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Posts Tagged ‘Communications’

[McKinsey & Co] Over the past three years, McKinsey has tracked the rising adoption of Web 2.0 technologies, as well as the ways organizations are using them. This year, we sought to get a clear idea of whether companies are deriving measurable business benefits from their investments in the Web. Our findings indicate that they are.

Nearly 1,700 executives from around the world, across a range of industries and functional areas, responded to this year’s survey.1 We asked them about the value they have realized from their Web 2.0 deployments in three main areas: within their organizations; externally, in their relations with customers; and in their dealings with suppliers, partners, and outside experts.

Web 2.0 technologies improve interactions with employees, customers, and suppliers at some companies more than at others. An outside study titled “Power Law of Enterprise 2.0” analyzed data from earlier McKinsey Web 2.0 surveys to gain a better understanding of the factors that contribute most significantly to the successful use of these technologies.

The findings demonstrate that success follows a “power curve distribution”—in other words, a small group of users accounts for the largest portion of the gains. According to our research, the 20 percent of users reporting the greatest satisfaction received 80 percent of the benefits. Drilling a bit deeper, we found that this 20 percent included 68 percent of the companies reporting the highest adoption rates for a range of Web 2.0 tools, 58 percent of the companies where use by employees was most widespread, and 82 percent of the respondents who claimed the highest levels of satisfaction from Web 2.0 use at their companies.

To improve our understanding of some underlying factors leading to these companies’ success, we first created an index of Web 2.0 performance, combining the previously mentioned variables: adoption, breadth of employee use, and satisfaction. A score of 100 percent represents the highest performance level possible across the three components. We then analyzed how these scores correlated with three company characteristics: the competitive environment (using industry type as a proxy), company features (the size and location of operations), and the extent to which the company actively managed Web 2.0. These three factors explained two-thirds of the companies’ scores.

Furthermore, while all of the factors are slightly correlated with one another—for example, there are more high-tech companies in the United States than in South America—each factor by itself explains much of why companies achieved their performance scores. Management capabilities ranked highest at 54 percent, meaning that good management is more than half of the battle in ensuring satisfaction with Web 2.0, a high rate of adoption, and widespread use of the tools. The competitive environment explained 28 percent, size and location 17 percent. Parsing these results even further, we found that three aspects of management were particularly critical to superior performance: a lack of internal barriers to Web 2.0, a culture favoring open collaboration (a factor confirmed in the 2009 survey), and early adoption of Web 2.0 technologies. The high-tech and telecom industries had higher scores than manufacturing, while companies with sales of less than $1 billion or those located in the United States were more likely to have relatively high performance scores than larger companies located elsewhere.

While the evidence suggests that focused management improves Web 2.0 performance, there’s still a way to go before users become as satisfied with these technologies as they are with others. The top 20 percent of companies reached a performance score of only 35 percent (the score increased to 44 percent in the 2009 survey). When the same score methodology is applied to technologies that corporations had previously adopted, Web 2.0’s score is below the 57 percent for traditional corporate IT services, such as e-mail, and the 80 percent for mobile-communications services.

Their responses suggest why Web 2.0 remains of high interest: 69 percent of respondents report that their companies have gained measurable business benefits, including more innovative products and services, more effective marketing, better access to knowledge, lower cost of doing business, and higher revenues. Companies that made greater use of the technologies, the results show, report even greater benefits. We also looked closely at the factors driving these improvements—for example, the types of technologies companies are using, management practices that produce benefits, and any organizational and cultural characteristics that may contribute to the gains. We found that successful companies not only tightly integrate Web 2.0 technologies with the work flows of their employees but also create a “networked company,” linking themselves with customers and suppliers through the use of Web 2.0 tools. Despite the current recession, respondents overwhelmingly say that they will continue to invest in Web 2.0.

How companies are benefiting from Web 2.0: McKinsey Global Survey Results

[telecommunications] An important milestone in connecting the Greater Mekong Sub-region (GMS) was achieved recently with the official inauguration of a fiber optic network linking the six neighbouring countries of Cambodia, China, Laos, Myanmar, Vietnam and Thailand.

