PowerPoint Timesaver Better charts, tables, and … Touche Tohmatsu Limited • Sales and marketing consulting: Co-leading the initiative in Customer Practice • 15 year’s experience

Sales & Marketing Innovations Symposium

8 November 2011

© 2011 Deloitte S.A. Mobile Marketing | A new era in digital promotion 2

Agenda

From To Subject Speaker(s)

1:30 2:00 Registration

2:00 2:15 Welcome & introduction Basil Sommerfeld - Partner

2:15 2:45 Mobile marketing: a new era in digital promotion Véronique Filip – Senior Manager

2:45 3:15 Dot your brand: be part of the branding internet evolution Julie Chaidron

3:15 3:30 Audience questionnaire Morgane Pernot

3:45 4:00 Coffee break

4:00 4:30 Golden rules for successful events Anne-Veronique Fuhrmann – Manager

4:30 5:00 Serving mobile customers with mobile services Pascal Martino – Director

Maxime Heckel - Senior Manager

5:00 6:00 Guest speaker Christian Majgaard – Former top executive LEGO

6:00 6:15 Results, questions and conclusion Basil Sommerfeld – Partner

6:15 Cocktail

Mobile Marketing A new era in digital promotion

8 November 2011 Sales and marketing innovations symposium


Deloitte S.A. 560, rue de Neudorf L-2220 Luxembourg Tel: +352 45145 2440 Mobile: +352 661 451 523 [email protected] Member of Deloitte Touche Tohmatsu Limited

• Sales and marketing consulting: Co-leading the initiative in Customer Practice • 15 year’s experience in marketing: EMEA Marketing Director • Avery Dennison-Xerox-HP/ Newell Rubbermaid-Curver-Waterman/ Nestle/EDF/ Monte Paschi Bank • 7 departments created with new developing growth strategy • Brand positioning/differentiated tactics; pull through/integrated campaigns & lead generation model

Background

Véronique Filip Senior Manager Advisory and Consulting

mailto:[email protected]


Agenda

4 key steps for a successful mobile strategy 2

Mobile marketing best practices and future 3

Mobile marketing: its adoption amongst European marketers 1


“Mobile Marketing is a set of practices that enables organizations to communicate and engage with their audience in an interactive and relevant manner through any mobile device or network”*

What is mobile marketing?

* Source: Mobile Marketing Association definition – nov 2009

• Current activity classification is: – SMS/MMS – Applications – Codes – Display on web – Search – Social – E-mail

• Which can use different forms/techniques: – Insertion – Branded application, In-App – In-Game – In-Maps – Mobile coupon – Rich media – Location based – Augmented reality

• Could be combined together and combined with offline marketing forms

Insertion Rich Media Couponing

In-Map Insertion


With some very trendy techniques Augmented reality

Branded applications

http://edibleapple.com/wp-content/uploads/2009/08/augmented-reality-paris-2.jpg

http://edibleapple.com/wp-content/uploads/2009/08/augmented-reality-paris.jpg


Or some very sophisticated examples Tesco South Korea Virtual Store


Less than half of European marketers are already using mobile

67%

50%

30%

30%

28%

40%

22%

25%

28%

28%

35%

28%

11%

25%

43%

42%

37%

31%

Italy

Germany

Spain

France

UK

European average

Currently using Plan to use in the next 12 months No plans to use

“Does your company use mobile marketing?”

• Across Europe 40% of marketers are using mobile marketing

• Another 28% plan to start in the next 12 months

• Italian being the more aggressive adopters

Base: 264 European interactive marketers

Source: Forrester, 2011, European interactive marketing online executive panel survey


But mobile marketing remains a largely experimental channel

70%

48%

41%

36%

22%

39%

20%

17%

14%

8%

12%

12%

17%

14%

4%

10%

9%

15%

19%

14%

13%

4%

4%

5%

12%

6%

17%

16%

5%

17%

40%

20%

Spain

France

Italy

Germany

UK

Europeanaverage

€0-€174K €175-€349K €350K-€799K

€800K-€3.49M More than €3.50M Don't know

“What will be your company’s total mobile marketing budget in 2011?”

• Many marketers are using mobile, but few are putting significant money into it

• 1/3 will spend < €175K Majority’ll spend < € 350K

• 1/3 of marketers say

they’re merely testing the channel


Source: Forrester, 2011, European interactive marketing online executive panel survey


Marketer’s tactics don’t always align with user’s behaviour

Marketers are much more excited about branded apps than users are: • 38% of European mobile marketers are creating branded mobile applications • Only 7% of European consumers say they regularly download mobile applications

18%

24%

26%

32%

36%

19%

26%

24%

45%

38%

20%

37%

41%

32%

44%

Branded mobile applications

Mobile-optimized site

Mobile display

Mobile search

SMS and MMS marketing

“How are you implementing mobile marketing?”


Send or receive SMS/text messages

Receive SMS alerts

Access the mobile Internet

Download applications

Base: 5.237 European adults

“Which of the following activities you do?”

