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Report Telecoms - EY - 2015 - Global Telecoms Digital Playbook

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  • 8/17/2019 Report Telecoms - EY - 2015 - Global Telecoms Digital Playbook

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    Global digitaltelecoms playbook

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    About this document

    PurposeOperators need to move from beingcommunication service providers (CSPs) to digital

    service providers (DSPs). The Global digital

    telecom playbook and EY’s advisory services can

    help operators with this transformation.

    Target audienceQuad-play operators

    Triple-play operators

    Adjacent industry service providers

    Content

    EY point of view

    Digital solutions

    Industry challenges

    1

    2

    3 Communicationservice provider Digital serviceprovider

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       C  o  n   t  e  n   t  s

    Macro context: markets and customers

    Telco 2020: the future

    Telco segments and digital maturity

    Value chain elements deep dive

    Solutions and mapping to digital offerings

    Digital maturity modeling toolkit

    EY capabilities

    p01

    p08

    p15

    p18

    p29

    p41

    p45

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    Macro context: markets and customers

     

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    2 | Global Digital Telecoms Playbook

    Markets and industry stakeholders

    Commoditization Limited acquisition

    led growth

    Alternative

    products andbusiness models

    Market dynamics

    Customer

    Organization

    Ecosystem

    Challenges

    • Overall loss of velocity due to slow growth led by declining acquisitionor upsell

    • Rising expectations of service with the fast-evolving digital customer

    • Decreasing agility induced by years of legacy

    • Increasing pressure on margins with declining prices

    • Fragile revenue market share with new business models popping up

    • Consolidation in industry and pressure to realize group synergies

    • Cost pressures mounted by advancing network technologies

    • Paralysis due to certain regulatory environments

    • Unknown competition with the advent of digital

    • Loss of customer ownership to OTT and OS players

    Opportunities

    • Differentiation and loyalty-building through customerexperience excellence

    • Leverage the M2M space by forging strong partnerships with network

    management and software platform providers

    • The huge digital divide in emerging markets offers immense potential

    for the next wave of growth

    • Operational effectiveness through state-of-the-art processes,technology, partnering and culture shift

    • Leverage capabilities to create own OTT monopolies

    • Become enabler champion (e.g., client management) for entire ecosystem

    Commoditization

    Commoditization Saturation Alternative

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    3 | Global Digital Telecoms Playbook

    Markets and industry stakeholders

    • Digitally evolved

    • Higher service expectation

    • Low loyalty

    Customers

    • Compliance inducing

    critical delay

    • Regulatory tightening

    • Articial spectrum scarcity

    Regulatory authorities

    • Fringe cost model

    • Lower time to market

    • More innovative

    • Global customer reach

    Internet players/OTTs

    • Aggressive independent

    payment platforms

    • Regulatory bottlenecks for

    telcos as banks

    Payment associates

    • Advancing technology

    • Expensive upgrades

    • Omni-channel reach

    Equipment andtechnology providers

    • Declining dependence on

    operators for bundling

    • Customer choice evolving from

    connectivity to devices to OS

    Device manufacturers

    Stakeholders

    Industry stakeholders dynamics

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    4 | Global Digital Telecoms Playbook

    Globally, key digital trends have triggered operators’ transformation toward beingdigital service providers

    Over-the-top

    Big data

    1

    2

    Content

    Focus areas

    Distribution

    Targeted product andmarketing offers

    Connectivity

    New business modelsenablement

    Screen

    Network experienceoptimization

    User

    Proactivedata strategies

    ServicesInternetaccess

    DevicesConsumer

    insightApps

    App store/retailing

    Data mart provider forcustomer data sets

    App store/retailing

    Platform provider forinformation processing

    Provide insights to partnersfor improving servicesg

    Suite of servicescatering to third parties

    TelephonySoftware/platform

    Discovery

     Mobile operators are now open and receptive to partnering withOTT service providers and exploring new revenue oportunities.

    Exponential growth in the volume and velocity of datagenerated is creating huge opportunities in big data.

    • Telecoms is both a consumer and provider of big data services.

    • Telecoms opportunities with big data:

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    Globally, key digital trends have triggered operators’ transformation toward beingdigital service providers

    E-payments IoT/ M2M3 4With the advent of the digital customer, CSPs will have to invest indigital payments

    New business opportunities are emerging from the possibility of connectingnew devices and industriess.

    o’

    Internet of

    Things

    Transportation

    and logisitics

    Industrial

    and energy

    Medical

    and health care

    Security

    and surveillance

    Telc to providecommunication infrastructure

    Logisitics

    s

    Customercard holder and mobile subscriber

    NFC-

    enabled

    handset

    New for eWallet

    NFC

    Merchant Customer’s Bank

    Trusted Service Manager(TSM)

    Carrier

    Potential rental fee per

    customer for updatingdata on card

    Potential rental fee for UICCslot for an eWallet application

    Potential rental fee forslot on UICC card

    Mobile subscription fee and/  potentially eWallet fee

     Annual credit card feeand potential eWallet fee

    interchange fee for

    transferring funds

    customer paysmerchant for product

    Trusted service manager

    Customer’s bank

    Telcos to provide

    communication infrastructure

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    Globally, key digital trends have triggered operators’ transformation toward beingdigital service providers

    Mobile Advertising Cloud computing5 6Large latent mobile advertising opportunities are still untappedin many parts of the world.

    Cloud-based infrastructure presents opportunities to acquirelarge-scale exibility quickly.

    Mediachannel andadvertising

    services

    Advertisingcampaigncreation

    Ad sales Technology Targeting Ad serviceCampaignanalytics

    Manage

    the channel

    on which

    advertising

    is displayed

    Create

    campaign

    and advise

    announcers

    Sell the ad

    inventory

    Provide

    technology

    for ad

    provisioning

    Provide

    customer

    intelligence

    for ad

    delivery

    Run the

    ad serving

    engine

    Collect and

    provide

    campaigns’

    results to

    announcers   Delivering cloud

    Third-party Third-party

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    Customer 2.0

    7 | Global Digital Telecoms Playbook

    Customer exposure to host of digital interfaces is increasing rapidly

    Customer 2.0 is forcing ecosystem players to provide digital interfaces and consistency of digital experiences across channels

    VASWord ofmouth

    Traditionalmedia

    TraditionalsalesTraditional

    marketing

    Call centre

    Data

    Voice   S

       e   r   v    i   c

       e

        S

       e   r   v    i   c

       eC    h    a   n   n   

    e   l     

    C    h    a   n   n   

    e   l     

    Organization Organization

    Video ondemand

    E-wallets Socialmedia

    Onlinecommunities

    Chat

    OnlinesalesDigital

    marketing

    E-care

    Music ondemand

    Customer 1.0

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    Telco 2020: the future

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    0

    10

    20

    30

    40

    50

    60

    70

    2014 2015 2016 2017 2018 2019

    Operator revenues Other ecosystem players

     

    0% 20% 40% 60% 80% 100%

    Network infrastructure Components Devices Apps, content, advertising Operators

    Mobile networktraffic, 3.8

     support platform,

    6.3

    Servienable

    platform, .

    Service wrap,383.3

    9 | Global Digital Telecoms Playbook

    Looking ahead: digital will transform the 2020 revenue mix

    Operator perceptions of 2020 revenue mix

    Operators worldwide predict a marked shift in their revenue mix by 2020

    Industry M2M forecasts

    Mobile ecosystem revenues 2020 forecast

    Q. What proportion of revenues do you believe digital services will account for atyour organization in ve years’ time? (Please select one.)

    M2M revenue forecast, 2014-19

    Proportion of respondents that see digital revenues accounting for more than 10%of overall revenues by 2020

    66%

    “Digital services currently account for 3% ofrevenues. In ve years’ time, this will rise to10% or the low teens due to the provision ofservices in security surveillance, smart cityand enterprise services.” 

