Product Design & Development Process

IIR’s 4th Annual

African Telecom Billing & Revenue Management Forum
Incorporating RA Functions Into The Product Design & Development Process

Presented By Syed Thameem
3rd – 7th Sep 2007 Cape Town International Convention Centre

Syed Thameem

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Product Design & Development Process
Agenda:Risk Assessment for Products & Services How RA is going to assist identify any potential areas of revenue loss Examining all Payment options for current & future products Why the products are failing? Challenges in the third party and billing How can we make successful product launch and maximising revenue revenue End of the presentation

Syed Thameem

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Product Design & Development Process

Risk Assessment for Products & Services
Telco’s are losing millions of $ lost in the launching of new products and services due to inadequate risk assessment. Most of Telco’s give importance to the risk assessment done by RA RA is playing pivotal role in the risk assessment for new services and products There’s no industry best practices available. Risk assessment methodology differs from product to product and operations also. There are 4 phases in the Product/services launch process. RA should be in a position to advice different departments about the risks involved in the new product/service in advance

Syed Thameem

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Product Design & Development Process

Market dynamics key
You need a deep understanding of how the market works if you want to stand out from the crowd The markets The regions The consumers The enterprises The offers The functionalities The future

Syed Thameem

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Product Design & Development Process
Product/market Matrix

Product Market Present

Present Market Penetration Market Development

New Product Development

New

Diversification

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Product Design & Development Process
Opportunity Assessment
Concept Phase Opportunities – a sample screening matrix

A typical phase-gate process for new product development can be used to evaluate and filter ideas. This approach has been shown to improve the probability of achieving marketplace success with a product or service. The Process flow (next slide) shows the flow of ideas into the first phase called the Concept phase. During this phase, the idea is surfaced and rapidly evaluated based on some of some specified criteria. These criteria can include: 1) Fit with corporate strategy 2) Market size 3) Revenue potential 4) Fulfilled customer needs 5) Technical or operational capability
Num ber

Opp ortu nity Nam e

Fi t wi th St ra te gy ?

Marke t Size > $xxx M

Reve nue Pote ntial > $xxx M

Valu e Prop ositi on Ident ified ?

Size of Invest ment Need ed

Tec hno log y Ava ilabl e? Y or N

Ti me to Re ve nu e

2007Sep-a 2007Sep-b 2007Sep-c 2007Sep-d 2007Sep-e

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Product Design & Development Process

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Product Design & Development Process
Identifying areas for Risks
• • • • • • • • • • • • •
Is the idea suggested/drawn by Marketing is workable? Is the event billable by existing billing system? Are do we require more investment needed to bill? Is the pricing included the taxes, interconnect cost and etc? Is the cost benefit analysis done? Whether we make profit or loss? Is all the resources available? Is the product/service properly configured in the billing system? Is the Universal Acceptance Test done? For different service/packages? Is the soft launch successful? Are the monitoring tools/reports are available? Is the End to End process document agreed and signed off? Have we communicated to the stake holders about the launch? Product launch kit

RA has to conduct independent testing of the new service/product end to end. And certify to the Management that there’s no leakage for revenue. Then finally Marketing should take off!
Syed Thameem

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Product Design & Development Process
Customer segmentation is a fundamental part of the Marketing Strategy

Overall company strategy and objectives
Customers

MARKETING STRATEGY
SEGMENTATION

Matching target customers

IMPLEMENTATION

Competitors

Segment analysis

Example: • Demographics • Geographic • Behaviour

Target selection

Example: • Youngsters • Achievers • SME

+
with attractive service offering

Suppliers

MARKETING MIX Services
Example: • Voice • Messaging • Mobile Internet Example: • Own shops • On-line sales • Retailers

Pricing Marcom

Technology

Example: • Per session • Per transaction • Buckets Example: • Direct mail • Newspaper • TV

Macroeconomics
Syed Thameem

Sales & Distribution

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Product Design & Development Process

The mobile operator business-model
Traffic, Activation, Monthly Traffic, Activation, Monthly

Revenues Revenues

Application Services Application Services

Other Other
Interconnection Costs Interconnection Costs

EBITDA EBITDA

Line Rents & Site Rents Line Rents & Site Rents Fuel/Maintenance Fuel/Maintenance

Operating Operating Expenses (OPEX) Expenses (OPEX)

