OSS Telecom Technology developed a marketing strategy to ensure long-term growth and success in the OSS marketplace. This strategy continues to be refined and improved and initially includes:
The advantage of this strategy was threefold:
OSS Telecom Technology will strive to intimately understand the customer in order to provide solutions that match their specific needs.To be successful, OSS Telecom Technology will develop long term relationships and choose customers that share this model.
In the best-selling publication “Discipline of Market Leaders,” customer excellence is defined as “specializing in satisfying unique needs.” These unique needs are recognizable only by a vendor with a close relationship and intimate knowledge of the customer.
For a comprehensive definition of the model for customer excellence, OSS Telecom Technology's plan includes:
Within OSS Telecom Technology's stated primary and secondary markets, OSS Telecom Technology has developed a “Stepped Target Market Strategy." This strategy is based on two key elements:
OSS Telecom Technology's first installation base consists primarily of GSM operators in the range of 25,000 subscribers and under. Through a stepped strategy, OSS Telecom Technology is moving in three directions:
This strategy currently puts OSS Telecom Technology in the Tier 3 (less than 100,000 subscribers) market, with each step carefully planned to be sure we do not overreach. It is key to this strategy to maintain all customers as long-term partners and referenceable sites. We want to under-commit and over-deliver in each step of this strategy.
One of the key responsibilities of marketing is lead generation. The following methods are used for lead generation:
Our pricing strategy for products is to maintain a 30% to 40% advantage below Tier 1 CCB vendors for total installation cost which includes license fees, installation services and custom services. Coupled with our strong product road map, OSS Telecom Technology believes that this forms the core of a very strong value proposition.
Post-Warranty Customer Service Pricing
OSS Telecom Technology offers two customer service packages to meet the needs of various operator requirements:
Extended Customer Service
Business Partner 2000
The OSS Telecom Technology sales model is solution-based and a team sale.This sales team will encompass Field Marketing, Program Management, Support, and Product Management as needed.The five groups which form the team are listed below:
Revenues are calculated separately for each product and for maintenance and Consulting Services. In addition, product revenue is broken out between New Sales and Upgrade Sales. New Sales and Upgrade Sales are further broken down into License, Installation, and Customization revenue. The products included in this forecast are Customer Care and Billing (CCB) products, Prepaid IN (PPIN) products, and the Short Messaging (SMSC) product. Each product and service revenue assumption is detailed below.
Pricing assumptions for licenses include a 10% discount from list for direct sales and 30% from list for indirect sales. Sales are forecast at 50% direct and 50% indirect resulting in a weighted average discount of 20%. Pricing for licenses stays constant over the five year period. OSS Telecom Technology does not increase license pricing while significantly increasing feature set to maintain competitive pricing advantage over the five-year period.
One of the benefits of having a large engineering team is the ability to develop solutions for our customers that are comprehensive and extend our target markets stepwise into additional service operators. In this sense, we will engage our customers in user groups and develop a comprehensive product road map. Half of the product road map will contain items directly requested by our customers. The remainder of the product road map will be based on strategic market analysis.
OSS Telecom Technology has initiated the process of ISO 9000 certification for its systems and procedures. The systems will be certified for our Taiwan operations. All OSS Telecom Technology engineering is being performed out of its Taiwan development center, therefore OSS Telecom Technology will initially apply for certification of those operations. OSS Telecom Technology has completed most milestones. It is expected that OSS Telecom Technology's Taiwan operations will achieve ISO 9000 certification by June, 2001.