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Bangalore Institute of Management Studies, Bangalore

The goal of every industry in the country regardless of its economic system is to increase the productivity so as to fulfill all the wants and needs of its citizens and thus to improve the standard of living of the people. Management is that function of an organization of an enterprise, which concerns itself with the direction and control of the various activities to attain the business objectives. The main aim of the study is to understand the overall function of an organization, the strategies adopted to survive in the existing competition, the integration means to achieve the goals, co-ordination, plans of action, success and failures, technology up gradation etc. Every organization whether small or big strives hard to survive and grow. In the present era of competition and heterogeneous market. Organizations have to device unique strategies which can enable them to attain the objectives, in an effective and efficient way. Organizations in order to be efficient musthave concentrateion on. On every dimension and it should be viewed from consumers point of view, b because the modern organizations cannot survive if they ignore the consumer. marketing management is of paramount significance. Therefore Marketing is

discovering and translating the needs and desires of consumers into products and services which can satisfy the consumers. The job of discovering is the

Bangalore Institute of Management Studies, Bangalore

work of marketing researchers the discovery of needs and desires become inputs for other departments.

Management is a complex task of organizing and efficient usage of resources. The management function includes Planning Planning is concerned with the determination of the objectives to be achieved and course of action to be followed to achieve them. Organizing According to Fayol, to organize a business is to provide it with every thing useful to its functioning. Staffing According to Harold Koontz and Cyril ODone, staffing involves manning the organizational structure through proper and effective selection, aAppraisal and development of personnel to fill the roles designed into the structure. Directing Directing is the art and process of getting things done. Controlling

Bangalore Institute of Management Studies, Bangalore

It is a relative function, concerned with seeing whether the activities have been or being performed in conformity with plans.

NEED FOR THE STUDY To practically understand the process of management, functions of the organization, OnMobile Global Technology Limited is selected for the study.

SCOPE OF THE STUDY The study is made to analyze the steps taken by the company to survive in the competitive market, to earn profits in the business and to gain customer loyalty. The integration followed by various departments with each other is also considered in the study. OBJECTIVES OF THE STUDY To study the overall functioning of the organization. To study the functioning of each department in detail. To study the effectiveness of policies and procedures. To expose to the working of an organization. To learn real life application of management.
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To understand the integration of the departments to achieve the companys target.

Primary data Interviewing certain managers and officers who were chosen on the basis of their in-depth knowledge and work experience in the company collects it. The interview was unstructured in nature in order to gain as much as information as possible. Secondary data The secondary data used are companys accounts, annual reports, journals, balance sheet and the data collected from the companys web site and records, documents, instructions by guides.

Bangalore Institute of Management Studies, Bangalore


All the possible care has been taken to collect the information and make the study as authentic as possible. However it is subject to certain limitations. They are as under, The time constraint limited the scope of the study Based on the limited information it is not possible to arrive at proper conclusion. No other company in the same sector has been considered to evaluate the performance in the market.

Bangalore Institute of Management Studies, Bangalore


Global TTelecommunications (Telecom) IIndustry
The prospects of the global mobile market look robust with a global subscription growth being over 20%. In comparison to developed countries, the telecom markets in emerging economies in South Asia such as

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India, Indonesia, Thailand, Pakistan, Bangladesh, Malaysia and Sri Lanka are growing rapidly and represent a huge opportunity.

Indian telecommunication industry

The Indian telecommunications industry has experienced significant growth in recent years, mainly in the mobile sector, with total wireless subscribers increasing from 13.0 million in March 2003 to 189.4 million subscribers in 2007. Historically, this sector was run by the Government under the umbrella of the Ministry of Telecommunicationsof Telecommunications Department of and Information Technology, (DoT). The Telecommunications

liberalisationliberalization of this key sector began in the early 1990s with the realisationrealization that in order to achieve rapid and comprehensive development of the infrastructure, wide scale investment was required and this could not be fulfilled exclusively by public investment. Since early 1998, all the different telecommunications services areas have been opened up to competition and private sector participation. This transition from a governmentcontrolled monopoly to an industry with widespread private sector participation has been instrumental in the telecommunications sector becoming one of the fastest growing sectors in India.

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The Indian telecom industry has been growing at an exceptional rateRate over the last few years. As many as eight million telephone connections, both wired and wireless were added in April 2008, taking the total number of subscriptions to over 308 million.

Mobile subscribers in India (2003-08)

300 No of subscribers(million) 250 200 150 100 50 0 13 2003 33.28 2004 52.22 90.14 165.1 269.3






The total number of wireless subscribers in the country including GSM, CDMA and WLL stood at over 269 million at the end of April 2008 in comparison to 13 million in 2003. India surpassed the US wireless market to become the worlds second largest wireless network after China at the end of March 2008. Declining handset prices and subscription cost, rising affordability, rapidly increasing coverage and the growing concept of multiple ownership is expected to further boost the wireless subscriber base. This figure is expected to cross the 500 million mark in the next three to five
Bangalore Institute of Management Studies, Bangalore 9

years. The overall teledensity was around 25% at the end of April 2008. This is expected to cross 40% by March 2012. The growing subscriber base has positively impacted industry revenues which have risen consistently. Revenues from cellular services are expected to increase by approximately 23%. However, the flipside of the growth in revenues has been the declining Average Revenue Per User (ARPU). The ARPU from GSM subscribers has declined from Rs. 366 per subscriber per month in March 2006 to Rs. 297 per subscriber per month in June 2007 and, 275 per subscriber per month as on January 2008. The ARPU from CDMA subscribers has declined from Rs. 256 per subscriber per month in March 2006 to Rs. 206 per subscriber per month in June 2007 and is Rs. 173, per subscriber per month as on January 2008. Mobile Value Added Services (MVAS) industry. Telecom operators in India face severe competition and with the call rates being one of the cheapest in the world ARPU is declining and the margins are under pressure. To retain customers in a predominantly prepaid, high churn market, to develop alternative revenue streams and to differentiate between themselves, mobile operators are focusing on MVAS for the next wave of growth. MVAS provides incremental revenue to the operators with comparatively smaller capital expenditure. India has thus, developed into one of the fastest emerging markets in the world for MVAS. In India, MVAS revenues are currently around Rs. 50 billion. This is expected to grow rapidly and cross Rs. 80 billion by the end of this fiscal. According to industry estimates, MVAS accounts for around 8-10% of the operators revenue at present. This fi gure is expected to cross 20% in the

