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1 CIO Summit 2017 Role of ICT in shaping the transformation of SMEs in KSA IDC CIO Summit 2017 – Saudi Arabia Anef Abanomi STC Vice President Enterprise Sales Chairman of the SME Acceleration Program 27 th Sept 2017

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Page 1: Role of ICT in shaping the transformation of SMEs in … Summit 2017 1 Role of ICT in shaping the transformation of SMEs in KSA IDC CIO Summit 2017 –Saudi Arabia Anef Abanomi STC

1CIO Summit 2017

Role of ICT in shaping the transformation of SMEs in KSAIDC CIO Summit 2017 – Saudi Arabia

Anef AbanomiSTC Vice President Enterprise Sales

Chairman of the SME Acceleration Program

27th Sept 2017

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3CIO Summit 2017

Contents

Why SMEs Important to Kingdom of Saudi Arabia

STC SME Market Study & Customer Insights

STC Transformation & Initiatives to Serve SMEs

SME Case Study and Closing Remarks

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4CIO Summit 2017

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7015 20 302510 5535 45405 6050

UK

USCanada

Italy

JapanGermany

Div

ers

ific

atio

n Q

uo

tie

nt

KuwaitQatar

Oman

KSA UAE

France

SME Contribution to GDP

G7

GCC

SMES ARE A MAIN ENGINE FOR ECONOMIC DIVERSIFICATION

Economic Diversification and SME Contribution (Last 5 Years)

Note: Diversification Quotient, measures the diversity of contribution of different sectors to GDP (namely, Agriculture, Manufacturing, Services and Mining/ Utilities/

Construction), Sources: World Development Indicators; Strategy& analysis

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5CIO Summit 2017

• SME contribution to GDP from 20% to 35%

• From 49th to 25th in Logistics Performance Index

• From 25th to top 10 in Global Competitiveness Index

• Umrah capacity from 8 Mn to 30 Mn every year

• Three cities to be recognized in the top-ranked 100 cities in the world

• Average life expectancy from 74 to 80 years

• Non-Oil government revenue from SAR 163 Bn to SAR 1 Tn

• From 80th to 20th in Government Effectiveness Index

• From 36th to top 5 in the E-Government Survey Index

SAUDI ARABIA VISION 2030

Hence Vision 2030 target’s SME development in support economic diversification

Vibrant Society

1

Thriving Economy

2

Ambitious Nation

3

Source: NTP and Vision 2030, STC Analysis

• SME contribution to GDP from 20% to 35%

Page 5: Role of ICT in shaping the transformation of SMEs in … Summit 2017 1 Role of ICT in shaping the transformation of SMEs in KSA IDC CIO Summit 2017 –Saudi Arabia Anef Abanomi STC

8CIO Summit 2017

Infrastructure

Applications/ Services

Communications

Connectivity

Cloud

Applications

Payments

• Fixed and mobile voice communication services, bringing SMEs closer to their customers, employees, partners and vendors

• Data and internet connectivity services, providing SMEs access to global markets and information

• Cloud-based ERP/CRM applications allowing SMEs to switch from capex-based to OpEx-based on-demand models

• Digital payments services allowing SMEs to innovate in their business models

ICT Enables

Scalability,

Productivity and

Efficiency

ROLE OF INFORMATION AND COMMUNICATIONS TECHNOLOGY

Hence ICT plays a pivotal role in enabling national SMEs

Source: STC Strategy& Analysis

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9CIO Summit 2017

Contents

STC Transformation & Initiatives to Serve SMEs

SME Case Study and Closing Remarks

STC SME Market Study & Customer Insights

Why SMEs Important to Kingdom of Saudi Arabia

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10CIO Summit 2017

SMEA DEFINITION OF SME IN KSA

According to Small to Medium Establishments Authority (Monsha’at) the definition of SME includes all establishments less than 250 employees and 200 SR Million

No. of Employees

Micro Up to 5 0-3

Medium 50 to 249 40-200

Small 5 to 49 3-40

Large 250+ 200+

Revenues SR Million

Small to

Med

ium

Establish

men

ts

SME

Source: SME Authority, www.smea.gov.sa

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15CIO Summit 2017

SME AWARENESS LEVEL FOR TELECOM & IT SERVICES

Although there is healthy awareness levels for basic Telecom Services, the same is not true for advanced Telecoms and IT services awareness amongst SME community in KSA

