Globe's Innovation Journey in the B2B Marketplace


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This is a presentation I gave in November 2013 during the first Digital Life Congress in Manila, Philippines.

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  • 36.5M subs at end of Q322.72B revenues in Q3
  • Talk about how we are investing for the future, with core revenues flattening and the Phils crossing over 100% mobile penetration. Broadband has a lot of room to grow though, but for how long? And at what price?2 years ago we started to dabble in Cloud, more so as a sideline rather than a primary initiative.
  • Joining the social matrix - Harnessing the ability to make any interaction or activity social—to influence actions, solve problems, and innovate, potentially creating new types of organizations that are not constrained by traditional boundariesThe Internet of all Things - Linking machinery, equipment, and other physical assets with networked sensors and actuators to capture data and manage performance, enabling machines to collaborate and even act on new information independentlyCompeting with “big data” and advanced analytics - Growing ability to collect, analyze, experiment with, and act on ever-larger and more complex data sets; harnessing real-time data flows (e.g., from the Internet of Things and the social matrix) for nuanced insights that improve decision making and resultsOffering anything as a service: CAPEX to OPEX - Sharing services accessed or arranged over the Internet, including use of infrastructure, products, and other assets as “services,” enabling new asset-light business modelsAutomating knowledge work - Using advances in artificial intelligence, deep learning, big data, and natural user interfaces to automate knowledge work tasksEngaging the next three billion digital citizens – Emerging opportunities as three billion people join the digital economy using the mobile Internet—driving financial inclusion, entrepreneurship, and the development of new business modelsCharting experiences where digital meets physical - Blending digital interactions with physical experiences such as shopping, often by providing data and information to mobile Internet devices‘Freeing’ your business model through Internet-inspired personalization & simplification - Rising consumer expectations for instant access to information, transparency, customization, low prices, and ease of use, based on the model of Internet services, now being applied offline as well Buying and selling as digital commerce leaps ahead: Peer-to-peer commerce - Low-cost, high-speed, seamless exchange of information enables new types of online markets, payment systems, and business models Transforming government, health care, and education: Slow IT adopters - Using the growing power and reach of IT to boost productivity in government, health care, and education—sectors that have not benefited fully from previous waves of IT—to improve service delivery and increase transparencyTesco Facial Recognition Ads – Big Data AnalyticsHeat Phone – Getting Cows to Text when they are ready to mate – M2MThere are diapers with wet sensors that alert parents sending a message to their mobile phones when the little one needs to be changed. – M2M
  • Cows can text about its fertility. Farmers will able to be informed about all their animal’s activity, including when the cow is on heat and ready for insemination thanks to Heat Phone.With Bluetooth Smart sensors in Nike shoes, you can learn a lot more about their workouts and athletic performances—information like vertical leap, quickness and how many times they jumped during a game or workout. Over 100 year old Talking Tree in Belgium, 4500+ followers alreadyThe old fashioned methods of hearing a baby cry or using the sense of smell to know if it did its business are over. There are diapers with wet sensors that alert parents sending a message to their mobile phones when the little one needs to be changed.
  • Alan Kay of Xerox Parc – DynabookApple Bashful PrototypeJeff Hawkins of Tandy – Gridpad (led PalmPilot)AT&T EO Communicator from GO CorpApple Newton - Introduction Date: August 3, 1993, Discontinued Date: March 4, 1994 (7 months)
  • Based from the study conducted through the IBM Institute for Business Value, in conjunction with the Economist Intelligence Unit. It included 572 business and technology executives across the world, in organizations ranging from large (greater than US$ 20 billion) to small (less than US$ 1 billion). Not all goes well – example, TouchPoint, World Domination ProjectSome do well – Cebu to the World
  • The main objectives of the “ICT Industry and Business Innovation for National Development” strategic thrust of the PDS are the following:Support micro, small and medium businesses in key industries to become more productive, innovative and globally competitive, thereby increasing exports, employment and wealth;Strengthen capacity in the high value ICT-related service sector;Increase ICT and ICT-enabled jobs, especially in the regions;Increase ICT innovations and their commercialization;Increase local original digital content and media (software, applications, online media, entertainment, etc.);Increase global recognition and visibility of the Philippines ICT sector and its companies to attract more business and investment; andExpand and improve ICT research and development, innovation and manufacturing.
  • Culture & Leadership:Globe CFC Program,approx savings generated 4.2B pesos savings/new revenues across 155 projects from 2009-12The Art of Business Casing – sometimes you don’t really need oneMoving to Google, enhancing collaborationTake Risks:Investing in New Business – KickstartFail fast, fail cheap, learn and iterate the development process, ensure the market study happens early and is completeWe’ve made innovation pilots/trials cheapCapture Ideas:Joint Innovation Labs with Key PartnersUpcoming Globe CityCapacity & Capability:iLead ProgramMoving to the new building
  • On a standalone basis, Globe Business can make it as part of the Top 100 companies in the Philippines.
  • Over 75% of ITES are technical people in our Professional Services organization!
