The marketing strategy of business network transformation

The marketing strategy of crinkle ne dickensrk renewalBy definition, caper Network Transformation (BNT) is a marketing strategy in which companies depart adopt a opposite path which normally companies would follow in order to be more than(prenominal) competitive in this dynamic business world. The two major phenomenons that atomic number 18 well-nigh consequential from any federations perspective would be faster technological innovation with respect to products assists and being a reliable supplier.Extension simulation Companies adopt the extension model to spread out their business to gain new piece of business with increasing demand.The following argon the important aspects of Business Network Transformation Value proposition It is important to explicit the type of products or servings the company provide to its clients. Moreover, it gives a unparalleled value between a business and prospects of the business. It is also a strategic asset which forms a basis for Ma rket and its strategy , Business Planning , furnish and competitors strategy , motions, Customer service and Pricing .Customer Interface Target customer This describes how the customer segments are targeted to achieve a profitable growth.Distribution manoeuver This describes how the product applyes the customer by various routes.Relationship This explains how the firm is linked with the customer with its various customer segments.Infrastructure Management Value configuration It specifies the way in which the various activities and resources of the business are arrangedCore competency This defines how the core competencies required in a business model are executed.Partner meshing This describes how to collaborate with business partners to harvest the benefit out of it.Normal way of running a business is to extract value from companys network which is a tangible asset that bridges the enterprise and consumers in terms of its connectivity capabilities. However, as explained in t he definition, now the companys started adopting different way of doing their business by adopting different models whereby value is extracted from intangible assets corresponding e-commerce initiatives, targeted advertising that will eventually generate service fees from performed transactions or commissions. This methodology of obtaining value from intangible assets will for certain outperform tangible asset - base connectivity revenues.The two terms, Present Mode of Operation (PMO) and Future Mode of Operation (FMO) are so vital in present-day(prenominal) business world. What is required from enterprise point of view is to have additional business models which will a best fit for enterprises Future mode of operation that leads to increase in revenue growth of the company and reduction in companies operational expenses by measuring the intangible assets of the business.Alcatel-lucent, a Tele- communication service supplier company has been taken as an example.The company has i nvested in new IP, IPTV and IMS technologies in order to compete with other service providers who have expanded their network to overlap of voice, data and video services across fixed, wireless and satellite networks.In order to sustain in the competition, some of the service providers are making their menses services less expensive, faster and better.Forming new Business Transformation Strategies are inevitable in current business scenario. However, there hold out some inhibitions in the minds of service providers that these rapid changes in the business model might disturb current business models revenue. It has been estimated that voice and data subscription services contributes 80% of current revenue.It could be seen that a level of saturation is reached for the tralatitious model. Due to this saturation limit , the company Alcatel-Lucent decided has decided to go in for the advanced business model not only withstanding to allow the service providers to tap new revenue but to distinguish themselves from competitors by subscription-based businesses.Service providers have to perform critical sagacity of Tangible and intangible assets within the legal boundaries in order to evaluate current business model.Return on Investment (ROI) is a main focal point for the service providers which shadow be achieved by tactical assets sellingReal-world Business Model InnovationsDue to market demand in communication intentness there is increasing pressure from service providers to adopt new business models in order to penetrate through the existing market.The following are Business models in the fields of innovationSponspered communicationsM-bankingBroadband Community CentresHosted PlatformsWholesalingOutsourcingAsset-sharingContent Aggregation and BrokeringTargeted AdvertisingUGC and CommunitiesFulfilmentE-Commerce and m-CommerceSponsored CommunicationsAdvertising through funded calls is one of the important innovations in the field of telecom. There is appreciable change foreseen while comparing the conventional subscription model. Sort of incentives in the form of more talk time and give lesser are the added benefits ext s annihilate awayed to the subprogramrs if they accept to receive advertisement messages. Initially this methodology was put in to use by a UK Based company who manages to offer these sorts of benefits to targeted customers in the age group between sixteen to twenty four year of people, eventually this approach has yielded a reduction in supplant user access approachs to a range between 20 to 50 %M-banking Due to various socio-economical reasons , it back tooth be seen that in most of the countries may not be having basic banking service to its people , on contrary using mobile faculty is so common in most of the countries . It would be quite an