Telecom’s future is Social (GSMA Mobile Asia 2013)


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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.

Published in: Technology, Business

Telecom’s future is Social (GSMA Mobile Asia 2013)

  1. 1. Rob van den Dam, Global Telecom Leader IBM Institute for Business Value 27 June 2013 Telecom’s future is social The value of social business for telecom providers © 2013 IBM Corporation
  2. 2. The IBM Institute for Business Value creates fact based thought leadership that help clients realize business value Future Agendas CXO Surveys 3 to 10 year industry outlook with action oriented next steps 2 Value Realization Studies In-depth assessment of today’s critical issues, opportunities, etc Chief Officiers studies – CEO, CIO, CMO, CFO, CHRO, etc. © 2013 IBM Corporation
  3. 3. 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 3 © 2013 IBM Corporation
  4. 4. Why is Social Business important for CSPs? 4 © 2013 IBM Corporation © 2013 IBM Corporation
  5. 5. CSPs increasingly realize that it is key to more effectively engage with customers, employees and partners, ánd to stimulate innovation 93% of CSPs will 56% of CSPs plan 67% of CSPs focus focus more on “getting closer to the customer” over the next 5 years. dramatic improvements in internal collaboration and on industry model innovation to find new sources of revenue. 70% focus on significantly improving collaborating with other organizations. – IBM CEO Study 2010 5 – IBM CEO Study 2012 2010 – IBM CHRO Study 2010 © 2013 IBM Corporation
  6. 6. 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 6 Drive workforce productivity and effectiveness Source: Institute for Business Value, 2012 Business of Social Business Study Accelerate innovation © 2013 IBM Corporation
  7. 7. 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 Investment has increased in 2012 58% 49% Percentage underprepared for SB Underprepared for the necessary cultural changes Unsure about impact of social business over next three years Limited understanding of the business value we intend to obtain 85% 66% 55% Source: Institute for Business Value, 2012 Business of Social Business Study 7 © 2013 IBM Corporation
  8. 8. Create valued customer experiences 8 Create valued customer experiences © 2013 IBM Corporation © 2013 IBM Corporation
  9. 9. Internet, the mobile and social media has led to an amazing consumer revolution as profound as any seen before Today, there are roughly 1.3 Billion users online in Asia 9 Source: Internetworldstats 900 There are close to Million social media users in Asia Source: (March 2013) 800 Roughly Million users in Asia are assessing the internet from mobile devices Source: eMarketer © 2013 IBM Corporation
  10. 10. 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 CSP Marketing Priority Matrix 3 11 1 7 60 2 4 8 50 12 7 11 Factors impacting marketing Percent of CMOs selecting as ‘Top five factors’ 40 10 0 20 40 60 6 ROI accountability 8 Regulatory considerations Emerging market opportunities 10 5 6 Decreasing brand loyalty Shifting consumer demographics 9 10 9 Data explosion 5 3 Social media 7 70 Growth of channel and device choices 4 Percent of CMOs reporting underpreparedness Customer collaboration and influence 2 6 Underpreparedness 1 Financial constraints 11 Privacy considerations 12 Corporate transparency 13 Global outsourcing Mean © 2013 IBM Corporation
  11. 11. In fact, in this amazing consumer revolution they feel their customers pulling away rather than getting closer 2011 IBM Telecom Consumer Survey across 25 countries: Global average of advocacy levels in Telecommunications industry 18% 22% 60% Advocates Apathetics Antagonists 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% Customer advocacy in Retail industry is close to twice that of the Telecommunications industry 11 © 2013 IBM Corporation
  12. 12. Consumers increasingly rely on recommendations and suggestions from friends/peers and social networks to help make decisions “What are your preferred sources of information when you are looking for communications products and services? 70% 66% Internet search Social media 51% 28% 45% 35% Websites of communication providers Traditional advertising 28% of internet users 31% 19% Emails/ promotional offers 22% 13% Retail stores 19% 23% Shopping portals/ auctions users in Asia use social media to inform purchase decisions 64% 51% Recommendations/ advice Emerging Markets Mature Markets 17% 8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 12 60% of internet Source: IBM 2011 Global Consumer Survey (25 countries, 13237 consumers) 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 Corporation
