1. MIB 2012Sireesh PALLIKONDA Rasha ITANI Karen PORTUGAL Vineet TYAGIConsultancy Management of5/17/2012 Space Capitalization

2. Why Space?Is it just a fascination or business?Yes its more of a business than fascinationWhat are all business that are dependent on the space satellites Internet Irrigation planning Telecommunication Town/ Urban Planning Television and radio Disaster management broad casting Costal and forest Transportation conservation (navigation) Medicine Metrology Tele-reach(education) Agriculture planning Space exploration and Space travel 5/17/2012 3. How does this business works5/17/2012 4. Why Privatization of Space5/17/2012 5. Scope and Depth of PrivatizationScope DepthOnly few countries have the As many as 1,185 satellites arecapabilities of space launchto be built and launched by1. US governments, companies and2. Russia universities between 2009 and3. France 2018.4. UK5. JapanRevenue estimated is $1786. Chinabillion7. India8. Israel9. Iran10. Ukraine Launching a satellite is 12-15% costlier in Europe, and 25-30% more expensive in the US.Russia used to offer launch services at rates comparable with Indiabut not any more. Consultancies helps satellite makers negotiate contracts with get regulatory clearances,besides transporting the communications device to the launch site.5/17/2012 6. WHICH GOVERNMENTS ARE TAKING INITIATIVE5/17/2012 7. 1. A pro-space government2. An established professional infrastructure3. An established base of space, aerospace and high tech industries4. Zero tax on space and satellite business5. Access to orbital slots; and6. Financial incentives and grant aid for businesses which create new jobs on the Island.5/17/2012 8. Operations Operations are considered one of the main zones to focus on. True common language of business, the decision consists of acomplex set of functional components, technical andorganizational.Business Intelligence Software They are divided into main parts Technical: tracking down the position and health of thesatellite at a given point of time. Supply Chain: 5 Ws : Where,when,how,what,who? Opportunities & Revenue Returns.5/17/2012 9. We believe in a parallel approach: Operational Performance Improvements : design of results-oriented projects and programs aimed at effectively realizing gains in terms of customer satisfaction, quality, speed, cost and risk. Operational Performance Foundations : developing the building blocks needed to Operational Excellence focused organization, with the required leadership, ownership, roles & responsibilities, and suitable underlying instruments. Anticipated results5/17/2012 10. Proposed advantages in cost and volumesBefore privatizationAfter privatizationThe cost each launch for telecomThe cost becomes 500 euros for eachcompany Is 1000 euros.launch for telecom company.Telecom companies have to depend on Launch companies will the autonomy togovernment launch stations for theirmarket themselves and increase theirsatellites to get launched. volumes of launch.In a single launch, they orbit one or two In a single launch they can orbit 6satellites and make a profit of 100 euros satellites and make a profit of 1500 euros.Markets were restricted and limited No restrictionsThis gives the competitive edge to thetelecom-companies in reducing the priceof their service and increase the volumeof their customer base.5/17/2012 11. Organization, Systems and Process EUTELSAT is a holding Company, the leading European satellite operator and one ofthe top 3, in the worldWhere the space, telecoms and audiovisual industries converge, EutelsatCommunications is at the heart of the new challenges facing the digital economy withits ability to make broadband facilities available for people to access informationworldwideWide range of services, has become an essential source of high performance andflexibility for telecommunications operators and companies in more than 150countries.Counts with a fled of 28 satellites, operation in 20 positions on the geostationarysatellite orbit, covering Europe, the Middle East, Africa and a large part of Asia and theAmericas.The Group is based in Paris and employs a workforce of 700 people representing 30different nationalities.5/17/2012 