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Flash Insight: Eight measures to succeed in the hypercompetitive eSIM era

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The “Digital Customer Journey” is the instrument of choice to understand customer’s expectations and design an eSIM value proposition.

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Flash Insight: Eight measures to succeed in the hypercompetitive eSIM era

  1. 1. 1 Flash Insight: Eight measures to succeed in the hypercompetitive eSIM era June 2016
  2. 2. 2 eSIM will put mobile network operators under pressure  Finalization of GSMA Specification in 2016 will catalyze the eSIM breakthrough.  eSIM will lower switching barriers and enable new competitors to enter the market.  Mobile network operators have to create differentiators in terms of added value on top of core products. IT2F512 -80JV MHVCf 04023 eSIM Impact and Necessary Measures Flash Insight Eight eSIM Measures | June 2016 The “Digital Customer Journey” is the key to succeed in competition  As telecommunication becomes an e-commerce product, customers need to be attracted digitally.  Customers need to be guided on their journey, instead of being followed.  Microsoft’s “Cellular Data” serves as an example for a convenient “pay-as-you-go” solution (PAYG). Eight measures need to be taken for MNO eSIM readiness  The eSIM impact on the telco environment‘s status quo has to be evaluated.  New value propositions have to be developed following the “Digital Customer Journey“.  Implementation processes have to be managed agilely including lean rapid prototyping. The “Digital Customer Journey” shows how to improve current value propositions for the eSIM era and serves as one important measure on the path to success. 1 2 3 4 5 6 7 8
  3. 3. 3  GSMA Specification to be finalized by Summer 2016  OEMS participate in order to build smaller devices and have already launched first products  SIM manufacturers and BSS/OSS providers drive eSIM based device management  MNOs shape the Specification to set the market rules further on Flashback: The eSIM will increase competition and force MNOs to differentiate further by offering added value on top of their core products. eSIM Breakthrough eSIM Introduction Fierce Competition MNOs Have to Add Value on Top MNO A MNO B New Entrants  Reduction of switching barriers  Ease of connectivity management  Increased price competition  Entering of digital global players and OEMs to the market  Improvement of customer experience on core products voice and data  Adding value on top of those as a new differentiator  e.g.: Assistance to handle the increasing number of personal connected devices Flash Insight Eight eSIM Measures | June 2016
  4. 4. 4 The “Digital Customer Journey” is the instrument of choice to understand customer’s expectations and design an eSIM value proposition. “Digital Customer Journey” Framework Opportunities for Differentiation at Every Touchpoint Flash Insight Eight eSIM Measures | June 2016 Bond How to satisfy the customers to trigger repurchases instead of reconsiderations Advocate How and when to offer online review possibilities Consider How to address customers’ needs and wishes ? Evaluate How to guide customers directly towards a transaction Buy How to process transactions in real-time Experience How to guarantee convenience in eSIM usability  Learn to treat customer journeys like a product that calls for optimization  Learn to create “Moments of Truth“ (=MoT) i.e. the crucial customer touchpoints  Compress the “Consider” step  Shorten or entirely eliminate the “Evaluate” step  Create a strong “Bond” moment for a new customer lock-in  Guide customers into a stable loyalty loop Goals of Approach ? Experience Evaluate Consider Buy Bond Advocate
  5. 5. 5 Microsoft shows with its “Cellular Data” service how the framework can be applied with success, by offering on-demand connectivity to customers. Best Practice Example Flash Insight Eight eSIM Measures | June 2016 ? Experience Evaluate Consider Buy Bond Advocate “Digital Customer Journey” Connectivity Submission to Customers  Inside the corresponding app customers may choose between various short-term PAYG data plans.  They get charged through their existing Microsoft account credentials.  Real-time processing allows instant transactions and connectivity. Real-time Transaction Processing First & Second Moment of Truth Zero Moment of Truth ?  Customers outside their usual Wi-Fi range search for connectivity.  Microsoft displays a notice for its cellular service on the Wi-Fi bar.  Buying a SIM card is not an option in that moment. Instead customers make use of the present on-demand offering and skip the “Evaluate” step.  Competing MNO offerings therefore remain unconsidered. Dell Latitude 12Surface 3 LTE “Cellular Data” addresses the framework’s implications! Let‘s take a closer look! Devices with Cellular Data Support
  6. 6. 6 MNOs have to take their own action and improve their competitiveness for the upcoming eSIM era step by step. Flash Insight Eight eSIM Measures | June 2016 Eight Measures to Succeed by applying a lean rapid prototyping mindset with regular adjustments based on customer feedback. 8 Speed up 1 Analyze the attractiveness of the current business model with regard to existing telco trends. the eSIM impact on each business model dimension and every stakeholder. 2 Examine old habits and highlight competitive advantages for eSIM era business models. 3 Rethink with customers to enhance the ideas and specify services and products, creating true added value. 6 Cooperate 4 Design eSIM value propositions following the “Digital Customer Journey” for all customer segments and offerings. the most promising ideas by financial evaluation and formulate a high-level way forward to the eSIM era. 5 Pick the systems for real- time eSIM transaction and connectivity processing to meet customer expectations. 7 Upgrade
  7. 7. 7  Several years of consulting experience in the implementation of eSIM processes for European MNOs  Experience in the development of concrete actions to strengthen value propositions for MNOs  Proven company track record in digital transformation and optimizing customer experience management Axel Meiling Associate Partner at Mücke, Sturm & Company Contact details: a.meiling@muecke-sturm.de +49 151 58243390 More about Mücke, Sturm & Company: www.muecke-sturm.de Mücke, Sturm & Company would like to get in touch with you to shape your strategy for the eSIM era. Headoffice Munich Theresienhöhe 12 80339 Munich T +49 89 461399 0 F +49 89 461399 777 Office Hamburg Brooktorkai 20 20457 Hamburg Flash Insight Eight eSIM Measures | June 2016
  8. 8. 8 Copyright and Sources This document is intended for personal use only. Distribution is only permitted without any changes or omissions – publication, in whole or in parts, requires prior written consent by MÜCKE, STURM & COMPANY and correct citation of sources. The herein published texts and graphics were used by MÜCKE, STURM & COMPANY in the context of a presentation; they themselves do not represent the presentation in its entirety. All mentioned company names, logos, brands, brand symbols and other copyrighted material are the sole properties of the respective company; they are only used for illustrative purposes. Copyright Slide #1 (Cover): Picture: Marlena König/T-Mobile Austria Slide #4: “Digital Customer Journey”: Harvard Business Review 11/15 Slide #5: “Digital Customer Journey”: Harvard Business Review 11/15 “Cellular Data” App Screenshots: Microsoft Sources Flash Insight Eight eSIM Measures | June 2016

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