fs 1008 france telecom conquests 2015 - the possibilities and solutions

8/6/2019 FS 1008 France Telecom Conquests 2015 - The Possibilities and Solutions

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#9845-63 2010 Frost & Sullivan www.frost.com 1

France Telecom: Conquests 2015 - The

Possibilities and Solutions

F r a n c e T e l e c o m : C o n q u e s t 2 0 1 5

The Possibilities and Solutions

France Telecom has unveiled its group-wide industrial project, "Conquests 2015", which

outlines the future challenges and how to overcome those. "Conquests 2015" is partly a

response to the recent internal crisis in the company, resulting in employee suicides in large

number that have severely damaged the employee morale. Furthermore, it recognises theevolving ICT environment, where increased competition, changing customer demands and

regulatory pressures continue to redefine expectations. The company's various country-level

operations and business lines have been brought under the plan to form a co-developmental

approach, underlining the fact that the role of telecom participants is now becoming increas-

ingly global and consolidated in nature. Initial outlines for the plan were drawn in March

2010 by 50 executives and subsequently reworked by around 500 managers around the

world to shape the final version that was presented on 5th July 2010.

The plan addresses the needs of all four stakeholders employees, customers, shareholders

and the societies in which the company operates. It aims to achieve the needs by four mainstrategies:

The conquest of employee pride

The conquest of networks

The conquest of customers

The conquest of international developments

While the first strategy is internal to the company, the remaining three are the strategies that

most major telecom operators in Europe have been following, or are planning to follow. By

building on these strategic foundations, France Telecom aims to create and provide value

through brands, services and distribution channels across both saturated and emerging

markets.


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P u r p o s e o f C o n q u e s t 2 0 1 5

With the changing customer expectations, all industries are focusing on customer-centric

approaches. As the number of applications sought are increasing rapidly, mobile device users

are demanding a combination of services from operators. Consumers are looking forward for

devices with Bluetooth and Wi-Fi connectivity options and not just a simple phone. With the

ongoing evolution of Internet (the search component being improved from word to picture

and the concept of cloud computing becoming more widely accepted), operators will have to

provide more sophisticated modes of data transfer and security systems to meet customer

requirements. With new entrants from the Internet domain and existing local telecom opera-

tors, consumers expect better quality of service and cost-effective customised subscription

plans.

The social crisis existing in the French market is another major reason for this initiative. The

Group is facing shortage of projects, decline in management flexibility and has witnessed

almost 50 suicides in its French operation since 2008. As a result, France Telecom realised

that there is a need to change the human resource policy to win back trust and mindshare

among its employees.

C o n q u e s t o f E m p l o y e e P r i d e

Human resources are the soul of any company. In order to implement great plans and to

realise the vision of the management, employee satisfaction levels must be high. Due to the

recent human resource crisis in the company, improving employee conditions has become a

core element of "Conquest 2015". With a new vision for human resources, an improved

management style and shared values, the company aims to regain employee confidence. The

initiatives vary from setting up "Orange Campus" (a community of managers to address

employee needs), launching "Orange Expert" (a community dedicated to the transfer of

knowledge within the company) to simplifying the IT systems in place and recruiting 10,000

additional employees in France by the end of 2012. For current employees, France Telecom

plans to improve the present situation by offering motivating career paths, improved working

conditions and empowering managers to give greater flexibility to their staff.


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C o n q u e s t o f N e t w o r k s

Regardless of the strategic direction taken by a telecom operator, network development

remains the core element of the business efficient and high-bandwidth networks are the

foundations upon which advanced, value-added services are delivered. France Telecom

already has in place a strong network and related expertise in terms of the technicians

involved in maintaining and developing the infrastructure. In France, Orange is planning to

invest two billion euros in deploying a new fibre optic network over the next five years. By

the end of 2012, 40 per cent of households in mainland France will be fibre-optic enabled;

this plan will be extended to cover entire France by the end of 2015. From a mobile perspec-

tive, France Telecom has developed considerable expertise with respect to Long Term

Evolution(LTE) and is awaiting clarifications with regard to the regulatory environment

before deployment. Whether it is monetisation of data, deployment of smart architecture,

development of data centres or initiating green infrastructure programs, France Telecom has

included a broad range of initiatives in its plan to benefit from the evolution of cellular

technology.

C o n q u e s t o f C u s t o m e r s

One of the main aims of "Conquest 2015" plan is to retain existing customers; the operator

believes that by providing quality service and improving the customer relationship it can

build trust and confidence across its user base compared to other operators. Content is one of

the main drivers for the telecom sector. France Telecom has invested heavily in its content

services (both IPTV and web based) to deliver exclusive services to its customers an unan-

swerable question has been whether its huge investments will reap financial returns given therelative infancy of the digital content sector. The company also desires to be a "multi-media"

coach, making the digital lives of its customers easier. To determine where to focus its atten-

tion and resources, France Telecom needs to identify, analyse and understand the needs of its

customers and try to create value based on these needs. With more than 3,000 researchers

and a strong customer-oriented R&D, The company aims to develop services that are close to

their core businesses, such as healthcare, online services and banking services.


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Following the footsteps of other operators such as the British Telecom (BT), Telefonica,

Deutsche Telekom and Telecom Italia, France Telecom's "Conquests 2015" provides a clear

indication of where the operator plans to take its business over the next five years. Although

France Telecom is yet to announce its financial targets, the plans of other operators aim to

improve the financial positions of their respective companies. BT is looking forward to invest

in fibre broadband, television and services for global companies and governments in the Asia

Pacific region where it already has a strong base. Deutsche Telekom aims to provide services

such as connected home, online services and intelligent network services. To improve the

revenue, the company will be supporting the roll out of HSPA+ and will be looking at the

opportunities created by the adoption of cloud computing. Telefonica's two year plan,

"Bravo", is based on the four pillars of customer focus, integrated services, new platforms

and a common culture. Through its three year plan, Telecom Italia is focused on increasing

turnover in its domestic market while accelerating growth in Brazil. By focussing on high

profit margins, operating efficiency gains and selective investment, the company plans to

boost cash flow generation. Although the plans of all of these operators are financiallyoriented, the plan of France Telecom seems to be wider and covering almost all stakeholders

involved with the company. The international goals of operators other than France Telecom

are not clearly mentioned in their multi-year plans. While BT is looking at the Asia Pacific

region and Telecom Italia at Brazil, are markets where the respective operators have already

established a strong presence. "Conquest 2015" will evolve into a complete plan for France

Telecom if the operator announces specific financial targets so that the objectives become

quantifiable.

The Path Towards Conquest 2015

France Telecom has delivered a clear vision of its mid-term strategy, and will also gain

employee support by making them a core part of the plan. Although the plan has been clearly

outlined, there has to be a clear view on how all four conquests are going to be achieved in

practice by 2015. Such a wide vision will need real dedication and a sharp policy implemen-

tation from all the levels of the organisation if it is to become a reality. Each division in the

organisation must be able to relate themselves to the vision set by "Conquest 2015" and

should have individual goals that have a direct and visible impact on the accomplishment of

the initiative. While the plan seems to provide answer to a number of issues facing the Euro-

pean telecom sector, it is yet to be witnessed whether the execution will provide the required

results by 2015.

fs 1008 france telecom conquests 2015 - the possibilities and solutions

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