Orange Sa · EURONEXT:ORA
Orange Sa — France Telecom — Investor Day (June 2004)
24 slides from Orange Sa's investor day presentation, Jun 10, 2004
Slide 1: Building the integrated broadband communication services Group
France Telecom investor day, June 10th 2004: Building the integrated broadband communication services Group 1
Slide 2: Network & IT
Network & IT 2
Slide 3: Why a new Network, Carriers & IT Division?
Why a new Network, Carriers & IT Division? ! Recent and future changes in technology – Predominance of IP – Increasingly tight integration of Networks and IT ! Network and IT skills becoming more and more similar Clear opportunities to further develop synergies between Network & IT 3
Slide 4: Networks, Carriers & IT Division established
Networks, Carriers & IT Division established Responsibilities ! Defining development policies and managing Networks, regardless of technologies ! Developing and maintaining all Group IT ! Selling services to other Carriers Objectives ! Enhance customer experience ! Deliver Network and IT additional
Slide 5: Network & IT transformation: 6 TOP chantiers
Network & IT transformation: 6 "TOP chantiers" Enhance Deliver customer additional “One FT” experience savings 1. IT for Global business processes ++ ++ ++ 2. Customer services platforms +++ + +++ 3. IT integration for Home +++ + 4. IT Infrastructure rationalization +++ + 5. Network and field operat
Slide 6: N°1: IT for global business processes (1/4)
N°1: IT for global business processes (1/4) Home Personal Enterprise ! ADSL service ! Web and Voice Portal ! Time-to-bill flow-through self-services contacts • 15 days Dec. 2003 • 92 % orders fully • 55 % customer contacts • 13 days today automated in April fully automated as of 2004 vs. 86 % in Nov
Slide 7: N°1: IT for global business processes (2/4)
N°1: IT for global business processes (2/4) IT Expenses Bn euros (CAPEX (CAPEX ++ OPEX) OPEX) ≅ 3.1 -0.6 -0.6 1.3 1.15 Production 1.8 IT applications 1.2 1.35 architecture, design & development 2002 2003 2004 2003 savings commitment delivered (Eur 600 M) 2004: further savings in production, reinvest
Slide 8: N°1: IT for global business processes (3/4)
N°1: IT for global business processes (3/4) Peoplesoft-based CRM footprint in June 2004 Peoplesoft-based Rolled Out In process Under study Corporate Customer Sales Mobile Customer Support Fixed Customer Support Home Customer Sales Orange TP vis UNI2 No Peoplesoft-based CRM: on track to meet commitme
Slide 9: N°1: IT for global business processes (4/4)
N°1: IT for global business processes (4/4) Data & Content Billing Billing:: current situation Orange Denmark Rolled Out Orange Netherlands In process Under study - Orange UK (1) Mobistar - Home UK - TP - Centertel - Orange France (1) Orange Slovensko - Home France (1) Orange Romania Orange Switzerl
Slide 10: N°2: Customer services platforms (1/3)
N°2: Customer services platforms (1/3) ! Unified VPN offers for Fixed and Mobile in France (Q2 2004) ! Group Single Sign-On: interoperability Home – Personal (Q3 2004) ! One single Multimedia Data Service Platform for Orange Group (Q1 2005) ! Shared use of the Group Mail System (Q1 2005) Building on
Slide 11: N°2: Customer services platforms (2/3)
N°2: Customer services platforms (2/3) • IN-based services • E-Commerce • Messaging platforms ? • VoIP & video-telephony platforms • Personal information storage • Infotainment platforms From unstructured service platform developments to Group-wide categorisation 11
Slide 12: N°2: Customer services platforms (3/3)
N°2: Customer services platforms (3/3) New initiatives ! Quick wins on gaming platform for Fixed and Mobile ! MMS interconnect ! Extend parts of Mobile multimedia platform to Fixed ! Fixed-Wanadoo video-telephony interconnect at launch ! Define and reuse common enablers: Service provider interconnec
Slide 13: N°3: IT integration for Home
