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“The Strategic use of Information Systems in the Telecommunication Sector “
Topic:
“Strategic Use of Information Systems in the Telecommunication
Sector”A Case Study of Mauritius Telecom
By
BIS 3324 – STRATEGIC MANAGEMENT AND INFORMATION SYSTEMS 1
“The Strategic use of Information Systems in the Telecommunication Sector “
Tega Enai Etatuvie
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“The Strategic use of Information Systems in the Telecommunication Sector “
Table of ContentsIntroduction 5
Overview of Research Topic 5
Background of Research Topic 5
Research Questions and Limitations……………..………………………………………………..7
Overview of Case Company - Mauritius Telecom 8
Company Profile 8
Mission, Core Values and Goals 8-9
Business Structure 9
Shareholding Structure 9-10
Services 10
Market share and Financial Data 11-13
The Organizational Structure 14
Mauritius Telecom Organizational Structure 15
The Strategic Managers at Mauritius Telecom 15
Their Roles in the organization 15-17
Strategic Decisions at Mauritius Telecom …..…..………………………………………………17
Strategic Level …………………………………………………………………..………………17
Tactical Level ………………………………..……………………….…………………………17
Operational Level……………..…………………………………………………………………17
The Business Environment of Mauritius Telecom 18
Strategic Analysis 18
Value Chain of Mauritius Telecom 18-19
Porter’s Five Forces Model 19-22
SWOT Analysis of Mauritius Telecom 22-23
Internal Environmental Analysis 24
Strengths and Weaknesses 24-26
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External Environmental Analysis 26
Opportunities and Threats……. …………………………………………....………26-27
Information and Information systems in Mauritius Telecom 27
Role of information at Mauritius Telecom 27-28
Value of Information at Mauritius Telecom 28
Optimal structure of Information Delivery within Mauritius Telecom 28-30
Information Classification at Mauritius Telecom 30
Information Delivery at Mauritius Telecom 31
Tools for Information Delivery within and outside Mauritius Telecom 31-33
Strategic Use of Information Systems at Mauritius Telecom33-37
Competitors Analysis 37
About Emtel Ltd 37
Comparing Mauritius Telecom and Emtel Ltd 37
Competitive Advantage of Mauritius Telecom 37-38
Competitive Advantage of Emtel………………………….………………………………....38-39
Recommendations 39-40
Mauritius Telecom Business Strategy 40
Strategic Goals of Mauritius Telecom ……………………………………………………...…...40
Growth Strategy 40-41
Innovation Strategy 41-42
Enhanced Customer Experience ……………...………………………………...……42-43
Key Strategic Issue at Mauritius Telecom 43
Recommendations for Mauritius Telecom 43-44
Limitations and Conclusion 44
Limitations for this Research 45
Conclusion of this Research 45
References 46-47
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Appendix 48
Email Conversations 48-49
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Introduction
Overview of Research
With globalisation of markets, and the increased quantity and diversity of competition that occur as a
consequence, the traditional view of computer systems as a ‘back room’ supporting function is no longer
viable in companies wishing to survive and prosper. Rather, companies must look for ways of using
computerised systems to support the cooperate strategy and to gain competitive advantage over rivals.
(Fidler & Roberson, 1996)
In the past years, Information systems were presumed to be synonymous with corporate data processing
and used as some back-room operation in support of the organization’s day-to-day operations.
Nevertheless, due to the quantum leap of information provision, organizations have attempted to develop
information systems strategies which interrelates with their business strategies and collaboratively
supports their organizational missions. Modern organizations are increasingly seen as knowledge-based
enterprises in which proactive knowledge management is important for competitiveness (Holsapple et al,
2000). Information systems are systems that support or shape a business unit’s competitive strategy
(Callon, 1996 & Neumann, 1994).
Background of Research Topic
Every organization has goals and objectives they set to achieve. “Strategy is the direction and scope of an
organization over the long term, which achieves advantage in a changing environment through its
configuration of resources and competences with the aim of fulfilling stakeholder’s expectations”. (Gerry,
Kevan & Johnson 2010). An organization can attain success by adopting a strategic position which is
different from its competitive environment in order to sustain competitive advantage. More so, an
effectual strategy allows an organization to use its resources and capabilities to utilize opportunities and
minimize threat in the external environment. The process of implementing these strategies is strategic
management.
“Strategic Management is about analyzing the situation facing the firm and on the basis of this analysis
formulating a strategy and finally implementing that strategy” (Anthony 2011).
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Strategic management exceeds the development of a strategic plan. It is the establishment and execution
of the strategic plan and assessment and evaluation of the results. It involves organizations taking long-
term decisions and careful analysis to understand and assure its long-term survival in the competitive
environment.
With the increased quality and diversity of competition, the traditional view of information systems as a
‘back room’ supporting function is no longer viable in companies wishing to survive and prosper. Rather,
companies must look for ways of using information systems to support the cooperate strategy and to gain
competitive advantage over rivals. (Christine & Simon 1996)
Information is key to a successful strategic management. Therefore, information will be meaningful
insofar as it provides useful raw material for taking a specific decision. The process of reflecting on and
understanding information is what allows the message to have different meanings for different people.
This process also implies that the data analyzed, summarized or processed to produce messages will only
become information if its recipient understands its meaning. For data to be transformed into information,
there must be an awareness of what the person receiving the message will use it for, his or her training,
position in the organization and familiarity with the language and calculations used in the message
(Rafael & Carlos 2012).
An important area of focus in every company is customer care. Every organization pays much attention to
this and ensures that the customer’s needs are met. A company's most significant success factor is the
ability to deliver better customer value than the competitors do. By analyzing (McDougall et al., 1997)
the components of customer value, a company can estimate a customer's true profitability. Customer
perception of expected benefits consists of product and service attributes. Fredericks and Salter's
"customer value package" (1995) additionally includes company image relative to the competition. Good
customer value consists of product value, service value, and value-based pricing (Naumann, 1994).
The purpose of this coursework is to demonstrate the use information systems in customer relation
management using Mauritius Telecoms as a case study. It will also show how the implementation of
strategic management helps to gain a more comprehensive and reflective view in Mauritius Telecoms.
Also, a section will explain the use of customer relationship tools such as Customer Relationship
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Management (CRM) and Enterprise Resource Management (ERP). This will be analysed in-line with how
both tools are used for operations in Mauritius Telecoms.
Research Questions and Limitations
The main focus of this coursework is to find out the strategic use of Information and Information Systems
in an organization. The research questions are as following:
1. Recognize the role of a strategic manager in information delivery?
2. Recognize the role and value of information in the strategic environment?
3. Distinguish between the information requirements of the strategic managers and other levels and
functions of management
4. Determine the structure and content for information delivery to strategic managers?
The first question is to provide a clear understanding of roles of strategic managers and their strategic use
of information system, it elaborates on the support tools they use to carry out their strategic management
process and information flow within the managers. The second question will give a basic knowledge of
the importance and roles of information within the organization. The third question concentrates on the
different kinds of information required within the strategic managers and other managerial levels. The
forth question focuses on the structure and content of information delivered to the strategic managers.
Finally, the fifth question requires a justification of the research findings and recommendation of best
practices that will help develop the quality use of information system in the strategic environment.
Due to the abstractness of this topic, we decided to use Mauritius Telecom as the case study. In order to
achieve the research objectives, it is required to have a one on one interview with one of Mauritius
Telecom’s strategic manager. Our rationale for choosing Mauritius Telecom is their successful business
process strategy and their intensive use of information systems since it’s a telecommunication
organization.