Management Fees Management Fees Marketing Marketing Billing Billing

EBITA EBITA

Distribution commission Distribution commission Eng. & Operation Eng. & Operation

Net Net Income Income

Admin & Salary Admin & Salary General Expenses General Expenses Depreciation Depreciation Financials & Amortization Financials & Amortization Income Tax Income Tax

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Product Design & Development Process

3 Year Technology Roadmap

Tools
Product 2 Product 1 Product 3 Product 4

Products

Platform

Release 1

Release 2

Release 3

2007
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2008

2009
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Product Design & Development Process

PRODUCT LAUNCH TOOL KIT
1. Product launch plan 2. Competitive product comparison 3. Product Naming guidelines 4. Product over review 5. Marketing Budget 6. Collateral & Sales Tool kit 7. SWOT analysis 8. Product features and benefits 9. ROI 10. Press release 11. Customer presentation

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Product Design & Development Process
RA Assisting in identifying and arresting revenue leakages Revenue Assurance can assist in identifying and arresting revenue leakages in different ways
– – – – – – – – – – – –

To attend the product development team for discussion, design, pricing and implementation Product/ service mechanics are fine and should be easily understandable by the layman Accessing the Proposal to find any loopholes for revenue leakages Access the marketing strategy regarding the launch of new service/product Information cascade to down level Testing the service before launching whether we are billing correctly or not Helping the management by continuous monitoring and reporting All complaints logs received immediately escalated for further improvement Feedback received from the market should be discussed Continuous testing of the product/service Continuous improvement of the product/service to maximise revenue Road map for the Product/service offered

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Product Design & Development Process
Why Products are failing?
Companies invest millions of $ each year developing new products and trying to increase their revenues and profitability. Some of these are good and some aren’t. Nonetheless, they all have 1 thing in common: without appropriate marketing activities they will most likely to FAIL.
75% of new product development programs fail commercially.

Below are Top 10 reasons for failure
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Not planning early enough No sustaining marketing plan Poor quality or design of the product Inadequate funding Overestimating results Driving customers to buy your competition Announcing too early No dedicated review program Not communicating early enough Spending lot of time in the product design / launch
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Syed Thameem

Product Design & Development Process
Examples: If you don’t configure properly, you will loose revenue!
45,000 40,000 50,000 35,000 30,000 25,000 30,000 20,000 15,000 10,000 5,000 0 20,000 40,000 60,000

333 count TOPUP COUNT
10,000

0

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Product Design & Development Process

Challenges in the 3rd Party Billing
If we go for the 3rd Party billing and we will face the following challenges; ☻ Billing not properly - leads to revenue loss ☻ Improper configuration, what to bill and how to bill ☻ Source code/design defects ☻ Lack of monitoring tools ☻ No Customer care and support ☻ No agreed process for sending and receiving data ☻ No backup procedures ☻ No disaster recovery and BCP

Syed Thameem

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Product Design & Development Process
Challenges in the 3rd Party Billing

In order to over come challenges in the 3rd Party billing we need to have the below things:√ Proper singed agreement by both parties √ Service level agreement and responsibilities and rights level √ Process flow and procedures (End to End) √ Proper configuration of the systems √ UAT √ Agreed Disaster and BCP √ Pre launch sign off √ Continuous monitoring and testing the services √ Reconciliation of the services √ Month end settlement

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Product Design & Development Process
How can we make successful launch & maximise revenue
First and foremost thing is

Planning Planning Planning

Planning is very important thing for any successful launch of product and service. If we don’t plan proper either we kill the product or even the whole company’s brand. We need to Plan early enough & involving different departments. Project plan and leader has to be… If the product is not satisfying the market, we loose the confidence and loose the market share. We need to launch the product which will sustain and customers has to satisfy it. Projections should be accurate, if don’t we can blow up in big. The projections are very important either under/over project, that will affect seriously. We need analyse the past data and consider. Creating excitement in the market, before launch of the product. Never do this, we need to sure and product has to be certified by the Assurance department. When everything is fine, Launch it. If you are ill prepared it will back fire!

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Product Design & Development Process
Each year, millions of dollars are wasted when products enter the market ill prepared to meet customer expectations and requirements. Insufficient customer feedback and lack of customer involvement during the development process are the key reasons for unsuccessful launches.

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Product Design & Development Process

Thank you for your attention Contact Details Syed Thameem sthameem@ug.celtel.com thamins@yahoo.com

Syed Thameem

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