difficult and rather expensive to manage transactions for especially for those having smaller accounts through the existing banking system due to inadequate number of branch es exist in nations where population explosion is on the drive, especially in the rural areas. These shortcomings can be addressed through the M-banking which uses mobile technology.The technological advancement rather the strategy in the Mobile industry is to develop Mobile pre-paid payment engines that manage real time small transactions by the use of SMS (Short pithedness Service) which is really a less expensive measure to the Mobile users.This service of Mobile banking has been very successful in many countries especially in ontogenesis countries like India and China. A classic example can be quoted from a leading service provider of Telecom situated in Philippines , named as spheric Telecom, who introduced a service called G-Cash service which has got electronic valet adroitness through which the user can send and receive electronically and payments can be make through short message texting . Due to its easiness in use it has been predicted by World Resource Institute t hat due to its demand, with in 5 eld Mobile banking services will be extended to billion customers.Broadband Community Centres Singapore is one of the typical examples for this feature. Community centres provide Internet facility to its residents there by offering services like e -government Tax payment, application forms, etc . In some countries like Australia, Broad band community centres make bold the roles of Bank branches or government agents. Basically these centres serve the residents as a platform in which more industries and social organizations have a greater reach to the people, which become a cost effective measure for the people as well.Hosted Platforms This approach is implemented by Alcatel-Lucent company in an African country Senegal where it hosted a mobile data centre where the service providers from four other parts of the world make use of it by providing GPRS (General Packet Radio Service) applications that run at a speed of 115 kb/s. Due to this service facil ity it becomes possible for the service providers are able to provide services to the end user at much shorter time period of 3 months. The main advantage in this business model can be seen from the fact that the service providers those who are in this need to pay to the host company Alcatel-Lucent as and when they use the platform. This is indeed a real benefit for countries which are under developed like Africa where the country may not sufficient users to attract Telecom companies to invest on stand-alone platforms to deliver advance services in the arena of Telecommunication in an efficient and cost effective way.Wholesaling This type of approach is followed mostly in the developing countries where the network operator resells excess net work might to a retail service provider VNO (Virtual Network operator) who in turn offer services to consumers or commercial institutionsOutsourcing This approach becomes more common in most of the countries. Day to day work functions and manag ing the resources will be given to an outside supplier. The business functions that will be offered will be diverged in nature. The external supplier will take care of related work functions of Data storage, financial accounting, Supply Chain management and HR functions like pay couch etc . The major advantage of outsourcing lies on the reduction in the total cost of ownership and extending timely service to the consumersAsset-sharing The main advantage of this model is sharing co-occur tangible assets between services providers operate same networks in order to eliminate infrastructures that are overlapping among them. Due to this asset -sharing model the service providers can expand the area of coverage and reduce impact on environment to a greater extend.This approach again reduces the total cost of ownership and more innovative services can be provided to their consumers.Content Aggregation and Brokering The main driver for this business model approach is the concept of UGC ( User-generated content) and premium content. The user can directly purchase copy righted multimedia files through video-on-demand and pay-per-view models. What is important in this model is to ensure the integrity of the content that is purchased by the user by adopting digital rights management technology to verify the authenticity of the content.Targeted AdvertisingThis type of model encompasses interactive connection between people and the type of brands they are looking for through multimedia screens like TV, Mobile and Computer etc Due to the current technological advancements, these multimedia sectors become the essential revenue generating opportunities for the service providers.Premiums paid by the advertisers in this multimedia will add on to the revenue growth to the service provider which is quite substantiated.UGC and Communities This model is ontogeny day by day in the field of communication. The examples for this model are social network sites like Face book. MySpace, people information sites like TripAdvisor and YouTube. In these user is allowed to generate multimedia content which is distributed instantaneously to the other users. Once the content is created in these applications it can be amended, rated and commented by many group of users.The following are the common types of UGC that includes new sites, motion-picture show sharing sites, service review sites, trip planners, social network sites, boards, blogs and gamming sites.In this concept, forums are used as the platform to share the users knowledge, experience on a topic of interest. The industry which has reaped the benefits out of this model is the broadcasting industry which has