Accenture Consumerization New World Business Opportunity Telcos
Post on 04-Apr-2018
214 Views
Preview:
Transcript
7/30/2019 Accenture Consumerization New World Business Opportunity Telcos
http://slidepdf.com/reader/full/accenture-consumerization-new-world-business-opportunity-telcos 1/12
Consumerization andthe New World o
Business Opportunityor TelcosBy Montgomery Hongand Christopher Hinitt
7/30/2019 Accenture Consumerization New World Business Opportunity Telcos
http://slidepdf.com/reader/full/accenture-consumerization-new-world-business-opportunity-telcos 2/12
Summary
Consumerization as an
Opportunity or Telcos
In order to leverage this unique
combination o capabilities,
however, telcos need to reclaim
their heritage o innovation. It’s a
heritage that has recently eluded
them, as over the past ve yearsthey have requently become
mere passive observers o the
cataclysmic changes in the digital
ecosystem. And they ace the
added challenge o needing to
innovate in areas that are outside
their historical core competency
o network-driven services.
By reasserting their heritage o
leveraging technology or customer
benet, however, telcos can
address a uller range o customers’
current digital needs. They can do
this by oering what we may call“consumerization as a service,” a
subset o sotware-as-a-service
coupled with other managed
services, that gives telcos a more
central role in enabling employers
to cope with the consumerization
phenomenon. In addition to
oering employers enhanced
workorce agility, telcos can also
expand their business-to-businessoerings in the realm o consumer
targeting and payment services,
which will provide added value
or many businesses, and deliver
an expanded range o direct-
to-consumer services, such as
enhanced mobility services and
social collaboration experiences.
In general terms, by utilizing
consumers’ “digital ootprints” to
target specic sales and service
opportunities to their exact needs,
telcos have the opportunity to
provide customers with richer
services; deliver enhanced
convenience; and reclaim a
more central role in the new,consumerized digital ecosystem.
Telcos, along with other types o communications service providers, need to develop
a new value proposition; and the phenomenon o consumerization oers them a
signicant opportunity to do this. We can dene this term, “consumerization,” as
the broad trend that is irreversibly taking hold as consumers and businesses engage
with the new world o ubiquitous consumer electronics devices, and the content-
rich digital services—video, social content, calendar, convenience applications, andothers—that are accessible through those devices.
In sum, these devices and services are now changing the way customers liveand work; and the ubiquity o consumer digital devices—both at work and inconsumers’ personal lives—oers telcos a new opportunity to take advantageo their unique command o customer channels. This natural sphere o infuenceincludes telcos’ unique ability to access, track and bill or customer needs—
both digital and spatial/locational (i.e., mobility-related)—using their mobileheritage as a “channel” to access customers.
7/30/2019 Accenture Consumerization New World Business Opportunity Telcos
http://slidepdf.com/reader/full/accenture-consumerization-new-world-business-opportunity-telcos 3/12
Consumerization and the New World o Business Opportunity or Telcos 1
7/30/2019 Accenture Consumerization New World Business Opportunity Telcos
http://slidepdf.com/reader/full/accenture-consumerization-new-world-business-opportunity-telcos 4/12
It almost goes without saying that
consumers and businesses have changing
needs in relation to the rapidly expanding
world o consumer electronics devices
and the content-rich digital services
(video, social content, etc.) that are
now accessible through those devices.
Consumerization is rapidly changing
how people live and work, as consumers
are becoming increasingly reliant on
consumer technology or both work and
non-work purposes. And this convergence
o work lie and personal lie is creating
potential issues or their employers.
A report by Forrester Research, Inc.
(December 2011) ound that 48 percent
o inormation workers buy smartphones
or work without considering what their
IT department supports.1 This is a prime
example o the BYOD (bring your own
device) phenomenon, which has posed
signicant challenges or corporate data
security. So has the related trend toward
BYOA (bring your own application). In
act, a recent survey2 by Accenture
showed:
• One in our employees worldwide
(23 percent) regularly uses personal
consumer devices and applications or
job-related activities.
• Over a quarter o employees
(27 percent) routinely use non-
corporate applications downloaded
rom the Internet in the workplace,as they search or applications that
help them work better.
• A large proportion o employees
(43 percent) eel comortable and
capable o making their own
technology decisions or work.
In addition, a November 2011 global
survey conducted by consulting rm
Avanade ound that 88 percent o
executives report that employeesare using their personal computing
technologies or business purposes.3
Employers, ater an initial period o
conusion, are now responding with
increasing fexibility and are working to
accommodate this trend more proactively.