Source: STC SME Study 2016, Enterprise Accounts Analysis

*Full List of Services - Managed IP Telephony, CCTV, Managed WAN, Industry-specific Software (e.g. Autocad), Business Software (e.g. CRM / Inventory), IaaS, Managed Security, Security (DDOS), Fleet Management, Firewall / Malware Protection, SaaS, Asset Management, CoLocation, Mobile Pos, Managed Router, Email Security, Web / Email Hosting, Back-end Hardware (e.g. Server / Router),Front-end Hardware (e.g. Laptop / Printer), General Software (e.g. Microsoft Office)

Micro Up to 5 SR 0-3

Medium 50 to 249 SR 40-200

Small 5 to 49 SR 3-40

SMEs Awareness of ICT Services

VH Medium LowHigh

Telecom Services IT Services*

Basic Advanced Basic Advanced

Employees Revenues

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16CIO Summit 2017

SME PERCEPTIONS REGARDING IT & TELECOM SERVICES

“SMEs perceive introduction of IT systems and hardware as being heaving on their CAPEX. This may have been true in the past, however technological developments especially Cloud Solutions have made the reverse true”

Critical for internal communication and contact with clients

•Seen as an essential part of the business

•Business cannot be run without these services

Seen as a standard service – known and used by all SMEs

•Across all types of SMEs, well established

•Sense of comfort and familiarity with the services

Easily accessable and available through STC

•Known to be present throughtout the Kingdom

•Universal access to such services is not seen as a concern

Source: STC SME Study 2016 – Qualitative responses

Tele

com

Se

rvic

es

Limited awareness and understanding of IT services beyond the basics

•Most SMEs may not be conversant with IT services available and the benefits / usage of these

Not seen as easily available locally in KSA

•Most SMEs were seen to be using service providers who either have a strong global presence (such as IBM, Dell, Google) or have operations outside KSA

Lack of clarity and comfort with IT services

•SMEs may be lacking the information and expertise to best utilize IT services

•Only few examples of SMEs looking for specialist / advanced IT solutions (mostly medium size firms)IT

Se

rvic

es

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22CIO Summit 2017

KEY FINDINGS

On a concluding note: SMEs are diverse, have differing requirements and priorities; expect relevant offers, are value sensitive and prefer Integrated ICT Solution Provider

Decision making and

business needs vary as per employee size

Operating costs, Internet availability & speed are among the

top challenges

SMEs expect service provider to offer them

relevant productsand services

Adoption of higher order services is largely

driven by cost and efficiency

Budgetary constraints always cause barrier to adopting higher order

services

SMEs tend to prefer an integrated service

provider

Source: STC SME Study 2016, Team Analysis

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23CIO Summit 2017

Contents

SME Case Study and Closing Remarks

STC Transformation & Initiatives to Serve SMEs

Why SMEs Important to Kingdom of Saudi Arabia

STC SME Market Study & Customer Insights

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24CIO Summit 2017

STC EVOLUTION

In KSA, STC has transformed to become an Information & Communications Technology Provider

Vision

Governance

EcosystemBuilding

Infrastructure

Digital Services

Innovation / Entrepreneurship

Traditional Play ICT Play

Telecommunication provider

Static and silo organization

Generic HW / SW2 partners; Limited funding models

Fixed andmobile network

Nascent expertise and offering

Adhoc supportof ecosystem

National ICT champion and enabler of KSA’s digitization

Agile organization model, with customer centric business units

Niche ICT partners and startups; innovative funding models

Highly secure cloud infrastructure, IoT1

platform, etc.

