Airtel - adding business value through IT

8/13/2019 Airtel - adding business value through IT

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Gautam Burye D008Rhythm Chawla D009Iravatee Chitte D010Arihant Jain D024Sagnik iy!gi D04"

Bharti Airtel Generating Business Value

through IT



Airtel – Changing Business Model



• Low cost serviceproviders

•

Aggressive expansionwith low ARPU• Maret share over

pro!ita"ility#arlier

• $ocus on %A& '%alueadded services(

•

Riding on the )atarevolution• Bacing emerging

technologies 'Cloud *Analytics(

+ow



Airtel – Changing role o! C,O



• Manage #RPsystems

• ,nternal andexternal M,&

• Billing* CRM* etc-#arlier

• &trategic "usinessrole

• ,denti!y newrevenue streams

• ,denti!ytechnologies !ortheir

+ow



Airtel+ew ,nitiatives generating"usiness value



2- Airtel CRM



CRM As a Business &trategy ,n Airtel CRM actually represents a "usiness strategy that

involves !ocusing nowledge* "usiness processes andorgani3ational structures around customers and prospects!or the whole organi3ation- &urrounding this "usinessstrategy is an in!ormation technology in!rastructureconsisting o! data warehouses* decision engines and

integrated middleware !or touch points4channels in order to"etter understand customer "ehaviour and respond in atimely and relevant manner-



+eed Recognition

5elecom arm* Bharti Airtel Ltd provides services in all the 26 telecomcircles-

5he "usinesses at Bharti Airtel have "een structured into three individualstrategic "usiness units '&BU7s( 0 Mo"ile &ervices* Airtel 5elemedia &ervices8 #nterprise &ervices-

Vision of CRM9 provide a single0window o! service throughout the 26

circles across the country- Centrali3ed and integrated were de!initely twopillars they were looing !or

As Airtel grew a national !ootprint* it co""led together a num"er o! localplayers* accumulating a num"er o! di!!erent systems-

,n the resultant chaos* it was hard to service customers across circles* let

alone implement an idea pan0Airtel

CRM was sponsored by the customer service

Oracle CRM platform



Advantages1- Up0selling is now "oth more !ocused and accurate-

2- ;enerate accurate leads !rom a customer data"ase-6- &egment customers 9 identi!y the needs o! its customers

<- CRM system is closely lined to a host o! other "ac0end systems- ,n!ormationto serve him "etter is availa"le with the !ront0end -

=- CRM is centrali3ed and supports wor!lows speci!ic to >ueries* pro"lems are!ixed !ast- But it has meant a lot o! scripting on the CRM system-

?- 5he CRM reduces "ac0end tra!!ic* it also regulates it- &ervice re>uests*' issuingduplicate "ill( are now sent to the "ac0end have a cut0o!! time-

@- Almost all customer in!ormation is availa"le online* ena"ling the company toanswer >ueries percent o! the time-

- )ata collected helps Airtel tae de!ensive action against customers they

suspect are either misusing Airtel7s services or aren7t planning to pay !or them-

- &ince Airtel adopted CRM !or its postpaid customers9 savings in the !orm o!!ewer calls* a tremendous reduction in churn* increased productivity* !urtherrevenues !rom value0added services-



6- Airtel Money



,ntroduction

Mo"ile penetration growth has "een extraordinary recently in "oth rural and ur"an areas9rural tele0density has increased to 12-@2 !rom -< and ur"an tele0density @2-<@ !rom =- inpast 1 years

,ndia is the !astest growing mo"ile maret in the world and almost 1= million su"scri"ers are"eing added per month* mostly in rural areas

Fhile ur"an ,ndia seems to "e over0"aned with more than 1G penetration 'many ur"an,ndians have more than one "an account(* rural ,ndia lags !ar "ehind with 1G penetration

Baning in!rastructure in rural ,ndia is poor and although there are 62* commercial "an

"ranches in ,ndia* only @G o! villages "oast o! a "ranchAmong the reasons !or low presence are lac o! in!rastructure* regulatory constraints*

illiteracy* incomplete service o!!erings "y "ans* and high transaction costs in the !ormal"aning system* in!ormation asymmetry* and high proportion o! non0per!orming loans '+PLs(-

Opening more "ranches is perhaps not Husti!ied on economic grounds in rural areas- 5here!ore* to improve access in rural areas* "ans needs to modi!y existing channels*introduce new channels and identi!y innovative ways to integrate the two



Airtel Money

Rural ,ndia houses @G o! the countryIspopulation and has access to only 6G o! thecountryIs "an "ranches* 2<G o! any type o!"aning point0o!0sales* and a measly =G o!

