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Assessment of Vodafone UK from an IT perspective May 2009.

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Presentation on theme: "Assessment of Vodafone UK from an IT perspective May 2009."— Presentation transcript:

1 Assessment of Vodafone UK from an IT perspective May 2009

2 2 Current IT strategies revolve around outsourcing non-core areas like Networks M&O and Applications D&M 1 WIP “Vodafone is finding new ways to deliver greater cost efficiencies across the business. We are exploring the possibility of outsourcing other non-core activities so that we can focus on our customers.”….. Arun Sarin, former Chief Executive, Vodafone “For 2008, Vodafone UK will concentrate on simplifying and standardising its IT architecture, processes and systems, while also attempting to improve the return on investment of existing environments.”…. CIO Business Technology Leadership “Key goals for 2008 include - continuing to sharpen up our project management methodologies, maximising our partner ecosystem, becoming even more closely aligned with the strategic goals of the business and further enhancing our measurement techniques so we can judge our success clearly and objectively through transparent key performance indicators.”…… Phil Jordan, Vodafone UK’s head of IT architecture and strategy “To get the most out of our seven-year outsourcing deal with EDS, we will be putting more resources into the development of increasingly sophisticated CRM technology.”….. Phil Jordan, Vodafone UK’s head of IT architecture and strategy “The (network outsourcing) deal marks a symbolic shift in the strategies of wireless operators. Just a decade ago, running the networks was the core business of operators such as Vodafone. These days operators are more focused on marketing products and services,”…….John Delaney, Research Director, IDC Europe Poor Financial Performance and the Current Economic Downturn Current IT Strategy is Focused on Outsourcing Non-Core Areas Operational Efficiencies, Cost Benefits and Better Service-Delivery Focus on core service- delivery for better customer satisfaction Reduction in IT expenditure Network-sharing and job cuts for lower operating costs Partnering with specialist providers of Networks Operations and Maintenance services Outsourcing Applications Development and Maintenance services to IT vendors Notes:Refer to notes below Source:Vodafone Corporate Information, Press Releases

3 3 Multi-year contracts being signed with specialist providers of operations and maintenance services of network infrastructure….. In March 2009, Vodafone UK and Ericsson entered into a seven-year agreement to provide maintenance and operational support to the 2G and 3G radio access networks of Vodafone UK Through the contract, Vodafone UK aims at benefiting from economies of scale, offered by Ericsson; apart from reducing operational costs, the agreement is expected to lead to better network performance and end-user experience The agreement will lead to the transfer of about 350 Vodafone employees to Ericsson when the project gets underway in May 2009 VendorContract Details WIP “We see this as a strategic long-term relationship, offering real operational and financial benefits allowing us, over time, to reinvest savings in delivering new products and services for customers. Ericsson is the specialist in this area and will be critical in helping maintain our high quality network - which customers expect from Vodafone.”……..Jeni Mundy, Chief Technology Officer, Vodafone UK Source:Vodafone Corporate Information,, CBROnline Benefits for Vodafone UKDetails Reduction in operational costs in a tough, recessionary scenario Dealing with the current economic downturn, UK-based telecom companies are outsourcing the maintenance and operations of their networks to specialist providers of these services —In March 2009, Sprint Nextel outsourced the function to Ericsson in a US$2 billion deal; on the same date, Orange awarded a five-year network operations deal to Nokia Siemens Benefiting from economies of scale and best practice tools and processes “This sort of activity benefits greatly from scale - it's far cheaper to have a slightly larger team of maintenance engineers operating on a national basis and looking after two or three networks than it is to dedicate a team for each network. This is all about economies of scale in terms of people and inventory. But it can also make a lot of sense to have the work done by a specialist organisation like Ericsson's Managed Services which then applies best practise tools and processes to the effort.”…… Telecom TV (18 th March 2009) Offering better network performance and end-user experience to its UK clientele While the assurance of best-in-class specialist services by Ericsson allows Vodafone UK to focus on its core areas of marketing products and services to customers, it also ensures better network performance and end-user experience, which is a key determinant of a wireless operator’s success in the long-term

4 4 …while application development and maintenance contracts are being signed to further save costs and improve productivities….. VendorContract Details WIP In late 2006, in its bid to significantly reduce costs, Vodafone UK selected EDS and IBM to manage its application D&M services to separate groupings of operating units within the Vodafone Group The deal aimed at reducing IT costs by approx. £150 million annually through improved productivity, consolidation of data centers and centralizing logistics systems and supplier rationalization Under the proposals, a majority of Vodafone’s impacted staff had been transferred to EDS and IBM, while the remainder was retained by Vodafone —As of Oct 2007, Vodafone UK had transferred 438 people to EDS under its seven-year dual-source deal 1 “This initiative is a good example of how Vodafone is finding new ways to deliver greater cost efficiencies across the business. We are exploring the possibility of outsourcing other non-core activities so that we can focus on our customers.”….. Arun Sarin, former Chief Executive, Vodafone Notes:1: According to ‘Outsourcing Project of the Year shortlist’ by for the year 2007 Source:Vodafone Corporate Information,, Mobile news, Business Week Benefits for Vodafone UKDetails Reduction in IT expenditure to improve financial performance “Vodafone has identified the potential to reduce unit costs by 25 to 30 percent within three to five years. Activity levels on application development and maintenance during the last financial year resulted in a spend of around GBP560 million.”…. Vodafone Group Press Release Supplier consolidation and economies of scale “Through the deal, the company (Vodafone UK) began undertaking a consolidation programme to reduce the number of suppliers it works with to exploit economies of scale and cut support fees.”…….CIO Business Technology Leadership Benefiting from best practice processes The Group anticipates that the initiative will result in improvements to the quality of software produced, as well as greater flexibility, leading to the faster roll out of more varied services to customers…”. Vodafone Group Press Release Driving revenues by focusing on the core area of marketing services “The proposed arrangements form part of Vodafone's cost reduction strategy. Against this backdrop, Vodafone continues to stimulate revenue growth through the roll out of new services and attractive tariffs which encourage customers to use their mobile phones more extensively within the home and office.”……Vodafone Group Press Release

