RECALL No 6 – B2B
… to the 6th edition of Marketing RECALL, McKinsey’sregular telecoms publication for senior executives.This edition is exclusively dedicated to B2B marketing.The B2B segment already comprises about one thirdof many telecoms operators’ revenues, and growth ratesare still positive (even in mature markets). This segmentis not only of current importance, but it representskey opportunities for the future as well. B2B serviceshave the potential to protect operators’ (core TC) marginsand at the same time trigger innovation.Because of its attractiveness, a diverse group of playersis entering the B2B scene, with not only alternative carriersmoving into this space, but also many IT playersexpanding their offers into telco-related services as well. As a result of this newly competitive landscape, many telcos have significantly changed the way they addressthe segment. In fixed as well as in mobile, they havegrown their services well beyond the network, added various types of managed IT, TC, and ICT services,and evolved to the full-fledged outsourcing of certaincustomer applications.In this edition we will explore key telecoms B2B learnings. We’ll first look at how to capture the growth opportunity,outlining the ways in which telcos might think aboutembarking on theICT transformationof their businessmodels to successfully move into this realm. To complementthe more medium-term focus of this article, we’ll thendiscuss the relatively quick wins of pragmatically boostingnear-term ICT marginswhile working on the longer-termindustrialization of B2B operations.Moving beyond ICT services, we turn toward the mobilespace and examine how deliveringmanaged mobileservicesto business customers can offer operators inmaturing markets a potential path toward their revenueaspirations. As these mobile B2B customers representtwice the value of their consumer counterparts, wethen shift our attention to themobile channel strategy most appropriate to reaching them.Next, we shine the spotlight on the small and medium business (SMB) end of this segment. In particular, we outline how deliveringICT services to SMBs– a majorchallenge for many operators – can be done successfully.The importance of a B2B focus is not confined to maturemarkets. Our next article describes the developmentof one operator’semerging market strategy as an exampleof how local telcos can shape their own markets by leveraging the experience of more developed ones.There are many opportunities in B2B, but achieving eventhe most realistic aspirations requires the right set of key performance indicators. Our final article takes a look at the fundamentals of B2B performance managementas a means of helping to ensure optimal value creation. We conclude this round of insights by giving the final wordtoJoachim A. Langmack of T-Systems. He shares his views on the advantages and challenges of a telecomsoperator offering “end-to-end” ICT services and hisprediction of the future trends in the ICT market.The editors would like to thank Rene Langen and KatrinSuder from the leadership of our global B2B TelcoInitiative for shaping the content of this issue. Our hope –as always – is that you will find these insights usefulfor your work. Your comments on this issue as well as yourideas regarding topics you would like to see coveredin issues to come are very much welcome.