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next 5-7 years. The Indian mobile industrys revenues from MVAS are expected to grow at a CAGR of over 45% to cross Rs. 225 billion in 2011. FAST GROWING MVAS REVENUE
CAGR- 45.7%







In addition to supply side drivers (such as the declining ARPU, brand differentiation needs and the growing focus on entertainment related content), demand side drivers such as the booming Indian economy, increasing user comfort with basic mobility services, personalization of content and devices, increasing consumer demand for MVAS, reduction in call rates and cheaper handsets are also driving the growth of the MVAS market.

Bangalore Institute of Management Studies, Bangalore



The Company was incorporated as Onscan Technologies India Private Limited on September 27, 2000. The name of Companyof Company was changed to OnMobile Asia Pacific Private Limited with effect from April 10, 2001. The name of Companyof Company was further changed to OnMobile Global Limited and status of Companyof Company was changed to a public limited company by a special resolution of the members passed at the annual general meeting held on August 17, 2007. Year 2000:The Beginning Incubated atIncubated at Infosys, the initial years went in establishing concept of product space. Year 2002-2004:Product Portfolio Speech-driven products such as ringtones, infotainment, jokes, Ring Back Tones, contests were launched. Year 2005:Innovativeness a the fore
Launched first international customer operaionsoperations

Launched RingBack tones in India Multi-modal service offering such as jukebox, mcommerce, etc. Year 2006:Expanding on all fronts Acquired ITfinity, leading data products company Reaching over 260+ million telecom subscribers Handling over 3500 million calls Expanding in Singapore and Australia. Year 2007:M-Search(voice & SMS)

Bangalore Institute of Management Studies, Bangalore


M-Radio, RBT press * to copy, Mobile investor.

The company is incorporated in India on September 27, 2000 by OMSI, which was an incubated startup of Infosys Technologies Limited (Infosys), to develop telecommunication software applications for the mobile telecommunications industry worldwide. Its registered office is located in Bangalore, India. It also maintainmaintains offices in Singapore, Jakarta and Sydney. In December 2006, it acquired ITfinity, a mobile technology software specialist based in India with an expertise in developing mobile data products. It has recently acquired Vox mobili S.A. to expand its product portfolio in data and to access markets in Europe and North America. See Vox mobili S.A. for more information. It was ranked the top value added services company in fiscal 2007 by Voice & Data, a leading publication for the telecommunications industry in India. According to Nuance Communications, Inc., a leading provider of speech and imaging solutions for businesses and consumers around the world, it had the largest value-added services deployment of speech ports worldwide of Nuance Communications, Inc., in fiscal 2007 and 2006.

Bangalore Institute of Management Studies, Bangalore


It is a leading provider of telecommunications value added software products andproducts and services in India with an expanding international presence, particularly in emerging markets in Asia.

The products are targeted at end-user telecommunications subscribers with an increasing focus on capitalisingcapitalizing on the convergence between wireless and wireline telecommunications services, media content distribution, internet, mobile marketing and mobile commerce.

It has broad range of applications that are delivered by their carrier customers to their end-user subscribers.

They also deliver interactive media solutions to leading media companies, such as tele-voting, interactive programming and mobile auditioning.

Their interactive media solutions are also used by marketing companies for mobile advertising and lead generation. In addition, they provide a range of mobile commerce solutions which enable subscribers to buy movie tickets, railway tickets, topand top up their pre-paid mobile phone cards and pay bills using their mobile phones.


The Company is headquartered in Bangalore and has offices in Mumbai and Delhi in India. It also maintains offices in Dhaka, Jakarta, Kuala Lumpur, London, Paris, Singapore and Sydney.
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The Company's customers include major telecommunications operators in India and in several overseas countries. Some of the customers are as follows: 1. Telecom Operators

In addition to telecommunications operators, the Company also markets its products and services to mediacompaniesmedia companies, corporatescorporate, mobile handset manufacturers, content owners and advertisers. 2. Data Services

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3. Media Houses

4. M-Commerce

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Some of the key performance indicators of the Company are as follows:

o Operator ARPU Uplift o Market Reach

8-12 % 390 million, including more than 100 million in international markets 206 million 36 million 5 billion 27 million 22 million 4 million

o Total unique users o Unique users / month o Calls handled / month o RBT users / month o Phone Backup downloads o On-Device Portal downloads

Bangalore Institute of Management Studies, Bangalore


o Content usage Via M-Search

200% increase

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r products for mobile space


Septembe Incorporation of company and establishment of concepts of 2000 November First customer for telecom value added services 2001 July 2002 October to December 2003 June 2004 June 2004 October 2004 November 2004 October 2005 October 2005 September 2006 December 2006 Launch of multi-modal voice portal platform and applications Addition of three more customers in the telecom sector for speech driven products Launch of multi-modal service offerings such as music jukebox, karaoke and reverse auction Launch of ringbackring back tone application service Launch of services to first international telecom service customer Launch of services for telecom service providers in the public sector Launch of services with first media customer Launch of M-commerce services in India (railway ticketing) Investments by consortium of investors comprising Deutsche Bank AG, Jade Dragon (Mauritius) Limited and Kings Road Investments (Mauritius) Limited Acquisition of ITfinity and their On Device Portal services and products

