converged solutionscc/crm solutions customer services tata telecom strategy at work niru mehta may...

Converged Solutions CC/CRM Solutions Customer Services

Tata Telecom

Strategy At Work

Niru MehtaMay 20-21 2003

2


What?

1.Results to Date

2.FY03 - 05 Opportunities

3.FY03 - 05 Goals/Outlook

4.Summary

3


Key Messages…

• Pleased with the overall performance• Key Strategies have delivered Results

– Voice to Converged Solutions Enabled Growth

– Box to Solutions Protected Margins

– Customer Responsiveness Positioned for Future

• Optimistic about Future– Market opportunities are encouraging

– Organization is better prepared than ever before

– Risks are manageable

• Tata Telecom is Uniquely Positioned to Win Customers– Proven Track Record in India

– Unmatched capabilities


Results To date

5


Consistent Revenue Growth…

0

50

100

150

200

250

300

Rev

enu

e (R

s C

r)

Q4

Q3

Q2

Q1

FY9999-01

FY0000-01

FY0101-02

34%

31%

24 %

FY0202-03

350

6


Improved PBT…

4.1

15.1

24.3

30.0

0

5

10

15

20

25

30

35

FY99 FY00 FY01 FY02

Rs C

r

7


Reduced Seasonality in ROS…

-20

-15

-10

-5

0

5

10

15

FY99 FY00 FY01 FY02

PB

T a

s %

of

Rev

Q1 Q2 Q3 Q4

8


Improved DSO…

60

80

100

120

140

160

180

FY99 FY00 FY01 FY02

DS

O d

ays

Q1

Q2

Q3

Q4

9


Reduced A/R > 12 Months…

2.51

5.33

6.53

1.55

0

1

2

3

4

5

6

7

8

9

FY99 FY00 FY01 FY02

Rs

Cr

Q1Q2Q3Q4Average

18%

53%

36%

10


Improved Inventory Turns…

0

2

4

6

8

10

Q1 Q2 Q3 Q4

Nu

mb

er

of

Tu

rns

FY99 FY00 FY01 FY02

11


Improved E:R…

3633

27

2321

0

5

10

15

20

25

30

35

40

E:R

%

FY98 FY99 FY00 FY01 FY02

12


Improved Productivity…

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

FY99 FY00 FY01 FY02

Rs

Cr

Q4Q3Q2Q1

67%

40%

31%

21L

35L

49L

64L

13


Improved Debt…

40.9 37.630.5

26.3

0

10

20

30

40

50

Rs

Cr

FY99 FY00 FY01 FY02

14


Improved EVA, EBIDA, EPS…

-20

-10

0

10

20

30

40

FY99 FY00 FY01 FY02

EVA (Rs. Cr.)

EBIDA (Rs. Cr.)

EPS (Rs)