5 5 …and various other strategies being implemented to offer value add services and complement business synergies In Feb 2008, Vodafone UK and Neverfail completed a deal to provide disaster recovery and affordable continuous availability solutions for mobile email Using the Neverfail software, Vodafone was able to offer uninterrupted BlackBerry services to its business customers —The software monitors the entire email environment, including the network infrastructure, the server hardware and the operating system For Vodafone’s clients in the UK, the two parties agreed to offer advanced capabilities like continuous availability for mobile devices & communications solutions from Microsoft, RIM, and IBM Lotus Notes VendorContract Details WIP “As market leader in the UK in providing BlackBerry services, it was important to be able to offer robust access to email. By adding Neverfail’s solution into our Managed Service portfolio, we can offer enormous service expertise to protect critical parts of our customers’ IT infrastructure. Neverfail has an enviable reputation for protecting mission-critical systems with its continuous availability solutions and we have selected them as our preferred provider for high availability and disaster recovery for BlackBerry and email implementations.”…..Curt Hopkins, Head of Enterprise Mobility Solutions, Vodafone UK Source:Vodafone Corporate Information, Neverfail Press Release

6 6 Others – working on it right now RWD Technologies and Vodafone UK work on an ongoing basis to enhance the functionality of an eLearning portal, which is used by Vodafone UK's corporate sales team In Oct 2004, RWD developed the eLearning portal to be used by Vodafone UK —The portal offers a completely self-managed learning environment along with details on skills management tools, full access to latest information on new products, services and technologies —Along with employees, managers use the portal to check the progress of employees VendorContract Details WIP "We required a solution that would enable us to organize information for our employees across multiple sites. Rather than buying a generic off-the-shelf solution, we chose RWD because they provided a tailored, industry-specific solution and approach. RWD worked with us very closely in a consultancy role to develop the entire learning portal project around our business processes. Now, using laptops equipped with Vodafone 3G Mobile Connect data cards, the Vodafone sales force in the UK has high-speed, secure access to the online Vodafone Sales Academy - anytime, anywhere.“……Craig Needham, eLearning manager, Vodafone UK Source:Vodafone Corporate Information, Nasscom

7 7 Vodafone Organizational Structure Michel Combes CEO, Europe Region Vittorio Colao Group CEO Nick Read CEO, Asia-Pacific & Middle East Region Morten Lundal CEO, Central Europe & Africa Region Andy Halford CFO Subsidiaries & JVs Group HR Group Business Development Associates & Investments Global Marketing Global Technology UK Italy Germany Spain Netherlands Portugal Ireland Malta Greece Albania France Australia China Egypt Fiji India New Zealand Qatar Group Strategy & Business Improvement Group Legal Group External Affairs As part of an organizational review in Dec 2006, the number of employees in the Global Technology function was reduced by 530 for the year 2007; moreover, the number of contractors working in the function was also reduced Vodafone’s IT structure has been impacted by its focus on outsourcing IT functions related to applications D&M —Between June ‘06 and April ‘08, approx. 85% of the total IT staff in Vodafone’s 12 local operating units were outsourced to EDS and IBM; More than 1,200 employees and 3,500 contractors were transferred to the outsourcing partners As of 2008, Vodafone Global Information Services (GIS) was supporting 66,000 employees in 21 global operating units 1 WIP Notes:1: Vodafone GIS is Vodafone’s global technology division Source:Vodafone Corporate Information

8 8 Key IT Personnel – Vodafone UK – check and add photos NameDesignationContact Details Dean SirovicaManaging Director - Technology Strategy group+44.1635550000 Phil JordanHead of IT Architecture and Strategy, Vodafone UKNot Available Jeni MundyChief Technology Officer, Vodafone Paul WybrowChief Technology Officer, Vodafone UK+44.0163533251 Andy ReevesChief Technology Officer, Vodafone Corporate Ltd+44.1635550000 Ian Ravenscoft 1 Head of IT operations, Vodafone UKNot Available Ian GrayChief Technology Officer, Vodafone Retail Holdings Ltd, UK +44.1295815000 Kevin WestDirector - Information Technology, Vodafone Retail Holdings Ltd, UK +44.1295815000 Darrell StienDirector - Information Systems+44.01635682220 WIP Source:Vodafone Corporate Information, Jigsaw Contacts Database

9 9 Key IT Personnel – Vodafone UK – check and add photos NameDesignationContact Details Al Russell 1 Head - Mobile internet and content services, Vodafone UK Not Available Peter DeadmanHead of Technology Business Improvement, Vodafone UK Not Available Peter WestIT Regional Planner, Vodafone UKNot Available Ed FletcherSenior Manager and IT Architect, Vodafone UKNot Available Richard BennettTechnical Product Architect, Vodafone UKNot Available Martyn TuetonTechnical Specialist (Data), Vodafone UKNot Available WIP Source:Vodafone Corporate Information, Jigsaw Contacts Database

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