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BSNL IT Strategic Planning Group 2 • Alyosha Agrawala • Kunal Gupta • Prajakta Thakur • Sudeep Singh Mahal © S P Jain Center of Management 1
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BSNL
IT Strategic Planning
Group 2 • Alyosha Agrawala
• Kunal Gupta
• Prajakta Thakur
• Sudeep Singh Mahal
© S P Jain Center of Management
1
Agenda 2
Telecommunication Industry
BSNL
Candidate Projects by Lenses
IT Audit: BSNL
Candidate Projects Consolidation
Project Justification and Funding
ITS Documentation Guidelines
IT Strategy Framework
Background
work
(Business
Strategy,
CSF,
Drivers,
Trends,
Business
Structure)
Candidate
Project
Identification
IT Audit
Survival
Needs
Candidate
Project
Consolidation
Project
Justification
and Funding
ITS
Documentation
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6
3
4
Phase 1:
Background Work
Importance of Telecom Industry
Strengthening
Investments
Gender Equality
M-commerce
Facilitating R&D
Impetus to initiatives:
MNREGA, Aadhaar
Economic Growth
Job Creation
Social Development
Rural Development
E - Governance
5
Evolution of Indian Telecom Sector
6
Current Indian Telecom Landscape
August 2010 Statistics
Population: 1184.59 million Teledensity: (BSNL) : 59.63
Urban population: 355.38 million - Mobile Teledensity : 56
Rural population: 829.21 million - Fixed Teledensity: 3
Total Subscribers: 706 million - Urban Teledensity: 133
Wireless subscribers: 670 million - Rural Teledensity: 27
Broadband connections: 10 million
Telecom Services – India
Urban & Rural Subscriber base
7
Wireless Segment
CAGR (Wireless Subscribers) – 77.5%
FY10 – 584.3 million
GSM subscribers – 84.1%
8
Wireline Segment
CAGR (Wireline Subscribers) : 3.3%
FY10 : 37 million
Teledensity: 3.1%
Urban Market: 73.1%
PCOs: 3.5 million
VPTs: 0.6 million
9
Internet & Broadband
10
Other Telecom Services
GMPCS services were launched
in India in 1999. These services
allow a subscriber to
communicate from any point on
earth through a handheld
terminal. Moreover, the telephone
number remains unchanged,
irrespective of the subscriber’s
location.
PMRTS have not grown to their
expected potential in India. The high
licence fee leaves a very thin margin for
services providers; thereby, inhibiting
its growth. About 31,000 subscribers
are currently availing this service in
India from 12 different operators.
In 1995, radio paging services
emerged as a promising segment in
India. However, this segment could
not compete with cellular services
in general and SMS technology in
particular, and is currently
shrinking. At present, only four
radio paging service providers are
present in the Indian market.
Very Small Aperture Terminals
(VSAT)
The market for VSAT services increased
by 5.73 percent during the quarter
ending in December 2006, and the
segment had a total subscriber base of
55,070. HCL Comnet is the largest of the
eight players functioning in the market. * Global Mobile Personal
Communication by Satellite
Radio Paging
Public Mobile Radio Trunked
Services
GMPCS*
11
Growth Drivers : Indian Telecom Market
12
Other Growth Drivers
13
Mobile Applications
Evolution of new technologies
Increase in Customer Demand
Social Media
Infrastructure capabilities:
Flexibility
Scalability
Re-usability
Lean & Green
Emergence of new players
Liberalization of the global telecommunications markets
Industry Risks
Top 10 business risks
for telecoms operators
1. Losing ownership of client
2. Failure to maximize customer
value
3. Rising regulatory pressures
4. Ineffective infrastructure
Investment
5. Inability to contain costs
6. Lack of talent and innovation
7. Inability to manage investor
expectations
8. Inappropriate systems and
processes
9. Poorly managed M&A and
partnerships
10. Privacy, security and piracy
risks
14
KPIs for Telecom
Call Centre
Wait Times
Call volume
# of complaints received
Avg. speed of answer
Revenue per call
Avg. quality of calls
# of calls transferred
Avg call length
# of one call resolutions
Abandon rates
Customer satisfaction
Agent Efficiency
Systems
Performance Analysis
Availability
Grade of Service
Bit error ratio
Bit rate
Downtime
Call completion Ratio
Cost of support systems
Cost of operational
systems
Avg call length
Analysis of ASR route
Network traffic ,
congestion
Idle time on network
Dropped calls
Financial Analysis
Avg revenue per user
Prepaid ARPU
ARPU from contracts
Rev. per voice min
% of non-voice revenue
Avg Revenue Realization
Minutes of Usage
Avg rev. per employee
Avg. rev. per subscriber
Periodical rev. analysis
Analysis of company
overheads
P&L Analysis
Recovery Analysis
15
Major Indian Telecom Players
Basic Services Operators
BSNL
MTNL
Reliance
TTSL
GSM Services Operators
Airtel
Vodafone
Idea
Reliance
TTSL
BSNL
CDMA Services Operators
Reliance
BSNL
BSNL
MTNL
Reliance
TTSL
Airtel
Internet Services Operators
MOBILE SERVICES
16
Major Global Telecom Players
Revenues of Major Telecom Operators in the World (US$Bn)
17
Trends in Global Telecom Market
Convergence
18
Trends in Global Market Contd..