    US$b

    % respondents

    US$b

    Source: GSMA

    Source: EY research

    Source: Ovum

    Operater share = 50%

    22

    13

    16

    19

    13

    19

    0 10 20 30

    25%+

    21%-25%

    16%-20%

    11%-15%

    6%-10%

    0%-5%

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    10 | Global Digital Telecoms Playbook

    Supply and demand dynamics create a range of 2020 scenarios Innovation is likely to hinge on collaboration and competition, as regulatory attitudes and network upgrade programs

    evolve in new directions

    Evolving industry dynamics

    Operator geographic footprint growth inconsumer andenterprise services

       C   h  a  n  g   i  n  g  m  a  r   k  e   t

      s   t  r  u  c   t  u  r  e  s

    Rise of mobilenetwork sharingUptick in MVNO

    launches worldwide

    New social media and contentplatforms

    Smartphones and appstores

    Birth of OTTsOTTs extend

    platformcapabilities

    Tower sale-and-leaseback

    Geographicfootprint trimming

    Rising in-marketconsolidation

    Rising operator appetitefor bolt-on acquisitions

    Web giants extendinto accessprovision

    Blurring of digital categories,e.g., e-commerce, payments,

    marketing

    Increasing disruption across allindustries — blurring of use cases

    Increasing operator differentiationthrough network quality

    Rising competition for wallet share asall playersboost scale and capability

    Wi-Fi rollout   S  u  p  p   l  y  -  s   i   d  e   d  e  v  e   l  o  p  m  e

      n   t  s

    Extensive 3G and ber rolloutBridging technologies

    enabling capex efciency

    Local loop unbundling and

    equality of access regulation MTR reductions

    Spectrum release andre-farming

    for 3G/LTE

    Regulatory support forMVNOs as

    merger remedy

    New standards andtechnologies for IoT,

    5G

    4G rollouts beginNetwork

    virtualization

    More holistic and pro-investmentnational digital policies

    Risk of global policy fragmentation,e.g., net neutrality, data protection

    Proliferation of network technologiesaccording to use case

    Vertical collaboration with tech rms to widen enterpriseservice portfolios

       O  p  e  r  a   t  o  r  s  e  r  v   i  c  e

       i  n  n  o  v  a   t   i  o  n  s

    Mobile operatorsub-brandlaunches

    Mass market residentialxed-line bundles

    WAP-basedmobile content

    services

    Mobile operatorsub-brandlaunches

    Mobile nancialservice launches

    Vertical collaboration with OTTs todifferentiate packages

    Partnerships drive operatorservicecreation

    Rising operator horizontalcollaboration in digital services

    Shift beyond B2C-centricbusiness models

    Vertical collaboration with tech,e.g., IoT, smart city

    Widening of use cases, customertypes, pricing models

    Move to tiered data, PAYG cloud,family and shared data

    Widening of product scope alliedto segment-specic focus

    2005 2010 2015 2020 scenarios

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    11 | Global Digital Telecoms Playbook

    Telco 2020: digitized future telecoms end-to-end journey

    Potential customerdiscovers your newproduct, researchesacross competitors.

    Visits online store,lls online applicationform, pays amountonline and takesonline appointmentfor physical delivery.

    Customer visitsonline for upgradeof plan and activatesplan online.

    Customer visitsonline/app channelto pay bill, providinginstant credit toyour company.

    Customer raisesspeed issue onsocialchannel afterresearching FAQs.Customer is keptinformed andissue isresolved quickly.

    Voice Of customer InternalDigital design ve year plan | Build today

    Social listen External

    Customer experience

    Big dataanalytics

    Strategy

    Design

    Technology

    Feedback

    Analytics identify ifcustomer likely tochurn. Appropriateoffers are providedto retain customer.Customer posts goodreview on socialchannel.

    Aware Buy Use PayGethelp

    Renew/teminate

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    12 | Global Digital Telecoms Playbook

    Telco 2020: digitized future telecoms journeys

    Online

    Socialmedia

    Notication(SMS/email)

    Calls(voice/video)

    Home service

    Sees paid Facebook adwhile browsing online fornew mobile connection

    Link leads to companyweb site and blog fordetailed information

    Reads posts fromfriends about great

    experience with product

    Looks for reviewsvia Google search

    Search for bestprices/plans throughresearch websites Finds sponsored deal

    with link to online store

    Usage simulatorhelps customer optfor suitable plans Customer chooses

    personalizedcombination of services

    Customer makes onlinepayment and submit KYC

    details. Online appointmentfor any physical delivery.

    Customer verifies detailsto agent on the spot, and

    connect is activated remotely

    Customer receives activatedconnection at scheduled time

    Company verifies customer informationwith govt. database available online.Verification is done by delivery agent.

    Customer fills in online details andmakes online payment, and appointmentfor product delivery.

    Customer visits the website/app andopts for a personalized plan. Usagesimulator help choose appropriate plan.

    Potential customer learns aboutyour product.

    Gets to know about productexperience from other customers.

    Potential customer discovers yournew product.

    Aware Buy Use PayGethelp

    Renew/teminate

    Discover Word of mouth Research Select Purchase Activation

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    13 | Global Digital Telecoms Playbook

    Telco 2020: digitized future telecoms journeys

    Online

    Socialmedia

    Notication(SMS/email)

    Calls(voice/video)

    Home service

    Gets a welcomemessage with productdemo after activation Guided explainer

    for first-timeusage within apps

    Content displayedis based on

    usage history

    Gets notification aboutdata usage hitting thedata cap, with link to

    add-on packs

    Activatesadd-on pack

    Searches for betterpricing/packs

    Activatesnew pack

    Uploads new nameand address as

    required with proof

    Customer makes onlinepayment and submits KYCdetails. Online appointment

    for any physical delivery.

    Pay bill online via app,wallet, credits, loyaltypoints or auto debit.

    Receive incentives ontimely payment of bill-Autoalerts if payment pending

    Receive e-bill, mobile alertand bill on app, with combinedbill for multiple connections

    or family connectionvideo explantion for first bill

    Agent check andvalidates change

    Customer pays bill over e-channelsreducing credit period

    Bill generation through mediation andrating system. Customer receives it onmultiple channels

    Customer changes the accountinformation

    Customer changes the product orpricing to suit his/her needs

    Customers uses products/servicesNew customers try to find out howto use the product

    Aware Buy Use PayGethelp

    Renew/terminate

    First-time usage UsageChange product/

    pricingChange prole Billing Payment

    Goes online todownload/usenew productsand services

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    14 | Global Digital Telecoms Playbook

    Telco 2020: digitized future telecoms journeys

    Online

    Socialmedia

    Notication(SMS/email)

    Calls(voice/video)

    Home service

    System detectsdegradation

    performance and

    applies automatedresolution; customerinformed about

    problem andresolution applied

    Customer providedwith offer to

    compensate forloss in performance

    Further research leadsto forum where other

    customers offer guidanceon problem resolution

    Tweets@custsvcdepartment aboutissue; retweeted

    many timesby followers

    Issues resolved quickly;receives acknowledgmentwith further steps on email

    Issues resolvedthrough video chat

    Renew customer gets abetter plan and decides

    to continue usage

    Terminating customer clears duesand schedules appointment fordevice recovery if applicable;Online refund of any security

    deposit. Account settled andconnection terminated

    Analytic to identify likely-to-churn customers triggeringproactive etention through

    communication to customers

    with special offers

    Customer requests fortermination online

    Customer pays bill over e-channelsreducing credit period

    Proactive retention efforts based onservice quality and usage patterns.

