Marketing And Sales Strategies In Evolving Telecoms 2008 Tomas Trejbal
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The document discusses the convergence of telecommunications and IT as a key driver for business strategy, particularly focusing on Telefónica O2's position in the Czech Republic. It outlines the challenges faced by traditional telecom companies as customer demand shifts towards ICT services and presents strategies for adapting to this market evolution. Key takeaways emphasize the importance of managed services, customer-focused delivery models, and effective communication strategies for achieving growth in a competitive landscape.
Marketing And Sales Strategies In Evolving Telecoms 2008 Tomas Trejbal
- 1. Telco and IT convergence as the future business driver Tomas Trejbal Head of Corporate Product Marketing, Barcelona, September 24th, 2008
- 2. Agenda Who? we are What? Convergent story Why? How? what is needed to become reality Conclusions to take away 1 2
- 3. Telefónica O2 provides its clients the experience & size of a world leader… Telefonica‘s Footprint …serving 23 countries Dec 2007 2 3
- 4. Within the Czech Republic Telefónica O2 has a strong local market footprint Telefónica O2 in the Czech Republic Fully integrated Telco & IT provider Prague ČESKÝ TELECOM + Eurotel Praha in July 2006: Czech Republic 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 2007 enable us to offer you information and communication technologies (ICT) services end- to-end 2006 3 4
- 5. … and what was the question? Convergence with Telefónica O2 4 5
- 6. TO2‘s Strategic challenge 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 5 6
- 7. Current CIO pains 65% of all interviewed CIOs planed changes to their IT delivery models* within the coming two years * the mix of activities to focus on and their sourcing 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 Source: EUROPEAN CIO SURVEY - views on future IT delivery 2006, Capgemini The survey is based on one-to-one interviews with over 160 CIOs, across 12 European countries, with representation from all industries 7
- 8. Telefónica O2 – network centric ICT system integrator Customer environment PABX/LAN Managed Services and Outsourcing Communications User devices Mobile Video conferencing Laptop, Audio conferencing CDMA, HSDPA E-mail and SMS Server Hosting PABX platforms Voice and data Telephone network Data Storage PC LAN Services Archiving Services Workplaces Premises Data Centres End to end SLA Security Premium Care Consultancy 7 8
- 9. What is needed to become reality? e.g. which products will to be delivered, 3. Products which features are expected by customers etc. e.g. what has to be the sales support and 1. Market Potential 4. Delivery structure for selling managed services (higher involvement of presales…) 2. BP Targets 5. Value e.g. will be covered by the ICT Proposit. / communication strategy Communicatio n Training/ 6. e.g. what is the best way how the sales Motivation has to be trained and motivated 9 9
- 10. 1. Market potential BCG Survey 10
- 11. 2. BP Targets Corporate & Corporate & Corporate & Government Government Benefits Government for you 104 M € 77 M € 22,4 M € IT solutions IT solutions IT solutions 2006 2007 2010 BP 11 11
- 12. 3. Products Managed Services Platform LAN WAN Hosting Gold MLAN Q3 2008 GOLD MWAN Q3 2008 Managed Data Q3 2007 Silver MLAN Storage O2 Complete Office Q1 2007 Silver MWAN Q3 2008 Managed Server Hosting Q4 2007 Desktop Security Voice Managed Desktop Q3 2008 MSS Phase I Q4 2008 Managed PBX Q4 2007 O2 Computer Solution Q3 2007 MSS SG 1-8 2009 IP Centrex Q1 2008 12 12 Service already launched
- 13. 3. Products Current status: Next steps: Managed Hosting -3 out of 4 total services Managed Archive for Q2 Managed Data Q3 2007 Storage are launched 2008 Managed Server Q4 2007 Hosting Voice -Managed PBX is already -Managed PBX Phase II launched -ad on features to IP Managed PBX Q4 2007 -IP Centrex will be Centrex to fit Corporate IP Centrex Q1 2008 launched in Q2/2008 customers Desktop -O2 PC Solution was -Managed Desktop will be Managed Q3 2008 launched in September 07 launched in Q3/2008 Desktop O2 Computer Q3 2007 Solution 13 13
- 14. 3. Products Security Current status: Next steps: -Only Service Group I. is -To launch the full scope MSS Phase I Q4 2008 going to be launched in of services 2008 MSS SG 1-8 2009 -no revenue is expected from this services. LAN -O2 Complete Office is -Silver and Gold Managed GOLD MLAN already launched LAN are going to be Q3 2008 Silver MLAN launched in Q3/2008 -Project based O2 Complete Q1 2007 business(only for limited Office number of customers) WAN -During 2008 we will offer -Silver and Gold Managed GOLD MWAN Q3 2009 WAN are going to be Silver and Gold Service Desk, which are partly launched in Q3/2008 Silver MWAN Q3 2009 similar to MWAN 14
- 15. 4. Product Delivery „Push Teams“ From Telco oriented sales … to teams, which are able structure to do consultative selling Solution Specialists Nationwide logistic coverage Dedicated Dedicated Key Account Sales Manager Support Nationwide dedicated „Gold“ dealers Sales Team Presales Team • Main purpose of „Managed Service Push Program“ is to define rules, processes and responsible persons in order to significantly improve selling Managed Services 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 15
- 16. 5. Value proposition Main benefits for customers Managed Managed Managed Managed Managed Managed WAN LAN Desktop Voice Security Hosting 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. 16 16
- 17. 5. Value proposition Lower TCO LOWER TCO BETTER CASH FLOW CONTROL • Pay-per-use concepts • Managed services don‘t generate any • No capex payments CAPEX • No operational and admin costs • Services are paid from operational budgets • Customers don‘t care about the technology lifecycle Buy In-house tech. OPEX MB&R Conn. Operation MDS and Adm. MSH OPEX CAPEX Integrated SLA Real Business case for Retail client with 500 employees 17 17