14%

34%

31%

84%

8%

20%

20%

71%

6%

17%

50%

67%

4%

11%

21%

71%

5%

13%

14%

76%

Source: Forrester, 2011, Benchmark survey

Italy Germany UK Spain France


Most marketers ignore the mobile internet

• Europeans are 2,5 times more likely to browse on mobile Web than to download mobile applications • But only 30% of marketers have optimized their websites for mobile browsing - only 25% are using mobile

search and only 19% buy mobile display advertising

18%

24%

26%

32%

36%

19%

26%

24%

45%

38%

20%

37%

41%

32%

44%



Mobile display

Mobile search





Receive SMS alerts





14%

34%

31%

84%

8%

20%

20%

71%

6%

17%

50%

67%

4%

11%

21%

71%

5%

13%

14%

76%




Message-based marketing remains king

• SMS is still by far the favorite mobile pastime of Europeans, accordingly 40% of marketers use SMS & MMS – but still need to be used wisely

• Only 17% of Europeans check email on mobile, however 41% of marketers optimize their email programs

18%

24%

26%

32%

36%

19%

26%

24%

45%

38%

20%

37%

41%

32%

44%



Mobile display

Mobile search





Receive SMS alerts





14%

34%

31%

84%

8%

20%

20%

71%

6%

17%

50%

67%

4%

11%

21%

71%

5%

13%

14%

76%




Agenda



Mobile marketing: its adoption amongst European marketers 1


Audience: Understand mobile behavior of your target audience 1

The 2011 Mobile Technographics ladder (Base: 25.533 EU-7 adults)

Entertainers

19%

Source: Forrester, January 2011

Companies have to understand in which of those categories fall their own customers before planning any mobile marketing activities

SuperConnecteds

12%

Connectors

7%

Communicators

36%

Talkers

30%

Inactives

10%

Access mobile Internet at least weekly and make regular use of multiple advanced applications and services. The most sophisticated user

Heavy consumption of music, video, or games at least weekly

Primary usage of mobile phone is for work Use app or advanced services that improve productivity or efficiency

Primary usage of mobile phone is to connect with other Unlike talkers they use messaging application: SMS, MMS, IM or email

Use mobile phones primarily to talk Mobile behavior is almost exclusively limited to voice calls

Do not own or use a mobile phone


Goal: Set your objective 2

• Mobile strategy must be aligned with business objectives • For setting objectives, a 3-step approach is commonly used :

Increase revenues

Increase number of customers

Increase revenue per customer

• Drive new customer acquisition • Increase customer retention & loyalty • Increase audience size or page views • Improve lead qualifications

• Drive sales with offers • Improve branding & customer service • Increase shopping frequency • Cross-sell/upsell at point of sale

• Reduce development time w.quicker testing cycles

• Minimize personnel costs as well as machine capital and maintenance costs associated with paper products such as tickets

• Optimize advertising spend with more effective or targeted marketing

• Reduce both working capital requirements and lost sales through accurate physical inventory counts

• Reduce need for physical displays by offering product information on cell phones

• Reduce time spent by staff on the phone by utilizing SMS for information snippets such as «your prescription is ready»

Reduce design costs

Reduce product costs

Reduce marketing costs

Reduce distribution costs

Reduce sales costs

Reduce customer service costs

Reduce costs

A Start with the overall business strategy

B Identify overall business objectives

C Choose relevant mobile objectives, such as:


Define the kind of relationship to achieve with your customer

Acquaintanceship

Objectives Examples

Increase brand awareness

Acquire new customers or direct leads

Friendship

Camaraderie

Confidence

Mobile ads • Brand message are experienced on a smaller

screen, competing with fewer other elements

• They can forge a clearer idea in the user’s mind of the brand positioning

Search ads with click to call functionality • The immediacy of mobile means first transaction is

driven by need and direct intention

• Initial contact at a distinct moment will create bonding experience with brand and consumer

Mobile opt-in couponing program in store • Deepen relationship to develop repeat business

• Always on media can bridge offline & interactive

• By opting-in users allow brands to engage with them in ongoing communication

Branded apps • Evolve the relationship into ones with deep loyalty,

create confidantes out of consumers

• Customers are willing and proud to carry your brands everywhere

Relation

Develop repeat business with customer

Develop brand loyalty


Define the strategy by answering 4 principal questions 3

Customer reached? • How many and which customers? • How quickly? • Do I need to train?

• What info, service or product? • Location/timely delivery? • Integration w. channels, process?

• For how much time? • Current investments? • Future investments?

• Direct distribution/telco/manufacturer • Free, ad-sponsored or paid? • Subscription or one-time?

Offer?

Commitment? Value chain?


While planning their marketing strategy, managers should remember that…

.....

.....

.....

.....

Friendship emphasizes careful messaging

Camaraderie requires deeper knowledge of your audience

Confidence involves the most stakeholders

Acquaintenceship demands the largest scale

• Create campaigns to reach the widest possible audience

• Consider the device types, operating systems and communication technologies used by the majority of your prospects

• Target the right consumer at the best location and/or time with the exact right call to action to get an opt-in or sale

• Program should target users at specific locations/times, with particular characteristics, and/or who are searching for information

• Deepen your knowledge : work with colleagues responsible for purchases to determine the kinds of offers that are most effective

• Choose when and where to encourage consumers to opt-in for these communications

• Creating a mobile program that appeal to your fiercest loyalist means collaborating with internal stakeholders

• Transactional apps require sign-off by executives, legal and product development in addition to the marketing team


Technology: Choose technology that enhances the consumer relationship you want

4

Some technologies suit certain objectives better than others

Acquaintanceship programs

Friendship programs

Camaraderie programs

Confidence programs

Choose technologies with the greatest reach SMS can be effectively paired with offline messaging to create an acquaintanceship program

