telecom’s future is social (gsma mobile asia 2013)
DESCRIPTION
The telecommunications industry has facilitated the rapid adoption of social networking and social business on a global scale. But to what extent have communications service providers (CSPs) used social networking and social tools to transform their own businesses? The adoption of social media by CSPs to engage with customers is still very low. And with respect to applying social tools to drive innovation, CSPs are clearly outpaced by over-the-top service providers. A new IBM Institute for Business Value study reveals how CSPs use social approaches to adapt to the evolving marketplace.TRANSCRIPT
© 2013 IBM Corporation
Telecom’s future is socialThe value of social business for telecom providers
Rob van den Dam, Global Telecom Leader IBM Institute for Business Value
27 June 2013
© 2013 IBM Corporation2
The IBM Institute for Business Value creates fact based thought
leadership that help clients realize business value
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3 to 10 year industry outlook
with action oriented next steps
In-depth assessment of today’s
critical issues, opportunities, etc
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Chief Officiers studies – CEO,
CIO, CMO, CFO, CHRO, etc.
© 2013 IBM Corporation3
Content
Why is Social Business important for Communications Service Providers (CSPs)?
Create valued customer experiences
Drive workforce productivity and effectiveness
Accelerate innovation
Questions to ask yourself
© 2013 IBM Corporation4
Why is Social Business
important for CSPs?
© 2013 IBM Corporation4
© 2013 IBM Corporation5
CSPs increasingly realize that it is key to more effectively engage
with customers, employees and partners, ánd to stimulate innovation
93% of CSPs will
focus more on “getting
closer to the customer”
over the next 5 years.
– IBM CEO Study 2010
56% of CSPs plan
dramatic improvements in
internal collaboration and
70% focus on significantly
improving collaborating with
other organizations.
– IBM CEO Study 2012 2010
67% of CSPs focus
on industry model
innovation to find new
sources of revenue.
– IBM CHRO Study 2010
© 2013 IBM Corporation6
More and more CSPs are planning to use social business to connect
to customers, employees and partners, and to spur innovation
A Social Business uses collaborative tools, social media platforms
and supporting practices to engage Customers, Employees,
Business partners and other stakeholders in an ongoing dialogue.
Create valued
customer
experiences
Drive
workforce
productivity and
effectiveness
Accelerate
innovation
Source: Institute for Business Value, 2012 Business of Social Business Study
© 2013 IBM Corporation7
CSPs are increasing their SB investments, but many remain
underprepared for changes required, and uncertain about the impact
CSP overall SB investments
Likely to increase in the
next three years
Source: Institute for Business Value, 2012 Business of Social Business Study
58%
49%Investment has
increased in 2012
Percentage underprepared for SB
85%
66%
Underprepared for
the necessary
cultural changes
Unsure about impact of
social business over
next three years
55%Limited understanding of
the business value
we intend to obtain
© 2013 IBM Corporation8
Create valued customer
experiences
© 2013 IBM Corporation
Create valued
customer
experiences
8
© 2013 IBM Corporation9
Internet, the mobile and social media has led to an amazing
consumer revolution as profound as any seen before
There are close to 900Million social media
users in Asia
Today, there are roughly
1.3 Billion users online
in Asia
Roughly 800 Million users
in Asia are assessing the
internet from mobile devices
Source: wearesocial.net (March 2013)Source: Internetworldstats Source: eMarketer
© 2013 IBM Corporation10
Despite CSPs are at the center of all this – they carry all this traffic –
they have not kept pace with all of the changes in today’s environment
Global outsourcing
Decreasing brand loyalty
Customer collaboration and influence
Growth of channel and device choices
Data explosion
Regulatory considerations
ROI accountability
Privacy considerations
Corporate transparency
Shifting consumer demographics
Social media
Financial constraints
Emerging market opportunities
Mean
5
6
7
8
9
10
11
12
13
1
2
3
4
11
50
60
70
40
20 40 600
Global CSP Marketing Priority Matrix
Factors impacting
marketingPercent of CMOs selecting
as ‘Top five factors’
UnderpreparednessPercent of CMOs reporting
underpreparedness
8 7
1112
6
3
7
6
1
24
5
109
© 2013 IBM Corporation11
In fact, in this amazing consumer revolution they feel their
customers pulling away rather than getting closer
18% 22% 60%
2011 IBM Telecom Consumer Survey across 25 countries: Global
average of advocacy levels in Telecommunications industry
Advocates AntagonistsApathetics
Customer advocacy in Retail industry is close to twice that of the Telecommunications industry
UK Germany Italy France Canada US Mexico Brazil
Retail
Industry
34% 33% 25% 26% 32% 39% 52% 51%
Telecom
Industry
20% 16% 17% 21% 13% 20% 24% 17%
© 2013 IBM Corporation12
Consumers increasingly rely on recommendations and suggestions
from friends/peers and social networks to help make decisions
70%
64%
51%
45%
31%
22%
19%
17%
66%
51%
28%
35%
19%
13%
23%
8%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Internet search
Recommendations/ advice
Social media
Websites of communication providers
Traditional advertising
Emails/ promotional offers
Retail stores
Shopping portals/ auctions
Emerging Markets
Mature Markets
“What are your preferred sources of information when you are
looking for communications products and services?
