Business consultancy project

Strategic Planning.

Besides of constituting the new value preposition MFS can also create the additional value for Azercell. The collection of customer payment is being proceeded through different resources. Azercell subscribers are paying bills through online payment portals, banks, or top-up balance by scratch cards.
Figure.47 Share of Payment collection tools 2016-2019 (Jan-Jun)

		payments	corporate direct transfers)			scratch-cards
2016	48.71%	37.06%	5.13%	6.90%	1.12%	1.08%
2017	44.69%	40.64%	5.83%	6.65%	1.34%	0.86%
2018	41.80%	41.49%	5.76%	8.55%	1.57%	0.83%
2019	37.89%	41.85%	6.78%	10.89%	1.84%	0.75%

The above-indicated table demonstrates the share of the money collection data for Azercell in comparison with the first and second quarter of data in the last four years. The proportion from online payment is considerably increasing yearly while scratch card share is declining gradually. It seems that in the last two years, Azercell customers preference has changed towards online payment tools. It was also revealed out from survey results as most respondents indicated the online payment portals and mobile payment applications as the primary instruments for paying mobile phone expenses.
In addition, Azercell has an agreement with all payment collectors for sharing the proportion of the received money. Nevertheless, the money receiver is a merchant who sells scratch cards, banks, or online payment portals Azercell is paying approximately 2.5% as the transaction cost for each received amount

Table.18 Total Revenue and Gross Margin from Money collection (in thousands)

Period (Jan-Jun)	Revenue	~ %	Cost of money collection	Gross Margin
2016	₼ 232	2.5%	₼ 5.8	₼ 226
2017	₼ 243	2.5%	₼ 6.1	₼ 236
2018	₼ 249	2.5%	₼ 6.2	₼ 242
2019	₼ 255	2.5%	₼ 6.4	₼ 249

The cooperation with the bank and the launch of MFS as a new product in addition to generating new value preposition will also reduce the cost of money collection.

6. Process Algorithm

The launch of the MFS project will contribute to making the payment process easier, faster, and more efficient for Azercell customers. The process will be circulated among the three stakeholders accordingly. The service will be available on the Azercell website, and subscribers will be able to use the Azercell website for payment transition or download the application from the website to their phone. The subscriber can fill in the payment balance by any existing top-up channel (see above the table of collection tool) to his/her Azercell number.
The graphic visualization of the process is depicted in Appendix 3. The whole process can be described in the stages below:
Step one - The customer of Azercell is going to make payment for utilities (for instance, gas payment) from the telephone balance. The user applies to either the “Payments” option in the Mobile Application of Azercell or website of Azercell and chooses the necessary type and code of “Utilities” for payment.