BSNL

IT Strategic Planning
1

Group 2

Alyosha Agrawala
Kunal Gupta
Prajakta Thakur
Sudeep Singh Mahal

S P Jain Center of Management

Agenda
2

Telecommunication Industry
BSNL
Candidate Projects by Lenses
IT Audit: BSNL
Candidate Projects Consolidation
Project Justification and Funding
ITS Documentation Guidelines

IT Strategy Framework
3

Phase 1

Phase 2

Phase 3

Phase 4

Phase 5

Phase 6

Background
work
(Business
Strategy,
CSF,
Drivers,
Trends,
Business
Structure)

Candidate
Project
Identification

IT Audit
Survival
Needs

Candidate
Project
Consolidation

Project
Justification
and Funding

ITS
Documentation

Phase 1:
Background Work

Importance of Telecom Industry

5
Economic Growth

Strengthening
Investments

Job Creation

Gender Equality

Social Development

M-commerce

Rural Development

E - Governance

Facilitating R&D

Impetus to initiatives:
MNREGA, Aadhaar

Evolution of Indian Telecom Sector

6

Current Indian Telecom Landscape

7
Urban & Rural Subscriber base

Telecom Services India

August 2010 Statistics

Population: 1184.59 million

Teledensity: (BSNL) : 59.63

Urban population: 355.38 million

- Mobile Teledensity : 56

Rural population: 829.21 million

- Fixed Teledensity: 3

Total Subscribers: 706 million

- Urban Teledensity: 133

Wireless subscribers: 670 million

- Rural Teledensity: 27

Broadband connections: 10 million

Wireless Segment
8

CAGR (Wireless Subscribers) 77.5%

FY10 584.3 million
GSM subscribers 84.1%

Wireline Segment
9

CAGR (Wireline Subscribers) : 3.3%

FY10 : 37 million
Teledensity: 3.1%

Urban Market: 73.1%

PCOs: 3.5 million
VPTs: 0.6 million

Internet & Broadband

10

Other Telecom Services

11
Radio Paging

Public Mobile Radio Trunked

Services

PMRTS have not grown to their

expected potential in India. The high
licence fee leaves a very thin margin for
services providers; thereby, inhibiting
its growth. About 31,000 subscribers
are currently availing this service in
India from 12 different operators.

In 1995, radio paging services

emerged as a promising segment in
India. However, this segment could
not compete with cellular services
in general and SMS technology in
particular, and is currently
shrinking. At present, only four
radio paging service providers are
present in the Indian market.

Very Small Aperture Terminals

(VSAT)
The market for VSAT services increased
by 5.73 percent during the quarter
ending in December 2006, and the
segment had a total subscriber base of
55,070. HCL Comnet is the largest of the
eight players functioning in the market.

GMPCS*
GMPCS services were launched
in India in 1999. These services
allow a subscriber to
communicate from any point on
earth through a handheld
terminal. Moreover, the telephone
number remains unchanged,
irrespective of the subscribers
location.

* Global Mobile Personal

Communication by Satellite

Growth Drivers : Indian Telecom Market

12

Other Growth Drivers

13
Mobile Applications

Evolution of new technologies

Increase in Customer Demand
Social Media
Infrastructure capabilities:

Flexibility
Scalability
Re-usability
Lean & Green
Emergence of new players
Liberalization of the global telecommunications markets

Industry Risks
14

Top 10 business risks

for telecoms operators
1. Losing ownership of client
2. Failure to maximize customer
value
3. Rising regulatory pressures
4. Ineffective infrastructure
Investment
5. Inability to contain costs
6. Lack of talent and innovation
7. Inability to manage investor
expectations
8. Inappropriate systems and
processes
9. Poorly managed M&A and
partnerships
10. Privacy, security and piracy
risks

KPIs for Telecom

15
Systems
Performance Analysis

Call Centre

Wait Times
Call volume
# of complaints received
Avg. speed of answer
Revenue per call
Avg. quality of calls
# of calls transferred
Avg call length
# of one call resolutions
Abandon rates
Customer satisfaction
Agent Efficiency

Availability
Grade of Service
Bit error ratio
Bit rate
Downtime
Call completion Ratio
Cost of support systems
Cost of operational
systems
Avg call length
Analysis of ASR route
Network traffic ,
congestion
Idle time on network
Dropped calls

