CORPORATE INTERNSHIP PROJECT REPORT ON

“STUDY OF TRANSFORMATION OF COST BY REDUCING

HUB DELIVERY FALIURE’’

Submitted in partial fulfilment of the requirement

For the award of degree of
Post Graduate Diploma in Management
Fortune Institute of International Business, Delhi

SUBMITTED BY – SUBMITTED TO –
MANJU PATHAK Prof . PRASHANT VERMA
ROLL NO- 81
 ACKNOWLEDGEMENT

I feel myself privileged at having an opportunity to thank the people who had
helped me and guided me at all the stages of project.

At this moment of accomplishment , first I pay homage and profound

gratitude to my Faculty mentor, ‘’Prof . Prashant Verma” for giving me
opportunity to learn under his guidance . I shall always remain indebted for his
excellence guidance , constant encouragement , valuable suggestions and kindest
help without which I would have never succeeded in completing this project . His
lessons not only provide the management knowledge but also inculcated morals
and value helpful for overall personality development.
I express my sincere gratitude to my organization and my Corporate
mentor, ‘’ Miss. Nidhi Kapoor’’ who have been always there to provide her
support and help in all possible ways to make the Internship project work to its
completion . I shall remain ever grateful to her for understanding,
encouragement, constructive criticism and her extensive discussion around my
work. Though her continuous review of my work progress , intelligent sessions
and guidance I successfully overcame my doubts and difficulties.
I am also extremely indebted to our Hon’ble director , ‘’Dr A.K. Sinha’’
for providing necessary infrastructure and resources to accomplish my studies.

MANJU PATHAK - 81
 CERTIFICATE

This is to certify that the work embodied in this Internship project entitled “ Study of
transformation of cost by reducing hub delivery failure’’ has been satisfactorily completed
by Manju Pathak the student of final year ,for the partial fulfilment of the requirement of
PGDM programme during the academic year 2018-2020. The work was carried out
satisfactorily under the supervision and guidance of “ Prof. Prashant Verma” at Fortune
Institute of International Business, Delhi.

Prof. Prashant Verma Dr . A.K.Sinha

Director
FIIB
 DECLARATION

I Manju Pathak , hereby declare that the project report entitled “ Study of transformation of
cost by reducing hub delivery failure’’ submitted by me to the Fortune Institute of International
Business , in fulfilment of the requirement for the award of degree of PGDM programme under
the guidance of Prof. Prashant Verma is my original work and the conclusions drawn therein
are based on the work performed by myself .
The Report submitted is my own work and has not been duplicated from any other source . I
shall be responsible for any unpleasure situation.

Place: Delhi Manju Pathak

Date: 1st July 2019
TABLE OF CONTENTS

EXECUTIVE SUMMARY- ................................................................................................................. 8

Telecom Industry .................................................................................................................................. 9
Introduction- ....................................................................................................................................... 9
Value Chain- ....................................................................................................................................... 9
Global Players-.................................................................................................................................. 10
Introduction to the company – .......................................................................................................... 11
FINANCIAL PERFORMANCE....................................................................................................... 11
BT’s Vision & Strategy .................................................................................................................... 12
MISSION STATEMENT- ................................................................................................................ 12
PRODUCTS AND SERVICES- ....................................................................................................... 13
SIZE OF THE ORGANIZATION .................................................................................................... 15
MARKET SHARE- .......................................................................................................................... 16
ORGANIZATION STRUCTURE OF THE COMPANY ................................................................ 17
Position of the company in the company- ......................................................................................... 17
REVIEW OF THE ASSIGNMENT .................................................................................................. 19
ROLE AND RESPONSIBILITIES: ................................................................................................. 21
PROJECT OBJECTIVE- ..................................................................................................................... 22
IMPORTANCE OF PROJECT- ....................................................................................................... 22
ACTION PLAN- ................................................................................................................................. 23
SWOT ANALYSIS- ............................................................................................................................ 25
SWOT ANALYSIS OF BRITISH TELECOM ............................................................................... 25
SWOT ANALYSIS OF PROJECT- ................................................................................................. 26
FINDINGS-.......................................................................................................................................... 27
RECOMMENDATIONS- .................................................................................................................. 28
REFERENCES- ................................................................................................................................ 29
LIST OF FIGURES

Figure:1 -Segment wise percent share of revenue .................................................................................. 9

