3. “Mastering a fast feedback loop
will be a key differentiator.
Companies that quickly deliver
digitally instrumented products or
services, harvest data from
market interactions, and use
insights to rapidly iterate and
optimize their value chain will gain
competitive advantage that
continuously builds on itself.”
3
4. “Mastering a fast feedback loop
will be a key differentiator.
Companies that quickly deliver
digitally instrumented products or
services, harvest data from
market interactions, and use
insights to rapidly iterate and
optimize their value chain will gain
competitive advantage that
continuously builds on itself.”
4
How relevant is this to your
company’s competitive position
over then next five years?
5 extremely
…
1 not at all
5. “Mastering a fast feedback loop
will be a key differentiator.
Companies that quickly deliver
digitally instrumented products or
services, harvest data from
market interactions, and use
insights to rapidly iterate and
optimize their value chain will gain
competitive advantage that
continuously builds on itself.”
5
50
40
0 25 50
1 (not at all)
2
3
4
5 (extremely)
6.
7. How to Succeed in the New Market
Context
Martha Bennett, Principal Analyst
London
March 24th, 2015
25. Better Together:
Great experiences that combine digital and physical
Craig Smith - REPL Group!
Ben Salama - Accenture!
Mark Rattley - SAP !
Nick Katsivelos - Apigee!
31. About Me
• I’m REPL’s Digital Director. I joined in October.
• Famous for putting digital in store at M&S.
• Programme Manager on £180m M&S.com multichannel re-platform.
• I run retail-innovation.com. 450 visits per day.
• Regular speaker.
35. The digital landscape at M&S at the start of 2010
• We had one digital channel – the
desktop site
• Amazon were running M&S.com.
• We were seeing unprecedented
growth in mobile and we wanted to
start investing in showcasing the
best of M&S in store.
• It was hard to build differentiated
experiences for our customers.
56. We're all software companies now:
Make digital part of your organization's DNA
Paul Clark - ITV !
Alberto Prado - Philips !
Nick Katsivelos - Apigee!
57. Digital Organization DNA
• Out of your comfort zone
Transformation is strange
• Platforms are not Projects
It is more than mindset
• People are Fundamental
Finding the T-Shaped, Unicorn LAWYERS
• Money Matters
To run like a startup, you need to get funded like a startup
• Appropriate Measurements
The traditional metrics don’t apply
57
59. We’re all CDOs now: Becoming the digital
leaders every organization needs
Sienne Veit, John Lewis!
Tom Pikethly, John Lewis!
Bryan Kirschner, Apigee!
!
61. 61
Measures of business performance
1 Bringing new products & services to market
2 Customer or partner satisfaction
3 Market share
4 Revenue
5 Margin
Digital capabilities
1
Operating APIs to make systems and data available
for self-service access or mash-ups
2
Deploying apps such as mobile or tablet applications
to employees, customers, or partners
3
Using ‘big data’ and analytics to enhance internal
processes, existing products/services, or new offers
62. 62
Bringing New Products
& Services to Market
Market Share
Gross Revenue
Customer or partner
satisfaction
Margin
Leaders
Top 50% using
Apps, APIs, data
analytics
Laggards
Bottom 50% using
Apps, APIs, data
analytics
0 25 50 75 100
Leaders 1.5X more likely to report outperforming others in their sector
63. 63
Bringing New Products
& Services to Market
Market Share
Gross Revenue
Customer or partner
satisfaction
Margin
Leaders
Top 50% using
Apps, APIs, data
analytics
Laggards
Bottom 50% using
Apps, APIs, data
analytics
Leaders almost 2.5X more likely to report strongly outperforming others in their sector
0 25 50
66. 66
Leaders
Top 50% using
Apps, APIs, data
analytics
Laggards
Bottom 50% using
Apps, APIs, data
analytics
Companies with
strong Marketing & IT
alignment are 7.5X
more likely to be Digital
Leaders
Companies behind
their competitors on
digital are twice as
likely to say “the way
Marketing & IT typically
work together” is
a liability
70. Mastering Bits, Platforms & Ecosystems
Dr. Annabelle Gawer, Imperial College London!
Daniel Staub, Swisscom!
Chris Laws, Dun & Bradstreet!
Bryan Kirschner, Apigee!
!
72. “The dynamics that drive winner
take-all results in the technology
sector will come into play in many
industries. Turning products into
platforms that sustain an
ecosystem of developers or
partners will become a way to
seize a dominant market position
and a disproportionate share of a
sector's profit.”