The research focuses on the strategic use of information system of Mauritius Telecom though it cannot be
might not be applicable to different organizations. It only propounds a theoretical knowledge for any
organization who would want an effective implementation of strategic management.
Notwithstanding the limitations, this research is still a good case to study.
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Overview of case company
Company Profile
Mauritius Telecom (MT) is the leading telecommunications operator and service provider in Mauritius.
Incorporated in 1988 as Mauritius Telecommunication Services (MTS), it acquired the assets of Overseas
Telecommunications Services (OTS) in 1992 and became Mauritius Telecom, following a merger
between the former OTS and MTS Ltd. It is the primary provider of voice, mobile, Internet and data
communication services in Mauritius.
In November 2000, Mauritius Telecom entered into a strategic partnership with Orange (formerly France
Telecom) with a view to strengthening and securing its market share, pending the total deregulation of the
telecommunication sector in Mauritius. By combining the technological and global strength of Orange,
and the local and regional experience of Mauritius Telecom, the two companies have been able to offer
innovative and useful technologies to new markets. Mauritius Telecom is now reaching out to more
people - in business, industry and at home – in the region and beyond.
Over the last years, Mauritius Telecom has developed into one of the leading enterprises in Mauritius
with a consistent sound financial achievement and has helped to propel Mauritius into the information age
through constant upgrading of its networks. The Company has since enjoyed a phenomenal rate of
development and it is now one of the top enterprises in the country, with revenue of Rs8 billion in 2012.
Mission
To be a Premier World Class Infocom Services Provider
Values
Innovation and creativity
Professionalism
Quality
Competitiveness
Customer Service
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Goals
Provide access to the most modern telecommunications services possible at fair prices
Improve Mauritius’ position and competitive edge in global markets
Enhance the economic and social life of the nation
Business structure
The Group’s main activity is the provision of telecommunications and related services. Mauritius
Telecom provides fixed telecommunication services, products and related services. The main activities of
its subsidiaries, all wholly owned by Mauritius Telecom, are as follows:
• Cellplus Mobile Communications Ltd (Orange) provides mobile and ancillary telecommunication
products and services
• Telecom Plus Ltd offers internet and IT-enabled services
• Teleservices (Mauritius) Ltd is engaged in the publication of directories and media-planning services
• Call Services Ltd provides call-centre services which include directory enquiry and customer-
relationship management (CRM) services
• MT Properties Ltd offers property management and syndic services
• The Mauritius Telecom Foundation administers the Group’s corporate social responsibility (CSR)
activities and programmes
• MT International Ventures Ltd holds MT’s investments in other entities
• MT Services Ltd recruits employees for the Mauritius Telecom Group.
Shareholding Structure
The Government of Mauritius, the State Bank of Mauritius (through its wholly owned subsidiary SBM
NFC Investments Limited, formerly the SBM Investments Managers Ltd) and the National Pensions Fund
hold 59% of the shares in the company. 1% of Mauritius Telecom shares were sold to eligible employees
and pensioners in 2007 at a discounted rate under an employee share participation scheme. The remaining
40% are held by Orange, through its investment vehicle, RIMCOM.
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40.00%
33.45%
19.00%
6.55%
1.00%
Mauritius Telecom Shareholders
Orange (formerly France Telecom)Government of MauritiusSBM Investments Managers LtdNational Pensions FundEmployees of Mauritius Telecom
Source: Mauritius Telecom, Annual Report 2012
Services
Mauritius Telecom provides a full spectrum of voice and data services using fixed, mobile and internet
platforms which includes:
Internet Services
Mobile Broadband
Orange Money services
Clouds solutions
HD videoconferencing service
ICT services
IP based services
Virtual private networks
TV Services
Application services
Since the rebranding of all mobile and internet services in April 2008 to Orange, there has been a
quantum leap in providing customers with innovative services and experiences. Telecommunication
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services are becoming increasingly convergent and Mauritius Telecom makes every effort to respond to
new device and consumption trends in an increasingly competitive market.
Market Share
34%
54%
2%
Mauritius Telecommunication Market Share
Emtel Orange (MT)MTML
Source: Frost and Sullivan, 2009
Although the Mauritian mobile market is small in terms of population size, the market is one of the most
vibrant markets in sub Saharan Africa. In 2009, the mobile penetration rate stood at over 80 percent, one
of the highest penetration rates in the continent. There are 3 mobile operators namely Orange, Emtel and
MTML in Mauritius. Orange is the market leader, with almost 54% in 2009 while Emtel and MTML are
the challengers, with 44% and 2% respectively. The Mauritian mobile maturation is near-saturation,
which translates in the decline in voice revenues and subscriber growth. Therefore, mobile operators have
shifted focus on data services, to offset the decline in voice revenue levels.
Financial Highlights
Income Statement 201 201
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2
(Mi
llio
n
Rs)
1
(Mi
llio
n
Rs)
Operating Revenue 8,00
1
7,76
6
Profit before tax 2,56
7
2,55
0
Profit after tax 1,78
0
1,85
6
Earnings per share
(Rs)
9.37 9.77
Balance Sheet
Total Assets 15,8
05
16,0
28
Total liabilities 6,99
5
6,76
1
Debt interest
Bearing
- 36
Shareholders’
funds
8,81
1
9,26
7
Net Assets Value
per share (Rs)
4
6.37
4
8.78
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Source: Mauritius Telecom, Annual Report 2012
As illustrated in the table above, Mauritius Telecom has firmly established itself as one of the fastest-
growing and most innovative enterprises in the country with operating revenue of Rs8 billion and a profit
after tax of Rs1.7 billion for year 2012.
Operating revenue for the Group progressed by 3% during the year, exceeding for the first time the Rs8
billion mark. Group Profit from Operations was at Rs2.2 billion, decreased by 4.7% compared to previous
year. Profit before Tax increased by 0.7% over last year, to reach Rs2.6 billion.
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Marketing Communication
Product Development & Customer
Management
Sales & Distribution
Strategic Executive Committee
Chief Executive Office Deputy CEO/Chief Operating officer
Executive Head Network and Operating Systems Chief Financial Officer Executive Head Commercial
Board of Directors
Chief Executive officer Directors
Planning and business Division
Information system Development Division
Project Execution & Support Division
Internet/ IP DevelopmentDivision
Data Center & Support Division
Operations & Maintenance Division
Office Automation Support Unit
Bill Processing Unit
Customer Care Unit
OS/RDBMS Systems Maintenance unit
Network Maintenance & Support Unit
Internet System Operation Unit
Information System Support Unit
IT Support Unit
Senior Managers
Development Department Operational Department
Finance & Admin Department Marketing Department
Administration Division
Revenue Assurance Unit
Revenue Reconciliation &
Support Unit
Budget & Procurement Unit
Store Unit
Finance & Revenue Assurance Unit
“The Strategic use of Information Systems in the Telecommunication Sector “
Mauritius Telecom Organizational Structure
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From the diagram above, we can see that Mauritius Telecom being a large organization comprises of the
board of directors, a strategic executive committee which is made up of five members including the chief
executive officer. Each department has a senior officer that heads the coordination of their individual
operations. The CEO oversees all the groups’ performances via reports from the senior managers and in
turn reports to the board of directors.
The Strategic Managers at Mauritius Telecom
The role of a strategic manager is very crucial in strategy execution. The strategic manager decides and
implements strategies, they challenge and develop proposals on strategy, scrutinise the organization
performance and ensure their goals and objectives are been achieved. They also vote for the best
strategies to be adopted by the organization.
