Working with the bests to deliver the best
Wednesday, 27 June 2012
We spoke with Angel David García Barrio, Head of Alliances & New Business, Global M2M, Telefónica Digital, and David Vellender, Head of M2M Business Development UK&Ireland and Commercial Partnerships, to shed some light into Telefónica’s strategy when it comes to deal with partners and establish alliances.
The need of delivering simple and reliable solutions is what drives the companies to make deals between them. As Angel David García Barrio, puts it: “nobody can go out there and deliver a product on its own”.
Telefónica is not an exception: in the lasts years, the company has been establishing a number of alliances with powerful players of the M2M industry, such as Jasper wireless or China Unicom. The reason behind the creation of these alliances is that, as a company, it only works a part of the value chain, and needs partners to deliver a complete solution.
“The more complex a solution is the more support we need along the value chain”. Telefónica has a role in the M2M business, but there are other companies taking other roles in the value chain:
Telefónica's place inside the value chain, and how the company aproaches the other steps with alliances.
As a telecommunications provider, Telefónica’s core business operates in two steps of the chain: network connectivity and M2M service platform , providing connectivity to all the devices inM2M solutions. However, the intention is not to act just in these parts of the value chain.
Telefónica aims to “deliver a complete end-to-end solution”. Angel David makes very clear that to achieve this, “we have to ally ourselves with the best specialists along all the steps of the value chain. We develop solutions working side by side with our partners along all the process to create and deliver specific final products for each vertical to fulfill the diverse customer needs”.
Do you have what it takes?
According to Angel David, when it comes to looking for a partner, “it depends of the solution we want to create. We usually look for either big partners –multinational with big coverage- or very specialized partners ” to deliver either a solution with a large geographical scope or for a very specific vertical”. “In some cases, a M2M business model is so specific it doesn’t even exist, and you have to inquire and research who would be the best partner for that model”.
David Vellender explains the traits a partner is required to have to be able to work with Telefónica: “The first thing to look at is the strength of the solution itself. Then, there is the credibility of the partners, which has have an equal standing in their marketplace to Telefónica. And the third requirement is the availability to establish new channels from it, to engage new customers.”
One of the companies that met these three requirements was Telit. So back in February, during the Mobile World Congress, Telefónica and Telit announced a partnership aimed to offer the premium value-added services, customer support, module innovation and global connectivityto medium and large companies
This product is a first-of-its-kind bundle in the industry that implies great value: “When an m2m solution is being made, people spend most of their time in the development phase, designing the module and the application. Then, you have to find a telecom vendor, which takes more time, then make further changes... our bundle aims to avoid these delays, because you can do all at once to speed up the route to market”, states David.
This agreement fits one of the main goals of Telefónica’s strategy in the matter of partnerships. As explained by Angel, this is nothing less than “to create a partnership ecosystem, in which we collaborate not only with the biggest companies, but also help smaller one to commercialize their products. This way, we help to develop and mature the market”.
Big clients rely on big alliances
Companies wanting to implement M2M in their business are actively looking for strong, reliable solutions delivered by companies with an important footprint. A great name and great allies means Telefónica can get great customers, as it was the case with Onstar.
Onstar is not only a client, it is also a partner in the sense that he aims to gain ground outside North America and we aim to support them with our product.
Jasper Wireless, Telit, Avea, China Unicom, Masternaut… the list of partners is constantly growing with one goal in mind: to deliver the best solutions and get the best clients. “We need support along all the value chain; we need the best module vendors, SIM providers, app developers… if we want to achieve our goal of delivering the best end-to-end solution”.