普华永道—中移动移动通信行业的分析.ppt

AnIntegratedApproachtoBilling CallCenterandCustomerRelationshipManagementADiscussionDocumentAugust31 2000 2 Agenda ContextKeyissuesforChinaMobileTheCommunicationsEnterpriseSolutionArchitecture CESA CustomerRelationshipManagement CRM AboutPricewaterhouseCoopers 3 Context ChinaMobilefacinggrowingcompetitionfrombothUnicomandChinaTelecomCMCC sbillingandITinfrastructureareinadequatetosustaincompetitiveadvantageLargescaleandrapidITinfrastructuredevelopmentisrequiredCMCChasrequestedPricewaterhouseCoopers assistanceinbuildingaworldclassITinfrastructureWearetheundisputedleadersinthisareaworldwide andhaveuniquedeliverycapabilitiesinChina 4 KeyIssuesforChinaMobile KeyTrendsinMobileTelecoms 5 AverageRevenuePerSubscriberisdeclining keepingEBITDAmarginsflat Thevalueofmobilevoiceserviceshaspeaked MuchofthevaluegrowthintheUSisnowsubstitutive Mobilevoiceismaturing ARPU Penetration Soneraisre brandedTelecomFinlandMobile 6 Itisthoughtthatdataserviceswillultimatelyfillthis valuegap withmobiledevicesbecomingtheECommerce toolofchoice formostconsumers IntheUS mobilevaluationsgenerallyexceedcashgenerationbyasignificantmargin VoiceServices Other 70 100 MobileValue FMC Substitution Data Broadband 7 Investorsbelievethattheintroductionofmobiledatatechnologieswillcreatesignificantnewopportunities Asia Japan HongKong Taiwan andSingapore portendtobeleadersintheintroductionofmobiledataapplications Data9 6 14 5kbps SMS HSCSD GPRS115 2kbps EDGE WCDMA384kbps 2Mbps Data9 6 SMS CDPD19 2kbps CDPD GPRS57 6 115 2kbps 136 115 2 384kbps WCDMA384kbps 3Mbps InformationBroadcast Weather banking news stocks Filetransfer download Infoaccess Intranetaccess WWWaccess always on line MobileISP imagetransfer Infoaccess Intranetaccess realtimeapps interactivesessions 1998 1999 2000 2000 01 2001 02 Wirelessmultimedia voice video multimediaapplications M commerce 2002 Data28 8kbps SMS WCDMA384kbps 3Mbps 8 ProjectionsofWAP CellularSubs andInternetSubsGrowth 200 000 000 400 000 000 600 000 000 800 000 000 1 000 000 000 1 200 000 000 1 400 000 000 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 ProjectedCellularSubscribers ProjectedPC sConnectedtotheInternet Dataquest10 98 ProjectedWAPHandsets ManybelievethatInternetaccesswillmovetothe handset 9 Mobiledatawillenablemyriadnewserviceopportunities Consumer Business Other InformationServicesEntertainmentGamesBankingE CommerceE mailVideotelephonyPersonalnavigationInternetaccess DatabasesearchCorporatedatabasesEmailFiletransferIntranetaccessInternetaccessVehiclenavigationVideotelephony Specialistproducts TelemetryMachinemonitoringNavigation logisticsproductsAlternativeproducts ReturnchannelsforbroadcasttechnologiesWirelesshomes 10 Mobiledatawillcreateanewvaluechainformobileoperators Thecombinationofmultipleservicesandsegmentswillleadtothedevelopmentofacomplexnewvaluechainthatcombinescontent transportandsolutions Activities Customer TraditionalMobileValueChain NetworkManagement ServiceProvision NetworkplanningNetworkconstructionNetworkoperation SalesandmarketingBillingCustomercare Activities Customer Content Production distributionandaggregationofcontentEditors Magazines On Line andPortals CoreandaccesstransmissionofdataInternetbackboneproviders Accessproviders e g GSMandUMTS Transport Solutions HardwareandsoftwaresolutionsenablingtheproductstobeusedSmartphones