    Contacts customer service for supportCustomer changes the product orpricing to suit his/her needs

    Customer tries to diagnose problemand find resolution on his/her own

    Problems detected, diagnosed andresolved without customer getting toknow about it

    Aware Buy Use PayGethelp

    Renew/terminate

    Proactive custom-ercommunication

    Self careSocial Media

    and CommunitiesAssisted Care

    CustomerRetention

    CustomerTermination

    Customer detects anissue, goes online tobrowses FAQs and

    how-to videos

    Proactive

    customer communicationSelf care

    Social media

    and communitiesAssisted Care Customer retention

    Customer

    termination

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    Telco segments and digital maturity

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    16 | Global Digital Telecoms Playbook

    Telecoms segmentation and digital maturity

    • Oldest operators in themarket

    • Carrying extensiveassets and legacysystems

    • Large complexorganizations withmultiple LoBs

    Established   S  e  g  m  e  n   t  s

       C   h  a  r  a  c   t  e

      r   i  s   t   i  c  s

       E  x  a  m  p   l  e  s • AT&T

    • BT

    • Deutsche Telekom

    • Often regional ornational players ingrowth markets

    • Battling increasedcomplexity andcompetition

    • Focused on growingreach and connectingwith customers

    Maturing builders

    • MTN

    • Airtel

    • Idea

    • Telefonica

    • Usually incumbents/incumbent challengers inthe market

    • Medium to largeorganization with agilityin their DNA

    • Fairly high innovation intechnology and businessdesign

    Transformers

    • Verizon Wireless

    • Vodafone

    • Orange

    • Telstra

    • Often regional ornational players ingrowth markets

    • Battling increasedcomplexity andcompetition

    • Focused on growingreach and connectingwith customers

    Builders

    • Telenor

    • Reliance Jio

    • Market disruptive players

    • New and path breakingbusiness/operatingmodels

    • Customer-centricorganizations heavilydependent on P2Pnetworks

    Pioneers

    • Giffgaff

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    High

    Implementation complexity

    Low

       H   i  g   h

       L  o  w

       D   i  g   i   t  a   l  m  a   t  u  r   i   t  y

    17 | Global Digital Telecoms Playbook

    Telecoms segmentation and digital maturity

    • On the road to digital transformation, telecoms companies need to plan and strategize on how to reimaginetheir business based on their current digital maturity.

    • Different telecoms companies will face their own unique challenges based on their digital maturity levels

    Pioneers

    Builders

    Transformers

    Established

    Maturing builders

    Established

    Digital ambition subdued by high barriers to implement; digitalinitiatives launched in pockets leading to low maturity

    Transformers

    Digital ambition to be competitive in the market; quick to implement

    given their size and scale

    Maturing builders

    Moderate digital ambition; high abilities to embed digital in existingcapabilities; often disintegrated execution

    Builders

    High digital ambition; opportunity to start from backend building upto digitizing integrated customer interfaces

    Pioneers

    High digital differentiation; early digital adopter and drivers ofdigital innovation

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    Value chain elements deep dive

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    19 | Global Digital Telecoms Playbook

    Telecoms value chain: key elements

    Telecoms key elements

    Networkconvergent

    technology and

    infrastructure

    Telecoms core

    network elements

    including operations

    and maintenance

    Idea to cash, ideation factory, new product

    development, funnel management, product

    portfolio management, pricing

    Traditional telecoms elements

    post- order capture through

    to assurance

    Marketing including digital sales,

    customer service, MACD, channel/

    touch point management

    Hiring, training, employee engagement,

    rewards and recognition

    Telecoms core network elements

    including operations and maintenance

    Technology elements where

    digital execution will happen

    End user consumption devices and

    customer premise access equipment

    Spectrum management

    and regulatory compliance

    including reporting, audits

    and minimum obligations,

    customer privacy and

    intrusion detection

    and preventionProducts

    and

    services

    Fulllment,

    assurance

    and billing

    Customer

    interface

    operations Talent

    and

    culture

    Partner

    and

    ecosystem

    Enterprise

    technology

    Devices

    Regulatory

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    MaturityEstablished Maturing buildersTransformers Builders Pioneers

    20 | Global Digital Telecoms Playbook

    Value chain deep diveNetwork convergent technology and infrastructure

    NetworkTelecoms key elements

    Network convergent technology and infrastructure

    Technologyselection

    Digitized networkasset management

    EY digitalsolutions

    Networkplanning

    Digitizedmaintenance monitoring

    Physical infrastructuresetup and management

    Monetizingnetwork data

    Activeinfrastructure setup

    Customerexperience management

    Network managementand O&M

    Ongoing optimizationand expansion

    Challenges EY point of view Solutions for digitalenablement

    Shorter lifecycle of newtechnologies(2G/3G/4G

    • Coexistence of multiple generations of technologies will force operators to have backward compatibility• Smart ofoad of trafc to lower cost channels will be enabled by digitization ensuring optimal usage and cost efciencies

    • Digitized networkmanagement and operations

    How to use customerinformation for differentiatedcustomer experience

    • Customer-level information will allow Telcos to deliver personalized experience

    • Network analytics-based interventions in real-time will allow telcos to deliver superior customer experience

    • Customer usage analytics

    • Customer experiencemanagement

    Absence of device eco-systemfor 3G/4G/5G

    • Tie-ups with device makers for rollout of devices at lower pricing to ensure usage of new technologies • Digital collaborative toolsdesign and setup

    Asset tracking andmanagement

    • Digitization of network assets will allow automated tracking and bring true valuation for operators

    • Digitization will help reduce the cost of the inventory.• Digitized network asset

    management

    High O&M cost contributionfrom active/passivecomponents

    • Common NOC and common vendors will help reduce OPEX.• Common active/passive infrastructure for further cost reduction.

    • Remote digital O&M andself-correcting network tools

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    Maturity

    Established Maturing buildersTransformers Builders Pioneers

    21 | Global Digital Telecoms Playbook

    Value chain deep diveProducts and services

    Productsand services

    Products and services

    Needs analysis andinnovation funnel

    Innovation throughcrowd sourcing

    EY digitalsolutions

    Market andconcept testing

    Digitized pricediscovery/new models

    Product designand experience

    Product interfaceexperience design

    Productdevelopment

    Pricing models

    TestingPricing anddistribution

    Roll out andmanage portfolio

    Challenges EY point of viewSolutions for digitalenablement

    Driving product innovation • Consumer needs will drive the next wave of innovation in product design and development.• Product managers will tap the collective knowledge of a large user base to generate the next product idea through crowd sourcing and customer

    driven innovation factories.• Product design will be driven by experience needs of consumers and validated through constant experience testing and feedback looped into

    product development.• Social listening will help discover which products and services are in demand.

    • Digital Inovation factory• Product experience

    engineering

    • Digital simulation tools

    • Virtual product experiencelab

    • Automated feedback

    Drive digital product life cyclemanagement

    • Seamless integration across partners and ecosystem for digitized management of products/services portfolio will enable focus on businessoutcomes like protability, revenue growth and efciency

    • Digitize product life cyclemanagement

    Driving pricing innovation • Scientic methods of price discovery based on demand elasticity will give rise to innovative pricing models.• Telcos will also replicate freemium models.• Telcos will develop products and offers around bundling of mobile and xed line services to ensure lower churn.

    • Digitized demand assessment• Digitized product catalog

    Competition from OTTs inB2B space

    • Telcos will develop platforms and increasingly invest in newer business models to capitalize on revenue opportunities like mobile advertising,M2M, payment services etc.

    • Being a provider of the IoT and personal cloud facilities positions a telco at the center of the digital consumer world, with stickiness for the otherservices and applications in its portfolio.

    • Development and growth in these elds will be enhanced inorganically through acquisitions and partnerships.• Common active/passive infrastructure for further cost reduction.

    • Dynamic pricing• M&A, post-merger integration

    Telecoms key elements

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    Maturity

    Established Maturing buildersTransformers Builders Pioneers

    22 | Global Digital Telecoms Playbook

    Value chain deep diveFullment, assurance and billing

    Fulllment, assurance and billing

    Fullment, assurance and billing

    Purchase

    Integratedbillingsolutions

    EY digitalsolutions

    Service provisioned

    Proactive and self-carefulllment avenues

    Usage

    Digital technology

    Bill sent

    Digital enterprisestrategy

    Payment processing Payment complete

    Challenges EY point of viewSolutions for digitalenablement

    Building trusted billingrelationship

    • Independent wallets will continue to gain ground over the existing operator billing relationship.• Operators will have to move toward transparent digital means of allowing customers to manage their account.• With advent of Customer 4.0 operators will have to look beyond digital bill delivery and recharges.

    • Mobile self service andaccount management

    High time to market dueto legacy billing systemcomplexities and lack ofintegration across services

    • Telcos old billing systems will continue to impede launch of new offers due to long conguration time for new products or services.• Telcos will have to simplify and upgrade billing systems to handle complexities in product bundling.• They will require convergent (triple-play or quad-play) billing that supports ease of conguration, supporting real-time charging and billing, 

    and scalability.• This will help them keep billing costs as low as possible.• Digitized menu for customers to select/de-select a bouquet of services, simulate usage and customize plans.