Specialized skill force, building of key verticals and digital content

Funding of startups and involvement of SMEs

1) Internet of Things 2)Hardware, Software. Source: STC Strategy

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27CIO Summit 2017

SUMMARY OF STC TELECOMS AND IT SOLUTIONS

STC lineup of 80+ products and services are designed to support SMEs at all stages of their growth

Fixed VoiceMobile Voice &

Messaging

Fixed BB & Bundles

Mobile Broadband

IoT & Manage Services

Hatif (Landline)

IP DID/DOD

800 Toll Free

Jood Aamal

Direct Internet

DIA Shamel

AamalNet

Business Network

Business Flex

Business SAWA

Bulk Messaging

QUICKnet Router

Fixed IP VPN

Smartphones & Tablets

Mobile IP VPN

Fleet Control

Fixed Date (Connectivity)

Cloud Services

Telecom Services IT Solutions

9200 Universal Access

Atheer (Landline over Mobile NW)

Managed Router

Anti-DDoS

E-Commerce

Data & Analytics

Cloud Native Apps

R&D Labs

ERP Solutions

Unified Communicatio

ns

Virtual Data Center

Web Hosting

Mobile PoS

Source: STC Solutions

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28CIO Summit 2017

BENEFITS TO SME CUSTOMERS

STC portfolio is focused on driving value to the operating strategy, employees and customers and financial standing of SME customers

Productivity Software

Smart Solutions

Messaging Services

Cloud Services

Connectivity Services

Voice Services

Business Apps.

ICT Bundles

Internet Services

Smart Devices

Employee productivity, satisfaction and loyalty

Access to leading solutions to enhance operation efficiency

similar to large businesses

Customer satisfaction, usage and loyalty

Benefits

Increased revenues & profits

Source: STC Solutions

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29CIO Summit 2017

EXTEND BENEFITS

… and includes round the clock customer services, reliable-redundant network and range of payment methods to suit customers requirements

• STC has 100+ Retail Points in 35 cities in KSA that serves SMES

• STC has also launched a Digital portal and Mobile App to address SME enquiries 24/7

• 909 is a dedicated call center for SMEs

• STC has 10+ field partners with 300+ FTEs to reach out to SMEs

Fast & Efficient Customer Services

• STC has the widest coverage in Saudi Arabia, ensuring high quality services for SMEs across the kingdom

Reliable Network Coverage

• STC provides OPEX based payment for SMEs, since CAPEX method does not fit SMEs

• STC also provides digital payment methods for fast and secure payments

• Qitaf Business for SMEs

Payment Methods

Source: STC Solutions

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30CIO Summit 2017

MYBUSINESS.COM.SA

An example of business process and channel we introduced to better serve SMEs is STC Mybusiness portal and Mobile App. Customers can access accounts, subscriptions, Qitaf Business Program rewards and various development tools to help their business grow

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32CIO Summit 2017

STC – MONSHA’AT PARTNERSHIP AND SME DEVELOPMENT INITIATIVES

Early 2017 STC partnered with Monsha’at and launched multiple initiatives in order to enable SME development in KSA. Major SME event – Biban 2017 was held in Riyadh last week.

Training and Support

National SME DatabaseProcurement Policies

STC and Monsha’at are launching the National SME Database for

SME developmentSTC has committed 60 Seats of its

training programs to SMEemployees and entrepreneurs

STC has committed at least 15% of overall procurement budget to

Saudi SMEs

Cloud Marketplace (BluValt)

Stakeholder Collaboration

Events/ Exhibitions

STC has participated in 20+ eventsand exhibitions related to SMEs in

2016 and 2017STC is collaborating with financiers

to offer innovative financing options for SMEs

STC launched a cloud marketplace to host local Saudi applications

Source: STC Strategy

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33CIO Summit 2017

BLUVALT – CLOUD MARKET PLACE FOR NATIONAL SMES

In partnership with Monsha’at , the Saudi market place designed to offer SME’s scalable business applications regardless of the stage of growth. Local developers will be able to offer their cloud based applications to customers in KSA and the region.

With >10 subscription solutions and 20+ deployments to serve the various IT, marketing, sales, HR, finance, accounting, Operations and other administrative functions of SMEs.

Inline with Local Content aspirations Bluvalt is ready to loffer preferential access to locally developed applications

Source: STC Solutions

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34CIO Summit 2017

Contents

SME Case Study and Closing Remarks

STC SME Market Study & Customer Insights

STC Transformation & Initiatives to Serve SMEs

Why SMEs Important to Kingdom of Saudi Arabia

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35CIO Summit 2017

SAUDI PIZZA CASE EXAMPLE – ICT DRIVEN GROWTH OF SME (1/2)

• Presently leading the pizza market by driving product innovation, providing the best-in-class customer service

• Saudi owned and operated business

• Established in September 2013

• Growing from 42 stores to 300 by 2018

How did technology help with each incremental challenge or opportunity on the company’s expansion path?

