The following example essay on “Stretegic Managemeny Vodafone” analyzes the work of a British company, one of the world’s largest mobile operators. The essay talks about the strategic management of the company.
Mobile operators are gaining the first mover advantage that enables them successfully to improve top line and build customer loyalty when they create innovative and differentiated products and services and launch them quicker than other competitors.In a fierce competitive mobile telecommunications market, gaining and maintaining cost and operational efficiency relatively has a great impact on bottom line improvements.
These operators can capitalize on IT capabilities to gain and maintain competitive advantages and improve both top line and bottom line to achieve their strategies and objectives. Vodafone Group is the world? s largest mobile operator to provide a total of 333 million subscribers with its products and services globally.The Group has a better understanding of the strategic values of IT as a source of competitive advantages to continuously improve both top line and bottom line in order to achieve its organizational strategies.
To improve top line, Vodafone Group has continuously developed and launched new differentiated products and services beyond traditional voice and simple data services to improve customer experience and build customer loyalty while adapting the advanced technologies faster than its competitors, optimizing entire value chains and redefining industry, and focusing on the Group Technology activities.
To improve bottom line, Vodafone Group has implemented its strategic initiative, „One Vodafone? program, which transforms 16 operating companies into a united operation to achieve streamlined cost effective and efficient organization.
Vodafone Group has embedded IT sharing, outsourcing, and centralization and consolidation strategies in order to achieve the objectives of One Vodafone program.
Radio access network are shared with Orange, IT application development and maintenance are outsourced to IBM and EDS, and supply chain management function and data centers are centralized and consolidated.Vodafone Group has developed group-wide strategy that is associated with its better understanding of the importance of the customer experience to its business success. The Group standardized on Siebel CRM platforms globally to gain a 360 degree view of customers, and measure and manage customer satisfaction, customer loyalty, revenue assurance, revenue growth and profitability.
Vodafone Group have been committed to helping all employees reach their full potential through ongoing training and development while Vodafone Group has embraced diverse workforce and created a leaner and agile structure with clear accountabilities.Vodafone Group capitalizes on IT capabilities to enable all employees to have access to a Learning Academy to deliver the one-stop shop for all learning and development solutions.
IT definitely plays a decisive role in Vodafone Group as a critical enabler to gain and maintain competitive advantages and to perform its business operations more efficiently and effectively. Understanding the values of IT is essential for people in Vodafone Group in order to successfully achieve organizational strategies and objectives. iii I.Introduction The mobile telecommunications industry is one of the fastest growing sectors around the globe.
Mobile operators are still able to gain the first mover advantage that enables them successfully to improve top line and build customer loyalty when they create innovative and differentiated products and services and launch them quicker than other competitors. In a fierce competitive mobile telecommunications market, gaining and maintaining cost and operational efficiency relatively has a great impact on bottom line improvements.
These operators can capitalize on IT capabilities to gain and maintain competitive advantages and improve both top line and bottom line in order to achieve their strategies and objectives. Vodafone Group Plc, which was established in 1982, is the world? s largest mobile operator that manages ultra large-scale mobile networks in 25 countries and has a presence through partnerships in another 39 countries. “Based on the registered customers of mobile telecommunications ventures in which it had ownership interests at that date, the Group had 333 million customers” (Vodafone, 2010).
Vodafone Group is one of the most influential companies in mobile telecommunications industry and now attempting to move into the fixed voice and broadband markets. The operator has a better understanding of the strategic values of information technology (IT) as a source of competitive advantages and has capitalized on IT capabilities to expand its marketplace more globally, and create and launch innovative and differentiated products and services like Vodafone 360 and Cloud Services more rapidly than other mobile operators in order to improve top line.
Vodafone Group strategically shares with or outsources some business activities to third partied, and centralize and consolidate other activities, which each group company had previously managed in each country, to Vodafone Group, in order to significantly gain and maintain cost and operational efficiency in order to improve bottom line.
IT definitely plays a decisive role in Vodafone Group. The objective of this paper is to analyze the IT management strategies, tools, initiatives and transitional planning in Vodafone Group to ensure that the operator capitalizes on IT capabilities effectively and efficiently to achieve their organizational strategies and objectives.
Vodafone Group has embraced diverse workforce and offers equal opportunities for all aspects of employment and advancement, regardless of race, nationality, sex, age, marital status, disability, religious or political belief, to understand expectations of its diverse customers around the globe and have required skills and competences to create and launch the innovative and differentiated products and services that Vodafone Group meets its customers? equirements. Vodafone Group created a leaner and agile structure with clear accountabilities in 2009 to accommodate rapid growth.
Three regions, including Europe, Africa and Central Europe, and Asia Pacific and Middle East, were created and each regional CEO was appointed. Along with the group-wide organizational restructuring efforts, several centralization initiatives have been accelerated, including supply chain, product development, IT and network programs, and terminal procurement.As the result, approximately 1,900 jobs were eliminated but the overall number of employees grew 9% because of rapid growth in emerging markers and business acquisitions. Although organizational structure has been continuously improved in response to market environmental changes, Vodafone Group has been committed to helping all employees reach their full potential through ongoing training and development.
In the 2009 financial year, Vodafone provided an aggregate of 230,000 days of training, an average of three days per employee”, and “this training program was extended to all employees via an online interactive course that has been translated into 11 languages and rolled out to 18 countries” (Vodafone, 2009, p. 18).
Vodafone Group capitalizes on IT capabilities to support its one-stop shop for all learning and development solutions that enable all employees to have access to a self-service development portal and Learning Academy on its intranet to develop required skills and competences.
The self-service portal is fully integrated for reporting and analysis purposes. Online „Source a Course? application incorporates a wide range of training options across multiple categories that all employees are able to individually select, and also provides them with opportunities to source a course if their specific training requirements are not on the system.
Vodafone Group has developed the group-wide strategy that is associated with its better understanding of the importance of the customer experience to its business success.Delivering value-added products and services that can meet individual customer needs and widen the scope of its relationship with its customers are essential to reshape its competitive environment.
Vodafone Group has standardized on Siebel CRM platforms across three geographies to collect, analyze and share customer information across multi-channels, including customer service agents, sales and marketing teams, to gain a 360 degree view of customers, and measure and manage customer satisfaction, customer loyalty, revenue assurance, revenue growth and profitability.Employees in Vodafone Group have access to a centralized repository for customer information in the systems.
Siebel CRM systems have helped Vodafone Group optimize upselling and cross-selling opportunities to grow revenues more quickly, predictably and profitably, and also significantly reduce the time to create and execute precisely targeted customer retention and acquisition while improving its ability to measure marketing return on investment.The systems also encourage Vodafone Group to improve productivity of customer care organizations by automating previous complicated workflow and reducing the time it takes to respond to answers, and Vodafone Group has gained significant cost savings.
The customer experience is assessed by Vodafone Group through customer surveys, repairs and returns, mystery shops and written complaints but its challenges in existing Siebel CRM systems is to completely implement revenue assurance, churn and win-back functions from the viewpoint of a customer-centric imension. Revenue Assurance (RA) is a vital requirement in any telecommunications operators to reduce and prevent revenue leakage that is identified as a uncontrolled costs derived from “network provisioning, CDR and mediation errors, billing and interconnect inconsistencies, loss of data and corrupted files, fragmented support systems, incoherent databases, and manual or ill defined business processes” (TeleManagement Forum, 2009, p. 5).