Digital transformation requires a wholesale reinvention of every aspect of your business

Shankar Arumugavelu

SVP and CIO, Verizon

© 2017 Verizon. This document is the property of Verizon and may not be used, modified or further distributed without Verizon’s written permission.

As communication service providers, we helped advance the digital world.

We need to capitalize faster on the digitizationwe championed.

2

3

Customer expectations have changed

Simple • Personalized • Reliable

Transpare

ncy

Great Service

Seamless

Cross-hannel

Digital

First

Contextual

Interaction

s

On

Demand

Transparency

Great service

Digital first

On demand

ContextualinteractionsSeamless

experiences

4

Employee expectations have also changed

Employees are digital consumers too; they expect digital capabilities at work

Simplified

policies,

processes,

procedures

End to end

customer

visibility

Digital

workplace

Working

anywhere,

anytime,

on any device

Be the

customer

advocate

5

Digital transformation building blocks

Deepen customer

engagement

Empower

employees

Optimize

operations

Technology

Organization, talent, and culture

Transform

products & services

6

Verizon delivers

the promise of the

digital world.

Our

promise:

7

We deliver

this promise

to our

customers

following

these three

principles.

Simply. For Me. Reliably.

• Make it simple

to understand

• Make it simple

to deal with

• Make it simple

to use

• Talk human to me

• Anticipate me

• Be transparent to me

• Without fail

• Find a way

• Never stop

8

Transform products and services

Design products to also be the system of engagement

Remote control

for wireless plan

Fios mobile

early access

Upgrade

broadband speed

using your TV

9

Deepen customer engagement

Earn customer trust and confidence

AnticipateCommunicate in context

Be transparent Listen

You are paying per-minute

rates on international calls.

Tap to view available plans >

Where’s

my tech?

We detect a problem with

your DVR. Tap to have a new

DVR shipped to you >

Voice of the customer

10

Empower employees in the digital workplace

Simplify

interactions

Enable agents to be

customer advocates

Provide end to end

visibility

Employee effort Customer satisfaction

Customer

streams

live video

Right sell customers Self-sufficient field

technicians

Agent can

annotate

screen

11

Optimize operations

Digitalize operations to deliver on the promise

Keeping

customers

informed

Intelligent

scheduling

Real-time

fleet management

Anomaly detection

Same day delivery

Dispatch

operations

Supply chain

transformation

Digital

operations

12

Technology focus areas

Modernize IT architecture to accelerate digital transformation

61%Applications

Real-time streaming

Cross-channel

Cognitive/MLChat bots &

NLP support

50%Data centers

Cloud-native, micro-services, APIs

Systems modernization

Data analytics User experience

Design to fit the

4” screen

13

Digital IT architecture

Call center

Voice

assistants

Bots

Data warehouse BillingERP

Digital Stores

Social

Systems of engagement

Systems of record

Systems of intelligence

Big Data

Algorithms

Intelligence

Centralized

decisioning

Cognitive

learning

Real time

streaming

Diagnostics InteractionsUsage

Personalized

insights

Next best

action

Customer

behavior

Network

TV

Router

Device

14

Innovation acceleration patterns

Value creation

Agile DevSecOps Cloud

Development PS, Ops &

Security

InfrastructureBusiness

Modern operating modelBreaks down silos and barriers • Enables frictionless and faster value creation

Optimizing for speed and innovation

15

Organization, talent, and culture

Culture is key to success

Breakdown silos Test & learn

Attract digital talent

Immersive learning Employee gamification

Hackathons

16

• Simplify processes and policies – Don’t digitize analog processes

• Obsess over the customer experience

• Simplify & modernize the IT architecture

• Organization & process geared to speed & agility

• Don’t wait for perfect – Test, learn & iterate constantly

• Attract, retain & protect top talent

Digital transformation = Business transformation

17

We deliver the promise of the digital world.