    • Technology stacks andsystem congurations forintegrated systems

    • Integrated billing system• Digitization to enable innite

    number of portfoliocongurations

    Currently assurance is at aservice/product level

    • Customer-level assurance monitoring and reporting will be implemented by telcos; however, monetization of this investment will happen overa long term.

    • Strategic prioritization and phased investment will help telcos get ROI.

    • Customer self-assurance

    Telecoms key elements

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    Maturity

    Established Maturing buildersTransformers Builders Pioneers

    23 | Global Digital Telecoms Playbook

    Value chain deep diveCustomer interface operations

    Customerinterface operations

    Customer interface operations

    Awareness

    Omni-channelenablement

    EY digitalsolutions

    Purchase

    Digitalacquisitions

    Pay

    Digital distributiontransformation

    Use

    Socialanalytics

    Get service MACD Churn

    Challenges EY point of viewSolutions for digitalenablement

    Varied customer experienceacross business units and touchpoints)

    • Operators will synchronize their operations to be able to present a single face to the customer.• New-age digital customer touch points will be always on (web / mobile / social), leading to multiple interactions and a greater ability to  

    inuence customers.• Cross-channel context retention will allow customers to initiate a transaction on one touch point and complete it on another.

    • Omni-channel enablement

    Tedious manual process ofacquiring customers

    • Telcos will increase their digital reach and integrate their acquisition process with global customer identity databases for authenticationand verication.

    • Automation to enable faster and easier customer acquisition and on boarding process.• Regulations will be increasingly eased to enable lower costs on digitized acquisitions.

    • Digital acquisition

    • Digital supply chaintransformation

    Detecting and xing customerexperience degradation

    • Currently data from digital products is used to map usage. It will also be extended to map failure points in customer experience.• Using customer-specic data and mapping with larger customer base data, telcos will identify common failure points and focus on xing

    them proactively.• Identication of failure points will allow telcos to resolve the issue before it becomes a failure point for the customer and leads to a complaint.

    • Customer life cyclemanagement

    Operators have a sales-focusedapproach

    • As customers get more digital-savvy, the share of wallet for digital services is expanding much more than core telecom services.• Hence it will become imperative for telcos to shift focus from a customer acquisition to overall customer life cycle management.

    • Dynamic pricing

    • M&A, Post Merger Integration

    Share of high-cost traditionalchannels for customerawareness in BTL is high

    • Telcos will need to develop presence across channels and control the brand image, since brand conversations and comparisons occur through aplethora of digital touch points increasingly outside of the control of brands and traditional ATL/BTL marketing methods.

    • Operators are increasingly developing intelligent insights from existing inventory of data and using it to improve cross-sell/up-sell conversionsthrough a real-time dynamic mechanism of personalized recommendations and NBAs.

    • Digital marketing

    • Brand monitoring• Social listening• Big data analytics

    Telecoms key elements

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    Maturity

    Established Maturing buildersTransformers Builders Pioneers

    24 | Global Digital Telecoms Playbook

    Value chain deep diveTalent and culture

    Talent and culture

    Talent and culture

    Talent strategy

    Talentmanagement

    EY digitalsolutions

    Sourcing andrecruiting

    Virtualtraining models

    Learning anddevelopment

    Collaborationandproductivity tools

    Performancemanagement

    Knowledgemanagement

    Developing highperformance culture

    Compensationsand incentives

    Challenges EY point of viewSolutions for digitalenablement

    Attracting new talent withdigital skill set

    • With operator’s focus shifting on digital, telcos will hire personnel with skill set specic to digital solution implementation.• Telcos will hire talent based on a sourcing, screening and selection process that identies candidates with the right knowledge, skills and

    behaviors to perform highly complicated digitization.

    • Skills and competenciesassessment

    Automation of all employeeinterfaces

    • Telcos will move to transform complete hire-to-retire talent life cycle management covering talent acquisition, talent development, talentretention and talent management using digital technologies.

    • Talent life cycle mangement

    Co existence of people withdigital skill set and existingemployees

    • Telcos will develop specic programs and initiatives to build a digital–oriented culture across employees. • Collaboration and productivitytool

    Upgrading skills in a distributedenvironment

    • Telcos will use web and mobile training modules.• Telcos will develop cloud solution for employees knowledge management and development (within and outside organization).

    • Cloud-based knowledgemanagement portal

    Developing a high-performanceculture with motivatedemployees

    • Telcos will identify and develop the right organization culture inline with its values (i.e., scientically led, patient-centric).

    • Telcos will develop scientic approach for incentive earning for employees on the right things.

    • Employee gamication

    Impart specic skills at theright time to each employee tohelp the company

    • Improve employee performance by imparting knowledge, changing attitudes and improving skills for an increasingly mobile workforce

    • A suite of integrated knowledge database with easy access

    • Virtual training models

    Telecoms key elements

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    Maturity

    Established Maturing buildersTransformers Builders Pioneers

    25 | Global Digital Telecoms Playbook

    Value chain deep divePartner and ecosystem

    Partner andecosystem

    Partner and ecosystem

    Identify needand search

    Digitization ofpartner interfaces

    EY digitalsolutions

    Checkfeasibility

    Partner performancemanagement

    Negotiateand contract

    Partner ITsystems Integration

    On board

    Demandforecasting

    Operationsmanagement

    Settlementsand payments

    Managepartner portfolio

    Challenges EY point of viewSolutions for digitalenablement

    Building a long-term strategyfor partner selection andgrooming

    • Telcos will use scientic approach to partner selection and onboarding by use of quantitative and qualitative techniques.• Telcos can quickly skip the learning curve and provide a great digital experience to customers through careful selection of partners.• Partner grooming and development will be a long term process with partners evolving along with the organization.

    • Partner selection framework• Partner contracting

    Creating an operator-partnerecosystem

    • The customer experience and product performance can drastically change for better or for worse as soon as the customer steps out of the telcoenvironment and goes into the partner environment.

    • A better overall experience can be created by tight integration of the telco and partner systems and processes.

    • Data security

    • Resource demand forecasting

    • Partner IT system integration

    Creating digital awarenessamong partners

    • Telcos can build partner capability through long-term collaborative capability development in digital spaces.• Telcos will involve partners and their systems in earlier stages of process digitization.

    • Digitization of partnerinterfaces

    Cost reduction in operationsthrough partner efciency

    improvement

    • Service providers should ensure partner capability development through training programs and IT implementation support for key systems likeERP to ensure high performance levels.

    • Digital training

    Seamless partner payouts • Timely payments are essential to ensure positive partner relationship.• Integration of variables such as product returns, performance penalties, tax changes, etc. in real time will enable one-time accurate payouts.

    • Partner performancescorecard

    Telecoms key elements

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    Maturity

    Established Maturing buildersTransformers Builders Pioneers

    26 | Global Digital Telecoms Playbook

    Value chain deep diveEnterprise technology 

    Enterprise

    tech.

    Enterprise technology

    Dene enterprisetechnology strategy

    Cloud solutionsEY digitalsolutions

    Plan designframework

    Innovation factory

    Design testdevelopment

    Digital technology

    Testing

    Big data analytics

    Execution Settlementsand payments

    Maintenance,optimization

    and expansion

    Challenges EY point of viewSolutions for digitalenablement

    Legacy stacks leading todisparate IT landscape

    • While the Maturing builders and Builders have the edge in choosing a pre-integrated stack, the Established and Transformers will have to adopt aorganization-wide transformation to leapfrog to the latest capabilities as a unied goal.

    • Digital technology road map• Mobility solutions for

    enterprise

    Disintegrated network andIT elements in the age ofconvergence

    • With the advent of IP-based networking, IT-network convergence is an imperative. Traditional boundaries of IT and Network need to be madeporous to ensure a smooth transition to a well-integrated platform.

    • Increasingly, CIO and CTO positions will converge to enable unied control.