,ndiaIs A5Ms,t would o!!er AirtelIs customers the a"ility to

mae retail payments and do "asic "aningusing their mo"ile phones and AirtelIs networ

Launched in 211Over a million su"scri"ers



Motivation !or Airtel Money

,ncrease in the penetration o! smart phones inur"an ,ndia

#xisting revenue streams were tending towardssaturation

Motivation to generate new revenue streams thatwould help in sustaina"le development

An idea out o! several "rainstorming sessions –An open wallet service

#>uip AirtelIs customers with the a"ility to maeretail payments and do "asic "aning using theirmo"ile phones and AirtelIs networ



,mplementation '142(

Carved out a separate company !orthe new idea – Airtel M Commerce&ervices Limited 'AM&L(

Provide the new undertaing more!reedom* and the !lexi"ility

#xtensive research "oth includedprimary and secondary* to de!ine there>uirements and "oundaries o! thenew system 'e-g- maximum recharge*maximum money trans!ers(



,mplementation '242(&5. v4s J2M#

Unstructured &ervice &upplementary )ata

Fent live in March 212

Currently availa"le in 6K ,ndian cities

Allows Airtel customers to load cash on their mo"ile devices* pay utility "ills*top up recharges* trans!er money to other Airtel accounts

Airtel customers can mae payments at retail outlets and are o!!ered a cash0in and cash0out !acilities 'at authorised Airtel Money retailers(

Airtel has esta"lished merchant partnerships with over 1* "rands acrossthe country 0 this includes utility providers state electricity "oards vi3- B&#&*Reliance #nergy* ,ndraprastha ;as* telecom 'B&+L4M5+L( and insurance'L,C( and mutual !unds* organi3ed retailers 'e-g- )5 Cinemas* $un Cinemas*

Megamart* Univercell* Apollo Pharmacy( as well as local chemists andgrocery stores who will now accept payments via airtel money

At the heart o! the solution lies a ro"ust transaction plat!orm which is "asedon open standards* re0usa"le integration points and can handle largetransaction volumes



&ervices

Pay !or 9

◦ Mo"ile and )5D o! all operators

◦ Postpaid* !ixedline "ills

◦ #lectricity* gas* water 8 insurance

◦ Online shopping and payments

◦ Movie ticets

◦ Restaurants* spas and shopping

Money trans!er9

◦ &end and receive money !rom any airtel money customer

◦ &end money to any "an account via +#$5

◦ &end money "y &M& code to any mo"ile num"er

◦ Fithdraw money at any airtel money 0 Axis "an outlet

#arn interest9

◦ #arn interest on "alance amount at the rate o! <G per annum



&uccess &tories

Catholic University o! #astern A!rica◦ #arlier students used to !ace a lot o! pro"lems in paying their tuition !ees in time- 5he only modes o!

payment were che>ues or "an trans!ers-

◦ 5his was particularly trou"lesome !or international students who didnIt have local "an accounts- 5hey used to have someone else pay on their "ehal!

◦ $or students whose parents were in rural areas* receiving cash was a time consuming and unrelia"leprocess

◦ &imilarly* payments to suppliers* re!und to students could only happen through !ormal "aning

instruments◦ +ow* all such transactions are possi"le through Airtel Money – which maes all inds o! payments

hassle !ree and instantaneous-

Mumias &ugar Company* Festern .enya

◦ 5he sugar company is primarily located in rural areas-

◦ 5he sugarcane cutters are paid wages weely

◦ ,n a"sence o! any "aning instruments* they are paid in cash in sealed envelopes every wee- 5hiscame with a host o! pro"lems such as !rauds* the!ts* disputes* high cash handling costs 8 insurance

◦ 5he sugar company had to hire a cash management company to handle the payments which addedto the overall cost o! operations

◦ +ow* the weely payments are made through Airtel Money

◦ 5hereIs a complete ecosystem o! authori3ed Airtel Money retailers in the neigh"ourhood* whereworers cash out their wages or trans!er some part o! it to their !amily elsewhere



Cutting down on +%A activities

Mo"ile phones helping us manage mails* o!!iceand the calendar* while simultaneouslyentertaining us "y ena"ling content consumption

Dowever* not too long ago data connectivity was

not u"i>uitously availa"le and even today*maHority o! users do not use smart phones

At this Huncture* what is to "e done when usersdemanded access to applications in the !ield



,ntegrated &M&

,ntegrated &M& with the corporate applications lie leavemanagement systems and employee reim"ursement so thatemployees could tae care o! these processes on the move

'5ravel and corporate applications are non value adding activities-)oing "oth together leaves us with more time to add %alue(

Another innovation was maing the catering system mo"ileena"led such that employees could use their access cards toplace orders and get in!ormed through &M& when the !ood wasready to "e served



Curious case o! &agar ;upta

&agar Bhonsle* a college student !rom Bhayandar in Mum"ai* loves watchingvideos on /ou5u"e and downloading movie clips on his laptop- ,t eeps himentertained during the hour0long travel to his college in %ile Parle-

De uses a U&B dongle to access the internet* with unlimited data plan service

&ince he is Nsatis!ied with the service* he was surprised when the serviceprovider suggested given his heavy usage pattern* it was willing to o!!er him acheaper data plan* with the same speed-

5he company had called despite the !act that &agar did not approach thecompanyIs customer care department-

uestion is

Dow did the company identi!y that something di!!erent

could "e o!!ered to &agar

Airtel - adding business value through IT

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