Telecommunications: Moving forward in uncertain times

Transcription

1 Telecommunications: Moving forward in uncertain times How Elix-IRR can help telecoms organisations overcome disruptive trends and improve returns on investment

2 About Elix-IRR Elix-IRR is a strategic advisory firm, offering bespoke, differentiated advice to plan and execute achievable transformation that creates real business value for our clients. We provide inspiration and drive at every step of the process, from defining business strategy, through operating model design and strategic sourcing, to the alignment of major change initiatives. Telecommunications In the telecommunications industry, profitability is under mounting pressure as a result of changing regulation and an increasingly competitive landscape. In this environment: Evolving customer needs and disruptive new entrants continue to put a strain on operators legacy investments and traditional revenue streams Disruption has resulted in legacy business models becoming increasingly ineffective Incremental change will not deliver the required strategies to support effective growth and improved efficiency whilst enhancing the customer experience An effective operating model is necessary to provide the customer with a sustainable product or service whilst enabling the required returns on investment. Elix-IRR Capability Typical Questions Inspiring, Relevant and Real Advice Elix-IRR s telecommunications practice helps clients execute on their strategic objectives by blending knowledge of the industry with deep functional skills and transformation experience. Our independence from technology suppliers and a delivery model of high impact, smaller teams means that advice is truly objective and without any hidden agendas. Our team all have high calibre backgrounds with experience from leading consultancies and global organisations. What differentiates Elix-IRR is our approach to providing forward thinking actionable advice. Our work is not just about delivering projects, but about creating tangible business outcomes something at the heart of Elix-IRR s values. Our team s telecoms experience includes Strategy Should I consolidate my network with a competitor? Transformation Change Execution Having outsourced my network infrastructure, what should my operating model now look like? What capabilities do I need to sell enterprise solutions rather than products to retail? How do I implement my new operating model to efficiently capture new revenue streams?

3 Addressing key market challenges Disruptive trends, business response and how we can help With the telecommunications industry experiencing major change driven by disruptive trends, there is an increasing need for operators to revisit their business models to stay competitive. We have extensive experience drawing on cross-industry expertise and proven methodologies to help clients understand the impact of these trends to improve revenues and reduce costs. Changing Regulatory Environment Exponential increase in demand for bandwidth Shortening lifecycle of capexintensive infrastructure (e.g. 2G-3G-4G) Eroding revenues and margins in established markets OTT* and disruptive technologies (e.g. Skype and cloud computing) COST REVENUE Exploring network sharing, outsourcing, joint ventures and other radical cost reduction measures Moving into adjacent markets and services such as M-health and M-payments and developing enterprise solutions What does my new organisation need to look like? Fundamental changes in the business model require a new operating model What sourcing approach should I follow? Many telcos are outsourcing parts of their operations, sourcing and integrating modular components How and what do I sell to whom? Telcos are moving to transformational selling to enterprises as traditional retail revenues dry up Target Operating Model Sourcing Advisory Go-To-Market Advisory What capabilities, service models and governance frameworks are needed to enable growth whilst controlling costs? How do you improve performance by selecting the right partner and ensure ongoing value from 3 rd parties? How do you increase revenue through transformational selling, and what different capabilities are required? *OTT Over The Top service providers 3 Page

4 How Elix-IRR can help Our Target Operating Model capability Fundamental changes in the structure of operators, such as the outsourcing of transmission networks, means that radical change to the operating model is required. Elix-IRR is recognised as an industry expert for Target Operating Model (TOM) design with a tried and tested eight-step methodology that comprises the following: Our Eight-Step Target Operating Model Methodology Business Strategy Alignment Capability Service Architecture Management design Framework Location Strategy Business Case Organisation Design & Governance Sourcing Strategy Execution Plan Business Strategy Alignment ensures that the TOM is aligned with leadership s strategy for the business 2. Capability Architecture Design agree definitions, map functions & capability, and identify the best TOM design options 3. Service Management Framework design the best way to manage supply and demand with the customer (external and internal) 4. Location Strategy determine the optimum location for delivery of services, in-country, central, or off-shore 5. Business Case understand the costs, benefits timescales and risks associated with the operating model 6. Organisation Design & Governance design the organisation structure, roles and governance structure 7. Sourcing Strategy determine the optimum strategy for each capability (in-house, captive or outsourced) 8. Execution Plan how to implement and communicate changes required to deliver the TOM A sample of our experience and credentials Operating Model Design & Implementation Roadmap Defined operating models for African Operations, IT, Facilities, Finance, HR and Marketing & Communication organisations Defined transformation roadmaps to efficiently deliver the change Operating Model Design Defined TOM for global operations for Finance, HR and Supply Chain across 18 operating companies globally Defined a clear design and plan in conjunction with the systems integrator to ensure efficient implementation of a single ERP and realisation of an aggressive business case Service Delivery Model Designed and implemented a TOM and supporting roadmap for the IT Service organisation in order to support reduced cost targets and increase flexibility Our team s TOM experience also includes: 4 Page

