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قديم 24-03-2018, 10:51 PM   #1
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II- CASE STUDY
Vodafone Egypt

Company background

Vodafone is a telecommunications company that offers mobile services, solutions and products. Internationally, Vodafone is one of the leading communication companies with headquarters located in London, United Kingdom. Vodafone first started operating in Egypt in 1998, providing the consumers with great variety of technological solutions for both businesses and consumers. It developed considerably, as it was established, was able to dominate the market successfully and build the necessary brand trust and loyalty. The key of its success lies in its ******er-driven strategy that focuses on understanding ******ers’ needs and thriving continuously to satisfy them. Their consumer-focused perspective has entitled them to remain on the top of technological advancement, being able to cope with the extremely rapid technological innovation. Moreover, they adopt the latest information technology tools and concepts in their different operations.

Vodafone is the number one network in Egypt, with a primary target to permanently be the best mobile operator. As declared by the Egyptian Ministry of Communications and Information Technology in April 2015, the number of mobile subscribers in Egypt is 96 million representing around 110 per cent penetration. Vodafone has the highest market share at 41.5 per cent (around 40 million subscribers), followed by Mobinil (33.6 million subscribers), and then Etisalat (22.6 million subscribers).

The company’s ideology in adapting to continuous change and in being always the leader in the market is fuelled by the motto: “Progress is impossible without change and those who cannot change their mind, cannot change anything”. Therefore, their work place theme is dynamic and innovative for achieving this aim. Employees at Vodafone constitute a team of professionals who work incessantly to develop and enhance Vodafone Egypt’s voice, data, transport and fixed networks. ******ers are provided high-end, efficient and excellent enterprise services through the use of ITIL methodology (The Information Technology Infrastructure Library), which is basically the collection of best practices that aims to improve the company’s performance to achieve goals and objectives especially technological ones. Moreover, in assurance that ******ers could make calls anytime and anywhere, Vodafone’s network coverage is planned to reach 99 per cent of Egypt.Vodafone Egypt provides a superior quality of services to their ******ers through a dedicated team of over 6,500 employees working in different activities. Almost half of them work in ******er care and administration
Types of services

Vodafone Egypt provides a variety of services to its ******ers:
Voice: Vodafone Egypt is the largest carrier of mobile voice services, providing domestic, international and roaming voice services to more than 370 million ******ers worldwide. Messaging: Vodafone Egypt’s network received and sent over 292 billion text, picture, music and video in 2011. Data: More than 75 million ******ers bought Vodafone Egypt’s mobile data services that allow access to the internet, emails and other applications on their phones, tablets or any other device. Fixed line: Vodafone Egypt provides fixed line services to all its ******ers worldwide.
They provide wholesale carrier services to over 40 African countries. Other: Other revenue generating services include secure remote network access and revenue from MVNOs generated from selling access to Vodafone Egypt’s network at the wholesale level.

Management structure and market position

By the end of its fiscal year on 31 March 2011, Vodafone International changed its organization structure to ensure the delivery of the company strategic goals. Europe region consists of all existing controlled businesses in Europe plus the ones in Czech Republic, Hungary, Romania and Turkey. Africa, Middle East and Asia Pacific region comprises Egypt, India, Ghana, Kenya, Qatar South Africa, Australia, New Zealand and Fiji. The organizational structure of Vodafone usually promotes teamwork

By the end of December 2011, Vodafone Egypt ******ers reached 36.3 million: a market share of 43.4 per cent. Furthermore, the company leads its competitors in driving their ******ers to migrate to smart phones and data packages. Vodafone continues to capitalize on its main key growth areas of data, enterprise and emerging markets, while maintaining investment in improving its network quality and in developing new services.

The change

The migration to SAP ERP , which is an enterprise resource planning software that incorporates the key business functions of an organization: Sales & Distribution (materials management, production planning, logistics execution, and quality management), Financials (financial accounting, management accounting, financial supply chain management), human capital management (training, payroll, e-Recruiting) and corporate Services (travel management, environment, health and safety, and real-estate management), at Vodafone Egypt was part of a project that covers Vodafone companies worldwide. The company’s Evo ERP project (Evo is short for “Evolution”) was its “largest ever business transformation” that covers finance, human resources and supply chain.

