Our big conversation -  connecting for a better future - Mehmet Baser and Luis Alvarez
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Our big conversation - connecting for a better future - Mehmet Baser and Luis Alvarez

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Any previous idea of ‘balance’ based on the dominance of the West and established trading dynamics has already been seriously challenged. . Future economic growth will come primarily from Asia and ...

Any previous idea of ‘balance’ based on the dominance of the West and established trading dynamics has already been seriously challenged. . Future economic growth will come primarily from Asia and its speed in some economies will be astounding. Urbanisation will set the pattern of major demand centres. Individual wealth will grow, sometimes astonishingly. But so will disparities. Organisations that are serious about globalising successfully will need to understand where the action is happening and how to connect to it effectively. And the old assumptions of cheap capital and freely available resources will need to be discounted.

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  • BT in Turkey and the Region At BT we place great importance on understanding the global perspective.This is because we are a multinational organisation with a priority to operate globally and deliver locally.Here in Turkey, it is very clear that you understand globalisation and the opportunities that it presents. Taking advantage of your unique geographical position, Turkish companies are achieving big advances in everything from construction to confectionery. It is said that Turkey is a “Region as well as a country”. You enjoy good access to 1.5 billion customers in Europe, Eurasia, the Middle East and North Africa.And you have access to multiple markets worth USD 25 trillion of GDP.So you fully understand the importance and the opportunities of connecting to a global future.You are the 18th largest economy in the worldYou are expected to become the fastest growing economy among OECD members up to 2017 - with an annual average real GDP growth rate of 6.7 percent.You are Europe’s “energy pipeline and terminal”.And you have a successful history of globalisation yourselves and of hosting global companies.So – a country and a region of very great interest and a place that BT is committed to.
  • The opportunities for success – in Turkey A natural bridge between both East-West and North-South axes, thus creating an efficient and cost effective outlet to major marketsEasy access to 1.5 billion customers in Europe, Eurasia, the Middle East and North AfricaAccess to multiple markets worth USD 25 trillion of GDPTurkish Success StoriesTurkish investors are investing in 90 countries worldwideToday 19 holdings, including giants such as Koç, Sabancı, Zorlu, Anadolu, Doğuş and Fiba, have 300 companies, 64 production facilities and 70,000 employees abroad.Profiles of other recent Turkish success stories – Capital to provide.
  • Slide 1 - Connecting for a better future (title slide) Good morning and welcome. My name is Luis Alvarez and I am the CEO of BT Global Services.It is a great pleasure for me to be here with you in Istanbul today: this is an important country and an important region for us, and I look forward to meeting many of you through the morning.This morning’s theme is: ‘Connecting for a better future’We hope that you will have a challenging and interesting morning. Together, we will explore various aspects of what a ‘better future’ might look like. This is a conversation that keeps customers’ concerns at the heart of everything we all do in our various businesses and organisations. So today we are going to look at what ‘Connecting for a better future’ means to business and society, why it matters, and how to achieve it in the context of 4 Big Issues. I’ll come on to the 4 big issues in a moment.First, for those of you who may not know, I will share some brief background on what we call our BT Global Services Big Conversation.
  • The Four Big Issues Now, back to the theme of today - which is around what Connecting for a Better Future means.We believe the world is being rapidly re-shaped by four fundamental trends. They are what we will explore this morning. We believe these trends are: An unbalanced economyInstant globalisationThe power of the individualThe end to limitless resource Here’s my perspective on what these 4 big issues mean:
  • Unbalanced economy  Yesterday’s “safe markets” are today’s risks. The balance is changing constantly. New opportunities are emerging all over the world.  Let’s look at a few proof points:By 2025, annual consumption in emerging markets will reach $30 trillion—the biggest growth opportunity in the history of capitalism.Four of the world’s top 20 banks are now Chinese, with 54% of global profitability from the banking sector now coming from Asia Pacific banks. 
  • Instant globalisation The difference with today’s globalisation is the speed it happens with. Events on one side of the world have instant impact thousands of miles away.Trends that used to take 50 years are now having an impact in 5 years or less.For example, over the next 5 years, 40% of the world’s luxury products will be bought in China. Innovation is also at the heart of instant globalisationChina has increased its spending on R&D by 20 per cent a year for the past decade.
  • Global demands for resources are growing and supplies are shrinking. There are around seven billion people in the world, and every day that number grows by 215,000 (367,000 are born, 153,000 die). The World will need to produce more food in the next 50 years than it has in the last 10,000 years. Exxon Mobil has predicted that - by 2040 - global energy demand will be 30% higher than in 2010.
  • The power of the individual The impact of the internet, social media platforms, and connectivity has given the individual great influence. Indonesia has the second largest Facebook user base in the world, behind the US only.More than 200 million Chinese now have a social network account, with a forecast that this will reach almost 488 million by 2015. Of the 450 million smartphones sold in 2011, 160 million were sold in emerging markets, with China alone accounting for around 66%.Here in Turkey, you had 50 million internet users last year - up from 4 million in one decade.And you had 65 million mobile phone subscribers by 2011.There is also a fundamental shift happening in the way we live and work, as devices become more intelligent and video dominates communications.  An example of this is the impact of ‘BYOD’ – bring your own device54% of directors and GMs now want to use their own smartphone and tablet.
  • Keynote One: Market Trends – The Unbalanced Economy – key aspects and impacts of a changing global order. Speed of global changeSpeed of change, immediate impact of change and never-ending change are the key characteristics of the unbalanced economy. The ‘established order’ of economies is changing faster than at any time in history.It took 150 years for the UK to double GDP per capita. It took 64 years for Germany and 53 for the US. India took 17 years, China took 14 and Korea just 10 years.Everything is less certain tomorrowLast 30 years saw:Cheaper capitalCheaper labourTax cuts and less central interventionEach generation getting richer than their parentsNext 30 years will see:More expensive capitalResource prices volatile and increasingMore unequal labour marketMore government interventionThe “Economic powerhouse” will be in the emerging marketsCritical importance of the emerging markets3 BILLION people from emerging markets will become ‘middle class’ in the next decade.By 2025, nearly half of all global growth will come from “middleweight” cities in emerging markets.By 2020, emerging markets’ share of global financial assets is set to double.Re-location of global demand centresBy 2030, more than 90% of global energy demand growth could be coming from emerging markets.50% of known global oil reserves are held by just 4 countriesEurozone, North America and Japan continue to face economic challenges and consumer caution.Over the next 5 years 40% of the world’s luxury products will be bought in China.
  • Implications for Business GrowthYou need to get connected to the emerging centres of growth. You need to produce the goods and services that the ‘new consumers’ want to buy – and at competitive prices and margins.You need to find and leverage local talent in global organisations.You need to achieve ‘more with less’ – more growth with fewer resources, including capital and commodities.