Figure:2 -Top 20 global telecom companies......................................................................................... 10
Figure:3-BT’s financial result from 2008 to 2018 ................................................................................ 11
Figure :4 -BT’s Vision & Strategy – ..................................................................................................... 12
Figure:5-Products- ................................................................................................................................ 13
Figure:5-Services offered - ................................................................................................................... 15
Figure:6- Market size of BT business ................................................................................................... 16
Figure:7- BT consumer market share.................................................................................................... 16
Figure:7- Business organization chart- ................................................................................................. 17
Figure:8 -Recent Mergers/Acquisitions/Alliances – ............................................................................. 18
Figure:9- Delivery Module- .................................................................................................................. 19
Figure:10- Workflow process .............................................................................................................. 24
 Study of transformation of cost by reducing Hub delivery failures

EXECUTIVE SUMMARY-

This project aims to highlight the importance of increasing the efficiencies of our standard
operating procedures and making them leaner and increasing the accuracy level of
operations. The project contributes to all the BT values like Personal, Simple and Brilliant. Personal -
We understand our customer's pain and ready to do whatever it takes to improve their experience. We
understand how I feels if broadband/phone services are not working when you need it. That too just
because correct Hub/equipment were not delivered to you.

Simple - We are trying to keep the process as simple as possible for end customers. So that they do not
need to approach our customer support team again and again. Brilliant - We are trying to make changes in
existing process to increase hub delivery accuracy. Considering what our customer has to go through as
per the current process wherein he is facing challenges in terms of getting HUB. It can be frustrating
more for a new customer who is joining BT for the better customer experience when he doesn't receive
his equipment at right time. And same goes for our existing customers. So, once we complete this
project we will be able to serve Brilliant Experience to our customer's in a much more
Personalized manner with our Simple process. We have a perfect mix of members from all the
required departments. Which includes, Customer facing Operations, Management information system
and Transformation team . We have involved few team members also who will help us in analysis and to
deploy the solutions. We observed few weeks ago that complaints of hub failure are getting high.
Moreover, customer is escalating such issues which is impact on end customer immensely. So far, we
have analyzed the data for last 6 months and understand that there are many hub failures. Due to these
failures, no. of complaints is also getting high. Post cause and effect, we will prepare improvement plan
which will include different solutions based on cause and effect and Design of experiment. We will
also prepare Failure Mode Effect Analysis for Risk Analysis and will take approvals from sponsor and
commercial lead. Target closer date of improvement phase is Aug19. After observing the trend from the
last 3 months I can see that there is huge impact on our customers and customer experience. Can see a
clear view that on a weekly basis almost 2400 customers are getting impacted due to this. Hence, we are
in touch with several teams to get more in-depth data to analyze and work towards it. We will be getting
touch base with on shore teams who can help in tracking of the delivery. Once the complete
implementation of the project will be done along with execution, our customer will get the Excellent
Customer Experience which will help us to retain our existing customer and will lead to bring more
new customers too

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Telecom Industry

Introduction-
Telecom company is an organization that provides voice or data transmission services, such as AT&T,
Verizon and Nippon. A company that specializes in making carrier-class hardware and software, such
as Lucent and Nortel Networks, is referred as telecom company. The telecommunications industry
within the sector of information and communication technology is made up of all Telecommunication
companies and internet service providers and they impart a crucial role in the evolution of mobile
communications and the information networking.
In this sector with hundreds of market players the competition is always high thus competitors rely
heavily on price and success is largely upon the brand name strength and investment in efficient billing
systems. The corporate market remains this industries favourite since the corporate customers and
clients are mostly concerned about the quality and reliability of calls and data delivery since they are
less price sensitive as compared to the residential customers.
The various factors contributing to the growth of telecom industry includes technology , market
competition and high investments such as wireless communication and satellites. Some of the other
factors contributing are affordability of services, customized services and demand for high speed
internet. On the other hand high cost of value added services may restrict the growth of the market and
maintaining the security also poses the challenge.

