lecture kyrre riksen - bi norwegian school of management 28.10.2013
DESCRIPTION
One hour lecture given to a master class covering sectorial innovation systems and business model innovation. Title: "Breaking down the telco boundaries through frontline iterations." The lecture attempts to argue the importance of focusing on getting your learning model right before introducing a new business model, and then supported by real life examples. For example how to launch and scale financial services on top of core telco infrastructure and how to push incremental innovations in sales & distribution across markets despite different local factors. It also highlights the importance of looking beyond your own sector for innovation, and how you can harness your presence in diverse markets and cultures for scaling more robust business models over time. The lecture also refers to the skateboard movement for understanding how we could disrupt industries more effectively with an extreme sports athlete approach. Risky business or unproven initiatives will undoubtedly benefit if you have a personal passion for learning and getting beaten until you get it right. BI Norwegian School of Management, Nydalen, Oslo. 28.10.2013TRANSCRIPT
“Breaking down the telco boundaries through frontline itera6ons”
Lecture by Kyrre Riksen Oslo, 28 October 2013
DEDICATED TO STRANGE
ENCOUNTERS
• Provide real life examples and personal reflec6ons associated with my work in a telco
• Inspire students to leverage opera6ons and frontline ac6ons as their primary drivers for learning at future employers
• NOT to provide any company view or desktop research
LECTURE OBJECTIVES
I HAVE A FEW TRICKS AND BAILS IN MY BAG COLLECTED FROM 3 MAIN ARENAS
MULTISECTOR BUSINESS
THE SKATEBOARD MOVEMENT
TELCO WITH MULTISECTOR AMBITIONS
“YOU WILL EITHER SINK OR SWIM IN YOUR OPERATIONAL JOBS, AND EACH MONTH FOR TWO YEARS YOU WILL GO TO A NEW BUSINESS LOCATION FOR YOUR EXAMS AND MEET BUSINESS LEADERS COVERING THE FUNDEMENTALS OF OPERATING SHORT-‐, MEDIUM-‐ AND LONG TERM CYCLE BUSINESSES”
NORTH AMERICA, FINANCIAL MANAGEMENT PROGRAM, 2002-‐2004
“Eliminate boundaries within an organiza@on or a team to create universal ownership of the organiza@on’s overall mission. The concept is to create an open, sharing climate that seeks to harness the combined strength of the business.” -‐Jack Welch
THE CONCEPT OF BOUNDARYLESSNESS
BOUNDARYLESS BEHAVIOR SPEED
STRETCH
I NEVER KNEW MY PAINFUL LESSONS WITH GE´S FINANCIAL SERVICES ARM WERE GOING TO HAVE SUCH A BIG AND POSITIVE SPILLOVER EFFECT ON MY WORK IN A TELCO ENVIRONMENT LATER
CLOSING DOWN ONE OF GE WATER´S VENTURES BELIEVED TO BE THE NEXT GROWTH ENGINE CHANGED MY VIEW ON ACQUISITIONS AND THE UGLY MESS WE CREATE UNINTENTIONALLY
GOVERNANCE & ACCOUNTABILITY
SECT
OR A
SECT
OR B
SECT
OR C
SECT
OR D
LANGUAGE/LEARNING
RESOURCE POOLING
GE DOESN´T HAVE TO START FROM SCRATCH WHEN ENTERING A NEW BUSINESS AREA AS IT IS ECONOMIZING ON THE SAME OPERATING PLATFORM
CORE
NEW
BUSINESS
?
?
?