For example:
• Apple’s CFO noted as early as January
2011 that more than 80 percent o the
Fortune 100 were already deploying or
piloting iPad.4
• The global survey rom Avanade also
ound that 73 percent o C-level
executives report that the growing use
o employee-owned technology is a top
priority in their organization.5
• That same survey reported that
60 percent o companies say they
are now adapting their IT inrastructure
to accommodate employees’ personal
electronics devices.
6
It’s clear that businesses need to be able
to provide access to applications and
services on whichever electronics device
or devices their employees need. It’s also
clear that consumerization will be a key
actor in workorce enablement and (or
many companies) revenue generation.
Finally, it’s evident that consumers and
businesses alike are increasingly open to
using a wide array o applications and
services that will deliver on the promiseo consumerization by adding a new
dimension o convenience and ease o
access to content.
Background: Not a Mere Trend,But a Sea Change
1 © Copyright Forrester Research, Inc. “Consumerization Drives Smartphone Prolieration:Employees’ Choices And Dollars Dictate The Rise O Android And Apple Devices,” December 2, 2011.
2 Rising Use of Consumer Technology in the Workplace Forcing IT Departments to Respond, Accenture
Research Finds , Accenture news release, December 12, 2011. Also see “The Genie is Out o the Bottle:Managing the Inltration o Consumer IT into the Workorce,” Accenture, October, 18, 2011,www.accenture.com/us-en/Pages/insight-managing-inltration-consumer-it-workorce.aspx.
3 Avanade® Research & Insights. “Global Survey: Dispelling Six Myths o Consumerization o IT,” January 2012,
http://www.avanade.com/Documents/Resources/consumerization-o-it-executive-summary.pd.4 “80 Percent o Fortune 100 Companies Onboard with iPad,” MacObserver , Je Gamet, January 18, 2011,
http://www.macobserver.com/tmo/article/80_percent_o_ortune_100_companies_onboard_with_ipad/.
5 Avanade, “Global Survey: Dispelling Six Myths o Consumerization o IT.”
6 Ibid .
2 Consumerization and the New World o Business Opportunity or Telcos
7/30/2019 Accenture Consumerization New World Business Opportunity Telcos
http://slidepdf.com/reader/full/accenture-consumerization-new-world-business-opportunity-telcos 5/12
Consumerization and the New World o Business Opportunity or Telcos 3
7/30/2019 Accenture Consumerization New World Business Opportunity Telcos
http://slidepdf.com/reader/full/accenture-consumerization-new-world-business-opportunity-telcos 6/12
4 Consumerization and the New World o Business Opportunity or Telcos
Given this undoubted sea change,
consumerization represents a major
opportunity or telcos to develop a new
value proposition. And it’s one that
cannot come too soon. For the central
challenge to the current business
model o telcos is the act that their
traditional bandwidth business is being
commoditized; and they need to nd new
sources o revenue in the next ve years,
or risk extinction. It’s true that telcos
have a strong heritage o innovation; but
over the last ve years or more, trends in
inormation technology have essentially“happened to” them—rather than their
taking control.
To counteract this reactive positioning,
telcos need to redene themselves and
oer customers a new value proposition.
One key aspect o a successul value
proposition or telcos is likely to be their
ability to understand customers’ ull range
o digital needs. For one potentially huge
source o competitive advantage or
telcos in the new ecosystem is that they
have a unique ability to access, track
and bill or customer needs—including
not just customers’ digital needs and
communications requirements, but also,
via mobility, their spatial location. Telcosneed to take advantage o this unique
ability and think in new, creative ways
about how to capitalize on their position.
By leveraging consumer IT products and
existing telco assets–specically, their
unique access to their customer base—
telcos have the opportunity to become
providers o digital services and over-
the-top (OTT) services to both consumers
and businesses. They potentially have the
ability to leverage consumer IT to provide
and monetize content, utilizing both
mobile channels and unbundled services.
In this way, by reclaiming their heritage o
innovation and taking advantage o their
unique capabilities, telcos can assume a
more central role in the new digitalecosystem.
Analysis: Developing aNew Value Proposition
7/30/2019 Accenture Consumerization New World Business Opportunity Telcos
http://slidepdf.com/reader/full/accenture-consumerization-new-world-business-opportunity-telcos 7/12
Consumerization and the New World o Business Opportunity or Telcos 5
Exploring Consumerizationas a Service
To command a central role, however, it’s
important or telcos to provide “abric”
or “bundled” services, rather than one-o
products and services. They should be
seeking to develop a service delivery
model that is consistent with such
overarching cloud-based concepts as
Sotware as a Service (SaaS), Platorm
as a Service (PaaS) and Inrastructure
as a Service (IaaS). One approach they
should entertain is what we might call
“consumerization as a service”—i.e.,
turning consumerization into a revenue-
generating opportunity or use with theirenterprise customers.