15


Transformed to Solutions Business…

58%

25%

36%

23%

43%

56%

10%

10%

12%

8% 9%

11%

0%

10%

20%

30%

40%

50%

60%

70%

FY00 FY01 FY02

Solution Voice Services Projects

% o

f T

otal

Rev

enue

16


Developed Both New and Existing Customers…

62%

38%

0%

10%

20%

30%

40%

50%

60%

70%

% o

f T

ota

l R

ev

Existing New

17


More Solutions…Less Boxes…

50%53%

66%

0%

10%

20%

30%

40%

50%

60%

70%

FY00 FY01 FY02

Revenue from Top 100 Customers

18


More Solutions…Less Boxes…

39%

44%

57%

0%

10%

20%

30%

40%

50%

60%

FY00 FY01 FY02

Revenue from Orders valued Rs 1 Cr and More


Market Share By Product Groups

20


Enterprise Voice Solutions…

36%40%42%

0

100

200

300

400

500

FY00 FY01 FY02

Rs

Cr

0%

20%

40%

60%

80%

100%

Market Size TTL Rev Market Share

#1 #1 #1

21


Contact Center & CRM Solutions…

60%62%60%

0

40

80

120

160

200

FY00 FY01 FY02

Rs

Cr

0%

20%

40%

60%

80%

100%

Market Size TTL Rev Share

#1 #1 #1

22


Teleconferencing…

20%18%

15%

0

20

40

60

80

FY00 FY01 FY02

Rs

Cr

0%

5%

10%

15%

20%

25%

Market Size TTL Rev Market Share

#1Top 5 #2


Competitive Positioning

24


Enterprise Voice Solutions…

Alcatel8%

Siemens22%

TTL36%

Others15%

Nortel14%

Panasonic5%

25


Contact Center & CRM Solutions…

TTL60%

Nortel14%

Davox10%

Others8%

Parsec5%

Alcatel3%

26


IP Telephony…

Siemens4%

Others14%

Tata Telecom

42%

Cisco 30%

Nortel10%

27


Teleconferencing…

Tandberg10%

VCON5%

Others15%

Non-TTL Polycom (5 Partners)

50%

TTL-Polycom20%


Significant Wins

29


Voice & IP-PBX…

IISc Associates

Tata Memorial

Delphi Auto

Synopsis

Skyworks

Fisc India Sahara India

Star India

Mahanadi

Coalfields

SE Railways

L&T Infotech

IIT Guwahati

Sedco Forex

Nalco

GE Power

Mastek CCL Suzlon J P Morgan

Intel Nicholas Piramal

NPC Tata Infomedi

a

Orbit Resorts

Western Union

ITC Hotels

Network Associate

s

Sea World

NTPC

ONGC Honeywell

SECL Jaiprakash

Industries

Deutsche Bank

30


Teleconferencing…

CBI Mastek NIC IPCL

S B Patiala

Genesis IT

Reliance NDDB

Castrol CMC Wipro eServe

ABN Amro

Telco Geometric Software

TMTC

Bharti Telesonic

British Gas

Broadband

Sun Pharma

Wockhardt

Tata Sons

Serum Institute

Gujarat Gas

Cadila Healthcare

31


Converged Data Networks..

BIT Mesra TCS Proton Web

Daksh Tata Honeywell Kandla Port Trust

Emerson Tata Teleservices

IIT Mumbai

HP Tata Technologies

Khoday SS

ITC Tisco iServ

Inductotherm IOCL ONGC

32


Contact Centers…NIIT Bharti

TelenetJayshree Infotech

Spectramind

Wipro

Client Logic Customer Asset.com

Lawkim efunds WNS

IT Solutions Daksh PCS EXL Service Aysha Infotech

M Source Epicenter Reliance Intelnet Global

Immaculate

Interactions

Hughes Software

GTL Total Info-systems

Infotronics Transworks

Netscape iSeva Sutherland

Sitel Convergys

Allsec Technologie

s

Hiranandani

Tracmail Compaq Dell

33


Contact Center Market

0

10000

20000

30000

40000

50000

60000

International Domestic Total

Seats

60%


Customer and Employee Satisfaction

35


Differentiating on Customer Responsiveness…

4851

5557

54%

6467

73 75

70%

020

40

60

80

% C

us

t 8

,9,1

0…

..

Q1 Q2 Q3 Q4 Avg Q1 Q2 Q3 Q4 Avg

FY01 FY02

36


204 Co’sParticipated

65 Co’sShortlisted

No. 37 Tata Telecom

Strengths:• Organisation Culture• Work Environment• Faith in Co’s products, services &

technology• Effective Leadership• Relationship

Areas of Improvement:

• Opportunities for Development

• Delivery of Job responsibility

• Rewards

• Balance between work & personal life

Best Employer - #37 By Hewitt…


Readiness Video Clip


Management Philosophy

39


Management Philosophy

EmployeeValue

EmployeeValue

CustomerValue

CustomerValue

ShareholderValue

ShareholderValue

Profitable Growth

Profitable Growth

40


Operational Excellence

PerformanceCustomer Responsiveness

Parity

ParityParity

“A Great Deal”“Best Price”“Trouble Free Basic Service”