Financial Analysis

Avg revenue per user

Prepaid ARPU
ARPU from contracts
Rev. per voice min
% of non-voice revenue
Avg Revenue Realization
Minutes of Usage
Avg rev. per employee
Avg. rev. per subscriber
Periodical rev. analysis
Analysis of company
overheads
P&L Analysis
Recovery Analysis

Major Indian Telecom Players

16

Basic Services Operators

BSNL

MTNL
Reliance

MOBILE SERVICES
GSM Services Operators
Airtel
Vodafone
Idea

TTSL
Reliance

Internet Services Operators

BSNL

BSNL
CDMA Services Operators

MTNL

Reliance

Reliance

TTSL

TTSL
Airtel

BSNL

Major Global Telecom Players

17

Revenues of Major Telecom Operators in the World (US$Bn)

Trends in Global Telecom Market

18

Convergence

Trends in Global Market Contd..

19

Shift In Technologies

Fixed line operators Move towards FTTH

Mobile Operators Move towards 3G, 3.5G and 4G

Focus on content IPTV

The Shift to Emerging Markets

Fixed Mobile Substitution

Entry of Online Players

Trends in Global Market Contd..

20

Shift to Emerging
Markets

Fixed Mobile
Substitution

Online Players Initiatives in the Communication Services Space

Major Innovation in Telecom Sector

21

Telcos and People

Tailored Tariffs
Co-Creation
Democratization of
smartphones

Telcos and Business

Network Quality and Congestion
Targeting B2B segment
Partnership

Devices and Apps

Location Based Services
Mobiles as shopping and
selling devices
Tablet PCS

Telcos and Social Web

Integration in Business Process

Issues facing Indian Telecom Industry

22
Spectrum re-farming & effective

Effective utilization of USOF

to increase rural penetration

Increasing broadband
penetration and rural
connectivity

Critical Infrastructure Status

Security concerns

along with uniform policy and

single window clearance

Limited availability of talent

Fixed mobile convergence

(FMC)

management of spectrum
Establishing effective licensing

framework involving service

providers

Energy requirements
High operating expenditure

IT related issues to Telecom Sector

23
Integration of globally distributed application systems
E-Business platforms that can process high volumes of transactions
Consolidation of IT infrastructure into one location
Dealing with data security and confidential information
Need for effective reporting and trend analysis

Flexibility of adapting technologies to business processes

Reduction of IT maintenance overheads
Keeping up with changes to regulatory guidelines
Keeping costs low while providing effective network services

Channel and infrastructure utilization

Content Management
Developing innovative applications for M-Commerce to attract customers
Need for effective customer service tools to prevent churn out

Innovative Strategies : Telecom

24

Customer relationship
Outsourcing the unexpected: Bharti Airtel Business Model Innovation
Revenue streams
Standing on the shoulders of the advertisers: Blyks Business Model Innovation
Customer segments
Cultivating emerging markets: Tencents Business Model Innovation

Core capabilities
Leveraging the knowledge of the crowd: Iliads Open Source Freebox Business Model
Innovation
Partner network
Creating a community of Foneros: Fons Business Model Innovation

Bharat Sanchar Nigam Ltd.

25

BSNL
26

Fully Government Owned Indian Telecom company

BSNL is the largest fixed land line service provider in India

26.45 million fixed line subscribers (about 74% market share)
102.45 million total number of connections
76.10 million wireless connections

BSNL is leading Internet and Managed network Service

provider

Telecom Infrastructure alone is worth more than US $30,000 million

BSNL was the first 3G service provider in India August 2010
BSNL has more than 500,000 KM OFC infrastructure
Total about 38000 fixed line exchange

BSNL
27

Vision:
To become the largest telecom Service Provider in Asia.
Mission:
To provide world class State-of-art technology telecom
services on demand at competitive prices.
To Provide world class telecom infrastructure in its area of
operation and to contribute to the growth of the country's
economy

Decision Making
Chairman : Mr. Gopal Das
CEO : Arjun Bhagwat

Services Offered : BSNL

28
Wireless Services
Tarang-WLL-M
Cell One and Excel Leased Circuits
MLLN, MPLS-VPN/IP-VPN Services
Internet Services
Internet Under Dialup Access( Sanchar net)
ISDN Dialup Access
Internet Leased Line Access
Net One, Internet Dhabas Data One
Rural Telecom Services
Basic Telephone Services
Village Public Telephone(VPT)
B-Fone, One India Plan
Rural Community Phones
Integrated Services Digital Network (ISDN)
Replacement of MARR Village Panchayat
Centrex , Intelligent Network Services (IN Services)
Phones
Public Telephone (PT)
Rural Household DELs