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July 2007 September 2007 October, 2007 November, 2007

Awarded Top VAS Company of India for fiscal 2007, as per the V&D100 survey conducted by voice and data Acquisition of 100% of the share capital of Vox mobli S.A Acquisition of 51% of the share capital of Ver Se Innovation Private Limited Awarded winner of the Deloitte Technology Fast 50 India 2007 Program conducted by Deloitte Touche Tohmatsu, Asia Pacific

Bangalore Institute of Management Studies, Bangalore


Main objectives of the company

The main objects enablesobjects enable company to carry on the business that is carried on and proposed to be carried on by it. The main objectives areobjectives are as follows: To carry on the business of designing, developing, researching and otherwise dealing or handling all types of telecom products, computers and computer related systems, software systems, hardware systems, communication systems, very large scale standard and semi custom integrated circuits as well as componentsComponents and parts or dealing with all products and services targeted at the enterprise, wireless carrier and m-commerce markets Servicing of all types of telecom and all computer related systems, communication systems, software systems, hardware systems and Manufacturing, designing, developing, improving, marketing, selling and licensing telecom products, hardware, software, firmware and programs of any and all description.

Bangalore Institute of Management Studies, Bangalore



Bangalore Institute of Management Studies, Bangalore



Board of Directors

Bangalore Institute of Management Studies, Bangalore



Managing Director and CEO


Head-M & A Investment and Strategy COO CFO

Head Marketing and production Mgmt

SBU-Head Media

Co-Head International BussinessBus iness and alliances SBU-Head, Public uUndertaking operatorsOpe rators

SBU- Head private operators

Strategic Business unit Head

Co-Head Internationa l Business

SBU-Head, Mobile Marketing

SBU-Head, Data product and services

Bangalore Institute of Management Studies, Bangalore


Managing Director and CEO


Head-M & A Investment and Strategy COO CFO

Head Marketing and production Mgmt

SBU-Head Media

Co-Head International BussinessBus iness and alliances SBU-Head, Public uUndertaking operatorsOpe rators

SBU- Head private operators

Strategic Business unit Head

Co-Head Internationa l Business

SBU-Head, Mobile Marketing

SBU-Head, Data product and services

Board of Directors

Managing Director & CEO




Head M & A Investment and Strategy

Co-Head Internation al and alliances

Head marketing & Production management

SBU Head Media

Strategic Business Junior Manager Business Marketing Manager-Analyst Senior Business Director-Marketing Unit Head Analyst and Sales Marketing & Sales

Bangalore Institute of Management SBU Head Bangalore SBU Head Studies, Co-Head
International Business Public Undertaking Trainees Data Product Sr. Product and Production and services Development manager Development Manager

SBU Head Mobile Marketing Technical Leader


Production Development Leader

Module Leader


Sr. Production Development Engineer

Production Development Engineer

Bangalore Institute of Management Studies, Bangalore


An organizational structure is a hierarchical concept of subordination of entities that collaborate and contribute to serve one common aim. Organizations are a number of clustered entities. The structure of an organization is usually set up in one of a variety of styles, dependent on their objectives. The structure of an organization will determine the modes in which it shall operate and will perform. Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities. These entities are called as departments

Bangalore Institute of Management Studies, Bangalore


McKinsey 7s Model
This model is developed by Tom Peters and Robert Waterman, who have been consultants at McKinsey & Co. This represent the challenges of service marketing, McKinsey developed a new framework for analyzing and improving organizational effectiveness, the 7s model.

Bangalore Institute of Management Studies, Bangalore


Structure Style Strategy Scope Shared valuesStrat egic Intent Skillspeed Stylec ale Staffsequen ce Chart showing McKinsey 7s Model SystemsSub stance

Hard Ss

Soft Ss

The 3 hard Ss are factual and easy to identify. They can be found in strategy statements, corporate plans, organizational charts and other documentations. The 4 soft Ss are difficult to describe since they continuously develop and change as per the needs and wants of organization and also people at work.
1. Strategy: The Company uses competitive strategies, to be one of the

global leading providers of MVAS. The strategies are technological innovation, efficient control on its operation and maintaining good relationship external and internal to organization.
2. Systems: All the formal and informal procedures that make an

organization working are systems. The organization has many functional departments for the smooth running of the company. It also
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relieves the top management from the burden of decision taking, managing and controlling each and every department.
3. Skill: The Skill means the distinct competencies- what the company

does best and ways of expanding or shifting the competencies. Skill is the practical ability one should possess to perform an assigned job. Some of the employees update skills by themselves as per needs and the company also provides certain training and development programmes to meet the required quality. It offers a multicultural environment and encourages people to work in collaboration. Definitely an overpowering ambience, it forces people to put in their best shot.
4. Style: The company follows participative style of leadership. The

work in departments is shared according to the skills acquired by the employees. The employees are made to work in a team and participate actively for the accomplishment of the assigned job.
5. Staffing: The companies strength lies in its employees and the

company looks at strengthening its work force. Recruitment and selection is done on the skills the company requires and people, who think ahead of time; who innovate, The training and development programme is provided for the employees . Performance appraisal is done which helps the employee to know his weakness and to work more on that to overcome that.
6. Shared values: The company main objective is to launch new

innovative products and to become leading providers of MVAS. The employees have a shared understanding of why the company exist and

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these values have a great meaning because they focus attention and provide a broader sense of purpose.
7. Structure: The company has hierarchical structure, which is followed

for control and authority of overall activity.

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Bangalore Institute of Management Studies, Bangalore


HUMAN RESOURCE DEPARTMENT Selecting the right person for a right job is very important. HRD department does this act. The major function of this department is to manage people at work. Managing people not only refers to working but also it includes white collared professionals. Usually the HRD functions will be tailor made to suit the organizational needs. Thus the main objective of HRD is to maintain the cordial relationship by providing the maximum welfare and thereby optimizing the personal contribution to the effecting working of that undertaking. Every organization achieves its ends by a proper utilization of the monetary, material and human resources at its command. While the human resource is only on resource, with which all the other resources are mobilized and utilized to achieve organizational objectives. The human resource management is a set of programmeprogrammed, functions, and activities which is designed and carried out in order to increase the effectiveness of the organization by improving the efficiency its employees.


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Promotion Transfer Welfare and industrial relations Identifying the needs of development Arranging for programs, lectures, etc. Apprentice training is also part of this department Development programs for job rotation coordinating Rewarding employees Counseling employees Canteen maintenance Security maintenance House keeping Transportation RECRUITMENT Investing in people is one of the most important success factors for any organization today. Human resources are an integral and important part of any organization. The Company has put in place sound policies for the growth and progress of its employees. The Company has in place individual performance management systems to encourage merit and enhance innovative thinking among its employees. The Human Resource Portrait of the Company is an interesting

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mix of knowledge, skills, competence and orientation. The key to the Companys hiring and retention strategy is the appreciation of diverse mix of talent needed to execute the Companys business. The Companys hiring spans the whole spectrum of hiring from campuses to bringing on Board employees with proven capability and experience. This ensures that the Company has a judicious mix of experience in its employee base. For the year 2007-08 the Company has added 324 (Full Time Employee (FTE) + Contract) employees (as on March 31, 2007 the employee strength (FTE + Contract) was 519). As on March 31, 2008, the Company had 843 (FTE and contract) employees. TRAINING As the Company continues to scale on the people front, it has focused on enhancing the learning and development opportunities offered to OnMobilians. Training is provided as per the needs of the technology required for completion of the project and according to the requirement of the company. On above this the employees are given lecturing on disciplines and about general topics. In the year 2007-08 the Company has offered 1383 trainee days of domain, soft skill and leadership training programs. RETENTION The Companys future success and ability to maintain competitive position and implement its business strategy are dependent to a large degree on its ability to identify, attract, train and retain personnel with skills that

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enable it to keep pace with growing demands and evolving industry standards. However qualified individuals are in high demand and competition for qualified engineers and personnel in the industry is intense, and the Company may incur significant costs to retain or attract them. The Company follows a rolebased selection process and emphasizes on cultural fit of the prospective employee with its organizational values. As a retention strategy, the Company has issued ESOPs. Further, in order to mitigate themitigate the risk, considerable emphasis is placed on development of leadership skills and on building employee motivation. The retention metrics for the year 2007-08 have been extremely encouraging and positive. The annualized attrition % for confirmed FTE for the year 2007-08 is 10.8%. The Company has seen a dip in annualized attrition % age from 15.9% in 2006-07.

PERFORMANCE APPRAISALL According to the performance of an employee, he is awarded, promoted or demoted by the manager under whom the employee works. Increments in salaries is mainly based on the performance of an individual. Employee Benefits a. Short term employee benefits including salaries, social security contributions, short term compensated absences (such as paid annual leave)

Bangalore Institute of Management Studies, Bangalore


where the absences are expected to occur within twelve months after the end of the period in which the employees render the related employee service, profit sharing and bonuses payable within twelve months after the end of the period in which the employees render the related services and non monetary benefits (such as medical care) for current employees are estimated and measured on an undiscounted basis. b. Defined Contribution Plan: Companys contributions paid / payable during the year to Provident Fund are recognized in the Profit and Loss Account. c. Defined Benefit Plan: Liabilities for gratuity funded in terms of a scheme administered by the Life Insurance Corporation of India, are determined by Actuarial Valuation made at the end of each financial year. d. Liability for Leave Encashment is provided based on accumulated leave credit outstanding to the employees as on the date of Balance Sheet.

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Bangalore Institute of Management Studies, Bangalore










Bangalore Institute of Management Studies, Bangalore


Application development mainly deals with control of the project design obtained from the business analysts during the client interaction. The blue print or the use case obtained from the business analysts, and then the application development manager discusses the planning with the coordinates. Once the co-ordinate team approves the plan, the final outlining will be submitted to directors of the corresponding (planning and designing) for the approval. Once the planning is approved the other members of the application development team will start designing the architecture and the framework for the respective module. This department mainly deals with analyzing, designing and finalizing the planning.

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Quality is the means to attain customer loyalty. Hence involves the responsibility of all the department equally i.e. the production department, testing department, R&D department, application department, and the marketing department.

To investigate customer complaint
To take necessary action to answer the customer complaints. To review service reports of field service and engineers and to

identify chronic problems

To take necessary preventive action to prevent the recurrence of the


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To ensure that all the end products of the unit are verified for the conformation of safety, requirement by the customer and the specifications for subsequent use in production or for dispatch.

Quality policy
To maintain quality leadership in all products and services Total customer satisfaction through quality goods and services Commitment of management to quality To create culture amongst all employees towards total quality concepts Total quality through performance leadership To check the proper functioning of the testing equipments and the records those are to be maintained for the purpose The Company is committed to the eight guiding Quality Management principles of

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1. Customer Focus 2. Leadership 3. People Involvement 4. Process Approach

5. System Approach to Management 6. Continual Improvement 7. Fact-Based Decision-Making and 8. Mutually Beneficial Supplier Relationships.

The Company uses an ISO framework for Information Security and aspires to be ISO 27001 compliant in the near future. The Companys various products/services are subjected to periodic and rigorous assessmentsrigorous assessments by reputed external assessors.

Sales, Marketing and Business Development

The sales, marketing and business development team is responsible for the development of strategic distribution partnerships, alliances and direct sales, including contract negotiations. This team also works closely with existing customers to expand the range of services deployed and grow

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revenue from their subscriber base over the life of the contract the company have with them. Marketing SupportMarketing Support The company has assigned to each customer a marketing team consisting of a key account manager and a team of marketing specialists, who will work closely onsite with customerswith customers marketing teams to identify new business opportunities and define, develop and launch new products and services so as to maximisemaximize revenue. Operations Support They have also assigned to each customer an operations team consisting of an operations manager and a team of operationsof operations engineers, including engineers whom company employ on a contract basis, to assist customerassist customer in rolling out their products and services, monitoring their operational performance and providing operational support.

DirectorIRECTOR MARKETINGarketing and & SALESsales

SR.MANAGER MARKETING MARKETING Bangalore Institute of Management Studies, Bangalore




Bangalore Institute of Management Studies, Bangalore


As of January 31, 2008, company is having 155 employees working in sales, marketing and business development team, of whom 144 were permanent employees.

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Bangalore Institute of Management Studies, Bangalore


Production department is the management of organization productive resource, which converts inputs into organization products and services. A Production system takes inputs like raw material, labor, machines, buildings, technology, money, information and converts them into output. This what is called operational and production and is the predominant activity of production system. The hierarchy is as shown below





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Every organization irrespective of its size and mission may be viewed as financial entity. Financial management is broadly concerned with the acquisition and use of funds by a business firm. Finance to any organization is like blood to human body. Financial management in many ways is an integral part of jobs of managers who are involved in planning, allocation of area which are specialized in nature and which are attended to by specialists. Financial management is that managerial activity which is concerned with the planning and controlling of the firms financial resources. We know that firms create manufacturing capacities for production of goods,
Bangalore Institute of Management Studies, Bangalore 49

some provide services to consumers. They sell their goods or services to earn profit. They raise funds to acquire manufacturing and otheother facilities. Thus the three most important activities of a business firm are finance, production and marketing. A firm secures whatever capital it needs and employs it in activities which generate returns on invested capital. Activities of the Finance department Financial analysis, planning and control. Management of the firms asset structure. Management of the firms financial structure. Increase shareholders wealth. Evaluation of financial performance. Funds requirement decision

Negotiating with banks, financial institutions and other suppliers of credit.

Financial Analysis, planning and control are connected with Assessing the financial performance and condition of the company. Forecasting and planning the financial future of the firm. Estimating the financial needs of the firm. Insisting appropriate systems of control to ensure that the actions of managers are congruent with the goals of the firm.

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Management of the firms asset structure Determining the capital budget. Managing the liquid resources. Establishing the credit policy. Controlling the levels of inventory.

Periodic duties and responsibilities To look for alternate sources of funds. To look for alternate less expensive sources of funds.

Arrange for annual audits of accounts. Review of balance sheet. To exercise the cost control and cost reduction techniques.

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To coordinate with other department in order to achieve the companys objectives.

Functions of finance department Financial accounting. Tax accounting. Cost accounting. Management accounting. Cash management. Capital budgeting. Credit management.



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Accounting for Employee Benefits Defined Contribution Plan. contributions paid or payable during the year to employees provident fund areAre recognised in the profit and loss account. Defined Benefit Plan. Liabilities for gratuity funded in terms of a scheme administered by the Life Insurance Corporation of India are determined by actuarial valuation made at the end of each fiscal year. Provision for liabilities pending remittance to the fund is carried in the balance sheet. Actuarial gain and losses are recognized immediately in the statement of profit and loss account as income or expense. Obligation is measured at the present value of estimated future cash flows using a discounted rate that is determined by reference to market yields at the balance sheet date on Government bonds where the currency and terms of the Government bonds are consistent with the currency and estimated terms of the defined benefit obligation. Leave Encashment. Liability for leave encashment is provided based on accumulated leave credit outstanding to the employees as on the date of the balance sheet.

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During 2007-08, the Company recorded a net revenue of Rs. 2,618.16 million, an increase of 97% over the previous year. The earnings after tax of the Company increased from Rs. 337.20 million in 2006-07 to Rs. 603.10 million in 2007-08, an increase of 79%.The diluted Earnings Per Share (EPS) increased from Rs. 7 per share to Rs. 12, an increase of 71%.

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RESEARCH AND DEVELOPMENT DEPARTMENT The research and development department can be called the intellectual property of the organization which is responsible for tracking mainly the change in technology from time to time. It is also responsible for meeting the customer needs and hence providing the quality. The input for the research and development is from the marketing department, customer requests, change in technology, purchase department. The output will be in the form of the new product and the new version of the existing machines. The output will be in the form of documents and designs which will be one of the inputs to the production department. The research and development department is also responsible for the study of feasibility of the production of the new product.

The purpose of research is to discover answers to questions through the application of scientific procedures. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. Though
Bangalore Institute of Management Studies, Bangalore 55

each research study has its own specific purpose, we may think of research objectives as falling into a number of following broad groupings:

To gain familiarity with a phenomenon or to achieve new insights into it (studies with this object in view are termed as exploratory or formulative research studies) To portray accurately the characteristics of a particular individual, situation or a group (studies with this object in view are known as descriptive research studies) To determine the frequency with which something occurs or with which it is associated with something else (studies with this object in view are known as diagnostic research studies) To test a hypothesis of a causal relationship between variables (such studies are known as hypothesis-testing research studies) India being the main market, the Company is fast expanding in to many other developing and developed markets. The Research and development (R&D) efforts are focused on Reaching out to as many users as possible across multiple channels, given the different capabilities of handsets and networks;

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Making the services affordable, particularly given the low-ARPU and challenging recharge patterns, in the developing markets; Serving a totally-new set of subscribers, who have joined the mobile network; Making the services easy to use, with Localization, Easier Content Discovery and Personalization.

Product Profile

The company provides a wide range of telecommunication solutions which can be broadly categorisedcategorized as follows:

Multi-modal Platform. The multi-modal platform, MMP2500, is the

core platform on which all their applications operate. MMP2500 is a carrier-grade system that effectively integrates multiple delivery modes and payment and subscription options for 2, 2.5 and 3G networks and handsets; and

Application Products. The application products can be broadly

categorisedcategorized into network based in-call solutions,solutions;

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voice based multi-modal portal, WAP and on-device client software applications, interactive media solutions, mobile commerce solutions and mobile marketing services.

Multi-modal Platform, MMP2500 The multi-modal platform, MMP2500, provides carriers with the scalability, flexibility and technology investment protection they need for deploying enhanced multi-modal applications within their networks to their entire subscriber base. The multi-modal platform: enables the rapid deployment and delivery of software applications across multiple delivery modes such as voice, SMS, MMS, USSD, WAP and ondevice software applications, thus fully leveraging wireline, 2G, 2.5G and 3G networks and handsets enables the delivery of applications in multiple languages including 10 Indian vernacular languages

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provides multiple payment options for subscribers allowing them to make payments using their mobile phones by credit card, debit card and direct debit provides multiple payment and subscription models for subscribers including premium access, pay-per-use, pay-per-transaction and time-based models to promote subscribers access.

The multi-modal platform seamlessly combines speech, text and touch input with graphics, text and audio output to deliver enhanced applications and services, thereby improving user experience and encourages greater usage. We have adopted speech recognition technology, which enables users to access services by voice commands in multiple languages, including 10 Indian vernacular languages, as of the primary user interface to meet increasing market demand for simpler interfaces.

Application Products
The application products can be broadly categorised into: network based in-call solutions; voice based multi-modal portal solutions, WAP and on-device application; interactive media solutions;

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mobile commerce and corporate solutions; and mobile marketing solutions. Network Based In-Call Solutions The network based in-call solutions are applications that are deeply embedded within the carriers network infrastructure and integrated into the carriers billing, provisioning, service management, customer care and other core network systems. o Ring back Tones The ring back tone application enables callers to hear ring back tones, which are songs or voice-recorded clips chosen by the subscriber, instead of the traditional ringing sound, while waiting for the called party to answer the call. The ring back tone application enables users to search for and download a rich variety of high-quality ring back content, including a repository of songs, live updates, such as sports scores, news updates or to create their own personalisedpersonalized ring back content. Multiple ring back tones can be customisedcustomized to identify different caller groups or to be played at a specified date or time and can be used in a shuffle mode so that different songs will be played to consecutive incoming calls. They first launched their ring back tone application in 2004 with Vodafone Essar. Since then, they have launched numerous different ring back tone features which have resulted in an increase in the number of subscribers of the ring back tone service. For example, They had approximately 400,000 subscribers of their ring back tones service when they launched the ring back tones for specific members in November 2004. This increased to approximately 2.4 million subscribers in 2005 with the

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launch of their new feature which allows end-users to select songs using SMS and approximately 4.4 million subscribers in 2006 with the launch of auto dialer ring back tone product. In 2007, the companywe launched another advanced feature, Press-*-to-Copy, for ring back tones products, which allow end-users to subscribe for and to set their preferences in an intuitive and easy manner leading to faster market adoption and increased usage of the service, and this resulted in an increase in the number of ringback tones subscribers to approximately 11.3 million. As of June 30, 2007, they have over 10 million subscribers of their ring back tone service resulting in over 2.6 billion calls each month. They believe that the deployments of telecommunications operators customers. ringback tones applications have resulted in significant ARPU uplifts for their

o Dynamic Voicemail and Missed Call Alert Service The missed call alert service is a messaging service, offering multi-modal alerts of a missed call or voicemail received when the handset is in use, turned off or when the user is outside of his or her coverage area. This service allows for users mailboxes to be managed dynamically and is particularly useful in countries where a majority of users are pre-paid. Additionally, the service enables users to quickly access their voicemail as they have the option to navigate and manage their voice mailbox using speech technology. o Voice SMS

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The voice SMS application is a new short messaging service that addresses the limitations of conventional SMS messages such as character limitations and the lack of support for vernacular languages by using voice instead of text. The voice SMS application is easy to use and, compared to SMS, adds an emotional dimension to messaging. It also provides flexibility to users by supporting multiple languages and enabling users to customize the duration of their messages. Users can also review their messages and re-record their messages, have the option of sending their voice messages during non-peak hours and can customise the application to ensure that the voice messages are not sent to roaming recipients. Voice Based Multi-Modal Portal, WAP and On-Device Applications The on-device client software application is a handset-installed solution that leverages the capabilities of subscribers handsets by enabling data services and content to be embedded directly onto the subscribers handsets, so that subscribers can easily access and download data services and content instantly and without continuous network coverage, resulting in simpler and faster navigation, increased personalisation, and an overall improved experience for users. Service providers and customers also benefit as their brands will have a permanent presence on a subscribers handset in addition to revenue from increased volume of transactions as subscribers can access data services and content offline. The on-device application also allows service providers to dynamically publish content on subscribers handsets to ensure a consistent user interface across vendor devices. The voice based multi-modal portal, WAP and on-device portal solutions consist of content-based applications which enable users to access

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and download a wide range of content such as ringtones, mobile radio, music messaging, information and entertainment content such as news, stock prices, sports updates or live commentary and user-generated content such as contests and auctions, find-a-friend and classified advertisements. o Music Solutions The music solutions are geared towards providing mobile users a wide range of content for download and use such as ringtones, song dedications, karaoke-based applications, music messaging, music jukebox and SMS tones. They primarily source for and aggregate content through licencinglicensing agreements with music label companies, royalty agencies and other content providers. In some cases, the customers source for the content directly. Users pay for percentage of the revenue from music solutions through monthly customers. The key feature of music subscription fees or on a per-download basis and the company receive a solutions is multi-channel (with voice as the primary channel), multi-carrier and multi-lingual capabilities and key products include: - Ringtones. They source and aggregate ringtone content from major music label companies and unbranded content from talented local musicians. The ringtone repository is updated regularly to provide users with the latest content. Their ringtone application provides users the option to download ringtones over voice, SMS and WAP and supports multiple carrier technologies such as GSM and CDMA. Musicard. The musicard application allows users to send personlisedpersonalized greetings over mobile phones. Users can record

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personlisedpersonalized messages with a background score of their choice or songs sung karaoke-style by the user. Further, musicard application allows visuals such as pictures or other images to be transmitted to devices with MMS functions. - Music Jukebox. The music jukebox application allows users to access content and services in multiple languages from one place. Users can download songs from music jukebox and set them as ringtones and ringback tones or sing to selected songs in karaoke style, record it and forward it to other users. The music jukebox application supports multiple carrier technologies such as GSM and CDMA. o Information and Entertainment Solutions Subscribers to the information and entertainment solutions can get information in a variety of categories on an on-demand basis. For these services, the company receive a percentage of the revenue earned by customers from the subscribers. By combining voice, SMS and WAP technologies, wethey offer a wide range of information and entertainment products to users: - Sports Updates. The sports update application allows users to get live updates and commentary of sporting events such as cricket, football and the Grand Prix motor racing on their mobile phones. In addition, users can participate in contests, browse other sports-related content and subscribe for scores updates. The content is regularly update and archive to ensure that users can access updates and information even when a live event is not occurring.

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- Stock Updates. provide information on the stock market for all markets of interest to the customers including the latest stock updates, market updates on the top three gainers and losers for the day and basic stock quotes such as last traded price and stock movement. Users can build their own portfolio of stocks using this application and subscribe for daily alerts. - Movie Updates. Users of this application can access movie previews, reviews, sound bytes, movie trivia, gossip and movie updates and browse movie theaters for movie timing. Users are also able to receive SMS alerts of the latest movie releases and purchase movie tickets using their mobile phones. - News. provide news content on a real-time basis in multiple languages accessible by categories such as politics, business or international news. Users can subscribe for alerts with callbacks for breaking news. - Logos. provide a wide variety of logos that users can select and download onto their mobile phones using voice. - Jokes. jokes application allows users to browse, select and listen to jokes with the help of voice commands. Users can send jokes to their friends or submit their own jokes to the company repository. - Devotional Songs. This application gives users access to a repository of devotional songs in multiple languages using voice, SMS and WAP. They provide content related to many of the major religions of the world. - Astro Zone. astro zone application allows users to download personlisedpersonalized horoscopes on the users mobile phones based on astrology or numerology, tips on feng shui and personality analysis. - Audio Streaming. audio streaming solution allows users to receive content of a live event even on a 2G network. Live audio commentary is streamed

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from a web server onto ourtheir in-network platforms and channeled to users. Prior to the introduction of live audio streaming service, users who wanted to receive live content had to install streaming software onto their mobile phones. With live audio streaming solution, the company have moved the streaming software from the handset to their in-network platforms allowing users to access streaming audio content at anytime from any handset.

o User-Generated Content Solutions OurTheir user-generated content applications use on-line content created and published by the end-user subscribers. For these services, wethey receive a percentage of the revenue earned by ourtheir customers from the subscribers. By combining voice, SMS and WAP technologies, wethey offer a wide range of user-generated content solutions to users: - Find-a-Friend. With find-a-friend application, users can search for an ideal friend using their mobile phones. Users create profiles which are securely stored on the company database to protect each individuals privacy. Users can search or browse through the profiles in database on the basis of gender, location and age and can establish contact with a potential friend using voice or SMS. The recipient can choose to respond to or delete such voice or SMS or block a sender. All communications are channeled through customer deployed platforms maintaining each users anonymity. - Contests. contest solution enables carriers, media and advertising companies, corporates and merchants to set up contests for mobile phones

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and wireline subscribers. As part of managed services, the company provide the technology as well as the content for this application. The contests solution enables us, for example, to create a question bank, set up different quiz formats, conduct a post contest analysis of the scores and manage the distribution of prizes to winners of the contests. - Auctions. Using WAP, SMS and dual-tone multi-frequency (DTMF) based support, as well as a multilingual voice interface to ensure a quick and easy bid, mobile auction solution allows users to participate in mobile auctions for multiple products at the same time. Users are notified once an auction starts or when a bid resumes and receive alerts an hour before the auction closes.

Interactive Media Solutions Media companies such as newspapers, magazines, television broadcasters, radio stations and book publishers increasingly want their viewers, listeners or readers to interact with them and actively participate in their programmes using their mobile phones. The interactive media solutions help media companies avoid the huge investment in technology and infrastructure that would otherwise be required to access telecommunications subscribers and provides them with a fast time to market, low investment cost, single stop entry into the market using installed value added services systems and infrastructure and by leveraging existing operational teams and relationships with the major carriers. Media solutions provide media companies with a unique access number which is common to and accessible through most of carrier

