Impact of Digital on Telco Business Model, case of Si.mobil

1. Si.mobil Impact of Digital on Telco Business Model  David Rozman | 07.10.2014

2. 1. WHAT IS A BUSINESS MODEL?

3. A simplified expression of company strategy on how to make money Business Model WHAT IS A BUSINESS MODEL?

4. Key Business Model Elements WHAT IS A BUSINESS MODEL? COST SIDE VALUE SIDE 1. Value Proposition 4. Customer Relationship 2. Customers 5. Revenue 3. Channels 9. Costs 6. Key Resources 8. Key Partners 7. Key Activities

5. Si.mobil Business Model WHAT IS A BUSINESS MODEL? Automation   where possible Personal Assistance Key Accounts Residential pre &  post-paid Customers Business  Customers Simple & Carefree Communication Services Voice and Data Fees Other Revenues Marketing & Sales Channel Operations Network & IT Ops Marketing & SalesChannel Costs Network Operations General and Administrative exp. HW Vendors Regulatory   Agencies Franchises Workforce &   Employees Knowhow Physical, IT &   Network Infrasturcture Shops & Call Center Digital

6. 2. HOW CAN DIGITAL BENEFIT SI.MOBIL BUSINESS MODEL Value Proposition Customer Relationship Customers ChannelsCosts

7. Impact of Digital on Si.mobil Business Model 2. HOW CAN DIGITAL BENEFIT SI.MOBIL BUSINESS MODEL Automation   where possible Personal Assistance Key Accounts Residential pre &  post-paid Customers Business  Customers Simple & Carefree Communication Services Voice and Data Fees Other Revenues Marketing & Sales Channel Operations Network & IT Ops Marketing & SalesChannel Costs Network Operations General and Administrative exp. HW Vendors Regulatory   Agencies Franchises Workforce &   Employees Knowhow Physical, IT &   Network Infrasturcture Shops & Call Center Digital Automation ➡Channel Costs ➡Channel Operations ➡Workforce   ︎Employees Knowhow Digital 24/7 & Wherever   Access to Services ➡Personal Assistance ➡Key Accounts ➡Shops & Call Center

8. Example of GOV.UK cost per transactions calculation Channel Costs can be significantly lowered by shifting transactions to digital channels 2. HOW CAN DIGITAL BENEFIT SI.MOBIL BUSINESS MODEL Cost per transaction = Total cost of providing the service without startup costs Total number of completed transactions Cost per digital transaction = Total cost of providing the digital service without startup costs Total number of transactions completed digitally Digital vs. non digital transactions = 20x cheaper  than phone 30x cheaper  than postal 50x cheaper than   face-to-face https://www.gov.uk/government/publications/government-digital-strategy/government-digital-strategy https://www.gov.uk/service-manual/measurement/cost-per-transaction.html

9.   For desired effect digital take-up should be increased across whole customer lifecycle 2. HOW CAN DIGITAL BENEFIT SI.MOBIL BUSINESS MODEL Buy Start-Up Get Support Use & Pay Renew or LeaveExplore ⥁ IMPACT ON BUSINESS MODEL - Company should addopt to the digital first princip as online is most important touchpoint prior purchase - Enablig eSales as more customers want to buy online is also opportunity to lower channel costs - Digital can enable efficient on-boarding experince - Call volumes can be deflected with eHelp and eCare - eBill can be more convenient & up to 8x cheaper then paper bill - Online is efficient & convenient for contract renewals ↑ KEY ACTIVITES - Define Digital Strategy - Data Driven Decisioning & Optimisation - Validate user experience & remove choice noise to simplify design - Embrace responsive design - Digital styleguide to ensure UX consistency, FTM and reduce costs - Manage content semi-independently for FTM - Optimise site for SEO & fast page loads - Hire digital experts and invest in training ↑ KEY RESOURCES & PARTNERS - Employees knowhow - Centralized & customer centric IT infrastructure - Cloud solutions and specialized agnecies