    • Digital architecture for futureTelco

    Coexistence of people withdigital skill set and existingemployees

    • Telcos will develop specic programs and initiatives to build a digital–oriented culture across employees. • Collaboration and productivitytool

    Transform IT to providecapabilities to business basedon cloud

    • Cloud solutions have gone beyond application hosting and storage. Telecoms players need to re-position themselves as solution providers,widening their portfolio with personalized problem solving for their enterprise customers.

    • Digital innovation factory

    • Go-to-market approach

    Use of Big Data and analytics

    for newer revenue streams

    • The established players have the history, information, connection and relationship with the customer to monetize the wealth of data residing on

    their network and IT systems. More and more advertisers are turning to telecoms companies as capturers of consumer movement.• Transformers have already made an initial impact in seizing these opportunities and partnering to open new revenue streams.

    • Analytics and insights,

    complex customerinteractions analysis

    • Digital risk evaluation, digitaldiagnostics toolst

    Telecoms key elements

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    Maturity

    Established Maturing buildersTransformers Builders Pioneers

    27 | Global Digital Telecoms Playbook

    Value chain deep diveDevices

    Devices

    Access and devices

    Interpret technologyand network strategy

    Device management —consumption and

    connectivity devices

    EY digitalsolutions

    Assess device andsupplier ecosystem

    Convergedaccess solution

    Plan buy/buildcollaborate decision

    Proactive care —devices and network

    Device pricing, bundlingand distribution

    Processes and systemsdesigned to support

    M2M services

    Device informationow and analytics

    Maintain, optimize,upgrade

    Challenges EY point of viewSolutions for digitalenablement

    Varied product performanceacross devices

    • The spurt of different OS types in the past few years has led to an increase in fragmentation of OS/device combinations.• This means that each product that is released needs to be optimized as per the device, which is a cost to the company.• Telcos can use their experience and infrastructure capability to take a lead and help OTTs in identifying focus areas for optimization.• integrated product testing will also include elements like network variations.

    • Mobile testing lab• Test scenarios

    • Issue monitoring

    • Proactive care• OTA services

    Inability to abstract device fromnetwork for newer IP basedtechnologies

    • Usually when customers face loss of experience due to device/ interface issues they will reach out to telecoms operator to try andresolve issues.

    • This adds an unnecessary strain on the company resources to try to resolve device issues.• Operators will move towards integrated testing of devices before launch to eliminate issues at source.

    • Collaborated testing

    • Converged connectivity solutions (EAPSIM/intelligent client)

    • Selective converged CRM

    Less ARPU from M2M • Supporting an M2M eco-systems and their use in critical applications will require operators to design new processes and systems forprovisioning, real-time monitoring and support and billing/reporting.

    • Operators will attempt to nd higher throughput applications of M2M to increase revenues.

    • Cloud-based solutions• OTA services

    • Innovative M2M services

    Transform IT to providecapabilities to business based

    on cloud

    • Cloud solutions have gone beyond application hosting and storage. Telecoms players need to re-position themselves as solutionproviders widening their portfolio with personalized problem solving for their enterprise customers. .

    • Digital innovation factory

    • Go-to-market approach

    Churn (multi-SIM) possibilitydue to fragmented deviceusage revenue streams

    • Consumers have started using multiple device types (mobile phones / tablets / laptops / wearables etc.) for use at different types of theday and for different purposes.

    • Each device is an opportunity for a competitor to start a relationship with the customer. Telcos will have to identify and protect againstthe possibility of churn through these means.

    • Customer life cycle management

    • Device management

    • Single sign-on

    • Device security

    Telecoms key elements

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    Maturity

    Established Maturing buildersTransformers Builders Pioneers

    28 | Global Digital Telecoms Playbook

    Value chain deep diveRegulatory 

    Regulatory

    Access and devices

    New regulation

    Device management –consumption and

    connectivity devices

    EY digitalsolutions

    Building regulationpolicies and processes

    Digital risk andcybersecurity

    Regulation riskassessment

    Digital tax

    Regulation communicationand training

    Digital enterprisestrategy

    Customer duediligence

    Implementation

    Challenges EY point of viewSolutions for digitalenablement

    Meeting consumer protection norms • Stringent focus of regulators for meeting consumer protection rules, privacy and security• Dispute handling, managing customer experience, pricing transparency, consumer data protection

    • Information security maturity assessmentand road map,

    • Digital rights management capabilities

    Physical ling-based compliance • Consortia lobby to introduce digital compliance, making Telcos paper-free from all three perspectives — Outside-in(customer), inside-in (employee) and inside–out (vendor)

    • Digital compliance management

    New digital tax issues • Emerging trend of new rules for geography-specic taxation of digital income • Digital tax management

    Meeting government demands forpolicing

    • Governments to look at telco for assisting in law enforcement for their:

    • Surveillance needs and Data retention

    • Intellectual property rights violations, such as blocking of torrents

    • Consumer data protection

    • Digital law for data privacy

    Increasing regulations for new services • Operators to be increasingly asked to follow new regulations for new services like:• Regulating digital content

    • Regulations for new technologies — M2M, SDN, etc.

    • Regulations for data protection in cloud

    • Digital regulatory compliance processes

    Regulatory uncertainty on growth ofOTT services

    • Regulators globally are evolving their position on neutrality of access

    • Telcos to target partnership with OTTs, new business models and regulatory scrutiny

    • Social listening to understand consumersentiments

    Managing costly regulatory compliancein a cost-effective manner

    • Telcos to comply with regulations by building concrete process and KPIs• Improved compliance automation to manage multiple regulations and standards

    • Digital regulatory optimization strategy

    Telecoms key elements

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    Solutions and mapping to digital offerings

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    30 | Global Digital Telecoms Playbook

    EY digital solution offeringIntroduction

    1 4

    2 5

    3

    11 distinct offerings address alldigital challenges across sectorsand domains

    Benets realization frameworks areembedded in each solution to ensurebusiness outcomes are realized.

    Each offering is a suite of solutionstailored to suit the needs ofthe client.

    EY’s recent acquisitions bolster thetools and technology partnershipsrequired to digitize end to end.

    Solutions are modularized to prioritize

    point solutions over holistic approaches.

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    Digital solutions for telecomsMapped to EY digital framework

    • Tax advisory for cross-borderservices

    • Tax guidance for new serviceslike M2M, cloud, etc.

    • Digital law for data privacy• Digital regulatory compliance

    management• Digital compliance optimization

    • Digital risk and cyber security• Consumer data protection• Device security

    • Digital ledger management

    Analyzing

    Digital risk and cybersecurity

    Digital law

    Digital tax

    Digital supply chain

    Digital operations

    Digital technology

    Experience design

    Digital transactions

    Digital enterprise strategy

    Sensing

    • Digital innovationfactory

    • Product experienceengineering

    • Digitized product lifecycle management

    • Digitized price/modeldiscovery

    • Employee gamication• Crowdsourcing

    • Enterprise operatingmodel

    • Big data, analytics andinsights

    • Complex customerinteraction analysis

    • Network costoptimization

    • Skills and competenciesassessment

    • Talent management• Knowledge

    management• Collaboration and

    productivity tools• Omni-channel

    enablement• Virtual training

    • Due diligence• M&A• Post-merger integration

    • Customer experiencemanagement

    • Self care• Proactive customer care

    • Simulation tools• Automated feedback• Test scenarios

    • Digital supply chainmanagement

    • Digitize partnerinterfaces

    • Partnerperformancemanagement

    • Demandforecasting

    • Digital contentdistribution

    • Digital assetmanagement

    • Digital technology roadmap

    • Digital architecture forfuture telco

    • Integrated billingsolutions

    • Cloud solutions• Network asset

    management• Monetizing network data

    • Digitized networkmonitoring

    • Device management• Converged access

    solution• Go-to-market approach• Mobility solutions for

    enterprise• Customer life cyclemanagement

    • Digital marketing• Social listening and

    analytics

    • Digital acquisition• Digital distribution

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    Deploying cross service line digital solutions

    Advisory Transactions Tax Assurance

    Grow Optimize Protect

    32 | Global Digital Telecoms Playbook

    The future of telecomsDeploying tailored digital solution…delivering accelerated solutions