5 How Elix-IRR can help Our sourcing advisory capability Operators are increasingly reliant on third party services, meaning that selecting the right partner to support strategy execution is ever more critical. Elix-IRR has deep experience working collaboratively with clients and third parties to increase the value derived from sourcing, shared services and third party relationships by changing the focus on price, process and terms to an integrated strategy emphasising value. Our unique Collaborative Solutioning Sourcing Methodology 1. Sourcing Feedback to Partners Engage suppliers Data collection Briefing pack High level requirements Short list suppliers Engage key suppliers Partner Presentation Collaborative Workshops Client Evaluation Form Review Evaluation Select and Mobilise Best and Final Offer Due diligence 2. Contracting Set up contracting framework to support ongoing value potential using iterative approach to development embed flexibility and ongoing performance improvement. Complete contracting activities. 3. Managing the Change Organisation baseline, TOM design, retained organisation design, transition preparation and planning A sample of our experience and credentials Major UK Retailer Application Development Contract review Evaluated vendor performance against strategic objectives Improved vendor management through definition of performance metrics and implementation of a Code of Conduct aligned to strategy Global Operations Utility Design and Development Developed strategy to form a Joint Venture with a service provider to realise savings Built out a banking BPO capability to create asset value and address the social agenda of creating employment Technology Outsourcing Programme Collaborative workshop-driven approach with client and potential providers to select a partner to deliver a complex set of transformational IT services Contract established to delivered a step change improvement in multi-channel functionality Our team s sourcing experience also includes: 5 Page

6 How Elix-IRR can help Our go-to-market advisory capability Typically telcos have excelled at selling simple products to a retail market. Commoditisation, competition and disruptive trends means that this needs to change. Elix-IRR s team have unparalleled experience of enterprise selling and sales capability development and have helped businesses deliver tangible value by identifying opportunities to develop and sell client-driven solutions to the organisation s customers. Our Telco Go-To-Market Methodology How do you build a client-centric solution? What capabilities do you require to do this? Business Issues Client Need 1 2 Understand the core issues faced by client Gather service and product requirements from the client clearly identifying the ultimate recipient Value Proposition Development Client Proposition 3 4 Client-facing managers require deep industry knowledge and an intimate understanding of their client to develop relevant value-added solutions Develop unique service and financial wrappers to meet the specific client needs Sales and Client Management Modular Solutions Technical Components 5 6 Modular, repeatable client propositions are created by integrating standard services and components Shrink-wrapped services and product components, either proprietary or third party minimise development Delivery and Support A sample of our experience and credentials Development of enterprise offer Defined end-to-end CRM framework, set-up sales processes, service and marketing capabilities Established decision making processes, escalation procedures & governance structures to support the client offerings Up-skilled staff and trained executives to manage approvals Value Proposition / Product Development Provided market sizing and opportunity potential for new product offerings Developed go-to-market strategy and value proposition for new services Unparalleled transformational selling experience Elix-IRR s senior team have been responsible for the design, contracting, and implementation of multi-billion dollar transformational deals across all industry verticals Our team s go-to-market experience also includes: 6 Page

7 What Elix-IRR are like to work with Delivering beyond our clients expectations Our clients have told us that we have consistently delivered excellent outcomes, often exceeding their expectations: Target Operating Model Design Sourcing Advisory Go-To-Market Advisory Elix-IRR defined a comprehensive and effective target operating model for our systems department. Their drive and commitment ensured that it was completed at pace and with the full buy in of my leadership team. They were a pleasure to work with and I would have no hesitation in working with the team again. Group CIO Since engaging Elix-IRR I have been greatly impressed with the passion and dedication they have shown in delivering a standard of work I have not come across before. They are laser-focussed in adding value to my company, constantly looking at ways to improve not just bottom-line performance but also improvements in revenue. Elix-IRR are not just giving us theoretical advice they are working with us to implement our strategies. Group CEO, Germany We required a team to assess and critique the goto-market strategy of our post-trade business. We selected Elix-IRR due to the deep industry experience, contacts and consultancy skills that they offered. Elix-IRR delivered high quality, well organised workshops and an insightful report that we have since used internally. I would highly recommend Elix-IRR to anyone looking for consultants that truly combine industry experience with analytical capability. Managing Director, UK, Ireland and Nordics Elix-IRR s focus on quality outcomes for our clients has resulted in a number of industry awards: Contact us: For further details on how Elix-IRR can help please contact Russell Smith: russell.smith@elix-irr.com Russell Smith Partner & Telecoms Lead 7 Page

8 About Elix-IRR: Elix-IRR is a strategic advisory firm, offering bespoke, differentiated advice to plan and execute achievable transformation that creates demonstrable business value. We provide inspiration and drive at every step of the process, from defining business strategy, through operating model design and strategic sourcing, to the alignment of major change initiatives. Our team is comprised of senior professionals from top-tier consulting and services firms, as well as experienced practitioners from industry. We provide insightful, practical and pragmatic advice that leads to real results. Elix-IRR Partners LLP Level 3, 20 Abchurch Lane London EC4N 7BB w w w.elix-irr.com