SAUDI PIZZA EXPRESS

Disguised client name

?

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36CIO Summit 2017

SAUDI PIZZA CASE EXAMPLE - ICT DRIVEN GROWTH OF SME (2/2)

In a short period of 4 years, this start-up SME entered the market and was able to over take leading international brands in the Pizza industry. Key to the success of this SME was the rapid deployment of scalable ICT solutions offered by STC

MORE STORES

Need to connect branches

High speeddedicated internet

connection

MORE CUSTOMERS

Need to respondto interested

customers (calls, online)

Scalable call center solution

Web Hosting solutions

MORE DIFFERENTIATION

Need to understand

customers and their interactions

ERP and CRM solution for

customer interaction

management

FURTHER REACH

Need to efficiently deliver

supplies across the branch

network

Fleet management solutions to

manage supplytrucks

PRODUCT QULAITY

Need to meet customers

expectations at scale

Quality control (temperature

sensors) within fleet

management solutions for

delivery agents

MORE ORDERS & CASH

Need to manage increasing orders

and manage larger volumesof cash

Point of Salesolution across the NW with integrated

inventory management,

ordering, reporting module, etc.

SAUDI PIZZA EXPRESS

This scale, this fast….only possible through smart use of ICT

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37CIO Summit 2017

CLOSING REMARKS

Economic growth and diversification is a national priority for Saudi Arabia and SMEs are a key pillar in achieving this goal.1

ICT plays a pivotal role in enabling SMEs to develop, grow and expand locally, domestically and internationally.2

STC’s deep market knowledge, breadth of ICT products, services and solutions and dedicated SME Unit and channels is best equipped to accelerate national SMEs3

STC is committed to enabling the SME segment by further partnerships with Public / Private Sectors4

Look forward to a exciting and flourishing SME segment in KSA.5

Source: STC

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38CIO Summit 2017

Thank you

Questions?

Please Visit us at one of our

100+ outletsto inquire about our products or schedule an appointment with one of our representatives

Call us at 909 Visit us at

www.stc.com.sa

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39CIO Summit 2017

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40CIO Summit 2017

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41CIO Summit 2017

FIXED VOICE

Services Description

Description

Hatif Business• Hatif Business offers customers a discounted tariff as well as free minutes to call locally,

internationally or to mobiles. Additionally, enterprises are awarded free and discounted calls to STC mobile users that belong to the company

Atheer (Landline over Mobile NW)

• Integrated communications solution for enterprise clients that contains a phone line local calls & in calls, unlimited within the internal network, in addition to multiple Internet service at speeds 200, 100, 40, 20, 10, 4 MB to fit the needs of your facility's needs

IP DID/DOD• Integrated communications solution for enterprise clients that contains a phone line local calls

& in calls, unlimited within the internal network, in addition to multiple Internet service at speeds 200, 100, 40, 20, 10, 4 MB to fit the needs of your facility's needs

800 Toll Free• A unified number for the business that starts with 800 (customers call company for free) or

9200 (customer call company at a discounted rate and company pay part of the charges)

9200 UAN

• Business Flex is an Enterprise voice plan where the monthly subscription is fixed at specific cap or limit. Each employee can recharge using SAWA as needed. Flex offers unlimited calling with other colleagues in the company and access to all add-on packages and data bundles as needed

Source: STC Solutions

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42CIO Summit 2017

FIXED BROADBAND & BUNDLES

Services Description

Description

Jood Aamal• Integrated communications solution for enterprise clients that contains a phone line local calls

& in calls, unlimited within the internal network, in addition to multiple Internet service at speeds 200, 100, 40, 20, 10, 4 MB to fit the needs of your facility's needs

Direct Internet• Provides secured Internet access over STC MPLS network and STC Internet Gateway. The

service guarantees 1:10 internet dedication which result in more professional internet experience at low cost

DIA Shamel• Offers dedicated secured Internet connection from client throughout STC MPLS Network from

one source Access & internet from STC

AamalNet

• The service consists of a internet access via DSL, integrated professional business router with Wireless features, firewall, IPS and VPN capabilities. In addition, Value Added Services (VAS) are provided as additional services paid for separately. This is intended to customize the basic service to meet the different needs of different customers.

