the customer-activated telecom provider (global c-suite study 2013)

© 2013 IBM Corporation

IBM Institute for Business Value

The Customer-activated Telecom

ProviderInsights from the global C-suite Study 2013

The Customer-activated Telecom Provider

Insights from the global C-suite Study



Agenda

1 Introducing the 2013 Global C-suite Study

2 How CxOs view the world

4 Pulling together

2

3 How the C-suite is preparing for the future

a. Open up to customer influence

b. Pioneer digital-physical innovation

c. Craft engaging customer experiences



The IBM global C-suite Study draws on a decade of research with over 20,000 interviews

600

CSCOs

4,500

CFOs

1,500

CHROs2,200

CMOs

7,000

CIOs6,300

CEOs

3



28Middle East and Africa 30

Asia Pacific

Central and Eastern Europe

42Western Europe

47

Japan

20

North America

16

South America

35

This study covers 4,183 face-to-face conversations with CxO’s in 70 countries – 218 of them from the Telecommunications industry

4

Telecommunications distribution

Source: Question E–Participant Country; Telecommunications n=218



5

Cloud

Analytics/

Big data

Social

Mobile

Advocacy

GIE Digital

Telco2015

2010 2011

2012

2013 2013

2013 2014

2013

Click on pictures to access the documents

The IBV Telecom industry and CxO studies are a set of reports, identifying the challenges of CxOs in the changing telecom industry

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In addition, our biennial Consumer Surveys – the most recent one conducted in Fall 2013 – address related topics

6

Telecom Consumer survey Fall 2013 in 35 countries

https://w3-03.sso.ibm.com/services/practitionerportal/ppServlets/displayDocument.wss?syntheticKey=M420449W29904Z75



The Consumer Surveys thus enable us to compare views from the ‘supply’ side and the ‘demand’ side

7

Customer Spending

priorities for 2013 –

2015

Customers’ Adoption of,

Experience with, CSP’s

products and services

Customer Sources of

Information for CSP’s

products/ services

Customers’ Attitudes

towards CSPs

Customer Advocacy

and Antagonism

Customer Trust

in CSPs



Much has changed since 2004: digitization has given customers far more clout and transformed their expectations

Business models evolve toenable external partnerships and collaboration

The digitally active customer moves to the top of the C-suite agenda

2004 2008 2014

Focus on cost reduction to deal with increasingly global competition

8



Agenda



4 Pulling together

9







The Telecommunications perspective of the C-suite study draws on input from six C-suite roles

10

Source: Question E–Description current role; Telecommunications n=218

C-suite composition Telecommunications sample

CHRO

7% CEO

23%

CEO23%

Role

distribution CFO7%

CIO33%

CMO24%

CSCO6%



Telecommunications CxOs think technology will be the most important external force shaping the future of their enterprise

11

2010Telco CEOs

2012Telco CEOs

2013Telco CxOs

1

2

3

6

4

5

7

8

9

1

2

3

6

4

5

7

8

9

Technology factors

Market factors

Regulatory concerns

Macro-economic factors

People skills

Socio-economic factors

Globalization

Environmental issues

Geopolitical factors

2

3

6

4

5

7

8

9

1

Source: Question E8–What are the most important external forces that will impact the enterprise over the next 3 to 5 years?; Global n=4,009; Telecommunications n=218;

2010/2012 Global CEO studies

2013All industries

2

3

6

4

5

7

8

9

1

External forces impacting the enterprise (3–5 Years)



Some technologies impacting telecommunications are now mainstream

12

Mobile phone

Multi-media

and internet

(email)

enabled

Rise of

Windows

OS and

Wintel

systems

Growth of

direct to

consumer

sales

Talking

bricks

Slow

speeds,

textual

content

Broadband ,

multimedia

content

First

successful

PC,

launched

Apple

First

compact,

standalone

PC

Netbooks and

continuing

miniaturization

Always

connected,

across

devices

Smartphone

enters

consumer

market

Computer

Internet

19881978 20081998 Today

Smartphones

are enabling a

new range

of business

models

Ubiquitous

connectivity

makes content

accessible

everywhere

Miniaturization

and cost

reduction

Technologies

Affordable

computing

expands

access to

PCs globally



Other technologies such as social, mobile, analytics and cloud are at the beginning of maturity, but already impacting telecommunications

13

Power of Analytics

Cloud Enablement

Social media explosion

Mobile revolution

Miniaturization of computing power

Prevalence of social networking

2010

Browser-based cloud applications

Watson wins Jeopardy

2000 2005

Social apps harness network effect for services

Consumer cloud services

Forces

• Increasing consumer demands for immediacy and ubiquity

• Influencing all aspects of business models and operations

• Decreasing revenue from traditional communication

• Increasing Customer influence/ power and collaboration

• Increasing capabilities to provide new services from the cloud

• Evolving dramatically different business models

• Enhancing all aspects of decision making and customer experience

• Evolving new business models and business ecosystems

Today’s/Future impact



Telecom CxOs foresee major changes in their offerings enforced by major changes in the competitive landscape

14

Source: Question E9–How do you see the landscape changing over the next 3 to 5 years?; Telecommunications n=218

Shifting ground: business landscape changes

Maintain current offerings

Competitors fromsame industry

Develop new offerings

Competitors from other/new industries, including OTTs

5%

21%

90%

71%

Neutral

“Data monetization will be very important in the future as

telcos reinvent themselves, as competition in the Business

As Usual markets increases with Over The Top offerings.”

CIO, Telecommunications, Canada



In addition, telecom CxOs also foresee major changes in engaging and interacting with customers, and in partnerships

15

Shifting ground: business landscape changes

Source: Question E9–How do you see the landscape changing over the next 3 to 5 years?; Telecommunications n=218

Operationalcontrol

Partnering toincrease efficiency

Focus on customers as segments

Face-to-faceinteraction

Smallerpartner base

Organizational openness

Partnering to increase value

Focus on customers as individuals

Social/digital interaction

Bigger partner network

27%

16%

18%

27%

12%

55%

68%

65%

82%

75%

Neutral

3a.Open up to customer influence

3b.Pioneer digital-physical integration

3c.Craft engaging customer experiences

4. Pulling together



Agenda



4 Pulling together

16







Close collaboration with customers is a clear ambition: nine out of ten Telecom CxOs foresee doing so in the near future

17 IBM Confidential2 January 2014

Open up

to

customer

influence



Half of the telecommunications companies in our sample have a weak digital-physical strategy – or none at all


Pioneer

digital-

physical

innovation



Recognizing the importance of customer experience management and the required skills, Telecom CxOs are rebalancing their priorities


Craft

engaging

customer

experiences



Agenda



4 Pulling together

20







Collaboration within the C-suite itself is also important – and CxOsform an intricate web of relationships to drive performance


Pulling

together



We invite you to continue the conversation

For more information about this study and

to get the full version of this report, see

www.ibm.com/csuitestudy

Access interactive content and listen to

CxOs in their own words by downloading

the IBM IBV app for Android or iOS

Connect with us

22

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Key Contact

For more detailed

information on the C-suite

study, please contact:

Rob van den Dam

Global Telecom Industry Lead,


[email protected]

23

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the customer-activated telecom provider (global c-suite study 2013)

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