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Introduction
In the quest to innovate and
pursue a position as a market leader, our clients work
diligently to design and produce new technology products
and value-added services to their customers. However,
even with the best designed product, the
proper plan of execution must exist in order to achieve desired
market results.
Situation
There exists a never-ending quest within the cellular
industry for carriers to find cost effective ways to
improve the performance of their networks as a way to
improve customer satisfaction, reduce customer churn,
and enable the delivery of new services. Our client came
to us with a novel approach to address these issues –
they had developed a new technology that would allow for
the deployment of cellular services at a much lower cost
and with greater flexibility.
Complication
While the technology
approach developed was very compelling, the system
represented a quantum shift from standard deployment
practices. Technical contacts at cellular carriers had
to be convinced that the system would fit with their
legacy networks. Meanwhile, a financial evaluation
proving the merits of the technology had to be performed as well.
Research
To support their sales and marketing needs, we knew that
we would need to first develop a picture of the
before-and-after scenarios of adopting this new
technology. In order to do that, we would need to
demonstrate the cost of continuing to deploy traditional
networks as compared with the proposed system. As a
first step, we needed to quantify the impact on the
bottom line as customer satisfaction waned with the
presence of network coverage gaps. After some detailed
research into the field, we were able to quantify the
industry-wide projections of costs associated with
customer churn related to network performance.
Analysis
Once we completed our industry research step, we then
developed a detailed financial model that allowed us to
evaluate the impact of the new technology on the
carrier’s bottom line. By developing a customizable
model that allowed our client to input data specific to
their sales target, they could very quickly replicate
the carrier’s economic profile based on their own
network deployment. In this way, they were able to
calculate a verifiable ROI for each test run. To support
ease of use, we developed a front-end of the model that
allowed the user to ‘turn on and off’ switches built
into the model for fully customized applications.
Problem Solved
Once the model was built, we were able to take
individual network data into the model and run the
analysis to demonstrate the economic impact of the new
technology in established networks. For a target
customer territory, we demonstrated how the
adoption of the new technology would create added value
of $66 million for the carrier.
Result
Based on the modeling work conducted by The Shpigler
Group, the carrier possessed a well-documented,
value-creating marketing tool at their disposal when
making sales calls. With this tool in hand, they landed
deals with three carriers to adopt use of their smart
antenna system and are currently in discussions with
strategic partners and institutional investors to
acquire the technology.
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Benchmarking
Economic Development
Feasibility Studies
Financial Analysis
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New Product Strategy
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Strategy Development
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