    InnovationDigital

    enterprisestrategy

    Digitaltransactions

    Experiencedesign

    Digitaltechnology

    Digitaloperations

    Digitalsupply chain

    Digital tax Digital lawDigital riskand cybersecurity

    Digitalaccounting

    Network convergent technology and infrastructure

    1 Shorter life cycle of newtechnologies(2G/3G/4G)

    2How to use customer data andinsights for differentiated customerexperience

    3Absence of device ecosystem for3G/4G/5G

    4 Asset tracking and management

    5 High O&M cost contribution fromactive/passive components

    Critical solutions

    Good to have

    Enablers

    Not relevant

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    Deploying cross service line digital solutions

    Advisory Transactions Tax Assurance

    Grow Optimize Protect

    33 | Global Digital Telecoms Playbook

    The future of telecomsDeploying tailored digital solution…delivering accelerated solutions

    InnovationDigital

    enterprisestrategy

    Digitaltransactions

    Experiencedesign

    Digitaltechnology

    Digitaloperations

    Digitalsupply chain

    Digital tax Digital lawDigital riskand cybersecurity

    Digitalaccounting

    Products and services

    1 Driving product innovation

    2 Driving pricing innovation

    3Competition from OTTs in B2B space(e.g., Skype for business)

    Critical solutions

    Good to have

    Enablers

    Not relevant

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    Deploying cross service line digital solutions

    Advisory Transactions Tax Assurance

    Grow Optimize Protect

    34 | Global Digital Telecoms Playbook

    The future of telecomsDeploying tailored digital solution…delivering accelerated solutions

    InnovationDigital

    enterprisestrategy

    Digitaltransactions

    Experiencedesign

    Digitaltechnology

    Digitaloperations

    Digitalsupply chain

    Digital tax Digital lawDigital riskand cybersecurity

    Digitalaccounting

    Fulllment and billing

    1 Building trusted billing relationship

    2High time to market due to legacybilling system complexities and lackof integration across services

    3Currently assurance is at a service/product level

    Critical solutions

    Good to have

    Enablers

    Not relevant

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    Deploying cross service line digital solutions

    Advisory Transactions Tax Assurance

    Grow Optimize Protect

    35 | Global Digital Telecoms Playbook

    The future of telecomsDeploying tailored digital solution…delivering accelerated solutions

    InnovationDigital

    enterprisestrategy

    Digitaltransactions

    Experiencedesign

    Digitaltechnology

    Digitaloperations

    Digitalsupply chain

    Digital tax Digital lawDigital riskand cybersecurity

    Digitalaccounting

    Customer interface operations

    1 Varied customer experience acrossbusiness units and touch points

    2Tedious manual process of acquiringcustomers

    3Detecting and xing customerexperience degradation

    4Operators have a sales-focusedapproach

    5Share of high-cost traditionalchannels for customer awareness inBTL is high

    Critical solutions

    Good to have

    Enablers

    Not relevant

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    Deploying cross service line digital solutions

    Advisory Transactions Tax Assurance

    Grow Optimize Protect

    36 | Global Digital Telecoms Playbook

    The future of telecomsDeploying tailored digital solution…delivering accelerated solutions

    InnovationDigital

    enterprisestrategy

    Digitaltransactions

    Experiencedesign

    Digitaltechnology

    Digitaloperations

    Digitalsupply chain

    Digital tax Digital lawDigital riskand cybersecurity

    Digitalaccounting

    Talent and culture

    1 Attracting new talent with digitalskill set

    2Coexistence of people with digitalskill set and existing employees

    3Upgrading skills in a distributedenvironment

    4Developing a high-performanceculture with motivated employees

    5Impart specic skills at the right

    time to each employee to help thecompany

    Critical solutions

    Good to have

    Enablers

    Not relevant

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    Deploying cross service line digital solutions

    Advisory Transactions Tax Assurance

    Grow Optimize Protect

    37 | Global Digital Telecoms Playbook

    The future of telecomsDeploying tailored digital solution…delivering accelerated solutions

    InnovationDigital

    enterprisestrategy

    Digitaltransactions

    Experiencedesign

    Digitaltechnology

    Digitaloperations

    Digitalsupply chain

    Digital tax Digital lawDigital riskand cybersecurity

    Digitalaccounting

    Partner and ecosystem

    1 Building a long-term strategy forpartner selection and grooming

    2Creating an operator-partnerecosystem

    3Creating digital awareness amongpartners

    4Cost reduction in operations throughpartner efciency improvement

    5 Seamless partner payouts

    Critical solutions

    Good to have

    Enablers

    Not relevant

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    Deploying cross service line digital solutions

    Advisory Transactions Tax Assurance

    Grow Optimize Protect

    38 | Global Digital Telecoms Playbook

    The future of telecomsDeploying tailored digital solution…delivering accelerated solutions

    InnovationDigital

    enterprisestrategy

    Digitaltransactions

    Experiencedesign

    Digitaltechnology

    Digitaloperations

    Digitalsupply chain

    Digital tax Digital lawDigital riskand cybersecurity

    Digitalaccounting

    Enterprise technology

    1 Legacy stacks leading to disparate ITlandscape

    2Disintegrated network and ITelements in the age of convergence

    3Transform IT to provide capabilitiesto business based on cloud

    4Use of big data and analytics fornewer revenue streams

    Critical solutions

    Good to have

    Enablers

    Not relevant

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    Deploying cross service line digital solutions

    Advisory Transactions Tax Assurance

    Grow Optimize Protect

    39 | Global Digital Telecoms Playbook

    The future of telecomsDeploying tailored digital solution…delivering accelerated solutions

    InnovationDigital

    enterprisestrategy

    Digitaltransactions

    Experiencedesign

    Digitaltechnology

    Digitaloperations

    Digitalsupply chain

    Digital tax Digital lawDigital riskand cybersecurity

    Digitalaccounting

    Devices

    1 Varied product performance acrossdevices

    2Inability to abstract device fromnetwork for newer IP-basedtechnologies

    3 Less ARPU from M2M

    4Churn (multi-SIM) possibility due tofragmented device usage

    5 Varied product performance acrossdevices

    Critical solutions

    Good to have

    Enablers

    Not relevant

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    Deploying cross service line digital solutions

    Advisory Transactions Tax Assurance

    Grow Optimize Protect

    40 | Global Digital Telecoms Playbook

    The future of telecomsDeploying tailored digital solution…delivering accelerated solutions

    InnovationDigital

    enterprisestrategy

    Digitaltransactions

    Experiencedesign

    Digitaltechnology

    Digitaloperations

    Digitalsupply chain

    Digital tax Digital lawDigital riskand cybersecurity

    Digitalaccounting

    Regulatory

    1 Meeting consumer protection norms

    2Meeting government demands forpolicing

    3Increasing regulations for newservices

    4Regulatory uncertainty on growth ofOTT services

    5Managing costly regulatory

    compliance in a cost-effective andmanner

    Critical solutions

    Good to have

    Enablers

    Not relevant

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    Digital Maturity Modeling toolkit

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    Tools and frameworks

    At EY we work collaboratively, bringing together experience across advisory, transaction, tax and assurance to deliver digital services. EY has developed anextensive set of tools and frameworks to enable the digital journey for customers

    # Tool/Framework Description

    1 Digital Transformation Framework to approach digital

    2 Digital Portfolio Maturity Assessment Maturity model toolkit

    3 Social Media and Digital Diagnostics Tool Tool to assess the digital and social media journey

    4 Customer Analytics Framework Customer Insights Tool

    5 Crimson Hexagon Social listening and analytics tool

    6 Customer RoI Parameters to be considered while deriving RoI

    7 SEO Framework Parameters for SEO strategy

    8 Digital Realization Framework Framework for digital transformation

    9 Social Media Governance SM governance framework

    10 EY Social Community Maturity Model Assess social media maturity

    11 Channel Engagement MaturityAssess how efciently engagement in and handoffs between distributionchannels happens

    12 Innovation and Digital Realization™ Framework Customer engagement and innovation questionnaire

    13 Digital Diagnostic Tool and Methodology Digital diagnostics to identify interventions and build road map

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    Maturity model toolkit: a snapshot

    Maturity stage

    Business process characteristics

    Branding Marketing- Campaigns, communication, customer insight

    and analytics

    Products, services and new product development

       L  e  a   d   i  n  g

    Digitally transformed and

    best in class. Infused digital

    throughout the organization.