Source: IBM 2011 Global Consumer Survey (25 countries, 13237 consumers)
60% of internet
users in Asia use social
media to inform purchase
decisions
28% of internet users
in Asia would buy a brand
because a friend ‘likes’ it
on social networks
Source: Nielsen (2012) as cited in the ADMA yearbook
© 2013 IBM Corporation13
The good news is that an increasing number of CSPs have started
using social media to ‘listen & engage’ with customers
Groups
Individuals
Reactive Proactive
Mine
Conversations
Crowdsource
Insights
Provide
Answers
Influence
Influencers
Applying social approaches to listen & engage customers (±2/3 of respondents)
Today Next two years
Respond to
customer questions
Solicit customer
reviews and opinions
Capture
customer data
Identify and manage
key influencers
79%
59%
79%
47%
68%
47%
68%
35%
Source: Institute for Business Value, 2012 Business of Social Business Study
(% CSPs with customer-related social business activities)
© 2013 IBM Corporation14
Also ‘building communities’ and shifting social business activities
‘towards sales & support’ have become key CSP focus areas
Building Communities Shift to Sales & Support
Giffgaff (owned by O2 Telefonica) has developed a
unique approach to establish a community,
engaging customers, and driving social commerceToday Next two years
Promote events/
marketing campaigns
Generate sales leads
and revenue
Provide product and
services support
Sell products directly
to customers
82%
76%
79%
59%
76%
35%
71%
29%
Source: Institute for Business Value, 2012 Business of Social Business Study
(% CSPs with customer-related social business activities)Source: Giffgaff Case Study
© 2013 IBM Corporation15
Drive workforce productivity
and effectiveness
© 2013 IBM Corporation15
Drive
workforce
productivity and
effectiveness
© 2013 IBM Corporation16
Only one third of the CSPs in the Social Business adoption survey
has used social approaches to address workforce issues
The Value of Social Media is not limited to customers
CSPs in the forefront are using social business tools
to facilitate sharing and collaboration across the
business, including employees, business partners
and suppliers
© 2013 IBM Corporation17
For example, AT&T created a social network for their employees to
connect on new level and improve customer outcomes
Challenges:
Break down business unit and geographic
silos during the post- acquisition, post-
rebrand workforce
Create a culture of collaboration and
Provide access to people, information
and ideas
Share employee knowledge and
skills
"Today, more than 124,000 employees are using AT&T's TSpace to better
engage with their teams, increase productivity and promote innovation.“
- Blair Klein Executive Director Emerging Communications, AT&T
Results:
124,000 employees have increased productivity through the use of social platforms (wikis, blogs, profiles, file sharing, etc.)
Collaboration and innovation have become embedded in AT&T’s culture as demonstrated by 98% growth in the total number of communities
Business problems can be resolved in half the time or
even prevented through real-time discussion groups or “T-
Storms”
© 2013 IBM Corporation18
Over the next two years, the number of initiatives that enable
employees to connect with external parties will rise significantly
Today Next two years
Uses of social business for external
collaboration
Enable customer
interaction
Enable vendor/
partner interaction
Leverage external talent
(e.g., crowdsourcing)
29%
59%
24%
12%
Customers
PartnersVendors/
Suppliers
Workforce
CSP
Staffing Procurement Supply chain
management
Recruiting Onboarding Talent
development
Marketing Sales Product and
service innovation
Service
Business development
Education Sales and
service delivery
Source: Institute for Business Value, 2012 Business of Social Business Study
(% CSPs with workforce-related social business activities)
65%
65%
© 2013 IBM Corporation19
Accelerate innovation
© 2013 IBM Corporation19
Accelerate
innovation
© 2013 IBM Corporation20
Forty-four percent of the CSPs in the Social Business adoption
survey has used social approaches to accelerate innovation
Developing new
compelling services
are essential for an
industry suffering
from declining profit
levels Enabling structured
innovation efforts
Sourcing new ideas
from anyone
Using internal
communications to
innovate
Social approaches to spur innovation
© 2013 IBM Corporation21
For example, China Telecommunication Corp created an innovation
platform to connect employees, partners and customers
Challenges:
Build on knowledge and experience to
innovative and create solutions faster
Anticipate & analyze future needs such as
addition of third generation (3G) licensing
Bring distributed work groups together
through a unified communication system
Results:
Enabled marketing teams to analyze new intelligence gathered directly from consumers’ and launch new services using insight on that subscriber
Reduced opportunity costs and risk by expanding sources for new product ideas and by improving idea quality, increasing the chance of marketing success
Allowed 554 new “voices” into the development process during the first six months of the platform launch, with the publication of the first idea a mere ten minutes after launch
“The solution enables us to deliver exciting products to the
marketplace at a faster pace than ever before.”
—Niu Gang, Associate Director, Shanghai Research Institute, CT
© 2013 IBM Corporation22
Questions to ask yourself
© 2013 IBM Corporation22
© 2013 IBM Corporation23
Sell Thru Data
Financial DataCompetitive Data
Marketing Campaign
Data
CRM Data
Sentiment Analytics
Marketing campaign
optimization
Micro segment and
response prediction
Scenario analysis
What Do I offer ? When ? To whom ?
What should I invest in?
How do I identify and become more
intimate with audience segments?
How do I get a better ROI from my
marketing investments?
How can I better forecast demand in
different markets and channels?
How do I apply promotional tactics to
optimize revenue?
So
urc
eM
ark
et
Sell
Customer analyticsData sources Decisions
Social Media analytics help in developing insights that can lead to
better decisions about customers and the workforce
© 2013 IBM Corporation24
Social business transformation is a journey leading your
organization towards fundamentally new ways of working
What approaches is your organization using to listen to, and engage
with customers?
How do your marketing, sales, and customer service functions
coordinate around your social initiatives?
Key themes Questions to ask yourself
What areas of opportunity exist within your organization to improve
collaboration through social initiatives?
How could your organization use social approaches to better connect
with key stakeholders outside the organization?
• Where can improved idea generation have the greatest impact across
your organization?
• How could you better involve individuals outside the organization in
your innovation efforts?
© 2013 IBM Corporation25
Thank you Rob van den Dam
Global Telecom Industry Leader
IBM Institute for Business Value
[email protected] www.ibm.com/iibv