Choose technologies with precise targeting capabilities Mobile search and display offers many options for targeting the right user at the right time Paired with click to call

Choose technologies that delivers personalized content and offers Mobile-optimized email helps marketers keep in touch with smartphone users SMS opt-in programs allows the greatest number of consumers to receive offers

Choose deeply engaging, long-term technologies The best choice for a confidence program is a branded mobile application with a high degree of utility

Display Search Email Social SMS/ MMS

Bar codes Branded apps

Acquaintanceship

Friendship

Camaderie

Confidence


Agenda


Mobile marketing: it’s adoption amongst European marketers 1



• Consider what the user need right now, include clear call to action that address customers needs at the moment

Expiring offer increase the value of having the information now

Leverage your Consumer Convenience Quotient “CCQ” offering

Immediacy Context Simplicity

• Consider screen size • Limit content and

simplify design • Review regularly

eBay uses bar code scan with the phone’s camera to identify product quickly

• Leverage relevancy of your message by using all information about the consumer

The weather channel uses location to send relevant weather information and ads


Technology innovations will drive context capability forward

NFC (Near Field Communications)

Extensible sensors

Motion control

Augmented reality

HD audio/video

Conversational voice

Pressure sensors

Heat/light sensors

Chemical sensors

Biometrics (e.g. fingerprints, iris)

2011 2012 2013 2014 2015 • Mobile context is “the sum total

of what your customer has told you and is experiencing at his moment of mobile engagement”

• Situation - Preference - Attitude

Technology evolution

Pay attention Determine market applicability

• Today’s fancy features will become commonplace

• New sensors will reveal more about the user’s environment

• Motion, voice and touch inputs will refine the user interface

• Business and technology planning: embracing existing contextual information while planning for anticipated technology

Source: Deloitte analysis and Forrester – survey conducted with worldwide device manufacturers


The evolution of context use will have 4 phases which represent the future of mobile marketing

Level of sophistication

High

Low

2011 2012 2013 2014 2015

• Past user behavior • GPS • Time of day

• Consumer’s purchase intent • In my store? In a competitor’s store? • Within 1 hour of flight? Two days?

• How wide is the room? • What floor in building? What aisle? • Direction consumer facing? • Light? Dark? • What does this dress look like on me?

• Biometrics • Conversational voice • Gesture-based control

• Buy via voice based control/authentication • New generation of product/services not

originate from online waving the phone over a set of ingredients to find a recipe

• Sensor can detect smells, analyze breath and assist navigation in building: – Recommendations on perfumes – Targeting in multistory malls – Virtual product trial for clothing

Future possibilities:

Phase 1 : master the basic

Phase 2 : layering in intelligence

Contextual experiences will evolve in 4 stages

Phase 3 : breaking from PC contexts

Phase 4 : embracing motion as a control mechanism

• Basic use of context such as location is important for search while time can trigger an action: “only too shirts remaining at this price”

• Variable price if your customer is in your store/hotel or in your competitor’s one

• Different price 2 weeks away from booking


• Better targeting

• Increase sales/service from brick & mortar locations

• Better client experience

To conclude: what could you expect from mobile marketing ?

Revenue

High

Low

Incremental revenue

Basic context Layered intelligence Break from PC context Motion based control

Revenue from new services

Time/ usage

• Higher profitability due to in-store higher purchase

• Higher price w. elasticity

• Higher customer satisfaction/loyalty

• Entirely new digital revenue-generating services

• Improved navigation precision

• Increase usage of mobile offering

• Deep engagement with products under consideration in a personal environment

Dot your brand Be part of the branding Internet revolution

Sales and marketing innovations symposium 8 November 2011


Deloitte S.A. 560, rue de Neudorf L-2220 Luxembourg Tel: +352 45145 4807 Mobile: +352 661 451 300 [email protected] Member of Deloitte Touche Tohmatsu Limited

Background

Julie Chaidron Senior Consultant Advisory and Consulting

• Active member of the Time2Dot initiative • Participate to several projects mainly in banking and funds industries • Area of expertise: Operational due diligence, Market segmentation, Benchmarking of industry pricing

and services levels, Multichannel strategy of distribution, Strategic positioning study and analyses of potential growth opportunities

• Member of Deloitte Customer Practice relative to Multi-channel aspects, social media, etc. in Luxembourg



Agenda

Why Luxembourg could be the DotBrand hub ? 2

How to get your DotBrand ? 3

What is DotBrand ? 1


MAJOR DECISION FROM ICANN • On June 20th, the Internet Corporation for Assigned

Names and Numbers (ICANN) decided to introduce new generic Top Level Domain Names (“gTLD”)

• The purpose of ICANN is to open up the Internet’s naming system to allow maximum flexibility and creativity in naming conventions. This will change the way people find information on the Internet and how businesses plan and structure their online presence

• You now have the opportunity to acquire a TLD named after your key brand*

- .bmw - .rolex - .hsbc - .smirnoff - .deloitte

• This represents a significant opportunity to capitalize and develop your brand, products, community or cause in new and innovative ways worldwide

• However, this opportunity comes at a cost and timing is relatively tight

News

• “How to register the best new top level domains”, June 3rd 2011, Wired

• “ICANN poised to increase web suffixes”, June 20th 2011, Financial Times

• “ ICANN approves new top-level domain

names”, June 23rd 2011, ICANN website

• “ Internet: près de 30.000 nouveaux noms de domaine disponibles ”, July 5th, Le Parisien

• “.Your brand ? Get ready for custom domain extensions”, July 12nd 2011, Mondaq Business Briefing

* Brands, company names and generic names mentioned in this document are mentioned purely for illustrative purposes. It should not be considered as an indication that these brands, company names and generic names have applied or are engaged in the application process for Dotbrand, or that Deloitte or its partners have been involved in any professional relationship in this respect.