In Mauritius Telecom, a strategic team called the strategic executive committee is assigned to carry out
the strategy implementation. The strategic executive committee is a normative team dealing with
corporate and high-level strategies and ensuring their implementation. The executive committee consist of
five members who plays different roles in the management and decision making process. They Include:
The Chief Executive Officer
The Deputy Chief Executive and Chief Operating Officer
The Executive Head Networks and Information
The Chief Financial Officer
The Executive Head Commercial
Their Roles in the Organization
The Chief Executive officer is the principal figure in the strategic executive committee. He performs the
general management function such as environmental analysis, planning, strategic choices, organizing and
controlling. He also uses his conceptual and technical skills in the strategic management process. He is
responsible for giving direction and leadership towards achieving the organizations strategic goals,
missions and objectives. He reports directly to the board of directors.
The Deputy Chief Executive and Chief Operating Officer is responsible for the supervising all operational
activities in Mauritius Telecom. She scrutinizes the organizational goals and develops strategies on how
operations would help achieve them. She communicates with senior managers to learn about the state of
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operations by analysing the operations strategy decisions using information available, and oversees the
implementation of the decisions previously made by the board of directors. She works hand in hand with
the senior managers by deciding the activities of the operational resources through continuous monitoring
and improvement of the overall performance of their operations. Furthermore, she gives reports to the
chief executive officer and the board of directors about the relevant aspects and progression of the
operations such as cost, quality and products.
The Executive Head Network and Information is responsible for strategic delivery of Information
Technology across Mauritius Telecom, this includes systems integration, automation, support and also the
deployment of new applications and services to meet the needs of Mauritius Telecom and its customers.
He makes strategic decisions to give Mauritius Telecom a competitive advantage through the strategic
application of information systems resources. He also carries out proactive scanning of the developing IT
service market and provides the board of directors with the understanding role of information technology
within the growing business environment. Most importantly, He’s responsible for the fixed and mobile
network development, he’s tasked with positioning Mauritius Telecom as the leading network and service
providers in Mauritius by maintaining excellent network performance.
The role of the Chief Financial Officer in Mauritius Telecom includes strategy development, working
capital performance, fund raising, cash management, financial planning and analysis, financial reporting,
HR, business processes and business administration. He’s responsible for developing strategies that
would improve Mauritius Telecom business initiatives such as improved enterprise cost reduction,
procurement, pricing execution and other process improvements and innovations that add value to the
organization. He is also in charge of protecting the vital assets of Mauritius Telecom, ensuring
compliance with financial regulations, drafting and auditing the financial reports and communicating
value and risk issues to the board of directors.
The Executive Head Commercial is responsible for articulating strategies for commercial and operational
improvements across Mauritius Telecom which includes strategy development and execution, sales
management, product development, distribution channel management, public relations, marketing
communications (including advertising and promotions), pricing, market research. Essentially, the chief
commercial officer oversees the customer services, complaints and product liability issues. He’s
responsible with the aspect of customer interaction, customer experience and customer insights.
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Strategic Decisions at Mauritius Telecoms
Strategic Level
A strategic plan or a decision would be concerned with the “what and the why” looking at the big picture.
It requires the ability to recognize patterns and trends, establish priorities, anticipate issues, and predict
outcomes. To some extent strategic plans involve the vision, the mission, the guiding principles and the
goals for the business; whereas, a tactical plan or decision would be concerned with on how to achieve the
strategic goals (Project Deliverable, 2010).
Operational Level
This level is as important as other levels in decision making. In the Operational level, it serves to regulate
the day-to-day output relative to schedules, specifications, and costs. The management of Mauritius
telecoms access this level with various questions in mind: is the output of product or service the proper
quality and is it available as scheduled? Are inventories of raw materials, goods-in-process, and finished
products being purchased and produced in the desired quantities? Are the costs associated with the
transformation process in line with cost estimates? Is the information needed in the transformation
process available in the right form and at the right time? Is the energy resource being utilized efficiently?
Tactical Level
On this level, the plan or decision would be concerned with how to achieve the strategic goals.
Furthermore, Strategy involves the future vision of the business and tactics involve the actual steps
needed to achieve that vision. For example, in Mauritius Telecoms their marketing strategy is always
directed at the customers. Thereby, developing their customer relationship management and improve the
information delivery and feedback tools.
The Business Environment of Mauritius Telecoms
Strategic Analysis
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Strategic analysis is the process of scanning and evaluating an organizations external and internal
environment. Through this, Organisations can determine the opportunities and threats facing their
organization. In order to carry out these analysis, organizations requires analytic tools or models that will
allow them discern changes in the competitive environment and evaluate their impact. The value chain
analysis, porter’s Five Forces and SWOT Analysis would be used to analyse the competitive environment
of Mauritius Telecom.
Value Chain of Mauritius Telecom
The value chain describes the full range of activities which are required to bring a product or service from
conception, through the different phases of production (involving a combination of physical
transformation and the input of various producer services), delivery to final consumers, and final disposal
after use.
In Mauritius Telecoms, the value chain is a sensitive area of their operations and service delivery. The
accelerated rate of change in the telecommunications industry is a vital area of focus. The stakeholders
put this in mind and make sure the activities are put to place to ensure smooth running of their business.
These days where monopoly does not work in the Telecommunication industry, the demand and supply
increases and every organization has to survive. It is the same for Mauritius Telecoms having two
companies as rivals here in Mauritius.
Below is a diagram showing four links in a simple value chain
Source: A handbook for Value chain Research, 2000
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Intensity of Competitive Rivalry High
Threat of New Entrants
Bargaining Powers of Suppliers
LowThreat of Substitute Products
Low
Medium
Bargaining Powers of Buyers Medium
“The Strategic use of Information Systems in the Telecommunication Sector “
Mauritius Telecoms key challenges can be summarized as follows:
The need to dramatically reduce the cost of bringing services to customers: Investments in next
generation networks (NGNs) are critical to reducing the large number of dedicated and aging networks
that today deliver against businesses’ various communications needs. In short, a new core is needed along
with a new access layer that brings fixed and wireless options to the table.
Automation is highly important: Cannot afford to individually customize services for their enormous
user base. Therefore, automation of service platforms, acceleration of product life cycles and portal access
to service activation, monitoring and billing are critical.
The supply side must be rationalized: The need to reduce the number of suppliers used to build their
service offerings. This includes the network and the business and operation support systems needed to
turn the network into a service platform.
Porter’s Five Forces Model
The five forces framework is a tool for analysis to assess the attractiveness of an industry based on the
strengths of five competitive forces (Anthony, 2011). It enables organizations determine the industry
profitability by examining the industry’s underlying structure in terms of the five forces. An organization
is able to assess its ability to effective competition by examining all five competitive forces. The five
forces are:
Intensity of Competitive Rivalry
Threat of New Entrants
Threat of Substitute Products
Bargaining Powers of Suppliers
Bargaining Powers of Buyers
Mauritius Telecom Porter’s Five Forces Model
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The Intensity of Competitive Rivalry: High
The telecommunications policies in Mauritius are based on the premise that competition will be prevalent.
Thereby leaving the sector effectively competitive. Mauritius Telecom Ltd. is designated as the joint
dominant operator in this sector. Currently, Mauritius Telecom as an access provider has already
elaborated different development plans for their networks to ensure that they can continue offering the
latest services on a competitive basis. Mauritius Telecom, has implemented its Next-Generation Network
(NGN) upgrade in its core network, coupled with the deployment of the fiber-optics cable for
implementing a consistent network in several part of the island.