- 18. 5. Value proposition Flexibility INVESTMENT INTO NEW BUSINESS SUPPORTING NEW BUSINESS OPPORTUNITIES INSTEAD OF OPPORTUNITIES INFRASTRUCTURE • You buy only the capacity which you • Service increase is done fluently according actualy need. to the actual customer requests • Increases are fluent according to the • There is no technology or staff unused requests. • No complicated and strategic planning is • You always use 100% of the bought necessary capacity. Unused capacity Real used capacity 18 18
- 19. 5. Value proposition Flexibility EASY MANAGEMENT OF SEASONAL FOLLOW UP THE CYCLES OF AND PROJECT BASED JOBS BUSINESS • The needed capacity is easy bought. • You decrease the subscribed capacity and • Seasonal activity variances are covered power by 20% only for the necessary time. • You have no unused technology, or IT • After this period the capacity is decreased staff capacity to the bottom level. 9 19 19
- 20. 5. Value proposition People and Quality management LESS HR ISSUES GLOBAL SLA FROM END TO END All the staff costs are included in the Service availability and operation are service guaranteed Technical specialists are shared among Service has a defined SLA more customers = the capacities are used parametersparameters and SLA (Service effectively. Level Agreement) Saved internal headcount All processes of the delivered services are Additional competence according to ITIL standards. 20 20
- 21. 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 21 21
- 22. 5. Communication Message evolution … 2007 2008 2009 • Message • Message O2 enters IT markets O2 is a trusted ICT provider • Content of message • Content of message • Content of message • Change of strategy • Focus on proper launch of • Focus on multiplication of towards ICT all product groups success stories • Introducing our plans • Helping to generate leads • Behaving as established market player • Real status • Real status • Real status 10% of products 70% of products 100% of products 70% ready through projects 100% ready through 100% ready through Limited potetial for projects projects references Limited potetial for Limited potetial for 22 references references
- 23. 5. Communication Year 2007 in detail Conferences PR Case studies Active start from Active start from Active start from Feb 07 Jun 07 Apr 07 +15 conferences +20 articles since +15 case studies • in 2007 Jan created in 2007 • Reasons 8 product Very low • Low investments, no seminars visibility bigger and visible actions Weak follow up Long-term No mass • Inconsistent, more of leads projects communication ad-hoc activities starting of successes • Low internal communication • Overall • Overall • Overall resulting in no internal alignment and trust 70% 30% 50% 23 23
- 24. 5. Communication Communication levels of TO2 ICT Portfolio O2 enters IT markets Managed Services Professional Services Network (O2 Complete Office) TOP GOV (Agricult./Transport) Voice (Managed PBX, IP Centrex Telematics (eToll, eCall, Traffic management) IT (Managed Hosting, Managed DVB-T (Digital multiplex) Desktop) 24 24
- 25. 5. Communication Pillars for 2008 Conferences PR Case Customer ATL studies seminars BTL 10 conferences PR breakfasts 30 Success Product oriented Strong ATL with ICT subject Press stories seminars communication conferences linked with PR 1 special TO2 ICT 20 stories about 4 seminar for activities conference 100 articles Managed Managed services services Linked ATL with 1 government BTL campaign 40% about „TO2 conference with is ICT operator“ 10 stories about strong ICT 30% about Professional 60% focused on image „Managed services „managed services“ services 30% about 10% of them as „Professional video references 40% focused on services“ „professional services“ 25 25
- 26. 6. Training month -3 Product launch month +1 month +4 Product eLearning + Self Ad hoc courses Sales Certification Seminars training brochure • Regular every • Together with all quarter product launches • Only for selected • After launch training groups with biggest sales potential • Limited time scope • Mandatory for all • Mandatory for all to introduce the sales reps AMs service to all sales • Full day dedicated for reps one service • Big part based on self • Fininhed with face 2 study face testing • Orientation on description, key • Courses finished by • Output as benefits and typical eTesting certification sales scenarios Part of the Sales Excellence Flagship project for 2008! 26 26
- 27. 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 27 27
- 28. Steering meetings -Follow up on the Managed Services survey Shared 1. Market Potential project. Effective usage of the collected data. responsibility - Weekly monitoring of the BP fullfilment and Shared 2. BP Targets actual pipeline. responsibility - Product have to be launched properly, with right prioritisaton and order according to the revenue Product 3. Products potential, strategical importance, TO2 sales Management potential - Define the exact role for account managers and Customer 4. Delivery presales teams Solution - VP implementation and training/Strategic Marketing 5, VP/Communication document with detailed communication plan and its improvement in time and approach - Detailed training plan considering prelaunch, regular and certification seminars / Include Marketing 6. Training/Motivation services in sales KPIs. Special motivation for sales based on new sales revenue. 28 28
- 29. Conclusions to take away? 1. IT and Telco convergence build by a infrastructure operator is an idea, which is great for (and not only for) Evolving markets… 2. …It follows the shift of customers vallet from pure telco services towards IT… …and supports the launch of new services which are very 3. complicated to be realized in divergent world. 29 29
- 30. Questions ?? Tomas Trejbal Telefónica O2 Czech republic Head of Corporate Product Marketing e. [email protected] m. +420 720 755 506 30 30