Thursday, December 31, 2009

Unlocking an uncontested market space for the Telcos

Today throughout the globe Telcos are locked in a fierce battle in a “Red Ocean”. Typical as in any “Red Ocean” they face a great challenge in ensuring a profitable growth. Fighting a price war by differentiation and somehow retaining existing customers had become the mantra of the decision makers. At the same time Telcos are faced with a huge challenge of keeping up with cutting edge technological innovations while keeping the capital and operational expenditures under control. Adding to the Telco’s woos is the complexity in differentiating white elephant technological innovations from the ones which the market is ready to buy.

It might look as if I had made it to sound scary but when you listen to the Telco decision makers when they are in total pouring the heart out mode, you get to know that they all face a similar dilemma.

hSenid being a vendor for Telco grade service delivery platforms wanted to break out of the Red Ocean and unlock an uncontested market space for the Telcos. Hours and hours of brain storming by the hSenid team have yielded Soltura, which is a bundled solution encompassing both technological and business process innovation.

Inspired by the work of W. Chan Kim and Renée Mauborgne, hSenid team crafted the product strategy for formulation and execution of Soltura using some of the tools and techniques prescribed in their book Blue Ocean Strategy.

Soltura’s New Value Curve

Using the four actions framework hSenid decided to focus on creating a new value curve and set the priorities clear for the product.

As shown in the four actions framework above, Soltura creates a new value curve for the Telco by providing the following features.

a. Cost Perspective

· Irrespective of the sophistication of the Service Delivery Platform the incremental cost occurred for each new application in the form of both development cost and the operational cost from the Telco side in the form of NCS configurations, testing and management has traditionally been taken as an inevitable cost. Soltura differs from this currently accepted wisdom.

· By making each architectural decision in a cost conscious manner hSenid has managed to come up with a Service Delivery Platform which can be deployed at a Telco without any initially outflow of capital expenditure. One of the important features that are presented by Soltura is the raise of a new industry standard of providing SDP as a hosted solution on the cloud and thereby greatly reducing the Total Cost of Ownership of the platform.

b. New Market Segment and thought leadership Perspective

· By eliminating the incremental cost per application, Soltura creates an opportunity to house thousands of applications and discover a totally new market segment which was not reachable with the existing set of tools and platforms.

· The concept of giving an opportunity of allowing everyone to become a content provider and giving a paradise of choice to the subscribers gives rise to a totally new way of looking at Telco applications – this is what we call as “Socializing the Mobile Network.”

Stay around to see the strategy canvas of Soltura!!!!

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