Tele2: private experience for public sector - Andrius Baranauskas @ PSE 2013 Vilnius

Tele2: private experience for public sectorVilnius, 2013 10 24

Petras Masiulis, CEO

2

The mobile industry is in decline

Q1200

7

Q2200

7

Q3200

7

Q4200

7

Q1200

8

Q2200

8

Q3200

8

Q4200

8

Q1-20

09

Q2-20

09

Q3-20

09

Q4-20

09

Q1-20

10

Q2-20

10

Q3-20

10

Q4-20

10

Q1-20

11

Q2-20

11

Q3-20

11

Q4-20

11

Q1-20

12

Q2-20

12

Q3-20

12

Q4-20

12

Q1-20

13

Q2-20

130

50,000

100,000

150,000

200,000

250,000

Tele2 Omnitel Bite

3 *Source: TNS TRIM report, 2011

2011 Jan 2012 Feb 2012 Nov 2013 Aug55

60

65

70

75

Tele2 has the best Perceived Quality

Tele2 Bite Omnitel

Yet, Tele2 is growing

2006 20110

15

30

45

60

75

Tele2 has the best reputation*

Tele2 Bite Omnitel

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

0%20%40%60%80%

Tele2 is the leader in Customer market Share

Omnitel Tele2 Bite

4

Effectiveness is the key

5

People employed

6

Acknowledged for effectivenes

• 2nd most effective mobile operator in Europe (A.T. Kearney)

• Most productive ITT company in Baltics (Profiles international)

7

And what do we mean by “effective”?

8

9

Time is the single non-renewable resource in the world

10

Our way of doing things in less time

• Faster decision making

• Less bureaucracy

• More trust

• Mistakes allowed – as long as you learn

11

Faster decision making: an experiment

• 4 equal groups, the same problem to solve

5 min 30 min

2 hours 4 hours

12

The results

5 min

2nd BEST SOLUTION

30 min

THE BEST SOLUTION

2 hours 4 hours

THE WORST

13

Less bureaucracy

Snr. sales manager

Residential sales

manager

Prepaid sales manager

B2B & Public business

sales manager

4 employees

1,8 M clients

14

More trust

Less people doing the same job

More responsibility for employees

Working faster

15

16

Can it also work in the public sector?

17

Procurement is an indicator

• Very slow & long process

• Huge bureaucracy

• No trust

• Mistakes = claims in court

18

Short term targets Long term pain

19

But there is an alternative

• CPO.Lt: digital public procurement database

• No bureaucracy, no courts, no mistakes

• Process speeded up several times

20

And it saves money, too

HOW HAVE EXPENDITURES FOR THE MOBILE CONNECTION OF YOURS / YOUR INSTITUTION CHANGED AFTER YOU STARTED TO USE TELE2?

Mean 39,2%

% counted from those who indicated that expenditure for the mobile connection decreased, N=72

% counted from respondents, who can get information and/or pay account, N=106

% counted from those who indicated that expenditure for the mobile connection increased, N=3

Mean 16,0%

Expenditures haven‘t changed16,0%DK/ NA

13,2%

Expenditures decreased

67,9%

Expenditures increased

2,8%

12,5%

16,7%

22,2%

9,7%

38,9%

up to 20%

21-30%

31-50%

more than 50%

DK/ NA

SOURCE: RAIT, 2012 March-April

21

Can same rules be applied to other processes?

22

Our way of doing things in less time

• Faster decision making

• Less bureaucracy

• More trust

• Mistakes allowed – as long as you learn

23

Thank you