Imagine you’re building a “Telco2.0” (ahem) with some kind of Internet-compatible business model. This means you’re involved in one or more of dumb pipe deployment, making money from APIs to your business and IT platform, and some select apps which you do particularly well.
Now, what metrics does the CEO want on his dashboard to know he’s getting nearer to the “IP-compatible” business model? Hint: ARPU, CPGA, and churn are lagging indicators tied to the old business model. Business performance matters, but like flying through a storm there’s a period during which a safe landing is more important than fuel economy or punctuality.
What metrics do you use to measure your “permission” assets from customers to access their attention?
How do you measure your product portfolio’s “stupid network compatibility”?
How do you quantify your success in delivering compelling, sensuous presence experiences?
Rather than me give too much leading thought, it’s over to you. What metrics should telcos be using to track whether they’re getting closer to the goal of an IP-compatible business model?
Feel free to tailor your answers into specific segments like “wireless-only players”, etc.
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ARPUR: a business performance metric for presence in communication services from purple motes
The largest share of value in communications services is the value of presence. How can communication services providers measure their performance in capturing this value?
Average Revenue Per User's Relation (ARPUR) is a practical measure of presence ...
[Read more]
»
ARPUR: a business performance metric for presence in communication services from purple motes
The largest share of value in communications services is the value of presence. How can communication services providers measure their performance in capturing this value?
Average Revenue Per User's Relation (ARPUR) is a practical measure of presence ...
[Read more]
Best metric: voice revenues as % of total (with a presumption that the lower the better)
Best indicator for Vodafone: statement that it recognises the strategic implications of fixed-mobile convergence and is going to buy BT.
Posted by: at March 9, 2006 02:14 PMHow about firstly recognising each product areas migration path to IP based infrastructures, and setting objectives by product. Its only then that you will have a clear view. Overall "minutes" dont mean a thing, if you aint got that swing. So, who in charge of mapping overall progress to IP?
Posted by: at March 9, 2006 06:41 PMHmmm. Voice revenues as a % of the total isn't a great metric. That's basically saying for a carrier that price competition on voice telephony is a good thing, as long as pricing on data falls more slowly!
I'd say one metric might be "managed traffic as a % of total traffic" - where "managed traffic" could either be "to a walled garden", "to an inhouse application eg legacy circuit-switched voice" OR (importantly) "managed smart-pipe traffic"
Posted by: at March 9, 2006 07:40 PMI'm not sure my answer quite fits your question but I would say a good step is in measuring the amount of co-creation possibilities you have with your customers. In other words how much of a power shift to the consumer are you enabling? Can consumers build services themselves or even better still build for other consumers? How much can consumers alter their experience personally and share that experience in their social group etc. In short I would be measuring how much the telco has shifted from bastion of command and control to one that lets customers build value, in pretty much the same way that customer reviews have built the value of Amazon.com
Posted by: at March 10, 2006 12:39 AMI tried to set up a trackback to this entry from purplemotes last night. See this post on the metric ARPUR.
http://www.purplemotes.net/2006/03/09/arpur-a-business-performance-metric-for-presence-in-communication-services/">metric ARPUR.
(more grief: why is this blog stripping out my HTML-coded link!)
Posted by: at March 10, 2006 03:29 PMThe telcos are at an IP compatible business model now - IP runs over their networks, they host VoIP, etc. - only problem is, it's poison to their heavy monthly note unless they can tax traffic more lucratively. Think of it as pavement, like a road. Ma Bell is reassembling itself (see: AT&T/BellSouth), the business model here is end-to-end transport, because it can't de-peer, like Level3/Cogent. The telcos current fight is own the road, battle to legislate tolls, tap consumers, and pray businesses trust them more than cable companies. The fear of telcos is this: There may be no future in P&L driven private ownership. They can't shut down - they can't over tax. They can no longer say "Go to the AT&T store to buy a telephone... if you buy something else, it may not work..." Pay no attention to the man behind the curtain...
Posted by: at March 12, 2006 04:32 AMHow about something that measures API-usage by customers related to traffic?
Customers being both end-users and serviceproviders: when fat IP-pipes can support big uploads P2P and homebased servers will explode in volume, diminishing the distinction between consumers and creators.
API-usage high means that your customers love to use your platform to create more value and applications at the edge as they like it.
Low API-usage: they don't like it.
And let's not forget it: even in dumb pipes there is a lot of things one must manage. What could be better than to open it up to the users?
As a metric for presence value, I suggest Average Revenue Per User's Relation. See http://purplemotes.net/2006/03/09/arpur-a-business-performance-metric-for-presence-in-communication-services/
Posted by: at March 14, 2006 05:57 PM