“Always at Cutting Edge”“High Price But Worth It”“Constantly Renewing and Creating”

“Really Understands my Business”“Exactly What I Need”“Close Business Partner’

Superior Profitability through:1. Superiority in Customer

Responsiveness2. Parity on the other two

vectors

Success

Customer Responsiveness as the Winning Strategy…

41


More Focused than Ever Before…

Cus

tom

er


Enterprise Communications Opportunities

43


Enterprise Communications Solutions Opportunities…

441 513 595691

410

120

135

162

195

67

96

134

187

320250

190

0

300

600

900

1200

1500

FY02 FY03 FY04 FY05

Siz

e in

Rs

Cr

Voice CC & CRM Converged Sol Conferencing

22%

22%

23% 40%

18%

30%

16%

CAGR By Product Groups

44


Focus Areas…

Converged Solutions

CC/CRM Solutions

Customer Support

45


Converged Solutions

Why?

• Installed Base• Growing Domestic Market

– Bandwidth Availability– Ideal for Multi-locations or

Multi-channel or Collaborative Applications

– Productivity Improvements– Attractive ROI

• CCs– Seamless Global Connectivity– Security

How?

• Focus• Expand Product Portfolio• Customer Education through

Solutions Workshops• Focus on ROI• TTL Lab Capabilities• Professional Services• Build C level Relationships• Partnerships with SI/GSIs

Risks: Must invest time to develop the market, slow take-off

46


CC/CRM Solutions…

Why?• Continued in-flow of

outsourced CCs to India– McKinsey/Gartner reports on

BPO identify huge upside potential for India

• Growing domestic market– Service Providers

– Financial Institutions

• Strong focus on Quality– Margin retention for operators

– Customers demand it

How?• Focus• Continued Expansion of

Portfolio• Avaya Global Connect• TTL Portal on outsourcing

to India• Marketing to the US C

levels• Flawless execution

Risks: US Backlash, Rapid consolidation of local operators

47


Customer Support…

Why?

• Mission critical applications

• Customers demand investment maximization

• Opportunities in multi-vendor environment for inter-operability, network integration etc.

• Globally higher willingness to pay for Services

How?

• Focus• Improved organizational

readiness– Services marketing

– Competencies

• Expand Services offers– Avaya Expert Systems

– Avaya Services offers

Risks: Must invest time to develop Services as a business, Slow take-off

48


Organizational Readiness…

Cre

atin

g Pr

ofita

ble

Gro

wth

& S

hare

hold

er V

alue

Redefining E

mployee Practices

ERP & CRM SystemsBusiness Partners’ Competency

Employee ProfileCustomer Engagement Model

ProfServices

Inorganic GrowthServices as Business

Applications Focus

Execution

Strengthening Customer Responsiveness

Leadership Focus

Portfolio of Products & ServicesSupply Chain

BrandingEmployee Competency

Directors

StructureBusiness Partners

99-02

02-03

03-04

04+

49


FY03 to FY05 Goals…

Overall Market Share

Overall Revenue Growth

Services Revenue

Margin

E:R

PBT

Headcount

Grow by 5 Pts

CAGR 22-25%

Grow from 10% to 14%

1-2% decline

1-2% decline

Maintain ROS%

Maintain current level

50


In Summary…

• Pleased with the overall performance• Key Strategies have delivered Results

– Voice to Converged Solutions Enabled Growth

– Box to Solutions Protected Margins

– Customer Responsiveness Positioned for Future

• Optimistic about Future– Market opportunities in 3Cs are encouraging

– Organization is better prepared than ever before

– Risks are manageable

• Tata Telecom is Uniquely Positioned to Win Customers– Proven Track Record in India

– Unmatched capabilities

51


converged solutionscc/crm solutions customer services tata telecom strategy at work niru mehta may...

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