Source: STC Solutions

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43CIO Summit 2017

MOBILE VOICE & MESSAGING

Services Description

Description

Business Network• Business Network offers multiple voice packages for all levels of employees without the burden

of any bill on the employee. It includes unlimited minutes for communicating with your colleagues, and as well as handsome freebies including data bundles and device discounts

Business Flex

• Business Flex is an Enterprise voice plan where the monthly subscription is fixed at specific cap or limit. Each employee can recharge using SAWA as needed. Flex offers unlimited calling with other colleagues in the company and access to all add-on packages and data bundles as needed

Business SAWA• : Prepaid package and allowing subscriber to recharge his account by SAWA vouchers available

in markets.

Bulk Messaging• Providing companies the ability to send SMS message in bulk to selected or random customers

at once

Smartphones & Tablets

• It is a service that allows the customer to get the latest tablet device with data.

Source: STC Solutions

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44CIO Summit 2017

MOBILE BROADBAND

Service Description

Description

QUICKnet Router• Business Network offers multiple voice packages for all levels of employees without the burden

of any bill on the employee. It includes unlimited minutes for communicating with your colleagues, and as well as handsome freebies including data bundles and device discounts

Source: STC Solutions

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45CIO Summit 2017

INTERNET OF THINGS (IOT) & MANAGED SERVICES

Services and Solutions Description

Description

Fleet Control• Fleet Control service offer a fleet management solution that provides information about a

company fleet including tracking car movement, location, driver behavior, reports, fuel Management, Speed alerts and zones

Mobile PoS• Point of Sales (PoS) service, offers Banks, merchants and cardholders full ability to process

card payment transaction efficiently trough STC Networks facilities (over wired network or SIM card)

Anti-DDoS• Distributed Denial of Service (DDoS) attacks protection using Arbor Networks ISP Platform

operated by STC In-Cloud and/or multi-tierd DDoS mitigation services

Managed Router

• Value - added service for IP-VPN customers. MRS is designed to provide advanced services of the highest quality and proffissional expertise by supplying customers router, its installation, configuration, monitoring and management thus ensuring an end to end high level service quality .it provides on going router supervision, operation, maintenance, updates and performance reports .

Source: STC Solutions

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46CIO Summit 2017

CLOUD – WEB SCALE SYSTEMS

Services and Solution Description

Description

E-Commerce• Install an "out of the box" shopping cart systems• Utilize features such as: Order management, Multiple payment gateways, Multiple language

and currencies, Shipments and payments tracking and Multi-screen support

R&D Labs

• Leverage the cloud to experiment new researches• Leverage STC Cloud resources in R&D without building massive labs• Take advantage of STC Cloud Marketplace Open APIs to move applications from R&D to

commercialization

Cloud Native Apps

• Design, build, and deploy web-scale applications using STC’s open platform and pre-configured solutions

• Build dynamic elastic applications that can scale up and down automatically by leveraging STC Cloud resources allocation APIs

Data & Analytics

• Develop, launch, and manage databases on the cloud• Run queries more efficiently and faster using STC Cloud’s computing power and flexible

storage capacity• Visualize and analyze data to gain

Source: STC Solutions

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47CIO Summit 2017

CLOUD ENTERPRISE BACK-END & FRONT-END

Services and Solutions Descriptions

Description

Virtual Data Center

• Provision computing needs quickly and leverage STC Cloud’s benefits: High availability & redundant setup, Highly physical secure environment, Flexible resource allocation and reduction, Pay for what is used with no upfront investment, No limitations on available bandwidth

ERP Solutions• Launch an ERP system to streamline business with a comprehensive suite of applications:

Finance, Project Mgmt., Warehouse Mgmt., Manufacturing, Financial Mgmt. and HR

Unified Communications

• Provides communication services such as messaging and file sharing • Store and edit documents online• Update calendar and synchronize contacts• Access services through PCs and mobile phones

Web Hosting

• Build and run websites for large and small organizations• Upload web applications• Automate backup of data to prevent data loss and business disruption• Handle high load traffic requirements as the business grows

