Becoming a Digital Business

21 January 2020

The Telecommunications Industry is continuously evolving

21/21/2020 Microsoft Confidential

Three key waves of competitive advantage and

market differentiation

✓ In the early years, the key

competitive advantage and market

differentiator was network coverage

and quality

✓ As the market matured, network

coverage became ubiquitous for all

operators and decreased in

strategic competitive advantage

and differentiation

✓ IT was primarily a back-office

function

Network Coverage

Product Bundling

Digital

✓ Increasingly Product Bundling

replaced Network Coverage as the

key competitive disadvantage and

differentiator

✓ Bundling allowed for greater

customer micro-segmentation and

personalization

✓ Increasing bundling of telco and

non-telco products – especially

content

✓ Rapid rise of micro-transactions

✓ IT transition from back-office to

central component of competitive

advantage

✓ Evolution to a Digital Business

✓ Everything on-line and real-time

✓ IT at forefront of Digital Transformation

✓ Evolution to a “Platform Economy” and

increasing use of APIs

✓ Channels / Customer Touch Points

transformation to digital (e.g. Mobile

Apps; Conversational Commerce)

✓ Accelerated use of Cloud and SaaS

technologies

✓ Growth in data driven by content

consumption

✓ Digital Services and Ecosystem

Collaboration (e.g. 3rd party content,

OTT partnering, IOT)

✓ Increasing importance of Big Data

(Data Lakes)

✓ Blending of IT and Networks –

everything is software

Enterprise Technologies are converging around the theme of a Digital Business

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MobilityHow things are

consumed

CloudHow things are

delivered

Big Data Analytics

How insight is created

SocialHow things are

discovered

Digital Business

Becoming a Digital Business is not just digitized marketing or digitized operations – it will be essential for survival

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Digital Business: an

organization that incorporates

digital technology to create

revenue and results via

innovative strategies, products,

processes and experiences.

Digitize: applying technology to

resources. A digitally enabled

sales force is an example of

incremental digital improvement.

Digitalize: the process for

turning digitized resources into

new sources of revenue, growth

and operational results that

generate a premium to your

business.

Internal Focus

External

Focus

Digitize Processes

Revenue

Profit Margin

Digitize

Channels

Digitize Marketing

Digitize

Operations

Digital

Business

Digital

Transformation

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❑ Buyers no longer enter a channel

but, are continuously in the

channel.

❑ Content beyond the brand’s

control is everywhere, most

insistent and ever more influential.

❑ “Evaluation”, not purchase, is now

the focal point. Consumers are

constantly exposed to re-

assessing their choices.

❑ They can compare and evaluate

more easily brand promise versus

delivery, and how it matches up to

their needs.

❑ Different segments respond in

different ways to these shifts,

moving at own speeds and along

distinct pathways

❑ Faced with endless evaluation,

they also develop distinct

behaviors: some may buy by habit

or emotion, others ‘delegate’

decision-making.

Customer Behaviors are changing

Fundamentally must rethink Operation, and become “SEAMLESS”

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• Customer experience must be seamless across call center, stores, online, mobile, social and other emerging channels.

• Operations must be seamless in terms of selling to, servicing and billing customers by integrating business processes, organization structures and shared incentives across channels.

• Platforms must be seamless as new disruptive technologies such as mobile, social, cloud, big data, etc. come into play.

Platform versus Aggregator

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Telecom

Products &

Services

Video Music Advertising Voice Gaming Shopping

Connected Cars

Connected Health

Connected Agriculture

Connected Factories

Connected Public Works

Ag

gre

gato

r

Microsoft

Cloud

SecureTrustedIntelligent

Pla

tfo

rm

Microsoft’s Digital Feedback Loop

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Microsoft’s Worldview

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Serverless

Artificial Intelligence

Multi-device, Multi-sense

Intelligent Edge

Intelligent Cloud

Azure Stack | Azure Stack HCI | Azure IoT EdgeAzure IoT Gateway | Azure Stack Edge | Azure Sphere

Latency is the new currency

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PaaS

IaaS

Edge Devices

PCs / Tablets,

Phones & IOT

Hybrid (Cloud) Computing

Core Networks

Hyper-Scale

Datacenter

Regions

Telco

Datacenters

Central Offices

Multi-access Edge Computing Network Edge Computing

Access Networks

Azure Managed EdgeAzure IOT/ Edge Devices

Tenant

Platform

Intelligent Edge

Azure

Intelligent Cloud

1. IT (BSS/OSS, M365/D365)

3. Media 4. Gaming/xReality

2. IOT & Connected Things and Digital Ecosystems

5. AI & Data Analytics

6. Network 4G/5G (NFV/SDN/EPC) & Service Orchestration (ONAP)

Six Primary WorkloadArchetypes

Microsoft Confidential

Telco Workloads

Convergence of Hyper-Scale Intelligent Cloud and Edge

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Microsoft

Azure

Regional

Datacenters

Azure City/Area

Datacenters

Azure Stack Edge

Azure Edge

Billio

ns

of

En

d P

oin

ts

Regional Hyper-ScaleCityEdgeFar Edge

Communications Technology (ICT) Information Technology

Azure Stack Edge

NEC - Network Edge Compute

MEC - Mobile Edge Compute aka

Multi-Access Edge Compute

5G, Fiber

Radio

Acc

ess

Netw

ork

(R

AN

)

WiFi

Converged IP Packet Transport Network

Azure Edge

Telco

Microsoft Platform Cloud and Telco Networks

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Azure Sphere

Convergence of Hyper-Scale Intelligent Cloud and Edge with Telco 4G/5G

Telco Digital Transformation w/Microsoft

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HoloLens

Cortana Intelligence Suite and Cognitive

Services

Azure IoT

Autonomous solutions

Azure &

Azure Managed Edge

Machine Learning, Stream

Analytics, and Edge analytics

Trusted | Secure | CompliantExtensive partnerships across

digital ecosystem

Platform interoperability

across the cloud continuum

Vertical integration | Horizontal integration | End-to-end engineering

Operational

excellence

Modern workplace

Customer

experience

New revenue streams

Microsoft Confidential