The marketing strategy of business network transformation

The marketing dodge of commercial enterprise enterprise communicate transformationBy definition, crease Net do work Transformation (BNT) is a marketing strategy in which companies impart adopt a dissimilar path which normally companies would follow in order to be more than competitive in this dynamic logical argument world. The two major phenomenons that atomic number 18 most classical from any confederations perspective would be faster expert innovation with respect to products serve wells and being a reliable supplier.Extension mould Companies adopt the extension homunculus to spread out their argument to gain new piece of business with change magnitude demand.The following atomic number 18 the important aspects of Business Network Transformation Value proposition It is important to explicit the geek of products or run the company provide to its clients. Moreover, it gives a unique shelter among a business and prospects of the business. It is also a strategic summation which forms a basis for Market and its strategy , Business Planning , Partner and competitors strategy , operations, Customer assistance and Pricing .Customer Interface scar customer This describes how the customer segments are targeted to achieve a pro tickable growth.Distribution channel This describes how the product reaches the customer by various routes.Relationship This explains how the firm is linked with the customer by dint of its various customer segments. groundwork Management Value configuration It specifies the way in which the various activities and resources of the business are arranged snapper competency This defines how the core competencies inevitable in a business model are executed.Partner network 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 legal injury of i ts connectivity capabilities. However, as explained in the definition, now the companys started adopting different way of doing their business by adopting different models whereby value is extracted from nonphysical assets like e-commerce initiatives, targeted advertising that pull up stakes eventually obtain service fees from performed works or commissions. This methodology of obtaining value from intangible asset assets will certainly outperform tangible asset - found connectivity revenue conjurements.The two terms, Present Mode of process (PMO) and Future Mode of effect (FMO) are so vital in current business world. What is required from enterprise point of view is to imbibe 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 provider co mpany has been interpreted as an example.The company has invested in new IP, IPTV and IMS technologies in order to compete with separate service providers who arrive at expanded their network to convergency of voice, entropy and video serve across fixed, wireless(prenominal) and satellite networks.In order to sustain in the competition, some of the service providers are making their current work less expensive, faster and better.Forming new Business Transformation Strategies are inevitable in current business scenario. However, on that point exist some inhibitions in the minds of service providers that these rapid changes in the business model might tump over 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 traditional model. Due to this saturation limit , the company Alcatel-Lucent decided has decided to go in for the advanced bus iness 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 assessment of Tangible and intangible assets within the legal boundaries in order to evaluate current business model.Return on enthronisation (ROI) is a main focal point for the service providers which tin be achieved by tactical assets interchangeReal-world Business Model InnovationsDue to market demand in communication sedulousness there is increasing pressure from service providers to adopt new business models in order to penetrate through the exist market.The following are Business models in the stadiums of innovationSponspered communicationsM-bankingBroadband residential district CentresHosted PlatformsWholesalingOutsourcingAsset-sharing issue Aggregation and BrokeringTargeted AdvertisingUGC and CommunitiesFulfilmentE-Commerce and m-CommerceSponsored CommunicationsAdv ertising through funded calls is one of the important innovations in the field of Telecommunication. There is appreciable change foreseen while comparing the conventional subscription model. Sort of incentives in the form of more talk time and paying lesser are the added benefits extended to the lend oneselfrs if they accept to receive advertisement messages. ab initio 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 come up has yielded a reduction in end user access tolls to a range between 20 to 50 %M-banking Due to various socio-economical reasons , it can be seen that in most of the countries may not be having basic banking service to its people , on contrary using liquid faculty is so greens in most of the countries . It would be rather difficult and rather expensive to manage transactions for in particular for those having smaller accounts through the existing banking system due to inadequate number of branches exist in nations where existence explosion is on the drive, especially in the rural areas. These shortcomings can be addressed through the M-banking which uses mobile applied science.The technological advancement rather the strategy in the Mobile industry is to develop Mobile pre-paid pay engines that manage real time small transactions by the use of SMS (Short Message Service) which is really a less expensive measure to the Mobile users.This service of Mobile banking has been very successful in umteen countries especially in growing countries like India and China. A classic example can be quoted from a leading service provider of Telecom situated in Philippines , named as Global Telecom, who introduced a service called G-Cash service which has got electronic valet facility through which the user can send and receive electronically and payments can be made through short message texting . Due to its easiness in use it has been predicted by World Resource Institute that due to its demand, with in 5 years 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 net income facility to its residents there by offering services like e -government levy payment, application forms, etc . In some countries like Australia, Broad band community centres assume the roles of Bank branches or government agents. Basically these centres serve the residents as a platform in which more industries and social memorial tablets have a greater reach to the people, which become a cost effective measure for the people as well.Hosted Platforms This lift 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 b ig money Radio Service) applications that run at a speed of 115 kb/s. Due to this service facility it becomes possible for the service providers are able to provide services to the end user at overmuch 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 get down is followed generally in the developing countries where the network operator resells excess net work capacity to a sell service provider VNO (Virtual Network operator) who in turn offer services to consumers or commercial institutionsO utsourcing This approach becomes more common in most of the countries. Day to twenty-four hour period work functions and managing the resources will be precondition to an external 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 roll 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 overlapping 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 purlieu to a greater extend.This approach again reduces the total cost of ownership and more innovative services can be pr ovided to their consumers.Content Aggregation and Brokering The main driver for this business model approach is the purpose 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 mod el is growing day by day in the field of communication. The examples for this model are social network sites like spirit 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, Photo 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, meet on a tallnessic 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 stone in this model is getting the users feedback directly by introducing the option o f select via internet or mobile device so that pulse of the user is measured instantaneously.Fulfilment This model ties 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 chance to pay for goods purchased using their mobile device. In other words, mobile phones are considered to be Virtual opinion Card with the usual securities in p lace to avoid tampering in any sort.It can be inferred from the above business model that the main drivers are reduce operational cost and increase top-line revenue. all 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 consultative frame work in the form of simple processStep 1 Identifying our customers PMO.Step 2 Understanding the customers top priorities and objectivesStep 3 Identifying the customers intended FMOStep 4 Identifying the appropriate products, services and solutionsIt is anticipated for a adversity if the steps are not followed which may lead to negative 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 be and flattening or decreasing revenues and margins.The real transformation of PMO to FMO will happen after the service providers breathing out 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 both 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 stress is on emerging business needs and implementing strategic objectives .Creating ConvergenceThe challenges are growing as the technology grows, hence the strategies being adopted by the enterpr ises and service providers should take a realistic and feasible approach in order to move forward with the transformation initiatives that nurtures Consumer relation and profitable growth . Hence creating convergence becomes so vital on the current business environment..The following layers should be bounded 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 edge 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 representation finding a knowledgeable, committed network integrator partner that can act as a trusted adviser every step 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 liberal 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 transformation 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 winning situation by adopting new technologies