BT 2007 Annual Report Download - page 10

INTRODUCTION TO THE BUSINESS REVIEW
BT is one of the world’s leading providers of communications
solutions and services operating in 170 countries.
We are committed to increasing shareholder value by
transforming the customer experience through service
excellence, by the effective management of our strong brand, by
exploiting our large-scale networks and by delivering exciting
new services to our existing customer base. We aim to find new
and mutually rewarding ways of engaging with around 18
million customers to capitalise on the possibilities of
convergence, to offer global reach combined with the service
values associated with local delivery, and to continue to provide
innovative services and solutions.
Our principal activities include:
rnetworked IT services
rlocal, national and international telecommunications services
rbroadband and internet products and services
rconverged fixed/mobile products and services.
We have had ISO 9001 certification (the international quality
management system standard) for most of our operations in the
UK and worldwide since 1994.
Our policy is to achieve best practice in our standards of
business integrity in all our operations, in line with our published
statement of business practice – The Way We Work – and we
are committed to enhancing our positive impact on society
through leadership in corporate social responsibility and by
doing business in a sustainable way.
OUR OPERATIONAL STRUCTURE
BT has four customer-focused lines of business: BT Global
Services, BT Retail, BT Wholesale and Openreach.
BT Retail, BT Wholesale and Openreach operate mainly within
the UK, where BT is the largest communications services
provider to the residential and business markets, supplying a
wide range of communications products and services, including
voice, data, internet and multimedia services, and offering a
comprehensive range of managed and packaged communications
solutions.
BT Global Services provides a range of products and services,
including communications, networked IT and consultancy
services to address the needs of major corporations,
governments and multi-site global organisations.
In April 2007, we announced a new structure, which includes
two new business units and is designed to enable us to deliver
faster, more resilient and cost-effective services to customers
wherever they are. With effect from 1 July 2007, BT Design will
be responsible for the design and development of the platforms,
systems and processes which will support our services; BT
Operate will be responsible for their deployment and operation.
Around 20,000 BT employees – from design, operations, IT and
networks – will move into these new units. We believe that
these changes will keep BT ahead of the game.
Our customers
BT GLOBAL
SERVICES
BT WHOLESALE OPENREACH
BT GROUP
BT DESIGN
BT OPERATE
BT RETAIL
(with effect from 1 July 2007)
OUR STRATEGY
Our strategy is to:
rpursue profitable growth in new wave markets
rdefend our traditional business
rtransform our networks, systems and services for the
twenty-first century
rcreate long-term partnerships with our customers.
The successful delivery of this strategy depends on the
commitment of all BT people and our continued ability to
manage their development and reward them.
For the 2007 financial year, the KPIs (key performance
indicators) against which we measured the success of our
strategy were earnings per share before specific items (see
Earnings per share on page 42), free cash flow (see Financing
on page 43) and customer satisfaction (see Improving customer
satisfaction and service on page 18). From the 2008 financial
year, customer service replaces customer satisfaction as a KPI.
Pursue profitable growth in new wave markets
In the 2007 financial year, 36% of our revenue was from new
wave activities – primarily networked IT services, broadband and
mobility – up from 32% in the 2006 financial year.
2400
2000
1600
1200
800
400
0
New wave revenue (£m) per quarter
Develop our global networked IT services capability
Our networked IT services strategy is to reinforce BT’s position
as a global player competing alongside the world’s best in
selected markets. We continue to develop broader and deeper
capabilities around the world. Our portfolio of services includes
managed network services, systems integration, IP infrastructure,
CRM (customer relationship management), security applications,
managed mobility, hosting and outsourcing.
Report of the Directors
Business review
BT Group plc Annual Report & Form 20-F 9
Report of the Directors Business