Management of Innovations Case Study - Bharti Airtel
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a case study on Bharti Airtel, focusing on Management of Innocations
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Management of Innovations Case Study - Bharti Airtel
- 1. Management of Innovations Case Study – Bharti Airtel Presented by: Ankit Jain #109 Siddhesh Trivedi #121 Zakir Farooqui #127 Balagopal P #301 Ishan Parekh #315 Dhruv Kalia #324
- 2. Go-ahead to the CDMA technology INDIA Private players were allowed in Value Added Services National Telecom Policy (NTP) was formulated 1992 1994 1997 Independent regulator, TRAI, was established NTP-99 led to migration from high- cost fixed license fee to low-cost revenue sharing regime 1999 2000 2002 BSNL was established by DoT ILD services was opened to competition Internet telephony initiated Reduction of licence fees 2003 Calling Party Pays (CPP) was implemented Unified Access Licensing (UASL) regime was introduced Reference Interconnect order was issued 2004 Intra-circle merger guidelines were established Broadband policy 2004 was formulated— targeting 20 million subscribers by 2010 2005 FDI limit was increased from 49 to 74 percent Attempted to boost Rural telephony 2006 Number portability was proposed (pending) Decision on 3G services (awaited) 2007 Department of Telecommunication (DoT) is the main body formulating laws and various regulations for the Indian telecom industry. Evolution of Telecom In India 2
- 3. Changing Face of Indian Mobile Consumer 3
- 4. BHARTI AIRTEL • India the most talkative nation after America. • Bharti Airtel, today is a behemoth with close to 25% share of country’s mobile telecom market. • Serves 75 million subscribers base. • Most profitable telecom network in the country with a revenue more than Rs.9,000 crore. 4
- 5. AMOU & ARPU 5 838 461 303 88Russia China India USA 0 2 4 6 8 10 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 ARPU(USDpermonth) GSM CDMA Minutes of Usage per Month – Mobile Services ARPU* in India – Mobile Services Despite a low teledensity of approximately 19 percent, India has the second highest minutes of usage per month. This offers huge growth opportunity to telecom companies. The declining ARPU implies that India Inc. is tapping a large market at the bottom of the pyramid by reducing tariffs; thereby, enhancing affordability.
- 6. Declining Tariff – Rising Revenue 6
- 7. Future Strategies • Translate its expertise in Indian markets to other emerging economies. This could call for acquisitions globally. • Technology leadership is a must. • Indian market inspite of being the worlds largest is still not matured. Opportunities abound in the hinterland which must be exploited. 7
- 8. Airtel Innovation Fund • Corpus of $44 million • Fund open to early stage ventures that are registered in India • Primary sectors: m-commerce, value added services, IP-based technology, lifestyle & location –based services. http://www.airtel.in/applications/xm/aif/AIF_form.jsp
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- 10. CRM Solution •Customer Segmentation •Achievers •Funsters •Productivity-Enhancer •Social Callers 10
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- 15. Zing Innovations Lab • Open developer app community • Development & testing facility for developers • Demonstration facility for mobile developers
- 16. Innovation 16
- 18. mChek • A mobile payment platform • Can be used for: Mobile recharge & bill payments, mobile bill, money transfer, over-the-counter (OTC) payments and retailer “kiosk” services.
- 20. Operational Improvement Business Challenge Bharti Airtel needed to maximize its future flexibility and growth potential by adopting a business-driven framework for integration, allowing it to implement and deliver new services rapidly. With competition intensifying in the Indian telecom services market, Bharti Airtel needed to find a way to focus on developing new services that could set it apart from the competition and strengthen its customer relationships. 20
- 30. Solution Bharti Airtel entered into a comprehensive 10-year agree-ment with IBM to transform its processes and take on the management of its IT infrastructure. Its new platform provides a standardized framework for Bharti Airtel to integrate its channels and customer-facing processes– enabling a more seamless customer experience, higher customer satisfaction and more profitable growth. Operational Improvement 30
- 31. Thank You 31
Notes de l'éditeur
- CHANGING FACE OF INDIAN MOBILE CONSUMER
- In India consumer talking over 500 minutes per month which is only second to USA 750 Minutes.
- First we have to define what customer wants/ what are the requirements of customers. Company have to decide which segment of customer to target, what are the process req and which particular area to target.Measure: maesure the different req like tariff for different seg. Time frame for customer complaint redressal. Here KPImetrics is imp indicates critical process to be adressesd.Analuse:in analysis part, companies find out what customer expected and what perceives abt.offerings.Then they go for root based cause analysis- from where problem arise and how to solve it.Design: based on earlier analysis, the whole process is redesigned and op ARE MODIFIED AND ULIMATELYSCORECARD IS CREATED ON BASIS OF PERFORMANCE PANEL.VALIDATE: TRAINING TO STAFF FOR NEW PROCESSIMPLEMENTATIONCONTINUOS IMP.PROGRAMME.
- Achievers-Consisting of professionals and executives who want quick and efficient service.Funsters- young people who want fun and entertainment, mobile is a gadget for them.Productivity-Enhancer- like traders, plumbersm electricians for whom mobile is aproductive tool.Social Callers- consiting of young girls/ wives who make calls to stay in touch with their loved one/ friends and at times to flaunt it as a status symbol
- Technology EvaluationAnalyse current market situationInstruments and equipmentErcission (hardware) and IBM (software)Gap analysisProblem arised in accessing AIRTEL from other networks.Routing problem with BSNL NETWORK.
- Internal restructuring and reengineeringAnalyse issue surrounding scalability Proper training regarding information of services.Targeted institutional customers. Business growthCompany heavily expanded in rural area’s .Transmission in remote areas.Increased towers capacity.Market and regularity environments23 circles available.Formation of cartalisation.
- STEP3.Pilot launchedFeedback received with problems and suggestion After reengineering user validation was sought All these were rolled into Airtel Roadmap for CRM ( using ORACLE software in CRM) and pick up of call in call centre in 2-3 rings.
- Intrinsic Attributes:Product: SIM card cost and available calling costService: no. of service outlets and handling of customer complaints.Activities: easy recharge options.Extrinsic attributes:Word of mouth- telling or recommending to friends or relatives etc.Objective Price- what competitiors provideWhat are different tariff plans available, free sms, rooming rates, STD and local call rates.Perceived quality:On the basics of intrinsic and extrinsic qualities consumer perceived service of particular service provider.Perceived cost:Monetary cost + other cost of acquisitionMonetary cost: cost of purchasing SIM, recharge etc.Other cost includes top up cards, rooming cards etc.Perceived Benefits:Functional benefits: speed, accuracy in callingEmotional : rel. to loyalty, customer feels attached to brand or not.Perceived sacrifice: considering perceived benefits and perceived cost consumer decide what to sacrifice.Perceived value: On basis of perceived benefits and perceived sacrifice, consumer perceived value which ultimately affects purchase behavior.
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