The Customer-activated Telecom Provider (global C-suite study 2013)

IBM Institute for Business Value

The Customer-activated Telecom
Provider
Insights from the global C-suite Study 2013

The Customer-activated Telecom Provider
Insights from the global C-suite Study
© 2013 IBM Corporation


Agenda

1 Introducing the 2013 Global C-suite Study
2 How CxOs view the world
3 How the C-suite is preparing for the future
a. Open up to customer influence
b. Pioneer digital-physical innovation
c. Craft engaging customer experiences
4 Pulling together

2



The IBM global C-suite Study draws on a decade of research with
over 20,000 interviews

6,300
CEOs

3

7,000
CIOs

2,200
CMOs

600
CSCOs

4,500
CFOs

1,500
CHROs



This study covers 4,183 face-to-face conversations with CxO’s in
70 countries – 218 of them from the Telecommunications industry
Telecommunications distribution
North America

16

Western Europe
South America

47

Central and Eastern Europe

42

35
Japan

20

28
Middle East and Africa

30
Asia Pacific

Source: Question E–Participant Country; Telecommunications n=218
4



The IBV Telecom industry and CxO studies are a set of reports,
identifying the challenges of CxOs in the changing telecom industry

Telco2015

Advocacy

2011

2010

Cloud

2012

Social

Analytics/
Big data

2013

2013

Mobile

2013

GIE

Digital
2014

2013
5

Click on pictures to access the documents



In addition, our biennial Consumer Surveys – the most recent one
conducted in Fall 2013 – address related topics

Telecom Consumer survey Fall 2013 in 35 countries

6



The Consumer Surveys thus enable us to compare views from the
‘supply’ side and the ‘demand’ side

Customer Spending
priorities for 2013 –
2015

Customers’ Attitudes
towards CSPs

7

Customers’ Adoption of,
Experience with, CSP’s
products and services

Customer Advocacy
and Antagonism

Customer Sources of
Information for CSP’s
products/ services

Customer Trust
in CSPs



Much has changed since 2004: digitization has given customers far
more clout and transformed their expectations

2004

Focus on cost reduction
to deal with increasingly
global competition

8

2008

Business models evolve to
enable external partnerships
and collaboration

2014

The digitally active customer
moves to the top of the
C-suite agenda



Agenda

4 Pulling together

9



The Telecommunications perspective of the C-suite study draws on
input from six C-suite roles
C-suite composition Telecommunications sample

CSCO
6%
CMO
24%

CEO
23%

Role
distribution

CFO
7%
CHRO
7%

CIO
33%

CEO
23%

Source: Question E–Description current role; Telecommunications n=218
10



Telecommunications CxOs think technology will be the most
important external force shaping the future of their enterprise
External forces impacting the enterprise (3–5 Years)
2010

2012

2013

2013

Telco CEOs Telco CEOs Telco CxOs

All industries

1

1

1

Technology factors

1

2

2

2

Market factors

2

3

3

3

Regulatory concerns

3

4

4

4

Macro-economic factors

4

5

5

5

People skills

5

6

6

6

Socio-economic factors

6

7

7

7

Globalization

7

8

8

8

Environmental issues

8

9

9

9

Geopolitical factors

9

Source: Question E8–What are the most important external forces that will impact the enterprise over the next 3 to 5 years?; Global n=4,009; Telecommunications n=218;
2010/2012 Global CEO studies
11



Some technologies impacting telecommunications are now
mainstream

Technologies 1978

Computer

1988

First
successful
PC,
launched
Apple

First
compact,
standalone
PC

Talking
bricks

Mobile phone

Internet

12

1998

Rise of
Windows
OS and
Wintel
systems

Miniaturization
and cost
reduction

Slow
speeds,
textual
content

2008

Today

Growth of
direct to
consumer
sales

Multi-media
and internet
(email)
enabled

Affordable
computing
expands
access to
PCs globally

Netbooks and
continuing
miniaturization

Smartphone
enters
consumer
market

Broadband ,
multimedia
content

Smartphones
are enabling a
new range
of business
models

Always
connected,
across
devices

Ubiquitous
connectivity
makes content
accessible
everywhere



Other technologies such as social, mobile, analytics and cloud are at
the beginning of maturity, but already impacting telecommunications

Forces

Social media
explosion

2000

2005
Prevalence of
social networking

2010
Social apps harness
network effect for services

Miniaturization of
computing power

Mobile
revolution
Watson wins
Jeopardy

Power of
Analytics
Browser-based cloud
applications

Cloud
Enablement

13

Consumer cloud
services

Today’s/Future impact
• Decreasing revenue from
traditional communication
• Increasing Customer
influence/ power and
collaboration
• Increasing consumer demands
for immediacy and ubiquity
• Influencing all aspects of
business models and
operations
• Enhancing all aspects of
decision making and customer
experience
• Evolving new business models
and business ecosystems
• Increasing capabilities to
provide new services from the
cloud
• Evolving dramatically different
business models



Telecom CxOs foresee major changes in their offerings enforced by
major changes in the competitive landscape
Shifting ground: business landscape changes

5%

90%

Maintain current
offerings

Develop new offerings
21%

71%

Competitors from
same industry

Competitors from other/new
industries, including OTTs

Neutral

“Data monetization will be very important in the future as
telcos reinvent themselves, as competition in the Business
As Usual markets increases with Over The Top offerings.”
CIO, Telecommunications, Canada

Source: Question E9–How do you see the landscape changing over the next 3 to 5 years?; Telecommunications n=218
14



In addition, telecom CxOs also foresee major changes in engaging
and interacting with customers, and in partnerships
Shifting ground: business landscape changes

27%

55%

Operational
control

3a. Open up to
customer
influence

Organizational
openness

18%

68%

Partnering to
increase efficiency

Partnering to
increase value

27%

3b.Pioneer digitalphysical
integration

65%

Focus on customers
as segments

Focus on customers
as individuals

82%

12%
Face-to-face
interaction

Social/digital
interaction

16%

3c. Craft engaging
customer
experiences

75%

Smaller
partner base

Bigger partner
network

4. Pulling
together

Neutral

Source: Question E9–How do you see the landscape changing over the next 3 to 5 years?; Telecommunications n=218
15



Agenda

4 Pulling together

16



Close collaboration with customers is a clear ambition: nine out of ten
Telecom CxOs foresee doing so in the near future

Open up
to
customer
influence

17

2 January 2014

IBM Confidential



Half of the telecommunications companies in our sample have a
weak digital-physical strategy – or none at all

Pioneer
digitalphysical
innovation

18

2 January 2014

IBM Confidential



Recognizing the importance of customer experience management
and the required skills, Telecom CxOs are rebalancing their priorities

Craft
engaging
customer
experiences

19

2 January 2014

IBM Confidential



Agenda

4 Pulling together

20



Collaboration within the C-suite itself is also important – and CxOs
form an intricate web of relationships to drive performance

Pulling
together

21

2 January 2014

IBM Confidential



We invite you to continue the conversation

Connect with us

For more information about this study and
to get the full version of this report, see
www.ibm.com/csuitestudy

22

Access interactive content and listen to
CxOs in their own words by downloading
the IBM IBV app for Android or iOS



Key Contact

For more detailed
information on the C-suite
study, please contact:

Rob van den Dam
Global Telecom Industry Lead,
rob_vandendam@nl.ibm.com

23


The Customer-activated Telecom Provider (global C-suite study 2013)

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