Marketing And Sales Strategies In Evolving Telecoms 2008 Tomas Trejbal
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Transcript of Marketing And Sales Strategies In Evolving Telecoms 2008 Tomas Trejbal
Telco and IT convergence as the future business driver
Tomas Trejbal Head of Corporate Product Marketing,
Barcelona, September 24th, 2008
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Agenda
Why?
How? what is needed to become reality
Conclusions to take away
What? Convergent story
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Who? we are
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Telefónica O2 provides its clients the experience & size of a world leader…
Telefonica‘s Footprint
Dec 2007
…serving 23 countries
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4
Within the Czech Republic Telefónica O2 has a strong local market footprint
Fully integrated Telco & IT provider
ČESKÝ TELECOM + Eurotel Praha in July 2006:
Offering the most comprehensive portfolio of voice & data services in the Czech Republic
Operating the largest fixed & mobile network
8 Million fixed & mobile lines in operation
8700 employees at your service
Omnicom in 1999 and Deltax Systems in 2007 enable us to offer you information and communication technologies (ICT) services end-to-end
Prague
Czech Republic
2006
2007
Telefónica O2 in the Czech Republic
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5
… and what was the question?
Convergence with
Telefónica O2
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Customer wallet is shifting from traditional telecom products and services to
ICT, creating new opportunities but also a challenge to the existing business
model
• Significant new wallet created in the areas originally dominated by IT firms
• Traditional telco revenues in decline
• ICT providers are also positioning themselves to offer traditional telecom services,
pushing telecom incumbents into becoming wholesale providers and losing the end
customer relationship
As a result, most telcos increasingly successful in penetrating areas originally
dominated by IT firms
• Leading players currently generate up to 20% of revenues in the business segment in
ICT
• Moreover, ICT also contributes to protecting revenues from traditional telco business
TO2‘s Strategic challenge
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Current CIO pains
Source: EUROPEAN CIO SURVEY - views on future IT delivery 2006, Capgemini
* the mix of activities to focus on and their sourcing
The survey is based on one-to-one interviews with over 160 CIOs, across 12 European countries, with representation from all industries
65% of all interviewed CIOs planed changes to their IT delivery models* within the coming two years
The key drivers for changes in delivery model are:
82% Cost reduction 46% Need for increased flexibility 43% Quality increase 42% More time to focus on core business
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Mobile
PC
Telephone
LAN Services
Voice and data
network
Customer environment User devices
PABX/LAN Communications Managed Services and Outsourcing
PABX
Workplaces Premises Data Centres
End to end SLA Security Premium Care Consultancy
Laptop, CDMA, HSDPA
Server Hosting
Data Storage Archiving Services
Video conferencing Audio conferencing
E-mail and SMS platforms
Telefónica O2 – network centric ICT system integrator
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What is needed to become reality?
3. Products
4. Delivery
5. Value Proposit. / Communication 6. Training/ Motivation
e.g. which products will to be delivered, which features are expected by customers etc.
e.g. what has to be the sales support and structure for selling managed services (higher involvement of presales…)
e.g. will be covered by the ICT communication strategy
e.g. what is the best way how the sales has to be trained and motivated
1. M
ark
et
Po
ten
tia
l
2. B
P T
arg
ets
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1. Market potential BCG Survey
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2. BP Targets
Corporate & Government Benefits for you
2006
IT solutions
22,4 M €
Corporate & Government
2007
IT solutions
77 M €
Corporate & Government
2010 BP
IT solutions
104 M €
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3. Products
Managed Services Platform
LAN
Gold MLAN
Silver MLAN
Desktop
WAN
Security
O2 Complete Office
Q3 2008
Q1 2007
Managed Desktop
O2 Computer Solution
Q3 2008 MSS Phase I
MSS SG 1-8
Q4 2008
2009
GOLD MWAN
Silver MWAN
Q3 2008
Q3 2008
Q3 2007
Hosting
Managed Data Storage
Managed Server Hosting
Q3 2007
Q4 2007
Voice
Managed PBX
IP Centrex
Q4 2007
Q1 2008
Service already launched
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3. Products
Managed Hosting
Managed Data Storage
Managed Server Hosting
Q3 2007
Q4 2007
Voice
Managed PBX
IP Centrex
Q4 2007
Q1 2008
Desktop
Managed Desktop
O2 Computer Solution
Q3 2008
Q3 2007
-3 out of 4 total services are launched
Current status:
-Managed PBX is already launched
-IP Centrex will be launched in Q2/2008
-O2 PC Solution was launched in September 07
Managed Archive for Q2 2008
Next steps:
-Managed PBX Phase II
-ad on features to IP Centrex to fit Corporate customers
-Managed Desktop will be launched in Q3/2008
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3. Products
Security
LAN
GOLD MLAN
Silver MLAN
O2 Complete Office
Q3 2008
Q1 2007
WAN
GOLD MWAN
Silver MWAN
Q3 2009
Q3 2009
-Only Service Group I. is going to be launched in 2008 -no revenue is expected from this services.
