BH Telecom`s corporate strategy for 2012 - 2014

BH Telecom’s
corporate strategy for
2012 - 2014
Revicon, Dubrovnik 8-9 december 2011.
[email protected]
Following the Regulatory changies in
the EU
Services Directive (90/388/EEC)
extended to: Satellite (94/46/EC)
Cable (95/51/EC)
Mobile (96/2/EC)
Full competition (96/19/EC)
Cable ownership (1999/64/EC)
Liberalisation Directive
Framework Directive
ONP Framework Directive
(90/387/EEC amended by 97/51/EC)
Licensing Directive (97/13/EC)
GSM Directive (87/372/EEC)
ERMES Directive (90/544/EC)
DECT Directive (91/287/EEC)
S-PCS Decision (97/710/EC)
UMTS Decision (99/128/EC)
European Emergency Number Decision (91/396/EC)
International Access Code Decision (92/264/EEC)
ONP leased lines Directive
(92/44/EEC amended by 97/51/EC)
TV standards Directive (95/47/EC)
Interconnection Directive
(97/33/ EC amended by 98/61/EC)
Voice telephony Directive (98/10/EC)
Telecom data protection Directive (97/66/EC)
Authorisation Directive
Access & Interconnection
Directive
Unbundled local loop
Regulation
Users’ Rights Directive
Data protection Directive
The low and regulatory framwork for
telecom sector in the B&H since 2000.
CONCIL OF MINISTARIES OF B&H:
• THE LAW OF COMMUNICATIONS
• POLICY IN THE TELECOMMUNICATION SECTOR
• POLICY FOR INFORMATION SOCIETY DEVELOPMENT
• STRATEGY for INFORMATIZATION SOCIETY OF B&H
• AGENCY FOR ICT & INFORMATIZATION DEVELOPMENT
COMMUNICATION REGULATORY AGENCY:
• RULES AND TECHNICAL SPECIFICATION FOR
LIBERATION OF TELECOM SECTOR IN THE B&H
• LICENSES FOR OPERATION (GSM 141 MIL.UMTS 30 MIL
ETC.
Telecom market in B&H is fully liberalized
Licensed operators
• Fixed network operators licensed
3
• Alternative operators with int. call
11
• Mobile network operators licensed 3
• network operators
licensed 26
• IS Providers
licensed 74
• Cable operators
licensed 42
• MVNO on the way!
Total 132 operators on the telecom market
Relationship with shareholders
Government of FB&H is owner 90% of shares
and has the most significant impacts to the
company.
3-times BoS and BoM are changed in one year!
Government of FB&H has influences trough the
norms and Low such as:
• The Low of commercial societies,
• The Low for public enterprises
• The Low for public procurement,........
Doas government make environment for ICT?
BH Telecom fulfilled 85% of Strategy
goals for the 2008-2011.
• Technological transformation (3G, fixed network
BB, NGN all IP solution)
• Service transformation (IPTV, 3-play services
etc.)
• Marketing transformation (market oriented
company)
• Organization alignment for service oriented
company,
• IT integration to reduce of all kind of expenses.
BH Telecom is Lider in the period of
2008-2011
Ferst place in the B&H per profit:
- Total profit average 157 Million of KM/year.
- Dividents payed 490 Mill. + taxe/prof. 110 Mill.
Second place in the B&H per investment:
- Total investment 150 Millions of KM/year,
- fond of amortization 110 Mill. of KM/year.
Theard place in the B&H per revenue:
- Total revenue average 605 million of KM/year
How will we adapt to profit from new
opportunities?
Over last ten years three major product breakthroughs happened
in the telecom world that changed environmental completely.
• Fixed broadband, becomes for Internet usage very efficient
tool. Fixed broadband enabled all kinds of services by
numerous providers.
• Mobile broadband, a surge of business that is driven by
applications. Who drives the mobile broadband market? It is still
between operators, devices and applications providers.
• IDTV, blurring borders in the telecom-media value chain.
Traditionally, at least we have three key roles in the media
value chain to bring television content from the creation to the
customer: producer, aggregator and distributor.
• But now voice and fixed internet services and even revenues
from television are stagnating or markets in the world. as per
price and tariffs declining.
Telecom as a new media business
How will we set our strategy to stay as a
Lider in the next period 2012-2014
Life is full of decisions. When did we last
make decision that was easy?
Whether to start a day with tea or coffee is
one of life´s simpler questions.
• How we will make decisions for corporate
strategy in the new environment?
• The art of making decisions involves finding the
right balance between expertise, experience and
feel for slution.
Focusing on strength
The environment is changed around the telecom
operator, including the customer needs, the
competitors and even the regulators.
Changing our business model based on what we are
currently good at.
We have to find:
• How flexible is our organization on the changes?
• How flawless are our people in implementing our
strategy?
• How quickly can we get them to adapt to changes of a
new strategy?
• A shift in the business model requires more than just
cosmetic changes.
At the heart of any competitive strategy
lies the Customer Value Proposition
Customer is in the focus of our interest
• Where do we find potential customers?
• Who makes up our target group?
• Which communication channels are our
customers receptive to?