Vodafone’s head of ERP, Marcus Cotes confirms that “the project was vital because it enabled Vodafone to operate on a global basis with common processes and systems”. Evo system would help in reducing transaction costs, increasing back office efficiency and facilitating global procurement.

At Vodafone Egypt, the implementation project of Evo programme started in 2007 and was completed in 2011. The first project’s stage was in 2008; SAP modules were implemented in a Shared Services centre, a Procurement centre and the Hungarian and German markets. A year later, Portugal and The Netherlands went live. In 2010, Vodafone transferred to SAP in its other functions in its London headquarters, Spain and Africa. By
2011, the system was expected to cover the remaining company branches: Italy, Greece, Turkey, New Zealand, Egypt and Czech Republic.

The first phase of implementation targeted employees that would work directly – or even indirectly with the new system. It started by introducing Evo and its benefits not only in adding value to the business but also in smoothing and facilitating business processes for the employees. Next, employees were given three weeks of intensive training by Evo agents to ensure their capability in using the system. Moreover, an internal communication strategy was executed to allow a smooth transformation process for all employees. For example, a Super User was selected in each department, whose responsibility is to assist employees in using the new system in her/his department. Super Users were the representatives of their department to work with the overall company’s implementation team. Although it was hard for the employees to shift to SAP in the beginning, which resulted sometimes in delays in some daily business processes, the entire transformation was smooth and took from 2 to 3 months. This was due to the fact that Evo’s implementation in Vodafone Egypt was the fifth wave; hence, the migration was tested in several countries earlier. Furthermore, Vodafone’s culture enhances constant change to ensure that the company is always a front leader in the market and nourishes the individualistic development of employees.

By the end of 2011, the implementation process became half way through, with most data transferred to the new system. Employees started to use the system and were reporting immediately any problems that occur to be solved the soonest possible.

Organizational challenges and opportunities

Employees from both IT and HR departments revealed the challenges and opportunities Vodafone Egypt faces. As a multinational company, Vodafone Egypt usually faces local as well as global challenges. Locally, it was very difficult to keep track of all unlicensed dealers and unregistered costumers. This fact prevented the organization from controlling the quality of service offered to its ******ers, and from obtaining full insight about sellers’ activities and ******ers’ behaviour. Furthermore, sharing information and smoothing processes within and among departments were inefficient, which results always in delays and unnecessary effort from the part of the employees.

As part of integrating with Vodafone group, Vodafone Egypt had to unify its IT systems with those of Vodafone International. Although this move would help in integrating information and processes in the company (hence, addressing the challenge stated earlier), it represented a great deal of responsibility. The change took long-term planning and constant training to ensure a smooth migration process. The crucial issue in the entire process was in transferring data. The main focus during the transformation process was directed toward the efficiency of the system avoiding any breakdowns. This sometimes led to few cases of duplication or missing of data during transfer.

As for the opportunities, even though a number of businesses were negatively affected by the 25th of January revolution, Vodafone Egypt was given the chance to contribute positively to the development of the country. Egyptians valued the role played by social media during the revolution. This fact was clearly witnessed when looking into the increase of internet users by 3 million just one month after the revolution and Facebook subscribers by 1 million. The rate of technological literacy is still in constant increase and people are becoming more and more dependent on technology especially mobile phones, hence providing Vodafone with wider opportunities. Currently, the number of internet users reached 46.2 million constituting a penetration of 53.2 per cent, and Facebook subscribers became more than 12 million.

Adapted from :
Azab et al. (2016). A strategic use of technology case of Vodafone Egypt. Emerald Emerging Markets Case Studies, Vol. 6 Issue: 3, pp.1-16.



III- QUESTIONS
1- According to the passage above, explain the different characteristics that make Vodafone a successful and innovative company. (300 words – 30 marks)


2- Vodafone latest development and progress was due to the adoption of a new technology: the SAP ERP and other Evo programmes.
Evaluate the strategy adopted by the company for the implementation of this new technology and the transition that took place and discuss its success factors. (350 word – 35 marks)

3- Choose one of the companies located in your country of residence (or any other company) known for its innovative strategies, and elaborate on the main factors that encourage innovation in this company (type of innovation, latest innovations, employees engagement, leadership characteristics…) – (350 words – 35 marks)
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