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customers. The convergence of mobile and media can be seen in the rise in popularity of reality television programmes, which provide viewers with an increasing amount of interaction between their televisions and their mobile phones through voice or SMS contests, polls and voting. For instance, ourtheir media solutions enable aspiring contestants from all over India to audition for the popular reality television program, Indian Idol, using their mobile phones by simply dialing the assigned number and using ourtheir karaoke feature to sing a selected set of songs for submission. They currently offer media companies access to over 100 million subscribers in India. Revenue earned from the end user subscribers is shared between the carrier, the media companies and us. Mobile Commerce Solutions They have developed ourtheir mobile commerce solution which leverages voice, DTMF, SMS and WAP interaction modes to support payment for goods and services through a carriers network using the mobile phone as a user friendly payment mechanism. Delivered as a managed service, they provide the technology for mobile commerce solutions, perform content and pricing management, source existing credit card or debit card infrastructure to create a secure payment channel and perform new merchant or service integration. The key products of ourtheir mobile commerce solutions are: Mobile Ticketing. The ticketing service, launched in 2006 and currently available for three cinema chains in 10 cities in India, enables users to

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enquire about the price and availability of movie tickets and to book tickets in real time using their mobile phones with SMS confirmation of purchase. Multiplexes such as PVR Ltd, Shringer Cinemas Ltd and INOX Leisure Ltd offer this service to their customers. Pre-paid Recharge. pre-paid recharge solution allows carriers to offer users the option to directly top up their pre-paid cards using their mobile phones at any time and anywhere using their credit cards or through their accounts with selected banks. Bill Payment. bill payment solution, launched in September 2006 with Airtel, allows users to make credit card payments for utility bills from their mobile phone and sends alerts to users when payment is due. Shopping Mall. shopping mall solution, allows users to buy a variety of products such as mobile phones and electronic goods with their credit cards or cash-on-delivery. Mobile Marketing Solutions The mobile marketing solution includes an outbound calling facility designed to send out automated messages about new promotions and offers on products and services to a specific list of users based on the target profile. The mobile marketing solutions enable the advertiser, corporate client or merchant to direct their marketing efforts to a target subscriber group chosen based on a pre-defined set of profile parameters set by the advertiser, and thereby helps the advertiser to avoid wasting a significant portion of their advertising budget on non-target subscribers due to its inability to profile the subscriber.

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When the outbound dialing facility contacts a user and the user is connected, the system becomes an interactive sales tool and information on a product or service can be gathered or dispersed. The solution can be customised so that outbound calls are only made to users who are not on roaming and to remember preferences from the previous calls such as choice of language. The mobile marketing solution is multi-modal and supports multiple interaction modes such as voice, SMS, DTMF and WAP, as well as multi-lingual platforms, thereby creating an easy to use interface for users and an enhanced web-based interface for the customers to create, schedule, monitor and manage promotions.

This is an example to show how the service is provided to the end users. The figure depicts the mobile audio value chain of caller Ringback Tones.

Bangalore Institute of Management Studies, Bangalore


Bangalore Institute of Management Studies, Bangalore



Bangalore Institute of Management Studies, Bangalore



Is to innovate and launch new services which allow consumers to change Change the way they live and interact, via mobile phones.


Bangalore Institute of Management Studies, Bangalore


Vision 2010 -

program, to become one of the leaders in the global MVAS industry is under implementation









telecommunications, value added services market Long-term customer relationships which create high technological and time-to-market barriers to entry for new entrants

Bangalore Institute of Management Studies, Bangalore


Proven track record in bringing innovative solutions to market Blue-chip customer base
They draw significant benefits from its scale of operations and breadth

of products Experienced management and core engineering team

Limited operating history may make it difficult for prospective


To evaluate its business. Narrow business focus.

Carrier network congestion or failures could reduce its sales,

increases increase costs or result in a loss of revenue.

Bangalore Institute of Management Studies, Bangalore


Effective marketing, promotion and pricing of the subscribers service,

by its customers may make aware of applications and services available and to earn more revenue. Proper management of growth increases the profitability and cannot

disrupt the business. In India, the company has long-term relationship with blue-chip

operators, sizable market share, combining with product portfolio, proven ongoing product innovation and ability to scale . The company plans to build on the market leadership in India. The company is fast expanding in to various international markets,

and is already operational in 20 countries. Thus the company is uniquely positioned to grow into one of the leading global providers of MVAS.

As they expand outside of their existing markets, they may face added

business, political, regulatory, operational, financial and economic risks, any of which could increase its costs and hinder its growth.
It face risks associated with currency exchange rate fluctuations They may be adversely affected by new government regulations

implemented for the telecommunications value added services industry in which they operate.
Bangalore Institute of Management Studies, Bangalore 76

They may be adversely affected by changes in technology.

The company offers white label application and services, its revenue

is subjected to uncertainty which is beyond its control. So the company must concentrate on developing innovative products which can attract large number of subscribers. It concentrates on a few major customers which may bring down its revenue in the future. To overcome this it must market to new carrier customers and other target customers. The products developed by the company showed also be affordable by non-metro area subscribers. Its future success and ability to maintain competitive position depends on the skilled employees. So retention of the talent must be taken care. The company main resource is its employees. So, friendly atmosphere in the company and good relationship maintenance is of utmost important .
It must utilize the profit earned efficiently for its expansion of


Bangalore Institute of Management Studies, Bangalore



Organizational Behavior Ashwathappa Human Resource Management- K.Ashwathappa Company Prospectus and reports Journals
Website: www.onmobile.com

Bangalore Institute of Management Studies, Bangalore



Bangalore Institute of Management Studies, Bangalore


Content Owners Develop and own Content. For e.ge.g., music Games. Content aggregator Collect and package different kinds of content suitable for mobile platforms like caller ring back tone, wallpapers etc, Develop and install applications that allow easy access to the content and content free applications. Own the delivery platform and application

Application service provider

Platform Providers

Mobile Operators

provide last mile access allowing the end user Listen, view and download the content of his phone. Bill the customer and pay the content owner, aggregators, Application service provider and platform provider

Bangalore Institute of Management Studies, Bangalore