Click here to download the following free whitepaper on managed services from Alcatel-Lucent: alu_managed_services_business_transformation

Overview: Service providers are moving from a network-centric to service-centric environment to meet consumer and enterprise demand for innovative multimedia applications and services.  Increasing focus on the end user and meeting this demand requires advanced network deployment but in the current cash strapped environment how can this be accomplished while at the same time achieve reduction in total cost of ownership.

Through creative partnering and innovative risk sharing options, new managed services and outsourcing business model options provide the framework for creating a next generation enabled portfolio of services for consumers and enterprises ready for Telco 2.0; without compromising network performance, service quality and security.

This session will address various business model options such as Managed Infrastructure, Managed End to End Services Operations and Full Outsourcing (Virtual Telco); and how they help Communications Service Provider achieve not only cost transformation but also business transformation.

What you will learn from attending this webinar:

ü Options available to help Service Providers move from network and technology to services innovation and to help improve the customer experience; all while transforming cost structures.

ü New business model solutions that couple market innovation and the integration of business, operations, partners and technology

ü Risk-sharing business model approaches and the value delivered

ü Case study examples of service provider approaches to move from product to network view, financing to risk-sharing options and network-centric to services-centric growth and innovation

Speaker biographies:

Andreas Herzog

President, Managed Services Division

Alcatel-Lucent Services Group

As President of the Managed Services Business Division, Andreas Herzog oversees and directs all programs and operations related to creating and defining strategic outsourcing and managed services relationships with Service Providers and Enterprises.

Previously Andreas Herzog was Vice President Network Operations and Outsourcing, leading a business unit of Network Operations Division with worldwide responsibility for network operations and outsourcing projects in the segments of telecom operators and large enterprises. He has been instrumental in building Alcatel-Lucent Outsourcing business where we manage over 85 client networks that support over 180 million subscribers worldwide. Andreas had a similar function in Alcatel’s Integration and Services Division (2004-2006) after having served as General Manager for the same division in Alcatel Austria (2000 – 2004). In this role Andreas developed the service offering from a small market position of Alcatel to become #1 on the telecom network services market in Austria.

Andreas Herzog has also held a variety of other positions at Alcatel since his entry in 1986, including Chief Technical Officer of the only European fixed network operator owned by Alcatel, United Telecom Investment in Hungary (1993-1997).

Andreas received a Master of Computer-Science from Johannes Kepler University in Linz, Austria.

Kris Szaniawski

Principal Analyst
Networks
kris.szaniawski@informa.com

Kris is a Principal Analyst within Informa Telecoms & Media’s Industry Research division.
He is responsible for the research programmes and analyst teams that support Informa Telecoms & Media Intelligence Centres in the Networks and Mobile Operator topic areas. Kris’s areas of expertise include network vendor strategy and managed services although he tracks and comments on a broad range of topics in the mobile space ranging from mobile broadband to support systems. Recent research has included Networks Intelligence Centre modules and executive briefings.

Kris has 14 years experience in the telecoms sector as a journalist and analyst. He has worked on a wide range of advisory services, reports and consulting projects and contributed to numerous industry publications. He regularly conducts briefing sessions with operator and vendors and chairs and moderates international conferences.




Comments Post a comment
  • Andreas Herzog

    Does Alcatel-Lucent’s perspective on managed services growth projections align with what we have seen from Kris?

    Reply to James on Approaches to Business Transformation
    • Andreas Herzog

      In general yes. While the exact growth numbers may vary from view to view the germaine point is that the market is growing at a high rate (18% – 22%) and offers one of the fastest growth areas in the services business.

      Reply to Andreas Herzog on Approaches to Business Transformation
  • Do you think there is a market for Hosting Telecom Applications like Messaging, Charging and Billing? If yes where do you think asset ownership should sit?
    Thanks
    Br
    Michele Salemi

    Reply to michele on Approaches to Business Transformation
    • Andreas Herzog

      Yes I do, in fact we do have a hosting business within Alcatel-Lucent. The scope of the platforms hosted will grow and change as telecom operators drive to not only lower operational costs but add applications that can help them grow their revenue. Key to our model is that operators will have options to either own the specific assets, enter into a hosting arrangement, or other models that enable them to lower Capex investments. Each carrier may have different strengths and assets they want to leverage. The key point is in Alcatel-Lucent we will offer multiple and flexible business models to help the Carrier succed in their business model.

      Reply to Andreas Herzog on Approaches to Business Transformation
      • Not very convinced how each player is going to generate a margin out. I can see how the service providers saves money but the outsource provider/partner will struggle on the margins in the emerging markets. How is this handled or there are different regional based service levels offered?

        Reply to Baiju Shah on Approaches to Business Transformation
        • Andreas Herzog

          Yes there are different models and service arranagements in the different regions. But key in our message is that Manged Services is moving away from just being a cost saving decision. It is migrating to both cost savings and assisting Telcom Operators in meeting their overall business objectives and growing their revenue. To be clear cost reducion is still important but the larger scope of business transformation requires working with a true partner. The partner shares both the risks and rewards of the success of the Telcom Operator business plan. In this partnership both parties (vendor and operator) are driven by the same success factors. Therefore margins issues are adressed.

