Driving Innovation Across the Business-03


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Driving Innovation Across the Business

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Driving Innovation Across the Business-03

  1. 1. SERVICE PROVIDERTRANSFORMATIONMAKING THE SHIFT FROM COST-DRIVEN TO BUSINESS-DRIVENINITIATIVES IN THE NEWTELECOMS DECADEMarc Rotthier – VP SalesHP Communications and MediaSolutions B iS l ti Business U it Unit©2011 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice
  2. 2. Decades of change in the Telecoms Industry 1980 - 1999 2000 - 2009 2010 - 2020 Revenue Gap Revenues Growth G Data Traffic Enterprise Growth Consumer Growth Business Transformation In this decade CSPs transform to get serious about: • Their revenues and customer focus • Their cost structure3
  3. 3. Transformation is a key agenda item but execution is ill i still a challenge h ll Q: Do you believe your organization Q: What are the biggest challenges your needs to undergo Transformation? organization has faced in successfully driving Transformation programs? 6% 5% 5% Implementation Yes 96% 22% 8% Limited 8% 17% Pace of  Momentum No 4% 14% Fulfillment Executive  15% Alignment Change  Ch Capabilities Source: Hewlett-Packard Global Transformation Study 20104 In collaboration with Frost and Sullivan
  4. 4. Transformation priorities are shifting Q: Considering your current organization and market situation, what are your top three business priorities in relation to Transformation? 1 Margin Growth 2 Time to Market 3 Cost Reduction 4 Revenue Growth SURVIVE THRIVE 88% cited: 88% cited: 56% cited: 32% cited: Revenues & A high Cost reductions Revenue growth margin performance from new services from current & agile & business models portfolio business Source: Hewlett-Packard Global Transformation Study 20105 In collaboration with Frost and Sullivan
  5. 5. Approaches to Transformation Where are operators going? COST REVENU EXPERIENC INNOVATION AGILITY E E OUTSOURCING AND ORGANIZATION BUSINESS NEW BUSINESS MANAGED TOOLS, PROCESS RESTRUCTURING MODELS SERVICES • Managed Networks • Reorganizing for • Network sharing • Wholesale/retail customer segments • Call center outsource • M&A • Two-sided business •C Consistent process i t t model d l • VAS Outsourcing • Sell off network and systems • IT and • OSS, BSS and IT Application transformation Provider COST-FOCUSED BUSINESS-FOCUSED6
  6. 6. New business models: IT and application provider CONTENT AND COMMUNICATIONS APPLICATIONS END USERS SERVICE PROVIDERS PROVIDERS Messaging BUSINESS CONSUMERS Settlement & charging Aggregation Monitoring & reporting SLA Security Providing cloud-based infrastructure to accelerate SFR Business Team growth in its enterprise business that already serves 140,000 French companies7
  7. 7. Cloud & as-a-Service applications at SFR New revenues from adjacent IT Markets for Enterprise REVENUE Beat the competition through an innovative offer – three months to market INNOVATION Aggregation platform approach gives quick time-to-market for new services AGILITY "The Cloud Computing business model is similar to the one of Telecommunications Operators. [It] is also an opportunity to increase customer’s EXPERIENCE loyalty. Cloud services represent a major opportunity for both SFR and our business customers. Paul Corbel, General M P lC b l G l Manager, SFR B i Business T Team8
  8. 8. VAS Outsourcing for operational agility OpEx is flat Voice VAS revenue is declining Old World METHOD: Innovation 10% ASSESS operation Transformation ..CONSOLIDATE architecture and process Technology 30% …COMMIT to SLAs Innovation Outsourcing Modernization & RESULTS: 20-25% Consolidation Operation 60% GOVERN via well stipulated KPIs and SLOs Governance & 35 40% 35-40% Cost ti i ti C t optimization ..SAVE significant OpEx, eliminate CapEx O …FREE staff to INNOVATE9
  9. 9. VAS Outsourcing for a large Indian Operator Enabled faster response to new market and revenue opportunities COST Reduced TCO by 40% Vastly improved ability to make VAS service changes INNOVATION Voice XML used to effectively support innovative new services AGILITY Twenty separate IVR platforms were consolidated to a single, robust Network-based IVR that was outsourced according to a strict SLAs g10
  10. 10. OSS/BSS Transformation: Why? Cost-Reduction Agility Experience Meet objectives for OSS cannot be Customer reduced “Network a roadblock to Satisfaction Costs” and OPEX new services “50% more efficient” i ffi i t” in Magyar decreased T-Mobile Hungary: saved Fault Management in TTM 20% through $6M/year and best ever Verizon consolidated provisioning customer satisfaction11 *Source IDC study of HP customers
  11. 11. OSS/BSS Transformation at DTAC COST Double digit OpEx reduction Halve problem solving time 70% first contact resolution rate time, EXPERIENCE Consolidation to common application and processes improves TTM AGILITY “HP’s dSmart solution comprises of a set of …standard applications to improve speed, delivery of services and service quality.“ quality. – Tore Johnsen CEO dtac cited in Thailand’s “The Nation” Johnsen, CEO, Thailand s The Nation12
  12. 12. THANK YOU13 ©2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice