2015 global mobile commerce enabling technology leadership ... · • converged wallet: a combined...
TRANSCRIPT
2015
2015 Global Mobile Commerce Enabling Technology Leadership Award
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Contents
Background and Company Performance ........................................................................ 3
Industry Challenges .............................................................................................. 3
Ericsson's Technology Leverage and Customer Impact .............................................. 3
Conclusion........................................................................................................... 6
Understanding Enabling Technology Leadership ............................................................. 7
Key Benchmarking Criteria .................................................................................... 8
The Intersection between 360-Degree Research and Best Practices Awards ....................... 9
Research Methodology .......................................................................................... 9
About Frost & Sullivan ................................................................................................ 9
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Background and Company Performance
Industry Challenges
Approximately 75% of payments around the world are made in cash, and this number is
closer to 90% in emerging regions. The prevalence of cash transactions and unbanked or
underbanked consumers in emerging regions suggests robust opportunity for technology
providers. Consumers, retailers, financial institutions, and mobile operators all stand to
gain from mobilizing financial services; but significant challenges to implementation
remain. Digitized financial access demands security, flexibility, control, and immediate
access to information—which empowers consumers and supports more efficient financial
services. Moreover, establishing a global mobile financial framework is a huge undertaking
that is contingent on participants’ adherence to and respect of distinct regional regulatory
environments.
In order to ensure integrity and security, while also investing in relationship-building to
foster cooperation and trust, market participants must fully engage to understand the
diverse and multifaceted needs of customers on a region-by-region basis. Bringing mobile
financial services to emerging regions means spearheading a radical shift, so alignment
with regulators, governments, and institutions must be at the forefront of strategies for
extending products and services. Frost & Sullivan research suggests that bringing
mCommerce to emerging markets around the world means bringing financial control to
consumers and societies, but this is contingent on technology providers’ ability to offer
flexible, open, secure, and multi-channel implementation. With a targeted focus on
bringing mobile financial solutions to emerging regions and creating a truly global
standard to enable the full digitization of commerce, Ericsson is reaching out to populous
regions where global mobile deployment was previously stymied by seemingly
insurmountable challenges.
Ericsson's Technology Leverage and Customer Impact
Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. With a mission to “lead
transformation through mobility,” Ericsson is a global leader in communications and
technology. The company provides software and infrastructure solutions in mobile and cloud
communications. Over 40% of the global mobile traffic is currently carried over Ericsson
networks.
Commitment to Innovation and Creativity
Frost & Sullivan’s independent analysis indicates mobile financial services can empower
consumers by mobilizing access to information and digital assets, managing the lifecycle
of these assets, and using digital credentials when making a face-to-face purchase.
Ericsson is in a strong position to facilitate such access. The company supports networks
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that connect more than 2.5 billion subscribers globally, and in 2012 the company
partnered with Western Union to create an expansive money transfer network,
differentiated by digitized wallet services that connect financial institutions and mobile
network operators and add value to their consumers. The company is driven by a mission
to bring mCommerce benefits to businesses on a global scale and in a manner that is
secure and compliant to regional regulations. In fact, the Ericsson Wallet Platform was the
first mobile money service to earn the Payment Card Industry Security Standards
Council’s Payment Application Data Security Standard (PA-DSS v3.0). Ericsson’s rich
history and expertise place the company in a unique position to intimately understand and
see potential of technology communications.
More specifically, Ericsson offers an end-to-end mCommerce solution portfolio that
provides the technology, platform, and support for partners to succeed in an inherently
complex and fragmented mobile commerce market. The key pillars of the solution include
the following:
• Wallet Platform: Enables secure and convenient mobile financial services (such as
money transfer and payments)
• Converged Wallet: A combined wallet platform and charging system which enables
operators to reuse existing assets and bundle telecom/financial services
• mCommerce Interconnect: Offers interoperability between mobile wallet providers
as well as established payment networks
• Professional Services: Comprehensive professional services from business planning
and compliance to organization and processes
Customer Purchase and Ownership Experience
The customer needs, adoption potential, and challenges to mobilizing financial and
transactional services vary across emerging market regions. In Sub-Saharan Africa, for
example, Frost & Sullivan research shows that government efforts have been crucial in
enabling the growth of mobile finance by actively looking to increase financial inclusion
through mCommerce, as it is a more affordable alternative to giving unbanked customers
access to banking services. More specifically, in Ghana operators are not licensed to offer
mobile money services whereas in Kenya the regulator has given operators a fair amount
of latitude to drive the market. As a result, Kenyan operators have the incentive to boost
service penetration and increase agent networks, meaning there is more of a barrier in
Ghana. Another example is found in Latin America, where Ericsson’s ConsumerLab
research has identified distrust toward institutions and a strong concern about security at
the consumer level.
Meanwhile, carrying cash can be dangerous and make consumers more susceptible to
robberies. To empower those who are still unbanked in Latin America, the company’s
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strategy is to work with customers to understand how transactions are currently made,
address security concerns by educating consumers, work with regulators, and ultimately
provide the tools to bring mobile wallets to consumers and facilitate not only the
conditions but the actual adoption of mCommerce. In November 2014, the solution was
also deployed in Senegal as part of the Millicom Group, and expansion is continuing
globally at a rapid pace. This ultimately benefits merchants and communities, individual
consumers, Ericsson’s customers, and financial institutions.