gained momentum due to persistent consumer interaction and better service orientation. Another mile play off in this model is getting the users feedback directly by introducing the option of voting via internet or mobile device so that pulse of the user is mensural instantaneously.Fulfilment This model ti es the service provider and the user in terms of billing relationship leverage once the transaction is completed and service is delivered to the end user on third parties behalf. A typical example would be downloading a music album to mobile phone via internetE-Commerce and m-Commerce This model envisages an electronic transaction in terms of buying and selling operations in the mobile services.The following electronic transactions are the typical examples for this model, consumers can use the wireless network infrastructure for Internet banking electronic funds transfers, Internet Marketing, SCM (Supply Chain Management), on line trading and electronic data interchangeM-Commerce provides the end user an opportunity to pay for goods purchased using their mobile device. In other words, mobile phones are considered to be Virtual Credit Card with the usual securities in place to avoid tampering in any sort.It can be inferred from the above business model that the main drivers are reduc e operational cost and increase top-line revenue. Either of the above action will lead to increase in business margin.Consultative Approach to Business TransformationIt is also a newer approach being followed by Alcatel-Lucent to its service providers there by suggesting a right strategic direction by developing a structured and consultatory frame work in the form of simple serve wellStep 1 Identifying our customers PMO.Step 2 Understanding the customers top priorities and objectivesStep 3 Identifying the customers think FMOStep 4 Identifying the appropriate products, services and solutionsIt is anticipated for a failure if the steps are not followed which may lead to contradict impact to the business results in a increase in the cost and decrease in the revenues and low margins. Failure to do so can result in negative consequences in the form of a negative spiral of growing costs and flattening or decreasing revenues and margins.The real switch of PMO to FMO will happen af ter the service providers going through a transition phase in which the cost for operations will certainly increase due to deployment of new IP based system in terms of legal maintenance .Comprehensive approach to transformation has yielded good result for the enterprise.Strategic Impact AnalysisThe company Alcatel-Lucent has worked with some(prenominal) kinds of operators the modernizers and the comprehensive business transformers. . Not with standing to the fact that both operators yielded good result , however their strategies will be different . The operator Modernizers gives at most importance to technical details with tactical execution, where as the another operators emphasis is on emerging business needs and implementing strategic objectives .Creating ConvergenceThe challenges are growing as the technology grows, hence the strategies being follow by the enterprises and service providers should take a realistic and feasible approach in order to run for forward with the t ransformation initiatives that nurtures Consumer relation and profitable growth . Hence creating convergence becomes so vital on the current business environment..The following layers should be jump together in order to bring IT and network environments connected at each and every layer of the networkUser exposureBusiness processService abstractionApplicationPhysical / Technical baseIt is not expected to have one-size-fits-all approach to transformation, however it is imperative to have each transformation initiative evaluated based on respective strategic direction thereby assessed according to its own characteristics and further tailored to meet the need .In this context what is more important is to have clear understanding of Present Mode of Operation (PMO) and to develop strategies to reach required Future Mode of Operation (FMO).Ensuring successful transformation also means finding a knowledgeable, committed network integrator partner that can act as a trusted adviser every st ep of the way. The best partner brings expertise and experience in IT and networks, as well as a comprehensive services methodology built on best practices and experience to mitigate risk, minimize complexity, capture new revenue, reduce costs, and position organizations to reap the business transformation benefits going forward.Today, the service provider delivers traditional voice and data services while introducing new, innovative media and entertainment offerings that generate new streams of revenue over a common network infrastructure. In addition, the service provider is reaping full advantage from Alcatel-Lucents field-proven solutions and integration expertise, enabling the provider to meet its strategic network and business transformation goals as well as commercial and operational objectives.ConclusionIt can be seen from the strategies implemented by the company Alcatel-Lucent clearly exemplifies that business growth was seen by Business coordination, adopting network tran sformation and extending customer services.It is imperative that the organization and the service providers should start adopting non-traditional ways to monetize their intangible assets e.g. community, location and billing relationship that could be influenced to enhance Consumers trust and confidenceThe strategies adopted by their service providers determine the emerging demands and define key business drivers that will lead to transformation.Furthermore, these strategies pave path way for a market loving situation by adopting new technologies