Threat of New Entrants: Low
The capital intensive nature of the telecommunication industry makes it the biggest barrier to entry. As a
result of these capital disbursements and involved risk, few contenders in this sector exist resulting to low
threat of new entrants. Similarly, the high costs of setting up network infrastructures, and built-up
maintenance makes it difficult for new entrants to cope, these infrastructures, even if rented, require
money and specific competences which cannot be taken for granted. However, Mauritius Telecom can
cope with this by maintaining high-level efficiency of its services to unrivaled heights.
Furthermore, firms need to get regulatory approval/licenses from the Mauritius Telecommunication
Authority, which is both costly, and a tedious affair. Companies wishing to enter the market must pay
huge licensing fees coupled by spectrum availability and regulatory issues attached to the industry.
Threat of Substitutes: Low
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Even with the emerging technologies, such as Skye, Push-to-Talk two way radio, the threat of substitute
products is considered low. Reason because there are several limitations that hinders these substitutes
from the market penetration. Some of these limitations includes: price of data and broadband services,
network coverage and mobility.
Bargaining Power Suppliers: Medium
In the telecommunication industry, the suppliers predominantly comprises of mobile phone manufactures
and supported industries for technologies. Considerably, there are innumerable manufacturers of these
supported technologies with prestigious names and good quality equipment which makes the bargaining
power low. Also with the rapid development of telecommunication technologies, the suppliers as well
face competition within their industry which gives an advantage to the telecom operators to have good
bargaining power. In addition, most of these mobile phone manufacturers are in partnership with telecom
operators for the marketing and sales of their product. Hence the suppliers do not have stronger
bargaining power. As such, Mauritius Telecom can easily maintain low prices from its suppliers and
continue making profits.
Bargaining Power Buyers: Medium
Enterprises are always seeking to maximize returns on investment while the buyers want to use the lowest
price to purchase products or services (Porter, 1985).
With the increased demand of telecom products and services, the competition between the telecom
operators become intense. This fierce competition leads to customers seeking low prices from telecom
operators offering cheap and reliable products and services. Hence, the bargaining power of buyers will
continue to grow which necessarily requires Mauritius Telecom to constantly modify their price strategy.
SWOT Analysis of Mauritius Telecom
SWOT analysis, which stands for Strengths, Weaknesses, Opportunities and Threats analysis, is a system
or process of considering the internal and external factors affecting the performance of an organization in
relation to competitor or market situation.
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The SWOT analysis below matches Mauritius Telecom’s strength and weakness to the opportunities and
strength it faces in its external environment.
STRENTHS WEAKNESSES
The topmost profitable company in
Mauritius
Has the largest customer base (Mobile
service & Internet)
Works with state-of-the-art services and
has improved over the years
International Direct Dialing (IDD) to 226
countries
Hi-Tech Customer relationship
management tools (ERP, Cloud Power,
and Flexible Contact Center for the
supervisor)
It is an international brand due to its
various partnerships over the years
Installed first Telephone line in Mauritius
Highly contributed to the GDP growth
Promoted the development of the country
through support to industry and
commerce
through enhancing the quality of
life
Unstable pricing
Could not stick to their Monopoly
The facilities and tools to serve their
numerous customers have to be in-place and
readily available due to their numerous
subscribers.
Internet breakdown is still prevalent
Their social and customer promotions are not
dominant enough in the industry
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OPPORTUNITIES THREATS
Growing economy
Growing demand
New acquisitions
Global markets
Establishment of more private telecom
companies
Emtel Ltd (they helped them set-up some
services at the initial stages)
RECOMMENDATIONS FOR MAURITIUS TELECOMS
No relenting in information delivery
Improve their data service or internet service
Due to their large customer base in order to avoid congestion
Deliver more promotions to customers
Do more promotional adverts on their website and also place applications for downloads
Internal Environmental Analysis
Strengths
Mauritius Telecom is the top ranked company in terms of growth and profitability, which was proven on
their 2011 annual report that accounted a progression in growth of the groups operating revenue by 3%
exceeding for the first time the Rs8 billion mark which was driven by a steady contribution from sales
and services.
Mauritius Telecom has the largest customer base (Mobile service & Internet) with over 1.2 million
subscribers to its network. This notable customer base has enabled MT to strengthen its position as
market leader and preferred end-to-end solutions provider.
Mauritius Telecom works with state-of-the-art services and has improved over the years. In 2012 they
deployed a new wireless application protocol (WAP) gateway, which enables faster browsing of web
pages and downloading of contents. Also, they use an automatic roaming tester, whichfacilitates prompt
testing and solving of roaming issues amongst several technological advanced services they utilize.
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In 1987, Mauritius Telecom first introduced the International Direct Dialling (IDD). This service enables
subscribers place international telephone calls rather than the operators. Mauritius Telecom offers a
flexible and high quality IDD service throughout the island and currently connected to 226 countries.
Customer service is one of the key element that distinguishes competitors. Though Mauritius Telecom has
its edge and flaws, subscribers are assertive that they are constantly developing their technology and
services to meet their satisfaction. However, Mauritius Telecom uses Hi-Tech Customer relationship
management tools such as ERP, Cloud Power, and Flexible Contact Centre for the supervisors.
All sectors of the market are now open to competition, and Mauritius Telecom has been partially
privatized in 2000. The aim of attracting an equity investor to help expand and modernize the Mauritian
telecommunications infrastructure. France Télécom acquired a 40% stake in MT for USD261 million.
France Telecom holds its shares through its investment vehicle RIMCOM. The Government of Mauritius,
the State Bank of Mauritius (through its wholly-owned subsidiary SBM Investments Managers Ltd) and
the National Pensions Fund hold 59% of shares in Mauritius Telecom (“MT”). 1% of MT shares were
sold to eligible employees and pensioners in 2007 at a discounted rate under an Employee Share
Participation Scheme. Mauritius Telecom is active in the mobile, fixed and Internet markets through its
subsidiaries, CellPlus Mobile Communications Ltd and Telecom Plus Ltd. Since April 2008, Orange is
the only brand used in the mobile and Internet markets. This partnership and subsidiaries makes the
company stand strong and market the brand and also helps its survival in the telecommunication industry.
In 1883, the first telephone line was installed in Mauritius by Mauritius Telecom. Consequently, it has a
distinct advantage of the first mobile telephony operator and has since maintained its position by its later
contributions. It has also progressively enhanced with the latest technology to meet world class standards.
The ICT sector has effectively become the third pillar of the Mauritian economy, with a GDP contribution
of 6.7%, a turnover of USD1 billion and directly employing some 15,000 people with flow-on benefits for
many more. The ICT Development Index (IDI) for Mauritius has improved from 3.43 in 2008 to 4.00 in
2010, and is estimated by the Statistics Mauritius at 4.37 for the year 2011, as a direct effect resulting
from improvements of ICT infrastructure and access.
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In respect to its corporate social responsibilities, Mauritius Telecom has helped improve the quality of life
of the community through the promotion of educational, social, sports, artistic and cultural activities. In
2009, it launched the Mauritius Telecom Foundation (MTF) and by 2010 the MTF allocated a total of
Rs54 million to a wide range of projects. These projects focuses on the eradication of absolute poverty,
social integration, education and training, sports and health.
Weaknesses
Pricing: This is sensitive area in services to customers and can go a long way to helping Mauritius
telecoms have an edge over other telecom operators. Customers like satisfaction and affordable services.
Therefore, if prices for services change from time-to-time customers may shift between network
providers for cheaper services. International calls should also be reviewed and made cheaper due to the
continuous increase in the number of foreigners to the country.
In-ability to Monopolize: Mauritius telecoms could have been the sole supplier of mobile and Internet
service due to the government being a major stakeholder, but other telecommunication companies have
taken the chances of this happening. A notable example is the arrival of Emtel ltd. another telecom and
Internet provider. The only recommendation is to develop strategies to ensure good and improved
services to customers as this will help them secure their space as a reliable telecom provider.