NEW INTERNET REVOLUTION IS COMING

www.apple.com

From 273 Top Level Domains … … To unlimited domain extensions

To date, domain name space has been limited to 22 generic Top Level Domains which includes such familiar extensions as .com, .org, .net and 250+ country code Top Level Domain (e.g. .de, .fr, .lu)

The new generic Top Level Domain (i.e. gTLD) program of ICANN will allow for the filing of an unlimited number of extensions such as: •Established brands (.hsbc, .samsung, .nike) •Generic terms (.insurance, .cars, .shopping) •Geographic terms (.nyc, .boston)

iphone.apple ipad.apple

Brands Current URLs * Brands New URLs *

www.paris.com hotels.paris restaurants.paris

www.football.com uefa.football euro2012.football


http://www.apple.com/

http://www.iphone.apple/

http://www.ipad.apple/

http://www.paris.com/

http://www.hotels.paris/

http://www.restaurants.paris/

http://www.audi.com/

http://www.uefa.football/

http://www.euro2012.football/


THE OPPORTUNITY WINDOW IS VERY SHORT (3 MONTHS TO APPLY)

Expected launch of newly awarded gTLDS

2011 2012 2013

06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04

Initial evaluation

result on the applications

Evaluation period of applications

12/01 Opening of application

period

12/04 Closing of application

period

The window of opportunity is very narrow due to the high complexity of application process

Application period for (3 months)

Public information and education campaign of ICANN until the end of 2011

Already applying

.canon

.hitachi

Incertitude towards a possible

future reopening


HAVING YOUR DOTBRAND WILL BRING SIGNIFICANT BENEFITS…

NEW BUSINESS MODEL

SECURITY

MARKETING

COMMUNITY LEADER

• Become the reference/ standard of your industry (.beer, .steel)

• Be perceived as the industry innovator

PROTECTION • No infringement and

brand damage • Traffic remains under

your own community • Full brand control • No third party applies

for the same name

• Customer protection against cybersquatting, phishing and other customer intrusions

• Full control of registry • Enhanced data protection

and access

• Reinforce client loyalty and fidelity

• New sales channel • New internet

applications • New way to build a

community • Financial opportunities

• Reputation and brand value • Buzz benefit from the

application • SEO* optimization • New brand visual • Intuitive search • Client perception • Unlimited number of domain

names available

* Search engine optimization


…WHILE NOT HAVING YOUR DOTBRAND REPRESENTS SOME RISKS

Risks to mitigate

Competition • Competition might successfully apply and build a strategic

web brand asset that will be sustainable as ICANN will take years before reopening the access for new brands (if indeed it ever does reopen)

Reputation • Risk to « not be part of the club » or not perceived as

innovator

Financial • Financial cost of opportunity: The value of the strategic

asset in terms of competition is not known as many business models are possible but there will be a value: directly through royalties generation and tax optimization and indirectly in terms of reputation and brand awareness

Short brand names

• Brand names with 3 letters will have a very limited opportunity to acquire their TLD in a possible second wave

• String similarity rules with wave 1 applicants might prevent you from ever having your ideal DotBrand

• 200-500 K€ investment * • 50 K€ recurring cost **

* Including application fee and registry Operation & consultancy fees ** Depending the number of domains registered

Presenter

Presentation Notes


Agenda





LUXEMBOURG IS THE PERFECT LOCATION FOR YOUR DOTBRAND

Unique IP tax regime

Luxembourg stability

Registrant protection

ICT infrastructure above standards

1

2

3

4 Luxembourg

should be your DotBrand hub

Presenter

Presentation Notes


UNIQUE TAX REGIME ON IP (INCLUDING DOMAIN NAMES AND TLD)

Attractive IP regime

• 80% tax exemption of net royalty income and capital gains under conditions

• The only regime in Europe applicable to domain names

• Tax credit granted for foreign withholding tax paid on royalties

• Economic ownership of the IP is sufficient to benefit from the IP box (vs. legal ownership)

Rewarding and sustainable tax environnement

• Government committed to provide a favorable environment for IP activities

• Flexible approach based on economic considerations

• Easy access to the tax authorities

• Stable country tax situation and regulation

Double Tax Treaties (DTT)

• Extensive Double Tax Treaties network with 63 DTT’s in force and 19 under negotiation

Repatriation of profits

• Limitation of withholding tax based on Double Tax Treaties and/or EU Directive

3

Presenter

Presentation Notes


MULTIPLE BUSINESS CASES CAN BE CREATED AROUND THE IP BOX CONCEPT

Franchisees Customer focus Retail registrars of new generic extensions

Examples of brands / communities *

• Deloitte (713 offices in 150 countries)

• H&M (2,300 shops in 41 countries)

• McDonalds, BurgerKing

• Carrefour

• HSBC (7,500 offices in 87 countries)

• Public site (SFR, Orange, AT&T) : personal website, blog

• New generation Web banking 2.0 (Crédit Suisse, HSBC – 95 Mio of customers): information about their contracts/services, banking details, etc.

