Strategizing to a Digital Future€¦ · Digital Imperatives Strategic imperatives driving digital...

1Copyright © 2019 Deloitte (M.E.). All rights reserved. tmforum Digital Transformation Middle East – User Centric Business Transformation

Strategizing to a Digital Future Customer Centric Business Transformation Track

J A N U A R Y 2 1 S T , 2 0 1 9

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Kickstarter: the coffee storyHuman-izing Digital

Digital ImperativesStrategic imperatives driving digital in the industry

The Middle East Digital LandscapeNations are taking the leap into being more digital

Digital Transformation JourneyThe journey from exploring digital to being digital

Digital Telco: the enabler Enabling new adjacent markets

The “New” CustomerCustomer needs are evolving

How are we digitizing – A Glance?

Strategizing to a digital future

The Middle East & the role of the digital telco


…asks questions after questions…

…gets to ‘roaming complaint’…

…agent can’t resolve issue and directs me to the app…

I am disconnected cant do nothing

ChatBot greets me by name…

…transfers call to agent…

…I explain the issue all over again…

…issue doesn’t get resolved…

…I go through the hoops again…

…I visit the store…

…inquires why I didn’t come yesterday…

…prepares my small Americano with milk on the side as soon as I walk in no questions asked…

…offers me upsells based on buying behaviors & preferences…

Experience:

Have we really delighted the customer yet? Not quite.

1. Coffee storeI walk into my habitual coffee store…

• Only human interaction over 1 year

• Preferences learnt over time

• Delightful experience that creates belonging to the interaction

Greets me by name…

2. Telco operatorI encounter a roaming issue…

• Digital interaction over 7 years

• Preferences not learnt over time (still asks for language preferences)

• Frustrating experience that takes very long to get customer to what they want

Experience:

PersonalizedUser-friendly

servicePersonalized

User-friendly service


Who is the new customer then? The customer is well informed, has high expectations, and connected all the time.

Product information and inspiration aswell as recommendation through socialmedia

Mindful communication behaviors? Growing amount of users of sharing info on telco products

Connected media providers

Around 2.6 hours per day are 25-34 year-olds using internet

45% of smartphone owners are making purchases using a mobile device every month

64% of customers intend to research online before buying telco products

Less is more

Digital consumer own 3.64 connected devices

Source: Deloitte research and analysis 2018


What are the strategic imperatives for being digital? Strategic intents drive the strategic outcomes.

Strategic IntentDigital is a means to…

• Adjacent and more transformational sectors and markets

• Simplify and exponentially improve customer experience

• Improve operational efficiency to improve cost models

• Transform business models

Strategic OutcomesDigital can help achieve…

• Customer intimacy

• Talent retention and attraction

• Growth and profitability

• Shareholder Value

Customer relationship remains with Telcos

Telcos are fully displaced from customer relationship

Technology competence returns to telco players

Technology competence displaced from Telco Players

The Engineer strikes back

A Vendor Brand

The Virtual Telco

The New Wholesale Truth

Telco 2030 identity choices

Source: Deloitte Telco 2030; Note: 1) Market share is gradually reducing, 2) ~10% of the 2025 estimate of 27BN IoT connections, 3) GAFA: Google, Apple, Facebook, Amazon

Critical size in global number of clients> 1Bn customers

Critical size in number of service partners> 1Bn coverage aggregated FTTH/4G

> 3Bn clients and sensors2

Critical size in number of clients and local infrastructure1

> 1Bn clients and >500M mutualized FTTH/4G coverage

Critical size in local infrastructure> 500M mutualized FTTH/4G coverage

The virtual telco The engineer strikes back

The new wholesale truth A vendor brand


What are the strategic imperatives for being digital? Strategic intents drive the strategic outcomes.

