Am sure AK and KDN are in a tricky situation due to the losses,but am sure they can turn it around.
In the
short run (30-90 days) these companies can have 30% reduction of cost, Increase
of revenue and customer satisfaction by doing Process Innovation.
Many companies try to gain competitive advantage through structure, size and
even their product portfolios—but frequently create complexity that customers
are unwilling to pay for.You see structure and even products can be copied,its
only when structure,size and products are mixed with good process only then can
a company get sustainable competitive advantage.
The process innovation will actually involve linking process to customer value
and profitability.
Telecommunication service is something all of us are familiar with, most of us use, and many of us rely on as an integral part of our daily lives.
With a product (Internet) that has such broad appeal, it would seem logical that telecommunication providers would act aggressively to establish a compelling offering,one that differentiates itself from the rest of the market place.
Nothing could be further from the truth.
Because we know that process innovation is the primary driver behind competitive differentiation it would logically follow that the customer-facing processes of these businesses would undergo intense scrutiny in the effort to evolve their competitive differentiation. In Kenya, the established telecommunication service providers have instead opted to focus on gizmos, glitz and combative marketing campaigns that set unrealistic customer expectations that are impossible for the business to actually deliver on.
In fact, the industry carries such an excessive overhead (inefficient processes) with a glaring track record of horrible customer service and satisfaction that the only way they have found to make minimal profit margins is by grace of the almighty or forcing customers to buy service contracts.
Without these service contracts, the Causes of Work and process Points of Failure leech away any hope of profit for these companies.
The way forward is to have an outside-in approach and identify the moments of truths (interaction with the customer).
I know it sounds generic and academic but it has been done before notably by Jan Carlzon when he transformed SAS from USD 17 million loss to a USD 54 million profit in 1 year,using the same methodology.
I would be willing to assist any of these companies with my expertise in this area.
I don't think MTN can hack this market it's way too competitive for them and the margins are far from ideal. Last but not least their country of origin ...eeeh ya!
AK had been approached buy Mweb for acquisition before AFSAT , initial discussions completed and final numbers arrived at. But the Founders exaggerated their cash ambition and they were left high and dry. Currently they are worth a fraction of what was on offer at the time.
Kiania DOn Fri, Jun 17, 2011 at 2:34 PM, Joram Mwinamo <joram.mwinamo@gmail.com> wrote:
Do i See MTN bidding to buy Essar, then AK?Sent from my Voice Recognition Watch©On Fri, Jun 17, 2011 at 2:07 PM, [ Brainiac ] <arebacollins@gmail.com> wrote:
call it doomsday prophesy but i am predicting.Queen Bee is gonna swallow them all.....--On Fri, Jun 17, 2011 at 2:00 PM, David Kiania | Asentric Consulting Ltd <kianiadee@gmail.com> wrote:
Two major Internet players to hit the headlines on the today with
quasi adverse mentions. In todays Business Daily KDN has been hit by
mass exodus of talent and will be replaced by mainly South Africans
(yes South Africans) http://bit.ly/mPpT8D and Access Kenya is merging
it's businesses and the underlying numbers look scarcely.
http://bit.ly/irHphP
AK lost an amazing KES. 134m in FOREX loses ONLY and also saw their
revenues decreased by KES. 300m from 2billion to 1.7billion ouch. In
the intervening year AK has not made notable investment in
infrastructure or marketing so the revenue is bound to decline even
further. I also think the Safaricom assault on their corporate
business and Airtel heading that way ... shareholders have a right to
be very concerned.
Only time will tell how these companies would do but even with
impending changes at KDN would we prefer a better managed company by
foreigners or we really don't care? As far as AK is concerned ...
My thoughts
--
[Asentric Consulting Ltd]
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