Prompt Response to queries: The problem of timely solution is still an issue to handle due to the
number of customers and skilled employees. Therefore, the facilities and tools to serve their numerous
customers have to be in-place and readily available due to their numerous subscribers. To ensure smooth
response to queries, the appropriate solution should always be provided to customer needs and if not
skilled individuals should be employed to handle exceptional cases.
Internet breakdown: This is a major problem or a general issue most times. Despite this, customers
want good and efficient service at every point in time. Some factors might be responsible for outbreaks
most times but a backup strategy could be put in place to ensure a no failure supply of network. In
exceptional cases, there should be mediums or channels to enlighten customers on such issues so that
customers do not flare up in anger, Reasons and solutions must be provided without too much delay.
Low promotional strategy: Their social and customer promotions are not dominant enough in the
industry. They should offer mobile user’s freebies from time to time e.g. introduce events that could make
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users win prizes. All these are to entice more customers to the use of their services. It is also
recommended offering bonuses on every recharge from time-to-time or during occasions to improve
customer relationship. More promo offers will bring more income as people tend to recharge more to get
such promotions.
External Environmental Analysis
Opportunities
In recent times Mauritius has been ranked in high places and especially in its fast growing economy. In
the light of this, we flashback to when Africa’s first cellular system was launched in Mauritius in 1989,
and also its first commercial 3G mobile service launched in 2004, one of the world’s first nationwide
WiMAX wireless broadband networks in 2005, and one of Africa’s first IPTV services in 2006.Currently,
several of the major access providers (including Mauritius Telecom Ltd. and Emtel Ltd.) have already
elaborated development plans for their networks to ensure that they can continue offering the latest
services on a competitive basis. Mauritius Telecom, for example has implemented its Next-Generation
Network (NGN) upgrade in its core network. Emtel, on the other hand, has deployed a fibre optic cable
network in several parts of the island. Therefore, Mauritius Telecoms have a great opportunity to deliver
the latest and up-to-date services to customers due to their global presence. If these plans are
implemented, the telecommunication sector could be a great source of revenue for the Country.
Threats
The issue of threats to businesses cannot be overlooked. Mauritius Telecoms have a major competitor
which is Emtel Ltd which started operations first in Mauritius and has even helped Mauritius Telecoms
set up parts of their facilities during their initial stages. Emtel has achieved notable status in Mauritius and
just like Mauritius telecoms they have subsidiary companies. Their rapid growth and state of the art
facilities have kept their rivals on their toes. Notable areas are their focus on bringing customers close to
them through promotions, introduction of mobile applications (Mobile TV) and their presence in other
close Islands like Agalega and Rodrigues which are controlled by Mauritius. If they keep the pace despite
being a private company they could have more partnerships.
Information and Information Systems in Mauritius Telecom
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Role of information in Mauritius Telecom
Information plays a significant role in every organization. They are crucial in making swift and effective
decisions. Also, they help managers to better understand their business process and its environment
thereby increasing the organizations competitive advantage. Information needed in an organization may
be either be for the operational effectiveness, management effectiveness or the business advantage, these
information may include: Customer Data, feedback information from customers, information on global
market, Changing/future technological trends, economic trends, information on competitors, suppliers etc.
At Mauritius Telecom, the Data and information gathered plays a vital role in:
Reengineering the business process
Environmental Scanning
Promoting innovative ideas
Promoting the growth of the group
Improving the quality and efficiency of the group
Improving the business scope
Improving customer’s relationship management
Improving the integration of the group’s internal process. Etc.
In order to get availability of nearly instant information, Mauritius Telecom utilizes various information
system tools for respective purposes within the different levels of management and the organization as a
whole.
Value of information at Mauritius Telecom
The value of information defines how much it’s worth to an organization. These information have some
unique properties which properties which measures its values. (Glazer, 1993).
Accurate, timely, and relevant information saves an organization both time and money through increased
efficiency, improved productivity, and rapid deployment of innovations. For example, access to research
results allows these organizations to benefit from the experiences of others and avoids costly duplication
of effort. While the benefits are substantial, they are difficult to quantify and the value of information
goes unrecognized. The value of information is determined by its importance to the decision maker or to
the outcome of the decision being made. Just like every organization, Mauritius telecoms deals with
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information on a daily basis and value its use. They work with information within the organization and
provide mediums or channels for subscribers to access information. Furthermore, the approach to which
information is collected, handled and utilized shows how any company value information.
Optimal Structure of Information Delivery within Mauritius Telecom
Business Intelligence (BI) will be used as a methodology to describe the optimal structure of Mauritius
Telecoms. Business Intelligence is the provision of accurate, valuable, timely and actionable business
insights. It is also a continuous improvement cycle where information is used to feed action,
consequences are analysed and new informed actions are taken. Mauritius Telecoms highly implements
the use of this method in its information delivery process within the management and organization. The
information flows from the top management to the least department. It is important to state that different
information is passed across various department as there are levels to which certain information should be
delivered.
To achieve high quality BI in terms of how the business can make use of it, BI has to be delivered in a
way that responds to the user base and context. The BI products that deliver the insight need to be broadly
aligned to the point in the business hierarchy where the insights will be applied and how that point is
involved in realizing the overall business strategy. Below is a diagram showing the Business intelligence
(BI) Triangle for the optimal structure of information delivery.
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Source: reidhodges.com
The BI Triangle above defines a three tiered hierarchy describing the nature and type of BI that is
delivered to the different management levels of the organization.
The business strategy defines the overall direction of the business, its aims and how the achievement of
those aims will be verified by measurement. In a properly aligned organization, the aims of the strategy
cascade down through each tier of management, becoming more granular and more operational at each
step. Because of this, the grain of detail communicated by BI products increases in line with the smaller
scope and time frames at increasingly operational levels. Operationalizing BI by incorporating it into the
day by day activities of the organization and upward through the organizational structure ensures
contributions from all levels move the business closer to its strategic goals.
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As the outputs of lower levels in the hierarchy accumulate to realize higher level outputs and outcomes,
appropriate metrics and BI delivery mechanisms are required to provide business insights actionable at
each level of the organization. Performance metrics aggregate to the key KPI’s that steer the organization
at executive level, allowing progress against business strategy to be assessed.
Different systems may support each strata in the hierarchy. To ensure they fit together to support BI is
the job of BI Architecture. To ensure BI continues to support the business strategy is the role of the BI
strategy.
Information Classification in Mauritius Telecoms
Strategic Information: This is used mostly by top managers in strategic decision-making and impacts
the firm’s long-term behavior. In Mauritius telecoms, strategic information system, helps the managers
identify trends in the business and then develop new methods of operation that may increase productivity,
eliminate problems, improve customer service and relations and raise profits. Strategic systems look at
what changes in the business are possible.
Tactical Information: Here, tactical planning and decision-making takes place within the guidelines set
by the strategic plan. Tactical information will be mostly internal with a few external sources being used.
Internal information is likely to be function related: for example, how much ‘down time’ a production line
must allocate for planned maintenance. Tactical information is used by middle management (employees)
when managing or planning projects.
Operational Information: The objective of operational information is to track fundamental activities, as
well as basic transactions that happen over the course of operations. This tracking allows managers to
answer routine questions such as where inventory is or how many hours employees worked. It is also the
lowest level and it takes place based on the tactical plans.