Customer Service Experience
Customer service is the primary objective that feeds Ericsson’s practices of creating
genuine partnerships with each customer. The company provides technology and
expertise, but what really stands out is its willingness to get to the ground level and
understand not only customer needs, but what will make customers successful over the
long-term—which is contingent on the end users. Ericsson’s Mobile Wallet has been
deployed with MTN as partner in many countries in Africa (with further deployments in
currently in-process). As an example of the potential, the recent deployment with MTN
Uganda means Ericsson’s platform now reaches seven million MTN Uganda mobile wallet
users and 50,000 agents. This example proves the benefit to businesses and consumers,
who will be provided with significantly greater access when armed with a digitized wallet
than with traditional banking services.
To help roll out mutually beneficial solutions, Ericsson offers its customers support in the
form of its mCommerce Business Growth Toolbox, which comprises key elements to
achieving success in emerging market regions. To map out the opportunity in each region,
the following is offered:
• Workshops and strategy sessions
• Buisiness alignment briefings and product planning
• Growth driver identification
• Research
• Development support and partnerships
Ericsson’s rich history, diverse portfolio, and commitment to customer-first and forward-
thinking operations all contribute to the company’s current leadership as a
communications technology and services provider.
Brand Equity
Ericsson’s customers benefit from the company’s dedication to remaining at the forefront
of technology shifts. Holding over 35,000 patents, Ericsson’s portfolio includes 2G, 3G,
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and 4G technologies. With keen focus on achieving a single global network, Ericsson is
spurred by the transformative nature of technology to societies, and its culture of
innovation and investment in continued research and development nourish a total offering.
With partnership engagements in Latin America, Asia, Africa, and the Middle East, Ericsson
has unique insight into a dynamic and multifaceted mobile landscape and is making real
strides toward its vision of an interconnected world. Strong brand recognition and focus on
customer and consumer inclusion, despite barriers, reinforce the strength of the Ericsson
brand. Ericsson understands that by listening to the voice of the customer, it can best
understand the needs of a changing business landscape, and it is a company well-
equipped to anticipate and meet customer needs.
Conclusion
In markets around the world, mCommerce services go beyond enhancing business efforts
to also benefit individual consumers and societies. Frost & Sullivan’s independent analysis
of the Mobile Commerce market clearly shows that Ericsson is facilitating the challenging
but necessary shift toward a truly global mobile marketplace by focusing its efforts on
breaking down technology barriers in emerging markets. With its dedication to creating a
single, global standard, Ericsson has earned Frost & Sullivan’s 2015 Global Enabling
Technology Leadership Award.
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Understanding Enabling Technology Leadership
Ultimately, growth in any organization depends upon customers purchasing from your
company, and then making the decision to return time and again. In a sense, then,
everything is truly about the customer—and making those customers happy is the
cornerstone of any long-term successful growth strategy. To achieve these goals through
technology leadership, an organization must be best-in-class in three key areas:
understanding demand, nurturing the brand, differentiating from the competition. This
three-fold approach is explored further below.
Product quality (driven by innovative technology) is the foundation of delivering customer
value. When complemented by an equally rigorous focus on the customer, companies can
begin to differentiate themselves from the competition. From awareness, to consideration,
to purchase, to follow-up support, best-practice organizations deliver a unique and
enjoyable experience that gives customers confidence in the company, its products, and
its integrity.
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Key Benchmarking Criteria
For the Enabling Technology Leadership Award, Frost & Sullivan evaluated two key
factors—Technology Leverage and Customer Impact—according to the criteria identified
below.
Technology Leverage
Criterion 1: Commitment to Innovation
Criterion 2: Commitment to Creativity
Criterion 3: Stage Gate Efficiency
Criterion 4: Commercialization Success
Criterion 5: Application Diversity
Customer Impact
Criterion 1: Price/Performance Value
Criterion 2: Customer Purchase Experience
Criterion 3: Customer Ownership Experience
Criterion 4: Customer Service Experience
Criterion 5: Brand Equity
Technology Leverage
Criterion 1: Commitment to Innovation
Requirement: Conscious, ongoing adoption of emerging technologies that enables new
product development and enhances product performances
Criterion 2: Commitment to Creativity
Requirement: Technology is leveraged to push the limits of form and function, in the
pursuit of “white space” innovation
Criterion 3: Stage Gate Efficiency
Requirement: Adoption of technology to enhance the stage gate process for launching new
products and solutions
Criterion 4: Commercialization Success
Requirement: A proven track record of taking new technologies to market with a high rate
of success
Criterion 5: Application Diversity
Requirement: The development and/or integration of technologies that serve multiple
applications and can be embraced in multiple environments
Customer Impact
Criterion 1: Price/Performance Value
Requirement: Products or services offer the best value for the price, compared to similar
offerings in the market
Criterion 2: Customer Purchase Experience
Requirement: Customers feel like they are buying the most optimal solution that
addresses both their unique needs and their unique constraints
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Criterion 3: Customer Ownership Experience
Requirement: Customers are proud to own the company’s product or service, and have a
positive experience throughout the life of the product or service
Criterion 4: Customer Service Experience
Requirement: Customer service is accessible, fast, stress-free, and of high quality
Criterion 5: Brand Equity
Requirement: Customers have a positive view of the brand and exhibit high brand loyalty
The Intersection between 360-Degree Research and Best
Practices Awards
Research Methodology
Frost & Sullivan’s 360-degree research
methodology represents the analytical
rigor of our research process. It offers a
360-degree-view of industry challenges,
trends, and issues by integrating all 7 of
Frost & Sullivan's research methodologies.
Too often, companies make important
growth decisions based on a narrow
understanding of their environment,
leading to errors of both omission and
commission. Successful growth strategies
are founded on a thorough understanding
of market, technical, economic, financial,
customer, best practices, and demographic
analyses. The integration of these research
disciplines into the 360-degree research
methodology provides an evaluation
platform for benchmarking industry players and for identifying those performing at best-
in-class levels.
About Frost & Sullivan
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please visit http://www.frost.com.
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