12. ManagementCommittee Michel de RosenMichel AzibertCatherine GuillouardJacques Dutronc Izy BharJean Franois BureauCEO Deputy CEOChief Financial OfficerChief Development and Director of Human Director ofFranois Bureau Jean Institutional & Committee ChairmanCommittee Deputy Chairman Innovation OfficerResourcesInternational Affairs Director of Institutional &International Affairs Manuel CalvoFrancesco Cataldo Ignacio Gonzalez NunezYohann Leroy Raphal Mussalian Director of Operations Management of Resources & Chief Risk OfficerDirector of Strategy Director of Sales of Capacity DirectorEngineering Vanessa OConnorArduino Patacchini Ariane Rossi5/17/2012 Director of Corporate Director of Multimedia & Value- Director of Accounting, ControllingCommunications Added Services& Corporate Finance 13. As Consultants: Important information in order to: An adequate communication - Know who to talk Integrated and engage Right people, right time, right place Understanding of supply chain Improve the production process Knowledge of cross cultural differences Loop holes (Weaknesses)5/17/2012 BUILD SKILLS 14. HOW TO BUILD SKILLS Create a pilot team to train them understanding the privatization process5/17/2012 15. Suppliers IssuesShuttle and launch facilities logistics and supply chain will interfere withexisting supply chain of industry targeted for equipment and componentintegration.Satellite and equipment manufacturing suppliers location has to bestrategic from trade point of view to keep additional costs under control.Suppliers will have to adapt to new standards of technologicalrequirements in their equipment. PeopleReligious organizations and their belief towards commercialization of space.People perception and space tourism.Peoples belief and their faith in space technology , success rate so far at 92.7 % per launchEmployees belief towards their organizations new vision in space.5/17/2012 16. EconomyDeveloping economies have keen interest in such projects , number of countrieslike Sri Lanka, Bangladesh and many small developing economies have vision tohave their own launch capabilities.Every dollar spent on Apollo Programme has brought back 15 USD , howeverabsence of chronological quantified data are not abundant.Space sector will create multifold growth on GDP of a economy as mostindustries targeted have to depend on space sector due to recent technologicaladvancements.5/17/2012 17. Competitors What is nature of the added value created against the competitors? Who are the potential competitors? What strategies can be used to establish and maintain competitive advantage against existing competitors Will the offering be superior to alternatives as provided by competitors when they reach the market? WHO LAUNCHES FIRST?5/17/2012 18. Legislation and AuditingThe Outer Space Treaty 1967 The Rescue Agreement 1968The Liability Convention 1972 The Registration Convention The Moon Agreement 1979International Telecommunications Union (ITU) and by virtue of TheCommunications Act2003 (orbit slotting)Technical auditingFinancial auditing 5/17/2012 19. Science and TechnologySatellite once launched with existing technology cannotbe replaced or upgraded.Future advancement will force the technology to changeand hence need of international space stations will arise.Technological advancements and up gradations will beperformed at such space stations followed by re entry toorbits 5/17/2012 20. Industries shiftAgriculturalIndustrialrevolutionRevolutionIT Revolution SPACEREVOLUTION5/17/2012 21. References :http://www.eutelsat.com/eutelsat/eutelsat.htmlhttp://www.eutelsatigo.int/en/eutelsat.php?menu=5United Nations/Nigeria Workshop on Space Law, Abuja, 21 - 24 November 2005LEGAL FRAMEWORK IN SUPPORT OF COMMERCIALIZATION OF OUTER SPACE: THE CASEOF THE ISLE OF MANSpace and Society: Bringing the Benefits of Space Technology to Earth (In Observance ofWorld Space Week 4-10 October)OECD Global Forum on Space Economywww.oecd.org/futures/spacehttp://www.eutelsat.com/investors/documents.htmlhttp://www.eutelsat.com/news/compress/en/2010/pdf/PR3510-Annual-Results-2009-2010.pdfhttp://www.gao.gov/assets/120/111523.pdfhttp://www.gov.im/ebusiness/spacesector.xmlhttp://www.youtube.com/watch?v=cfSaztUiw5s 5/17/2012