According to the Phnom Penh Post, the completion of the connection with Laos completes the first phase of an infrastructure project designed to provide a transmission speed of 620 Mbps. Known as the GMS information superhighway, the project is managed by TC and Huawei Technologies from China.

Indochina gears up for next generation services – First phase involving fiber optic network to link six countries completed

[cellular news] Laos based mobile network operator, Star Telecom is reported to be preparing to launch a 3G network in the near future. The Chinese Xinhua news agency, citing the Vientiane Times reported that the 3G network would be developed in partnership with Vietnam’s Viettel.

Viettel set up the partnership in Laos late last year with local firm, Laos-Asia Telecommunications. Star Telecom has set itself a target of 1.5 million customers by 2010.

Star Telecom is studying the market before deciding when to introduce the 3G service to local customers, Saeng Alounboulana, head of the Lao Star Telecom Administration told the newspaper. He added that the network operator had completed installation of 700 base transceivers in Laos and planned to complete 1,200 phone signal stations around the country at the end of this year.

According to estimates from the Mobile World analysts, Star Telecom ended Q1 ‘09 with around 63,000 subscribers.

Laos Operator Plans 3G Network Rollout

[AT&T] U.S. companies are preparing for a global economic recovery to begin in the first half of 2010 according to a new “Road to Growth” study from AT&T.

The 2009 AT&T Road to Growth Study is based on more than six dozen one-on-one interviews with IT executives employed with multinational companies in the U.S. and Europe. The U.S. portion of the study included CIOs and senior information technology executives from approximately four dozen multinational companies averaging $4.75 billion dollars revenue and operations in 28 countries. All U.S. executives interviewed for this study work for a U.S company or a U.S. subsidiary of a foreign company, and they have responsibility for making decisions about IT strategy and budget allocations.

2009 Road to Growth Study Key Findings:

Time horizon to achieve ROI narrowed by 50%: In today’s economic climate, U.S. companies have significantly shortened the time frame over which return on investment (ROI) is delivered.

More than half of U.S. IT executives interviewed stated they are under pressure to deliver a return on investment in half or less than half the time. As a result, two-thirds cited that the

change has affected their IT budgets, strategies and priorities. The study found that companies are less willing to invest in longer-term projects or projects where the return does not come quickly. One CIO stated that the added pressure has forced the company to focus on IT projects that give at least 100% ROI in 12 months; otherwise, the project(s) get dropped.

Cost cutting and improving productivity are top priorities: Cost cutting and increasing revenue remain the two primary business goals cited by U.S. companies. To achieve the goals, survive the recession and move towards growth, IT strategies are focused on:

Reducing operating costs: 87 percent cited “reducing operating costs” as “extremely or very important”;
Improve collaboration with customer and partners: 85 percent cited “improved collaboration with customers and partners” as “extremely or very important”;
Enhancing workforce performance and productivity: 83 percent cited “enhancing workforce performance” as “extremely or very important”.
“U.S. companies are under added pressure to deliver, and IT investments are more critical than ever before,” said Bill Archer, chief marketing officer, AT&T Business Solutions. “From the study, we expect U.S. companies to come out of the recession leaner and more agile. Technologies that cut cost, reduce redundancies and loss, and improve efficiencies top the priorities list.”

Short and long term strategies are similar: The Road to Growth study found that U.S. companies employ multiple strategies to address business goals, and do not distinguish between short-term and long-term strategies. It appears that U.S. companies are reducing the time period for their long-term forecasting until after the recession is over. The role IT plays in helping U.S. companies achieve long-term strategies is very similar to the role IT plays in supporting the companies’ short-term business strategies.

Business continuity & security solutions have the highest positive impact: IT investments and priorities will go towards lowering cost, reducing risks and improving productivity and efficiency. The study found that “business continuity and security solutions” will have the biggest positive impact on business growth as U.S. companies prepare for an economic turnaround. This is closely followed by “enterprise mobility solutions” and “Web delivery solutions”. Areas of IT investment that are expected to have a high to moderate impact on businesses are “unified communications services” and “hosted solutions.”

