Jason Juma-Ross, National Leader: Digital Intelligence, PWC presented "Plugging in to bandwidth: How businesses can harness the power of the NBN" at Connected Australia 2013. This conference is designed to help organisiations harness the opportunities that super-fast broadband will create, and explores the future impact of the NBN through the healthcare, education and consumer industries. For more information, please visit the conference website: http://www.connectedaustralia.com.au/2013

1. Plugging into bandwidth
How businesses can harness
the power of the NBN
Jason Juma-Ross
National Leader
PwC Digital Intelligence
@ideasoc

2. PwC
Source: http://www.nbnco.com.au/get-an-nbn-connection/wholesale-speeds.html
2
512/128 kbps
25/10 mbps
50/20 mbps
100/40 mbps
12/1 mbps
25/5 mbps

3. PwC
Off the charts or ‘normal’ growth?
0
1
2
3
4
5
6
7
8
9
10
1960 1970 1980 1990 2000 2010 2020 2030
DomesticBandwidthAvailability(Log)
Source: PwC analysis
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100 mbps
100 gbps

4. PwC
Wireless
Operators
Media
Impact on business varies by industry sector
4
Full
Service
Telcos
Financial
Services
Consume
Tech.
Health &
Public
Retail &
Consumer
Resources
& Energy
Core Business Model
Risk & Opportunity
Digital Operations
Risk & Opportunity

5. PwC
5Opportunities presented by increased digitization
1. Market & geographical expansion
2. More efficient sales & service
3. New sources of talent
4. Better, more competitive processes
5. Faster innovation
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6. PwC
Erosion of market & geographical barriers to
entry, improving access to alternates
• Access to new markets (e.g.
extension into customer journey
on basis of virtual supply chain)
• Access to new geographies (e.g.
previously uneconomic to sell to
or serve through traditional
distribution channels)
6
K1
Geography
Product/Market
K2

8. PwC
Carrying capacity ultimately limits market
growth causing shake out
8
dN
dt
= N
K-N
K
t
CarryingCapacity(K)
K1
K2

9. PwC
This process happens faster in digital markets,
which move quickly to ‘winner take all’ dynamics
32%
19%
12%
7%
30%
Share (%)
‘Traditional’ stable market structure
Others
Nichers
Challenger
Follower
Leader
Source: Strategic Planning Institute Profit Impact of Market Strategy (PIMS) database
http://www.fool.com.au/2013/05/21/google-stock-buy-it-and-hold-it-for-life/
http://blog.bazaarvoice.com/2008/11/14/how-to-stop-losing-market-share-to-amazon/
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10. PwC
Market fragments into niches as feature
displacement drives differentiation
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11. PwC
Digital channels reduce overall cost to serve
allowing asset re-investment
Observations from ‘real life’
• 50% reduction in time to resolution
• 30% reduction in call volume
• 60% reduction in abandonment
• 70% of answers from community
• 50% reduction in call center staff
• Content creation costs reduced by $
+1M
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Redistribution Opportunity
CostPer‘Answer’
$5
$3 $2

12. PwC
Efficiencies in talent acquisition & retention
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100,000 data
scientists solving
commercial and
public sector
problems

13. PwC
Process efficiencies can feed back into high cost
business functions, like marketing
13

14. PwC
Process optimization through collaboration
http://www.societyone.com.au/how-does-it-work
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15. PwC 15
http://www.wired.com/design/2013/05/threadless-disney-t-shirts/
Sponsored design competitions for Thor,
Monsters U, Iron Man, Muppets…
Faster innovation cycle time: Threadless

16. PwC
Warning: the days of taking a BAU approach to
digital are well and truly over
Now Digital BAU Growth
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Physical
Only
Multi-
Channel
Online
Only
$100
Customer Value
$175
$45
Physical
Only
Multi-
Channel
Online
Only
Churn
Loss in store
& branch
sales
Growth
Channel
growth in
line with
market
Physical
Only
Multi-
Channel
Online
Only
Same #
customers,
lower value
Growth
Aggressive
online
growth
Growth
Digital-
driven store
sales

17. PwC
Develop organizational structure from siloed to
integrated
17
Strategy Production Distribution
Sales &
Marketing
Digital
Digital
Strategy Production Distribution Sales & Mrkt Advocacy

18. PwC
5Characteristics of digital organizations
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Strip out time & cost
from innovation
Data is the lifeblood
Create networks
not hierarchies
Experiment to reduce
uncertainty
Digital is not an appendage

19. PwC
Thank you!
Jason Juma-Ross
National Leader, Digital Intelligence
@ideasoc
jason.juma-ross@au.pwc.com
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