Team 2 - Final Project Presentation

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    Evolution of CRM practices and systemsin the Indian Cellular Telecom Industry

    Team 2

    Avnish Kamal Kshatriya

    Kavitha Narayanan

    Kingshuk Biswas

    Siva Subramanian M.C

    Vivek M Dipali

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    The Indian Telecom Industry

    One of the fastest growing cellular

    markets in the world in terms ofnumber of subscriber additions

    19.35 million in 3 months (April to

    June 2007)

    Expected to reach total subscriber

    base of about 500 million by 2010 (i.e.,

    more than one phone for every

    household)

    Annual growth rate of the telecom

    subscribers 47 percent (200607)

    More GSM subscribers than fixed-line

    subscribers

    Indian Telecom Industry Facts

    Total telecom subscribers 225.21

    million (June 2007)

    Tele density 19.86 percent (June

    2007)

    Number of new mobile subscribers

    added every month 7.34 million

    (June 2007)

    ARPU for GSM USD 6.6 per month

    Telecom equipment market USD

    17,100 million (200607)

    Handset market USD 4,750 million

    (200607)

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    Drivers of growth

    Structural Reforms to Accelerate Economic Growth

    Proactive Policies: Key to Future Growth

    Cellular Subscribers and Revenues for Robust Growth

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    Key Trends in Telecom Industry

    Landscape Higher acceptance for wireless services.

    Shift from Supply-side economics to demand-side economics.

    Built-up of overcapacities.

    Lower barriers to entry (especially foreign players)

    Attractive offers - higher customer switching Telecom based commerce & messaging (banking, trading,

    SMS etc)

    Convergence of technologies.

    Rise in customer expectations: price, performance, networkcoverage

    Strategic partnerships for higher share in value-chain Evolution of packaged CRM application vendors and system

    integrators

    Evolution of business intelligence & analytics due to nextgeneration data processing and handling capabilities

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    Challenges in Telecom Industry Unprecedented business challenges as a result of industry

    consolidation and technology convergence.

    Increased competition - Lower prices.

    Demand for enhanced customer experience. High rate of customer churn.

    Saturated markets leave little room to maneuver, debts stiflecapital investment, and rolling out new services is oftenprohibitively expensive.

    But delivering on new strategic goals profitability, lowerchurn, higher customer satisfaction, reduced costs, andcompetitive edge is a must.

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    Business Drivers for CRM

    implementation in Telecom Industry CRM implementation provides a single-view of customers.

    High operating leverage.

    Relatively lower switching costs for customers.

    Approximately 50% of customers are profit-drains. CRM implementation could help differentiate the quality of

    services provided.

    Price wars.

    Marketing function could use existing information within

    CRM. Fierce competition within telecom industry.

    Infrastructure allocations made by government

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    Existing CRM Practices in Telecom

    Industry

    Existing CRM applications provide communications serviceprovidersincluding local, long-distance, broadband, cable, satellite,

    wireless, Internet, and media content providerswith comprehensivefamily of multichannel modules that enable them to create a singlesource of customer information that makes it easier to sell to, marketto and service customers across multiple channels, including web,call centres, field sales etc

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    Existing CRM Practices in Telecom

    Industry - Modules Web Module

    E-Mail Response Module

    Call Centre Module

    Account Management Module

    Profiles Module Agreement and Entitlement Module

    Assets Module

    Billing Module

    Sales Module

    Field Service Module Marketing Module

    Partner Relationship Management (PRM) Module

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    Prevalent packaged CRM Solutions

    Siebel e-Communications Business application is the mostcomprehensiveCRM solution available in the market.

    Other solutions being used by this industry include Clarify, Vantive,SAP etc.

    A few service providers who have developed their own CRMsolution coupling it tightly with their other systems.

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    CRM Permeates across

    Organizational Operations Information systems (IS) personnel are charged with the primary

    responsibility for technological improvements associated with otherfunctional areas, such as sales, marketing, customer service, orgeneral management.

    IS professionals recognize the need for the IS department to workin harmony with the diverse organizational units involved inimplementation.

    Inter-functional cooperation is critical to achieve effective CRM

    solutions.

    Pursue common goal ofCRM Implementation.

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    Implementing CRM, Successfully.There are five specific steps that can make the biggest impacton CRM success

    Step 1: Use CRM to Clarify and Communication BusinessGoals

    Step 2: Integrate CRM Tools into Communication Systems

    Step 3: Offer Routine Training on CRM Software

    Step 4: Leverage Hosted CRM Tools for ImprovedWork/Life Fit

    Step 5: Benchmark CRM Success

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    Recommendations

    Casinos

    Harrah's "Total Rewards" loyalty program entitles members to entertainment, food and

    hotel vouchers. In return, the casino operator is able to collect those customers'

    spending and usage patterns and combine them with demographic information to

    identify its valuable customers.

    RetailOnline chat can help motivate customers to use a Web site. They know someone will be

    there to help if they have problems.

    BankingDon't bulldoze people into Web-based self-service. Instead of charging a fee for using a

    call centre, a more gentle approach is to disconnect its toll-free number.

    Airlines

    Airline reservation systems are at least as complex as telco back offices. Yet that industry

    has managed to section off Sabre so that customers have access to flight information

    without having to go into the guts of the system.

    Financial ServicesImplement CRM systems incrementally. American Express deployed its CRM strategy for

    under $1 million, rolling it out in a few key markets first.

    The telecom industry can learn from other industries with regard to

    CRM practices.

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    Thank You!