• Creative business models: personal homepage

Employee focus

Those different models could be combined

Objective of DotBrand

• Brands purchase their DotBrand (new extension) to create websites for their franchisees/ subisdiairies (or local offices)

• Brands buy their DotBrand (new extension) to create a community online for their customers

• Deloitte (169,500 staff worldwide) and HSBC (307,000 staff) : personal details, intranet, day off, agenda, professional applications, links to favorites, etc.

• ArcelorMittal (273,811 staff)

• Brands purchase their DotBrand (new extension) to create websites for their employees

• .Wine (more than 250,000 potential users)

• .Fun

• Community or business angel buy new generic extension to act as retail registrar and create a platform/ search engine around a community

• As retail registrar, they will sell the new extension to external users to create websites

3

Pricing/Royalties • Fee paid by franchisees / local offices annually

• Fees paid annually by the customer or the mother company as part of a package offering

• Fees paid annually by the employers for the utilization of personal websites for employees

• Fees paid annually by users of the new extension (current Internet model)

NOT EXHAUSTIVE

Many different business models possible



POTENTIAL CONFIGURATION: TELECOM COMPANY

Business case hypothesis

• Offering of one domain name per client with a DotBrand which is part of standard package (pricing of a triple play package, not service by service)

• Website will be activated for each client • Pricing of the overall package at 50 €/month per

client • 5 million clients • Today, if a client would like to buy a domain

name, it will cost him 25-50€ per year • Reinvoicing at EUR 10 per year by the LUX IP co

to the company receiving the revenue from the tripleplay package

• Additionally, Telecom Company could decide to charge a new fee to the client for even additional services provided through their personnal .BRAND website (storage space, email, access to sneak preview online, etc.). This would create an additional revenue stream to Telecom Company

Belgian co

LUX IP Co

Revenue: 50 M€ Tax base*: 10 M€ Tax due**: 2,9 M€

Effective taxe rate: 5,7%

50 M€/year

47,1 M€/year No withholding tax on dividend distribution

ILLUSTRATIVE

EXACT BUSINESS CASE TO BE DEFINED BY TRANSFER PRICING STUDY TO CONFIRM THE VOLUME OF POTENTIAL EARNINGS

Belgian co Tripleplay package 50€/Month

Benefits € 14,1 m per year ***

Deduction of 50 m of charges in source countries (tax rate 25-30%) Income pick up in Luxembourg at 5,76%, compared to 33% if directly paid to Belgium

Client A Client B Client C Client D

* Exemption of 80% under IPbox regime ** Lux tax rate of 28.8% applicable *** Taxation of the 50 M€ royalties thanks to Lux IP regime of 2,9 M€ in total (5,7%). If royalties would be paid directly to Belgian co, taxation would be 17 M€

3


Agenda





TURN KEY SOLUTIONS WITH SEVERAL SERVICE OFFERINGS ALONG THE CHAIN

Business case preparation

Tax planning and IP structuring

Application registration & management

Operations

Strategy to define the business models and capture the benefits

Online marketing to optimise your DotBrand value

IP box structuring to identify the most tax effective configuration

Legal advice on IP, and incorporation of the key structure including trademark registration

Application drafting and filing for ICANN

Technical Back-end / registry to implement the registry technical solution

Incorporation and corporate services/ domiciliation to manage all aspects of the company (compliance, accounting, tax, audit)

Corporate finance to perform brand valuation and build the business case

IT & Operations to prepare the most cost-effective approach

Transfer pricing to validate the tax configuration

Technical Front-end / registrar to set-up the registrar approach

Escrow for data and financial mechanisms

Domain name strategy to benefit fully from the extension and fine-tune the online marketing approach

Finalisation of registry and registrar requirements

Auction assistance Substance provision

One-stop shop, modular, single point of contact, ongoing support

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16



BACK UP


LUXEMBOURG STRENGTHS 1

.

Luxembourg sovereign risk is AAA (S&P)

5

Luxembourg in the heart of

Europe

Very stable legal environment with high proximity to the Lux Regulator

1

One of the only countries in Europe containing all domain names related systems (registry and registrars in the same country)

2

Financial and tax environment stability: unlikely to change tax rates 3 Distinctive characteristics such as multi-language, lawyers concentration and service providers that are accustomed in dealing with cross borders client requests

4

Presenter

Presentation Notes

Add multi language Add concentration of lawyers and service providers


REGISTRANT PROTECTION

Registrar

Registrant

Registry ISP & Hosting Provider

Following actors can be liable under local IP-

related acts

2

• Applying for a new TLD implies the need to work with a registry and registrar operators which might be subject to local law

• In the US, the ICE (Immigration and Customs Enforcement) operation has the right to bypass Domain name owners and registrars, going directly to registry operators such as VeriSign. This procedure enables US authorities to avoid jurisdictional problems associated with non-US resident & registrars

• Since 2010, ICE* has launched a campaign to fight against breach of copyright on internet. As a consequence, ICE has seized many domain names with .com and .org because they reproduced or distributed copyright material without authorization (e.g. www.rojadirecta.com )

• In Europe, data protection legislation has been harmonized to remove potential obstacles to the flows of Personal Data and to ensure a high level of protection within the EU. The directive sets strict limits on the collection and use of personal data and demands that each Member State set up an independent national body responsible for the protection of these data