  13. 13. The good news is that an increasing number of CSPs have started using social media to ‘listen & engage’ with customers Applying social approaches to listen & engage customers (±2/3 of respondents) 59% Respond to customer questions 79% Capture customer data 47% Solicit customer reviews and opinions Identify and manage key influencers Today 13 Mine Conversations Crowdsource Insights Provide Answers Influence Influencers Reactive Proactive 47% Groups 79% 68% 35% Individuals 68% Next two years Source: Institute for Business Value, 2012 Business of Social Business Study (% CSPs with customer-related social business activities) © 2013 IBM Corporation
  14. 14. Also ‘building communities’ and shifting social business activities ‘towards sales & support’ have become key CSP focus areas Building Communities Shift to Sales & Support 76% 82% Promote events/ marketing campaigns Generate sales leads and revenue Provide product and services support Sell products directly to customers Giffgaff (owned by O2 Telefonica) has developed a unique approach to establish a community, engaging customers, and driving social commerce 14 Source: Giffgaff Case Study Today 59% 79% 35% 76% 29% 71% Next two years Source: Institute for Business Value, 2012 Business of Social Business Study (% CSPs with customer-related social business activities) © 2013 IBM Corporation
  15. 15. Drive workforce productivity and effectiveness 15 15 Drive workforce productivity and effectiveness © 2013 IBM Corporation © 2013 IBM Corporation
  16. 16. 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 16 © 2013 IBM Corporation
  17. 17. For example, AT&T created a social network for their employees to connect on new level and improve customer outcomes Challenges: Results: Break down business unit and geographic silos during the post- acquisition, postrebrand workforce 124,000 employees have increased productivity through the use of social platforms (wikis, blogs, profiles, file sharing, etc.) Create a culture of collaboration and Provide access to people, information and ideas Collaboration and innovation have become embedded in AT&T’s culture as demonstrated by 98% growth in the total number of communities Share employee knowledge and skills Business problems can be resolved in half the time or even prevented through real-time discussion groups or “TStorms” "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 17 © 2013 IBM Corporation
  18. 18. Over the next two years, the number of initiatives that enable employees to connect with external parties will rise significantly Uses of social business for external collaboration Enable customer interaction Enable vendor/ partner interaction 29% 65% 18  Staffing  Procurement  Supply chain management 24% 59% Leverage external talent 12% (e.g., crowdsourcing) Today Customers 65% Next two years Source: Institute for Business Value, 2012 Business of Social Business Study (% CSPs with workforce-related social business activities) Vendors/ Suppliers  Marketing  Sales  Product and service innovation  Service CSP  Recruiting  Onboarding  Talent development Partners  Business development  Education  Sales and service delivery Workforce © 2013 IBM Corporation
  19. 19. Accelerate innovation 19 19 Accelerate innovation © 2013 IBM Corporation © 2013 IBM Corporation
  20. 20. Forty-four percent of the CSPs in the Social Business adoption survey has used social approaches to accelerate innovation Social approaches to spur innovation Developing new compelling services are essential for an industry suffering from declining profit levels 20 Sourcing new ideas from anyone Using internal communications to innovate Enabling structured innovation efforts © 2013 IBM Corporation
  21. 21. For example, China Telecommunication Corp created an innovation platform to connect employees, partners and customers Challenges: Results: Build on knowledge and experience to innovative and create solutions faster Enabled marketing teams to analyze new intelligence gathered directly from consumers’ and launch new services using insight on that subscriber Anticipate & analyze future needs such as addition of third generation (3G) licensing Bring distributed work groups together through a unified communication system 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 21 © 2013 IBM Corporation
  22. 22. Questions to ask yourself 22 22 © 2013 IBM Corporation © 2013 IBM Corporation
  23. 23. Social Media analytics help in developing insights that can lead to better decisions about customers and the workforce Sentiment Analytics Micro segment and response prediction Decisions Source Customer analytics Market Data sources Financial Data 23 Marketing campaign optimization Marketing Campaign Data Competitive Data Sell CRM Data Sell Thru Data 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? Scenario analysis © 2013 IBM Corporation
  24. 24. Social business transformation is a journey leading your organization towards fundamentally new ways of working Key themes Questions to ask yourself  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?  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? 24 © 2013 IBM Corporation
  25. 25. Thank you 25 Rob van den Dam Global Telecom Industry Leader IBM Institute for Business Value © 2013 IBM Corporation