Shift In Technologies Fixed line operators – Move towards FTTH
Mobile Operators – Move towards 3G, 3.5G and 4G
Focus on content – IPTV
The Shift to Emerging Markets
Fixed Mobile Substitution
Entry of Online Players
19
Trends in Global Market Contd..
Online Players Initiatives in the Communication Services Space
Shift to Emerging Markets
Fixed Mobile Substitution
20
Telcos and Social Web
• Integration in Business Process
Devices and Apps
• Location Based Services
• Mobiles as shopping and
selling devices
• Tablet PCS
Telcos and Business
• Network Quality and Congestion
• Targeting B2B segment
• Partnership
Telcos and People
• Tailored Tariffs
• Co-Creation
• Democratization of
smartphones
Major Innovation in Telecom Sector
21
Issues facing Indian Telecom Industry
Spectrum re-farming & effective
management of spectrum
Establishing effective licensing
framework involving service
providers
“Critical” Infrastructure Status
along with uniform policy and
single window clearance
Energy requirements
High operating expenditure
Effective utilization of USOF
to increase rural penetration
Increasing broadband
penetration and rural
connectivity
Security concerns
Limited availability of talent
Fixed mobile convergence
(FMC)
22
IT related issues to Telecom Sector
Integration of globally distributed application systems
E-Business platforms that can process high volumes of transactions
Consolidation of IT infrastructure into one location
Dealing with data security and confidential information
Need for effective reporting and trend analysis
Flexibility of adapting technologies to business processes
Reduction of IT maintenance overheads
Keeping up with changes to regulatory guidelines
Keeping costs low while providing effective network services
Channel and infrastructure utilization
Content Management
Developing innovative applications for M-Commerce to attract customers
Need for effective customer service tools to prevent churn out
23
Innovative Strategies : Telecom
24
• Customer relationship
Outsourcing the unexpected: Bharti Airtel Business Model Innovation
• Revenue streams
Standing on the shoulders of the advertisers: Blyk’s Business Model Innovation
• Customer segments
Cultivating emerging markets: Tencent’s Business Model Innovation
• Core capabilities
Leveraging the knowledge of the crowd: Iliad’s Open Source Freebox Business Model
Innovation
• Partner network
Creating a community of ‘Foneros’: Fon’s Business Model Innovation
25
Bharat Sanchar Nigam Ltd.
BSNL
Fully Government Owned Indian Telecom company
• 26.45 million fixed line subscribers (about 74% market share)
• 102.45 million total number of connections
• 76.10 million wireless connections
BSNL is the largest fixed land line service provider in India
• Telecom Infrastructure alone is worth more than US $30,000 million
• BSNL was the first 3G service provider in India August 2010
• BSNL has more than 500,000 KM OFC infrastructure
• Total about 38000 fixed line exchange
BSNL is leading Internet and Managed network Service provider
26
BSNL
Decision Making
Chairman : Mr. Gopal Das
CEO : Arjun Bhagwat
Vision:
To become the largest telecom Service Provider in Asia.
Mission:
• To provide world class State-of-art technology telecom
services on demand at competitive prices.
