Communications Service Providers Transforming into Business Exchanges
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1 Communications Service Providers Transforming into Business Exchanges Erwan Ménard, VP and General Manager HP - Communications & Media Solutions 1 GTB 40 Under 40 Summit, London, Sep 27 th 2010
2 ERA OF UNLIMITED CUSTOMER CHOICE Customer: I m Im spoilt for choice! On device Portal App Store Device Experience Content Provider Service Provider: I need to grow, but efficiently! 2
3 DEVELOPING DIGITAL RELATIONSHIP Digital channels, not physical Anywhere, anytime Anything (voice communication + Internet, video, communication, commerce ) Develop multiple touch points: Multiple converged networks, consistent services Support multiple device experiences Offer rich portfolio of partner services that emphasis the brand/experience 3
4 THE FOCUS OF TRANSFORMATION PROJECTS IS CHANGING Transformation means taking things to the next level..old business models are now being challenged. When the fundamental assumptions change, you either transform or you die Transformation specifically means changing from being a traditional telecom operator to becoming a sophisticated provider of services to businesses and individuals. CSP quotes HP and Frost & Sullivan study
5 THE INDUSTRY IMPERATIVE IS TRANSFORMATION Question: Do you believe your organisation needs to undergo Transformation? Quotes: % of respondents 100% 96% 90% 80% 70% 60% 50% 40% 30% 20% 10% 4% 0% Yes No Source: Hewlett Packard Global Transformation Study 2010 In collaboration with Frost and Sullivan Transformation specifically means changing from being a traditional telecom operator to becominga sophisticated provider of services to businesses and individuals. 5
6 POOR EXECUTION IS THE PRINCIPAL HURDLE TO TRANSFORMATION SUCCESS Question: What are the biggest challenges your organisation has faced in successfully driving i Transformation programmes? No. of votes Source: Hewlett Packard Global Transformation Study 2010 In collaboration with Frost and Sullivan
7 CUSTOMER SATISFACTION IS THE PRINCIPAL NON FINANCIAL MEASURES OF SUCCESS Question: Which non-financial measures are most important to your organisation when assessing the impact of Transformation? % of votes Customer Productivity it Employee Time to Market Other Satisfaction satisfaction Quotes: I came to this from a perspective of listening to the customer, so the # 1 metric has to be customer satisfaction Source: Hewlett Packard Global Transformation Study 2010 In collaboration with Frost and Sullivan 7
8 TOP BUSINESS PRIORITIES IN TRANSFORMATION Question: Considering your current organisation and market situation, what are your top 3 business priorities in relation to Transformation? Margin Time to Cost Revenue Growth Market Reduction Growth SURVIVE 88% sited: 88% sited: 56% sited: Revenues and margin generated from the current portfolio A high performance and agile business OPEX Reduction leveraging cross business assets THRIVE 32% sited: Revenue growth from new services and business models Source: Hewlett Packard Global Transformation Study 2010 In collaboration with Frost and Sullivan 8
9 TECHNOLOGY TO BUSINESS (T2B) TRANSFORMATION STRATEGIC ISSUES Agile Operations Rigid and Fragmented Systems T2B Silo Experience Customer-centric Data Management and Intelligence 9 OTT Dilemma New Business Models eg. Cloud
10 HP HP T2B CMS TRANSFORMATION Experience MAP CASE STUDIES 100s of customers, 22 of the top 25 in the world SFR Swisscom PTCL New Business Tl Telecom Italia Rogers Agile Operations Agile Operations Models DTAC Customer-Centricity CentralAM OpCo Customer-Centricity LATAM OpCo Agile Operations Maxxis Magyar Agile Vodacom Operations Telstra Customer- Centricity 10
11 CLOUDS AND CSPs THREAT OR OPPORTUNITY? THREATS Over-The-Top Players, potentially with Software- Based Communication Services Pipe Commoditization Insatiable Bandwidth Demand Net Neutrality OPPORTUNITIES Becoming a Business Exchange and Experience Provider Integrated Network + Cloud Service Provider approach differentiated t d with QoE and Security Internal Clouds: consolidate own IT capabilities (Billing, OSS, Service Delivery) on a common and more agile pool 11
12 HP S TOTAL CLOUD SOLUTION FOR CSPs New revenue streams with Enterprise Cloud Services Enablement for CSP Service Creation Automatic Provisioning Monitoring Compute Services Storage Infrastructure as a Service Servers Cloud Storage Services Outsourcing Cloud C Consulting Virtualization Cl d operating ti environment i t Cloud Power & cooling Network Cloud Support Datacenter & Infrastructure Billing Cloud Implementation Infra Management Full Lifecycle Services 12
13 CLOUD SERVICES ENABLEMENT- SFR, FRANCE T2B Work Cloud services represent a major opportunity for both SFR and our business customers. HP s cloud expertise and proven technology will help SFR become the trusted provider for a wide range of as a service offerings. Paul Corbel, General Manager, SFR Business Team 13
14 SFR CLOUD STRATEGIC BUSINESS GOALS SFR Business Team French Telecom Leading PROBLEM - A complete cloud services platform -Enable SFR to offer IT infrastructure as a Service (IaaS) - Utility-based pricing - HP Cloud Consulting Services SOLUTION -HP Service Aggregation g Platform for SaaS - HP Cloud Service Automation software - HP BladeSystem Matrix RESULT - Deployed in 3 months SFR Business Team - Offering available to 150,000 companies - Predictable operating costs, less capital investment A pan-hp solution integrated into the OSS BSS environment for all SFR s existing, future, owned & 3 rd party Cloud applications 14
15 SUMMARY T2B TRANSFORMATION While the end-user experience is defined by Digital Relationships, CSPs have the opportunity to transform into Business Exchanges Accordingly, transformation priorities are shifting to: Agile Operations Customer Centric Data Management and Intelligence New Business Models driven by M2M and Cloud Recommendations for successful Technology to Business transformation: Lead by assessing the business issues, across the business assets and silos Look at transformation across the end to end life-cycle cycle, leverage solution blueprints with proven practices and technology Most fail in execution - proven skills in network and IT are key 15
16 THE OPPORTUNITY IS FOR THOSE THAT ENGAGE! 16 Thank You
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