    Leveraging digital for

    competitive advantage.

    1. Use of automated sentiment analytics across social media to track andunderstand the attitude of consumers toward brand.

    2. Consumer is the co-creator of the brand.

    3. Global benchmarks and best practices as a KPI for measuringbrand sentiment.

    4. Consumers are brand advocates and have a high loyalty and afliationwith the brand touch points.

    1. Digital strategy is linked to business outcomes.

    2. Use of analytics and customer insights before and after every campaignto monitor KPIs.

    3. Digital and social culture at an enterprise level.

    4. People, processes and technology aligned to digital objectives.

    1. Accepts payments for products and services via social commerce,mobile commerce and electronic wallets.

    2. Products and services are recommended to online visitors/customers byusing online behavioural analysis and “mood recognition”technologies.

    3. Monitors social media (sentiment analysis) for purchasing signals andtrigger-related offers to all customer segments across all digital andnon-digital channels.

    4. Leverage digital technology for rapid prototyping and visualization ofnew products.

       E  s   t  a   b   l   i  s   h  e   d

    Leveraging digital

    successfully, driven by top

    leadership. Clear road map

    and on parwith competitors.

    1. Integrated customer analytics, customer segmentation and targeting,campaign development and management by using digital CRM tools.

    2. Strive to achieve a uniform customer experience across, platforms,devices, channels throughout customer life cycle.

    1. Leveraging digital and social for brand building and acquisition as one ofthe primary objectives.

    2. Higher brand recall and loyalty.

    3. One of the buzziest brand on social media.

    4. Very likely to enjoy higher positive sentiment.

    5. Leverages analytics at every stage for drawing the next line of attack.

    1. Allows customers to purchase products and services in a one-click,simple experience through their preferred digital channels: social medias(Facebook), e-commerce portals (eBay and Amazon), aggregators (Mon-eysavingexpert.com) as well on our website and via smartphone apps.

    2. Websites and mobile applications are integrated with popular mobile andsocial networks.

       C  o   l   l  a   b  o  r  a   t   i  v  e

    Working extensively with

    fans, followers, external

    partners and internal public

    towards a higher brand

    impact and better CX.

    Exploring and experimenting

    with digital to achieve

    objectives

    1. Introducing campaigns, crowdsourcing, tools and digital properties toco-create the brand.

    2. Leverage free digital content (e.g., youtube videos) and digital gamingaround brand, products and services to interact with customers andenhance their experience.

    1. Co-creatin g marketing campaign s with a target set to nd new customers.

    2. More focus on establishing customer relationship

    3. Reach out to inuencers and a wider support base for brand impactand reach.

    4. Use digital technology to drive collaboration, knowledge sharing, andidea development and promotion.

    1. Communicate with customers and collect their feedback on website andsocial media (Facebook, Twitter).

    2. Leveraging digital for consumer dip stick analsis, polls, feedback forimproving existing products and services and new product development

    3. Seeks customer feedback via websites, online communities, social mediaand mobile apps after a sale to keep the discussion going and recom-mend similar or complementary products and services.

       D  e  v  e   l  o  p   i  n  g Enhancing digital capabilities

    in pockets but not yet

    realizing signicant value

    from investments.

    1. May have recently established digital properties across channels andplatforms.

    2. Push information about company, products and promotions throughsocial media (Facebook, Twitter) and online advertising majors(Google, Yahoo!).

    1. Presence on select social channels but lack of focus on brand impact,acquisition or CRM.

    2. Building web and business analytics capabilities.

    1. Leverages existing online marketplaces to sell products and services.

    2. Accept all traditional payments means and allows online transactions tobe paid via payment networks (PayPal, Amazon, Google Checkout).

       B  a  s   i  c

    Little focus or investment indigital. No clear leadership

    for digital and lagging

    behind peers.

    1. May broadcast information about our company and offerings throughmass email, our website and social media presence

    2. Would have recently initiated digital journey for brand impact

    1. Not enough investments in creating digital touch points

    2. Yet to initiate digital journey

    3. Heavy dependencies on ATL and traditional media

    1. Has web presence that provides information on products and services.

    2. Has built e-commerce capabilities with payment gateway and backendlogistics

    3. Recommends, Cross sells products or services to online customersthrough engine

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    44 | Global Digital Telecoms Playbook

    Maturity model toolkit: a snapshot

    Maturity stage

    Business process characteristics

    Sales Customer care Connected workforce Digital HR

       L  e  a   d   i  n  g

    Digitally transformed and

    best in class. Infused digital

    throughout the organization.

    Leveraging digital for

    competitive advantage.

    1. Target product and service recommendations toonline visitors/customers by using onlinebehavioral analysis and “mood recognition”technologies.

    2. Selling via time-based offers and cyber couponing onsocial media

    3. Monitor social media (sentiment analysis) forpurchasing signals and trigger related offers tocustomer segments across all digital and non-digitalchannels

    1. Use of innovative servicing channels like intelligentFAQs, virtual assistants, click-to-chat andclick-to-call.

    2. Encourage self-help peer-to-peer forums forcustomer service and queries.

    3. Proactively scan web and reach out to customer forany negative sentiments, customer requirementsand other fulllment.

    4. Establish social CRM KPIs and business objectivesfocused on lowering cost of servicing.

    1. Gamication for training, making work fun andchanging behaviors.

    2. Internal social network for co-creating, sharing,building sense of community, building employeeloyalty and networking (Yammer).

    1. Seamless integration between career website andother job search sites (LinkedIn, Monster.com) to en-able prospective employees to apply using existingsocial networks credentials.

    2. Leverage simulated reality training to improvetime-to-competency by aligning training efciencyand the employee interests and skills.)

       E  s   t  a   b   l   i  s   h  e   d

    Leveraging digital

    successfully, driven by top

    leadership. Clear road map

    and on par with competitors.

    1. Digital fulllment and new customer acquisition (CAF) via digital channels

    2. No dependencies on brick-and-mortar shops forsubscribing to the network, change plans / tariff, buyVAS or update personal details.

    3. Salesforce equipped with smartphones and tabletsto perform sales tasks and process orders and pay-ments on the go or at physical locations

    1. Proactively use social media (Facebook, Twitter),complaints aggregator sites (e.g., Complaints board)and user communities to address complaints withimmediate resolutions.

    2. Establish a dedicated social media customer griev-ance cell with minimum TAT and SLAs.

    3. Prioritize engagement on a digital channel based onsentiment analysis (Twitter sentiment, socialeyez.com).

    1. Telepresence and video conferences are standardways to conduct business.

    2. Leverage collaboration and ideation environment/platform to crowd-source ideas and insight to helpstrategic initiatives (e.g., IBM JAM).

    1. Online tools for employee performance evaluationand feedback.

    2. Prospective employees can chat real-time with ex-isting employees or get in touch via forums or socialmedia (Twitter and Facebook page).

       C  o   l   l  a   b  o  r  a   t   i  v  e

    Working extensively with

    fans, followers, external

    partners and internal public

    towards a higher brand

    impact and better CX.

    Exploring and experimenting

    with digital to achieve

    objectives

    1. Test their ideas and designs on social media andcollect feedback using social media analytics

    2. Sales force leverages mobile SFA applications thatprovide access to client, contact and pipeline infor-mation and proactively notify them of upsell andcross-sell opportunities

    1. Customers can interact with the content postedabout company or offerings (Facebook “Likes,”comments) and share it on their social networks(Facebook, LinkedIn) and via email.

    2. Review comments received on web and social mediapresence (Facebook, Twitter) and via email to createcustomer satisfaction reports.

    1. Leverage telepresence/video conferencing capabili-ties to all employees to support remote collaborationand reduce travel.

    2. Provide online tools for collaboration, instant mes-saging project management, sharing ideas, knowl-edge base among teams and individuals.