Current status:
-O2 Complete Office is already launched
-Project based business(only for limited number of customers)
-During 2008 we will offer Silver and Gold Service Desk, which are partly similar to MWAN
-To launch the full scope of services
Next steps:
-Silver and Gold Managed LAN are going to be launched in Q3/2008
-Silver and Gold Managed WAN are going to be launched in Q3/2008
MSS Phase I
MSS SG 1-8
Q4 2008
2009
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… to teams, which are able to do consultative selling
From Telco oriented sales structure
Sales Team
Solution Specialists
Dedicated Key Account
Manager
Dedicated Sales
Support
Presales Team
Nationwide logistic coverage
Nationwide dedicated „Gold“ dealers
• Main purpose of „Managed Service Push Program“ is to define rules, processes and responsible persons in order to significantly improve selling Managed Services
4. Product Delivery „Push Teams“
1. Principles of selling Commodities
- Sales is active in selling, Presales is supporting Sales on Demand
2. Principles of selling Managed Services
- Sales is active in selling, Presales and marketing together with other needed teams creates „push environment" for active selling and solving issue in order to generate new revenue stream
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5. Value proposition Main benefits for customers
Lower TCO • Lower TCO • Better control over CAPEX and OPEX costs
Flexibility
• Investment into new business opportunities instead of infrastructure • Capacity is increased fluently according to the business opportunities • Easy management of seasonal and project based jobs • Investments decrease for finding new business opportunities
People and quality management • Lower internal Headcount • Increased competence • Global SLA from end2end.
Managed
WAN
Managed
LAN
Managed
Desktop
Managed
Voice
Managed
Security
Managed
Hosting
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OPEX
OPEX
CAPEX
Buy
In-house
tech.
Operation
and
Adm. MSH
MDS
MB&R
Conn.
Buy
In-house
tech.
Operation
and
Adm. MSH
MDS
MB&R
Conn.
Real Business case for Retail client with 500 employees
5. Value proposition Lower TCO
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• Pay-per-use concepts • No capex payments • No operational and admin costs
LOWER TCO BETTER CASH FLOW CONTROL
• Managed services don‘t generate any CAPEX
• Services are paid from operational budgets
• Customers don‘t care about the technology lifecycle
Integrated SLA
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5. Value proposition Flexibility
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• You buy only the capacity which you actualy need.
• Increases are fluent according to the requests.
• You always use 100% of the bought capacity.
INVESTMENT INTO NEW BUSINESS OPPORTUNITIES INSTEAD OF
INFRASTRUCTURE
SUPPORTING NEW BUSINESS OPPORTUNITIES
• Service increase is done fluently according to the actual customer requests
• There is no technology or staff unused • No complicated and strategic planning is
necessary
Unused capacity
Real used capacity
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• The needed capacity is easy bought. • Seasonal activity variances are covered
only for the necessary time. • After this period the capacity is decreased
to the bottom level.
EASY MANAGEMENT OF SEASONAL AND PROJECT BASED JOBS
FOLLOW UP THE CYCLES OF BUSINESS
• You decrease the subscribed capacity and power by 20%
• You have no unused technology, or IT staff capacity
5. Value proposition Flexibility
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All the staff costs are included in the service
Technical specialists are shared among more customers = the capacities are used effectively.
Saved internal headcount Additional competence
LESS HR ISSUES GLOBAL SLA FROM END TO END
Service availability and operation are guaranteed
Service has a defined SLA parametersparameters and SLA (Service Level Agreement)
All processes of the delivered services are according to ITIL standards.