Services Offered : BSNL

29

Network Organization
30

In India, whole region is divided into 24 circles (almost equal to each state)

and 4 metro districts (Delhi, Mumbai, Chennai and Kolkata)

BSNL Operates in all 24 circles and two metro districts

PSTN:: Separate User Profile and Services

PLMN: : Separate User Profile and Services
DATA: : Separate User Profile and Services

Financial Performance
31

In Rs Crores

Parameters

2006-07

2007-08

2008-09

2009-10

Income

39,715

38,053

35,812

32,045

Expenditure

31,466

33,636

34,354

34,078

Net Profit

7,806

3,009

575

(-)1,823

MARGINS
Voice Services (L)
Internet Services (L)
Banking Services (M)
Wi-Fi (M)
Games (H)
Productivity Tools (H)
Shopping Platforms (H)
HD TV (H)
Mobile Phone Tie-ups (H)
Caller Tunes (H)
SMS voting (H)
L- Low, M- Medium, H- High

Business Positioning
32
BSNL provides almost every telecom service in India.

Goal: To become the largest Telecom Company in South

East Asia with most modern state-of-art technology

offering world class service to its customers.
BSNL is planning to increase its customer base to 108

million customers by 2011.

BSNL is a pioneer of rural telephony in India. BSNL has

recently bagged 80% of US$ 580 m (INR 2,500 crores)

Rural Telephony project of Government of India
On the 20th of March, 2009, BSNL advertised the launch of BlackBerry services across

its Telecom circles in India.

The corporation has also launched 3G services in select cities across the country.

Presently, BSNL and MTNL are the only players to provide 3G services, as the
Government of India has completed auction of 3G services for private players.

BSNL Strategy
33
Revitalise the business via:
Focusing on aggressive growth in Mobility (2G/3G), Broadband and Enterprise segment(i.e.,
corporate customers)
Reducing churn in the landline (including PCO) business and consolidating our positioning the
wholesale business (i.e., NLD)
Venturing into new areas to further drive growth such as infrastructure sharing, DTH,
International expansion among others
Build operational excellence in the following critical areas :
Marketing, sales and distribution
Product innovation and pricing
Customer service
Revenue assurance , Cost efficiency
Create a high performance organization to achieve the above :
Redesign the organisation structure, roles & responsibilities
Strengthen our HR policies and practices
Put in place a strong performance management system and culture

SWOT Analysis
34
Strengths

Experience
Competitive pricing
Pan-India reach
Total telecom service provider
Huge resource base
Huge optical fiber network
Huge customer base
Great broadband speed at lowest cost
Opportunities
Scope of improvement in marketing skills
Tremendous market potential
Huge business potential in e-gov initiatives
Untouched international market
Huge potential in DTH services
Huge scope for penetration with low cost

Weaknesses
Poor marketing strategies
Low IT penetration within the organization
Bureaucratic organizational setup
Limited Value added services
High setup time , Slow service
Lack of strategic alliances
Use of obsolete technologies
Political inference
Poor knowledge management
Threats
Market saturation in the conventional
telecom business
Political and economic instability
Competition from private players
Decreasing profits due to competitive pricing

Critical Success Factors

35

CSF
Brand Awareness & Equity
Packaged Offerings & Services
Data Speeds / Bandwidth
Network Quality & Congestion
Retail Presence
Economies of scale
Financial Strength
Customer Service
Alignment with emerging trends
like Convergence
Partnership & Alliances

KRAs / KPIs
36

KRA/KPI

Call Center
Customer Satisfaction
Systems and Networks
Network Quality
Compliance
Coverage
Revenue

BSNL A view from our lens

37
Engagement:
Engagement
Foster cooperation across
Lens
functions and departments
Make employees aware of their
impact on operational excellence

Strategic
Lens

Operation:
Minimize complexity of input,
production and output
Increase first-time-right results
Optimize resources for core processes
Adjust service levels to overdeliver at
selected touchpoints

Operational
Lens

Strategy:
Fully leverage operations
to build competitive advantage
Identify and manage strategic
trade-offs

Performance
Lens

Performance :
Organize governance to emphasize
accountability
Streamline management structure to
expedite decision making
Consolidate redundant organization
structures and locations

