PANEL: Hacia la masificación de los
         servicios de banda ancha móvil
         dos dimensiones importantes




By eduardo griffa
CU PRincipal &
Lead transformation consultant
http://www.youtube.com/watch?v=i5AuzQXBsG4
Agenda



                                                    INDUSTRY CHALLENGES


                                                    HOW MUCH INTEGRATED IS YOUR FACTORY ?

                                                    HOW IS IT REALLY LIKE TO BE YOUR
                                                    CUSTOMER ?

                                                    CONCLUSSIONS




Public | © Ericsson AB 2011 | 2011-01-25 | Page 3
Cost efficiency is not the only
challenge
What are the key drivers                                                                   What does business
of satisfaction of my                                                                      innovation mean?
                                                    What are my
customers ?                                         customers’ pain
                                                    points ?

                                                                                                Where do you
                                                              Is the network a                  prioritize
                                                              differentiator ?                  business innovation?
        How to use the technology
        as an enabler of cost                                                              How efficient are my
        reduction in business                                                              operations ? How do I
        processes ?                                                                        benchmark ?

Do I need to invest to save ?                                                    Do I have to reduce Costs
                                                                                 first and then increase the
                                                                                 revenues ?
   Driving down cost is
       important -
                                                                       Do I have to Optimize or do
  but far from enough                                                  I have to develop (enable)
                                                                       new things ?
Public | © Ericsson AB 2011 | 2011-01-25 | Page 4
Two important dimensions



                                                     High
                           Level of integration of
                                  "factory"




                                                     Med.




                                                     Low



                                                              Low          Middle         High


                                                                Level of customer centricity
                                                            of organization and product portfolio

Public | © Ericsson AB 2011 | 2011-01-25 | Page 5
Traffic and revenue decoupled…


                                                        Traffic


                                                                                             Revenue & Traffic
                                                                                               De-Coupled




                                                                                                    Revenues




                         Voice Dominant                                     Mobile Broadband Dominant




                                                                                                                 Time
                                                    Source: Light Reading




Public | © Ericsson AB 2011 | 2011-01-25 | Page 6
adjusting the image…


                                                        Traffic




                                                                            Cost/GB


                                                                                 Time
                                                    Source: Light Reading




Public | © Ericsson AB 2011 | 2011-01-25 | Page 7
Customer experience in telecom
trailing other industries
     Indexed customer
        satisfaction
              100


                90
                        84      84       83      83      82
                80                                                79
                                                                          76       75       75       74      74       74       74
                                                                                                                                       72       71
                70                                                                                                                                      69
                                                                                                                                                                 64

                60




                  0
                      Automot. Credit ElectronicsInternet Express Life       Super Banks   Hotels   Utilities Internet Motion Postal Fixed tel. Cable Wireless Airlines
                               Unions             search Delivery Insurance markets                            News Pictures Service service     TV tel. service
                                                 engines




Note: maximum rating is 100
Source: ACSI 2009



Public | © Ericsson AB 2011 | 2011-01-25 | Page 8
SIX KEY drivers of customer
experience
                                            CUSTOMER EXPERIENCE                        RELATIVE
                                            SATISFACTION DRIVERS                       WEIGHT1
                               It is easy to join us
                               1 Purchase process
                               ›                                                          ~50
                               2 Service installation
                               ›

                               Dealing with us is a pleasure
                               3 Response to an enquiry
                               ›
                                                                                          ~50
                               4 Problems (e.g. “I cannot access internet")
                               ›


                               5 Invoice (e.g. “The amount is different than in the
                               ›
                                                                                          ~70
                               agreement")


                               Recognition - we value our loyal customers
                               6 Agreement prolongation (e.g. “I have worse
                               ›                                                          ~60
                               contractual terms than new customers")

Note: Share of respondents mentioning as top three pain-point or satisfaction driver
Source: BCG



Public | © Ericsson AB 2011 | 2011-01-25 | Page 9
                                                                                                  Source: BCG
Agenda



                                                     INDUSTRY CHALLENGES


                                                     HOW MUCH INTEGRATED IS YOUR FACTORY ?

                                                     HOW IS IT REALLY LIKE TO BE YOUR
                                                     CUSTOMER ?

                                                     CONCLUSSIONS




Public | © Ericsson AB 2011 | 2011-01-25 | Page 10
What is your
Transformation approach?