N°3: IT integration for Home ! Single CRM kernel supporting sales, contact management and order management for ADSL multi- service customers (TV, Video-telephony, VoIP, Internet) ! Seamless support for multi-play service customers ! Under study: single bill for PSTN and ADSL customers (upon customer
Slide 14: N°4: IT Infrastructure rationalization (1/3)
N°4: IT Infrastructure rationalization (1/3) ! ! January 2003: –– 100 100 Production Production Data Data Centres Centres –– 60 60 Operations Operations Teams Teams ! ! 2003 year end forecast –– 36 36 Production Production Data Data Centres Centres –– 27 27 Operations Operations Teams Teams ! ! 2003
Slide 15: N°4: IT Infrastructure rationalization (2/3)
N°4: IT Infrastructure rationalization (2/3) 2 DC UK 2 DC 10 DC Western Europe Eastern Europe Extension of rationalization to Europe: 14 Data Centres planned by end 2006 15
Slide 16: N°4: IT Infrastructure rationalization (3/3)
N°4: IT Infrastructure rationalization (3/3) ! Standardized desktops for all FT SA employees • 2004 year end target: 100,000 standardized desktops in France (down from 115,000) • Desktop unit price: savings of 20 % per year over 2004-2005 ! Servers’ rationalization: on-demand computing • first on-de
Slide 17: N° 5: Network and field operations (1/2)
N° 5: Network and field operations (1/2) Objectives ! Network Labour Opex reduction ! QoS and reactivity improvement Main levers ! Network Operation Centers (NOCs) optimization – NOC consolidation – Across geographies and entities – Common processes and tools for supervision ! Implementation of “Lea
Slide 18: N° 5: Network and field operations (2/2)
N° 5: Network and field operations (2/2) 2003 achievements ! Transformation of field activities in Fixed Network Units - New processes • headcount ≈ 9,800 end 2002 - New organization • 13 % headcount reduction in 2003 - Lean management ! Decrease of the total number of Switching/Traffic Supervision
Slide 19: N° 6: Network capacity & traffic spend (1/2)
N° 6: Network capacity & traffic spend (1/2) Objectives ! Develop and implement detailed improvement measures to reduce inter-operator spend for FT Group as a whole 2003 achievements ! International traffic in-sourcing 70% 60% 50% 40% %%of ofAffiliates’ Affiliates’voice voicetraffic trafficcarried c
Slide 20: N° 6: Network capacity & traffic spend (2/2)
N° 6: Network capacity & traffic spend (2/2) Optimization of resource Purchasing power / usage - capacity Sourcing strategy " Group-wide Common Network " Deployment of Top sourcing Planning and Building methodology and experience to " Network Planning Groups to be network and traffic procurement cre
Slide 21: Top savings from the 6 Network & IT TOP chantiers
Top savings from the 6 Network & IT "TOP chantiers" Cost Base Full year in 2003 savings Chantiers n° 1 and 2 1.2 o/w OPEX 0.8 > 5% o/w CAPEX 0.4 > 10% Chantier n°4 1.3 o/w OPEX 0.6 ~ 20% o/w CAPEX 0.7 Chantier n°5 (OPEX) 1.7 ~ 10% Chantier n°6 (OPEX) 7.0 > 1% Total 6 TOP Chantiers IT&N 11.2 > 3.9% R
Slide 22: One Orange within One FT
One Orange within One FT 2003 2004 2004 / 2005 CRM [[ ]] CRM CRM CRM CRM Content Content Content Content Content [[ ]] Billing Billing Billing Billing Billing Core Core Core Core Core Core [[[]]] Billing Billing [[[]]] Billing Billing [[[]]] Billing Billing Core Core Core Core Core Core [[ ]] OSS OS
Slide 23: Common IT and Network Infrastructure
Common IT and Network Infrastructure ! Centralised Mobile Data Services Platform – Centralised multimedia service delivery platform – Consistent roll out of global multimedia services ! Standardised Content Billing solution – Homogenous and flexible charging architecture for data, messaging and cont
Slide 24: Common IT and Network Infrastructure
Common IT and Network Infrastructure Centralised Mobile Data Services Platform ! Faster time-to-market by creating services only once ! Improved customer experience based on needs-based portal design ! Greater efficiency due to removal of duplication ! Developing 3rd party relationships through cons