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IS TELCO NOW A
MEDIA BUSINESS?
02 › How Technology Enabled New Content
Numbers May Drive the Business, but it’s Your People Who Drive the Numbers
Telecom Service Providers
There was a time when the product mix of many consumer-oriented Telecom Service Providers
(Telcos) consisted primarily of voice telephony, voice telephony and voice telephony. In those days,
most of the “content” (i.e. conversation) was created and produced by the consumer himself.
3 Major Breakthroughs
Over the last ten years, three major product breakthroughs happened in the telecom world, and they changed the
environment completely:
• Fixed broadband
• IDTV
• Mobile broadband
These three changes have one thing in common: They made it possible for content generated by someone other
than the user or customer to become very important.
Te l e c o m
Services
Provider
Traditionally, at least three key roles were needed in the media value chain to bring television content from the creators to the
customer on his couch: The Producer, an Aggregator and a Distributor.
content
content
content
content
Consumer
How the Traditional Model Worked: The Producer makes sure the content is captured and put into a format. The Aggregator groups different
content together and makes it available for consumption by the end-user. Quite often, the Aggregator tries to sell advertising in and around the
content. The Distributor enables the physical distribution to the house of the customer by cable, DSL, satellite, etc.
New players invading the market But a willingness by advertisers to pay “per eyeball” might
The new IP-based technologies allow players from the different increase when targeting improves. This blurring imposes real
blocks to enter more and more into the space of the others. threats to existing players. But it offers opportunities for those
For example, Distributors often buy content directly from the with a clear and credible strategy and excellent execution of it.
Producer or the creator. Distributors then put the content on
their platform and charge the end-users a one-off or a recurring
fee. Over the last few years, completely new players have
entered the space. These include content Aggregators on the
internet, Telcos starting to distribute television, Aggregators
selling telecommunication services and users creating their
own content.
Industry experts predict that mobile broadband will become Companies like mobile communication service providers
a 1.8 billion-subscriber market by 2012. The number of mobile Nimbuzz and Fring position their platforms as an “all in one”
broadband subscribers will pass the number of fixed broadband solution. Not only do they allow access to social networking
subscribers worldwide by then. Players in this market use a platforms, but they also include voice and texting services.
variety of strategies.
Part II: Marketing and Distribution Excellence Are More Important than Ever
As a brand-strong and cash-rich industry, Telecom companies the future is the trend of franchising in telecommunication
have always been at the forefront of aggressive communication retail. With a strong brand and good channel management,
tactics and strong brand strategy. With margins under pressure operators can:
and new social media rising, a number of alternatives need to
be considered in order to use marketing money in the most • Keep a strong presence in the market
efficient way. • Increase the motivation level of the workforce in retail shops, and
• Avoid over-investing in “brick and mortar” stores with scarce
Creating a consistent customer experience funds that are highly needed elsewhere in the company.
One clear potential movement has to do with the distribution. By
integrating a number of independent players, the operator can This enables—and requires—operators to concentrate on the
get better control of the whole customer experience. Another major part of their marketing assets: the service portfolios and
movement that is just beginning but that will grow further in the customer experience.
Fixed
For more information, please contact our Director of Custom
Broadband? Made Solutions, Patrick Faniel. Contact him at:
Telephone: +32 (0)2 543.21.20
Email: pfaniel@mce-ama.com
IDTV? Or visit our website at: www.mce-ama.com
Your All-Purpose
Strategy Update for Senior Managers in the Telecom Services
Industry. For details, visit: www.mce-ama.com/2359.
Telco!
• Entertainment?
• Internet?
• Mobile Services?
• Other Services?
Part IV: How Will You Adapt to Profit from New Opportunities?
1. Adjusting your strategy to open up
How MCE can help you
new revenue sources A shift in the business model requires more than just cosmetic
Fifteen years ago, the vast majority of revenues of a Telecom changes to the organization and retraining your sales manager.
operator came from fixed voice and access. More recently, Often, the environment has changed around the telecom
mobile voice and fixed Internet services allowed operators to operator, including the customer needs, the competitors and
grow substantially. even sometimes the regulators.
Focusing on strengths
Changing your business model requires thorough reflection on
what you are currently good at. It also requires that you ask and
answer some difficult questions:
• How flexible is your organization?
• How flawless are your people in implementing your current
strategy?
• How quickly can you get them to adapt to a new strategy?
Even today’s large operators will not be able to buy and integrate Agreeing on objectives in advance
all the players in the value chain. For this, strategic partnerships Those partnerships and alliances have to be managed in a
and alliances will have to be made in several directions in order careful and prepared way. Crucial issues like strategy alignment
for each player to maximize its added value. and execution need to be clear for everybody. Shared objectives
-- whether short, medium or long-term – need to be established
Finding the right mix of partners before entering into the partnership or alliance.
A Telecom operator might want to establish closer ties with a
technology provider, a content provider or even some software
application vendors.
Moving up or down the value chain is not something that can be For individual development of managers, we invite you to
taken lightly. It will always require specific integration skills to make participate in our open enrolment workshops.
sure that the new people onboard will be aligned to the corporate Evaluating Strategic Alliance and Partnership is for senior
strategy and that the people already onboard have the proper managers and executives who want the tools to evaluate strategic
leadership skills. relationship changes. Visit www.mce-ama.com/2261.