• To Provide world class telecom infrastructure in its area of
operation and to contribute to the growth of the country's
economy
27
Services Offered : BSNL 28
Wireless Services
Tarang-WLL-M
Cell One and Excel Leased Circuits
MLLN, MPLS-VPN/IP-VPN Services
Internet Services
Internet Under Dialup Access( Sanchar net)
ISDN Dialup Access
Internet Leased Line Access
Net One, Internet Dhabas Data One
Basic Telephone Services
B-Fone, One India Plan
Integrated Services Digital Network (ISDN)
Centrex , Intelligent Network Services (IN Services)
Public Telephone (PT)
Rural Telecom Services
Village Public Telephone(VPT)
Rural Community Phones
Replacement of MARR Village Panchayat
Phones
Rural Household DELs
29
Services Offered : BSNL
Network Organization
In India, whole region is divided into 24 circles (almost equal to each state)
and 4 metro districts (Delhi, Mumbai, Chennai and Kolkata)
BSNL Operates in all 24 circles and two metro districts
PSTN:: Separate User Profile and Services
PLMN: : Separate User Profile and Services
DATA: : Separate User Profile and Services
30
Financial Performance
Parameters 2006-07 2007-08 2008-09 2009-10
Income 39,715 38,053 35,812 32,045
Expenditure 31,466 33,636 34,354 34,078
Net Profit 7,806 3,009 575 (-)1,823
In Rs Crores
31
MARGINS
• Voice Services (L)
• Internet Services (L)
• Banking Services (M)
• Wi-Fi (M)
• Games (H)
• Productivity Tools (H)
• Shopping Platforms (H)
• HD TV (H)
• Mobile Phone Tie-ups (H)
• Caller Tunes (H)
• SMS voting (H)
L- Low, M- Medium, H- High
Business Positioning
BSNL provides almost every telecom service in India.
Goal: To become the largest Telecom Company in South
East Asia with most modern state-of-art technology
offering world class service to its customers.
BSNL is planning to increase its customer base to 108
million customers by 2011.
BSNL is a pioneer of rural telephony in India. BSNL has
recently bagged 80% of US$ 580 m (INR 2,500 crores)
Rural Telephony project of Government of India
On the 20th of March, 2009, BSNL advertised the launch of BlackBerry services across
its Telecom circles in India.
The corporation has also launched 3G services in select cities across the country.
Presently, BSNL and MTNL are the only players to provide 3G services, as the
Government of India has completed auction of 3G services for private players.
32
BSNL Strategy
Revitalise the business via:
Focusing on aggressive growth in Mobility (2G/3G), Broadband and Enterprise segment(i.e.,
corporate customers)
Reducing churn in the landline (including PCO) business and consolidating our positioning the
wholesale business (i.e., NLD)
Venturing into new areas to further drive growth such as infrastructure sharing, DTH,
International expansion among others
Build operational excellence in the following critical areas :
Marketing, sales and distribution
Product innovation and pricing
Customer service
Revenue assurance , Cost efficiency
Create a high performance organization to achieve the above :
Redesign the organisation structure, roles & responsibilities
Strengthen our HR policies and practices
Put in place a strong performance management system and culture
33
SWOT Analysis
Strengths
Experience
Competitive pricing
Pan-India reach
Total telecom service provider
Huge resource base
Huge optical fiber network
Huge customer base
Great broadband speed at lowest cost
Weaknesses
Poor marketing strategies
Low IT penetration within the organization
Bureaucratic organizational setup
Limited Value added services
High setup time , Slow service
Lack of strategic alliances
Use of obsolete technologies
Political inference
Poor knowledge management
Opportunities
Scope of improvement in marketing skills
Tremendous market potential
Huge business potential in e-gov initiatives
Untouched international market
Huge potential in DTH services
Huge scope for penetration with low cost
Threats
Market saturation in the conventional
telecom business
Political and economic instability
Competition from private players
Decreasing profits due to competitive pricing
34
CSF
Brand Awareness & Equity
Packaged Offerings & Services
Data Speeds / Bandwidth
Network Quality & Congestion
Retail Presence
Economies of scale
Financial Strength
Customer Service
Alignment with emerging trends
like Convergence
Partnership & Alliances
Critical Success Factors
35
KRAs / KPIs
36
KRA/KPI
• Call Center
• Customer Satisfaction
• Systems and Networks
• Network Quality
• Compliance
• Coverage
• Revenue
BSNL – A view from our lens
37
Engagement Lens
Operational Lens
Performance Lens
Strategic Lens
Performance :
• Organize governance to emphasize
accountability
• Streamline management structure to
expedite decision making
• Consolidate redundant organization
structures and locations
Strategy:
• Fully leverage operations
to build competitive advantage
• Identify and manage strategic
trade-offs
Operation:
• Minimize complexity of input,
production and output
• Increase first-time-right results
• Optimize resources for core processes
• Adjust service levels to overdeliver at
selected touchpoints
Engagement:
• Foster cooperation across
functions and departments
• Make employees aware of their
impact on operational excellence
Way forward
38
39
Phase 2:
Candidate Project Identification ( 10 Lenses Approach)
Global Trends
Forces / Trends Candidate Project
Product Services Web based portals for value added services / bundled offerings
Interdependence Collaboration Infrastructure sharing and outsourcing
Business Consumers
Mass Customization
Web Based Customization software with high security
BI Analytics project – Recommendation engine/Trend Analysis
Globalization Integration Project / Enterprise Software
Outsourcing Project Mgmt. Software and Vendor Management Software.
