Slide 1: ValueFirst Case Study: Business Model Innovation in Enterprise VAS Inaugural Summit, Mobile Monday, New Delhi, 5th August, 2006 Nimesh Bhandari, VP -Mobility Solutions
Slide 2: Agenda  ValueFirst Introduction  Market Trends  The Opportunity  Business Model  Learnings  Demonstration: ITC  Discussion
Slide 3: ValueFirst Introduction
Slide 4: ValueFirst Introduction •1000 days in Operations • Leading “data only” MVNO for Enterprises • Over 500 Enterprise and SME customers • Presence in Germany, India, Pakistan, Romania, UK • Over 60 channel partners • Customers across multiple verticals and functions
Slide 5: Market Trends
Slide 6: Bulk of future growth to come from “Struggling India” Future Growth *McKinsey Quarterly, 2005 Special Edition, Fulfilling India’s Promise
Slide 7: Two Different India: Need for Communication convergence 25 Million + • Urban India • Young India • Educated India How many are online 24X7 hours ? 100 Million + • Semi-literate India • Middle-aged India • Semi-urban India *IOAI Economic Research Report 2005
Slide 8: Future growth of the Internet: SME segment is fast adopting “IT” as the way of life • SME consists of more than 95% of the industrial units in India • India has 3.4 million registered SSI units • SME segment gives direct employment to more than 20 million people • Computer Penetration in SME is of the order of 10% • The bulk of growth in PC Industry is coming from the SME segment • Indian companies spreading their tentacles in B & C cities to cater SMEs • Increased competition demands SME to become customer oriented • Gaining importance of agile decisions – communication with sales force • Cost competitiveness necessary to exist and grow *Discussion Paper: Small and Medium Forest Enterprise, 2003
Slide 9: The Opportunity
Slide 10: Provide convergent “Enterprise” communication solutions using the lowest common denominator of technology…. ….to communicate with internal, external and extended customers
Slide 11: Enterprises needs end-to-end mobility solutions where parts of the value chain are owned by other players but only one contact point Mobile Application Providers Short-Code Operators Internet Service Providers Mobile Operators System Integrators Enterprise Content Value Addition Delivery Mobile Subscriber MVNO: End-to-end provider of Mobility Solutions
Slide 12: Business Model
Slide 13: Business Model: Evolution and Strategic Choices  Mobile data solutions independent of operator, handset and mobile networks (GSM/CDMA etc.)  Suitability in high performance enterprise scenario and also in SME environment with poor internet connectivity  Enterprise complexity to be hidden from the user agent of multiple verticals/functions  Fulfill requirementsTCO of the product line without increasing the  Reliable and dependable mobility platform for excellent customer service  Penetrate Low ARPU but high volume SME segment  Ensure customer stickiness  Hedge revenue risk Tapping the Enterprise market to cater niche requirements SMS driven applications Component based Product suite Client server based Product route Configurable Rules Engine SMPP connectivity, Operator / server redundancy Channel strategy Productized service Multiple revenue streams, multiple verticals OE partners, Custom application development, Direct Sales
Slide 14: Business Model: The Blue Print Target Segments Large Corporates Enterprises SMEs and SOHOs Target Solution Product-driven Mobile-enabling businesses IT-centric and Operator / Network neutral Operational Model Product-driven go-to-market strategy Channel partner lead-sales Configurable architecture Redundancy and failover and Least cost routing Revenue Model • Licence fees • Set-up and configuration charges • Line rental • Support charges and • Usage charges
Slide 15: Business Model: Technology Overview
Slide 16: Learnings
Slide 17: The acceptance of mobile data solutions ranges from satisfactory to excellent based on the function it is being deployed Human Resources Sales & Distribution Marketing IT Infrastructure Customer Service Logistics IT/ ITES Banking & Financial Services Insurance FMCG Media & Entertainment Healthcare Manufacturing Professional Services Excellent Good Satisfactory Poor Very poor
Slide 18: With acceptance in a particular vertical, there is a shift in the service value proposition Touch-point Integration Interest registered in database Queries User/Agent insurance policy ValueFirst Application ODBC Database Real-time processing Work-order generated instantly User/Agent Queries insurance policy ValueFirst CRM Connector Call Center Application Phone Call Value added Services Queries Existing User insurance policy ValueFirst CRM Connector CRM Application SMS to agent of the customer Insurance Agent
Slide 19: Adaptive Sales Strategy: The sales tactics to be changed based on the service proposition Proposition Touch-point Integration Real-time Processing Value-added Services Examples Check bounce message Order processing Birthday reminders Client Benefits Business Case Selling Mode Cost Leadership ROI Benefits Solution System Integration Agility Turnaround time Solution & Consulting Business process Reengineering OEM partners SAP Connector Industry growth rate Customer Intimacy Customer retention Consulting App. Development IT Capability Partnership Product Growth Rate Channel Partners VelocityPlus Mobile additions System Integrators SMS Barcode Org. budget
Slide 20: SME segment has shown high acceptance of the technology due to its low TCO, high ROI proposition Airlines Stock Brokers Media Banks Insurance Agents/CA’s Auto Dealers Industry Acceptance Education /Hospitals Logistics FMCG BPO/ITES Mutual Funds 1 2 3 4 5 6 Sales Effort
Slide 21: Demonstration: ITC
Slide 22: ITC Limited: Mobile ERP Mobile CRM Corporate SAP Mobile MIS Certification Server Mobile SFA Mobile SCM Customers Distributors Top Management Sales Force Dealers Retailers
Slide 23: Summary
Slide 24: Enterprise requirements can be fulfilled by hiding the complexity and delivering information over the “LCD” of mobile technology Mobile apps - Capex; Powerful; Complex Mobile email – Capex; high-end devices SMS - is not sexy! Still everyone uses it!
Slide 25: Visit us at nimesh.bhandari@vfirst.com +91 9871396163 www.vfirst.com ©2006 ValueFirst Messaging All rights reserved. No part of this publication may be reproduced, transmitted, transcribed, stored in a retrieval system or translated into any language in any form by means without the written permission of ValueFirst Messaging