Way forward
38

Phase 2:
Candidate Project Identification
( 10 Lenses Approach)

39

1
Forces / Trends
Product Services
Interdependence Collaboration
Business Consumers
Mass Customization
Globalization
Outsourcing
Environmental Aspects Green IT

Governmental Aspect Regulation

Crowd Sourcing (Open source)
Flexibility M - Commerce

Technology

Global Trends
40

Candidate Project
Web based portals for value added services / bundled offerings
Infrastructure sharing and outsourcing
Web Based Customization software with high security
BI Analytics project Recommendation engine/Trend Analysis
Integration Project / Enterprise Software
Project Mgmt. Software and Vendor Management Software.
Virtualization software, Data Server Consolidation ,
Energy conservation projects in office premises, mobile apps
Paperless office Online billing
Audit Software,
Financial Software packages
Platform based initiative
Implementing GMLC (Gateway Mobile Location Center)
Mobile payment methods software
Secured mobile banking services
Implementing Cloud computing for Data Centers
VoIP based services
Deployment of LTE and WiMax

Business Model
41

Precision Mass Customization

Providing a unified Internet web
platform for selection of services
Providing information about different
services on Social Media
Push SMS for most preferred basket of
services via SMS

Innovation (Novelty)
Novelty entails world class mobile and
broadband services
BSNL has certain novel aspects but overall lacks
innovative product/service offerings
Novel initiatives:
Telecommunications services via satellite
Use of CRM tools Customer Service

BSNL
Cost Mass Production
State of the art network
Common infrastructure to reduce cost
Automated system for billing and
customized offer for customer
Integration of various services offered
BSNL focuses on low costs and this has
been its strategy in the telecom business space

Quality
Network availability and quality are critical
for the telecom sector
Reduction of network congestion and value
added services help provide quality service with
customer satisfaction
BSNL is focusing on enhancing providing
quality services through bundled offerings

Candidate Projects
42

Precision Mass Customization

Building recommendation engine based on Customer preference
Effective BI to understand customer demands
Online interface for custom bundling of offers
Innovation (Novelty)
More application based services over internet
Tapping in Convergence to provide integrated and consolidated services
Cost Mass Production
Shared Infrastructure
Outsourcing
Quality
CRM
Data Server Consolidation and Virtualization
Infrastructure upgradation
Effective Online experience
Quality Network

Business Transformation
43

Demand for bundled offerings, multiple products and services

Social Media leverage

Integrating the facebook, twitter, blogs, online banners etc

Crowd Sourcing
Evolution of new technologies
One-to-many calls, broadcast voice mail, and voice-to-text has changed the
industry dynamics
Fibre-To-The-Home
Implementing EDGE and GPRS technology
Green IT initiatives
M Commerce Mobile banking, Mobile entertainment
Trends Introduction of WIFI and the security systems, Convergence of Systems

Business Model Transformation

44

Precision

Novelty

BSNL
Business
Transformation

Cost

Quality

With increasing competition and customer demands it is important for BSNL to balance Quality,
Customization and Innovation at the same time. The ideal transformation would be the change of
focus from Cost to Quality and eventually leading to Innovation with Customized offerings

Candidate Projects
45

M-Commerce -

Multimedia features
Open Source leverage

Social Media Engagements for Customer Interaction

VoIP based services
Green IT Data Centers

Porters Analysis
46

Barriers to Entry ( Low)

Governmental Regulations
Large Capital Requirement
Marketing Costs
Positioning Challenges
Existing Competition
Limited Bandwidth
Demand for Value Added Services
Increased FDI
Huge subscriber base and
Untapped rural segment

Rivalry (High)
Many major players
Players with stronghold
on certain segments
Favourable factors like
High FDI , Deregulation
Focus on VAS, quality
and service
Outsourcing & focus on
core competence

Bargaining Power of Supplier

( High)
Geographical foothold
Few number of major suppliers
High Dependence
Provision of state-of-the-art technology
Criticality of excellent infrastructure.
Importance of Network Strength & quality

Threat of Substitutes ( Low)

No clear substitute for
Telecom
Internet based technologies
like VoIP

Bargaining Power of Buyer

(Medium)
Cost effective Services
Many alternatives available
Strength of provider network
Availability of bundled
offerings and custom needs
Brand Identity

