BALANCE SCORE CARD ON TELECOMM SECTOR

BY: Deepshikha Mewati Hemant Guhe Sandeep Kuma Siddha a!sinh Rana Tusha "e#de

$NDERSTAND%NG BALANCE SCORE CARD

T ans&ates an ' #ani(ati'n)s missi'n * st ate#+ ,,set '- pe -' man.e measu es that p '/ides the - amew' k -' imp&ementin# its st ate#+ "'.uses 'n "inana.ia& * N'n0-inan.ia& pe -' man.e t' e/a&uate sh' t un * &'n# un pe -' man.e Measu es an ' #ani(ati'n)s pe -' man.e - 'm 1 pe spe.ti/e 2-inan.ia&2 .ust'me 2inte na& 3usiness p '.ess ,,&ea nin# * # 'wth

The Balanced Scorecard

4 O5-' d $ni/e sit+ 6 ess 7889, A&& i#hts ese /ed,

INTRODUCTION
The Indian Telecommunications network with 110.01 million connections is the fifth largest in the world and the second largest among the emerging economies of Asia. It is the fastest growing market in the world

Estimated contribution of nearly 3 to India!s "#$. According to the Telecom %egulatory Authority of India &T%AI'( the total number of tele)hone connections &mobile as well as fi*ed' had touched 3+, million as of #ecember -00+( taking the telecom )enetration to o.er 33 )er cent. /argest in the world and the second largest among the emerging economies of Asia.

The Indian telecom industry has been growing ra)idly at a 0A"% of 10.23 )er cent from -003 to -00+. Telecom sector contributed 3.1 )er cent to India!s gross domestic )roduct in for the year -00+ and is e*)ected to contribute ,.1 )er cent by -010.
The &"S3' and 0ode #i.ision 3ulti)le Access &0#3A'. There are )rimarily 4 "S3 and , 0#3A o)erators )ro.iding mobile ser.ices in 14 telecom

Products offered by the telecomm sector

S'me '- the p 'du.ts whi.h a e 3ein# '--e ed :

6 epaid 6'stpaid :G ph'ne Ma#i. B'5 handsets ;' &d Ca&&in# Ca ds Gu&- Ca&&in# Ca ds H'me Ca&&in# .a ds Re.ha #e h'me .a&&in# .a ds 'n&ine p.' Data Ca d Business S'&uti'n

"%NANC%AL 6ERS6ECT%<E
GD6 # 'wth ate 0 A/e a#ed a 'und =,> ? - 'm 78870 7889 Risin# Te&e0densit+ @ Ta #et '- 1A? 3+ 78B8 G 'win# pe .apita in.'meCdisp'sa3&e %n.'me "a&&in# Handset 6 i.es M'de ate in-&ati'n &e/e&s whi.h we e p e/a&ent du in# the past = +ea s @ a 'und A0D?,,, i#ht n'w its a&m'st ni&,

Market share of major players

Name of company Bharti Airtel Total no of subscribers % Market

2808277

32.57

Vodafone-Essar
BSNL IDEA Aircel Relia ce !"## %&NL B'L All I (ia

284809
2,503,169 1504186 1,001,363 $ 92097 91027 10848215

2!"8#
16.19 14.92 6.41 3.86 1.45 0.75 100

Reliance figures are based on notional subscriber base and do not include incremental increases and expansion in new markets

%nte na& pe spe.ti/e

"'.uses 'n inte na& 'pe ati'ns that . eate /a&ue -' -' .ust'me s the e 3+ in. easin# sha eh'&de s /a&ue C'0 e&atin# the 'pe ati'n with st ate#+2 p 'du.t ' .'st di--e entiati'n Di--e entiati'n in te ms '- Eua&it+,,su.h as si#na& st en#thF .a&& d 'pF 'amin#F .a&& e!e.ti'n ,, Resp'nse time at the .ust'me .a e 2

#ene atin# e/enues - 'n n'n /'i.e se /i.es su.h as G6RSFEd#e te.hn'&'#+F

 %dea C'st &eade ship2hi#h esp'nse time ,, <'da-'ne 3&end '- 3'th2 "'.usin# 'n &'we .a&& ta i--s,,the e 3+ in. easin#

AMO$ * AR6$ Stats

Minutes of Usa e per Month Mobile !er"ices
+SA
838

I (ia !hi a

461

303

Despite a lo$ teledensity of appro%imately &' percent, India has the second hi hest minutes of usa e per month. This offers hu e ro$th opportunity to telecom companies.

R)**ia

88

#RPU * in India Mobile !er"ices

10 8 AR'+ -+SD .er #" th/ 6 4 2 0 , 1 2006 ,2 2006 ,3 2006 , 4 2006 ,1 2007 0S% !D%A

The declinin #RPU implies that India Inc. is tappin a lar e market at the bottom of the pyramid by reducin tariffs; thereby, enhancin affordability.

GRO$6 =

B8

LEARN%NG AND GRO;TH 6RES6ECT%<E

OBJECTIVESMEASURES INITATIVES
Align employee and Organization goals Employee-satisfaction rating Employee participation and suggestions program to build teamwork

Empower workforce

% of line workers Have empowered to supervisors act manage processes as coaches rather decision Develop process % of employee than Employee skill trained in process makers training Enhance information system capabilities and uality % of management manufacturing processes with real-time feedback programs !mprove online and offline data gathering

 C'ntinu's&+ in. easin# se /i.es2 3 in#in# new ta i--s 2,&aun.hin# ':G se /i.es Chan#e in Emp&'+ee Tu n'/e Rati' due t' new Te&e.'m p&a+e s Emp&'+ee emp'we ment Emp&'+ee Satis-a.ti'n Emp&'+ee T ainin# '- new se /i.es '--e ed 3+ the .'mpan+

"hanging Demogr!!!!aphics
D e m a n d fo r ( # ! & ) ro a d b a n d se r"i ce s # m o n *o u th +, % Urban Population Rapid Urbani-ation Risin Income le"el

!ource: Mckinsey Report

#echnology
CDM# #lready there are bi players in this se ment Reliance , Tata ./ (alue added ser"ices potential still to be tapped fully +//./ /!M Currently commands 01% of mobile subscribers in India

C$STOMER 6ERS6ECT%<E
T' satis-+ .ust'me s t' #ene ate m' e e/enue G'a&::
1 6 '/ide Eua&it+ .ust'me se /i.eGhand&in# Eue iesH 1 Time&+ in-' mati'nGa3'ut ta i--sH 1 G''d Netw' k

Measu es::

1 "eed 3a.kGa3'ut 3i&&in# se /i.es * Eue ies hand&edH 0 ;i&& &ead in in. eased Ma ket sha e