  • ASEAN’s ICT industry is growing fast, employing 11.7 million people and contributing US$32 billion, or 3%, to the bloc’s gross domestic product. Knowledge Economy will fuel Asia’s futureThe cloud is the next great ‘leveler’ – SME’s well positionedLower IT install base compared to other parts of the worldLarge numbers of small/medium sized business with low IT skillHigher numbers of mobile devices; good (3G/LTE) connectivityDeveloping economies can leapfrog the developed
  • Agility to Adapt to Changing Customer Demands and Business Landscape -Need for business innovationNeed to remain relevant and competitiveDemands for better user experience No Access to Relevant and Real-time information -Lack of employee empowermentNo productivity analysisMarket agility and flexibilityNo business analyticsInefficiencies of Manual Processing -Non-standard processesInefficient ecosystem interactionLack of risk managementCost to Build and Maintain IT Solutions and Capabilities -Cost reductionFragmented solutionsHuge upfront investmentsOff-the-shelf is no longer acceptableSpending controlTechnology obsolescenceLack of IT expertiseSeasonal requirementsLack of Mobility -
  • Globe's Innovation Journey in the B2B Marketplace

    1. 1. Globe's Innovation Journey in the B2B Marketplace Cocoy J. Claravall Vice President ITES Products & Services
    2. 2. Agenda • The Telco Business Today • The Big Picture – A Look at Technological, Social, and Political Forces • Why Innovation is Important • Globe’s Innovation Journey in B2B
    3. 3. 67.3B in revenues by end of Q3, but … 2011 – 2016 Nominal CAGR percent The telecom services business is big and stable, there is still an opportunity to expand albeit with slowing revenue growth … … mirroring global trends due to commoditization (declining ARPU, etc.) and intense competition. Projected Business per Industry, YoY Thus we need to move beyond the core in order to maintain our momentum while investing for the future.
    4. 4. Where Else Can We Grow? What do we do, and when do we start?
    5. 5. Advances in technology will change society, the economy, and the workplace in coming years. TECHNOLOGICAL information and communications, innovation, trends, etc.  These Top 10 IT-enabled trends can extend the powers of managers, workers, and entrepreneurs, opening up new avenues to growth, and may also disrupt longstanding commercial, social, and political relationships and alter the dynamics of entire industry sectors 1. The Social Matrix (crowdsourcing, collaboration) 2. The Internet of All Things (M2M, self-service) 3. Big Data, Advanced Analytics (customization) 4. Realizing Anything As A Service (XaaS) 5. Automation of Knowledge Work (business apps) 6. Integrated Digital/Physical Experiences (e-POS) 7. Me + Free + Ease (personalized, easy to use, low cost) 8. The e-Volution of Commerce (peer-to-peer market) 9. The Next Three Billion Digital Citizens (glo-cal) 10. Transformation of Government, Healthcare, and Education (e-services) SOURCE: Ten IT-enabled business trends for the decade ahead / McKinsey Global Institute – May 2013
    6. 6. What do cows, shoes, trees, and diapers have in common? Living, and Non-Living
    7. 7. In 2011, IBM made history … Watson’s ability to answer questions make it ideal for doctors to improve patient care.
    8. 8. Do you remember these products? 1968 1993 1983 1994 1989
    9. 9. Buying behavior and receptivity for IT-enabled services differs by customer segment, key is to find the sweet spots. ENABLEMENT FRAMEWORK SOCIAL demographics, consumer behaviors, brand, buying trends, etc. DISRUPTORS VALUE CHAIN create radically different value propositions, generate new customer needs and segments and even new industry eco-systems INNOVATORS significantly extend CVPs resulting in new revenue streams and transform their role within their industry or enter a different industry ecosystem OPTIMIZERS Incrementally enhance their customer value propositions while improving their organization’s efficiency CUSTOMER VALUE PROPOSITION SOURCE: IBM Institute for Business Value Analysis 2012 Business companies should determine how and to what degree IT-enabled services can be used to enable their business model.