Candidate Projects
47

Collaboration with Suppliers through Selling Chain Management

Product Enhancements: VAS , Mobile gaming
Latest Technologies: Embracing technologies like 3G & Wi-Max and rolling out different

commercial plans. E-Commerce features, M-Commerce enhancements

Enhancing Barriers to Entry: Use of Social Media projects for strong viral marketing and

brand positioning to surpass competition

Cost focus: Cloud Platform leverage to reduce costs
To alleviate network issues: Network Feedback SMS service
Managing ICT Infrastructure: Outsourcing to other partners who manage the ICT

infrastructure

User Survey
48

User Feedback is important :

To help understand user requirements
To help enhance existing products
To help develop new products or services offerings
To help understand the current trends
Gaining new ideas from the customers
To create brand affinity To make customers feel heard and
involved and to help promotion through word-of-mouth
publicity

Tips for Conducting Interviews

Use of interview guide. General to Specifics
Listening and guiding, not leading.
Strategies: intervention of higher-ups, interview in pairs
Paraphrasing , Use of indirect approach.
Sensitivity and not asking for too much
Columbo trick

Candidate Projects
49

Social Media projects for capturing and

enhancing value through channels like

Facebook
Twitter
YouTube
Blogs
Web 2.0 and enhance existing E-business
Interactive portal . Taking the portal
from being just informative and
transactional to being interactive and
transformational
System for integrating unstructured data
from various channels and sources like
voice, comments, references , mobile
services
Use of BI Analytics , Web Analytics to
understand trends and consumer demand
patterns

Analysis of Competition
50

Indian Telecom Players

Basic Services Operators
BSNL

MOBILE SERVICES
GSM Services Operators

MTNL

Airtel

Reliance

Vodafone
Idea

TTSL

Reliance
Internet Services Operators
BSNL
MTNL
Reliance
TTSL
Airtel

BSNL

CDMA Services Operators

Reliance
TTSL

BSNL

Market Share
51

Sources to gather information about competitors:

Cross hiring
Industry Journals/ Trade Magazines
Patent Filing
Consulting community
IT Trends

Customers of Competitors
Forums/Employee blogs
Historical trends
Trade exhibitions
Industry Espionage

Analysis of Competition
52

Bharti Airtel has the largest market share in

the GSM segment. As of June 2010, Bharti
accounted for 25.9 per cent of the GSM market,
followed by Vodafone, with a 20.7 per cent
market share.
Private players accounted for approximately
86.4 per cent, while public sector operators
(BSNL and MTNL) accounted for the
remaining share
(13.6 per cent)
Reliance Communications dominates the
Indian CDMA mobile services segment with a
market share of 52.4 per cent as of June 2010

BSNL is the biggest player in this market with 9.7 million subscribers, followed by MTNL, Bharti
Airtel, Reliance and Hathway Cable & Datacom

Candidate Projects
53

Effective Value Added Services to match and overpower competitors:

Content Management Tool

E-Commerce portal
Voice Based Applications
CRM

Tie ups with other providers based out of the country so that there is better

availability of roaming services : Vendor Management software

Additional services in free-zones such as promotional offers in relation to latest

technology launches : Social Media Marketing, Online Banners

Cost-sharing for the network infrastructure in sparsely populated areas :

Infrastructure projects , Infrastructure Management systems

TechScan
54

Convergence and Integration between Mobile service providers and Music/Video

industry
Guided Positioning System
E Commerce
Mobile Banking
Online SMS providers
Social Media
Cloud Computing
Use of Internet for Phone calls

Factors Governing Technology Readiness

55

External Readiness

Internal Readiness

Cost curve

Ability and effectiveness in handling

technology transfer

Stability of tech. and its suppliers

Skill level

Tech. standards

Risk profile (risk appetite) or ability to

handle/tolerate risk

Perceived business value

Implication to existing established

business proc.