Our big conversation -  connecting for a better future - Mehmet Baser and Luis Alvarez Our big conversation - connecting for a better future - Mehmet Baser and Luis Alvarez Presentation Transcript

  • BT Assure Connecting for a Better Future Mehmet Başer General Manager BT Turkey and Eastern Mediterranean© British Telecommunications plc Istanbul CXO Summit 1
  • Turkey – “A Region As Well As A Country” Access to markets worth USD 25 trillion of GDP Good access to Fastest growing 1.5 billion economy in customers in EuropeGDP Europe, Eurasia, growth was the Middle East 8.5% in 2011 and North Africa and is expected to be 4.5% in 2012© British Telecommunications plc Istanbul CXO Summit 2
  • Turkey – “Connected to Globalisation” Outside Turkey 300 companies 64 production Turkish facilities investment in 90 countries 70,000 worldwide employees© British Telecommunications plc Istanbul CXO Summit 3
  • Turkey – One Of The Next Game Changersin 2020 Russia: $4,243 Billion Poland: $836 Billion Turkey: China: $1,577 $15,264 Billion Billion India: $4,216 Vietnam: Billion Egypt: $254 Billion Mexico: $448 Billion $1,887 Billion Indonesia: $1,751 Billion The Brazil: $4,004 Philippines: Billion $386 Billion South Argentina: Africa: $620 $964 Billion Billion BRIC Countries Next Game Changers includes: Mexico, Argentina, Poland, Egypt, SoNote: The figure denotes uthGDP at market prices Africa, Turkey, Indonesia, Philippines , Vietnam© British Telecommunications plc Istanbul CXO Summit 4
  • BT Assure Connecting for a Better Future Luis Alvarez CEO BT Global Services© British Telecommunications plc Istanbul CXO Summit 5
  • Four big issues... An Instant unbalanced globalisation economy The power An end to of the limitless individual resources© British Telecommunications plc Istanbul CXO Summit 6
  • Four big issues... 2025, annual An consumption in emerging unbalanced markets will reach $30 economy trillion By 2015 ,43% of the worlds top 4 retailers 54% of global turnover will profitability from come from their the banking Asian sector is now operations. coming from Asia Pacific banks© British Telecommunications plc Istanbul CXO Summit 7
  • Four big issues... Global trends happen in 5 years not 50 Instant globalisation Asia Pacific is set to be the largest consumer population in the world by Over the next 5 2020 years 40% of the world’s luxury products will be bought in China© British Telecommunications plc Istanbul CXO Summit 8
  • Four big issues... Turkey is By 2040 global Europe’s energy demand “energy pipeline will be 30% and terminal” higher than in 2010 Emerging markets could account for over 90% of growth An end to in energy demand by limitless 2030 resources© British Telecommunications plc Istanbul CXO Summit 9
  • Four big issues... Turkey had 50 million internet 54% of directors users by 2011 now want to use their own smartphone and tablet 65 million The power mobile phone subscribers in of the Turkey in 2011 individual© British Telecommunications plc Istanbul CXO Summit 10 10
  • Four big issues... An Relocation of unbalanced global demand economy Major implications Speed of for businessglobal change Critical growth importance of emerging Everything markets LESS certain in the next 30 years© British Telecommunications plc Istanbul CXO Summit 11
  • Implications for Business Growth Price An competitively unbalanced Protect margins economy Produce and Get connected distribute the to new centres goods and of business services the growth new markets Do more want with less Leverage local talent in global organisations© British Telecommunications plc Istanbul CXO Summit 12 12