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Telco digital transfomation view by Exacaster 2019

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Telco digital transfomation view by Exacaster

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Telco digital transfomation view by Exacaster 2019

  1. 1. Jolita Bernotiene I Sales Director www.exacaster.com Telecom industry in focus
  2. 2. Technology is driving connectivity demand and increasing volumes of information • Ever since smartphones arrived the appetite for connectivity has been growing exponentially • The arrival of 5G promises a dramatic reduction in the cost of 1 megabyte and aims to create a super network that replaces wifi, traditional mobile, and specialized networks such as those used for sensors. • AI and Big Data technologies have matured and are ready to hit the mainstream, promising new capabilities to track, process and utilize information collected. 43 73 144 242 366 516 701 2015 2016 2017 2018e 2019e 2020e 2021e ‘000 petabytes (1 petabyte = 1m gigabytes) Global mobile data traffic1 How to pay back the 5G investment is a hot topic in the industry
  3. 3. Sha Despite traffic growth the telecoms has not increased its economic weight due to faster expansion of digital players Sources: 1. Vodafone-full-annual-report-2018. 2. https://live.ft.com/Events/2018/FT-ETNO-Summit-2018?=&v=5850414205001 TELECOMS The major competitors to telecoms are global digital players: • Messaging - Facebook (Whatsapp, Messenger), weChat • International calling - Skype • Video on demand - Netflix • Internet of things - Amazon Alexa REST OF INDUSTRY Share of economic growth2 2005 - 2010 2011 - 2016 47% 4% 49% 42% 21% 37%
  4. 4. Telecoms are facing pricing pressures and overall slowdown 116 85138126 101 129 443 329 186 292 199 207 Central, Eastern Europe Latin America Middle East, Africa Western Europe Emerging Asia-Pacific Developed Asia-Pacific North America 395 435 CAGR 2008 2015 Telecommunications market size, billion USD Note: M2< revenue excluded Source: Analysis Mason; McKinsey analysis -4% -4%-4% +4% +7% +1%+1%
  5. 5. Seismic changes have shaken up consumption trends • Mobiles are the most popular device today • Time spent on digital services is constantly growing. More than 2 hours per day is dedicated to social media alone • Customer expectations have been completely reshaped by the digital players
  6. 6. What customers expect from telecoms? Effortless purchase Excellent e-care with a choice of support channels A variety of emotionally appealing services Constant connectivity Seamless experiences through multiple services Transparent pricing and low cost
  7. 7. Inresponsetothesechangesthetelecomsmarket isundergoingalongtermdigitaltransformation Telecoms will face tough choices in the next 5-10 years and will need to start their path to one of the five destinations:1 DP OP SDP Service centric Dumb Pipe wholesaler Outmoded Player expensive and non-competitive Smart Digital Pipe partnerships as key leverage Integrated Digital Services Provider global scale and brand power Services Player no physical infrastructure, pure OTT Infrastructure centric IDSP SP
  8. 8. Native and partner product portfolio 10 native products 10 native products 100’s of cross-sell products 1000’s of digital OTT products Consumer ownership No Yes Yes, multifold number of touchpoints Yes, flood of touchpoints Network infrastructure Yes Yes Yes Yes No Business scale Local Local Local Global Global Potential of business impact Decreasing or stable revenue Up to 1280 bn USD value for the industry during 2016-20251 Over1trillionUSDofpotentialliesoutsidethecoreservicesportfolio, butonlythosetelecomswhochangewillbeabletoclaimit DP OP SDP IDSP SP Dumb Pipe Outmoded Player Smart Digital Pipe Integrated Digital Services Provider Services Player Source: 1. World Economic Forum 2017 Telecom Whitepaper: http://reports.weforum.org/digital-transformation/wp- content/blogs.dir/94/mp/files/pages/files/white-paper-dti-2017-telecommunications.pdf
  9. 9. Telecomswillhavetocarryout10majortransformations Transformation to execute Data Pipe Outmoded Player Smart Digital Pipe Integrated Digital Services Provider Services Player 1. Autonomous virtual infrastructure 2. Security centric 3. Data centric 4. Open platform API architecture 5. Digital organization and culture 6. Multiple business models 7. 360°omni channel customer experience management 8. Multiple channels to market 9. Diverse portfolio of services 10. Open ecosystem of partners O - Optional R - Recommended M - Mandatory Digital transformation focusCost cutting focus Source: 1. Transforming the Telco. Martin Creaner. 2018. P159. RR R RR R R R R R R R R R R OO O O O O R O M M M M M M MM M M M M M M M M MM M M M M M M M
  10. 10. Open ecosystem of partners 360°omni channel CEM Diverse portfolio of sevices Data centricity Source: 1. Transforming the Telco. Martin Creaner. 2018. P55. 2. http://reports.weforum.org/digital- transformation/wp-content/blogs.dir/94/mp/files/pages/files/dti-executive-summary-20180510.pdf, P46. 4 transformations that impact customer experience management promise 750-840 billion USD of new value creation1, 2
  11. 11. How to understand the real needs of customers? How to integrate data regarding products and services of digital partners? How to detect the opportunities in a customer base? How to use data to enable excellent experience and e-care? Data centricity creates the foundation for customer centricity How to automate and optimize recurring decisions?
  12. 12. A single 360° customer view enables omnichannel excellence • Unify customer data collected from different siloed systems • Match customers in the same household by uncovering their relationships • Leverage AI and automation to build hyper-personalized offerings Social Media OTT usage Digital channels & interactions Purchase & billing Traditional service usage Digital service usage Interests (content, music, etc.) Quality of service Location Satisfaction Customer care data Device • Identify the customer across multiple business lines • React to changes in a customer’s profile in real-time • Speed up and increase the volume of experimentation Tasks to be done:
  13. 13. Data and customer centric organizations can gain significantly even within the scope of traditional services Sources: 1.https://www.mckinsey.com/industries/telecommunications/our-insights/a-new-path-for-telco-customer-engagement 2.https://www.mckinsey.com/business-functions/mckinsey-analytics/our-insights/achieving-business-impact-with-data Drive customer value by personalizing outreach and cross-selling increase in revenue from cross-selling1 Drive customer value by reducing churn and growing advocacy absolute churn reduction1 less marketing budget2 2 Optimize spend by reducing marketing costs3 1 15-30 % 15-40 % 5-10 %
  14. 14. Infotainment services Mobile financial services Advertising, e-commerce Enterprise cloud TV and video service Enterprise mobility Smart home Smart city Unified communication Security services Health services Digital identity services While preparing to unlock revenue potential from an ecosystem of partners New challenges: • Partner network management • Partner data integration • Sales & marketing of partner services, while widening of number of use cases, adding new customer types and pricing models Note: partners list is based on EY Global telecommunications study: navigating the road to 2020 How to respond to customer needs across hundreds of new touchpoints?
  15. 15. Data centricity 360° omnichannel customer view Diverse native and partner services portfolio Wehelptelecomsaccelerate digitaltransformation byenabling
  16. 16. Jolita Bernotiene Sales Director +370 636 06360 jolita@exacaster.com Let‘s get in touch. We talk telco language! Our Headquarters B NORDIC 26 Business Factory Basanaviciaus st. 26 Vilnius, Lithuania, EU www.exacaster.com

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