PDAsandInternetbrowsers CorporateIntranetsoftware Examples FutureMobileValueChain 11 transportandaccesswillbecome lowvalue commodities Intheconsumermarket asthenetworkbecomesunbundled valuecreationwillmigratetoeithercontentorsolutions Consumers CONTENT SERVICECREATION INTEGRATION MOBILETERMINALS TRANSPORT ValueAddedServiceProvider ACCESS Transport Solutions Content Operator Media Portals owninganetworkwillnotbeessentialforparticipationinthemobileconsumermarket 12 Inthecorporatemarket mobileoperatorsmaylosedirectcustomeraccess Solutionprovidersarepoisedtocaptureamajorityofthevalue IT FixedTelecoms MobileTelecoms Corporate Today Corporate MobileTelecoms Corporate IT SolutionProviders FixedTelecoms TheFuture 13 MNCLargeNationalSMEPersonalHousehold Content Transport Solutions Mostexistingmobileoperatorsarenotwell positionedexceptinthetraditionalpersonalsegment PoorlyPositioned ModeratelyPositioned Well Positioned CustomerSegments 14 Personal Corporate GSM TDMA CDMA GSMGPRSDECTOther UMTSEDGEGMPCS CountryXCountryY Thismayleadtoa mobilenetworkbreak up This breakup isconsistentwithwhathashappenedinfixedlineservices 15 KeyNear TermSuccessFactors KeyIssuesforChinaMobile 16 Identify develop andretaintargetcustomersthroughon goingsegmentationandanalysisSecureexistingrevenuesthroughrevenueintegritymeasuresBecomecustomercentric andbegintodevelopaCustomerManagementSystemSwitchfixedtovariablecoststhroughoutsourcingOptimisethebusinessportfoliotocaptureandinvestinnewrevenuesstreams InPwC sexperience 5strategicimperativesarecommontodevelopingmobileoperators 17 1 SegmenttheCustomerBase Understandingthetrueprofitabilityofcustomersisessentialtogetfullvaluefromthecurrentcustomerbase TypicalCustomerProfitabilityDistribution Segmentationvariables customertypeneeds usagepatternsservicecomplexitylocationcostsvsrevenues Unprofitable MarginallyProfitable HighlyProfitable Promotions productdevelopment marketing pricing salesandsupportshouldfocusonfinding acquiring retainingandenhancingprofitablecustomersegments ofCustomers 18 2 CreateaCustomer CentredOrganisation Tocreate winning servicesforcustomers operatorsincreasinglybuildCustomerManagement CMS Systemstocollect analyze andusecustomerinformationandperformincreasinglysophisticatedsegmentationexercises TransactionData DatabaseMarketingSystem CustomerAcquisition DirectMarketing CustomerManagement Telephone PersonalComputer Mail Internet Planning CreateMID Brokers branches dealers TouchPoints AnalysisAreas FinancialManagement OtherSystems Demographics CommunicationsHistory Psychographics DataSources 19 2 CreatingaCustomerCenteredOrganisation 11 38 12 16 11 23 5 24 3 07 12 57 13 48 12 67 5 9 3 43 13 89 14 94 14 3 6 64 3 83 15 35 16 56 16 12 7 48 4 29 16 96 18 36 18 19 0 84 4 79 0 10 20 30 40 50 60 1998 1999 2000 2001 2002 MarketManagement OrderManagement NetworkManagement Source TheYankeeGroup 1998 CustomerManagement BusinessManagement Bn SpendingbytelecomoperatorsonCustomerManagementSystemsisapproachingUS 20billionannually 20 2 CreatingaCustomer CenteredOrganisation Audit CustomerOps Corporate LargeAccts Customer Operations Consumer andSME Customer Operations NewMedia Customer Operations Internet COO Customer Operations Engineering Network Construction Network Operations Maintenance Chief Information Officer IT Chief Technical Officer