Information Delivery at Mauritius Telecoms
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In every organisation, information is delivered at various levels. While all strategic managers need
information, they do not all need the same type of information. The kind of information required will
depend on a range of factors: their level in the hierarchy, the work they are carrying out, confidentiality,
urgency, etc. Indeed, the usefulness of information is a debatable point, and what for one person is
information, for another is data. In an organisation, for example, when information is transferred from one
organisational level to another its meaning may change significantly, such that at one hierarchical level it
is regarded as significant information, whereas at another level it is simply data (Menguzzato & Renau,
1991). Mauritius Telecoms makes use of effective tools to deliver information within and outside the
organization.
Tools for Information Delivery within and outside Mauritius Telecom
Nowadays, computer systems are generally connected by telecommunications networks. Various network
connections are available to suit the needs of different companies. In MT, PCS are connected by local
area networks (LAN), enabling their employees to communicate and share data, tasks and equipment.
Wide area networks (WAN) are used to connect computers at greater distances, either within the
company or in a different location. Internet, the ‘network of networks’, links up an immense variety of
networks from diverse fields worldwide. These connections enable employees to access the company’s
databases and other computerised resources. They also use intranet which is an access-restricted network
either hardware or software used internally to share information within the organization alongside emails,
and various Microsoft tools.
In Mauritius Telecoms various tools are used to reach their numerous mobile and internet subscribers
worldwide. Below are examples of some tools and applications designed and implemented to aid
information delivery.
Flexible Contact Center: This is completely on demand and it enables you to create and move your
customer care whenever, wherever you want. And you can manage all communications channels in one
interface. Here’s how.
A company shifts its entire help desk to a new region in the hours after an earthquake takes out power at a
primary site; a contact center is created overnight to manage a new product promotion; or while her baby
sleeps, a young mother in Delhi works from her living room, emailing responses to customer queries.
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These scenarios are all possible today with Flexible Contact Center, the new offering from
Orange Business Services. It provides global organizations with unprecedented agility to deliver customer
care anywhere, any time and using any format.
Instead of the call routing, Interactive Voice Response (IVR) and messaging servers sitting on customer
premises or duplicated in local data centers, all email, voice and chat capabilities are moved into the
cloud. To deliver state-of-the-art, multimedia customer care, all you need is an agent, a PC with network
access and a phone.
Cloud Power: Cloud computing is already transforming software delivery, the desktop and data centers,
and its power now extends to customer care. Located in the cloud, Flexible Contact Center eliminates the
need for dedicated equipment on site.
Companies can scale their contact centers rapidly and give agents access to the latest customer service
tools, without any investment in capital or people to manage their infrastructures. Agents can be located
anywhere – even at home – and managed centrally. The Orange global network provides all the agent and
supervisor tools from the cloud and can collect and route calls from customers to agents, regardless of
where each is located.
Orange can also provide cloud-based customer self-service tools, such as IVR, and the system integrates
with existing customer CRM tools.
Flexible Contact Center includes widgets, which are small custom-built applications that can be
integrated directly into an agent’s contact center desktop. For example, a widget might be needed to give
callers driving directions, for pricing, or perhaps for a troubleshooting script. As a cloud service, these
widgets are created centrally and then can be instantly deployed to agents. The agent can customize the
interface himself, or add and delete widgets as approved by his supervisor.
The Flexible Contact Center is the ideal tool for the supervisor: “They can look at their agents’ real-time
status, examining their statistics individually and as a group,” explains Dan daCosta, Customer Solutions
Marketing at Orange Business Services. “The service can provide all of the contact center metrics that
supervisors want.”
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This information can then be used for longer-term trend analysis, providing supervisors with, say,
information about peak call times over the month. Where supervisors used to need to be in the same
building with their agents to keep a handle on this, it is no longer the case.
Because Flexible Contact Center provides everything except the agents, using a pay-as-you-grow model,
it makes companies extremely agile.
To offer a good service in these new markets, you need customer service operations to be agile. This
could involve supporting a new language or locating part of your contact center in a different country as
your needs change.
In a multimedia world, it’s not just about flexibility in voice: Flexible Contact Center also gives agents
new tools to manage customer care. These include chat, email and social media, and agents can customize
their desktops based on their preferences.
Different channels appeal to different customer needs. For example, an older customer might like a voice
conversation. Perhaps the agent handling that call will be based in that customer’s time zone. A younger
customer may be browsing a company’s website and want a chat session about returning goods. This
could be handled by someone anywhere in the world. A benefit of this flexibility is increased agent job
satisfaction. Operators get bored if their jobs are too repetitive. Enabling them to manage customer calls
one day and social media the next helps keep them enthusiastic and increases staff retention rates and
productivity. This is a win-win-win for the agent, the supervisor and the customer (Orange Business,
2012).
Strategic use of Information System in Mauritius Telecom
Managing the flow of information among strategic managers has been considered to be an important issue
in today’s competitive business environment. It helps to formulate the design architecture, both at the
product and organizational level. (Shamsuzzoha, 2011). Hence, information and communication within
strategic managers plays a vital role in strategic implementation. In other for strategic managers to
perform their various roles effectively, they have to carry out research, analyse and make use of relevant,
consistent, accurate, timely and affordable information systems.
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There are different information systems that can be used to carry out these operations, however the
different types of information system are used to deal with specific problems and task. These information
systems are classified based on the way in which task and responsibilities are divided within the different
levels of the organization and also based on the type of decisions the strategic managers want to make and
also the different types information and knowledge that the strategic managers want.
The diagrams below shows the type of information system used based on the type of decision taken at
different levels of the organization and the different type of information and knowledge the strategic
managers want to process.
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The transaction processing systems are operational level systems that are used to track and process
individual operations. It provides crucial data required to support the management of operations. The
chief Operational officer in Mauritius Telecom mostly use this kind of system to obtain required data
needed by tasks, monitor progress of ongoing operations, adjust task priorities, resolve problems, track
operational activities and basic transactions. He also uses it to validate, sort, update and create detailed
reports. These systems are efficiency oriented and provide information for other systems. In Mauritius
Telecom, the TXseries is used to carry out these activities, it is a system that provides operational
processes through facilitating absolute processing of his work, with the security of access, reliability of
data update.
Management information systems otherwise known as Management Support Systems (MSS) is a
“Computer-Based Information System (CBIS) that supports management via support of decision making
and/or information handling activities.” (Fidler & Rogerson, 1996). The MSS is used for planning,
organizing, monitoring, controlling, information preparation and communication. It provides a
mechanism for the analysis and manipulation of information interactivity to provide the strategic
managers a significant intuition into decision situation and associated options. It serves as medium for
communication between strategic managers via exchange of information. It also supports principal
decision making activities.
Mauritius Telecom uses a custom built management system to supports the following:
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Interactive data analysis concerning the company’s state in the market environment
Forecasting and analyzing the organizations data
Reports information on some business related aspects such as production, sale, and operations
Reports competitor’s statistics
Stimulates expected outcomes and effects of decisions
Sales forecast reports
Comparison reports
Group negotiation support etc.
The Executive information system (EIS) is system that supports unstructured decisions. It is used mainly
by strategic managers for predicting the future of the market environment. This system supports the
strategic managers to access real time information, analyze the environment in which it operates, identify
long term trends and plan appropriate course of action. It supports data and information from both
external data sources and internal sources such as the management support system. It also helps in
forecasting, simulations and reporting. Mauritius Telecom uses a custom built EIS module which was
customized to the preferences of the strategic managers.
The Decision Support System (DSS) is a knowledge based system which enables the creation of
knowledge. They are used to analyze existing structured information and allows strategic managers to
project possible consequence of their decisions into the future of the organization. They are interactive
and used to solve ill-structured problems. They offer access to database, analytical tools, allows ‘what-if’
and ‘what’s-best’ simulations and supports the exchange of information within other systems. It’s built
upon information from the management support system.