Level/rate of adoption in industry general

Culture of the company

Openness

Open Standards

Technology Vs External Readiness

56

Technology Vs Internal Readiness

57

Internal Vs External Readiness

58

Candidate Projects
59

E-Commerce projects for enhancement of offerings with Web 2.0 features

Social Media Marketing Projects for increasing subscriber base

Leveraging Cloud Platform

M-Commerce and M-Banking Applications for secure transactions
Implementing GPS based navigation devices and localization features

8
7

Idea Scan
60

Disruptive Technologies

Social Media
CRM, Enterprise systems
E-Business, E-Commerce
IPTV

Integration : Integration of the operations

Convergence : Horizontal and Vertical
Open Source for reduction in costs
Cloud Platform and Data Centers for effective infrastructure management
Wireless Mesh Networks for network quality and availability

Candidate Projects
61

Cloud based Data Centers

Implementation of Wireless Mesh Networks

Agile System Operations for cost reduction

Value Chain Analysis

62

Impact of IT on Telecom Value Chain

63
Elimination threat to certain Telecom services and Value Chain partners
Introduction of Voice over IP impacts the fixed and mobile telephone service
providers

Enhanced sharing and collaboration between different stakeholders like infrastructure

vendors partners, competitors
BSNL partnering with Cisco to use Virtual Service Provider model which will help to
offer bundled packaged services
Opportunities to increase and improve the customer base, market share, profit margins
Large number of services and products have been introduced creating more
opportunities for the Telecom Service Providers
Increase in Operation Efficiencies of the Telecom Ecosystem and various Service Providers

Introduction of enhanced network systems, network sharing models has helped

Telcos to reduce cost

Candidate Projects
64

M-Commerce :

Tie up with online application providers to provide combo services and to enhance
mobile commerce
Increase Mobile commerce services like mobile payments, reservations, ticketing
Form alliances and partnerships with credit card operators, entertainment and
media companies and increase services.
Selling Chain Management, Vendor management Software: This will help
maintain the order cycle details
CRM : Customers are the focus of any service offering.CRM implementation and
enhancement will help deliver effective customer service
Business Analytics: These systems will help understand customer demand and help
define strategy accordingly
Social Media Marketing will help promote brand and increase sales through viral
marketing

10

Critical Success Factors

65

CSF for Telecoms ( Long Term )

Market segmentation and effective targeting

Fast introduction and application of services
Economies of Scale
Proper vendor selection, Retail Presence
Financial strength
Plausible state legislation and regulations

CSF for Telecoms ( Short Term)

Bundled service offerings / Value Added services

Network availability and congestion
Customer Service and Experience
Brand Awareness
Alignment of commercial terms with business goals
Business/Operations Support Systems (B/OSS)
Specific best practice implementation methodology
Effective governance, SLAs

10

Candidate Projects
66

Operations Support Systems/Business Support Systems application

Implementation
Customer Relationship Management
SCM Selling Chain Management
Vendor Management Software
Business Analytics for Market STP ( segmentation, targeting and positioning)
Enterprise Apps Finance Module
Web Portal for better offerings

Security and Operational Controls Systems

67

Phase 3:
IT Audit

IT Audit
68

BSNL conducts close monitoring of network operation through information technologyenabled systems, which include introduction of CDR (call data records)-based billing,
commercial and fault repair service and work order management system.
BSNL has launched a Rs 1.93 crore campaign "BSNL 3G branded Rajdhani express" in
association with the Indian Railways for the promotion of its 3G products and value added
services.
Bharat Sanchar Nigam Limited (BSNL) has announced the launch of its new 3G Value Added
Services for its customers across the nation. With this, BSNL becomes the first service
provider in India to have launched specialised VAS services for 3G users.
BSNL launched the much awaited Dial-a-Video service in collaboration with Percept
Knorigin.
It also launched the FTTH (fiber to the home) service in Bihar. The customers who are in great
demand of good internet speed such as in the application of IPTV, HD TV, VoD, 3D TV and
many more will be in more benefit.
HCL - BSNL are planning to work together on National Broadband Penetration Program - A
nation wide initiative to bridge the rural-urban digital divide by accelerating ICT penetration in
rural and remote areas

BSNL Current Projects

69
High Critical Projects
UTStarcoms MSANs
BSNL Customer
Support System
VOIP enabled service
Wi-max enabling
project
3G network
Expansion

National Broadband
Penetration Program

Low Critical Projects

Expansion of
Broadband, Mobile
Payment
Expansion of Digital
Media and ICT
Network SMS
project

Functional Mapping
70

STRATEGIC IT INITIATIVES/APPLICATIONS
- Web Portal
- M-Commerce
- Value added services
TACTICAL IT INITIATIVES/APPLICATIONS
- Improvements in Mobile / Online commerce
- Social Media
- CRM
OPERATIONAL IT INITIATIVES/APPLICATIONS
- ERP
- Content Management Tools