Finance Procurement Admin Legal Investor Relations Revenue Assurance RealEstate Chief Financial Officer Strategic Planning Human Resources Corporate Communications CarrierRelations Reg Affairs Risk Management ChiefExecutiveOfficer BoardofDirectors Theorganisationneedstobestructuredaroundkeycustomerandproductgroups withaccountabilitiesacrossallcustomerfacingfunctions 21 CurrentRevenues LostRevenues LostcallrecordsPoortestphasecontrolDelayedbillingInaccuraterating discountingInadequatecreditcontrolExcessiveageddebtIneffectivefraudprevention Actiontoenhancerevenueintegritywillflowthroughimmediatelytothebottomline 3 Secureexistingrevenues Manymobilebusinessesarelosingrevenuesalreadyearnedbecauseofflawsintheirsystemsandprocesses 22 ExchangeFilesoverwrittenbeforecollectionFileslost incompleteorcorruptedInadequateinformationforbillingValiddatarejectedDatanottransferredonatimelybasis Revenueleakagepointscanoccuranywhereintheendtoendrevenuelifecycleandcancausepoorqualityofcustomerservice lossofreputation etc 3 Secureexistingrevenues Billingandpricingrevenueleakageswillcauseevengreaterproblemswiththemobiledatasincebillingandpricingwillbecomemorecomplex Typicalrevenueleakageproblems BillingandPricingIncorrectpricesset upInconsistentpricesondifferentpricingenginesIncorrect incompletecustomerdataIncorrectdiscountinformationLossofcallrecords 23 3 Secureallexistingrevenues USCellularOperator USIXC AsianCellularOperator ISSUE Inaccurateinterconnectioncharges Incorrectratingtablesinbillingsystem Inadequaterevenueintegrity SOLUTION Processreviewandchanges Billingaccuracyassessment Diagnosticreview RESULT 2millionannualisedsavings 7millionannualisedunderbillings Revenueintegrityframeworkinplace givingenhancedshareholdervalue improvedcustomerserviceandbetterfocusonhighriskareas Examples Revenuediagnostictoolscanidentifyleakages Stemmingrevenueleakagescanadd5 10 toannualrevenuesatminimaladditionalcost 24 4 Switchfixedtovariablecosts Outsourcing sub contracting andco operationwithotherorganisationscanreplacefixedcostswithmoreflexiblevariablecosts Activitiesthatcanbeoutsourcedinclude MarketresearchAdvertisingandpromotionSaleschannelmanagementITmanagementPayrollprocessingFacilitiesmanagementNetworkdesignandconstructionFleetmanagement Fixedcosts Break even ContributionMargin 25 1 Disposeofnon core valuedestroying businesses 2 Reorganisecorebusiness delayer simplifyandfocus 3 Obtaingreatervaluefromunder utilisednon coreassets e g land 4 Outsourcenon strategicprocessesandactivities FourStepStrategicReview Illustrative Valuecreatingoperations Valuedestroyingoperations Currentportfoliovalue Potentialportfoliovalue ve ve 5 Optimisethebusinessportfolio Managementshouldseektocontinuallyfine tunethebusinessportfolioandreinvesttocreatenewvalue 26 AssumptionsandNextSteps KeyIssuesforChinaMobile 27 LookingForward PwChasthefollowingassumptionsaboutCMCC sfutureoperation CMCC sbusinesswillgetincreasinglycomplexasaresultofgrowth competition technologicalchange andmarketchangeSignificantperformanceimprovementwillberequiredtosustainshareholdervalueCompetencyinnewservicecreation mobiledata andcustomermanagementwillberequiredforsustainable long termleadershipStrongpartnershipsandallianceswillbecriticaltosuccess 28 CESA AnEnterprise WideSolutionfromPwCForCommunicationsBusinessGrowth 29 ValueDriversforaTelecomCompany