improve the production process • Knowledge of cross cultural differences • Loop holes (Weaknesses)5/1/2012 BUILD SKILLS
  14. 14. HOW TO BUILD SKILLS Create a pilot team to train them “understanding the privatization process”5/1/2012
  15. 15. Supplier’s Issues Shuttle and launch facilities logistics and supply chain will interfere with existing supply chain of industry targeted for equipment and component integration. Satellite and equipment manufacturing suppliers location has to be strategic from trade point of view to keep additional costs under control. Suppliers will have to adapt to new standards of technological requirements in their equipment. People Religious organizations and their belief towards commercialization of space. People perception and space tourism. People’s belief and their faith in space technology , success rate so far at 92.7 % per launch Employee’s belief towards their organizations new vision in space.5/1/2012
  16. 16. EconomyDeveloping economies have keen interest in such projects , number of countrieslike Sri Lanka, Bangladesh and many small developing economies have vision tohave their own launch capabilities.Every dollar spent on Apollo Programme has brought back 15 USD , howeverabsence of chronological quantified data are not abundant.Space sector will create multifold growth on GDP of a economy as mostindustries targeted have to depend on space sector due to recent technologicaladvancements. 5/1/2012
  17. 17. Competitors What is nature of the added value created against the competitors? Who are the potential competitors? What strategies can be used to establish and maintain competitive advantage against existing competitors Will the offering be superior to alternatives as provided by competitors when they reach the market? WHO LAUNCHES FIRST?5/1/2012
  18. 18. Legislation and AuditingThe Outer Space Treaty 1967 The Rescue Agreement 1968The Liability Convention 1972 The Registration Convention The Moon Agreement 1979International Telecommunications Union (ITU) and by virtue of TheCommunications Act2003 (orbit slotting)Technical auditingFinancial auditing 5/1/2012
  19. 19. Science and TechnologySatellite once launched with existing technology cannotbe replaced or upgraded.Future advancement will force the technology to changeand hence need of international space stations will arise.Technological advancements and up gradations will beperformed at such space stations followed by re entry toorbits 5/1/2012
  20. 20. Industries shift Agricultural Industrial revolution Revolution IT Revolution SPACE REVOLUTION5/1/2012
  21. 21. References : Nations/Nigeria Workshop on Space Law, Abuja, 21 - 24 November 2005LEGAL FRAMEWORK IN SUPPORT OF COMMERCIALIZATION OF OUTER SPACE: THE CASEOF THE ISLE OF MANSpace and Society: Bringing the Benefits of Space Technology to Earth” (In Observance ofWorld Space Week – 4-10 October)OECD Global Forum on Space 5/1/2012
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