Environmental Aspects Green IT Virtualization software, Data Server Consolidation ,
Energy conservation projects in office premises, mobile apps
Paperless office – Online billing
Governmental Aspect Regulation Audit Software,
Financial Software packages
Crowd Sourcing (Open source) Platform based initiative
Flexibility M - Commerce Implementing GMLC (Gateway Mobile Location Center)
Mobile payment methods software
Secured mobile banking services
Technology Implementing Cloud computing for Data Centers
VoIP based services
Deployment of LTE and WiMax
1 40
41
Precision – Mass Customization
• Providing a unified Internet web
platform for selection of services
• Providing information about different
services on Social Media
• Push SMS for most preferred basket of
services via SMS
Innovation (Novelty)
• Novelty entails world class mobile and
broadband services
• BSNL has certain novel aspects but overall lacks
innovative product/service offerings
•Novel initiatives:
•Telecommunications services via satellite
•Use of CRM tools – Customer Service
Quality
• Network availability and quality are critical
for the telecom sector
• Reduction of network congestion and value
added services help provide quality service with
customer satisfaction
• BSNL is focusing on enhancing providing
quality services through bundled offerings
BSNL
Business Model
Cost – Mass Production
•State of the art network
•Common infrastructure to reduce cost
•Automated system for billing and
customized offer for customer
•Integration of various services offered
• BSNL focuses on low costs and this has
been its strategy in the telecom business space
2
Candidate Projects
Precision – Mass Customization
Building recommendation engine based on Customer preference
Effective BI to understand customer demands
Online interface for custom bundling of offers
Innovation (Novelty)
More application based services over internet
Tapping in Convergence to provide integrated and consolidated services
Cost – Mass Production
Shared Infrastructure
Outsourcing
Quality
CRM
Data Server Consolidation and Virtualization
Infrastructure upgradation
Effective Online experience
Quality Network
2 42
Business Transformation
Demand for bundled offerings, multiple products and services
Social Media leverage
Integrating the facebook, twitter, blogs, online banners etc
Crowd Sourcing
Evolution of new technologies
One-to-many calls, broadcast voice mail, and voice-to-text has changed the
industry dynamics
Fibre-To-The-Home
Implementing EDGE and GPRS technology
Green IT initiatives
M – Commerce – Mobile banking, Mobile entertainment
Trends – Introduction of WIFI and the security systems, Convergence of Systems
3 43
Business Model Transformation
BSNL
Business Transformation
1
4
2
3
Precision
Cost Quality
Novelty
3
With increasing competition and customer demands it is important for BSNL to balance Quality,
Customization and Innovation at the same time. The ideal transformation would be the change of
focus from Cost to Quality and eventually leading to Innovation with Customized offerings
44
Candidate Projects
M-Commerce -
- Multimedia features
- Open Source leverage
Social Media Engagements for Customer Interaction
VoIP based services
Green IT Data Centers
3 45
46
Barriers to Entry ( Low)
• Governmental Regulations
• Large Capital Requirement
• Marketing Costs
• Positioning Challenges
• Existing Competition
• Limited Bandwidth
• Demand for Value Added Services
• Increased FDI
• Huge subscriber base and
• Untapped rural segment
Bargaining Power of Supplier
( High)
• Geographical foothold
• Few number of major suppliers
• High Dependence
• Provision of state-of-the-art technology
• Criticality of excellent infrastructure.
• Importance of Network Strength & quality
Threat of Substitutes ( Low)
• No clear substitute for
Telecom
• Internet based technologies
like VoIP
Bargaining Power of Buyer
(Medium)
• Cost effective Services
• Many alternatives available
• Strength of provider network
• Availability of bundled
offerings and custom needs
• Brand Identity
Rivalry (High)
• Many major players
• Players with stronghold
on certain segments
• Favourable factors like
High FDI , Deregulation
• Focus on VAS, quality
and service
• Outsourcing & focus on
core competence
Porter’s Analysis 4
Candidate Projects
Collaboration with Suppliers through Selling Chain Management
Product Enhancements: VAS , Mobile gaming
Latest Technologies: Embracing technologies like 3G & Wi-Max and rolling out different
commercial plans. E-Commerce features, M-Commerce enhancements
Enhancing Barriers to Entry: Use of Social Media projects for strong viral marketing and
brand positioning to surpass competition
Cost focus: Cloud Platform leverage to reduce costs
To alleviate network issues: ‘Network Feedback SMS service’
Managing ICT Infrastructure: Outsourcing to other partners who manage the ICT
infrastructure
4 47
User Survey
User Feedback is important :
To help understand user requirements
To help enhance existing products
To help develop new products or services offerings
To help understand the current trends
Gaining new ideas from the customers
To create brand affinity – To make customers feel heard and involved and to help promotion through word-of-mouth publicity
5
Tips for Conducting Interviews
Use of interview guide. General to Specifics
Listening and guiding, not leading.