Launching and Managing Strategic Alliances and Partnerships
In this situation, managing your network of interested parties helps senior managers identify and plan for the requirements
plays a major role in making sure your company positioning of a successful partnership, including processes for clarifying
on the value chain is clear for everyone. MCE’s open enrolment responsibilities and resolving conflicts.
workshop, Managing the Network of Interested Parties in the For details, visit: www.mce-ama.com/2262.
Telecom Service Industry - Stakeholder Management explores Managing Strategic Alliances and Partnerships is for all managers
the stakeholder dynamics and offers insight in how Telecom who are managing a joint venture, partnership or alliance with
service providers can position themselves to successfully lead the another organization. For details, visit: www.mce-ama.com/2247.
orchestration of networks.
For details, visit: www.mce-ama.com/2293.
MCE can help your top-level and line managers identify the
different directions innovation can take in Telco. Contact us to start
a discussion on innovation. Patrick Faniel, Director of Custom Made
Solutions. +32 (0)2 543.2120. Email: pfaniel@mce-ama.com.
How do you know if your customers are loyal—or not? MCE can help you implement a customer recommendation
Influencing these variables starts with measuring them. Measuring survey in your company, unit, division or department.
Depending on what you find thru customer recommendation
loyalty via a Customer Recommendation Score is an approach
research, we can identify what your company needs to do to
MCE knows well. It is a handy metric for pointing to actions that
focus more productively on your customers. This could include
can bring an organization as a whole to customer centricity. It is executive coaching, Customer Recommendation certification,
also a tool that can be used at the level of the brand, and also at development workshops or working with you to resolve the
the level of the product or a specific interaction. people problems around managing change. For details, please
contact Patrick Faniel at +32 (0)2 543 21 20
or email pfaniel@mce-ama.com.
How Do You Get Your Customers to
Recommend You? To help you develop individuals in key roles in your company,
For answers, visit: www.mce-ama.com/customerfocus2011 our open enrolment workshop, Profitable Customer
Centricity: How Do You Get There? is a practical overview of
Customer Recommendation. It helps you understand the data
Churn measurement is an effective way to monitor the from a Customer Recommendation survey. You will also gain
performance of your company. Loyalty indicators can also include insights into how to adapt your business unit, department or
organization based on what the data indicates. We recommend
“hard” elements like long-term contracts and discount schemes.
the workshop for managers in finance, sales, marketing,
operations, manufacturing and production.
Listen to online customers, too
For details, visit: www.mce-ama.com/2196.
Regardless of the method you use, you need to listen to
what your customers tell you. Listening is central to learning,
improving and engaging with them. Social media websites—
where customers exchange views about services and experiences
with a company—can give you an “unedited” view of customer
opinions. On such websites, an anonymous customer can have
a huge impact, both positively and negatively.
VALUE CUSTOM-
PRICED MADE
OFFER SOLUTIONS
What is my
Customer Value Proposition in
“IN-BETWEEN” PREMIUM Consumer (B2C) Markets?
OFFER OFFER
VALUE CUSTOM-
PRICED MADE
OFFER SOLUTIONS
What is my
Customer Value Proposition in
“IN-BETWEEN” PREMIUM B2B Markets?
OFFER OFFER
New Key Account Managers need to be able to lead the way through the difficult process of ROI calculation for their customers while
keeping an eye on the P&L levels for their own company. They also need to be able to manage the sales and the network together with
other stakeholders who are also looking to maximize their share of the market. Sometimes these stakeholders can be partners, but at
other times they are competitors.
Who is this workshop for? What are the major topics discussed
General and Senior managers with several years of experience in this workshop?
in boundary roles. An Update on the Key Developments in the Telecom Service
What will you be able to “take away” Marketplace
• External trends (customers, technologies, geographic...)
from the workshop?
• Analyze parallel situations in other industries
As a result of participating in this workshop, you will be better • Case study part 1
able to: • Explore the marketplace of today and the likely scenarios for
• Identify all stakeholders and realize the dynamics of the next five years
interactions among them
• Assign responsibility for the relationships with stakeholders Define a Stakeholder Management Plan
in your company • Stakeholder Strategy setting
• Define critical success factors for successful relationships • Long lasting partnership
with stakeholders • Tactics for marketing together
• Determine the criteria for selecting the right business model • Customer-centric strategy
for your organization • Assessing emerging new models in Telecom service
• Assess the specific role of key opinion leaders for your provisioning
business • Case study part 2
• Align corporate communication with stakeholder interests • Define current market approach vs. potential future
• Organize and manage cross-organizational developments, collaborative approach
balancing costs, risk and profits
Lead and Execute on Time
• How to activate the network?
• How to motivate stakeholders that are not part of your
company?
• What kind of KPIs can be used to steer and report to the
board of your company?
For full details about this workshop, see: • Can we calculate the ROI of a partnership?
• Case study part 3
www.mce-ama.com/2293
Even if you are not in charge of the company strategy and brand positioning, the decisions you make about the product attributes and
pricing will have a direct impact on the company brand and value proposal. During this 4 day intensive workshop, the participants will
get a clear view on the Product Marketing management basics—the seven building blocks. At the end of the workshop, participants will
have a clear view and tools to use in creating their own Product Marketing plans and to bring them to successful completion.
But how do you know where to draw the line? What impact will your decisions have on your business strategy and market launch?
How will customers perceive these new ideas? How do you manage the “perpetual beta mode”? How do you reduce time-to-market
drastically? How can you develop in partnership with others?