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The Mobile Customer The Mobile Customer of the Future of the Future Anywhere, Anytime Anywhere, Anytime Witold Sitek Witold Sitek Partner Partner
The Mobile Customer The Mobile Customer of the Future of the Future
Anywhere, AnytimeAnywhere, Anytime
Witold Sitek Witold SitekPartnerPartner
Witold Sitek...
…is a partner with Andersen Consulting ANS in Norway. He is member of the executive team for our ”Communication & High Tech” practice i Oslo. He is in charge of the focus area ”Innovation and Architecture” and is a member of the”Technology Architecture Council” with primary responsibility for mobile solutions.
Besides extensive experience from client projects in Norway and abroad, he has also worked 2 1/2 years at Andersen Consulting’s global Technology Parks in USA.
What are we going to cover?What are we going to cover?
Why do we believe in mobility?Why do we believe in mobility? What should companies do in order to prepare What should companies do in order to prepare
themselves?themselves? Why should they start now?Why should they start now?
“What is now proven was once only
imagined”
William Blake
Mobility:Mobility:Focus on the core - not the hypeFocus on the core - not the hype
“Everybody overestimates what you’ll accomplish in a year and nobody can comprehend what’s going to happen in five.”Paul Sagan, President and Editor of New Media at Time Inc.
What will your company do What will your company do differently when...differently when...
……you have you have continuous accesscontinuous access to your customers 24 hours to your customers 24 hours a day?a day?
……you know you know wherewhere the customer is? the customer is?
……you know you know whatwhat the customer is looking for? the customer is looking for?
……the same goes for your employees?the same goes for your employees?
……the same goeas for your business contacts? the same goeas for your business contacts?
B2C
B2E
B2B
Simple is beautifulSimple is beautiful
+
Most attractive and profitable part of the Telecom Most attractive and profitable part of the Telecom marketmarket
More mobie phones than regular phonesMore mobie phones than regular phones Covers the customer’s basic communication Covers the customer’s basic communication
needsneeds Is a personal deviceIs a personal device Behavioral changesBehavioral changes New marketNew market
=
Exciting possibilities Exciting possibilities
+ =
What if the same
happened to data traffic?
Technology drives the marketTechnology drives the market
BroadbandBroadband Mobile/WirelessMobile/Wireless ““Always on”Always on” PositioningPositioning
Payment Payment Voice recognitionVoice recognition SimplicitySimplicity
Japan is the leading Mobile Japan is the leading Mobile Internet marketInternet market
12 of 15 millioner users*12 of 15 millioner users* Focus on Focus on ServicesServices and and
CustomersCustomers, not technology, not technology ““Fair” price modelFair” price model Win-Win business modelsWin-Win business models High number of core quality High number of core quality
servicesservices Many entertainment servicesMany entertainment services Proprietary platformProprietary platform
*Source: IT-Avisen sep 2000
Tomorrow’s demanding Tomorrow’s demanding customerscustomers
Require accessibility and simplicity Require accessibility and simplicity via multiple via multiple channels and devices, eg. Smartphones, web, channels and devices, eg. Smartphones, web, interactive TV and physical channels.interactive TV and physical channels.
Expect to same time and money Expect to same time and money by using the net.by using the net. Require both value and entertainmentRequire both value and entertainment Are loyal to only a few sites.Are loyal to only a few sites. Expect an answer Expect an answer here and nowhere and now
Instinctively uses Instinctively uses the net the net to perform to perform taskstasks
Young Young trendmakerstrendmakers
• “Smart” environments• Equipment communicates wirelessly
““Situated Computing”Situated Computing”
Situated computing -Situated computing -Transactions enerywhereTransactions enerywhere
Your smartphone pays your taxi ride via creditcard by communicating with in-board equipment in the taxi
Your smartphone uses your mobile wallet to pay for your ride as you enter ore exit the bus
Why do we believe in mobility?Why do we believe in mobility? What should companies do in order to prepare What should companies do in order to prepare
themselves?themselves? Why should they start now?Why should they start now?
“Daring ideas are like chessmen moved forward.
They may be beaten, but they may start a winning game.”
