What Are Business Operations?

With the slowdown of traditional telecommunications services and the emergence of emerging services, operators have broken down the business barriers between fixed and mobile, and started to operate fixed, mobile, and data networks simultaneously in the horizontal direction, It carries out various links such as network access, basic services, value-added services, and content provision. If we expand further, operators' cross-border attempts in the fields of Internet, finance, and consumer electronics all belong to the scope of full-service operations.

Full business operation definition

Narrow full-service operation refers to an operating model that simultaneously operates mobile, fixed, and data networks and comprehensively develops access services, communications services, value-added services, and content applications. Its core is to carry out fixed mobile convergence (FMC), information and communication technology (ICT) and broadband value-added services based on broadband and IP through effective integration and integration of existing telecommunication services.

A broad-based full-service operation refers to a cross-industry that covers telecommunications, the Internet, multimedia, entertainment, consumer electronics, finance, health and other business areas, comprehensively meets users' life and work needs, and provides communications, content, applications and services. Cross-regional operation model. Its core is based on telecommunications networks and terminals. Through the effective integration of the value chain, the telecommunications business is expanded to other industries, and integrated, convenient and efficient integrated services are developed. ^[1]

Relationship between the two operations

The narrow full-service operation and the broad full-service operation are inclusive and progressive relationships, and they are also gradually evolved and developed relationships. ^[1]

^[1]

Future trends in full-service operations

At present, the basic trend of the global telecommunications industry is probably the so-called full-service operation. Telecommunications operators in the United States and other more advanced countries are moving in this direction.

Full business operations

What is the general business operation that everyone generally talks about? "Communication" mainly includes three aspects: voice, data, and video. These three applications can be said to summarize the range of communications operations and services.

Full service operation voice

From an industry perspective, "voice" is the most familiar to operators, because the development background of operators is closely related to the telephone. Voice is basically the business model of the phone, and whether it is a wireless phone or a wired phone, the business model is roughly the same. In other words, an operator or a telephone company spreads a telephone network. The entire network belongs to this telephone company. All callers need to deal with this operator or telephone company and use its network and services. For the operator, all networks, all users, and all applications on the network are under the control of the operator. This can be said to be the voice operating model commonly used in the industry. As a pure voice, network service operator, this model is the most accustomed, most familiar, and favorite, because this is part of what they do best.

Full-service operational data

Data applications are now widely used all over the world and in China. If one day they cannot access the Internet or communicate with data, it can be said that the entire society will be paralyzed; and for individuals, life will be greatly affected. Because in our daily life, especially at work, data communication has a very high proportion, people rely on it very much. The development background of data communication is completely different from that of voice communication. The earliest data communication started from the computer industry or the IT industry we often talk about, because computers need to transfer data to and from computers. Of course, the use of computers, especially the invention of the Internet and its widespread use, has had a great impact on data communications. As we said today, most of the data communication is based on the Internet-based communication mode. And this Internet business model is completely different from the voice business model. The business model of voice is completely closed. The voice operator provides the network and all services, which is equivalent to controlling all network applications. However, from the invention of the Internet to its subsequent evolution, no operator, country, or department can control it. The Internet is a completely open network. And because almost all of the data applications mentioned above are mainly based on the Internet, data applications are generally not managed by anyone. From the perspective of telephone operations, in terms of data applications, the operator is actually a network operator. In other words, no matter in which country or place (home or company) the Internet is connected, this part of the network connected from the computer is basically done by the operator, we pay a certain monthly fee, Hire a broadband or narrowband from the operator so that we can get online. As for many things done after going online, such as commercial activities conducted through the Internet, even if the transaction funds are very large, it has basically nothing to do with the operator.

Although the data application market is very large, for operators around the world, their share is very small. Most operators have relatively low revenues in applications and advertising. The main revenue is the Internet connection. Therefore, from the perspective of operators, although data communications have occupied a very important position in the communications field, most business opportunities have not been seized well, whether for wired operators or wireless operators. It is not because operators are unwilling to seize it, but because data communications have developed from open systems, from the IT industry, and from the Internet. For operators, the technology and business models of data communications are relatively new. Seizing the opportunity for data communications is far more difficult than the opportunity for voice communications.

Full Service Operation Video

The video originally belonged to radio and television, or television, and it can be said that it has nothing to do with communication. However, with the development of technology and market reasons, radio and television and communication have begun to enter a stage of convergence in video; this is inevitable. For operators, this is also a very good opportunity to enter a new field. How to seize this opportunity, so that operators can find more business opportunities and development methods that are beneficial to themselves in the video field (rather than like data communications, although the business opportunities are large, many opportunities have been taken by people outside ), Is an important challenge.

Full service operation

When communicating, a medium is also needed, that is, a wired communication method or a wireless communication method is used. Providing voice, data, and video services in the wired and wireless fields should be said to be the scope of the so-called communications full-service operation. The background and applications of the three communications applications, namely voice, data, and video development, are very different. For operators, the current business models are also different. Therefore, when we talk about future trends, we need to understand their past and current status.