• In Luxembourg, the «Commission Nationale pour la protection des Données» is the independent national body. Local laws are also applicable to reinforce protection of personal data stored in Luxembourg

* Immigration and Customs Enforcement in the United States

Presenter

Presentation Notes

http://www.rojadirecta.com/


LUXEMBOURG: ICT INFRASTRUCTURE ABOVE STANDARDS

Overall • Access to high quality ICT infrastructures due to an uninterruptible supply of the very

highest standard • High quality liaisons thanks to legal requirements concerning the laying fiber-optic cables

requirements

Global hub for ITO and BPO

• Back-office center for Europe (the financial sector in particular) • Many Information Technologies and Business processes can be outsourced to companies

such as IBM, Clearstream and Dexia Technology Services located in Luxembourg • These companies are located in Luxembourg due to several factors (Low VAT rate,

management packages with specific tax regime, low corporate tax rate)

ICT hub

• Platform to access worldwide markets by ICT companies located in Luxembourg (Amazon, iTunes, eBay, PayPal, Vodafone, RealNetworks, Rakuten, Skype,…).

• Important role of the proximity and responsiveness of the government • Guarantee of all the bandwidth needed by the local players thanks to Luxconnect fibre optics • Growth of sophisticated data centers and business continuity facilities.

Connectivity

• Excellent content and data distribution within Europe (and beyond) thanks to its high quality connectivity to the European backbone (T1).

• High quality connectivity with all major centers in Europe thanks to the network of redundant fiber optics

• Companies planning to locate their international activities in Luxembourg are able to choose between several providers and many links.

4

Source: Luxembourg for Business

Golden rules for successful events

Sales & Marketing Innovations Symposium 8 November 2011


Tel: +352 45145 2453 Mobile: +352 621 318 008 [email protected]

Background

Anne-Véronique Fuhrmann Manager Marketing & Communications

• Over 15 year’s experience in event organisation • Organise more than 150 events per year, more than 30 abroad (in Luxembourg, in the Grande

Region, in Europe and Worldwide) • Gained extensive expertise from years in the business delivering conceptual planning, organisation

and follow-up of international conferences, motivational and high level incentive events, concerts, etc.

Isabella Tuvo Manager Marketing & Communications

Tel: +352 45145 2740 Mobile: +352 621 494 695 [email protected]

Contacts




Agenda

Setting the right objectives 2

3

Events as a strategic communication tool 1

The real world scenario: our key to success

Our professional services 5

Our most successful events 4

© 2010 Deloitte S.A.

Events as a strategic communication tool


Events as a strategic communication tool Why organise an event? Events are considered more and more like a form of strategic marketing and live communication

by companies of all sizes. From product launches to press conferences, companies create events to communicate with staff, clients and potential clients

better target the audience compared to other forms of communication

Target the audience

create human contact Human contact

provide a live experience which can lead to a better appreciation of a brand, product, etc. thus provoking an emotional reaction in the target audience

Live experience

Events are a powerful marketing tool

because, if conceived and planned correctly, can create value by

influencing the behaviour of the target audience

Communicating with an audience by means of an event has the following advantages:


Setting the right objectives


Setting the right objectives

To correctly influence the behaviour of the target audience and ensure the success of an event, we need to set the right objectives, ask ourselves the right questions (failing to do so means that the event does not deliver its potential value)

Who is my target audience?

Which behaviour should my target audience have

following the event?

Which is the impact I would like to have on my

target audience?

How can I measure the results?

Set the right objective


The real world scenario: our key to success


Our keys to success

54

Phase 1

After initial briefing from client, producing retroplanning and timelines, budgets Securing and booking suitable venue

Phase 2 Co-ordinating venue management, caterers, • contractors and equipment hire Planning layouts, entertainment programme, scheduling workshops and demonstrations Searching speakers

Phase 4 Coordinating all details on the day of the event Troubleshooting any problems Handling all queries Post-event evaluation (ROI)

Phase 3 Coordinating briefings Preparing delegate packs Liaising with clients and suppliers to create a brand/look for the event Liaising with the media


Our approach & tools The difference between a successful and an unsuccessful event lies in having a strategic and structured business approach, respecting strict rules and leaving no space for improvisation, while always being innovative and creative.

• Automated email communications and secure online registration • Professional event website templates to take your events to the next level • Automated badge production and scanning of conference participants

Use of powerful communication

features

Hybrid and virtual events - Use of state of the art technology

• As we are present in over 40 countries with more than 170.000 employees, we can leverage on a worldwide supplier network with proven results

• Selection of world renown celebrities who perfectly match audience’s expectations and client’s budget

Extensive supplier & speaker network

Innovative & creative concepts

• Design and deliver electronic surveys to event participants • Event follow-up and statistics tracking, ROI calculation • Social media tools • Brand image measurement, e-reputation

Measure of event performance

• Live audiovisual recording of speakers, giant LCD screen projections • Voting system, webinars, podcasts • Social media

• Permanent watch on new event concepts • Identification of last trends in event management • Consistent implementation of green and ecological concepts


Our most successful events



Conferences and parties «Luxembourg Financial Services 2020» Conference with more than 250 participants on the outlook Of Luxembourg’s financial services industry in 2020. Opening Speech delivered by Luxembourg Minister of Finance

«Art & Finance» Conference series These conferences address the business opportunities Art and Collectible assets could generate and facilitate an open forum for wealth management opportunities.