Age of application vs. Functional Quality

71

Old

Infrastructure

IVR

Age Of
Application

CRM

BI
Payments
system
ERP

Web Portal
Social
Media

M-Commerce

Young
Low

Functional Quality

High

Age of application vs. Technical Quality

72

Old

Infrastructure
BI
IVR

Age Of
Application

Payments
system
CRM
ERP

Web Portal

Social
Media
M-Commerce

Young
Low

Technical Quality

High

Degree of automation vs. Potential of automation

73

Infrastructure
Potential of
automation

IVR

ERP

E-Commerce

CRM
M-Commerce
Business Analytics

Social Media

Degree of automation

IT Audit Customer Service Solution

74

Current
System

Survival
Needs

A 24X7 Man Helpdesk will be available for attending customers calls, escalations &
to support them around the clock. Customer will get the toll free no on which he can
log a request in case if he wants to make any changes in his configuration.

Which services are affected by network events, severity of the service impacts,
which customers are affected, and response prioritization

Integrate the solution with next generation services like Wi-Max

Planned
System

IT Audit Network Services

75

Current
System

Survival
Needs

UTStarcom s B1000 multi-service access node (MSAN) to fixed access customers

UTStarcom's ADSL 2+-based broadband solutions will now enable BSNL to offer new
broadband-based, triple-play services such as video-on-demand (VoD), video multicast, VPN
services, and high-speed Internet services across the country while providing the operator with
network flexibility, scalability for innovation and a rapid return on investment.

High speed network services through IT to provide high quality service to the
customers

Migrate existing IT infrastructure to the above mentioned technology not only in

fixed access but in mobile services too
Planned
System

IT Audit McFarlan Model

76

high

Impact on Strategy

Turnaround
Exploit emerging
strategic
opportunities
from new IT

Strategic
Committed to use
of IT to enable
both core
operations and
core strategy

In BSNL, IT is
used mainly for
Operational
purpose and not
for Strategic
Advantage

Factory

Support
Local
improvements and
low cost savings

Reduce costs and

improve
performance of
org

low
low

Impact on Operation

high

Factory to Strategic movement

77

high

Turnaround
Impact on Strategy

Exploit emerging
strategic
opportunities
from new IT

Strategic
Committed to use
of IT to enable
both core
operations and
core strategy

Support

Factory

Local
improvements
and low cost
savings

Reduce costs and

improve
performance of
org

BSNL is trying to
move into
strategic quadrant
by gaining
competitive
advantage
through IT

low
low

Impact on Operation

high

78

Phase 4:
Project Consolidation

Project Selection Metrics

79

Projects of similar nature have been clubbed together and redundant options

have been eliminated to come with a consolidated list of projects.

The projects selected have been given ratings between 1-10 to further filter

these depending on their criticality to the enterprise, their value add, their risk
factors and so on
Rating of 1 means that the candidate project has the worst value for the given

attribute
Rating of 10 means that the candidate project has the best value for the given

attribute

Project Selection Metrics - 1

80
Drivers/ Candidate Project

ROI

Risk

Time
Frame

CSF

Cost Of
Learning

Survival
Criticality

Invisible
s

Tota
l

Portals for VAS with Web 2.0

features (E Commerce)

54

Cloud Computing for Data centers

50

Vendor Management software

38

Green IT initiatives

39

M Commerce Applications

54

Business Analytics system

36

CrowdSourcing (Open Source)

30

Project Selection Metrics - 2

81
Drivers/ Candidate Project

ROI

Risk

Time
Frame

CSF

Cost Of
Learning

Survival
Issue

Invisibles

Total

Social Media Applications

55

Network feedback SMS service

45

Outsourcing Infrastructure
Maintenance

31

Project Management

37

Infrastructure Sharing projects

27

GPS based navigation devices

34

Wireless Mesh network project

28

VOIP based services, Wi-Max , LTE

deployment systems

36

Project Selection Metrics - 3

82
Drivers/ Candidate Project

ROI

Risk

Time
Frame

CSF

Cost Of
Learning

Survival
Issue

Invisibles

Total

Mobile Banking Applications

47

Content Management Tool

50

Voice Based Applications

33

Customer feedback system

36

Marketing tools and Web Analytics

26

CRM

46

ERP Implementation

47

Selling Chain Management

33

83

Phase 5:
Project Justification & Funding

Screened List Of Candidate Projects

84

Web Based Portal

Mobile Banking Applications
M Commerce Applications
Social Media Projects
CRM
Network feedback SMS service
Cloud Computing Platform