          Reply to Andreas Herzog on Approaches to Business Transformation
          • Thanks. I understand your view of tighter partnerships, but could you please be more precise on the POTS issue:

            In your view, could outsourcing help operators to prolong life expextancy of Alcatel-Lucent RSUs and S12?

            Ragnar Jensen on Approaches to Business Transformation
          • Andreas Herzog

            Yes we do and to be specfic there are a couple of areas that we view are drivers in this space. Key in this area is the aging workforce and the ability to find these legacy skills. We can help ensure that the skills needed are available. Second these networks become more expensive to maintain therefore putting greater margin pressures on the services. Our Managed Services contract and Multi-Vendor expertise can help lengthen the life cycle and improve both the cost structure and performance of these networks. We see this as a key advantage that ALU brings to the market. And one the growth areas for our business.

            Andreas Herzog on Approaches to Business Transformation
  • How well are Alcatel – Lucent placed to grow the various areas of their business as there has been large number of skilled resources leaving ALU.

    Reply to Baiju Shah on Approaches to Business Transformation
    • Andreas Herzog

      We are confident that Alcatel-Lucent has the most skilled workforce in the industry, and while we are going through some reductions in particular areas of our business, we are growing and hiring in Managed
      Services and other key areas of our business.

      Reply to Andreas Herzog on Approaches to Business Transformation
  • I agree with your view of what operators need to address going forward.
    However, I miss one aspect: How can Managed Services companies help operators with their legacy.

    More specifically: How can Alcatel-Lucent help operators to
    • extend the lifetime of PSTN and ISDN well beyond 2020 to avoid unecessary migration of unwilling customers to more modern service platforms. Eg, not migrating senior citizens to new solutions that not add any value to them.
    • shift production cost base to more variable cost base (more aligned with decline in POTS subscriptions)

    Regards

    Reply to Ragnar Jensen on Approaches to Business Transformation
    • Andreas Herzog

      We view this area as one of the most promising in Managed Services. In fact Alcatel-Lucent is the market leader in manged services contracts in the legacy wireline space. We work with operators today to both mantain these revenue rich networks and help migrate some of their customers to the new technologies but also maintain the exisiting infrastructrue. We have contracts in both NAR and Europe that provide this service. And our flexible business models can help make favorable cost models for our customers.

      Reply to Andreas Herzog on Approaches to Business Transformation
  • I am a Telecom Enterprise Architect / Manager and know very well the environment of the so-called ‘Next Generation Billing”.

    In your presentation you spoke about carriers, service providers, Capex and Opex etc… but never you dealt with what is the main feature of telecom today : fraud & revenue leakages. It indeed represents according to main analysts 10 to 12% of all telecom revenue. This could be partly solved thanks to the next generation billing. Could you tell me your thoughts about this?
    Best regards,
    Jean-François Bardet

    Reply to Jean-François Bardet on Approaches to Business Transformation
    • Andreas Herzog

      Agree that this is a key area of concern with Telecom operators. We beleive the entire OSS/BSS environment has ample room for improvement in both Simplification as well as quality improvement. We definitely have OSS/BSS solutions in our plans, as this will be a critical part of an overall business transformation plan that Telecom operators must address.

      Reply to Andreas Herzog on Approaches to Business Transformation
  • Andreas,

    What challenges do you face in positioning managed services to operators and how do you over come those?

    How do you show tangible business benefits to the operators & their fear of job loss? its like unless you eat, you don’t know the taste. How do you over come these?

    Thanks

    Vibhor

    Reply to Vibhor on Approaches to Business Transformation
    • Andreas Herzog

      The key to success is building a realtionship with our customers that is both at the executive level and is focused on the overall benefits of a Managed Services partnership. Within the Telcom operator there are of course people who feel threatened but we gain the support from the executive levels. Secondly we stress that our rentention rate of transfered employees is very high and we offer very exciting job opportunites within ALU which we share with the working levels. This combined approach helps to overcome the fear aspect of a Managed Service arrangement.

      Reply to Andreas Herzog on Approaches to Business Transformation
  • What functions of the Telecom Operator’s business are so fundemental that it would be detremental to their strategic objectives to seek to outsource them?

    Reply to Tim Joyce on Approaches to Business Transformation
    • Andreas Herzog

      The simple answer is that “operational functions” such as design engineering operations depolyment are the stong candidates for outsourcing. Those that are “planning fuctions” are generally kept in house. That said what is important in this new environment is that even the fuctions that are not directly outsourced, but maintained “in- house”, in a partnership the benefits of the vendor are still leveraged. So there will be a number of fuctions that our outsourced (primarily operations based) some that are more collaborative and more belnded than purely outsourced (planning) and some that are maintained intenally.

      Reply to Andreas Herzog on Approaches to Business Transformation
  • Andreas Herzog

    yes robin we will email you a copy of the presention.

    Reply to Andreas Herzog on Approaches to Business Transformation
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