                                                                                                          1 Front
                                                                      High                                 runners
                                  Level of integration of "factory"



                                                                                         2 Selective
                                                                                          transformers
                                                                      Med.



                                                                             3
                                                                                 Integration
                                                                                   skeptics
                                                                      Low



                                                                             Low               Middle           High
                                                                                  Level of customer centricity
                                                                              of organization and product portfolio



Public | © Ericsson AB 2011 | 2011-01-25 | Page 11
Public | © Ericsson AB 2011 | 2011-01-25 | Page 12

Convergencia 2011 E Griffa Rev A

  • 1.
    PANEL: Hacia lamasificación de los servicios de banda ancha móvil dos dimensiones importantes By eduardo griffa CU PRincipal & Lead transformation consultant
  • 2.
  • 3.
    Agenda INDUSTRY CHALLENGES HOW MUCH INTEGRATED IS YOUR FACTORY ? HOW IS IT REALLY LIKE TO BE YOUR CUSTOMER ? CONCLUSSIONS Public | © Ericsson AB 2011 | 2011-01-25 | Page 3
  • 4.
    Cost efficiency isnot the only challenge What are the key drivers What does business of satisfaction of my innovation mean? What are my customers ? customers’ pain points ? Where do you Is the network a prioritize differentiator ? business innovation? How to use the technology as an enabler of cost How efficient are my reduction in business operations ? How do I processes ? benchmark ? Do I need to invest to save ? Do I have to reduce Costs first and then increase the revenues ? Driving down cost is important - Do I have to Optimize or do but far from enough I have to develop (enable) new things ? Public | © Ericsson AB 2011 | 2011-01-25 | Page 4
  • 5.
    Two important dimensions High Level of integration of "factory" Med. Low Low Middle High Level of customer centricity of organization and product portfolio Public | © Ericsson AB 2011 | 2011-01-25 | Page 5
  • 6.
    Traffic and revenuedecoupled… Traffic Revenue & Traffic De-Coupled Revenues Voice Dominant Mobile Broadband Dominant Time Source: Light Reading Public | © Ericsson AB 2011 | 2011-01-25 | Page 6
  • 7.
    adjusting the image… Traffic Cost/GB Time Source: Light Reading Public | © Ericsson AB 2011 | 2011-01-25 | Page 7
  • 8.
    Customer experience intelecom trailing other industries Indexed customer satisfaction 100 90 84 84 83 83 82 80 79 76 75 75 74 74 74 74 72 71 70 69 64 60 0 Automot. Credit ElectronicsInternet Express Life Super Banks Hotels Utilities Internet Motion Postal Fixed tel. Cable Wireless Airlines Unions search Delivery Insurance markets News Pictures Service service TV tel. service engines Note: maximum rating is 100 Source: ACSI 2009 Public | © Ericsson AB 2011 | 2011-01-25 | Page 8
  • 9.
    SIX KEY driversof customer experience CUSTOMER EXPERIENCE RELATIVE SATISFACTION DRIVERS WEIGHT1 It is easy to join us 1 Purchase process › ~50 2 Service installation › Dealing with us is a pleasure 3 Response to an enquiry › ~50 4 Problems (e.g. “I cannot access internet") › 5 Invoice (e.g. “The amount is different than in the › ~70 agreement") Recognition - we value our loyal customers 6 Agreement prolongation (e.g. “I have worse › ~60 contractual terms than new customers") Note: Share of respondents mentioning as top three pain-point or satisfaction driver Source: BCG Public | © Ericsson AB 2011 | 2011-01-25 | Page 9 Source: BCG
  • 10.
    Agenda INDUSTRY CHALLENGES HOW MUCH INTEGRATED IS YOUR FACTORY ? HOW IS IT REALLY LIKE TO BE YOUR CUSTOMER ? CONCLUSSIONS Public | © Ericsson AB 2011 | 2011-01-25 | Page 10
  • 11.
    What is your Transformationapproach? 1 Front High runners Level of integration of "factory" 2 Selective transformers Med. 3 Integration skeptics Low Low Middle High Level of customer centricity of organization and product portfolio Public | © Ericsson AB 2011 | 2011-01-25 | Page 11
  • 12.
    Public | ©Ericsson AB 2011 | 2011-01-25 | Page 12