masificació
         Hacia la masificación de los servicios de
                      mó
         banda ancha móvil
         dos dimensiones importantes




By eduardo griffa
CU PRincipal &
Lead transformation consultant
http://www.youtube.com/watch?v=i5AuzQXBsG4
Five technological revolutions in 240
years



                                                                                             1971
                                                                                             IT & telecommunication

                                                                           1908
                                                                           Automobile, oil & mass production

                                                                  1875
                                                                  Steel & heavy engineering

                                                    1829
                                                    Steam, coal, iron & railways
                                                                                                 Source: Professor Carlota Perez
                          1771                                                     Universities of Cambridge, Tallinn and Sussex

                          The industrial revolution
Public | © Ericsson AB 2011 | 2011-01-25 | Page 3
Technological revolution
Propagates in two different periods


                                          INSTALLATION                  DEPLOYMENT




                                                              Turning
                                                               point




                                         More efficiently solving     Applying paradigm to
                                         old problems - winners     innovate across society –
                                           among old players              new winners
                                                                                                Time
                                              20-30 years                 20-30 years             Source: Professor Carlota Perez
                                                                                    Universities of Cambridge, Tallinn and Sussex



                                                     Broadband at turning point
 Public | © Ericsson AB 2011 | 2011-01-25 | Page 4
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 5
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 6
Speed of change




Public | © Ericsson AB 2011 | 2011-01-25 | Page 7
Market trends 2011

                       GOING MOBILE: VIDEO, CLOUD
                       SERVICES, INTERNET & M2M

                       MORE CONNECTED DEVICES &
                       AFFORDABLE SMARTPHONES

                       TIERED PRICING & NEW BUSINESS
                       MODELS FOR MOBILE BROADBAND

                       MODERNIZATION OF NETWORKS,
                       OSS/BSS & OPERATIONS

                       FOCUS ON HIGH PERFORMANCE
                       BROADBAND NETWORKS


                                                    Source: Hans W in Sales Summitt 2011 and Q4 10 result presentation
Public | © Ericsson AB 2011 | 2011-01-25 | Page 8
The new broadband world
 Device                     Resource                                Content and     Power        Business
                                                     Applications
Momentum                    Utlization                              apps storage Consumption      Models




 Shared                     Dedicated               Defined & tested Own device   Irrelevant   One size fits all




 Personal                     Shared                 100s per day      Cloud        Low        Differentiated




Public | © Ericsson AB 2011 | 2011-01-25 | Page 9
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 10
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 11
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 12
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 13
adjusting the image…


                                                          Traffic




                                                                              Cost/GB


                                                                                   Time
                                                      Source: Light Reading




 Public | © Ericsson AB 2011 | 2011-01-25 | Page 14
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 15
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 16
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 17
                                                                                                  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 18
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 19
The result of transformation

                                               Operators can gain 30-40% OPEX savings
                                               ...and be prepared for future growth




                                              Operators can grow their traffic 100
                                              times ...and still keep control of the CAPEX




                                               Operators can reduce cost ...and increase
                                               Customer experience. They can also
                                               decrease unit costs for voice by up to 75%
                                               …and for broadband by up to 95%


Public | © Ericsson AB 2011 | 2011-01-25 | Page 20
What are the big guys doing ?




Public | © Ericsson AB 2011 | 2011-01-25 | Page 21
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 22
Public | © Ericsson AB 2011 | 2011-01-25 | Page 23
Financial result of Telstra’s
Transformation
   FINANCIAL BENEFITS CAME AFTER 5 YEARS                   6-8% LOWER CAPEX/SALES RATIO


                                                             CAPEX/Sales Ratio (%)




  $5B SALES GROWTH

                                                           Reduced cost ...and increased
                                                           customer experience

                                                           Unit costs are decreased for voice service
                                                           by 75% …and for broadband by 95%



Public | © Ericsson AB 2011 | 2011-01-25 | Page 24   Source: Telstra’s Investor Day presentations, October 2009
DT transformation




    Source: Deutsche Telekom Investor Day. On Our Way To A New
    DT – “Fix – Transform – Innovate, March 17, 2010 René Obermann”
Public | © Ericsson AB 2011 | 2011-01-25 | Page 25
TRANSFORMATION FOR
SUSTAINABLE GROWTH




