An open letter to an operator CFO
This blog is by Thierry Boisnon, Head of Business Development, Global Services Portfolio Management, at Nokia Networks. Twitter: @BoisnonThierry
This blog is part of our #ExpertAdvantage series - aimed to give you the inside scoop on our Services strategy and vision.
I’d like to tell you about an interesting comment that caught my attention at the recent GTB CFO Summit held in March 2015.
Catherine Birkett, CFO at Interoute, said that, increasingly, her role is to advise her CEO in "every decision" rather than "just auditing and reporting the numbers". She said: "We have fairly limited capital so every discussion comes back to money. To talk about payback, you have to understand the technologies. You cannot comment if you don’t have an understanding.” (You can see these and other comments here).
The quote highlights the changing role of CFOs like you and the challenge you face in controlling the cost increases that can potentially arise from the growing complexity of mobile broadband networks.
We think Nokia Professional Services can help you to meet those challenges. We use the term ‘Expert Advantage’ to describe the benefits and, as Catherine says, it all comes down to money. And here’s why.
The industry accepts that there needs to be a shift from managing networks to managing services in order to improve the customer experience. Our Acquisition & Retention Study 2014 shows that simply improving service experience can help significantly lower churn rates.
Our Service Management solution is helping operators make this shift. In one case, an operator was able to boost service accessibility by 2.5%. We calculate that this seemingly small gain would enable the operator to win around €18 million extra revenue per year if extrapolated across all its more than 50 million subscribers. Our solutions can also help you to cut OPEX. By proactively identifying service issues, one operator eliminated about 7% of customer complaints, resulting in a cost saving of up to €473,000.
There are many other ways too. 3D geolocation technology offers a methodology with field-proven accuracy for best placement of small cells inside buildings and at different heights to deliver a higher monetary return on your infrastructure investments. In one case, a US operator was able to cut the TCO of its small cells by 21% by placing the cells in the right hotspots. With services for HetNets, up to 50% reduction in Total Cost of Ownership (TCO) can be achieved by planning the best mix of small cells and macro upgrades. Our experts help identify the different technical options and compare the cost related to each.
Or maybe you are looking to shift CAPEX to OPEX? Our new Operations Support System (OSS) as a Service delivers more predictable and lower costs. You could reduce the operating costs of your OSS by 19% compared to conventional OSS business models – through lower installation, integration and operational costs.
I could go on, but I hope you now have a flavor of how Nokia Professional Services’ Expert Advantage can have a very positive impact on your financials by increasing revenue and reducing both your CAPEX and OPEX – while at the same time offering better customer experiences which improves customer loyalty.
If you have any questions or would like to discuss this, please contact me. I look forward to hearing from you.
Also, make sure you visit our Expert Advantage page for a closer look into our successful services projects.
Head of Business Development, Global Services Portfolio Management, Nokia Networks
Please share your thoughts on this topic by replying below – and join the discussion with @nokianetworks on Twitter using #NetworksPerform #mobilebroadband #ExpertAdvantage #CFO #Services.