Strategies: intervention of higher-ups, interview in pairs
Paraphrasing , Use of indirect approach.
Sensitivity and not asking for too much
Columbo trick
48
Candidate Projects
Social Media projects for capturing and enhancing value through channels like
YouTube
Blogs
Web 2.0 and enhance existing E-business
Interactive portal . Taking the portal from being just informative and transactional to being interactive and transformational
System for integrating unstructured data from various channels and sources like voice, comments, references , mobile services
Use of BI Analytics , Web Analytics to understand trends and consumer demand patterns
5 49
Analysis of Competition
Basic Services Operators
BSNL
MTNL
Reliance
TTSL
GSM Services Operators
BSNL
MTNL
Reliance
TTSL
Airtel
Airtel
Vodafone
Idea
Reliance
TTSL
BSNL
CDMA Services Operators
Reliance
BSNL
Internet Services Operators
MOBILE SERVICES
6 Indian Telecom Players
50
6 Market Share
Sources to gather information about competitors:
• Cross hiring
• Industry Journals/ Trade Magazines
• Patent Filing
• Consulting community
• IT Trends
• Customers of Competitors
• Forums/Employee blogs
• Historical trends
• Trade exhibitions
• Industry Espionage
51
6 Analysis of Competition
• Bharti Airtel has the largest market share in
the GSM segment. As of June 2010, Bharti
accounted for 25.9 per cent of the GSM market,
followed by Vodafone, with a 20.7 per cent
market share.
• Private players accounted for approximately
86.4 per cent, while public sector operators
(BSNL and MTNL) accounted for the
remaining share
(13.6 per cent)
•Reliance Communications dominates the
Indian CDMA mobile services segment with a
market share of 52.4 per cent as of June 2010
•BSNL is the biggest player in this market with 9.7 million subscribers, followed by MTNL, Bharti
Airtel, Reliance and Hathway Cable & Datacom
52
Candidate Projects
Effective Value Added Services to match and overpower competitors:
Content Management Tool
E-Commerce portal
Voice Based Applications
CRM
Tie ups with other providers based out of the country so that there is better
availability of roaming services : Vendor Management software
Additional services in free-zones such as promotional offers in relation to latest
technology launches : Social Media Marketing, Online Banners
Cost-sharing for the network infrastructure in sparsely populated areas :
Infrastructure projects , Infrastructure Management systems
6 53
TechScan
Convergence and Integration between Mobile service providers and Music/Video
industry
Guided Positioning System
E Commerce
Mobile Banking
Online SMS providers
Social Media
Cloud Computing
Use of Internet for Phone calls
7 54
Factors Governing Technology Readiness
External Readiness Internal Readiness
Cost curve
Ability and effectiveness in handling
technology transfer
Stability of tech. and its suppliers
Skill level
Tech. standards
Risk profile (risk appetite) or ability to
handle/tolerate risk
Perceived business value
Implication to existing established
business proc.
Level/rate of adoption in industry general Culture of the company
Openness Open Standards
7 55
Technology Vs External Readiness 7 56
Technology Vs Internal Readiness 7 57
Internal Vs External Readiness 7 58
Candidate Projects
E-Commerce projects for enhancement of offerings with Web 2.0 features
Social Media Marketing Projects for increasing subscriber base
Leveraging Cloud Platform
M-Commerce and M-Banking Applications for secure transactions
Implementing GPS based navigation devices and localization features
7 59
Idea Scan 7 8 Disruptive Technologies
Social Media
CRM, Enterprise systems
E-Business, E-Commerce
IPTV
Integration : Integration of the operations
Convergence : Horizontal and Vertical
Open Source for reduction in costs
Cloud Platform and Data Centers for effective infrastructure management
Wireless Mesh Networks for network quality and availability
60
Candidate Projects
Cloud based Data Centers
Implementation of Wireless Mesh Networks
Agile System Operations for cost reduction
8 61
Value Chain Analysis 9 62
Impact of IT on Telecom Value Chain
• Introduction of Voice over IP impacts the fixed and mobile telephone service providers
Elimination threat to certain Telecom services and Value Chain partners
• BSNL partnering with Cisco to use Virtual Service Provider model which will help to offer bundled packaged services
Enhanced sharing and collaboration between different stakeholders like infrastructure vendors partners, competitors
• Large number of services and products have been introduced creating more opportunities for the Telecom Service Providers
Opportunities to increase and improve the customer base, market share, profit margins
• Introduction of enhanced network systems, network sharing models has helped Telco’s to reduce cost
Increase in Operation Efficiencies of the Telecom Ecosystem and various Service Providers
9 63
Candidate Projects
M-Commerce :
Tie up with online application providers to provide combo services and to enhance
mobile commerce
Increase Mobile commerce services like mobile payments, reservations, ticketing
Form alliances and partnerships with credit card operators, entertainment and
media companies and increase services.
