Reliance Communication

AURA CONSULTANCY We make business easy It is a young enterprise started by 5 creative brain children, giving their best to make business easy. Here we have made a brief study on your organization Reliance Communication which is a flagship company of (i.e, The Anil Dhirubhai Ambani Group) which was established according to the founder of Reliance Late.Mr.Dhirubhai Ambani ‘s dream to make agriculture predominant India a digital India. And which today is India’s one of the leading telecommunication service provider in India and has spread across the globe with its wide spread service since 2004. Reliance Mobile is an umbrella enterprise of the Reliance Communication. Reliance Mobile initially started its operations providing. CDMA technology enabled cell phone service where the customers are bound to use a particular phone for a particular number and GSM service where in the customers have a wide range of options available for selecting the cell phone and the network provider. And in both the services customers are given high importance and plans are built on it with prepaid and postpaid connections.

Business Model: Reliance Communication (formerly Reliance Infocom), was set up to make an India where the common man in urban as well as in rural area, would have access to affordable means of information-technology and communication, the tools of information and communication available to all the individuals and businesses at affordable cost by creating customer delight and enhancing the business productivity and by assisting India’s knowledge brains deliver globally.

Core Business Model that relay on IT and IS: Reliance Mobiles is the Pioneers of the CDMA Technology mobile services and has now entered into the GSM services, has captured the untouched rural Indian market through its low price and

basic user friendly cell phone models and plans/schemes which is a contradiction in the industry as most of the industry players are busy capturing the diametrically opposite market segment who are actually capturing urban and upper segment. We understand Reliance Mobile is also offering a range of handsets specially designed to reach all economic classes at very reasonable price. This today, makes the telecommunications industry in India have a revolution in the way nation communicates and the networks which has brought in a new way of life style in India. Reliance Communications has made huge investments on the IT infrastructure by laying optical fibers over 60,000 kilometers of a pan-India fiber optic backbone covering nearly 450,000 villages and 77million subscribers by penetrating into the untouched market segment which has a high growth potential in the recent times. Reliance Communications has a reliable, high-capacity, integrated, and convergent digital network. It is capable of delivering a range of services spanning the entire information and communication value chain, including infrastructure and service for business as well as the individuals. Apart from the enormous investment made into the IT infrastructure on which the whole business process of Reliance Mobile is dependent upon there has been other Information System on which the process is dependent upon such as Traffic Monitoring, Connection Fraud Management system, Management of billing systems, etc. Mintzberg Classification : According to Mintzberg`s classification, Reliance Mobile belongs to the Divisionalized bureaucracy as it is the combination of multiple machines and bureaucracies producing a different product or service like the CDMA technology based service or GSM technology based service with different plans and schemes which are all topped by one central company “Reliance Communication” which can also be termed as the headquarter of Reliance Mobile. Reliance Communications along with its well established Mobile phone service also provides Wireless and with wire telephone network service, Big TV(DTH), integrated enterprise solution, village public telephone, BPOs, infrastructure business under one roof hence we can classify this organization as Divisionalized bureaucracy under Mintzberg Classification of Organizations

Porter’s Five Forces SUPPLIER POWER Supplier concentration for infrastructure/inputs. Differentiation of inputs Impact of inputs on cost or differentiation Switching costs of firms in the industry Presence of substitute inputs where optical fibers are used against copper ones BARRIERS

THREAT OF

TO ENTRY Access to inputs Govt.policies into industry.

DEGREE OF RIVALRY -Exit barriers with high sunk costs -Exuberant Fixed costs/Value added -Intermittent overcapacity

Very huge Capital

-Product differences

requirements on the

-Brand identity

infrastructure.

SUBSTITUTES -Switching costs to other service provider. -Buyer inclination to substitute like smart phones -Price-performance trade-off of substitutes and

Access to distribution of

competitors.

the service produced. BUYER POWER Bargaining leverage Buyer volume Buyer’s high information on product availability. Brand identity High Price sensitivity Bargaining power of suppliers

o

Supplier concentration : Availability of suppliers for the IT infrastructure is very few and the suppliers and they have a integrated network who follow a set of pricing policy for quoting high rate which makes Reliance Mobile pay high by supplier’s concentration.

o Differentiation of inputs: The infrastructure supplies or the product available from the different suppliers varies to an extent for which without supervision very difficult to proceed. o

Switching cost of firms in the industry: As the company has now started penetrating into the GSM technology from the

CDMA switching cost of technology to the company in the industry is very high. o

Presence of substitute input: As the availability of input is getting updated every day and emerging

technology, it is very difficult for the reliance mobile to stick on to one kind of technology or supplier in long run. Bargaining power of customers o Bargaining leverage: As very high competition exists in the industry with nearly 8-10 players buyers have very high bargaining leverage to the Reliance mobile as its concentration is highly towards CDMA technology. o Buyer Volume: Though there are huge but common buyers for the all the service provider in market this company has to compete with the same volume of buyers in the available market segment to acquire their pie in the market.