Content Management Tool

ERP Implementation

Project Justification Metrics

85
CSF/ Department

Marketing

Sales

Customer
Service

Operations

Finance

Cost Reduction

3
Customer Acquisition/
Retention

7
4

Time to Market

Increase in Sales

9
5

5
9

7
9

4
6

6
8

8
7

5
8

6
9

7
2

9
3

Quality of Service

3
7

6
4

Customer Satisfaction

7
6

Project Justification Metrics

86
CSF/ Department

Marketing

Sales

Customer
Service

Operations

Finance

Cloud Computing
Platform

Low

Low

Low

Med

Service Improvement
Cost Reduction

Web Based Portals

High

High

Med

Med

Revenue Generation

ERP Implementation

Med

Med

Med

High

Service Improvement
Integration of systems

Mobile Banking
Applications

Med

High

Low

Med

Revenue Generation

M Commerce Apps

Med

High

Med

High

Revenue Generation

CRM

Med

High

High

Med

Service Improvement

Social Media Apps

High

Med

High

Low

Customer Feedback

Network feedback SMS

service

Med

Med

Med

Med

Service Quality

Content Management
Tool

Med

Med

Low

High

Service Quality
Product Novelty

87

Phase 6:
Documentation & Communication

Approach & Methodology

88
Approach
BSNL is one of the oldest and major players in the Indian Telecom Sector
Inspite of the broad reach, Governmental support and resources at hand it has not been able to carve a
niche and is degrading on its performance.
With increasing competition and demand from consumers, it has become crucial for BSNL to adapt its
business model and to have a combined focus on quality and innovation with personalized offerings
The objective of this assignment is to evaluate the IT landscape of the company and to harness
technology to boost the performance of the company
Approach focuses on identifying the As Is state and devising the To Be State to help define the IT
strategy for BSNL through use of a 6 phased IT Strategy Model
Methodology
An exhaustive analysis of the industry and company was done to understand the current state and the
strategic objectives to be reached
BSNL was revisited through the 10 lenses to identify candidate projects
Projects were evaluated on various criteria like the feasibility, need, impact, required resources
Prioritization techniques were used to come up with the final projects to be implemented in next 2
years

Winning Projects
89
Winning projects were identified based on the prioritization technique using various

parameters like Risk, CSF, ROI, Cost of learning, Time frame, etc
Candidate Profile Projects filtered were :

Web Based Portal

Mobile Banking Applications
M Commerce Applications
Social Media Projects
CRM
Network feedback SMS service
Cloud Computing Platform
Content Management Tool
ERP Implementation

After identification, each project was revisited to understand its implications on

various departments using certain metrics

After thorough evaluation of all aspects and the company needs, projects were
selected for next 2 years of execution

TimeLine , Cost and Execution

90

Candidate projects will be executed in 2 years timeframe

The current estimated costs associated with the Candidate profile projects is

approximately $30 million

The execution will happen with the in-house talent and outsourcing to the
preferred vendors
Vendor selection process would follow the standard routines as been followed
by the company
Executing vendor will need to present Pilot which will then determine the
grant of contract to the vendor
Projects will be implemented using Waterfall model under the purview of
BSNL IT department

Preface
91
Who Vote:

Business Leaders and IT Team

Candidate projects:
Web Based Portal , Mobile Banking Applications , M Commerce Applications, Social
Media Projects, CRM, Network feedback SMS service, Cloud Computing Platform,
Content Management Tool, ERP Implementation
Goals:
To boost performance of BSNL through innovative , personalized and quality
offerings
Business Capability:
These projects will enable BSNL to better utilize the available infrastructure, incur cost
savings through outsourcing, provide customer centric service offerings and value
added services thus enhancing the BSNL brand and market share in the due course
Ownership
The entire execution is owned by the BSNL IT leadership team in collaboration with
the Business units and outsourced vendors

Thank You !
92

93
References :
Consultant Report:
Mckinsey Quarterly, Ernst & Young, BCG, Gartner, Accenture
Research Library :
CIA world factbook, Data Monitor 360
E Magazines / newspapers:
Financial Times, Economic Times, Wall Street journal, Business World,
Time magazine, Forbes, Harvard Business review
Company Websites of Telecom players
Internet Resources: Case Studies, Government sites, blogs, websites
Subject Material
Deliverable D1 gives exhaustive list of most of the sources