16. 3. KEY ACTIVITES Key Activities

17.   For desired effect digital take-up should be increased across whole customer lifecycle 3. KEY ACTIVITES, RESOURCES & PARTNERS Buy Start-Up Get Support Use & Pay Renew or LeaveExplore WHAT WHO HOW HOW WELL activities people processes &   technology KPI’s &  targets ⥁ IMPACT ON BUSINESS MODEL - Company should addopt to the digital first princip as online is most important touchpoint prior purchase - Enablig eSales as more customers want to buy online is also opportunity to lower channel costs - Digital can enable efficient on-boarding experince - Call volumes can be deflected with eHelp and eCare - eBill can be more convenient & up to 8x cheaper then paper bill - Online is efficient & convenient for contract renewals ↑ KEY ACTIVITES - Define Digital Strategy - Data Driven Decisioning & Optimisation - Validate user experience & remove choice noise to simplify design - Embrace responsive design - Digital styleguide to ensure UX consistency, FTM and reduce costs - Manage content semi-independently for FTM - Optimise site for SEO & fast page loads - Hire digital experts and invest in training ↑ KEY RESOURCES & PARTNERS - Employees knowhow - Centralized & customer centric IT infrastructure - Cloud solutions and specialized agnecies

18.   For desired effect digital take-up should be increased across whole customer lifecycle 3. KEY ACTIVITES, RESOURCES & PARTNERS Buy Start-Up Get Support Use & Pay Renew or LeaveExplore ⥁ IMPACT ON BUSINESS MODEL - Company should addopt to the digital first princip as online is most important touchpoint prior purchase - Enablig eSales as more customers want to buy online is also opportunity to lower channel costs - Digital can enable efficient on-boarding experince - Call volumes can be deflected with eHelp and eCare - eBill can be more convenient & up to 8x cheaper then paper bill - Online is efficient & convenient for contract renewals ↑ KEY ACTIVITES - Define Digital Strategy - Data Driven Decisioning & Optimisation - Validate user experience & remove choice noise to simplify design - Embrace responsive design - Digital styleguide to ensure UX consistency, FTM and reduce costs - Manage content semi-independently for FTM - Optimise site for SEO & fast page loads - Hire digital experts and invest in training ↑ KEY RESOURCES & PARTNERS - Employees knowhow - Centralized & customer centric IT infrastructure - Cloud solutions and specialized agnecies 2x

19.   For desired effect digital take-up should be increased across whole customer lifecycle 3. KEY ACTIVITES, RESOURCES & PARTNERS Buy Start-Up Get Support Use & Pay Renew or LeaveExplore ⥁ IMPACT ON BUSINESS MODEL - Company should addopt to the digital first princip as online is most important touchpoint prior purchase - Enablig eSales as more customers want to buy online is also opportunity to lower channel costs - Digital can enable efficient on-boarding experince - Call volumes can be deflected with eHelp and eCare - eBill can be more convenient & up to 8x cheaper then paper bill - Online is efficient & convenient for contract renewals ↑ KEY ACTIVITES - Define Digital Strategy - Data Driven Decisioning & Optimisation - Validate user experience & remove choice noise to simplify design - Embrace responsive design - Digital styleguide to ensure UX consistency, FTM and reduce costs - Manage content semi-independently for FTM - Optimise site for SEO & fast page loads - Hire digital experts and invest in training ↑ KEY RESOURCES & PARTNERS - Employees knowhow - Centralized & customer centric IT infrastructure - Cloud solutions and specialized agnecies

25.   For desired effect digital take-up should be increased across whole customer lifecycle 3. KEY ACTIVITES, RESOURCES & PARTNERS Buy Start-Up Get Support Use & Pay Renew or LeaveExplore ⥁ IMPACT ON BUSINESS MODEL - Company should addopt to the digital first princip as online is most important touchpoint prior purchase - Enablig eSales as more customers want to buy online is also opportunity to lower channel costs - Digital can enable efficient on-boarding experince - Call volumes can be deflected with eHelp and eCare - eBill can be more convenient & up to 8x cheaper then paper bill - Online is efficient & convenient for contract renewals ↑ KEY ACTIVITES - Define Digital Strategy - Data Driven Decisioning & Optimisation - Validate user experience & remove choice noise to simplify design - Embrace responsive design - Digital styleguide to ensure UX consistency, FTM and reduce costs - Manage content semi-independently for FTM - Optimise site for SEO & fast page loads - Hire digital experts and invest in training ↑ KEY RESOURCES & PARTNERS - Employees knowhow - Centralized & customer centric IT infrastructure - Cloud solutions and specialized agencies

