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Leveraging Vas with Franchise Business Model

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Leveraging VAS with Franchise Business Model
Sonu Jain ,Vivek Rao
Alcatel-Lucent – Plot 406, Udyog Vihar Phase-3, Gurgaon, India
Sonu.jain@alcatel-lucent.com , vivek.rao@alcatel-lucent.com

Introduction

Telecommunications service providers expect business model transformation to be the primary source of value over the next coming years. It is a forgone conclusion that value collaboration with external partners will be critical as they structure these new business models.

In this changing landscape, the winners will be those companies that understand consumers' needs and focuses on usability, actually giving control back to the users. To provide such a consumer-centric experience both technology and content would be equally important. Revenues from content-related services would be generated either in the form of subscription-based revenue or through advertising. Even the advertisement needs to be relevant to the customer.

Motivation

This whitepaper attempts to bring forward a new business model to cater to such changing scenario. The central theme is to push the customer interaction and engagement as close to the customer as possible so that it can become more customers centric and relevant.

[pic]

Figure 1

Figure 1 shows best way to address this gap using franchises. A transformation from the existing SILO architecture towards a layered architecture which is a mix of franchisee model.

While preparing this new model we have extensively researched and borrowed ideas and experiences from other industries.

o Fast food chains – How the “franchise model” helps large scale fast-food chains (like McDonalds’, Dominos) to easily scale-up the operations and also maintain differentiations over a heterogeneous mix of a large customer base.

o Power generation companies – Traditional power generation companies were vertically integrated only

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