«New Year Parties» Parties for up to 1000 guests with extended use of hi-tech tools such as live video, giant screen projections, etc.



Events with internationally renowned speakers

Jacques Attali, former adviser to President Mitterrand, first president of the European Bank for Reconstruction and Development, founder of the non-profit organisation PlaNet Finance

Jo Gambi entered the Guinness World Records for the fastest female ascent of the seven summits

Sahar Hashemi founded Coffee Republic, the UK’s first US style coffee bar chain and built it into one of the most recognised high street brands

Linda Yueh, correspondent for Bloomberg, expert on the global economy, Asian economies, rise of emerging markets

John Pearson, former CEO and Co–Founder of Virgin Radio, guru of the media business



Concerts with celebrities • Jazz concerts

‒ Diana Krall ‒ Madeleine Peyroux ‒ Toots Thielemans

• Wintergarten Variété Theater Berlin

‒ Private performance by Ute Lemper



Green events CSR-oriented team building for more than 300 participants who cleaned-up the banks of the Sûre river. This project Was organised in cooperation with the Administration de la Nature et des Forêts.


Our professional services


Our professional services

Three levels of assistance

• Through its strong expertise, Deloitte has the ability to assist its clients during all the different phases of the event life cycle

• Our panel of professional services is completely flexible and customisable, therefore we can provide:

‒ Complete outsourcing of the

event ‒ Ad-hoc professional advice ‒ Event performance

measurement

How can we help you ?

The client decides to outsource the complete organisation of the event An integrated offer to assist the

client from the conceptual planning to the post-event follow-up

Complete outsourcing of

the event Our experienced staff can provide strategic and/or operational advice: Event concept Customisable ad-hoc intervention for

each planning and organisational phase Performance measurement

Ad-hoc professional advice

ROI calculation through quantitative and quality surveys, attendance statistics, online presentations, social media community reactions

Brand image measurement, e-reputation

Measurement of the event performance

Serving mobile customers with mobile services

Sales and marketing innovations symposium 8 November 2011


Pascal MARTINO Directeur Advisory & Consulting Tel: +352 45145 2119 Mobile: +352 621 246 523 [email protected]

Maxime HECKEL Senior Manager Advisory & Consulting Tel: +352 45145 2837 Mobile: +352 621 268 956 [email protected]

• ~10 years experience in Business Consulting and Advisory services

• Expertise in Private, Retail and Commercial Banking as well as in the Fund Industry

• Excellent knowledge of the multi-channel, e-banking, mobile banking topics and issues

• Member of Deloitte Customer Practice relative to Multi-channel aspects, Web, CRM, Value Propositions, Customer Experience, etc. in Luxembourg

• Other areas of expertise: project management of large and complex projects, lean / six sigma methodology and business reviews, definition and design of target operating model from a process, organizational and technical point of view

• ~7 years experience in Technology and Business Advisory services

• Expert in transaction/payment flows, Sanction Control, AML and Fraud Detection solutions

• Excellent knowledge of e-Banking, m-Banking topics and issues

• Member of Deloitte Customer Practice relative to Web and Mobile Solutions, Mobile Application Development, Social Media, etc. in Luxembourg

• Other areas of expertise: cross-border program and project management in Financial Institutions; design/implementation of complex Target Operating Model from a process, technical and data point of view

Deloitte S.A. 560, rue de Neudorf L-2220 Luxembourg Member of Deloitte Touche Tohmatsu

back

grou

nd

back

grou

nd




Mobility is everywhere 2

Bottom line 3

Mobility is key 1

m-Commerce a

m-Loyalty & m-Ticketing b

m-Health, m-Governance & m-Education c

m-Banking d

m-Payment e

Agenda


Mobility is key Ubiquity

The mobile phone is perhaps the most successful consumer device in history in terms of consumer access, penetration, and usage.

Ubiquitous computing (ubicomp) : “a post-desktop model of human-computer interaction in which information processing has been thoroughly integrated into everyday objects and activities”.

0

0,5

1

1,5

2

2,5

3

3,5

4

4,5

5

Mobilephone

TV CreditCard

PC Fixedphone

Car

Worldwide volume in billion

It’s more likely that you’ll forget your wallet than your mobile phone when you leave home in the morning.

Common consumer devices


Mobility is key Few figures

Mobile phones have changed the way we live and work. No matter the location, whatever the time, consumers have been addicted to constant available contacts, data and value added services.

Source: iTech, 2011


e-Technology m-Technology

Mobility is key From “e-” to “m-”

STATIC MOBILE

e-confidence

Hyper geolocation

Instant response

Anywhere

Anytime


Mobility is key m-Technology, key Drivers & Benefits

m-Technology

Accessibility and interactivity

Dynamism

Supporting business and

efficiency

Simplicity and personalization

Monitoring As a facilitator to operations efficiency

Whenever and wherever the customers are, they can have access to the online services

Stay close to customers and understand their needs & behavior

A simple and personalized fitting with client profile and preferences

As a dynamic and pro-active communication, interactive, advisory and selling tool

1

2

3

4

5



Bottom line 3

Mobility is key 1

m-Commerce a



m-Banking d

m-Payment e

Agenda


Mobility is everywhere MVAS – Mobile Value Added Services, a growing concept

Voice call 44%

SMS 14%

Email 12%

Music 10%

Games 8%

Internet 9%

Other 3%

2007 2008 2009 2010 2011 2012 2013 2014Smartphones Basic Communication Device

Perspectives for mobile phone sales

Smartphone usage

Infos Apps Enablement What’s next ?

