Chris Barraclough: Shareholder Value for Telcos - Telco 2.0 7th Executive Brainstorm

50 %
50 %
Information about Chris Barraclough: Shareholder Value for Telcos - Telco 2.0 7th...

Published on November 23, 2009

Author: TYR

Source: slideshare.net

Description

Telco 2.0 MD Chris Barraclough's presentation from the Shareholder Value session at the 7th Telco 2.0 Executive Brainstorm.

Rebuilding value & control via a 2-sided business model Chris Barraclough, MD, STL Partners/Telco 2.0

Agenda What is a business model? Problems with Telco 1.0 business model New opportunity: Telco 2.0

A business model is the COMMERCIAL architecture of a business: how it makes (or loses) money A 5-domain model The marketplace Service Offering Value Network Technology Finance Source: Faber et al; Designing business models for mobile ICT services, 2001; adapted and developed by STL Partners Note: Each domain breaks down into several inter-related components that make up the overall business model.

The success of a company’s (or collection of companies’) business model is ultimately a function of two factors Value Control +

Control Drivers Value Drivers Control & Value Drivers Value Network Technology Service Offering Finance The Marketplace Low/no growth in end user revenuesMore companies sharing revenues and generating costsMore substitute products Unable to match freeTelco 1.0 business model is now under pressure in several domains More modular technology Decentralised network intelligenceMore punitive regulationLess vertical integration Weaker customer relationshipsSource: Ballon 2007; STL Partners analysis

Low/no growth in end user revenues

More companies sharing revenues and generating costs

More substitute products

Unable to match free

More modular technology

Decentralised network intelligence

More punitive regulation

Less vertical integration

Weaker customer relationships

Sexy new services paid for by end user will NOT yield continued revenue and profit growth Short term revenue growth only + Medium term capacity & cost issues = Falling margins, lower profits… 

Pre-2005 Retailer of books and gamesNow Retailer + platform (Amazon Marketplace)Amazon – retailer-cum-platform provider

Retailer of books and games

Retailer + platform (Amazon Marketplace)

Pre-2005 Retailer of books and games 52,000 SKUsNow Retailer + platform (Amazon Marketplace)100,000s of SKUsAmazon – retailer-cum-platform provider

Retailer of books and games

52,000 SKUs

Retailer + platform (Amazon Marketplace)

100,000s of SKUs

Pre-2005 Retailer of books and games 52,000 SKUs Revenue from end user salesNow Retailer + platform (Amazon Marketplace)100,000s of SKUsNew revenuefrom enabling services to tradersAmazon – retailer-cum-platform provider

Retailer of books and games

52,000 SKUs

Revenue from end user sales

Retailer + platform (Amazon Marketplace)

100,000s of SKUs

New revenuefrom enabling services to traders

Pre-2005 Retailer of books and games 52,000 SKUs Revenue from end user sales Profitable but margin squeezeNow Retailer + platform (Amazon Marketplace)100,000s of SKUsNew revenue from enabling services to tradersProfit underpinned by platformAmazon – retailer-cum-platform provider

Retailer of books and games

52,000 SKUs

Revenue from end user sales

Profitable but margin squeeze

Retailer + platform (Amazon Marketplace)

100,000s of SKUs

New revenue from enabling services to traders

Profit underpinned by platform

Pre-2005 Retailer of books and games 52,000 SKUs Revenue from end user sales Profitable Best-in-class logisticsNow Retailer + platform (Amazon Marketplace)100,000s of SKUsNew revenue from enabling services to tradersProfit underpinned by platformImproved, lower cost logistics (more scale)Amazon – retailer-cum-platform provider

Retailer of books and games

52,000 SKUs

Revenue from end user sales

Profitable

Best-in-class logistics

Retailer + platform (Amazon Marketplace)

100,000s of SKUs

New revenue from enabling services to traders

Profit underpinned by platform

Improved, lower cost logistics (more scale)

Pre-2005 Retailer of books and games 52,000 SKUs Revenue from end user sales Profitable Best-in-class logisticsBig consumer base,strong relationships:E.g. peer reviewsNow Retailer + platform (Amazon Marketplace)100,000s of SKUsNew revenue from enabling services to tradersProfit underpinned by platformImproved, lower cost logistics (more scale)More customers, stronger relationships:E.g. Premium logistics – Amazon Prime Amazon – retailer-cum-platform provider

Retailer of books and games

52,000 SKUs

Revenue from end user sales

Profitable

Best-in-class logistics

Big consumer base,strong relationships:

E.g. peer reviews

Retailer + platform (Amazon Marketplace)

100,000s of SKUs

New revenue from enabling services to traders

Profit underpinned by platform

Improved, lower cost logistics (more scale)

More customers, stronger relationships:

E.g. Premium logistics – Amazon Prime

A new telecoms business model $ $ Source: STL Partners Analysis

A successful Telco 2.0 business model restores elements of value and control to the Telco industry Control Drivers Value Drivers Control & Value Drivers Value Network Technology Service Offering Finance The Marketplace Single platform for multiple industries Operator remains gateway to end users New revenue source from upstream customersServices more complementary End-users add value to platform More customer intimacyCentralised intelligence – resides in platformUnclear – potentially a move into less regulated markets? Source: Ballon 2007; STL Partners analysis

New revenue source from upstream customers

Services more complementary

End-users add value to platform

More customer intimacy

Centralised intelligence – resides in platform

Unclear – potentially a move into less regulated markets

Three things required to bring Telco 2.0 to fruition Bad debt Demographics Leadership MY CREDIT MY PERSONAL DATA MY RELATIONSHIPS Address Gender Average balance Skills Name Profile MY INTERACTIONS MY DEVICES Preferences Location Presence SIM SoftSIM Number SIP Number Pictures Videos Bank School Browsing History Collaboration MY CONTENT MY IDENTIFIERS MY CONTEXT QR Codes IP Address Serial Number Device details Calendar Friends On/Off Source: STL Partners analysis .mobi domains Address Book Workplace Roaming

$375 billion opportunity (not guaranteed!) EU-27 and North American Telecoms $1,230bn $689bn Source: STL Partners, Telecoms Two-Sided Business Model Opportunity and Future Broadband Business Models, both published in 2008

Thank You More at www.telco2.net

Add a comment

Related pages

Shareholder Value 2.0: Investors now rating telcos as ...

Shareholder Value 2.0: Investors now rating telcos as ... at the 7th Telco 2.0 Executive Brainstorm, ... Chris Barraclough : Shareholder Value ...
Read more

Shareholder Value 2.0: Investors now rating telcos as ...

... Investors now rating telcos as ... Value session at the 7th Telco 2.0 Executive Brainstorm, ... Chris Barraclough : Shareholder Value for ...
Read more

Shareholder Value 2.0: Investors now rating telcos as ...

Shareholder Value 2.0: Investors now rating telcos as ... at the 7th Telco 2.0 Executive Brainstorm, ... and Chris Barraclough of Telco 2.0.
Read more

Shareholder Value for Telcos - Technology - documents.mx

Telco 2.0 MD Chris Barraclough's presentation at the 7th Telco 2.0 Executive Brainstorm
Read more

Telco 2.0™ 7th Executive Brainstorm 4-5 November 2009 ...

Telco 2.0™ 7th Executive Brainstorm 4 ... Chris Barraclough, MD & Chief Analyst, Telco 2 ... Roadmap for creating a valuable role for telcos; New Telco 2 ...
Read more

Belajar Brainstorming

Executive Brainstorm. ... Shareholder Value for Telcos - Telco 2.0 7th Executive Brainstorm. ... Why We Should Brainstorm More & How To Do It Bette...
Read more