telecom’s future is social (gsma mobile asia 2013)

© 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

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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


Why is Social Business

important for CSPs?



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


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


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


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


Create valued customer

experiences

© 2013 IBM Corporation

Create valued

customer

experiences

8


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


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


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%


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


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%


(% CSPs with customer-related social business activities)


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%


(% CSPs with customer-related social business activities)Source: Giffgaff Case Study

http://www.lithium.com/pdfs/casestudies/Lithium-giffgaff-Case-Study.pdf


Drive workforce productivity

and effectiveness


Drive

workforce

productivity and

effectiveness


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


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”


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


(% CSPs with workforce-related social business activities)

65%

65%


Accelerate innovation


Accelerate

innovation


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


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


Questions to ask yourself



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


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?


Thank you Rob van den Dam

Global Telecom Industry Leader

IBM Institute for Business Value

[email protected] www.ibm.com/iibv

telecom’s future is social (gsma mobile asia 2013)

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