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The presentation discuss the key element of defining ROI in relation with the WI-Fi monetization pyramid. It also suggest how Train Operator companies can increase the ROI of their investment in free Wi-Fi by complementing the baseline investment with two additional layers of value
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The impact of Wi-Fi deployments: Defining
ROI?
Definition of 'Return On Investment - ROI'
A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio.
In other words
ROI = Gains from investment – Costs of investments
Costs of investments
…and Gains reflect the efficiency from a broader
perspective
So, - the clue is to build enough GAIN to support a
good ROI on the implementation
Let’s have a look at GAIN & the Wi-Fi monetization pyramid
Defining ROI: The Wi-Fi monetization pyramid
Value-
added
services
New Revenue
BaselineInvestment with compelling ROI
*CISCO; Wi-Fi: New Business Models Create Real Value for Service Providers
BASELINE Story from T.O.C
“We wanted to improve customer satisfaction by introducing free Wi-Fi. High passenger satisfaction leads to bonus schemes from the authorities.
Wi-Fi was seen as a quick win for us!”
Source: Aporta Digital T.O.C Partner
2 years after implementation
84% of passengers
dissatisfied due to unstable
internet access!
2 years after implementation
84% of passengers
dissatisfied due to unstable internet access!
Baseline
Investment with compelling ROI
2 years after implementation
84% of passengers
dissatisfied due to unstable internet access!
Baseline
Investment with compelling ROI
Passengers are writing emails for more infotainment as the Internet does now work!
2 years after implementation
84% of passengers
dissatisfied due to unstable internet access!
Baseline
Investment with compelling ROI
Passengers are writing emails for more infotainment as the Internet does now work!
Acknowledgement? #
”On board Wi-Fi is a stable and solid add on that
creates high passengersatisfaction”
Acknowledgement #
”On board Wi-Fi is a stable and solid add on that
creates high passengersatisfaction”
New Layers needs to be considered to increase GAIN for this T.O.C
Value-
added
services
New Revenue
*CISCO; Wi-Fi: New Business Models Create Real Value for Service Providers
The path to Wi-Fi profitability and business-model prioritization means looking at four key areas:
• 1. Market evolution and customer feedback: Where is the Wi-Fi needs heading? What are the key opportunities and challenges? How do we best position for success via alternative off line consumption models?
• 2. Monetization models and offers: What are the best alternative Wi-Fi monetization models and offers? What are the Wi-Fi products and associated services that customers want? What are the priorities and roadmap timing for alternatives?
• 3. Economics and business model: What is the potential market size and adoption? What are the expected business effects? What are the economics of the new services and key levers and sensitivities?
• 4. Technical architecture and capabilities: What is the technical architecture to deliver the strategy? What capabilities and opportunities does the architecture offer? What additional business and operational capabilities are required?
Services to prioritize?
Value-
added
services
New Revenue
In other words: we at Aporta Digital & partners believe in
Strong ROI = Value-
added
services
New Revenue
Baseline
Investment with compelling ROI
Build a Wi-Fi strategy that includes all elements in the Wi-Fi monetization pyramid. This is essential to avoid challenges
with the baseline investment and to increase customersatisfaction along with the investment
*CISCO; Wi-Fi: New Business Models Create Real Value for Service Providers
THANK YOU!Jesper Bang-Olsen, CEO Aporta Digital, [email protected]