Selling Chain Management, Vendor management Software: This will help
maintain the order cycle details
CRM : Customers are the focus of any service offering.CRM implementation and
enhancement will help deliver effective customer service
Business Analytics: These systems will help understand customer demand and help
define strategy accordingly
Social Media Marketing will help promote brand and increase sales through viral
marketing
9 64
Critical Success Factors
CSF for Telecoms ( Long Term )
• Market segmentation and effective targeting
• Fast introduction and application of services
• Economies of Scale
• Proper vendor selection, Retail Presence
• Financial strength
• Plausible state legislation and regulations
CSF for Telecoms ( Short Term)
• Bundled service offerings / Value Added services
• Network availability and congestion
• Customer Service and Experience
• Brand Awareness
• Alignment of commercial terms with business goals
• Business/Operations Support Systems (B/OSS)
• Specific best practice implementation methodology
• Effective governance, SLAs
10 65
Candidate Projects
Operations Support Systems/Business Support Systems application Implementation
Customer Relationship Management
SCM – Selling Chain Management
Vendor Management Software
Business Analytics for Market STP ( segmentation, targeting and positioning)
Enterprise Apps – Finance Module
Web Portal for better offerings
Security and Operational Controls Systems
10 66
Phase 3:
IT Audit
67
IT Audit
BSNL conducts close monitoring of network operation through information technology-
enabled systems, which include introduction of CDR (call data records)-based billing,
commercial and fault repair service and work order management system.
BSNL has launched a Rs 1.93 crore campaign "BSNL 3G branded Rajdhani express" in
association with the Indian Railways for the promotion of its 3G products and value added
services.
Bharat Sanchar Nigam Limited (BSNL) has announced the launch of its new 3G Value Added
Services for its customers across the nation. With this, BSNL becomes the first service
provider in India to have launched specialised VAS services for 3G users.
BSNL launched the much awaited ‘Dial-a-Video’ service in collaboration with Percept
Knorigin.
It also launched the FTTH (fiber to the home) service in Bihar. The customers who are in great
demand of good internet speed such as in the application of IPTV, HD TV, VoD, 3D TV and
many more will be in more benefit.
HCL - BSNL are planning to work together on National Broadband Penetration Program - A
nation wide initiative to bridge the rural-urban digital divide by accelerating ICT penetration in
rural and remote areas
68
BSNL Current Projects
High Critical Projects
UTStarcom’s MSANs
BSNL Customer Support System
VOIP enabled service
Wi-max enabling project
3G network Expansion
National Broadband Penetration Program
Low Critical Projects
Expansion of Broadband, Mobile
Payment
Expansion of Digital Media and ICT
Network SMS project
69
Functional Mapping
STRATEGIC IT INITIATIVES/APPLICATIONS
- Web Portal
- M-Commerce
- Value added services
TACTICAL IT INITIATIVES/APPLICATIONS
- Improvements in Mobile / Online commerce
- Social Media
- CRM
OPERATIONAL IT INITIATIVES/APPLICATIONS
- ERP
- Content Management Tools
70
Age of application vs. Functional Quality
Age Of
Application
Functional Quality
Old
Young
Low High
Infrastructure
BI
M-Commerce
Web Portal
ERP
IVR Payments system
Social Media
CRM
71
Age of application vs. Technical Quality
Age Of
Application
Technical Quality
Old
Young
Low High
Infrastructure
BI
M-Commerce
Web Portal
ERP
IVR Payments system
Social Media
CRM
72
Degree of automation vs. Potential of automation
Potential of
automation
Degree of automation
Infrastructure
M-Commerce
ERP
Business Analytics
CRM
Social Media
E-Commerce IVR
73
IT Audit – Customer Service Solution
Current
System
• A 24X7 Man Helpdesk will be available for attending customer’s calls, escalations & to support them around the clock. Customer will get the toll free no on which he can log a request in case if he wants to make any changes in his configuration.
