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Strategy & Metrics for Telco 2.0

I thought I had better complete the loop on Telco 2.0 metrics by looking at how they need to be used to help develop and appraise strategic decision-making. This is an area we at STL have given a lot of thought to recently in our Telco 2.0 report. These metrics are a critical precursor of the Investment, Operational and Financial KPI’s I alluded to in a previous post because they set the context for the strategy and investment (and subsequently operational and financial) KPI’s that a company develops.

The metrics I am talking about here are those that are used to both help develop AND appraise strategy within telco’s. As such, they look to measure a company relative to its market environment and have a strong external emphasis.

At STL, we have adapted the classic strategy framework of Market Attractiveness vs Competitive position to the Telco 2.0 world and developed a Telco IP Situation and Strategy Analysis Toolâ„¢ which helps companies:

  1. Monitor the market in which they operate - how fast is the market moving to a Telco 2.0 world;
  2. Assess their position within it - how are they doing relative to traditional and new/future competitors, and
  3. Develop a strategy for future success - what is their vision, strategy and roadmap going forward.

The chart below gives a simple explanation of the tool.

http://www.telco2.net/blog/images/Strategy_Tool-thumb.jpgClick to see full image.

If we now look at the framework for our Telco 2.0 metrics we have 5 KPI ‘buckets’ that provide and end-to-end view of Telco metrics:

http://www.telco2.net/blog/images/Metrics_Framework-thumb.jpg Click to see full image.

We are constantly developing this framework and will be discussing this with a number of companies in break-out sessions at the 2006 industry brainstorm. We believe that such an end-to-end framework is extremely valuable to the TMT community - I certainly would have found it so during my time working in strategy in fixed and mobile operators like MCI Europe and Orange. However, feedback and input from our Telco guru readership remains critical - please do post comments or email me directly.

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