26. 4. KEY RESOURCES & PARTNERS Key Resources Key Partners

27.   For desired effect digital take-up should be increased across whole customer lifecycle 3. KEY ACTIVITES, RESOURCES & PARTNERS Buy Start-Up Get Support Use & Pay Renew or LeaveExplore ⥁ IMPACT ON BUSINESS MODEL - Company should addopt to the digital first princip as online is most important touchpoint prior purchase - Enablig eSales as more customers want to buy online is also opportunity to lower channel costs - Digital can enable efficient on-boarding experince - Call volumes can be deflected with eHelp and eCare - eBill can be more convenient & up to 8x cheaper then paper bill - Online is efficient & convenient for contract renewals ↑ KEY ACTIVITES - Define Digital Strategy - Data Driven Decisioning & Optimisation - Validate user experience & remove choice noise to simplify design - Embrace responsive design - Digital styleguide to ensure UX consistency, FTM and reduce costs - Manage content semi-independently for FTM - Optimise site for SEO & fast page loads - Hire digital experts and invest in training ↑ KEY RESOURCES & PARTNERS - Employees knowhow - Centralized & customer centric IT infrastructure - Cloud solutions and specialized agencies 73% of European marketers believe they need to reinvent themselves to succeed with digital marketing 73% Source: Adobe, 2014

28.   For desired effect digital take-up should be increased across whole customer lifecycle 3. KEY ACTIVITES, RESOURCES & PARTNERS Buy Start-Up Get Support Use & Pay Renew or LeaveExplore ⥁ IMPACT ON BUSINESS MODEL - Company should addopt to the digital first princip as online is most important touchpoint prior purchase - Enablig eSales as more customers want to buy online is also opportunity to lower channel costs - Digital can enable efficient on-boarding experince - Call volumes can be deflected with eHelp and eCare - eBill can be more convenient & up to 8x cheaper then paper bill - Online is efficient & convenient for contract renewals ↑ KEY ACTIVITES - Define Digital Strategy - Data Driven Decisioning & Optimisation - Validate user experience & remove choice noise to simplify design - Embrace responsive design - Digital styleguide to ensure UX consistency, FTM and reduce costs - Manage content semi-independently for FTM - Optimise site for SEO & fast page loads - Hire digital experts and invest in training ↑ KEY RESOURCES & PARTNERS - Employees knowhow - Centralized & customer centric IT infrastructure - Cloud solutions and specialized agencies By 2017 the CMO will spend more on IT than the CIO Source: Gartner, 2013

29.   For desired effect digital take-up should be increased across whole customer lifecycle 3. KEY ACTIVITES, RESOURCES & PARTNERS Buy Start-Up Get Support Use & Pay Renew or LeaveExplore ⥁ IMPACT ON BUSINESS MODEL - Company should addopt to the digital first princip as online is most important touchpoint prior purchase - Enablig eSales as more customers want to buy online is also opportunity to lower channel costs - Digital can enable efficient on-boarding experince - Call volumes can be deflected with eHelp and eCare - eBill can be more convenient & up to 8x cheaper then paper bill - Online is efficient & convenient for contract renewals ↑ KEY ACTIVITES - Define Digital Strategy - Data Driven Decisioning & Optimisation - Validate user experience & remove choice noise to simplify design - Embrace responsive design - Digital styleguide to ensure UX consistency, FTM and reduce costs - Manage content semi-independently for FTM - Optimise site for SEO & fast page loads - Hire digital experts and invest in training ↑ KEY RESOURCES & PARTNERS - Employees knowhow - Centralized & customer centric IT infrastructure - Cloud solutions and specialized agencies

30. Si.mobil Thank you

31. ROMI can be significantly improved with predictive models and personalised interaction 2. HOW CAN DIGITAL BENEFIT SI.MOBIL BUSINESS MODEL Automation   where possible ➡Personal Assistance ➡Key Accounts Residential pre &  post-paid Customers Business  Customers Simple & Carefree Communication Services Voice and Data Fees Other Revenues Marketing & Sales Channel Operations Network & IT Ops ➡Marketing & SalesChannel Costs Network Operations General and Administrative exp. HW Vendors Regulatory   Agencies Franchises Workforce &   Employees Knowhow Physical, IT &   Network Infrasturcture Shops & Call Center Internet Automation ➡Channel Costs ➡Channel Operations ➡Workforce   ︎Employees Knowhow Digital 24/7 & Wherever   Access to Services right offer to right person at right time

Impact of Digital on Telco Business Model, case of Si.mobil

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Impact of Digital on Telco Business Model, case of Si.mobil