Conversational commerce using artificial intelligence and chatbots will transform the messaging industry. By 2020, 80% of enterprise software will have AI and chatbots built-in, allowing companies to have conversational interactions with customers. As businesses increasingly use AI to engage customers through messaging, consumer behavior will change and people will more readily use enterprise messaging. To adapt, companies must embrace new technologies and opportunities, not focus only on incremental improvements. Those who develop AI capabilities like chatbots will be positioned for success, just as companies like NCR have adapted over 130 years to technological changes.

1. 1
Conversational Commerce, AI &
Chatbots will transform the
messaging industry
Paul R Ruppert
Mobile Strategy MWC 2017

2. How long did a message take in the
past?
2
1492 199219731900

3. Technology drives distance and
convenience
• 10 months for Columbus to make a to make a western shore
landing, then return to tell Queen Isabella that he’d missed India
but found the New World.
• 10 Days 150 years ago for the Pony Express to cover 2,000 miles
to deliver a 1 way note
• 40 minutes 140 years ago a technology leap occurred – a
PLATFORM transformation—when a telegraph could send a
message from London to New Delhi, a distance of 4,000 miles.
• Instantly, 100 years ago, but it was voice only via home telephones
• Text arrives only Twenty-five years ago
3

4. 4
Today
5.8 Billion
Enterprise Messages
23 Billion
Personal Texts
Today, 23 B
personal texts and
5.8 B enterprise
messages are sent
every day.
Daily

5. 5
8.9M enterprise
messages have
been sent since
I started
speaking to
you.

6. 6
2017 2020
17.2M
In Just a Few Years…
+53%

7. 7
Another Platform Transformation is coming….

8. 8
2016 2020
1.6 Trillion
Messages
$17.2B
$58.7B
3.4 Trillion
Messages
$ CAGR
+36%

9. 9
By 2020, on average,
every mobile subscription
in the world will be
receiving 1 A2P message
per day.

10. Under Utilization
38% 43%
62% 57%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2017 2020
Enterprise utilization of SMS
Based on consumer
enterprise SMS
tolerance levels,
businesses are
typically under-
utilising the SMS
channel
10
Utilized Under Utilized

11. 11
Transport.
Report.
Repeat
Artificial
Intelligence” in
the form of
“conversational
commerce,” or
“Chatbots” is
coming fast.

12. Hey Paul.
You’ve been talking for
7.5 minutes. Would you
like me to order your
usual?
12
Got it. I’ll call the
concierge and have them
bring up your Earl Grey
Tea right away.
Thanks, that would be great.

13. Chatbots in Use
13

14. 14
2020
Apps
with AI
Apps
without AI
2018
Apps
without AI
Apps
with AI
At least 50% of the
newest versions of
enterprise software
products will have some
Conversational AI
Platforms, or (CAPs)--
based capabilities and
chat bots baked in.
By 2020 80% of ALL
enterprise software will
have AI & Chat bots built
into it.

15. 15
Today
More than half
of US mobile
users between
the ages of 18
and 55 have
used chat
bots.
If our enterprise business
customers provide
conversational rich services
across their platforms, then
our mobile consumer’s
behavior will no doubt
change as a result of chat
bots becoming more familiar
to them.
As consumers embrace
enterprise driven messaging
and adapt to this new
platform, much like the shift
apps and OTT transformed
usage behavior, they will
accept and accelerate their
access to enterprise
messaging even more.
This software will span
business process
management, enterprise
resource planning, and most
significantly for the
messaging industry,
customer relationship
management.
These CAPs will host a
broad range of solutions that
are lower cost, lower risk,
faster to deploy and easier to
manage in addressing
enterprise IT needs..

16. 8 Trillion Messages Since 2006
AI Based Machine Learning in 2015
Chatbots in Pipeline
16

17. 17

18. An Enterprise Software company with a Back
to the Future Approach to Enterprise
Messaging
18
As enterprises frame messaging more and more by using AI, I want to leave you with a
powerful example of a company that has endured and thrived by embracing and engaging platform
changes at every moment in their history.
It is not a mobile company, but it is a global tech company that makes your life easier.
In my view, enterprises who follow it and act like it, will frame how the enterprise messaging
ecosystem—and our business – adapts to enterprise applied AI.
National Cash Register – now known as NCR – was founded in 1884.
This company that was created the same year as the Orient Express started running,
has not wrung its hands over the minutiae of technological advancements.
Instead they followed new technologies and new business opportunities even if
those advancements were inconsistent with their original heritage.

19. 19
1.5B Transactions per Day
Using AI and Chatbots to Message Customers
New Tech = New Business Opps

20. 20
This is known as
good business sense.
SO THEN--What’s the moral of this afternoon’s story?
If your enterprise messaging strategy is to offer the same value
proposition as you have offered over the last fifteen years, what I called
“transport, report, repeat”—it is time for you to start making the right
changes at the right time.
If your biggests concerns are tweaking your present performance
engine—what routes you can manage, create different reports, thinking
the pie is fixed, and chasing all the dated aspects of the business--you
might end up like this

21. July 20, 2007
$230.52
July 13, 2012
$7.25
21
Be nimble.
Be quick.
Develop your own
AI capabilities
like RealNetworks
and NCR, or
choose to partner
with the likes of
IBM Watson or
Salesforce or
others entering
the market.

22. 22
Paul Ruppert
Strategy Consultant | RealNetworks
pruppert@realnetworks.com
+1 301 728 7818
@paulrruppert