Staring into the abyss. Why Retaking Control over Service Innovation is Essential for Telcos'...

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Staring into the Abyss

description

Presentation given at the Opencloud Customer Forum. Review why Telcos must re-take control of service innovation from the brown-nosed middle managers of their strategic suppliers. Focus on customers and services. Embed telecom services everywhere and do more value added services. But it requires cultural change from the litany of excuses stifling innovation and a focus on telecom application developers.

Transcript of Staring into the abyss. Why Retaking Control over Service Innovation is Essential for Telcos'...

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Staring into the Abyss

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$$$?

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ISP

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OTT VoIP to cost telcos $479b to 2020.

— Ovum

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Now buy our reports and bespoke research – even though

we’ve never worked in a telco or supplier, we know your

business better than you! — Consultants and Analysts

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Reports of declining SMS revenue are wrong;

annual revenue will exceed 2010 levels until

2017. — Portio Research

We’re in a very fortunate position, our customers

are addicted to the internet, they keep using

more and more. — Alan Quayle

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>50%

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70%

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1900%

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But isn’t KakaoTalk killing SKT?

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The Brain Handles Positive and Negative Information in Differently

“The brain handles positive and negative information in different hemispheres. Negative emotions generally involve more thinking, and the information is processed more thoroughly than positive ones.” said Professor Nass, Stanford University

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KakaoTalk ChatON MyPeople Naver LINE

Free text yes yes yes yes

Free call yes no yes yes

Voice message yes yes yes yes

Send picture yes yes yes yes

Send video yes yes yes yes

Send… Contact Contact, animation message, calendar, document, location

Contact, cloud, location

Contact, location

Stickers and emoticons

Basic ones for free, everything else additional charges

free free Basic ones for free, everything else additional charges

Popup message ? yes yes yes

Language support 12 languages 60 languages Korean, English 9 languages

Available for

Android, iOS, Windows Phone, Bada OS, BlackBerry, PC (June ’13)

Android, iOS, Windows Phone, Bada OS, BlackBerry, web page

Android, iOS, and PC Android, iOS, Windows Phone, BlackBerry, PC

Special features

•Create your own theme for iPhone and Android •Plus friend (content from your favorite Kpop band)

•Animated messages (scribble) •Choose bubble styles •Broadcast •Shake it to connect

•Bot friend •Send music

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© 2013 Alan Quayle Business and Service Development

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How Operators Feel

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© 2013 Alan Quayle Business and Service Development

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How Operators Act

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MBA BS!

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Partnership?

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Partnership?

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Losers!

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Wholesale? This is Retail!

Customers Direct

Relationship

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This is also Retail Customer Relationship = Survival

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Fixed Voice

($325B)

Mobile Voice

($615B)

Fixed Data

($275B)

Mobile Data

($275B)

Regulated Services($1.5T)

Un-regulated Services($650B)-5 to -7%

5.5 to 9%

3 to 4%

0 to 2%

0-2%

Total Telecoms Services($2.15T)

3-6%

+ =

Over the Top Messaging hits SMS growth

Mobile substitution of fixed broadband with LTE

OTT substitution, saturation, competition

Mobile and OTT substitution

Sources: operator averages across developed and developing markets, supplier estimates, Alan Quayle

1-3.3%

Threats to Revenue

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Brown-Nosed Middle

Manager!

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Market Chatter is Monopolized

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Mobile Everything,

WebRTC

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Customers

Services

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Fixed Voice

($325B)

Mobile Voice

($615B)

Fixed Data

($275B)

Mobile Data

($275B)

Regulated Services($1.5T)

Un-regulated Services($650B)-5 to -7%

5.5 to 9%

3 to 4%

0 to 2%

0-2%

Total Telecoms Services($2.15T)

3-6%

+ =

Over the Top Messaging hits SMS growth

Mobile substitution of fixed broadband with LTE

OTT substitution, saturation, competition

Mobile and OTT substitution

Sources: operator averages across developed and developing markets, supplier estimates, Alan Quayle

1-3.3%

Threats to Revenue

There’s just 2 things we need to focus on

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Make Telecoms an Essential Spice for every Business Recipe

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Do more VAS!

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This is Nature. Crawl, Walk, Run!

Not, Create some PowerPoint & Go Big Game Hunting.

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No. We tried a similar service in our market

and it failed, and we’re never ever going to try

again

What do you think of this service idea?

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No. It will not work in our market. Because I’m a 50 year old guy

who understands all my customers better than they know themselves.

What do you think of this service idea?

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No. A feature of your service overlaps with an

existing.

What do you think of this service idea?

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No. We have a similar service launched, and

are not going to experiment in trying to

make it better or address other customer

segments.

What do you think of this service idea?

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No. Our network can not support such as service, even though

such services are going over the top today.

What do you think of this service idea?

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No. It looks a bit like Joyn, which we’re not

sure about, but because it looks a bit like

something we may do in the future we’re not

going to do it.

What do you think of this service idea?

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No. It must work across all devices, even though most devices will never

use it.

What do you think of this service idea?

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No. We need additional (random) features

included before we could consider it.

What do you think of this service idea?

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No. It must work on IMS (even though it

doesn’t need to).

What do you think of this service idea?

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No. It must work across all our customers from day one, even though most will never use it.

What do you think of this service idea?

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No. It must conform to our process and design norms. But we’re not going to tell you what

they are, and you’ll have to build them in

on your dime.

What do you think of this service idea?

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No. It must integrate with all our existing

platforms, even though it can work fine in the current configuration.

What do you think of this service idea?

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No. It must be delivered through our preferred

SI or NEP, who will copy / kill the service

immediately.

What do you think of this service idea?

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No. You must work through our app store / portal, which we’re in the process of closing.

What do you think of this service idea?

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No. We can only focus on 4 service launches

per year. We only back major successes like

Video Telephony, Mobile TV, Push To Talk,

See What I See…

What do you think of this service idea?

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No. We just don’t have the bandwidth, to do

our job.

What do you think of this service idea?

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No. We have a network lock-down as we launch

LTE so cannot do anything for the next 6-

9 month.

What do you think of this service idea?

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No. Bob has left the business and we’re

waiting on his replacement, who

never comes.

What do you think of this service idea?

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No. We’re waiting on annual budgets to be

confirmed, sometime in the next 6-12 months.

What do you think of this service idea?

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No. We’re re-organizing again this year.

What do you think of this service idea?

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No. Someone in the organization doesn’t

like such services.

What do you think of this service idea?

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No. That cannot be implemented without

changing our IN / product catalog / CRM /

billing / network.

What do you think of this service idea?

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No. We cannot bill / sell services under $5 per

month.

What do you think of this service idea?

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No. We have a backlog of 24 months on billing updates, even though

the service doesn’t need to be in that

pipeline.

What do you think of this service idea?

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No. You must work through our innovation group who we all hate and ignore as they’re

parasites on our business.

What do you think of this service idea?

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No. You must talk with Bob who will then pass

you to Bill, who will then pass you to Mary, who will then pass you to Paul, who will then pass you back to Bob.

What do you think of this service idea?

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Telecom Application Developer Ecosystem R

eve

nu

e

Product

Internal Telco Developers

Partner Developers

Telecom App Developers

Mobile App Developers

Long Tail Developers

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