Goethe
TV
Move your business, not your Move your business, not your customercustomer
Web
MobileInternet
Interactive TV
”My business is where my customers are”
The company must reach and serve the customer The company must reach and serve the customer anywhere, anytimeanywhere, anytime
CRM will require service CRM will require service across channelsacross channels Channels must be Channels must be combinedcombined correctly for maximum correctly for maximum
effectivenesseffectiveness Usage and buying patternsUsage and buying patterns are dependent on channel are dependent on channel
Physical world
Gravitation field in cyberspaceGravitation field in cyberspace
Higher quaity of content and services
Stronger brand
More transactions and
improved content
Better loyalty
Targeted marketing / ower customer acquisition costs
Improved customer value and
service
Economic effect
More sophisticated knowledge about
customers
Higher marins
Attract the best partners
Loyalty to community
Network effect
Customer insight
Attract new customers
Early participants will establish relations to customers and the bestEarly participants will establish relations to customers and the best
More customers
Stronger network
Source: Andersen Consulting Analysis
Kilde: MMI 2000
0 20 40 60 80
Difficult to order and pay
Product not delivered on time
Inadequate return-and complaint policies
Provider may not be trusted
The quality of the product is not as promised
Account or credit card number maybe exposed
Prosent
Basic needs are most important to cover
Build trust through customer service and cooperation with partners with good reputation
Why do few people shop on the net ?Why do few people shop on the net ?
Trust is a bigger issue than security
Tomorrow’s top companiesTomorrow’s top companies
Are extremely customer focusedAre extremely customer focused Are always availableAre always available through mulitple channels through mulitple channels Build loyalty Build loyalty through products and services that reflect through products and services that reflect
understanding of customers’ needsunderstanding of customers’ needs Build networksBuild networks with other companies that have relations with other companies that have relations
to customers in the same segmentsto customers in the same segments Build trustBuild trust - cooperate with partners with a good - cooperate with partners with a good
reputationreputation Deliver as promisedDeliver as promised - Have world - Have world
class logistics and customer class logistics and customer servicceservicce
Set the rules Set the rules and are excellent on and are excellent on timingtiming
Why do we believe in mobility?Why do we believe in mobility? What should companies do in order to prepare What should companies do in order to prepare
themselves?themselves? Why should they start now?Why should they start now?
“Business is like riding a bicycle. Either you keep
moving or you fall down.”
John D. Wright
Some things move quickly Some things move quickly
Do not wait for 3G in 2002Do not wait for 3G in 2002 The most important technical obstacles will be The most important technical obstacles will be
overcome already in Q2 2001.overcome already in Q2 2001. SpeedSpeed ““Always on”Always on” Two-way communicationTwo-way communication
PositioningPositioning SecuritySecurity
Other things take time...Other things take time...
……to understand the to understand the possibilities of mobilitypossibilities of mobility
Positioning, time Positioning, time sensivitivitysensivitivity
……to changeto change Processes, Products, Processes, Products,
Organisation, ITOrganisation, IT ……to establish networksto establish networks
Find the right partners Find the right partners and alliancesand alliances
Mobile internetMobile internetPossible evolution scenarioPossible evolution scenario
First came SMS, ring tones, logosFirst came SMS, ring tones, logos Today’s WAP is an intermediate step in a Today’s WAP is an intermediate step in a
quickly evolving mobile internet technologyquickly evolving mobile internet technology Standards - incompatibilitiesStandards - incompatibilities Web déja vu Web déja vu
From publish to interactio to transactionFrom publish to interactio to transaction More speed, functionality, processing More speed, functionality, processing
power and memorypower and memory Will not replace other channelsWill not replace other channels Separate channel - requires customizationSeparate channel - requires customization
Higher throughput - Higher throughput - new possibilities new possibilities
Time
Throughput
GSM
GPRS
UMTS
2001 2002?
GSM 9.600 bps GPRS Up to: 164.000 bps (x15) UMTS Outdoors: 384.000 bps (x40)
Indoors: 2.000.000 bps (x200)
SummarySummary
Why do we believe in mobility?Why do we believe in mobility?• UniqueUnique possibilitiespossibilities for customers, employees and business for customers, employees and business
partnerspartners
• Customers will Customers will expect accessexpect access to company inormation and services to company inormation and services via mobile devicesvia mobile devices
What should companies do in order to prepare What should companies do in order to prepare themselves?themselves?
• Understand the potential Understand the potential of the mobile channel.of the mobile channel.
• Plan the Plan the channel and alliance strategieschannel and alliance strategies
Why should they start now? Why should they start now? • Several important technical barriers Several important technical barriers are disappearingare disappearing
• It takes timeIt takes time to change and establish networks to change and establish networks
GPRS
UMTS
3G
2,5GBluetooth
Mobile Operator Wireless LAN
WAP
iMODEWeb clipping
AvantGo
HSCSD