Value Chain-
Figure:1 -Segment wise percent share of revenue

SEGMENT % SHARE OF REVENUE

Device vendors 20

Infrastructure and platform vendors 5

Operators 55

Over-the-top content (OTT), content, advertising

10
services

Retail and distribution 10

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Global Players-

Figure:2 -Top 20 global telecom companies

It is estimated that Global Telecommunication Industry Market will reach USD 23.1 billion by 2025.
In 2016, the global telecommunication industry market was valued at USD 17.01 billion approximately.
Now, over a forecast period (2017-2015) it is anticipated to grow with a healthy growth rate of more
than 3.45%.
Factors such as cloud computing , development of 4G-3G cellular networks, increased coverage of
satellites are some of the prominent growth drivers for telecommunication industry. The
telecommunication can broadly be segmented into Telephone , Satellites , cable communication and
Internet satellites
The huge population base of Asian countries namely China and India is one of the key factors
responsible for the growth of the telecommunication market in Asia Pacific. China, being one of the
largest mobile operators in the world, is likely to represent a significant portion of the market share in
telecom industry. Another important reason for China’s growth is its flourishing international trade.
Japan is expected to become a prominent regional market as foreign investments build up.

(FOBES, 2016)

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Introduction to the company –

British Telecom Group plc is a British multinational telecommunication holding company

headquartered at London, U.K. It operates around 180 countries and is the largest provider of fixed line
, broadband , mobile communications , subscriptions to televisions and IT services.
BT provides services like
 Fixed Line Telephony
 Mobile Telephony
 Broadband Internet
 Fiber -optic communication
 Digital Television
 IT & network services
 Home security
 Fleet Management
 Supply chain management
 Telecommunication equipment
Area served – Worldwide
BT company established in 1846 was an government owned company . It was privatized on 19 th July
1982
BT is the royal warrant holder of British royal family and serves 18 million ppl in Great Britain. BT has
primary listing in the London Stock Exchange and a secondary listing on New York Stock Exchange .
BT Group provide services to corporate as well government customers worldwide. It also controls large
number of subsidiaries such as BT Ireland , BT Italia , plus net , Openreach

FINANCIAL PERFORMANCE-

Figure:3-BT’s financial result from 2008 to 2018

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Figure :4 -BT’s Vision & Strategy –

MISSION STATEMENT-

BT's mission, our central purpose, is to provide world-class telecommunications and information
products and services, and to develop and exploit our networks, at home and overseas, so that we can:
- meet the requirements of our customers, - sustain growth in the earnings of the group on behalf of our
shareholder.

(BT GROUP, 2014)

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PRODUCTS AND SERVICES-

Figure:5-Products-

PSTN

ISDN

IP STREAM ADSL

BUSINESS BROADBAND

SHDS

ADSL 2+

IP CONNECT GLOBAL

IP CLEAR FLEX

EFM

FTTC

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BT Group provides a massive range of product and services namely-

1) Broadband
 Fibre broadband
 Ultrafast broadband
 BT net leased line
 4g Assured

2) Mobile
 Mobile phones
 Tablets
 Sim only
 Mobile broadband

3) Voice
 Phone lines and feature lines
 ISDN
 Conferencing
 Business numbers
 Pay phone services

4) Phone systems
 On premises phone systems
 VoIP phone systems
 BT cloud voice SIP
 BT one phone

5) Networking
 Ethernet VPN
 Ethernet point to point
 IP connect
 Manged WAN

6) Computing and apps

 Microsoft office 365
 BT business apps
 Enhanced IT support
 BT web hosting
 Mozy Backup

7) IT & data centre services

 Bring your own device
 Cloud and Data centre
 BT Device protection

These services are supported by partnerships with the likes of Cisco, HP and Microsoft.

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Figure:5-Services offered -

SIZE OF THE ORGANIZATION –

BT Group is the 15th-largest telephone operating company by total revenue ($27.3 B USD).It operates
across 180 countries worldwide.

Revenue – US $34.8 billion (2018)

Number of employees: 106,400 (2017)
Net income: £2.032 billion (2018)
Revenue: £23.746 billion (2018)

Subsidiaries: BT Ireland; BT Italia; Plusnet

(BT GROUP) 2018

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MARKET SHARE-

Figure:6- Market size of BT business

Figure:7- BT consumer market share

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ORGANIZATION STRUCTURE OF THE COMPANY-

Figure:7- Business organization chart-

Position of the company in the company-

British Telecom Revenue-

€ 24,062 million- FY ending March ( y-o-y growth =27.5%)
€ 18,879 million – FY ending 31st March 2016

Ownership / Major Shareholders- The major shareholders of BT as of 31st March

2017 include – Blackrock with 5.50% of total voting rights , T-Mobile holding
with 12,07% of voting rights and Orange SA and Orange Telecommunication
group ltd representing 4% of total voting rights.