o

Buyers information: As buyers see all the players in the market and are well equipped with information on the best suited plan for their use and its provider. It is hard for the company to convenience the buyers with high cost.

o Brand identity: As Reliance is a well established company in India and across the globe their brand identity is helping the business of Reliance Mobile to grow in greater pace. o Price sensitivity: Reliance cell phones are sensitive in nature and has its market concentration high in the rural market which is mainly because of their low cost / price sensitive. Threat of substitute o Switching cost: As switching cost of the cell phone service providers in India is very low it becomes easy for the customer to shift their network provider and which ultimately affects the company. But as Reliance’s concentration on CDMA technology is high it reduces the risk of switching over of the service providers. o

Buyers inclination to substitute like Smart Phones and Internet Calling: Buyer’s inclination towards the emerging technology like smart phones and internet calling or online computer to computer calling is one of the major threats faced by Reliance Mobile.

o

Price performance trade-off of substitute: Where in the price of the Smart Phones are slashed drastically now it has become a big threat for Reliance Mobile as the customers have high inclination towards the new technology to make their job easy.

Threat of New Entry In telecommunication industry the threat of new entrants is slightly low as it requires very huge capital investments and an established brand identity. Apart from that the company must also have to adhere for the Government Policies which are becoming very strict in the recent times related to the global warming and other security purposes. As this industry requires high access on distribution on the service generated by spreading wide across, requires great networking. Degree of Rivalry o Exit Barriers: In this industry it is very difficult for the new entrant to enter or for the exciting player to exit from the market as it involves very high sunk costs, which is spent on the infrastructure and it also involves a very huge fixed costs which are spent on maintenance of the infrastructure, technology and the highly skilled human resource. o Industry Growth: As in telecom industry is growing very fast in India by adding one Australian population every year it is showing a very high growth rate which inclines the new entrants to enter into the industry although it is hard. o Switching Costs: As in India a telephone subscriber has a wide open door to switch over to any service providers if they are not happy with the current one it may let the Reliance to lose their customers for their bad performance or unfavourable plan than others.

Competitors Reliance Mobile is facing a cut throat competition with 22% market share in the cellular service provider market, as there are many market players including the private and the public owned companies. As this industry is growing at a very high pace the market entrants are also high and each player looks forward to grab the market share available to them. The major competitors for Reliance Mobile in CDMA and GSM technology are: CDMA Technology: Though this technology was pioneered by the Reliance Mobile in India their major competitors in this technology are: TATA Indicomm Virgin Mobile. GSM Technology: Reliance has entered into this technology based service recently and has a very low market share in this segment and is facing a very tough competition with the established giants like: Bharti Airtel Vodafone Essar Idea BSNL (Bharath Sanchar Nigam Limited) BPL Aircel.

Major IT/IS Investment made by Reliance Communication Reliance Communications is concentrating mostly to bring in many services and IT applications on its telecommunication network and has a further plan of investing nearly $3.5 billion on the applications. One of the major IT investment made by the Reliance Communication is on their Customer Relationship Management (CRM) and on Enterprise Resource Planning (ERP) in the recent years. CRM in Brief: CRM is a strategic process and a technology that lets a company make all its sale by optimizing revenue and getting a better understanding of the customer's needs. The CRM operates together on sale, marketing, and customer service into a single software-driven technology. In other words, it includes the areas of a company that affect the relationships with their customers. It puts the information into a single pack which encompasses the meet of what every customer-centric business needs to know and keep track of. Each and every interaction with a customer is recorded in this system. This information is then used to manage,measure and keep track of the processes of marketing, sales and customer service as they relate to that client. SAP the application software giant is catering CRM application for the Reliance Communications.CRM software is vital for the telecommunications industry and Reliance Mobile is one of the major users of CRM application in India. This in turn is maximizing the return on customer investment using CRM Software. CRM software identifies profitable customers and processes.CRM focuses attention on customer service problems and the associated costs. CRM software at Reliance Communication finds incremental profit and cost savings opportunities. As telecommunication industry and CRM go hand in hand this is helping Reliance Communications target sales and marketing to prospects most like the profitable market segments using telecommunications CRM tools.