Survival
Needs
• Which services are affected by network events, severity of the service impacts, which customers are affected, and response prioritization
Planned
System
• Integrate the solution with next generation services like Wi-Max
74
IT Audit – Network Services
Current
System
• UTStarcom s B1000 multi-service access node (MSAN) to fixed access customers
• UTStarcom's ADSL 2+-based broadband solutions will now enable BSNL to offer new broadband-based, triple-play services such as video-on-demand (VoD), video multicast, VPN services, and high-speed Internet services across the country while providing the operator with network flexibility, scalability for innovation and a rapid return on investment.
Survival
Needs
• High speed network services through IT to provide high quality service to the customers
Planned
System
• Migrate existing IT infrastructure to the above mentioned technology not only in fixed access but in mobile services too
75
IT Audit McFarlan Model
Impact on Operation low high
Turnaround
Exploit emerging strategic
opportunities from new IT
Strategic
Committed to use of IT to enable
both core operations and
core strategy
Support
Local improvements and
low cost savings
Factory
Reduce costs and improve
performance of org
Imp
act
on
Str
ate
gy
high
low
In BSNL, IT is
used mainly for
Operational
purpose and not
for Strategic
Advantage
76
Factory to Strategic movement
Turnaround
Exploit emerging strategic
opportunities from new IT
Strategic
Committed to use of IT to enable
both core operations and
core strategy
Support
Local improvements and low cost
savings
Factory
Reduce costs and improve
performance of org
Impact on Operation
Imp
act
on
Str
ate
gy
low high
high
low
BSNL is trying to
move into
strategic quadrant
by gaining
competitive
advantage
through IT
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Phase 4:
Project Consolidation
78
Project Selection Metrics
Projects of similar nature have been clubbed together and redundant options
have been eliminated to come with a consolidated list of projects.
The projects selected have been given ratings between 1-10 to further filter
these depending on their criticality to the enterprise, their value add, their risk
factors and so on
Rating of 1 means that the candidate project has the worst value for the given
attribute
Rating of 10 means that the candidate project has the best value for the given
attribute
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Drivers/ Candidate Project ROI Risk Time
Frame
CSF Cost Of
Learning
Survival
Criticality
Invisible
s
Tota
l
Portals for VAS with Web 2.0
features (E – Commerce)
9 6 8 9 8 8 6 54
Cloud Computing for Data centers 8 6 8 9 7 7 5 50
Vendor Management software 6 6 6 6 5 5 4 38
Green IT initiatives 5 7 7 5 6 4 5 39
M – Commerce Applications 9 6 8 9 7 9 6 54
Business Analytics system
4 7 5 6 4 5 5 36
CrowdSourcing (Open Source) 3 6 4 5 4 4 4 30
Project Selection Metrics - 1
80
Drivers/ Candidate Project ROI Risk Time
Frame
CSF Cost Of
Learning
Survival
Issue
Invisibles Total
Social Media Applications 9 7 9 7 8 7 8 55
Network feedback SMS service 7 7 7 6 7 5 6 45
Outsourcing Infrastructure
Maintenance
3 5 4 6 5 4 4 31
Project Management 6 7 7 3 6 3 5 37
Infrastructure Sharing projects 3 3 2 7 4 3 5 27
GPS based navigation devices 6 5 6 4 4 4 5 34
Wireless Mesh network project 3 5 5 4 4 3 4 28
VOIP based services, Wi-Max , LTE
deployment systems
6 5 7 5 4 5 4 36
Project Selection Metrics - 2
81
Drivers/ Candidate Project ROI Risk Time
Frame
CSF Cost Of
Learning
Survival
Issue
Invisibles Total
Mobile Banking Applications 9 7 7 6 7 5 6 47
Content Management Tool 8 6 7 7 6 8 8 50
Voice Based Applications 4 5 5 6 4 5 4 33
Customer feedback system 6 6 7 3 3 6 5 36
Marketing tools and Web Analytics 2 2 3 7 4 3 5 26
CRM 9 7 7 5 5 7 6 46
ERP Implementation 7 8 7 6 7 6 6 47
Selling Chain Management 6 4 3 5 4 5 6 33
Project Selection Metrics - 3
82
Phase 5:
Project Justification & Funding
83
Screened List Of Candidate Projects
Web Based Portal
Mobile Banking Applications
M – Commerce Applications
Social Media Projects
CRM
Network feedback SMS service
Cloud Computing Platform
Content Management Tool
ERP Implementation
84
CSF/ Department Marketing Sales Customer
Service
Operations Finance
Cost Reduction 7 3 6
5 3 6
4 3 5
8 5 8
7 4 8
Customer Acquisition/ Retention
7 4 8
7 5 8
8 3 9
8 3 6
6 5 7
Time to Market 6 4 8
7 5 9
7 3 8
7 3 5
5 4 6
Customer Satisfaction 7 3 7
9 4 9
9 5 9
5 4 6
8 3 7
Increase in Sales 9 3 9
6 4 8
6 3 6
6 3 5
9 5 7
Quality of Service 7 2 7
8 4 9
7 5 9
5 4 6
7 3 6