Office Support Systems are formal and informal electronic systems that supports communication of
information both within the strategic managers and external sources.
They include the following:
Word processing
Desktop publishing
Imaging & Web publishing
Electronic calendars e.g. manager's appointment calendars
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Audio & video conferencing e.g. Skype etc.
Competitors Analysis
About of Emtel Ltd
Emtel Ltd. was founded on 29th May 1989. It became the first mobile telephony operation company in
the whole Southern Hemisphere. This major step in Mauritian telecommunications history was the fruit of
the collaboration of two pioneering groups – The CurrimjeeJeewanjee Group, one of the foremost groups
in Mauritius, and Millicom International Cellular (MIC) S.A., based in Luxembourg.
During these 20 years, Emtel has managed to sustain this innovation drive and still today, the Emtel brand
itself is the synonym of technology, innovation and high quality.
Comparing Mauritius Telecom and Emtel
They both offer mobile and internet services
They use different tools for operations within and outside their organisation
They make use of recent technological structures and equipment but some are more upgraded
They both have subsidiary companies
They are the telecom giants in Mauritius
Emtel is a private company while Mauritius Telecoms has several shareholders (Orange S.A
having the largest share and the Government of Mauritius the 2nd largest share).
Competitive Advantage of Mauritius Telecom
Mauritius Telecom remains and sustains its leader position with a market share of 54% and a customer
base over 1.2 million subscribers of its fixed-line, mobile, internet dial-up, broadband and My.T
convergent services. This significant customer base has enabled Mauritius Telecom to strengthen its
position as market leader and preferred end-to-end solutions provider.
For mobile operators, the capacity of network is an essential basis of core competitiveness. The network
of Mauritius Telecom has a wider coverage than its competitor throughout the island. And with its high
quality matured network, it has set the pace in the region in the transition from narrowband to broadband
and Internet Protocol IP services. Additionally, Mauritius Telecom Network provides international
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bandwidth services deployed on bandwidths via the submarine fiber optic cable and are still installing
theses cable on other parts on the island. Also they support a wireless application protocol (WAP)
gateway which enables faster browsing of web pages and downloading of contents.
Mauritius Telecom has the largest share of high-end postpaid and business users. These is an advantage
over their competitor because most high end customers focus on the quality and services instead of the
price there by bringing huge revenue for Mauritius Telecom.
Mauritius Telecom has implemented the most current Dense Wavelength Division Multiplexing
(DWDM) technology that improves both Data and Voice Centric technology. These technology reduces
congestion, it ensures free network traffic.
Mauritius Telecom has roaming agreements with over 347 operators around the globe, while Emtel has
just few in Africa. Mauritius Telecom’s roaming service to partners includes the whole range of services
from Global Roaming Quality Voice to GPRS/Edge, 3G and 4G Data and CAMEL. Emtel is still lacking
in the roaming facility.
Mauritius Telecom has a better marketing and advertising proficiency. Through advertising, Mauritius
Telecom have a potential opportunity to reduce the price of content and services to end-users and increase
the volume of available content and services.
Competitive Advantage of Emtel
Emtel offers lesser call tariffs to its customers. The cost of a subscriber calls' Emtel to Emtel is Rs 0.96
per minute, to another mobile operator to Rs 3.60 per minute to a fix line at Rs 3.45 per minute. While the
cost of calls' from Orange to Orange is Rs 1.20 per minute, Orange mobile operator to another Rs 3.60 per
minute and Orange, fix line Rs 3.48 a minute.
Emtel has upgraded to LTE (Long Term Evolution). LTE decreases the traffic communications while
sending data. It offers faster data rate transfer which enables higher download and uploads rate. It also
reduces the problem of lagging in interest connection.
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Emtel has a very high customer relationship management with customers, because of their fewer
customer base, they can give quick response to customers complains and requirements. They also have
many customer service centers managing its customers across the nation.
Emtel carries out more promotional activities to attract customers (liaising with other organizations to get
some discount if a user is on the Emtel platform). And is also quick to initiate new innovations that
Mauritius Telecom come up with.
Emtel offers KPI for Telecom (Key Performance Indicator) on sales by product, region, distributor,
partner, or sales representative using personalised business intelligence dashboards and intuitive business
intelligence reports.
Recommendations
Overall, IT organizations must meet several competing demands: Work with business partners to deliver
competitive advantage; do so quickly in order to respond to (and anticipate) market demands; and provide
efficient, consistent quality while protecting the company’s intellectual property, data and customers. In
essence, there are business and market drivers that value speed, business knowledge and closeness at a
reasonable cost and risk drivers that value efficiency, quality, security and consistency. Therefore, a
design of an IT organization and systems approach that meets both sets of drivers and accommodates
business organizational change has to be created.
As opposed to organizing around one set of drivers or the other, the best solution is to organize IT as
a hybrid organization to deliver both sets of capabilities. A company like Mauritius Telecoms, need to
operate some of its department as hybrid in order to achieve stability and consistency in service delivery
to customers. This will help them face their rival companies.
For services becoming a commodity, or where there’s a critical advantage to having one solution (e.g.,
one view of the customer for the entire company), it’s best to have a single team or utility that’s
responsible (along with a corresponding single senior business sponsor). Where you’re looking to
improve speed to market or market knowledge, organize into smaller IT teams closer to the business. The
diagram below gives a graphical view of the hybrid organization (Jim, 2014).
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Source: Recipes for IT
Mauritius Telecom Business Strategy
Strategic Goals of Mauritius Telecom
In line with the group’s vision, its strategy for growth is centred on Enabling ICT Evolution through
innovation and enhanced customer experience. In their aim to execute these strategies they have been
able to carry out the following:
Growth Strategy
One of the key objectives in Mauritius Telecom’s Strategic Plan is to further its growth in the
international market and create new revenue streams through acquisitions in the telecommunications’
field. For this purpose, MT signed a Memorandum of Understanding with France Telecom to create a
dedicated department for business development with the aim of driving further growth locally and outside
Mauritius. Hence they are looking at getting into equity participation in the telecom company in Uganda
and Vanuatu. Whilst actively pursuing their efforts to achieve constant increase in growth and
enhancement of their profitability levels, also they wouldn’t compromise on measures to increase
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employee motivation, enhance customer satisfaction, innovate as well as provide continuous staff training
at all levels of the organisation
Innovation Strategy
Moving with the evolving technologies is a critical feature of Mauritius Telecom’s strategy to guarantee
service excellence that matches international standards and providing customers with innovative services
and experiences. Telecommunication services are becoming increasingly convergent and MT makes
every effort to respond to new device and consumption trends in an increasingly competitive market.
These services and products helps in enhancing the business and life experiences of their customers.
Some example of recent innovation products and services from MT includes:
My.T/VoD Services: My.T offers you access to complete internet and entertainment package at home.
With it you can get up to 30 channels of TV which includes News, sports, entertainment and many more.
Also, it offers cheaper international calls on your fixed line, an extensive VoD catalogue and a Wi-Fi
modem.
Conference Solutions: MT offers both audio conferencing and telepresence services. The Audio
conference service facilitates the scheduling of conference calls with up to 100 participants from any
national or international, fixed or mobile network or by simply using a web browser on your laptop while
the telepresence services combines life-size video images, ultra-high-definition clarity, and CD-like
spatial audio, as well as environmental conditions, to create a unique, "in person" experience. This
solution can be used for executive meetings within organizations, demonstration of sales and services,
staff meetings, job interviews etc.