Source: STC Solutions

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48CIO Summit 2017

STC SME MARKET STUDY 2016

We conducted a thorough assessment of KSA’s SME market to ensure we remain focused on national priorities and equip customers with affordable tools to fulfill their business needs

Gain a 360 degree understanding of the SME market within Saudi Arabia

Detailed market assessment of the current and future opportunity within the SME sector and how to serve them well

Understand how STC currently aligns to high growth areas within SMEs

Detailed market assessment of the current and future opportunity within the SME sector and current STC offering

Understand customer behavior, usage and experience within SMEs

Understand awareness, usage, needs, challenges, decision making and switching triggers for ICT services within Saudi SMEs

Identify Go-to market approach most suitable for Saudi SMEs

Concrete recommendations on Go-To Market approach, tackling competitive threats and how STC can be competitive within the marketplace

This study included but not limited to:

1. SME market sizing exercise

2. SME customer usage and attitudes profiling

3. Insights to SME priorities, challenges and aspirations

4. Go-to-Market approach recommendations

5. New areas for STC and STC partners exploration

Source: STC SME Study 2016

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49CIO Summit 2017

6% of Middle East public lives under digitized Government

10% of VC funding as compared to US, relative to GDP

only 2 (out of 200 globally)Digital start-up unicorn (Souq & Careem) in Middle East

with mkt. cap > USD 1 Bn

Digitization indexSignificant disparity between countries

CURRENT STATE OF DIGITIZATION IN MIDDLE EAST

… despite significant opportunities, Middle East is lagging behind in realizing the full potential of digitization

< 5% Digital economy’s contribution to Middle East GDP

Lower contribution to GDP

Disparity among Middle East countries

Lack of ICT supply & Innovation

Lagging digitized Governments

Very few globally competitive businesses

Lack of Digital unicorns

1

2

3

4

5

6

only 1% of top 1,000 ICT companies by revenue are in Middle East

Source: McKinsey&Company, STC Strategy

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50CIO Summit 2017

MYRIAD ECONOMIC AND SOCIAL BENEFITS OF DIGITAL ECONOMY

The digital market could add USD 95 billion per year to the Middle East’s annual GDP

DIGITAL

IMPACT

Economic growth

Job creation

Productivity

Increased digital penetration has a substantial impact on economic growth and access to global trade

Digital has a powerful multiplying effect: International cases show that each digital job creates 2-4 jobs elsewhere in the economy

Moreover, those are high-value jobs(wages ~30% above average)

The industries that most harness digital experience the greatest productivity increases

Economic Impact

Poverty

Experiences in countries such as Bolivia and India shows that digital can be a tool for inclusion and increased income among the disadvantages

EducationEducation can be provided to the masses at low cost and good quality, using e-education tools

HealthcareE-health enables new forms of healthcare management and provision, increasing patient coverage and improving quality

Environment

Digital can make an enormous contribution to the environment

Others

Moreover, digital can help in reducing crime, increasing road safety, enhancing financial inclusion, and improving farming

Social Impact

Source: World Bank; Nasscom; Van Reenenet al. (2005), MGI; UNESCO; Smart 2020report; press clippings, McKinsey&Company

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51CIO Summit 2017

OIC AND GCC ARE SIGNIFICANTLY BEHIND THE RACE IN GLOBAL TRADE OF SERVICES

Digitally Economies are leading Global Trade in Services; Rapid adoption of broadband ICT solutions can provide SMEs the flexibility and power to expand into untapped international markets and in turn uplift the national economy

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

USD

Bill

ion

Services - World

Products - World

Services - G20(Group of Twenty)

Services - OIC(Organisation ofIslamic Cooperation)

0

50

100

150

200

250

300

350

USD

Bill

ion

Saudi Arabia China

China, Hong Kong SAR India

Korea, Republic of Lebanon

Malaysia Singapore

Turkey UAE

UK

Sources: UNCTAD, Global Competitiveness Report and STC SME-APP Analysis

Total Trade in Products & Services - World, G20 & OIC Total Trade In Services - By Country

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52CIO Summit 2017

EVOLUTION OF TELCO PLAYERS

Some of the leading telco players have successfully transitioned from traditional services to adjacencies and digital verticals