Consumerization as a service, while
largely derived rom SaaS, also includes
managed services, such as device
management and technical support.
Essentially, telcos can oer employers
consumerization packages or enhanced
ways o working together with their
employees, oering customers the
opportunity or their employees or
customers to access an online suite o applications and services on demand,
with the ability to be utilized on any
device, at any scale.
For example, let’s say there is a small rm
o architects who are seeking to leverage
the power o productivity applications—
Word, Excel, etc. Right now, they need to
license those applications directly, and
secure IT support themselves. But through
consumerization as a service, their
workorce could access ully scalable
cloud services on demand, and pay by
the hour or those services.
Consumerization as a service, dened in
this way, is o great potential interest
to corporate IT decision makers (ITDMs).
Accenture’s experience with ITDMs
indicates that many view consumerization
as potentially oering increased
productivity and reduced costs. However,
they also express concerns about data
condentiality and potential threats
rom malware, pestware and viruses.
Consumerization as a service, which
Accenture has shaped as a value
proposition or a ew technology
service organizations, would enable
telcos to directly address the perceived
opportunities and risks o consumeriza-
tion. By providing services in this area,
telcos can essentially become digital
services providers, monetizing cloud-
based services via broadband/mobile
networks.
Beyond improved workorce agility
and management o the perceived
downside risks o consumerization, telcos’
traditional expertise in managing billing
services also oers them the opportunity
to assist enterprises through “split billing”
that separates business rom personal
charges, or new pricing plans that
accommodate both business and personal
use. Such services can also be oered
on a tailored basis, enabling enterprises
to calibrate oerings dierently or
sales people versus oce workers
(see Figure 1).7
Figure 1. User-driven Consumerization
7 Accenture Research.
Behavior Applications Platform Device
A user’s daily roleand responsibilitieswill influence theapplications they use.
Applications will drive what platforms (e.g., iOS) can be used(e.g., needs IEG).
Underlying device isdictated by the platform(or OS); Blackberriescannot run Windows.
Spends most timeon client sites
MailCalendarSalesforce.com
Microsoft Office
Acer FerrariLaptop
SalesPerson
OfficeWorker
Windows 7
Uses standardsoftware whichrequires minimalprocessing software
Windows SharepointMicrosoft OfficeLotus Sametime
BlackBerry TorchDell Laptop
BlackBerry OSWindows 7
Behavior Applications Platform Device
7/30/2019 Accenture Consumerization New World Business Opportunity Telcos
http://slidepdf.com/reader/full/accenture-consumerization-new-world-business-opportunity-telcos 8/12
There are already clear indications o the
kinds o services that telcos can position
themselves to provide to consumers and
enterprises in this area. More than eight
years ago, NTT DoCoMo took a major step
orward when it transormed its mobile
phones into “wallets” by adding new
transactional capabilities to its handsets.Since then, other types o companies
have capitalized on this phenomenon.
BSkyB, historically a media provider, has
repositioned itsel to oer a wide range
o broadband and telephony services.
Recognizing the power o iPhone and
Android, the company has created a
multiscreen oer called “Sky Go,” which
enables TV subscribers to watch Sky
channels and programs on PCs, laptops,
mobile phones and tablets. Customers
can access their Sky channels wherever
they are connected to a WiFi or 3G
network, including Sky’s own public
WiFi network, “The Cloud.”
In some cases, too, companies in dierentindustries altogether have beaten telcos
to the punch. For example, a service
developed by one major banking institu-
tion permits person-to-person money
transers via text messages sent via
multiple devices, using mobile phone
numbers. This concept has been available
in some developing countries or several
years and is now well positioned to
be integrated into more developed
economies.
There is a wide range o additional
possible services. Some possibilities
include:
• The opportunity to purchase a laptop,
tablet PC, smartphone or other device
bundled with cloud-based services.
• Location-based discounts (e.g., usingthe mobile phone’s location as the basis
or oering a limited-duration discount
to the consumer).
• Oering consumers access to content
via premium packages, e.g., “light TV”
via mobile phone, or nding new ways
or mobile advertisers to generate
revenue through knowledge o specic
customer needs.
In general, other broad-based possibilities
include oering consumers enhanced
mobility services and social collaboration
experiences.
6 Consumerization and the New World o Business Opportunity or Telcos
Providing a Broader Spectrumo Digital ServicesConsumerization as a service, then, is the kind o managed service that is alogical starting place or telcos looking to invigorate their consumerizationvalue proposition. However, achieving the ull promise o consumerizationalso inherently means that when it comes to innovation, telcos need tothink beyond traditional services and customer segments, and look insteadat the broader spectrum o digital services that address all aspects o howconsumers can use their devices.