TheSevenPrincipalValueDrivers OperatingProfitMargin RevenueGrowth WorkingCapital CompetitiveAdvantagePeriod CashTaxPaid CapitalExpenditure CostofCapital 30 CriticalIssuesthatAffecttheValueDrivers Timetomarket Efficient technicallyadvancednetwork Attracting KeepingProfitableCustomer BrandDifferentiation ChannelDistribution Financing RevenueGrowthOperatingProfitMarginCashTaxPaidWorkingCapitalCapitalExpenditureCostofCapitalCompetitiveAdvantagePeriod 31 OurResponsetotheTop6CriticalIssues Response ProvenOrganisationalandBusinessProcessTemplatesPre integratedSystemSolutionProvenImplementationProcessPre EvaluatedBest in ClassTechnology VendorsandApplicationsInvestmentGearedtoBusinessGrowthIntegratedCustomerCareFocustoMinimiseChurnandMaximiseRevenueReturnScaleableLow RiskSolutionLeadingEdgebutBasedonProvenTechnologyIntegratedPerformanceMeasurementFramework AOne Stop ShopCommunicationsEnterpriseSolution CriticalIssues Timetomarket Efficient technicallyadvancednetwork Attracting KeepingProfitableCustomers BrandDifferentiation Financing ChannelDistribution RevenueGrowthOperatingProfitMarginCashTaxPaidWorkingCapitalCapitalExpenditureCostofCapitalCompetitiveAdvantagePeriod 32 WhichResponsesResolveWhichCriticalIssues TimetoMarketAttractingandKeepingProfitableCustomersFinancingEfficient TechnicallyAdvancedNetworkBrandDifferentiationChannelDistribution ProvenOrganisationalandBusinessProcessTemplatesPre integratedSystemSolutionProvenImplementationProcessBest in ClassSolutionsInvestmentGearedtoBusinessGrowthIntegratedCustomerCareScaleableLow RiskSolutionLeadingEdgebutProvenTechnologyIntegratedPerformanceMeasurement CriticalIssues Responses 33 TypicalCommunicationsBusinessDevelopmentPhases PhasePhase1 LaunchSingleSolutionProcuredRapidDeploymentRequiredPhase2 GrowthSystemCapacityandPerformanceConstraintsDiverseApplicationsImplementedPhase3 ReplacementSystemBecomesUneconomictoContinuetoScaleandEnhanceReplacementSystemsSelectedandCommissionedPhase4 IntegrationLarge scaleIntegrationandRe EngineeringRequiredtodeliverBusinessSynergyPhase5 Support4 IntegrationUpgrades ongoing maintenance in house Issue RaiseCapital Profitpersubscriber CashFlow Returnoninvestment Differentiation 34 TheCESASolutionandItsImpactontheBusinessDevelopmentPhases CESADevelopmentPhasesPhase1 LaunchIntegratedsolutionprocuredRapiddeploymentPhase2 GrowthUtilizeadditionalfeaturesofsystemScalehardwareAdditionallicensesprocuredMoresophisticatedperformancemeasurementdeployedPhase3 SupportUpgrades on goingmaintenancesupportedbyvendorpartners Phase1 Phase2 Phase3 Phase4 TypicalInvestment CESAInvestment Phase5 TypicalDevelopmentPhasesPhase1 LaunchSingleSolutionProcuredRapidDeploymentRequiredPhase2 GrowthSystemCapacityandPerformanceConstraintsDiverseApplicationsImplementedPhase3 ReplacementSystemBecomesUneconomictoContinuetoScaleandEnhanceReplacementSystemsSelectedandCommissionedPhase4 IntegrationLarge scaleIntegrationandRe EngineeringRequiredtodeliverBusinessSynergyPhase5 SupportUpgrades ongoingmaintenance in house 35 ACompleteEnterpriseArchitectureforCommunicationsBusinesses ReferenceDataModel Best in ClassProductSet Data Warehouse DataModel Current Systems Pre IntegratedforQuickStart Interface Definition OrganizationalBuildandBusinessProcessModel ImplementationService IntegratedPerformanceMeasurementFramework Pre integratedSystemSolution 