ONE COMMON CROSS SECTOR PHILOSOPHY
A TYPICAL CORE BUSINESS ENTERING A NEW BUSINESS AND
DUPLICATING EFFORTS
✔
✔
✔
VS
WHEN YOU GO TO A SKATEPARK LET´S SAY IN MALAYSIA, YOU WILL MEET INDIVIDUALS WITH THE EXACT SAME PASSIONS, SAME TERMINOLOGIES AND SAME FEARLESS MISSION TO DEVELOP THE SAME CRAFT TO PERFECTION THROUGH TRIALS AND REPETITIONS ….YET WITH NO GLOBAL INSTITUTION TELLING WHAT TO DO
SOME TELCO CHALLENGES • DECLINING VOICE REVENUES • PROFITABILITY PRESSURE WITH RISING ACQUISITION COSTS AND DECLINING PRICES
• HIGHLY REGULATED • INTENSE COMPETITION AND CONSOLIDATION
12
INTERNET
13
WE MUST RETHINK VALUE
2 BASIC METHODS AND 6 MAIN INITIATIVES
1. IMPROVE SALES OPERATIONS WITHIN CORE BUSINESS
2. IMPLEMENT NEW
BUSINESSES
LOCAL COST EFFICIENCY PROGRAMS RESTRUCTURE PAKISTAN DISTRIBUTION LEAD RETAIL FORUM ASIA & EUROPE AND STANDARDIZE RETAIL OPERATIONS WITH THE LOCAL SALES DIRECTORS CO-‐FOUNDED FINANCIAL SERVICES 3 YRS CO-‐FOUNDED VALUECODES FOR RETAILERS DEPLOYED INSURANCE OPERATIONS + MANY MANY TERMINATIONS THAT DID NOT SATISFY MILESTONE CRITERIA
1
2
3
4
5
6
THE EFFORTS OF PROVING THE IMPOSSIBLE IS POSSIBLE CAN BE PUT IN A SYSTEM
ACTION
NEW EVIDENCE
OR LEARNING
TRIGGER OR
FAILURE
IT IS POSSIBLE TO INITIATE FINANCIAL SERVICES AS A NEW BUSINESS AREA BY USING THE CORE
INFRASTRUCTURE IN ONE COUNTRY AS THE TESTING GROUND FOR THE NEXT COUNTRY
FINANCIAL SERVICES ENTRY
IT IS POSSIBLE TO ACCELLERATE MARKET ENTRY BY KNOCKING CUSTOMER DOORS FROM DAY 1 AND LAUNCH A NEW VENTURE IN 3 MONTHS WITH NO INVESTMENTS IN TECHNOLOGY, PRODUCT
DEVELOPMENT OR COMPLEX OVERHEAD
ENTER THE COUPON MARKET BY LAUNCHING VALUECODES
IT IS POSSIBLE TO MAKE COST CENTER OWNERS IN THE SALES ORGANIZATION
COMMIT TO PAINFUL COST SAVING INITIATIVES THROUGH DEEP
ENGAGEMENT IN THE FRONTLINE AND EXTERNAL
BENCHMARKS
COST EFFICIENCY PROGRAMS AND DISTRIBUTION RESTRUCTURING INITIATIVES
IT IS POSSIBLE FOR RETAIL ORGANIZATIONS IN 11 COUNTRIES TO SPEAK THE SAME LANGUAGE USING 10 MANDATORY OPERATION AREAS AS THE BASIS FOR ACHIEVING EXCELLENCE AND INDUSTRIALISATION
LEAD RETAIL FORUM ASIA AND EUROPE, AND LOCAL IMPLEMENTATIONS
IT IS POSSIBLE TO ENTER A NEW
INDUSTRY FAST USING THE ACQUIRED
COMPANY´S DOMAIN EXPERTISE AS THE BASIS
FOR LOCAL DEPLOYMENT
INSURANCE DEPLOYMENT
THE SECRET SAUCE WOULD BE TAKING THE BEST FROM EACH
HIGH TOLERANCE FOR FAILURES COUPLED WITH DEEP INDUSTRY KNOW-‐HOW STRONG ACCOUNTABILITY
AND CROSS BUSINESS LEARNING LOOPS TO AVOID SAME FAILURES
PERSONAL PASSION FOR PUSHING THE BOUNDARIES AND TAKING EXTREME RISKS EVERY DAY, GLOBAL TRENDSETTERS BUT STILL LOCAL AND RESPECT FOR THE INDIVIDUAL
BUSINESS MODELS WILL ALWAYS CHANGE AND HENCE YOUR LEARNING MODEL IS YOUR BEST WEAPON
ACTION
NEW EVIDENCE
OR LEARNING
TRIGGER OR
FAILURE