The core of full business operations is to integrate resources and maximize value creation. Then, in specific implementation, there are two common ways:

Business bundle. Operators use their own advantageous resources, attach one or more other services, and sell them as packages to users. For example, the dominant resource of the telecommunications group is the broadband service, which can be sold in a concentrated way through the package of broadband + fixed phone + mobile phone, and gradually drive other services through the superior service to achieve the accumulation of customer resources.
Business convergence. Generally refers to a mode in which two or more services merge to form a new service. The foundation of convergence is business innovation. For example, China Unicom Group's launch of broadband services has squeezed the conventional telecommunications broadband market.

In terms of the above two implementation methods, service bundling, as the initial stage of full-service operation, can indeed attract some users, but it is difficult to form a continuous user group, and there is a risk of user loss when encountering price competition. And business convergence will be the mainstream trend of full-service operations. Although business convergence means network upgrades, equipment replacement, organizational adjustments, and other issues, operators need to add more investment; however, converged services will attract more High-quality customers will also bring richer returns to operators. ^[2]

Full service operation Foreign operator full service operation experience

Analysis of the operating experience of several full-service operators such as Deutsche Telekom, AT & T, and PCCW, mainly reflected in seven aspects:

1. Convergence and innovation of business is the key. After the original fixed network operators obtained the mobile network, they took fixed and mobile bundled services as a breakthrough point and provided comprehensive services including voice, broadband, IPTV and IT solutions, so that users can obtain a package of services, such as PCCW Provide fixed and mobile Internet service packages. AT & T provides a monthly subscription-free voice service between fixed and mobile networks.

2. Broadband services and IPTV are new growth points. Continue to give full play to the advantages of fixed-line broadband while bundling fixed broadband with mobile Internet services to attract more users. Vigorously develop IPTV, whether it is the "now" IPTV launched by PCCW, AT & T's U-verse, or Deutsche Telekom's "T-home" business based on high-speed fiber-optic networks, which are the key business developments of several industry-wide operators. Carrying out differentiated competition with traditional radio and television has become a new point for stimulating corporate income.

3. Enhance customer stickiness through multimedia services. It focuses on streaming media services such as music and mobile TV, and cuts in through low-cost strategies to effectively enhance user stickiness.

4. Expand diversified profit growth points through IT solutions. Take PCCW as a representative, boldly explore IT solutions and services, expand business areas, and truly transform into an integrated information service provider.

5. Quickly enhance corporate influence through a unified brand. After completing two large-scale acquisitions, AT & T unified its offerings under the new brand of "at & t", which not only saved a lot of advertising costs, but also quickly increased customer recognition of the company.

6. Promote business growth through industrial chain cooperation. Both AT & T and Deutsche Telekom have cooperated with Apple on iPhones, which has effectively stimulated the growth of mobile services, attracted new users, and reduced the turnover rate of existing users.

7. Ensure full business operations by adjusting the organizational structure. Since 2005, Deutsche Telekom has carried out a radical reform of the enterprise architecture, providing broadband and fixed network services for individual users through department consolidation; T-Mobile remains unchanged and continues to provide mobile communications services; T-Systems and corporate customer departments The merger can provide services for individual users and corporate users.

Based on the above-mentioned full-service operator's operating experience, the core approach is nothing more than two aspects: one is to forge core capabilities through business innovation and brand integration; the other is to strengthen internal management through organizational adjustments. Operators in China should also proceed from these two aspects and seek a path suitable for their own full-service operations. ^[2]

Core forging of full business operations

To become a competitive full-service operator, businesses, networks, brands, and IT systems are indispensable. Operators should prepare early and plan ahead to forge business innovation capabilities, network integration capabilities, brand integration capabilities, and IT support capabilities.

Forging business innovation capabilities: Business innovation capabilities have always been one of the core capabilities of operators. This capability will become even more important after obtaining a full-service operating license. Because the main change brought by the full-service license is the expansion of business scope. It can also be seen from the operating experience of international full-service operators that converged service innovation is the main innovation direction. Operators should shift from a network-centric service provision model to a user-centric service provision model, and study the characteristics and implementation methods of converged services, such as terminal convergence, package bundling, and technology convergence. Introduced mobile and fixed bundled converged services within a time period, enabling users to access multiple services through multiple terminals, unified billing, unified address book, and unified authentication to seize market opportunities.

Forging network convergence capabilities: After acquiring a new fixed or mobile network, the original operator should study how to effectively integrate the existing network with the new network and give full play to the synergy advantages. Especially with the advancement of triple play and the development of IP technology and softswitch technology, we must explore how to achieve convergence at the core network level and diversify access networks in order to reduce operating costs, improve operating efficiency, and minimize Cost brings users a non-discriminatory communication experience.

Forging brand integration capabilities: After full-service operation, operators will face the problem of coexistence of multiple brands. Should we continue to maintain different brands in the fixed and mobile business, or build a unified business brand for different customer groups? Enterprises need long-term planning, systematic planning, and forging brand integration capabilities to make brands a booster for enterprise development.

Forging IT support capabilities: The provision of converged services requires a converged IT support system. The business support system must ensure that operators can quickly launch new services, and support the complexity, integration and complex network environment of the services to ensure the user experience. The operation and maintenance support system should support management and control in various fields, achieve cross-domain collaboration, perform unified user management, establish an integrated operation and maintenance management system, and implement end-to-end process control and service management. ^[2]