Strategic IntentDigital is a means to…

• Adjacent and more transformational sectors and markets

• Simplify and exponentially improve customer experience

• Improve operational efficiency to improve cost models

• Transform business models

Strategic OutcomesDigital can help achieve…

• Customer intimacy

• Talent retention and attraction

• Growth and profitability

• Shareholder Value

Customer relationship remains with Telcos

Telcos are fully displaced from customer relationship

Technology competence returns to telco players

Technology competence displaced from Telco Players

The Engineer strikes back

A Vendor Brand

The Virtual Telco

The New Wholesale Truth

Telco 2030 identity choices

Source: Deloitte Telco 2030; Note: 1) Market share is gradually reducing, 2) ~10% of the 2025 estimate of 27BN IoT connections, 3) GAFA: Google, Apple, Facebook, Amazon

Critical size in global number of clients> 1Bn customers

Critical size in number of service partners> 1Bn coverage aggregated FTTH/4G

> 3Bn clients and sensors2

Critical size in number of clients and local infrastructure1

> 1Bn clients and >500M mutualized FTTH/4G coverage

Critical size in local infrastructure> 500M mutualized FTTH/4G coverage

Invest in network infrastructure and long

term technologies (fiber, 5G…) in a mutualized

way

Positioning as a Hub of networks (bonding,

SDN, …) and heterogeneous service actors

Separate the network and service activities to

manage heterogeneous dynamics

Operation excellence: automate processes

and transform

Provide the best client experience through

operational excellence, network

infrastructure and long term technologies

mutualized investments Keep bargaining

power against GAFAs3 and vendors through

consolidation

Positioning on services that reinforce the

width of the client relationship (content,

bank, AI, e-commerce…)

Carry the best services and assistance

experiences for clients

The virtual telco The engineer strikes back

The new wholesale truth A vendor brand


Where does the difference lie? Digital leaders outperform digital wannabes in these core business areas.

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**

Top Digital Benchmark Average Telco Digital Maturity

Telcos have historically been great at making technological advancements while there is a lot to learn and adapt from other nimble and digital native players who generally come from other adjacent industries like e-commerce, media and OTT

CustomerCulture Operations Strategy Technology


Strategizing to a digital future


How does an organization become digital? Becoming a digital organization is highly intentional.

A HEAD START

HOW DIGITAL YOU ARE TODAY

It’s critical to understand your level of digital organizational maturity today so you know where to begin and what to leverage

HOW DIGITAL YOU NEED TO BECOME

Digital transformation is a journey. Recognizing where you need to get to in 6, 12, and 18 months helps prioritize focus, energy and investments

HOW DO YOU GET THERE

Change happens more rapidly when you infuse digital traits into the existing legacy environment – your organizational DNA

Exploring DigitalLeverage traditional technologies to automate existing capabilities. Dabbling with digital. No change to the organization.

Doing DigitalLeverage digital technologies to extend capabilities, but still largely focused around same business, operating, and customer models.

Becoming DigitalLeverage digital technologies – becoming more synchronized and less siloed – with

more advanced changes to current business, operating, and customer models.

Being DigitalBusiness, operating, and customer

models are optimized for digital and profoundly different from prior business,

operating, and customer models.

The Digital Journey…….


Where to start? Organizations must first assess how digitally mature they are before taking any initiatives to transform.

Value Add

Analyze current digital maturity holistically

Set clear targets for transformation, short, medium and long term

Track and measure maturity progress through digital index

Digital Maturity is increased through strategic digital initiatives that come out of DMA

Run strategic digital initiatives by implementing a digital operating model

Strategy

• 5 Key Dimensions• 28 Capability Domains• 170+ Criteria• Easily used enterprise-wide• Industry-agreed model• Benchmark capable

CustomersOperations

TechnologyCulture, people,

organization

Digital Maturity Framework Purpose of the Digital Maturity Model

Foster Innovation

Personalized customer

experience

Operational excellence

Digital technology architecture

Enablement and encouragement

AgilityDigital culture &

ownershipData

harmonization

Targeted Marketing &

Products

Digital governance


Why is a customer-centric approach required? Technological innovation & economic trends have empowered the customer.

