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MIB 2012


                           Sireesh PALLIKONDA
                                    Rasha ITANI
                              Karen PORTUGAL
                                  Vineet TYAGI




           Consultancy Management
                      of
5/1/2012
              Space Capitalization
Why Space?
Is it just a fascination or business?
Yes its more of a business than fascination
What 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
How does this business works




5/1/2012
Why Privatization of Space




5/1/2012
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
WHICH GOVERNMENTS ARE TAKING INITIATIVE




5/1/2012
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
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
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 results




5/1/2012
Proposed advantages in
                   cost and volumes
Before privatization                        After privatization
The cost each launch for telecom            The cost becomes 500 euros for each
company Is 1000 euros.                      launch for telecom company.

Telecom companies have to depend on         Launch companies will the autonomy to
government launch stations for their        market themselves and increase their
satellites to get launched.                 volumes of launch.

In a single launch, they orbit one or two   In a single launch they can orbit 6
satellites 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
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
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 O'Connor                   Arduino Patacchini                      Ariane Rossi
5/1/2012                          Director of Corporate         Director of Multimedia & Value-   Director of Accounting, Controlling
                                    Communications                       Added Services                  & Corporate Finance
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
HOW TO BUILD SKILLS
         Create a pilot team to train them
     “understanding the privatization process”




5/1/2012
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
Economy
Developing economies have keen interest in such projects , number of countries
like Sri Lanka, Bangladesh and many small developing economies have vision to
have their own launch capabilities.

Every dollar spent on Apollo Programme has brought back 15 USD , however
absence of chronological quantified data are not abundant.

Space sector will create multifold growth on GDP of a economy as most
industries targeted have to depend on space sector due to recent technological
advancements.




  5/1/2012
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
Legislation and Auditing
The Outer Space Treaty 1967
 The Rescue Agreement 1968
The Liability Convention 1972
 The Registration Convention The Moon Agreement 1979
International Telecommunications Union (ITU) and by virtue of The
Communications Act
2003 (orbit slotting)


Technical auditing
Financial auditing


 5/1/2012
Science and Technology
Satellite once launched with existing technology cannot
be replaced or upgraded.
Future advancement will force the technology to change
and hence need of international space stations will arise.
Technological advancements and up gradations will be
performed at such space stations followed by re entry to
orbits




 5/1/2012
Industries shift
           Agricultural                Industrial
           revolution                  Revolution




           IT Revolution               SPACE
                                       REVOLUTION




5/1/2012
References :
http://www.eutelsat.com/eutelsat/eutelsat.html
http://www.eutelsatigo.int/en/eutelsat.php?menu=5
United Nations/Nigeria Workshop on Space Law, Abuja, 21 - 24 November 2005
LEGAL FRAMEWORK IN SUPPORT OF COMMERCIALIZATION OF OUTER SPACE: THE CASE
OF THE ISLE OF MAN
Space and Society: Bringing the Benefits of Space Technology to Earth” (In Observance of
World Space Week – 4-10 October)
OECD Global Forum on Space Economy
www.oecd.org/futures/space
http://www.eutelsat.com/investors/documents.html
http://www.eutelsat.com/news/compress/en/2010/pdf/PR3510-Annual-Results-2009-
2010.pdf
http://www.gao.gov/assets/120/111523.pdf
http://www.gov.im/ebusiness/spacesector.xml
http://www.youtube.com/watch?v=cfSaztUiw5s



   5/1/2012

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CONSULTENCY MANAGEMENT OF SPACE CAPTALIZATION

  • 1. MIB 2012 Sireesh PALLIKONDA Rasha ITANI Karen PORTUGAL Vineet TYAGI Consultancy Management of 5/1/2012 Space Capitalization
  • 2. Why Space? Is it just a fascination or business? Yes its more of a business than fascination What 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. How does this business works 5/1/2012
  • 4. Why Privatization of Space 5/1/2012
  • 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
  • 6. WHICH GOVERNMENTS ARE TAKING INITIATIVE 5/1/2012
  • 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. 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. 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 results 5/1/2012
  • 10. Proposed advantages in cost and volumes Before privatization After privatization The cost each launch for telecom The cost becomes 500 euros for each company Is 1000 euros. launch for telecom company. Telecom companies have to depend on Launch companies will the autonomy to government launch stations for their market themselves and increase their satellites to get launched. volumes of launch. In a single launch, they orbit one or two In a single launch they can orbit 6 satellites 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. 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. 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 O'Connor Arduino Patacchini Ariane Rossi 5/1/2012 Director of Corporate Director of Multimedia & Value- Director of Accounting, Controlling Communications Added Services & Corporate Finance
  • 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. HOW TO BUILD SKILLS Create a pilot team to train them “understanding the privatization process” 5/1/2012
  • 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. Economy Developing economies have keen interest in such projects , number of countries like Sri Lanka, Bangladesh and many small developing economies have vision to have their own launch capabilities. Every dollar spent on Apollo Programme has brought back 15 USD , however absence of chronological quantified data are not abundant. Space sector will create multifold growth on GDP of a economy as most industries targeted have to depend on space sector due to recent technological advancements. 5/1/2012
  • 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. Legislation and Auditing The Outer Space Treaty 1967 The Rescue Agreement 1968 The Liability Convention 1972 The Registration Convention The Moon Agreement 1979 International Telecommunications Union (ITU) and by virtue of The Communications Act 2003 (orbit slotting) Technical auditing Financial auditing 5/1/2012
  • 19. Science and Technology Satellite once launched with existing technology cannot be replaced or upgraded. Future advancement will force the technology to change and hence need of international space stations will arise. Technological advancements and up gradations will be performed at such space stations followed by re entry to orbits 5/1/2012
  • 20. Industries shift Agricultural Industrial revolution Revolution IT Revolution SPACE REVOLUTION 5/1/2012
  • 21. References : http://www.eutelsat.com/eutelsat/eutelsat.html http://www.eutelsatigo.int/en/eutelsat.php?menu=5 United Nations/Nigeria Workshop on Space Law, Abuja, 21 - 24 November 2005 LEGAL FRAMEWORK IN SUPPORT OF COMMERCIALIZATION OF OUTER SPACE: THE CASE OF THE ISLE OF MAN Space and Society: Bringing the Benefits of Space Technology to Earth” (In Observance of World Space Week – 4-10 October) OECD Global Forum on Space Economy www.oecd.org/futures/space http://www.eutelsat.com/investors/documents.html http://www.eutelsat.com/news/compress/en/2010/pdf/PR3510-Annual-Results-2009- 2010.pdf http://www.gao.gov/assets/120/111523.pdf http://www.gov.im/ebusiness/spacesector.xml http://www.youtube.com/watch?v=cfSaztUiw5s 5/1/2012