36 OrganizationalBuildandBusinessProcessModel InScope CustomerValueChain ProductManagement Marketing Sales ServiceDelivery ServiceAssurance Billing ContactManagement MI PM MA SS SD SA BI CC NetworkManagementValueChain PlanNetwork DesignNetwork Construct ConfigureNetwork ServiceGeneration TestNetwork ManagetheNetwork ManageNetworkPerformance PN DN CN SG TN MN MP ManageHR ManageFinance Plan GovernBusiness ManageSupplyChain BusinessOperationsProcess MaintainExternalRelationships P E MS MF HR DeployandManageIS Outsourcing D 37 IntegratedPerformanceMeasurementFramework CustomerValuechain MarketIdentification ProductManagement Marketing Sales ServiceDelivery ServiceAssurance Billing CustomerContactManagement TurnovergrowthProfitMarginTaxRateWorkingCapitalFixedRatesCostofCapitalGrowthduration Costperlineinstalled Costperlineserviced Interconnectioncost Overhead employee Cross subsidymobilehandsets Fixedlinepenetration Cellularcoverage Digitalization ATMprojects Subscriber Basestation GDPgrowth MarketGrowth Marketshare Tariffplans Regulation Churnrate ValueDrivers Solutiontocontainsetofpre developedvaluereports 38 ApplicationsimplementingtheCustomerValueChainintheDemonstration MarketIdentification ProductManagement Marketing Sales ServiceDelivery ServiceAssurance Billing CustomerContactManagement MI PM MA SS SD SA BI CC ApplicationIntegration VantiveGenevaOracleApps 11 39 SystemsImpactontheValueChain Mediationdevice TroubleTicketing WorkFlowManagement OrderProcessing AutomaticCallDistribution CTI UsageRating AccountsReceivable network Inventory ServiceProvision WorkForceManagement ProspectManagement ServiceLevelAgreement DataWarehouse Customers Inventory Products IntegratedBilling TroubleTicketing VRU DataW hse customerseg productseg DataW hse whatifs customeranal productanal unitanal DataW hse customerseg productseg DataW hseAccess NetworkManagement SupportSystems SalesForceAutomation AnIntegrationArchitectureandPreferredVendorProductSet SingleCSRuserinterfaceSinglepointoforderentryUseworkflowengine Vantive tosupport CSRprocessSingletechnologyplatformUtilizestandardAPIsBuiltupongeneric reusableintegrationwhereachievable IntegratedDesignPrinciples 41 CoreApplicationArchitectureofCESA InternetAccess PaperAccess VoiceAccess CallCentre CUSTOMERS CustomerManagement SupportApplications Billing DataWarehouse Procurement Finance AssetManagement ProjectAccounting Mngt HR ABCAnalysis CustomerAnalysis BusinessUnitAnalysis ServiceCentre MIS Marketing WORK FLOW SalesandMarketing FieldService CustomerContact CallRating InvoiceCalculation InvoiceRendering CommonUserInterface DataCollector NetworkManagementCentre FraudManagement DataCollector CDRMediation ServiceProvisioning 42 AProvenImplementationApproach Design Build Integrate Implement TechnologyInfrastructure ProjectManagementMethodology ApplicationsImplementation HProjectManagement AProjectScopingandPlanning BEstablishTechnicalStrategyandDevelopmentStructure CDataPlanning ISupportDevelopmentandEstablishProductionInfrastructure QMaintainTechnicalInfrastructureandITReadiness OCutoverPlanning RSystemIntegrationTesting TExecuteCutoverandRollout UImplementationSupportandRefinement KCustomCodeDesignandBuild JDataConversionManagement GTransitionManagement FOrganizationalDynamicsandImpactAssessment ETeamTraining NOrganization Faci