Full year 2017/18 dividend unchanged at 15.40 pence per share. Final dividend
unchanged at 10.55 pence per share.
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• Dividend policy unchanged: to maintain or grow the dividend each year whilst
reflecting a number of factors, including underlying medium term

earnings expectations and levels of business reinvestment.

• BT will look to maintain an unchanged dividend over the next two years, given
our outlook for earnings and cash flow over this period.

Figure:8 -Recent Mergers/Acquisitions/Alliances –

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REVIEW OF THE ASSIGNMENT-

Topic – Study of transformation of cost by reducing hub delivery failure.

Figure:9- Delivery Module-

BT caters to approx. 27 million residential customers and to solve their issues we have different
customer support departments. We are a part of My order team where we send equipment to customer's
premises like routers and hubs. It has been observed that customer complaints for hub delivery failure are
getting high. Due to these customers are facing lots of issues like services not working, multiple follow-
ups on complaints and incorrect charges on bill. Moreover, cost of hub delivery is getting higher because
of multiple hub delivery failure. Through this project we would like to reduce the count of failure of hub
delivery which will not only enhance customer experience but

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 Study of transformation of cost by reducing Hub delivery failures

reduce the cost of hub delivery also. On an average we are sending out almost 32000 HUBs/week to all
new and existing customers. Out of which 2400 HUBs (approx.)/week are duplicate/incorrect HUBs.
Cost of sending 1 HUB (delivery charges) is 9.99 GBP which is incurred by BT. Hence, weekly cost
incurred by BT is 23,300 GBP.

It has been observed that customer complaints for hub delivery failure are getting high. Due to this
customer are facing lots of issues like services not working, multiple follow-ups on complaints and
incorrect charges on bill. Moreover, cost of hub delivery is getting higher because of multiple hub
delivery failure. Through this project we would like to reduce the count of failure of hub delivery which
will not only enhance customer experience but reduce the cost of hub delivery also. Basis HUB data
we can see an impact of almost 2400 customers/week leading to poor customer experience and no service
till customer received the correct HUB. This also leads to incorrect charges in bill which will end up with
further customer dissatisfaction and more customer complaints. Once we complete the project we will be
able to track and send the correct HUB in the first go which will lead to Excellent Customer
Experience

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Figure:11 -Representation of Statistics -

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PROJECT OBJECTIVE-
The project contributes to all the BT values like Personal, Simple and Brilliant. Personal - We understand
our customer's pain and ready to do whatever it takes to improve their experience. We understand
how I feels if broadband/phone services are not working when you need it. That too just because
correct Hub/equipment were not delivered to you.
Simple - We are trying to keep the process as simple as possible for end customers. So that they do not
need to approach our customer support team again and again. Brilliant - We are trying to make changes in
existing process to increase hub delivery accuracy. Considering what our customer has to go through
as per the current process wherein he is facing challenges in terms of getting HUB. It can be
frustrating more for a new customer who is joining BT for the better customer experience when he
doesn't receive his equipment at right time. And same goes for our existing customers. So, once we
complete this project we will be able to serve Brilliant Experience to our customer's in a much
more Personalized manner with our Simple process.

1) Improve right first time/ one touch resolution and cycle time
2) Operational productivity and efficiency
3) Using power of communication for effective strategies
4) Deliver superior service to the clients with efficient use of effective technological
processes.
5) Increase in the number of Client base will ultimately increase the revenue
6) Maintain GRC mechanism which will help in improving the quality of service
7) Focus on the things that makes the difference to the effectiveness and efficiency.

IMPORTANCE OF PROJECT-

In delivering an effective support function to the organization, finance must balance its three key
priorities: cost reduction, compliance requirements and efficient operations.

Be efficient in the operation of the finance function

► Reduce the costs of the finance function

► Realize benefits of investments in finance

► Integrate finance teams of acquired businesses

► Streamline commodity processes including reporting

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ACTION PLAN-

STEP-1
Various simulation activities were performed by me to get a vibe of work objective and to find
out the right approach to carry on in order to achieve the project objective with right problem-
solving approach for example
 Writing down the examples of all the three types of requests from real life scenario
1. Simple request
2. Catalogue request
3. Non-catalogue request
4. Complex request

 Preparing the complete Life Cycle of any Real-Life Scenario i.e.