Cloud Services: MT offers a comprehensive range of cloud solutions to assist businesses upgrade their
IT infrastructure. These services includes disaster recovery services, orange cloud solution, hosted contact
centre and hosted Microsoft exchange.
Mobile Fun: These comprises of services such as SMS info which gives you access to information on
weather, horoscope, lotto results, football, foreign exchange etc. Other services includes fun tones,
Bollywood wap, radio live etc.
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Mobile Applications: The Orange Travel is a free mobile app that will let you control your roaming
costs. It will keep track of your calls, SMS and data usage when you are abroad. The Orange Care App
offers different range of services to help you in your day-to-day activities e.g. the 7 to 8-Digit mobile
number converter service. Other apps includes the tourist guide app and the Muslim prayers app.
Further new initiatives were the launch of Deezer, a music platform which received the Best Innovation
Service Award at AfricaCom 2012, as well as Orange Money, a mobile payment system, enabling users
to settle Orange post-pay, MT and CEB bills through their mobile phones, Orange tablets and iPhone 5
were also lunched to promote ICT access and usage.
Enhanced Customer Experience
In order to improve customer experience, MT initiated the Smart Processes for Improved Customer
Experience (SPICE) initiative to give its processes and process management a strategic and customer-
centric approach. SPICE also supports the Company’s drive towards service efficiency by continuously
monitoring key performance indicators, decreasing costs by improving the effectiveness of processes and
increasing sales through customer-centric processes. Another initiative taken was the training of in house
experts to listen, guide and advise customers visiting Orange shops, helping them find their way through
the maze of the latest technological products and services. Again to improve customer service, regular
training sessions was organised. More than 250 employees from Orange Shops, back office and Orange
Care attended a two-day Orange Attitude training sessions, during which they were also exposed to
cutting-edge customer service techniques. Furthermore, several new Orange Shops and upgrading works
were opened around the island to make customer service availability more accessible.
In their intend to offer more value-added services and to their customers, Mauritius Telecom
commercially launch a 4G service through its Orange brand, giving access to very high speed mobile
internet. To mark the 4G launch, the French ‘Spiderman’, Alain Robert, climbed the 18-storey MT
Tower. His breath-taking performance gave MT considerable visibility on such global social networks as
You Tube and Facebook. Also, In line with the group’s commitment to providing residential customers
and businesses with the latest technology, MT launched Fibre- to-the-Home (FTTH) with the aim of
connecting the whole island to FTTH by 2020 to enhance connectivity and resiliency.
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MT also drives towards enhancing its quality of service. To achieve this, a Group quality strategy was set
and shared through its Business Excellence Council. Quality activities are coordinated within the group
and quality of service is monitored at departmental level for improving the Customer’s experience.
Key Strategic Issue at Mauritius Telecom
The constant growth and development of MT requires their increase in employees as well as managers.
As a result, some employees are promoted to the position of managers without specific managerial
qualifications. Though MT has been known to hire qualified managers who have capabilities for strategic
thinking, decision making, employees and operations supervision etc. there is additional need for the
group to occasionally upgrade their leadership skills in order to impart guidance and direction to
employees. As competitive market expands and develops with constant technological advancement, it
becomes a more challenging environment for the group to meet head on, so their managers must
endeavour to be the best leaders. Frequent management training programs would help develop the group’s
managers into more effective leaders. More so, the managers should also offer professional courses from
time to time in order to improve their skills and expertise. A training department could also be established
in order for employees to obtain knowledge on the evolving technologies, market trends, business
intelligence, customer relationship etc.
However, since globalization has paved many opportunities for MT to expand overseas and also requires
the adoption of standardized IT products and services, the extent of efficiency within the organization
must be highly effective to meet global standards. MT has always been the highest market share holder
and enjoy major profits. Although, with Emtel being its major competitor, as well as the prospect of
future foreign competition being granted permission by the government to conduct business in the local
telecommunication industry, MT must prepare for higher levels of rivalry.
Recommendations for Mauritius Telecom
Although various tools are being used as a medium of information delivery and feedback from customers,
other basic channels can be looked into for customer satisfaction and utility.
According to research and complaints from internationals living in Mauritius and using the orange
telecom platform, the tariff charged calling overseas especially Nigeria should be looked into. They
should also review and reduce the price of national calls.
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The use of the internet and social media platforms has highly increased the marketability of Telecoms
companies. Mauritius Telecoms could dedicate more time to this medium to increase their fan base and
sell out their image to the public. They could send free airtime from time-to-time to customers and
organize online quiz or games to select winners. Such move will help their customer relationship.
Furthermore, many customers do not like going to offices to complain due to their belief that they can
find solutions online. Therefore, possible solutions to basic issues and queries can be answered online
through social platforms. This can only work if they employ knowledgeable hands to handle online
queries and keeping customers updated on promotions and new technologies.
Limitations for this Research
In getting this coursework done, we faced several issues individually and as a group. Firstly, we all took a
lot of time trying to understand the coursework before choosing the topic. We had to make lots of
research on strategic management before putting it in a context of a company. After selecting a topic, we
contacted the two major telecom companies here in Mauritius namely Mauritius Telecoms and Emtel Ltd.
It took several weeks to get a reply from them which left us wondering if we could still continue with the
topic. It was to our surprise Mauritius Telecoms replied and gave a date for an appointment at their office.
Despite our visit we still did not get the required information so we had to make further research by
searching for their annual reports and other materials relating to our topic of discussion.
The telecom sector in any country is important to their economic growth; therefore it is necessary to have
recent facts and updated figures about the growth of a company. Most materials or information seen
online were more of achievements over the years, thereby overlooking information on customer
relationship which is a vital part of their existence. Most of the write-up on their customer relationship
had to be researched deeply by the group by asking subscribers of the network (Mauritius Telecoms and
Emtel) about their user experience over the years. This made us take a lot of time explaining their
strategic relationship within and outside the organisation.
Conclusion for this Research
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Mauritius telecom is undisputedly the biggest telecom company in Mauritius due to its market share and
international presence over the years. Despite this, they face a huge threat from Emtel Ltd who has been
in existence before them. Both companies offer similar services but one could outshine the other provided
they put in place good strategic decisions of how their services should be offered to the public. The
reports and findings show that Emtel has come to stay and could even gain higher grounds due to their
presence in the sister Island to Mauritius (Rodrigues and Agalega). This could be achieved if they
introduce better and more appealing services to customers.
The growth of Mauritius telecoms has been rapid due to its subsidiary companies and the government’s
intervention through investment. This has helped the country’s GDP and international presence. It is
important to say that Mauritius telecom is also known as orange and this name is a worldwide and
household name in many countries of the world. Orange France has a major share in the company which
makes them even bigger and could stand the test of time.
Various sections of this report discuss strategic management within and outside the organisation and how
information is passed and how it flows. The usefulness of information in telecommunication is a major
success factor to their operations. Therefore, the basis for their existence is to provide access to customers
or users with their mediums or tools to obtain and give out information. Mauritius telecoms offer telecom
and internet services and has a very large customer base and can only keep up this large number if they
improve their services and make them affordable to users. This can be achieved by improving their
customer relationship strategy with the use of several social networking tools and also increase their
promotional offers to customers. It is certain that Mauritius telecoms could be the biggest operator in
Mauritius as they have in place state of the art equipment and tools for information delivery and services.
They also have upcoming projects that could improve their existence, marketability and survival in the
telecom industry.
Overall this project has enlightened all members of the group on many aspects of telecommunication
activities. It has improved and given us a wider scope on the role of strategic management, the use of
Information technology/information systems and the importance of information to an organisation.
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Appendix
Screenshots of Email Conversations
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