Consolidation and international expansion

1 First wave of Telco growth

• Increasing scale of existing products and services

• Geographical expansions

• Market consolidation

Entering adjacencies of close proximity

2 Second wave of Telco growth

• Expanding scope of services

• Moving towards dual-play and triple play

• Entering into basic IT services

Entering digital and technology space

3 Third wave of Telco growth

• Entering into industry verticals

• Financial services, Media, Advertising, IT services

• Moving across value chain

Evolution of telco players

Source: STC strategy

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53CIO Summit 2017

TELCOS INDUSTRY IS CHANGING FAST

New digital reality

B2B and B2G are growth engines

Digital services own the customer relationship

Value shifts downstream

Data explosion leads to platform dominance

At-scale plays with “winner-takes-all”

Connectivity and cloud power the ecosystem

‘Digital’ ecosystem: the new Telco landscape

Services and applications

Connectivity & infrastructure

Towers and other infrastructure (fiber, DCs)

Connectivity

Customers B2G B2B B2C

Platforms and cloudPlatforms

E-commerceAdvertisingIoTMusicBankingVideo Health

A revolution giving rise to a new digital landscape where more value is centered downstream

Source: STC Strategy

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54CIO Summit 2017

Taxi hailing

Launched in

2012

• App-based car booking service

• Operates across 20 cities, 30% MoM growth in core markets

• Closed a USD 60 Mn series C funding round in Nov’15

Cloud

call

center

Cloud-

based

data

hosting

CRM GPS

tracking

unit

Sele

cted

GC

C s

ucc

ess

sto

rie

s w

ith

Dig

ital

/IC

T en

able

men

t

Launched in

2013• Pizza restaurant with a digital twist

• Known for its quick service and ability to deliver online

• Operates 80+ stores across the kingdom Usage

analytics

tracker

Cloud-

based

data

hosting

CRM Custom

phone

number

Launched in

1994

• International mail delivery and logistics services company

• Operates a 1500 vehicles fleet across 350+ cities/villages

• Employs 2700+ staff spread around 5 major hubs

AVL

tracking

Cloud

call

centre

CRM ERP

Launched in

2012• Web and app based food delivery service

• Operates in 5 cities in KSA and Bahrain Usage

analytics

tracker

Cloud-

based

data

hosting

CRM Custom

phone

number

Logistics

Take-away

Fast food

Launched in

2005• E-commerce platform similar to Amazon

• Operates across 7 countries across the GCC

• Acquired by Amazon in 2017Usage

analytics

tracker

Cloud-

based

data

hosting

CRM ERP

E-commerce

9200

9200

CASE IN POINT: SUCCESS STORIES IN THE GCC

Majority of below companies built digital from day 1 and have wide REACH, can SCALE at will and can MANAGE their growth because they are heavily digitized and practice digital effectively.

Source: STC

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55CIO Summit 2017

Yesterday’s coffee shop /

restaurantIC

T-e

nab

led

op

erat

ion

to

day

Connects the customers on secure WiFi and gathers their contacts through ‘secure-connect’ client in each of the branches

Allows orders, bookings and inquiries through web, mobile-apps and 3rd party integrated portals

Runs a restaurant management platform integrated with on-site hardware, which enables the link between staff and the kitchen

Operates a cloud call-center for orders, which is shared with other companies to manage low-usage periods

Uses AVL tracking to monitor the delivery vehicles and shares their live location with the customer

Ensures optimal utility and other resource use through remote control and monitoring software

Takes credit-card payments securely and on-the-go or through on-line portals

Stores customer contacts, preferences and delivery addresses on a centralized CRM system used by the all branches

Manages financial accounts, customer and supplier billing through centralized procurement system

Leverages ERP for all internal tasks from employee pay-roll to technology and human resource management

Ensures premise security through CCTV & alarm system controlled and monitored over mobile devices

Ind

ust

ry-g

eare

d s

olu

tio

ns

Mo

bili

ty e

nab

lem

ent

Ad

min

, Sec

uri

ty &

Fin

ance

Ready to scale as all solutions are subscribed ‘As-A-Service’

Present on the street

Paid in cash

Managed from ‘paper books’

Reached by phone

CASE STUDY: OLD COFFEE SHOP VS. CONNECTED CAFÉ EXPERIENCE

Digital presence and operation can help even the simplest businesses reach wider audiences, be more agile and prepare for growth.

Source: STC