These findings are in line with AT&T’s annual study on business continuity and disaster recovery preparedness for U.S. businesses in the private sector, conducted in June this year. The dramatic rise in social networking and mobility trends is presenting new challenges to companies’ network security, disaster planning and business continuity programs. Businesses are stepping up their technology investment and efforts to meet these challenges, despite the economy. IT executives indicated in the Road to Growth study that they expect to make the biggest financial investments in business continuity and security solutions and hosted solutions in the next 9 months.

Disparate views in Europe: The European portion of the Road to Growth study found that in contrast to the U.S., European executives have a consensus view that the global economy will rebound between Q1 and Q4 2010. The majority of executives expect a recovery towards mid to the end of 2010. Additionally, 50% of the European executives stated that there is no change in the time period with which they achieve ROI.

The consensus between European and U.S. IT executives is that the two largest global economies – the United States and China – will emerge first from the current recession.

For more information on the AT&T Road to Growth Study including the complete research results, please visit www.att.com/roadtogrowth.

AT&T Study: U.S. Companies Preparing for Economic Recovery in First Half of 2010

[network world] With word that the Federal Communications Commission will next week begin to take a broad look at the wireless industry and how it is regulated, one wonders: What took so long?

The Government Accountability Office pretty much wondered the same thing in June with a report on the FCC’s handing of the wireless industry. That report, which was none-too-popular at the FCC, said the agency needed to reexamine its handling of a number of growing problems. The key areas of concern from the GAO report:

Billing: Complexity of wireless billing statements leads to lack of consumer understanding. Bills contain unexpected charges and errors.

Terms of service contract: Consumers are subject to fees for canceling their service before the end of their contract term (early termination fees), regardless of their reason for wanting to terminate service, and effectively locking consumers into their contracts. Consumers are not given enough time to try out their service before having to commit to the contract. Carriers extend contracts when consumers request service changes.

Explanation of service: Key aspects of service, such as rates and coverage, are not clearly explained to consumers at the point of sale (when they sign up for the service).

Call quality: Consumers experience dropped or blocked calls as well as noise on calls that makes hearing calls difficult. Consumers experience poor coverage, which in rural areas may be the result of lack of infrastructure and in urban areas stems from lack of capacity to manage the volume of calls at peak times.

Customer service: Consumers experience problems such as long waits, ineffective assistance, and insufficient resolution to problems.

Some other interesting facts from the GAO survey/report:

GAO estimates about 21% of wireless phone users who contacted their carriers’ customer service were dissatisfied with how their carriers addressed their concerns; FCC’s efforts to handle complaints are an important means by which consumers may be able to get assistance in resolving their problems. However, the results of the GAO’s survey of 1,143 randomly selected consumers, suggested that most consumers would not complain to FCC if they have a problem that their carrier did not resolve. Specifically, the GAO said that of 13% of wireless phone users would complain to FCC if they had such a problem and that 34% do not know where they could complain.
In response to the areas of consumer concern noted above, wireless carriers have taken a number of actions in recent years. For example, officials from the four major carriers, Verizon Wireless, AT&T, Sprint Nextel, and T-Mobile, reported taking actions such as prorating their early termination fees, offering service options without contracts, and providing Web-based tools consumers can use to research a carrier’s coverage area, among other efforts. In addition, according to CTIA–The Wireless Association, the wireless industry spent an average of $24 billion annually between 2001 and 2007 on infrastructure and equipment to improve call quality and coverage.

The GAO estimates that about 19% of wireless users wanted to switch carriers since the beginning of 2008 but did not do so. Then 42% of these wireless phone users who wanted to switch but did not because of the early termination fee.
The GAO plans to complete a full report in the fall and expects to make more recommendations then.

FCC will have tough time reining-in burgeoning wireless industry
see also GAO Report