    10. 10. The Philippines has the opportunity to play an enormous role in ICT. POLITICAL government legislation, term and change, funding, initiatives, etc.  The Philippine Digital Strategy (PDS) for 2011 to 2016 covers four major areas, namely: ICT Infrastructure, Cyber Services, Human Capital Development, and e-Governance. Transparent Government & Efficient Services ICT Industry and Business Innovation Investing in People: Digital Literacy for All Internet Opportunity for All Peoples Transformation 2.0: A Digitally Empowered Nation – The Philippine Digital Strategy 2011-2016  PPP implementation crucial to investment-driven growth - estimate a ‘blue sky’ macro scenario in which per capita GDP could improve to $5K from ~$3K currently SOURCE: Philippine Digital Strategy 2011 - 2016
    11. 11. So what really fosters INNOVATION? 61% of CEOs worldwide say that innovation is a priority or a primary focus within their businesses. - PricewaterhouseCoopers SOURCE: Accenture, Bain, Deloitte, Forrester, PriceWaterhouseCoopers
    12. 12. Innovation efforts are sluggish and ineffective. 1. Resource Constraints (Time and People) 2. Budget Constraints “Top 3 Challenges to Business Innovation” SOURCE: Accenture, Bain, Deloitte, Forrester, PriceWaterhouseCoopersForrester 3. Lack of Structured Innovation Process
    13. 13. What are the right ingredients for innovation? 31 % 5. Capacity and Capability for Creativity 31 % 57 % 44 % 4. Ability to capture ideas throughout the organization 1. Right culture to foster and support innovation 2. Strong Visionary Business Leadership “Innovation must be part of a holistic and formal system to net positive returns over time.” - Accenture 37 % 3. Willingness to challenge norms and take risks SOURCE: Accenture, Bain, Deloitte, Forrester, PriceWaterhouseCoopers - PricewaterhouseCoopers JOV-0495-2DC-4N
    14. 14. Who “was” Globe Business? BCFU as of May 14, 2013 Market Situation State of the Business New competitors (OTT players) 800+ employees All services under one roof New opportunities (devices, social media, big data) Slowdown of traditional sources of revenue Predictable Revenue Little IT focus
    15. 15. A New Globe Business 130 ITES Mandate Focus on IT-related products & services Develop new offerings or partner with world-class technology providers Be the preferred IT partner for cloud services IT Enabled Services Group SMB Group Enterprise Group
    16. 16. We are a dedicated group of committed individuals whose mission is … To enrich lives through enabling solutions that accelerate the performance of business ecosystems using best in class IT capabilities, platforms and services.
    17. 17. Mindset Change: OLD versus the NEW Model
    18. 18. Key is to determine the customer’s level of maturity and readiness to buying IT services. Business Application Services Cloud Services is the Next Great Leveler, for companies big and small ... Data Center Collocation Services INNOVATING Managed Application Performance Managed Desktop and Client Managed Security Services Managed Storage / Server Web Hosting / IDC Services Managed Connectivity Data Center Services World-class facilities, certified people, and processes OPTIMIZING Level of Professional Services we can offer End-to-end Business Application Services Hosted Applications Shared Hosted Platforms Shared Dedicated Managed Platforms Enterprise Public IaaS Dedicated Private Cloud Dedicated Managed Applications Hosted Application Performance DISRUPTING Platforms include Databases, Web Servers, Load Balancers and Firewalls. While most customers will potentially buy all services Financial Institutions are NOT a target market for anything that is Public or Shared for their Core Applications.
    19. 19. Cloud Adoption – The Opportunity Percentage of enterprise application that will be on cloud in 2014* 34% 24% 56% “Large Latin American and Asia Pacific companies are the most aggressive adopters of cloud computing – while their European and US counterparts remain conservative about shifting apps to the cloud” - TCS 50% 19
    20. 20. 20
    21. 21. Our FOCUS : Business Process Pain Points       Need for Business Innovation  Need to Remain Relevant and Competitive  Customer Demands for Better Customer Service and Experience Lack of Business Analytics No Productivity Analysis Lack of Employee Empowerment Poor Monitoring of Resources Need for Internal and External Market Insighting Lack of Mobility Cost to build & maintain IT Solutions & Capabilities No Access to Relevant and Real-time Information Inefficiencies of Manual Processing Agility to adapt to changing customer demands  No Access to Needed Information  No Access to Business Systems  Need to Go Back to Office for Desk Work  A Lot of Down Time  Time Consuming  Prone to Human Error  Non-Standard Processes  Slow Turn-Around and Interaction Among Process Owners  Poor Tracking, Monitoring and Filing of Paper Documents SOURCE: OrangeScape Business Application Landscape, Customer Interviews  Need for Cost Reductions and Spending Control  Fragmented Solutions  Huge Upfront Investments  Off-the-Shelf Solutions are No Longer Acceptable  Technology Obsolescence  Lack of IT Expertise  Seasonal Requirements
    22. 22. Examples of Real Customers Today GLOBAL PORT & TERMINAL OPERATOR INTERNATIONAL AIRLINE • Current DIY Exchange email system is getting bigger due to increasing number of ports • Need to upgrade to new version • They wanted it managed so that they can focus on their core competency • Managed Email with Computing Resources • Customer Relationship Management is very important to their industry • Current system is fragmented and requires multiple IT Resources • Managed CRM with Computing Resources
    23. 23. In this business, Partners are central to our success, thus we continue to harness our relationships, and build new ones. GLOBAL LOCAL / REGIONAL
    24. 24. The GOAL: Provide end-to-end IT enabled business solutions that will allow us to create tremendous value to the ecosystem. END USERS BUSINESSES BUSINESS CUSTOMERS GOVERNMENT FAMILIES
    26. 26. The Philippine healthcare system is an interplay of 8 groups: 1 Government Doctors and Medical 7 Practitioners 2 HMOs & Insurers 8 Patients Hospitals, Diagnostic Clinics & Labs 6 Pharmacies 3 5 4 Pharma Employers
    27. 27. Issues and challenges of the healthcare industry Patient Records Piling Up Paperworks Pain in Data Retrieval Medical Errors Growing Cost Long Waiting Time Public and Private Sector Paper and Pen Method Privacy and Security
    28. 28. An Opportunity Exists to Improve the Healthcare Ecosystem Patients