• What consumer behavior is charasteristic of our
cusomers?
• How can we reach our target group of
customers?
Do our customers understand our messages?
Customers centricity approach
Marketing as a direction to develop brand equity and lead the
organization in identifying and focusing on market segments that
will deliver the most profit.
Rethink customer experience
• The customer experience of the company has the
potential to be a real differentiator over the longer
term.
• To capture customer experience it is important dayto-day interactions.
• All of this day-to-day interaction strongly influences
the perception and loyalty of customers.
• This includes response quality in call centres, skills
of stuffs in retail, speed of technical repair and other
measures. For the company differentiation opportunity
might lie in how products are brought to the customer.
Customer satisfaction
• Nearly all companies have a program in place to
measure “Customer satisfaction”.
• Yet just satisfaction is not enough. A satisfied
customer is not necessarily a loyal customer.
• To obtain customer loyalty we need “delighted
customer”. Delighted customer will become part of
our “marketing” as they spread positive
recommendations about us.
• And in online social media, delighted customers can
publish their positive recommendations to a much
large audience. Unfortunately, the same is true for
when they are unhappy.
Planing management
Planning management means: corporate strategy,
business strategy, concept of performance
measuring and operations.
For preparation of the strategy we have made:
1. Strategic Analysis Report of the current external
market positioning and internal capabilities (as per
„Deloite“ methodology).
2. Benchmarking for operational efficiency of BH
Telecom 2011.
3. BH Telecom Strategy for 2012 – 2014 and finale,
4. Business Plan for the next three years (2012-2014).
The implementation of a strategy often fails because
leaders do not focus on the critical issue of aligning
the people to the strategy and processes.
Aligning the people to the strategy and
the processes
The alignment of people and
processes takes time.
Every adjustment of strategy
results in change. And for many
people, change creates a high
degree of stress.
And people tend to have “their
own logic” about making changes.
In fact, they often take a lot of time
to adapt to the changing strategy.
Plan is systematic and formalized flow of
the business processes (Mintzberg H.)
Are We Have Difficulties in the
Implementation of Strategy and Change?
It Could Be All about Leadership!
• It involves setting a strategy and importantly, getting
that strategy implemented.
• At our focus is on helping leaders to achieve the
implementation of strategy and achieving results.
• Implementation of strategy is a key responsibility of
leaders.
• It is really hard part, how to get the people in the
organization to implement the strategy!
The questions below reflect what people think
every day on the shop floor
Planning the Implementation of
Strategy
• Strategy needs to be broken down into several
key projects in order to succeed.
• The key projects that support the strategy need
to be the priority and get the time and resources
needed to succeed.
• The value of the Strategy House is having a
summary of our overall strategy implementation
and key projects plan on one page.
• The Strategy House drives all the activity in the
company so people can understand it and
manage with it. .
The Strategy House
A 4-Step Model to Get Our People to
Implement the Strategy
On the follow, we look at the areas of alignment our need to work
on if we want our organization to be able to achieve a strategy:
1 Putting the Customer Value Proposition at the Centre of
Everything We Do. Choosing among alternatives to create a
sustainable and differentiating competitive advantage
2 Enabling and Motivating People to Implement the Strategy.
Putting in place the management and leadership practices that
inform, enable and motivate people to achieve the strategy
3 Making Sure the Processes and Metrics Support the
Strategy. Knowing what we want to do and how, and
configuring the organization’s system to do it
4 Selecting and Starting Projects that Support the Strategy.
Choosing the right portfolio of projects in support of your
strategy, and managing them effectively
Eight steps for making changes
Eight steps for making
Implementation
changes
Staff Animation
Create climate
What kinds of business and
management skills are needed?
.All managers need to develop skills in the areas to
contribute high value to their companies as:
• Business Management Skills - For Business strategy
• Operational Management Skills – For Getting things
done efficiently and effectively
• People Management Skills – For Getting the people
on our team to deliver top performance…
• Network Management Skills – For Communicating to
senior management
• Specific Skills for Staff Function Managers – For
Creating Business Value
When do ideas die?
1. When too many people attack the idea.
2. When there is no enthusiasm or passion for the idea.
3. When the cost of trying out the idea is considerable and there
are other priorities demanding funds.
4. When the idea appears to be risky.
5. When there is no one senior enough to champion the idea.
6. When an idea does not seem feasible at first appearance.
7. When there are personality clashes between those promoting
the idea and those opposing it.
8. When the idea is seen as ‘the same as’ an old idea or
something that is already being done.
9. When a change of circumstances or strategy lessens the value
of the idea.
10. When the idea has been tried and has failed.
What are the priorities?
According to a recent study by the Boston Consulting Group
(BCG), companies in the new economy will need to be flexible
and adaptable in order to experience success.
1. Develop Our Future Leaders
2. Managing Talent
3. Engaging Our Employees to Implement Strategy
4. Measuring workforce performance
5. Improving performance management and rewards
6. Managing labour costs
7. Delivering on recruiting
8. Transforming HR into a strategic partner
It is suposed
BH-Telecom
will stay the
best
Company in
Bosnia &
Herzegovina!