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Networks & Infrastructure
SOFNET 08: New products key to telcos’ survival
Keynote speaker Leopold urges transformation of current business model
by Kendrick Struthers-Watson
The rapid introduction of new products will be the future lifeblood
for telcos, claims Helmut Leopold, MD of platforms and technology for
Telekom Austria. But making the transition to this new business model
requires significant commitment from the company.
This viewpoint was presented by Leopold at the SOFNET Conference and
Exhibition keynote yesterday. “Making the move to this content-based
model is meaning that senior executives must allocate a significant
amount of their time to making it a success. We’re investing enormous
amounts to understand what is being accessed by our subscribers and why.”
According to Leopold, with the current processes and system
landscapes, telcos introducing new content products are very likely to
fail.
“What needs to happen is a transformation of the approach to new
product introduction together with a high level of senior management
commitment. Those involved must also be accountable for the results of
any new product that is launched.”
Telekom Austria has around 800 products in its portfolio and plans to
introduce over 130 this year. “We look at around 45 new products each
month, although only about a third are totally new with the rest being
upgraded versions of existing products.”
However, Leopold accepts that the company continues to face a number
of challenges with regard to its product line-up.
“We have a complex set of products and tariffs running across many
systems, and this is made more difficult by not having a single view
of these packages and prices. We also have issues with the high cost
of product management and revenue assurance. However, by adopting a
fresh approach we’ve managed a 70 percent reduction in the development
effort required to launch a new product.”
The last, and perhaps most important, lesson that Leopold had to
impart was that this transformation within Telekom Austria was only
happening due to the removal of the single largest barrier — a
change in company culture.
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