7/30/2019 Accenture Consumerization New World Business Opportunity Telcos
http://slidepdf.com/reader/full/accenture-consumerization-new-world-business-opportunity-telcos 9/12
Consumerization and the New World o Business Opportunity or Telcos 7
7/30/2019 Accenture Consumerization New World Business Opportunity Telcos
http://slidepdf.com/reader/full/accenture-consumerization-new-world-business-opportunity-telcos 10/12
8 Consumerization and the New World o Business Opportunity or Telcos
7/30/2019 Accenture Consumerization New World Business Opportunity Telcos
http://slidepdf.com/reader/full/accenture-consumerization-new-world-business-opportunity-telcos 11/12
The key or telcos seeking to takeull advantage o consumerization
is thinking systematically about
utilizing their unique assets to
target products to the ull
range o customer needs—using
consumers’ “digital ootprints” to
target specic sales and service
and advertising opportunities to
their exact needs, as well asthe needs o their employers.
Recommended strategies include:
1 Have a clear view o what
your customer proposition is
in digital services—you need
to have a strategy.
2 Innovate—and to do so, take
your insights not just rom
other telcos and media, but
rom other industries and
emerging economies—i.e.,think outside the telco “box.”
3 Think about the ways in
which consumers live and
work in order to identiy new
opportunities or electronics
devices and applications to
make their lives more
convenient.
4 Make sure you articulate
your innovations in terms o
business benefts—not just
“cool stu”—but as oering
specifc opportunities to
generate revenue, market
share, and/or margin.
Innovation in context-basedservices—utilizing telcos’
understanding o consumers’
“digital ootprints” and their
specic needs—can enable telcos
to provide richer services and
develop new sources o revenue.
What is undamentally required,
however, is or telcos to let go o
their traditional industry-drivenorientation and to think o
themselves as players in a broader
digital ecosystem—one that
begins and ends with the evolving
interaction between consumers,
devices and applications, and
that delivers an added spectrum
o convenience, unctionality
and impact.
Recommendations
Looking Beyond theTelco Industry BoxIn summary, the new reality o consumerization oers potentialopportunities or telcos seeking to reinvent themselves or the digital age.
Consumerization and the New World o Business Opportunity or Telcos 9
7/30/2019 Accenture Consumerization New World Business Opportunity Telcos
http://slidepdf.com/reader/full/accenture-consumerization-new-world-business-opportunity-telcos 12/12
About AccentureCommunications IndustryGroup
Accenture’s Communications industry
practice serves leading communications
service providers in an increasingly evolv-
ing and dynamic competitive environment.
Accenture helps Communications industry
clients ace the challenges to connect
with the digital consumer, increase
revenues, develop and launch innovative
products and services quickly and
optimize network perormance while
reducing costs. The combination o our
consulting, technology and outsourcing
experience, paired with our deep industry
knowledge, helps us veriy that we bring
the right solutions and resources to
enable our clients to unlock proitablegrowth, improve operations and achieve
high perormance.
Authors
Montgomery (Monte) Hong is
Accenture’s global Communications
Industry practice lead and also the lead
o Accenture Customer Operations
Business Service.
Christopher Hinitt is Accenture’s
Consumerization and Digital MediaCapability lead in the UK/Ireland, and
contributes to Accenture’s global
approach and thought leadership to
consumerization and social networking
in the enterprise.
Contact Us
Please visit www.accenture.com/
customer-operations or more inormation
about how Accenture can help your
company deliver an integrated customer
experience to improve customer loyalty
and satisaction while lowering the cost
to serve.
Or contact Monte Hong at
montgomery.a.hong@accenture.com or
Christopher Hinitt at
christopher.hinitt@accenture.com.
About Accenture
Accenture is a global management
consulting, technology services and
outsourcing company, with 257,000
people serving clients in more than
120 countries. Combining unparalleled
experience, comprehensive capabilities
across all industries and business
unctions, and extensive research on
the world’s most successul companies,
Accenture collaborates with clients to
help them become high-perormance
businesses and governments. The
company generated net revenues o
US$27.9 billion or the iscal year
ended Aug. 31, 2012. Its home page is
www.accenture.com.
Copyright © 2012 Accenture
All rights reserved.
Accenture, its logo, and
High Perormance Delivered
are trademarks o Accenture.
This document is produced by
consultants at Accenture as general
guidance. It is not intended to provide
speciic advice on your circumstances.
I you require advice or urther details
on any matters reerred to, please
contact your Accenture representative.
top related