Telecommunications CRM applications implemented in Reliance Communications find the products that generate the highest customer service costs, information and restructure the products to cut costs and increase savings. It helps in identifying customer service bottlenecks and the information developed by Reliance Communication. This software at Reliance Communication has a high contribution towards increasing customer satisfaction and retains customers. Reason for using telecommunication CRM application in customer support costs at Reliance: CRM telecommunications application solutions at Reliance Communication, link customer support costs to products and the markets. It uses the information to correctly price products and services. Reliance is using data from telecommunications CRM applications to accurately identify profitable and unprofitable market segments. Current Status of CRM at Reliance Communication: At Reliance Communication works throughout the seven days in a week with their UCS (Uninterrupted Customer Service) which is the Business Continuity solution for any planned and unplanned outage of CRM for maintenance. This has resulted in the availability of the CRM by improving its efficiency to 99.99% from 99.9%

NEW INFORMATION SYSTEM Tech-Connect is the new information system our consultancy has designed especially for your company after making a brief study based on your business model, process and the competition that exists in your industry and the challenges your company is facing related to the very high human resource turnover and in the stream on marketing. This new information system designed by our consultancy is offering for the Reliance Communication is, by connecting the employees working in the Reliance Communication which is spread across the globe. Reliance communication has a wide spread network and provides the service of telephones and related products to millions of their trusted clients. As the employees working for this company has crossed over 80 thousand. This new system our consultancy is offering helps the employees of the Reliance Communication across the globe under one virtual roof without knowing any of them in person, to exchange their concepts, area of specialization and to communicate better with their unknown colleagues which helps your business grow high with better communication and integration of better brains which help them serve the best of their knowledge. In this system our consultancy will be setting up a website designed specially for the Reliance Communication where the employees of the Reliance across globe are eligible for the logins with employees id and employee number from their given unique login in name. Once the employee logs into this site they get to see the working of the each and every employee with their given personal details that they would like sharing within the Reliance World from just a click of a button. This new system has three portals which serves Technical, Social and Corporate Portal systems . Under Technical Portal the employees get to work on the technical aspects and to share their ideas related to the domain in which they work and this portal can be accessed while their working hours. While the Social Portals are accessible for the employees only when they are off the job and login to this site with their unique user name. Although this system offers social portals its available only for the Reliance Communications employees.

TECH-CONNECT offers a range of portals, broadly classifying into 3 categories: Technical Portals Corporate Portals Social Portals TECHNICAL PORTALS: These portals have Technical features. Gives a platform for employees to discuss on technical aspects of their domain. As each one will have a different point of view, this will give each other a good exposure. They can also experiment and come up with innovative creations. Employees will be encouraged to log in here but not at the cost of their work, however, the communication will be monitored to avoid misuse. Discussions on technical issues: An employee can discuss on a technical problem, with anyone he wishes to in the organization. As they come under the same roof of Reliance Communications, the discussions will be healthier. Advantage: Mutual problem solving, gives different views and work efficiency Post technological updates: As technology is improving at an alarming rate, one cannot afford to be ignorant nor can spare time in going through all the technological articles. So gives a platform for one to put up a new article. Advantage: Regular Updates of narrowed down information.

Work at home If an employee is not able go to office at times of inconvenience or accident, she would still be able to access the community and stay connected to the workplace in the virtual space. CORPORATE PORTALS: These portals are related to Reliance Communications. Features related to the information of the company, queries of the employees, rules and regulations of the company. Complaints An employee can lodge any problem he is facing through a complaint online without fearing. He has the right to complaint and seek help from his higher authorities. All is fare when it comes to customer satisfaction. For ex: the employ can complaint about poor network service, automatic activation of promotional packs, receiving blank calls, system inactivation, fake promise installation, stopping caller tune, phone terminated, cheated offers, problem in data card or any other problem as such without any regret. Advantage: An employee can lodge any problem he is facing through a complaint online without fearing. Asset management An employee can put forward all his demands in front of his higher authorities through online service. His demands may be regarding any improvement in the system or network or even transport facilities or best equipments. His views are readily accepted. Advantage: Employee’s demand and views will be addressed immediately

Transfer This portal gives a platform for SWAP transfer that’s the way of mutual exchange. An employ can request or ask reference from another employee of different branch for transfer through online basis for his comfort allowances. Advantage: SWAP transfer Feed back An employee gets a chance to give his feed back with regards to any management decision or even to express his own opinion. Advantage: Platform for expression. Survey tools: This is a process of setting up a questionnaire to do research on some respective issues concerning the betterment of the communications. The questionnaire can be up loaded, further are analyzed based on their views establishing good networking all around the organization. Advantage: Easy for the surveyer as well as for the respondent. Bulletin board In this process the “notice or matter” is displayed on online notice board. The main advantage lies in sharing of views and knowledge among several employees and higher authorities of different branches. This help to select a best decision regarding the “notice” with various ideas. Through this process an employee can gain online training facility, he can also send or exchange messages, mails, images, videos, etc. With his other employees and higher authorities. This process is highly informative. SOCIAL PORTALS:

These portals have socializing features. This gives a platform for employees for fun and folic. A platform for their opinion, experiences, discussion of their interests. This portal gives them very relaxing experience and entertainment. However, restrictions will be put on their logging timings, so that the employees do not misuse it, or decrease their work efficiency. Any employee can log in for half an hour per shift, and can stay back however long after their day`s shift. This ensures that their working will not be affected. Socializing networks bring employees closer, Trust and better coordination, altogether making Reliance Communications a Big Huge Family. Detailed database of the employee: This portal contains Personal Information, Contact details, attendance, Project currently working on, achievements, interested areas, talents, Hobbies, the personal information, contact details can be accessed only with the approval of the employee where as the rest will be freely available. Advantage: To know people better in the organization. Social forums: This helps employees to share views and ideas, discussion on a topic, Reminders: Birthday reminders, Anniversary reminders, important dates of the employees, festivals etc. Advantage: Builds better social relations amongst the employee. Online loan from an employee to an employee: As the trust builds up amongst the employees, one can avail loan or some other kind of support. Advantage: Mutual support.

How Tech-Connect works? Technical Requirements of Tech-Connect: Hardware required: • Computer System (either desktop or Laptop) This connects the server system and in turn it is connected to the client system. • Processor (Dell Server) Internally functioning of the database management processes •

Hard disk (a storage device) Huge storage devices required around 4 sets of 500 MB hard disks

Software required: • Web page- this is the most important part, web page will be very user friendly and attractively designed in order to make the easy access to the user regarding the given information on the web. •

IP Address- a domain name to be registered. To govern a set of rules to connect main server to client server via internet.

Telecommunication: • Internet, Intranet, Extranet, LAN and WAN

Working of Tech-Connect:

Tech-Connect works with the intranet and extranet. Extranet is the internet which is limited to the access for only few people. Tech-Connect connect to the client computers with the help of the server that is placed in the company in one particular area and has the accessibility over all. The data transformation is from the user computer to the server computer then to the virtual space with the help of intranet and internet.

Why is Tech-Connect the best?! Here each employee is connected on this site can have conversation with his colleagues who are working at the other part of the world or any part and get connected and have a conversation related to their domain. This helps the business as there can be blend of the brains which results in the best outcome. Technical Portals help the company in the streams of Finance, Marketing and Human Resource and Information Technology. How Tech-Connect helps the business? Finance: Here the employees working in the finance stream can make a free conversation with the finance person working in the other branch or part of the business in order to take strategic decisions related to the investment policy and on the billing related aspects as decentralization exists and that helps the business in getting better. Marketing: It shall help the stream of the marketing to a very high extent. As in this industry the zonal level management has a higher authority in creating and introducing better schemes and tariffs which automatically increases the sales of the business. Suppose, a marketing guy who is responsible for the sales in Bangalore has done a tremendous job and has very high credit on his achievement but his subordinates at the other places are not unable to implement the same because of their lack of knowledge or other technical no how can always login to the achievements folder of the different state and can make a personal contact with the achiever and share the knowledge or the

idea in order to improve the business in a high pace by cutting down the time required for the flow of knowledge in the form of a whole chain of hierarchy that exists in an organization Human Resource Management: Tech-Connect is giving high importance for the Human Resource through this new information system. New information system will help the employees working in the stream of Human Resource in developing the knowledge on the employee to get best of his ability by encouraging decentralization and reducing centralization. This helps the top executives of the business to meet the lower executives and know the work and their zone of comfort working in. This helps the employees to build in rapport and make them deliver the best once they get to know they are cared and appreciated in the business. Networking between the employees helps the Human Resource Management in knowing how best could the problems be handled at the time of problems and help them solve them with the big web of network they create. It helps them in knowing the actions taken by the other person and the best result that could be achieved. As human resource turnover is very high in telecommunication industry because of the fast entrants in the industry the experienced hands move easily for the better salaries and the positions offered to them elsewhere than Reliance. At these situations Human Resource Managers play a very important in retaining the employees and keep motivated. Apart from this option there are many other offerings made on this new information system like employee swapping, where the employees can look for the other employees who are looking for the mutual transfers without affecting the business. Once the employees are comfortable working in the place of their choice they can always deliver their best. Employees also have the option of referring their contacts into the business in the other parts of the spread over of the business as well. Employees can also change his stream of working by consulting the ones working in his field of interest by the network or by reading the information shared by other employees. Employees with their network in the company when transferred from one place to another can have a better idea on the working condition that exist there by just on a click of the button by looking at the personal details with whom they are the comfortable with. Once when an employee is aware of his work place and the conditions will be able to deliver his best.

Employees can also use the reliance community where the games can be played which are designed for improving the analytical and technical skills. Networking helps employees to share their achievement in terms of career and the personality development. This also helps the employees to be appreciated and rewarded for their achievements which can also help in performance appraisal of the employee and keep him motivated throughout.

Information Technology: This new information system helps the technical personnel working in the Reliance Communication in knowing the latest technology implemented and what best can be implemented in the business by integrating the ideas generated in the technical side of the business which contributes to the working at the higher technical end.