effective segmentation for a post-pc age

Effective segmentation for a post-PC age

Camille Mendler Principal Analyst [email protected]

Informa Telecoms & Media 2014 Industry Outlook

London: Nov. 7, 2013

Segmentation is now a critical task

Two thirds of CSPs hope to find top-line growth in new segments.

Cloud M2M

‘Digital’

Big Data Growth pursuits are diverse

Enterprise

Smart grid Smart

cities

ICT

APIs

Source: Flickr/Adrian Hand

www.informatandm.com

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Market vision is obscured

Source: Flickr/Edie**

Obstructions include:

1. Thinking bigger is better

2. Worshipping fallen idols

3. Practising class discrimination

4. Creating new silos

5. Believing one size fits all

The hunt for ‘new’ segments is really about focus adjustment.



Indonesia Italy Portugal France UAE UK

Firms by employee numbers 0 - 9 10 - 49 50 - 249 250 +

Sou

rce: Euro

stat, U

AE M

inistry o

f Lab

ou

r, IFC, C

ensu

s Ind

on

esia.

Indonesia Italy Portugal France UAE UK

Workforce distribution by firm size

1. Thinking bigger is better

Over 70% of CSP enterprise assets are dedicated to 0.5% of firms.

80% of GDP

68% of GDP

62% of GDP

57% of GDP

40% of GDP

51% of GDP



employees Number of firms per country

Proportion of employees by firm size

2. Worshipping fallen idols

1983 2013

Today, 65% of CSP SaaS offers still assume a PC only for access.



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

Accommodation + food

Transportation + storage

Construction

Manufacturing

Wholesale + retail trade

Professional, scientific +technical

Information + communicationManagers, directors,senior officials

Professionaloccupations

Associate professional+ technical

Sales + customerservice

Administrative +secretarial

Other occupations

3. Practising class discrimination

The primary focus of CSPs is office-based, white-collar workers.

Job distribution by industry

% of total industry workforce



Sou

rce: Euro

stat a

nd

Info

rma

Telecom

s & M

edia

4. Creating new silos

Are you really offering “unified” communications yet?

«Conversations»

Satellite LTE

Wi-Fi

Weightless

Bluetooth

6LoWPAN

Microwave

etc….

ZigBee

MPLS

On-prem Cloud

GPRS



5. Believing one size fits all

6%

34%

53%

60%

47%

27%

19%

71%

43%

30%

31%

26%

55%

39%

30%

30%

38%

36%

45%

36%

Other

Shipment / delivery tracking

Booking management

Document management

Transit times

Time management

Customer / guest profiling

Payment processing

Client communication

Sales / marketing

Customer service

General administration

Which business processes do you MOST want to improve? (Top 5 by industry – correlated)

Professional services

Retail

Hospitality

Transport/Logistics

Common to all, but not most important

Most CSPs build portfolios around common denominators – but not necessarily the most important.

Source: Informa Telecoms & Media, 2013

n=828 European SMEs

Percentage of respondents by industry



1960 1970 1980 1990 1998 20021959 Peter Drucker coins the term ‘Knowledge Worker’

1981 IBM PC launched

2000 World’s first 3G network

Knowledge-centric activities grow

Machines take over many activities

Source: The Skill Content of Recent Technological Change, Quarterly Journal of Economics (Nov. 2003); and Informa Telecoms & Media

Let’s thank the PC for its impact on work

An extraordinary shift has occurred over the past 30 years.

Working tasks: Distribution over time

Workforce



And there’s further to go

Routine cognitive tasks Measuring, inspecting

Routine manual tasks Parts assembly, photocopying

Expert thinking Diagnosing, designing

Complex communication Training, advising, selling

Non-routine manual tasks Driving, repair, serving Knowledge

centric

Collaborative Transactional

Man vs machine – or a closer relationship?



We need to focus on individual roles



Source: Flickr/EVMaiden

Identify – and triage – business processes



Industry Transactional Collaborative Knowledge centric

Lawyer • Document mgmt • Appointments • Time tracking • Data entry

• Client and team communication

• Consultancy • Design • Diagnosis • Sales & marketing outreach

Restaurateur

• Payment • Order taking

• Order processing • Menu design, portion sizing • Sales & marketing outreach • Pricing policy

Retail store owner • Payment • Inventory mgmt

• Order processing, logistics, tracking

• Stock composition • Pricing policy • Sales & marketing outreach

Construction foreman

• Document mgmt (bids, designs)

• Field to office communication

• Audit • Project mgmt

Real estate broker • Document mgmt • Data entry / Inventory

mgmt • Quality checks

• Field to office communication

• Sales & marketing outreach • Audit

Consider the range of tools – and then the connectivity – appropriate to the task.

‘Dematerialize’ manual processes

Enable multi-channel collaboration

Speed knowledge creation

Expect new tools to become invisible

Neolithic axe Computer mouse GPS tracker

The tool isn’t separate - it’s implicit to the value proposition.

Human plus? Our cognitive actions align to the tools we use*

*Source: Dotov DG, Nie L, Chemero A (2010) A Demonstration of the Transition from Ready-to-Hand to Unready-to-Hand, Franklin & Marshall College



Final thoughts

• Put segmentation at the top of your strategic agenda

• Finding ‘new’ growth segments might simply require focus adjustment.

• Don’t use connectivity-centric metrics to size your opportunity

• Consider individual roles and how to improve business processes versus counting what to connect.

• Connected devices will become invisible in the post-PC world

• Their role in human work will be so deeply embedded that they will often be unnoticed.

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Thank you! Camille Mendler Principal Analyst Email: [email protected] Twitter: @cmendler

mailto:[email protected]

https://twitter.com/cmendler

effective segmentation for a post-pc age

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