helping smes go digital: exploring a multi-trillion dollar opportunity
TRANSCRIPT
Helping SMEs Go DigitalExploring a Multi-Trillion Dollar Opportunity
Camille MendlerAlexander HarrowellHwee Xian Tan
Webinar: January 2017
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Introducing the team
Defining the SME universe
The realities of going digital
Investment priorities
Takeaways
Agenda
Listen to the webinarhttps://ovum.informa.com/resources/product-content/webinar-helping-smes-go-digital-exploring-a-multi-trillion-dollar-opportunity
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Camille Mendler
Practice Leader
Focus areas: Segmentation and targeting, go-to-market strategy, digital engagement, cloud services
Alex Harrowell
Senior Analyst
Focus areas: 5G, open source, SDN, APIs, Internet infrastructure, cloud, operator business models
Hwee Xian Tan
Senior Analyst
Focus areas: UC&C, e-commerce, enterprise mobility, managed services, vendor strategy
SoHo and SME research: Ovum’s dedicated team
Ovum’s Enterprise ServicesSupergroup
Practices• SoHo and SME Services• Large Enterprise Services• Workspace Services• Network and Cloud Services• Internet of Things
Collaborating across teams and geographies.
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It’s time to look at the B2B market from the right way up
Micro / SoHo(including self employed)
Small
Medium
• 99% of businesses• 2/3rds of jobs (formal)• 80% of jobs (informal)
Large
Globally, the bulk of job creation comes from businesses with fewer than 100 employees. The rise of the freelance economy is also rebalancing employment demographics.
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Small businesses are triggering big investments and strategy shifts
Acquisitions to extend reach into the SME universe will accelerate in 2017.
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One size does not fit all to target the small business universe
Segmenting the local ‘SME’ universe is a key task. Decide which personas to address.
SolopreneurSoHoSME
Industryspecialist
StartupFamilyfirm
“Consumer Up”Supersize consumer offers(eg: more, faster, safer)
“Business Accelerator”Bundle ICT with business and financial services
What is an ‘SME’?
“Divide and Conquer”Maximize ICT wallet share in target verticals withcurated service clusters
“Winner Takes All”Incentivize pooledgroup usage acrossconsumer and business
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Digital is transforming SMEs
41%
14%
73%
10%
Have IT staff Buy external IT support
2013
Small Medium
60%
39%
87%
33%
Have IT staff Buy external IT support
2016
Small Medium
n=514 n=1,012 Source: Ovum Note: Western European SMEs.
Beware claims that digital makes life easier for SMEs – today it’s making it more complex.
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Becoming digital is a struggle that many are losing
Almost half of the world’s smaller businesses say that they are digitally ‘illiterate’.
39% 40%43% 44% 46% 47% 47% 49% 50%
53% 53% 55% 56%59% 59%
SoHos and SMEs: Lack of digital skills has harmed our business
N=4,633Source: Ovum 2016 SoHo and SME Insights Survey
% of respondents agreeing
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SME ICT investment patterns are evolving
Nine out of 10 believe technology can make their business more competitive – but almost half don’t know how to exploit it.
• Globally, 52% will spend more on cloud• One in five will reduce fixed services expenditure• 47% will spend more on mobile services
Medium-sized businesses are the biggest spenders on cloudOne in five will grow their cloud budget by more than 10%
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Three hotspots for SME investment
As reliance on digital transactions, engagement and analytics tools grows so will need for better security over digital assets.
E-commerce & POS
IoT
Customer engagement
62% considering CRM 47% considering marketing automation
61% considering a form of tracking58% would consider a telco for energy tracking
35% can take payment on their website51% would consider a telco for help to set up an online store
N = 4,633Source: Ovum 2016 SoHo and SME Insights Survey
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Trust comes with guidance
Power in the ICT ecosystem is shifting to those who can lend a guiding hand.
0%
20%
40%
60%
80%
Accountant Web/search/media
Tradeassociation
Colleagues Operator Local techreseller
ITconsultant/SI
Who do you trust forbusiness and technology advice?
SoHo SME
N = 1,721 Western European respondents.Source: Ovum 2016 SoHo and SME Insights Survey
Top 2 criticisms of telcos
Failure (or unwillingness):
- to educate or provide advice
- to understandtheirclients’ business processes
IT consultant/SI
Operator
ColleaguesAccountant Web/search/
media
Local techreseller
Trade association
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0%
5%
10%
15%
20%
25%
Go to its store Talk to its call center Meet at our office Go to its website Visit a local reseller
SoHos SMEs
Customer engagement strategy will determine success or failure
N = 4633 . Note: Showing answers for 'very often.'Source: Ovum 2016 SoHo and SME Insights Survey
Go to its website
Meet at our office
Go to its store
Visitlocal reseller
Talk to its call center
Omni-channel interaction is mandatory – but digital journey management is an art that few have mastered to engage successfully with smaller businesses.
How do you usually buy from your main communications service provider?
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New work contexts are also new channels to market
IdeasExchange
PublicLibrary
DaycareCenter
Ladies Only
SocialClub
Reinvent learning space for the young and middle aged.
Make it easierfor femaleentrepreneursto thrive.
Build acommunitythat’s coolerthan a workplace.
Support bartering ofskills and knowledge.
Malaysia Singapore Singapore Indonesia
Example: Co-working facilities
Co-working offers much more than a rented desk and Internet access. These facilities can also showcase new ideas and services.
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WHATUse the right blend of physical and virtual channels
HOW- Apply the relevant channel segmentation- Explore non traditional channels- Rethink inside sales
WHATBridge the digital skills gap between small and large businesses
HOW- Offer strategic support, not just break fix- Industrialize key support processes
WHATCraft integrated propositions that overcome silos to address specific SME needs
HOW- Move to solution selling - Create bundles across product silos- Incentivize capture of maximum ICT wallet share
WHATIdentify friction points that impair efficiency and business growth
HOW- Apply relevant business segmentation- Address different personas in the workforce- Consider productivity potential of people and Things
ICT suppliers to SMEs: Recommendations for 2017
Empower Simplify SupportEngage
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Ovum’s SoHo and SME Services: How we can work with you
Research (planned)
Navigating the Multi-Trillion Dollar SME Opportunity: From Solopreneurs to the Mid-market
Revolution in the Channel: The New SME Ecosystem
IoT for SMEs: Quick Wins
Small business UC: Regional Perspectives
SME Success Hacks: The Role of Inside Sales
Virtualization and the Bundle
Meet the Secret SoHos: Segment Spotlights: (Lawyers, Farmers, Retailers)
Freelance Economy: Coworking diversifies
Security for SMEs
Client interactionInquiriesWebinarsStrategy SessionsCustom consulting
PrimarySoHo and SMEs Insights: Digital demand perspectives across developed and growth economies
ForecastsConsistent segmentation for SoHos and SMEs across core cloud, UC, broadband service clusters
TrackersCloud/ICT services for SMEs
New subject matter explorationChannels to market / sales engagement E-commerceDigital marketingSME mass verticalsBest practice case studies
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Camille Mendler (London)[email protected]
Alexander Harrowell (London)[email protected]
Hwee Xian Tan (Kuala Lumpur)[email protected]
Thank you!
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