Digital Operating ModelClassic Telco Operating Model

Op

era

tin

g

Mo

de

l L

ay

ers

Legacy telco operating model’s main shortcoming is hat it never starts with customer in mind. The model is built layer on top of layer with weak interlinkages

Customer

experience

Flexible

organization

Innovation

1

5

4

3

2

Partnerships & alliances6

3

2

5

6

1

4

Customer-centric strategy & experience

E2E processes facelifted by robotics, automation, and AI

IT & Network infrastructure enabling agile business delivery

Organizational structures adapt to new customer-centric processes

Continues effort to innovate business and offerings

Partnerships and alliances evolve business delivery

Digital operating models have evolved to take digital intent telcos through a customer-led operationalization approach and building the business around the customer


Who runs the digital transformation initiatives? The role of DVO in the Digital Transformation Lifecycle is to orchestrate the transformation journey.

Development Scaling Sourcing Blueprint

Digital FactoryDigitisation – Initiation

Strategy articulation

Consult key stakeholders

Determine governance structure

Secure funding

Prioritize initiatives and develop roadmap

Outside-In

Change

Management

Digital

Maturity

Design & Assurance

Value

Proposition

Partner Ecosystem

Technology & Platforms

Ideas In

Minimum viable

product

Business

case

Executive

approval

Funding &

Implementation

Track &

measure

benefits

Concept to MVP MVP to Reality

Predefined

annual

budget

Custodian Telco’s Digital

Ecosystem

Digital maturity

progression

Flexible delivery models

Contribution to digital funding

Digital leadership

across enterprise

Pioneer Differentiated

service offerings

DVO orchestrates

Legend


The Middle East Digital Landscape & Evolving Digital Telco


••

•

•

•••

How the Middle Eastern nations are taking the leap into being more digital? National visions cascade down into digital initiatives across the countries.


Cloud computing

Augmented/virtual reality

Robotics

Autonomous vehicles

Blockchain

Cyber security

IoT

Artificial intelligence

3D printing

Analytics/Big Data

Sensor technology

Future of mobility

Classroom of the future

Smart

tourismSmart cities

Rise of robot & drone armies

IoT in defense

Smart governments

Public Sector Trends

ICT Technologies

High

Low

High

Low

Security 2.0

Sustainable consumption

Digital customer

Smart environment data & devices

Integratednational platform

5G, 4G & 3G

SDN/ NFV

Digital twins

LIFI

Next gen. care

Social

Unnamed aerial Vehicles

Healthcare data revolution

Patient-powered healthcare

School Systems 2.0

Tomorrow’s curriculum

POL

OTN

Predictive crowd flows

Real-time location services

Non-exhaustive

National Transformation platform

High

Impact

High

Focus areas across in Middle East Digital Arena … …translating into 6 Digital Themes in the Middle East

What are the key sectors being targeted? Areas of focus are assessed, prioritized, and kicked-off.


Digital

Telco

How can governments overcome their transformation challenges 1 ? The digital telco can fill the gap.

Legend

1 The interventions have been proposed for a subset of challenges, Deloitte Research & Analysis 2018


How can future digital telcos deliver digital transformations? By acting as the solution enablers in the ecosystem.

Technologies

Ecosystem

Cloud

Predictive Analytics/ Big Data

Integrated PlatformsSDN

IoT

NextGenSecurity

AI

Robotics

AR/VR

3D Printing

Sensors

Blockchain

National

government

State

leadership

Businesses &

citizens

Technology

Professional

Services Future

Digital

Telco

Relationship with digital telcoLegend

This publication contains general information only, and none of the member

firms of Deloitte Touche Tohmatsu Limited, its member firms, or their related

entities (collective, the “Deloitte Network”) is, by means of this publication,

rendering professional advice or services. Before making any decision or taking

any action that may affect your business, you should consult a qualified

professional adviser. No entity in the Deloitte Network shall be responsible for

any loss whatsoever sustained by any person who relies on this publication.

As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary

of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description

of the legal structure of Deloitte USA LLP, Deloitte LLP and their respective

subsidiaries. Certain services may not be available to attest clients under

the rules and regulations of public accounting.

Copyright © 2019 Deloitte & Touche (M.E.). All rights reserved. Member of Deloitte Touche Tohmatsu Limited

Further informationHasan Iftikhar

Director - Consulting

Contact: [email protected]

Strategizing to a Digital Future€¦ · Digital Imperatives Strategic imperatives driving digital...

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