What will happen when the nature of product bundles fundamentally changes?
Commercial Telco products and services are mainly made up by identifying the physical components of the network, code and put prices against them, hence why some Telcoes have 20-50,000 products and tariff codes and why it takes 6 engineers 200 man days to get a new product launched. And there are not that many new products being launched (not price plans).
Products and services bundling, are in principle made up the same way.
As networks are being IP enabled and products are delivered as software, we see bundling happen in software as well i.e. on SKYPE we have Contacts, IM, VOIP and Conference Call. While Skype’s go to market strategy primarily was based on the consumer market. The above mentioned functions plus many more are now being introduced the business market – Unified Communications.
Are we prepared?
The book value of existing IT solutions cannot be written off and replaced “just like that”, nor does the existing have the needed functions and processes in place to support the new, hence the question.
How do we drive out the current cost structure associated with new product definitions, designs, implementations, testing and launch?
How do we ensure product and tariff rationalisation with the existing as a base?
How do we ensure best possible Customer Experience which is driven by new parameters other than network quality (which impact but do not drive).
How do we implement new pricing structures and ensure margin control, when additional sale do have incremental cost associated with it (different to and extra phone call and on existing network)?