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Managing Director – Accenture Digital & Innovation Lead in MENAXavi Anglada
Building the ecosystem to capture the 5G opportunity through innovation
@xavianglada
20th January 2020
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Will 5G be a material value contributor to Communication Service Providers by 2025?
https://www.sli.do/
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Event number: DTME2020
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What do CSPs need to do to capture the potential of 5G (one word)?
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Event number: DTME2020
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Do you have an IT architecture that enables your company to easily integrate with external partners?
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Event number: DTME2020
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5GA BRIGHT FUTURE FOR CSP PLAYERS
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Services-driven approach to 5G architecture with a wide range of possible use cases
Massive machine type
communication
Critical Massive type
communication
Massive Broadband
10 years on battery
M2MUltra low costs
10-100xMore devices
>10 GbpsPeak data rates
<1 msRadio latency
Ultra reliability
10 000xMore traffic
100 MbpsWhenever needed
(Low power) Wide area Crowd Ultra-dense Outdoor
# of devices | cost | power
A trillion of devices with different needs GB transferred in an instant Mission-critical wireless control and automation
Capacity for everyone
3D video 4K screens
Work in the cloud
Flexibility for the
unknownSmart city cameras
VR gaming Industry 4.0
Sensor Network
Mission criticalbroadcast
Remote control of robot
Autonomousdriving
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5GIS THE FUTURE REALLY BRIGHT FOR CSP PLAYERS?
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0
2
4
6
8
10
12
2009 2014 2020
4G was expected to be the next growth avenue for CSPs but Digital/OTT players captured the lion share of the value
Leading Telcos Top tier OTTs
2009 – 2020 Market Capitalization
Source: Accenture Research analysis
3 x
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Source: Company information, Accenture Research analysis
Telcos are not exploiting B2B potential as digital natives do
B2B revenue contribution to total revenues is extremely varying within Telcos (12% in Verizon vs 45% in AT&T, respectively 2nd and 3rd worldwide largest telecommunications company)
Digital natives such as Amazon (with AWS) and Google are clearly the B2B revenue growth leaders recording growth rates of over 40%
Key Findings
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#1 Spectrum Availability with a sustained business case
#2 Strategy Use Case and new investment models on adjacent verticals
#3 Network Deployment Approach designed to accommodate millimeter wave frequencies regulatory
#4 Device Innovation and Technology Breakthroughs pushing for latency under 1ms
#5 Architectural and Platform Innovation rethink the operating models
#6 Operational Complexity merging IT arch and e2e operation becoming service based
To capture the 5G opportunity is necessary to anticipate these challenges:
5GCHALLENGES
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UNDERSTIMATING 5G DISRUPTION POSITIVE 5G OUTLOOK
53%
of technology and business executives believe the are “very few” things 5G will enable them to do that they can’t already do with 4G.
37%
only 2 in 5 executives expect 5G to provide a revolutionary shift in speed and capacity
72%
of executives need help to imagine the future possibilities and use cases of 5G
of executives believe that 5G will cover nearly all the population by the year 2022
60%believe that 5G applications will give them a competitive edge with customers.
70%
5G is starting to be seen as a game changer…But a deeper understanding of 5G’s potential is still patchy
Source: Accenture 5G Realised Disruptive Potential of 5G Technology
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The opportunity and the need are there: Disruption is an inescapable and growing challenge for all industries in the Middle East
Sources: Accenture Research Disruptability Index 1Total sample = 277 based on publicly listed company data
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Executives and companies are aware of the threat and not prepared… The concern is growing
are unsure or dissatisfied that their company’s innovation efforts will position them well to overcome future disruption
71%
increase in mentions of disruption by c-suits over the last 3 years has increased 6 fold
6x
of companies continue to compete in their legacy business, using traditional approaches or transforming new business
2/3rd
73%27%
Incremental Disruptive
Respondents indicating 50% or more of investment spend on innovation
Financial investment in innovation over the past 5 Years? And next 5 Years
Less than 25% 25% - 50% More than 50%
85%79%
12% 19%2%3%
expect their industry to be disrupted by new innovations in the next three years80%
Source: Survey data based on interviews with 200 C-suite Middle East executives from across 11 industries
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Champions use innovation strategically to unlock value in new businesses while revitalizing their core business
of champions (vs 41% of others) use innovation strategically to unlock value in the legacy and new businesses.
71%
Bubble size: Level of investment confidence by change activity: Champions over rest of the market
Champions are more confident of their levels of investments dedicated to pivoting their business.
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The exponential growth in data amplifies the opportunity for enterprises to be more insight-led in delivering business value
of the data in the world today has been created in the past 10 years90%
the amount of data in 2017 will be created by 202510x
of all data within an enterprise goes unused for analytics>73%
of ME Co’s are able to use data to capture insights & recommendations to materially influence customers
1/3
of ME companies report being able to realize tangible and measurable value from data.
<24%
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Innovation Champions unlock value trapped in data by focusing on 4 key pillars
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5GMAKING IT A BRIGHT FUTURE FOR CSP PLAYERS!
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Accenture’s Innovation Maturity Index diagnostic asset is designed on the back of these insights to measure the readiness of companies innovation ability to support their journey to the NEW
A structured innovation model will increase the success rate granting return on investments
PILLAR 1 PILLAR 2
INNOVATION MATURITY INDEX
Asset Smart Inclusive
Hyper Relevant
Technology Propelled
InnovationStrategy
InnovationCulture
InnovationArchitecture
INNOVATE BY DESIGN
INNOVATION PRACTICES
Talent Rich
Network Powered
Data Driven
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Introducing our panel speakers
Othman AlDahashVP Corporate Development, STC Group
Francisco SalcedoSenior Vice President, Etisalat Digital
Luis SisamonFounder and CEO,Applied Advance Analytics (A3)
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THANK YOU