72
73. “The dynamics that drive winner
take-all results in the technology
sector will come into play in many
industries. Turning products into
platforms that sustain an
ecosystem of developers or
partners will become a way to
seize a dominant market position
and a disproportionate share of a
sector's profit.”
73
How relevant is this to your
company’s competitive position
over then next five years?
5 extremely
…
1 not at all
74. “The dynamics that drive winner
take-all results in the technology
sector will come into play in many
industries. Turning products into
platforms that sustain an
ecosystem of developers or
partners will become a way to
seize a dominant market position
and a disproportionate share of a
sector's profit.”
74
44
31
0 25 50
1 (not at all)
2
3
4
5 (extremely)
77. I love APIs Europe
Daniel Staub - MD Swisscom Wholesale
25th March, 2015
78. Swisscom is the market leader in Switzerland
Everything
always on
Internet-
based
Global
competition
Building the best infrastructure
Fast, secure network access,
available everywhere at all times
Offering the best experiences
Innovative, inspiring services
with professional support for
our customers
Realising the best growth opportunities
Innovation and sustainable
growth in the core business
and associated fields
trusted,
simple,
inspiring
> Integrated operator
> Revenue – USD12 B
> EBITDA – USD 4 B
> Market Share – 65%
> 6.5 million mobile
customers
> 1 million 4G customers
> 2 million broadband customers
> 1.3 million TV customers
3/25/2015DanielStaub-MDSwisscomWholesale
78
Strategy
79. Swisscom Wholesale 2.0Swisscom Wholesale 1.0
– Traditional Wholesale – Focus on lean operations to
optimize CM
New revenue streams creating value for SC:
– API based enablement business – External exposure
of SC assets for wholesale (incl. OTT) customers
Challenges
> -90% Voice Interconnection
> -55% Inbound Roaming
> -40% Access
79
Swisscom’s transformation story
Traditional Wholesale business has been declining over 10% YoY
API based services drive transformation providing new revenue streams with exponential growth
potential
-5%
-9%
393
566
886 Roaming
Access
MVNO
Infrastructure
Voice Interconnection
Data
OTT
Wholesale revenues, MCHF Wholesale, MCHF
2
1
570
-9%
0%
566
886
Add. Potential - Upper
Add. Potential - Lower
800
…
'09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 ‘30
3/25/2015DanielStaub-MDSwisscomWholesale
Old revenue streams are disappearing at a staggering pace
80. DanielStaub-MDSwisscomWholesale
80
3/25/2015
APIs give us the flexibility to implement Internet business models
on Telco assets
Scalable
Open
Agile
Profitable
Impact of API Effect
• Easily adapt to market trends
• Launch new releases quickly
• Self service set-up and usage
• Adherence to global best practices
• Platform usable for partners of all sizes
• Set up and use / no integration project
• Minimal entry barriers (cost, skills)
• High exit barriers
In sync with market
trends
“Easy to do business
with”
Drive
innovation
Low entry risk
Goals
Our Vision: Become a platform beyond access
Position Swisscom within the growing ecosystem of digital business
81. DanielStaub-MDSwisscomWholesale
81
3/25/2015
API Portfolio
Carrier Billing & Identity are the leading use cases; Meaningful engagement with big internet partners
has already been established on both topics
• Carrier billing for frictionless
payments
Payment TargetingIdentity
• Telco identity for account
creation and fraud prevention
• Telco «big data» for targeted
advertising
Service
Description
Customers*
Opportunity
Timelines
• C10m USD
• 100% growth y/y
• C5m USD
• 200% growth y/y
• C15m USD
• 70% growth y/y
• Live since 2012 • Launch in 6 months • Potential launch in 2016
*examples
• Content platforms like
Google, apple
• Online merchants like
Amazon, Zalando, …
• Advertisers like Goldbach,
Appnexus
82. Lessons learnt from API transformation
Be disruptive, take calculated risks and reap tremendous rewards!
• Grow a user base
• Execute fast
• Decouple legacy from future
• Fail cheap and early
• Combine right skill sets
3/25/2015DanielStaub-MDSwisscomWholesale
82
83. 83I love new business models enabled by APIs
3/25/2015DanielStaub-MDSwisscomWholesale
87. If IT is from Mars and Marketers are from Venus, are
Developers from Alpha Centauri?
Stuart Hughes - Laterooms!
Jon Billings - BBC!
Sienne Veit - John Lewis!
Nick Katsivelos - Apigee!