A change of mindset: ROI is king, rather than the price tag

Friday 17 May 2019
A change of mindset: ROI is king, rather than the price tag

Article

Let me try to make this article as personal as possible so that I may share my view on this important topic, as it is close to my heart. I started my Newtec career in Berlin, Germany, around 15 years ago. I am now located in Luxembourg, even closer to the heart of Europe. During that time, I have seen the company expand and evolve and take on the changes and challenges that have occurred in the satellite industry – and there have been many! Newtec has transitioned from a company that purely sold products based on pitches that pushed features to one that sells solutions with additional values and benefits for customers and end-users. As a result, the price of those systems has become less important, but the benefits that they bring, have become a priority.

Don’t get me wrong, price is obviously still an important factor, especially in price-sensitive markets. However, what seems to be more important is the ROI that customers get from the solutions they purchase. When a customer buys from Newtec, they don’t simply buy a product, they also buy into an ecosystem. There is more of a realization from the customer that they need to think long-term. Will the product scale to grow with their company and business? Will it be flexible and agile so it can change as their and their customers’ requirements change? Thinking of price alone will not address these issues and will lead to expensive upgrades or switching out equipment in the future.

DVB-S2X already in action based on Newtec’s technologies promoted in several live demos via various satellite operators and a press conference

June-September 2014, DVB-S2X already in action based on Newtec’s technologies promoted in several live demos via various satellite operators and a press conference together with today’s DVB Project Head of Technology Peter Siebert in Singapore during CommunicAsia.

Innovation

Newtec is a cutting-edge company that has always placed itself at the forefront of innovation. We have been involved, for many years, in industry associations. For example, our work with the DVB Group (which develops digital broadcasting standards) has led to the formulation of the latest satellite transmission standards. Newtec played a key role in the development of the DVB-S2 standard and we have also further advanced this to create the DVB-S2X standard, for example, which is implemented across all of Newtec’s modulators and modems and that can used across all of your applications that we serve: mobile backhaul, VSAT, broadcast, government and defense and mobility including maritime. In fact, Newtec offered the technology for the extensions before they even got to market with our customers benefiting from the efficiency gains right from the start.

At Newtec, we also realize that the market is changing and that we are moving towards a new connectivity mix where hybrid connectivity is the future. We see broadcast and broadband merging and we are prepared. We are already immersed in 5G and, as you will see in this newsletter, we are working on network virtualization to facilitate 5G over satellite. We are also focused on the move to the Cloud, which we see as being a critical part of our path forward.

The launch of the “bePART”Program.

Right: The launch of the “bePART” Program. Left-Right: Claus Peeters, Global Channel Director; Richard Schaap, Market Director, Broadband Access, Executive Director Business Development; Kerstin Roost, Strategic Partnerships Operations Manager
 

Listening to the Ecosystem

As a company, Newtec is part of the entire satellite ecosystem and some of us spend a great deal of our time listening to the different parts of that ecosystem. We interact with our customers, our partners and, of course, we also listen to the end-users and follow market trends very carefully. With the right balance, we use this information to develop new solutions to bring to the market. We have learned that, by working as a team, we develop the solutions that the market really needs, today and tomorrow.

Our Certified Partner Program

In 2011, we introduced a new go-to-market strategy that strongly involved our added-value partners in the business. Newtec’s Claus Peeters (left in the picture), our Global Channel Director, pioneered the idea and drove it forward. I remember CommunicAsia 2011 very well, where the new Business Partner Program, “bePART”, was announced with a global launch at the IBC Show later that year. It has been successful ever since.

The whole idea of the program is to empower our partners by combining their local market knowledge and expertise with our products, support, dedicated training and marketing tools in a devoted partnership, which in turn increases their business and revenue. We give our partners access to new markets and sales opportunities as they expand their product portfolio with Newtec’s products and solutions; while they manage their own sales force who can easily identify opportunities. We offer a plethora of tools and training to equip our partners.

Whilst the Partner Program started out with an emphasis on the broadcast side of the business, where our expertise started to grow, we have seen the program evolve as Newtec has. Today, we have a true blend of over 100 partners from all over the world that specialize in different areas. We have many more partners that offer connectivity and that focus on Internet connectivity connecting rural populations and businesses in Asia, for example.

Partner Training on Mobile Backhaul and Enterprise Connectivity in South Africa

Partner Training on Mobile Backhaul and Enterprise Connectivity in South Africa, April 2019
 
Dubai 2018, Mena Nets’ Managing Director Mazen Nassar (right) shakes hands with our Global Sales VP Steve Mills joined by Newtec’s Bernard Paquet,
Dubai 2018, Mena Nets’ Managing Director Mazen Nassar (right) shakes hands with our Global Sales VP Steve Mills joined by Newtec’s Bernard Paquet, Global Channel Support & Sales Operations Manager, as part of our continuous work to achieve more and serve our customers better
 
John Stoltz’ words summarizing their MAVERICK product success based on Newtec Dialog
 
Proud of our certified Newtec partner Network Innovations’ John Stoltz’ words summarizing their MAVERICK product success based on Newtec Dialog at our SATCOM HUB at NAB 2019. Their team has made other impassioned presentations at various tradeshows including outside live demos.
 

The Proof that ROI Presides over Price - India

For me, the importance of the relationship with our strategic partners, including our added-value partners, cannot be underestimated. To give an example, I know the Indian market well, having spent quite some time in this country. It is a price-sensitive market (one which is not so much these days), yet one where people are also driven by quality. It is a country where bandwidth is at a premium. Therefore, efficiency is key to either saving bandwidth or doing more with the available bandwidth.

Despite the market’s price-sensitivity, a leading Indian broadcaster made the decision to switch their entire network over to Newtec’s satellite broadcast technology. In doing this, the company managed to achieve their ROI in just a couple of months, which is very impressive. As PR Director at the time, I was very keen to make a public announcement out of this great news, yet the customer refused to talk about the ROI they had achieved because this may give their competitors an advantage. I thought this was probably the biggest compliment we could ever have received!

We continue to do great work in India with a great team in place now. You can see, in the artilce "Newtec enhances DISHTV’s Direct-to-home Efficiency in India" the work we have done with MediaKind and DishTV, that has also switched to Newtec to enable bandwidth efficiency across the Indian market. It’s another example of ROI winning over price. You need to see the bigger picture of future-proofing your business and seeing technology as an investment in terms of the OpEx reduction, not just the immediate CapEx. I know, it is not that easy, and it needs a mindset change , but the benefits it brings in the long-run will be completely worth it.

Holding The Winning CardsHolding the winning cards

I have just got back from the NAB show in Las Vegas. As you know, this is a place where you can gamble your money and, if you are in the right place at the right time, you can walk away with a return. However, you can also lose it all.

If you play the right value cards, you can win almost every game. Let’s win together!

See the cards as a symbol. Newtec can give you the cards you need to play and to win through our innovation and our partners. By using Newtec, you can be safe in the knowledge that you are part of a network that will ensure you receive an unmatched solution. When you buy Newtec or a service based on the Newtec technology, you do not simply buy a product but the benefits around it, giving you a complete package of services that ensure you can access everything you require to make the solution work for you – today and tomorrow. By looking at the bigger picture, customers can go on saving money well into the future and be assured of support and care throughout their entire journey with Newtec.

Let’s win together!

 

This article was also published in Newtec's latest NEWTEC NEWS newsletter next to other trend topics from the industry and all news around Newtec, our solutions and products.

Read the May 2019 issue here.

 

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