What is "Value"?

This word is used in meetings and discussions very often, without being understood effectively. In fact, in today’s jargon of fads and facts, this term is more often than not abused rather than used. What does this term signify in today’s context? Simply stated, the definition of "Value" can be understood by a simple mathematical equation, which is as
follows:

The value of "Value" becomes larger if the "Quality of the Product " and "the associated service with it" goes up. The value of "Value" also goes up if the "Price" is brought down and the "time taken" in delivering this service is as minimal as possible. Anybody who is dealing with the combined impact of all these four factors is part of something, which forms the "value chain".

Where is the "Operator"?

If we keep the above equation, and the fact that we are dealing with all the services such as cellular, basic, paging, ISP and the VSAT related ones, in mind, today’s operator is dealing with all the above issues in one way or the other.

Let us examine each and every element of the equation in a logical fashion:

• Quality: The advent of technology and the buzzword "Convergence" has posed an immense set of challenges to the operators in defining the core product offering. Hence, till the time that these product definitions are clear in the operators’ as well as the customers’ mind, defining a particular quality standard itself becomes challenging.

Operators are today busy in managing technology and the related regulation (inward approach).

Ultimately, it is the customer who will decide the configuration of the product offerings as they would desire it to be. Operators have to hence create listening posts in their systems to comprehend, on a timely basis, as to what is being asked for or desired. This should be done by deploying and training frontline employees/channels, and of course, in close looping their customer feedback system.

• Service: This is a challenge, which we are all aware of in today’s competitive environment. With multiple product offerings and technology, staff need to be trained, empowered and encouraged in the way that customers want the operators to behave – even if it is the e-way, through the net or through a personal contact program.

Operators are today busy offering Plain Vanilla services to all. Very little effort is put into training and developing their workforce for aligning them to the need of the day.

The approach needs to be reviewed at all levels across the organizations of operators. Segmented service plans are the order of the day—a special one for the important one. Operators can then contribute, in true sense and spirit, some real value to the value chain.

• Price: How many times have we heard "cheapest is the best". To keep bringing down the prices, we need to focus inwards. The value equation decides the prices and not the operators. The standard rule is "price comes down only with volume". Bulk rate discounts in the price plan are classic examples.

Operators today demand volumes from customers rather than innovating at their end!

There is nothing better than an innovation a day in a service organization…that too on price. With true convergence happening, bundling, in true sense, not the "*" marked price plans are going to appeal to consumers. It has already been seen that the lower the price, the better is the value in the era of convergence and multi-product customer offerings.

• Time: How can we forget that in today’s world, everything needs to be done as of "yesterday". Unfortunately, the growing organizations are creating their own bureaucratic setup. This elongates the time taken in providing effective and good quality service. The time to market, time to react, time to re-engineer and, of course, re-train, are the classic ones which need attention.

Operators are still not practicing time consciousness and are also are not investing in systems and processes.

Empowerment of people can do wonders in terms of speed of service. Nothing delights a customer more than a quick decision and prompt service. Empowerment, coupled with investments in system upgrades and constant modernization and rethink all around make significant impact on the time taken. Let us not forget that in this very country, we have moved up from 48-hours of activation time to instant activation.

The operators challenges are enormous and are increasing everyday. If we have to deliver "value", we need to innovate continuously, in terms of systems, processes, training, etc.

Ajay Pandey, COO Aircell Digilink, Punjab and Haryana