    1. Organize interactive online training sessions usingWebEx and GoToMeeting.

    2. Communicate company news, mission, values andlife through social media and blogs and build com-munities to engage with prospective employees.

       D

      e  v  e   l  o  p   i  n  g

    Enhancing digital capabilities

    in pockets but not yet

    realizing signicant value

    from investments.

    1. Review industry benchmarks, customer feed-back, price comparison websites and the feedbackreceived from social buzz to ensure correct pricepositioning

    2. Process most of the orders and fulllment requests

    manually

    1. Customer service through standard complaint pro-cess (mail, email, phone).

    2. Yet to establish Social Media CRM cell for the brand.

    3. Lack of Governance Framework, Escalation Matrix,Crisis Matrix and ORM on Digital Media.

    1. Allow employees to access the company networkremotely.

    2. Support and encourage exible working programswhere appropriate and provide employees with thenecessary mobile infrastructure such as laptops and

    smartphones.

    1. Post job ads on social media (Facebook , Twitter) andprofessional networks (LinkedIn, Doostang).

    2. Online tests for recruitment and online trainingmodules available.

       B  a  s   i  c

    Little focus or investment in

    digital. No clear leadership

    for digital and lagging

    behind peers/

    1. Based on product strategy, the brand recommendscomplementary products or services via sales force,when users interact with digital channels

    1. Use of basic digital servicing channels (online FAQ,email, web forms).

    2. Servicing experience is not consistent across allplatforms.

    3. Heavy dependencies on brick-and-mortar stores forfulllment.

    1. Provide laptops and mobile phones to some employ-ees, on a discretionary basis.

    2. Some meetings via conference calls.

    1. Posts new positions on career website or internet jobboards ( Monster.com ).

    2. Standard application process via career website.

    3. Face-to-face interviews and training courses.

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    EY capabilities

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    46 | Global Digital Telecoms Playbook

    Case studies

    Client Background Our Contribution

    Tier 1European operator

    • The client is the No. 3 operator in France with 7,500 employees, 650branded shops and 12 million customers.

    • Beyond the price war since the arrival of Free on the mobile market, theclient wants to differentiate through digital CE.

    • The client wants to adapt its offers, process and organization tofast-changing customer demands and expectations in the new digitalparadigm: customization, self-sufciency, touch point consistency,multi-screen and socialization.

    • Understanding of the customer behaviors on the main customers’ touchpoints (physical shops, call center,dematerialized channels, etc.)

    • Very fast decision-making based on the simplication of the customerexperience

    • New methodologies of project management, from “the customer stories” tothe “Minimum Viable Product” witha three month cycle to assist inimplementation

    Tier 1operator in New Zealand

    • The client engaged EY with an intent to shift the customer service paradigmthrough digitization in face of declining market dominance.

    • Transformation of governance of digital channels• Key risks and controls to manage digital interfaces• Streamlining social media channels

    Greeneld telecomsoperator in India

    • The client was deploying a large-scale digitization project that willrevolutionize telecoms in the country.

    • EY was engaged to design the GTM strategy and a digital operating modelfor customer operations.

    • Signicant lead time reduction for activation• Paperless activation a rst in India• Customer experience as a differentiator using digital approach• Designed digital concepts

    Tier 1operatorin Australia

    • The client wanted to deliver signicant productivity benets and improvecustomer service to achieve competitive advantage in the marketplace.• The wider client program (Project New) involved all the major business units

    within the organization, whereas this engagement relates only to theMobiles, Broadband and Bundles product offerings.

    • Assisted in delivering signicant, quantied benets identied throughprocess redesign with annualized benets of approximately $650m achievedthrough productivity improvements and reductions in costs, transactiontimes, variance and rework

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    47 | Global Digital Telecoms Playbook

    EY global advisors

    Prashant Singhal, Global Telecoms Leader

    Industry expert, leading transformations for operations andselection, pricing, distribution and launch strategy

    Frederic Huet, Partner, UK

    Convergent strategies for both telecoms and Media, as well asdue diligence and pre-due diligence

    Amit Sachdeva, Global Telecoms Advisory Leader

    Industry advisor, leading transformations for operations andselection, pricing, distribution and launch strategy

    Bart Van Droogenbroek, Global Telecoms Tax Leader,Luxembourg

    Supply chain management, as well as financing, holdingand intellectual property structures through Luxembourgintermediate entities

    Robert Heukamp, Executive Director, France

    Strategic transformation projects in telecoms and mediasector, pushing topics like 4G, FTTH, IPTV, DVB-T, etc.

    Praveen Shankar, Partner, UK

    Leads the UK and Ireland supply chain team in the telecoms,

    media and technology industry sector

    Vincent Douin, Executive Director, France

    15 years of experience in telecoms, with capabilities/experience in emerging markets, marketing and sales strategyand go-to-market

    Joongshik Wang, Partner, Singapore

    Capabilities/experience in commercial due diligence,

    turn-around strategy, digital business and strategic marketingin telecoms and media industry, payment and retail industry

    Adrian Baschnonga, Associate Director, UK

    Lead analyst at Global telecoms center, responsible for EY’s

    thought leadership output

    Anurag Malik, Partner, India

    A decade of HR consulting experience with CEOs and HR headsof more than 100 organizations globally and across almost allsectors

    GK Anand, Director, India

    Customer experience and service strategy design, business-wide cost reduction, IT strategy and transformation

    Shilpa Singhai, Senior Manager, India

    Industry expert, leading transformations for operations andselection, pricing, distribution and launch strategy

    Networkconvergent

    technology and

    infrastructure

    Products andservices

    Fulllmentassuranceand

    billing

    Customerinterface

    operations

    Talent andculture

    Partner andecosystem

    Enterprisetechnology

    Devices

    Regulatory

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    48 | Global Digital Telecoms Playbook

    Acknowledgements

    Shilpa Singhai, Senior Manager, India

    Industry expert, leading transformations for operations andselection, pricing, distribution and launch strategy

    Ankit Srivastava, Senior Consultant, India

    Experienced in product management, customer experienceand sales, with a focus on digital products

    Kumarmangalam Moondra, Senior Consultant, India

    Experience in GTM, cost management, process developmentand customer experience transformation in telecoms

    Akanksha Waingankar, Senior Consultant, India

    Experience in leading the sales process for B2B services,including strategy development and salesforce training intelecoms

    Parishrut Jani, Senior Consultant, India

    Experience in digital and social media, delivering strategy,planning and execution with analytics

    Digital Product Service

    Digital Sales and Distribution Digital Marketing

    Digitized Processes

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    Glossary

    Acronym Term

    ARPU Average Revenue Per User

    CSP Communication Service Provider

    EAP Extensible Authentication Protocol

    IoT Internet Of Things

    M2M Machine To Machine

    MACD Modify Add Create Delete

    MVNO Mobile Virtual Network Operator

    NBA Next Best Action

    NOC Network Operations Center

    O&M Operations and Maintenance

    Acronym Term

    OTA Over-The-Air

    OTT Over-The-Top

    P2P Peer-To-Peer

    PAYG Pay As You Go

    PMI Post Merger Integration

    SDN Software Dened Network

    SEO Search Engine Optimization

    VAS Value Added Services

    VOC Voice Of Customer

    WAP Wireless Application Protocol

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    EY | Assurance | Tax | Transactions | Advisory

    About EY

    EY is a global leader in assurance, tax, transaction and advisory

    services. The insights and quality services we deliver help build trust

    and condence in the capital markets and in economies the world

    over. We develop outstanding leaders who team to deliver on our

    promises to all of our stakeholders. In so doing, we play a critical

    role in building a better working world for our people, for our clients

    and for our communities. EY refers to the global organization, and

    may refer to one or more, of the member rms of Ernst & Young

    Global Limited, each of which is a separate legal entity. Ernst & Young

    Global Limited, a UK company limited by guarantee, does not provide

    services to clients. For more information about our organization,

    please visit ey.com.

    © 2015 EYGM Limited.

    All Rights Reserved.

    EYG no. EF0157

    ED None

    This material has been prepared for general informational purposes only and

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    advice. Please refer to your advisors for specific advice.

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