1. Selling a new car
2. Changing Tariff plan
3. Choosing a post-paid connection
4. Shifting of Landline connection
STEP- 2
Another important step in learning the “must ensure’’points about the process of the project
few of them are as follows
 100% accuracy on validate &assign
 We must deliver by contractual delivery date
 We must understand the gap between first circuit delivered and last circuit delivered
also called as lag time . This lag time should be as small as possible
 Performing Root cause analysis of why we missed a contractual delivery date
 Quality closure
 Are we billing everything what we have delivered?

STEP-3
Reviewing the suppliers cost of the equipment to figuring out what major factors should be
considered so that the ultimate pricing doesn’t go up like
1. Discount% age
2. Maintenance% age
3. Latest CPE supplier quote
4. Mark-up% age (contract specific)

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STEP-4
Reviewing the circuit pricing on following parameters-
1. Type of circuit
2. CoS
3. Access Speed
4. Port speed
5. Resilience
6. Address
7. GPOP
8. Supplier

STEP-5
Suggested and Implemented ways to reduce the time lag –
1. Validating request properly
2. Coordination with the teams for timely installation
3. Tracking the request
4. Considering reverse SLA of the suppliers while ordering product/services
5. Analyze supplier delivery trend
6. Timely escalations of OTD

Figure:10- Workflow process

SOURCING CONTRACTING RECEIVING

PAYMENT REPORTING

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SWOT ANALYSIS-

SWOT ANALYSIS OF BRITISH TELECOM -

The SWOT analysis of BT presents the internal and external analysis of the company with
insightful details of the current market position and future growth strategy of UK’s most
popular telecom player . The SWOT analysis essays the detailed business care of British
Telecom with insights into its strength ,weakness, opportunities and threats.
BT has experienced considerable headwinds in the UK public sector and International
corporate markets. BT has performed well on integrating EE the mobile company it acquired
in 2016 improving customers experience and achieving great headway with BT sports . Its
competitive advantage lays in its well-established brand which consumers can easily connect
to and diversified offerings which are keeping pace with advanced technology. BT is well on
its way to become UK’S digital champion.

STRENGTHS –
 Healthy balance sheet with strong financials and cash flow from operations
 Strong base in UK with strong consumer base
 Delivering strong consumer experience through great products and services.
 Wide spectrum of products and offerings

WEAKNESS –
 Largely dependent on UK markets with limited presence in high growth Asia
Pacific region
 Large pension deficit and accounting scandal in Italian business to hurt BT
 Separation of Openreach from BT will result in loss of branding and increased
cost of operations.

OPPORTUNITIES -
 Development of 5G with strategic partnership with NOKIA and HUAWEI
 Exclusive broadcasting rights to European football to help BT further expand
its customer base.
 Launch of new products and services capitalizing on synergy from EE
acquisition .THREATS-

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 Impact of BREXIT and subsequent devaluation of British Pound to hurt

profitability.
 Pressure of government regulations and license.
 Intense competition and decrease in profits due to cheaper competitor offering

SWOT ANALYSIS OF PROJECT-

•Does not have clarity on

•Reduction in cost of financial data
operations •Outcomes depends
•Diverse expert team solely on analysis
composition
•Will be able to get back
to costumers quickly
•Strict timelines

STRENGTH WEAKNESS

THREATS OPPORTUNITIES

•Wrong analysis of data

could spoil customer • Analyzing post cause
experience &effect relationship
•Preparing faliure mode
effect analysis for risk
analytics

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FINDINGS-

Market dynamics are changing .The pace of change and innovation I our industry is mind-blowing
but our strong market position and the unique advantages of our leading network, brands channels
and strategic partnership mean we are all well positioned to take the advantage of next big trend
convergence. But these are challenges ahead ; the market we operate in are slowing, competition is
intensifying, enterprise customer are moving away from legacy products and we face some unique
regulatory pressures. If we are to continue to grow and succeed ,we need to find ways to stand out
from the competition- thus for this BT has come up with many new plans

ONE BT- By bringing our individual strengths ,expertise and knowledge together, as One BT It
describes the approach we need to take for further journey.

The evolution of our current strategy – There are some elements that remain the same , such as our
purpose : to use the power of communication to make better world However, our goal is to drive
sustainable growth, so we have simplified the core elements to focus upon –

1. Delivering a differentiated customer experience

2. Investing in integrated network leadership.
3. Transforming our operating model

This means that we will place an unshakeable focus on creating a standout customer experience
building the worlds leading integrated network and transforming the way business works like never
before

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RECOMMENDATIONS-

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REFERENCES-

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