Case Study: Telecommunications

The market for network equipment in the telecommunications industry is currently in a consolidation phase. Almost all manufacturers are faced with the challenge of creating new competitive advantages. The increasing standardization of product technologies and product functionality makes it more and more difficult for manufacturers of network equipment to differentiate themselves on the market purely via core product.

Barkawi Management Consultants helped a leading worldwide manufacturer of mobile communication network equipment to identify new fields of growth in the aftersales area and establish a long-term strategy for the company. The manufacturer is now developing their business in product oriented services and now also offer their range of services, originally developed for their own product, for competitor products as well (multi-vendor services). The manufacturer takes on the maintenance, supply of replacement parts and repairs on behalf of a mobile communication network operator, for their entire network, regardless of whether it is made up of their own products or that of competitors.

Alongside the maintenance and repair tasks, the manufacturer is also able to take on the entire processes of supplying replacement parts with all the planning and purchasing tasks and the actual replacement parts inventory. This simplifies maintenance from the point of view of the mobile communication network operator. The operator can concentrate on their core competences, the development, marketing and invoicing of mobile communication products. In future, the manufacturer plans to offer more complex services above and beyond simple maintenance tasks and the supply of replacement parts. The products of the manufacturer will be in use over a relatively long period of time, during which the mobile communication network operators will have consistent high demands in regard to system availability. This gives the manufacturer of mobile communication network equipment the chance to develop new services for the entire product lifecycle and to position themselves as a full-service operator which awards availability guarantees and even provides financing.