                                                     Source: 7th investor Conference October 2009, JM A Pallete
Public | © Ericsson AB 2011 | 2011-01-25 | Page 26

Uade Simcel 2011 E Griffa Rev A.Ppt

  • 1.
    masificació Hacia la masificación de los servicios de mó banda ancha móvil dos dimensiones importantes By eduardo griffa CU PRincipal & Lead transformation consultant
  • 2.
  • 3.
    Five technological revolutionsin 240 years 1971 IT & telecommunication 1908 Automobile, oil & mass production 1875 Steel & heavy engineering 1829 Steam, coal, iron & railways Source: Professor Carlota Perez 1771 Universities of Cambridge, Tallinn and Sussex The industrial revolution Public | © Ericsson AB 2011 | 2011-01-25 | Page 3
  • 4.
    Technological revolution Propagates intwo different periods INSTALLATION DEPLOYMENT Turning point More efficiently solving Applying paradigm to old problems - winners innovate across society – among old players new winners Time 20-30 years 20-30 years Source: Professor Carlota Perez Universities of Cambridge, Tallinn and Sussex Broadband at turning point Public | © Ericsson AB 2011 | 2011-01-25 | Page 4
  • 5.
    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 5
  • 6.
    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 6
  • 7.
    Speed of change Public| © Ericsson AB 2011 | 2011-01-25 | Page 7
  • 8.
    Market trends 2011 GOING MOBILE: VIDEO, CLOUD SERVICES, INTERNET & M2M MORE CONNECTED DEVICES & AFFORDABLE SMARTPHONES TIERED PRICING & NEW BUSINESS MODELS FOR MOBILE BROADBAND MODERNIZATION OF NETWORKS, OSS/BSS & OPERATIONS FOCUS ON HIGH PERFORMANCE BROADBAND NETWORKS Source: Hans W in Sales Summitt 2011 and Q4 10 result presentation Public | © Ericsson AB 2011 | 2011-01-25 | Page 8
  • 9.
    The new broadbandworld Device Resource Content and Power Business Applications Momentum Utlization apps storage Consumption Models Shared Dedicated Defined & tested Own device Irrelevant One size fits all Personal Shared 100s per day Cloud Low Differentiated Public | © Ericsson AB 2011 | 2011-01-25 | Page 9
  • 10.
    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 10
  • 11.
    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 11
  • 12.
    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 12
  • 13.
    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 13
  • 14.
    adjusting the image… Traffic Cost/GB Time Source: Light Reading Public | © Ericsson AB 2011 | 2011-01-25 | Page 14
  • 15.
    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 15
  • 16.
    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 16
  • 17.
    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 17 Source: BCG
  • 18.
    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 18
  • 19.
    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 19
  • 20.
    The result oftransformation Operators can gain 30-40% OPEX savings ...and be prepared for future growth Operators can grow their traffic 100 times ...and still keep control of the CAPEX Operators can reduce cost ...and increase Customer experience. They can also decrease unit costs for voice by up to 75% …and for broadband by up to 95% Public | © Ericsson AB 2011 | 2011-01-25 | Page 20
  • 21.
    What are thebig guys doing ? Public | © Ericsson AB 2011 | 2011-01-25 | Page 21
  • 22.
    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 22
  • 23.
    Public | ©Ericsson AB 2011 | 2011-01-25 | Page 23
  • 24.
    Financial result ofTelstra’s Transformation FINANCIAL BENEFITS CAME AFTER 5 YEARS 6-8% LOWER CAPEX/SALES RATIO CAPEX/Sales Ratio (%) $5B SALES GROWTH Reduced cost ...and increased customer experience Unit costs are decreased for voice service by 75% …and for broadband by 95% Public | © Ericsson AB 2011 | 2011-01-25 | Page 24 Source: Telstra’s Investor Day presentations, October 2009
  • 25.
    DT transformation Source: Deutsche Telekom Investor Day. On Our Way To A New DT – “Fix – Transform – Innovate, March 17, 2010 René Obermann” Public | © Ericsson AB 2011 | 2011-01-25 | Page 25
  • 26.
    TRANSFORMATION FOR SUSTAINABLE GROWTH Source: 7th investor Conference October 2009, JM A Pallete Public | © Ericsson AB 2011 | 2011-01-25 | Page 26