Project Justification Metrics
85
CSF/ Department Marketing Sales Customer
Service
Operations Finance
Cloud Computing
Platform
Low Low Low Med Service Improvement
Cost Reduction
Web Based Portals High High Med Med Revenue Generation
ERP Implementation
Med Med Med High Service Improvement
Integration of systems
Mobile Banking
Applications
Med High Low Med Revenue Generation
M – Commerce Apps Med High Med High Revenue Generation
CRM Med High High Med Service Improvement
Social Media Apps High Med High Low Customer Feedback
Network feedback SMS
service
Med Med Med Med Service Quality
Content Management
Tool
Med Med Low High Service Quality
Product Novelty
Project Justification Metrics
86
Phase 6:
Documentation & Communication
87
Approach & Methodology
Approach
BSNL is one of the oldest and major players in the Indian Telecom Sector
Inspite of the broad reach, Governmental support and resources at hand it has not been able to carve a
niche and is degrading on its performance.
With increasing competition and demand from consumers, it has become crucial for BSNL to adapt its
business model and to have a combined focus on quality and innovation with personalized offerings
The objective of this assignment is to evaluate the IT landscape of the company and to harness
technology to boost the performance of the company
Approach focuses on identifying the ‘As Is’ state and devising the ‘To Be’ State to help define the IT
strategy for BSNL through use of a 6 phased IT Strategy Model
Methodology
An exhaustive analysis of the industry and company was done to understand the current state and the
strategic objectives to be reached
BSNL was revisited through the 10 lenses to identify candidate projects
Projects were evaluated on various criteria like the feasibility, need, impact, required resources
Prioritization techniques were used to come up with the final projects to be implemented in next 2
years
88
Winning Projects
Winning projects were identified based on the prioritization technique using various
parameters like Risk, CSF, ROI, Cost of learning, Time frame, etc
Candidate Profile Projects filtered were :
Web Based Portal
Mobile Banking Applications
M – Commerce Applications
Social Media Projects CRM
Network feedback SMS service
Cloud Computing Platform
Content Management Tool
ERP Implementation
After identification, each project was revisited to understand its implications on
various departments using certain metrics
After thorough evaluation of all aspects and the company needs, projects were
selected for next 2 years of execution
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TimeLine , Cost and Execution
Candidate projects will be executed in 2 years timeframe
The current estimated costs associated with the Candidate profile projects is
approximately $30 million
The execution will happen with the in-house talent and outsourcing to the
preferred vendors
Vendor selection process would follow the standard routines as been followed
by the company
Executing vendor will need to present Pilot which will then determine the
grant of contract to the vendor
Projects will be implemented using Waterfall model under the purview of
BSNL IT department
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Preface
Who Vote:
Business Leaders and IT Team
Candidate projects:
Web Based Portal , Mobile Banking Applications , M – Commerce Applications, Social
Media Projects, CRM, Network feedback SMS service, Cloud Computing Platform,
Content Management Tool, ERP Implementation
Goals:
To boost performance of BSNL through innovative , personalized and quality
offerings
Business Capability:
These projects will enable BSNL to better utilize the available infrastructure, incur cost
savings through outsourcing, provide customer centric service offerings and value
added services thus enhancing the BSNL brand and market share in the due course
Ownership
The entire execution is owned by the BSNL IT leadership team in collaboration with
the Business units and outsourced vendors
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92
Thank You !
93
References :
• Consultant Report:
Mckinsey Quarterly, Ernst & Young, BCG, Gartner, Accenture
• Research Library :
CIA world factbook, Data Monitor 360
• E Magazines / newspapers:
Financial Times, Economic Times, Wall Street journal, Business World,
Time magazine, Forbes, Harvard Business review
• Company Websites of Telecom players
• Internet Resources: Case Studies, Government sites, blogs, websites
• Subject Material
• Deliverable D1 gives exhaustive list of most of the sources