5. Value proposition People and Quality management
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5. Communication Current TO2 brand market perception
-Only a very low number of customers is ready to buy IT services from Telefónica O2
-Highest perception is in Hosting services, here we are struggling with space
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2007 2008 2009 • Message
O2 enters IT markets
• Message
O2 is a trusted ICT provider
• Content of message
• Change of strategy towards ICT
• Introducing our plans
• Content of message
• Focus on proper launch of all product groups
• Helping to generate leads
• Content of message
• Focus on multiplication of success stories
• Behaving as established market player
• Real status
10% of products
70% ready through projects
Limited potetial for references
• Real status
70% of products
100% ready through projects
Limited potetial for references
• Real status
100% of products
100% ready through projects
Limited potetial for references
5. Communication Message evolution …
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5. Communication Year 2007 in detail
Conferences PR Case studies
Active start from Feb 07
+15 conferences in 2007
8 product seminars
Weak follow up of leads
• Overall
70%
Active start from Jun 07
+20 articles since Jan
Very low visibility
Long-term projects starting
• Overall
30%
Active start from Apr 07
+15 case studies created in 2007
No mass communication of successes
• Overall
50%
•
• Reasons
• Low investments, no bigger and visible actions
• Inconsistent, more ad-hoc activities
• Low internal communication resulting in no internal alignment and trust
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5. Communication Communication levels of TO2 ICT Portfolio
O2 enters IT markets
Managed Services Professional Services
Network (O2 Complete Office)
Voice (Managed PBX, IP Centrex
IT (Managed Hosting, Managed
Desktop)
TOP GOV (Agricult./Transport)
Telematics (eToll, eCall, Traffic management)
DVB-T (Digital multiplex)
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Strong ATL communication linked with PR activities
Linked ATL with BTL campaign
60% focused on „managed services
40% focused on „professional services“
PR breakfasts
Press conferences
100 articles
40% about „TO2 is ICT operator“
30% about „Managed services“
30% about „Professional services“
10 conferences with ICT subject
1 special TO2 ICT conference
1 government conference with strong ICT image
30 Success stories
20 stories about Managed services
10 stories about Professional services
10% of them as video references
Product oriented seminars
4 seminar for Managed services
Conferences PR Case studies
Customer seminars
ATL BTL
5. Communication Pillars for 2008
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6. Training
eLearning + Self training brochure
Product Seminars
• Together with all product launches
• Mandatory for all sales reps
• Big part based on self study
• Courses finished by eTesting
• Only for selected groups with biggest sales potential
• Full day dedicated for one service
• Regular every quarter
• Limited time scope to introduce the service to all sales reps
• Orientation on description, key benefits and typical sales scenarios
Ad hoc courses
Product launch month +1 month +4 month -3
• After launch training
• Mandatory for all AMs
• Fininhed with face 2 face testing
• Output as certification
Sales Certification
Part of the Sales Excellence Flagship project for 2008!
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6. Motivation
KPI
• Include Managed services in sales KPI‘s • Value of Managed services sales is 5 times higher compared to
Commodities
Special financial bonus
• 1% from new sales on sold managed services for the periond of April – December 2008
Incentives in cooperation with partners/vendors
• Special bonus for 5 first successfully closed cases to each service
Sales Fleet
• Contest for AMs only for Managed services (cooperation with channel marketing
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Steering meetings
Product
Management
Customer
Solution
Shared
responsibility
Marketing
Marketing
- Product have to be launched properly, with right prioritisaton and order according to the revenue potential, strategical importance, TO2 sales potential
- Define the exact role for account managers and presales teams
-Follow up on the Managed Services survey project. Effective usage of the collected data.
- VP implementation and training/Strategic document with detailed communication plan and its improvement in time and approach
- Detailed training plan considering prelaunch, regular and certification seminars / Include services in sales KPIs. Special motivation for sales based on new sales revenue.
1. Market Potential
3. Products
4. Delivery
5, VP/Communication
6. Training/Motivation
Shared
responsibility
- Weekly monitoring of the BP fullfilment and actual pipeline. 2. BP Targets
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Conclusions to take away?
IT and Telco convergence build by a infrastructure operator is an
idea, which is great for (and not only for) Evolving markets…
2.
1.
…It follows the shift of customers vallet from pure telco services
towards IT…
3. …and supports the launch of new services which are very
complicated to be realized in divergent world.
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Questions ??
Tomas Trejbal
Telefónica O2 Czech republic
Head of Corporate Product Marketing
m. +420 720 755 506
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