Source: Morgan Stanley, Gartner, Deloitte Analysis

Changes in consumer habits

As the telecom industry sees a rapid decline in voice related revenues, it is looking at services through MVAS to develop it to the next level of growth.

Extended mobile phone functionalities enabled telecom industry to attract a wider public to use smartphones.

Telecom industry changes, giving more possibilities to consumers, requiring competitive industries to develop new differentiation sources.


Mobility is everywhere MVAS landscape

MVAS

m-Commerce

m-Loyalty

m-Ticketing

m-Health

m-Governance

m-Education

m-Banking

m-Payment


m-Commerce … beyond e-Commerce

Consumers are changing their behavior and expectations with regard to shopping and brand loyalty.

Behavior changes

Businesses are changing the way they do business thanks to new technologies.

Business changes

m-Commerce is the ability to conduct commerce using a mobile device, such as a mobile phone, a smartphone, or other emerging mobile equipment such as a tablet.

Mobile phones are enabling these changes to happen on a global scale.

Device changes

m-Commerce is leading the way to a new

business model

m-Commerce does not replace e-Commerce, it brings mobility.

1 2 3 4 5 6 7 8


Customer m-Loyalty

m-Loyalty A new way to compete

Reduce installation cost No investment needed in printing, loyalty cards, reading machines and software to manage the program.

Run effective promotions with customer Provide promotional campaign using small notice. No need to spend on marketing or print advertising.

Beat customer card fatigue Avoid customers to carry several cards in their wallets by using a unique application on their smartphone.

Talking with clients Remind your client that they accumulate substantial loyalty points or before a promotional campaign ends.

In order to support the customer’s efforts in keeping a short time-to-market with new revenue generating services, Mobile Loyalty has developed a set of standardized advertising services integrated into the customers service portfolio, based on AdMomoco, a SaaS (Software-as-a-Service).

The standard service means a fast track for all media companies that want to offer a new advertising channel to their existing advertisers. This opens up a new revenue stream by moving revenues from traditional banners and direct marketing.

Illustration of a developing company

1 2 3 4 5 6 7 8

Source: Mobile Loyalty


m-Ticketing Take-off

m-Ticketing forecasts & Development stages Forecasts in the US & Western Europe

Source: Roland Berger from ”Panorama du marché de la billetterie en ligne”

m-Ticket sold per year in the US (in billion)

2008 2014 2012 2010

Lauch Growth

2 bn

15 bn

First appearance of pure players.

First signs of concentration Expansion of online ticketing for events (festivals, concerts, etc.).

• Expected growth to 15 billion sold tickets in 2014 in the US

• Western Europe is likely to exceed this figure

1 2 3 4 5 6 7 8


m-Health, m-Governance, m-Education Quick look

Though the problem cannot be entirely solved by MVAS, various case studies prove it can enable major strides in the delivery of timely and effective medical services and serve to improve overall standards of public health. Governments of many countries have adopted MVAS to spread awareness about, and thus control the spread of chronic diseases such as AIDS as a first step.

The aim of m-Governance is to deliver effective governance to all citizens as it is critical for the socio-economic development of countries : giving citizens direct and convenient access to the government to help reinforcing the democratic setup. A number of state wide e-governance initiatives have been undertaken to make the governance system more effective. m-Governance has to make it stronger.

Education is a basic requirement for citizens of any country, as it is seen as the foundation of a society having economic wealth, social prosperity, and political stability. Governments and other stakeholders (including organizations, NGOs, etc.) in many countries have adopted MVAS to deliver education services taking advantage of the growth of mobile phones penetration.

m-Governance m-Education

Success stories

m-Health

Success stories Success stories

RegPoint Ltd is a Swedish health services company focused on bringing wireless technology to the global health care community. The solution is used to facilitate two-way wireless medical data transfer between individual citizens, health authorities and care providers.

Diabediario (Mexico) is a solution for changing diabetics’ lifestyles and for controlling and improving their adherence to their diabetic treatment. This application is used to send patients reminders and emails to remind them taking medicines or making appointments.

Timely and personalized SMS alerts and notifications for various services including renewals (passport, road tax), Central provident fund (CPF) account alerts, licenses, electoral division / constituency, contact information of government.

A host of government applications, including SMS technology being used by citizens to pay their taxes, and for polling for local governments. Moreover, small applications are being developed to target specific citizens such as sending automatic birthday wishes.

A Joint Venture between Nokia and Pearson in the China Market launch a service which allows to take advantage of free time to study English on their cell phones, anytime, anywhere, to quickly and efficiently improve their reading, listening, speaking, and writing skills.

Use mobile phones as a tool to promote adult literacy and numeracy in Niger. The program includes a mobile phone module as a complement to traditional literacy classes, providing the opportunity to practice their literacy and numeracy skills via calling and SMS.

ABC Africa Mobiles 4 literacy

1 2 3 4 5 6 7 8


m-Banking From a branch model to an online & mobile model

1 2 3 4 5 6 7 8

Evolution of the use and importance of distribution channels Observations

• If, in the 80’s, consumers used exclusively branches, the trend today is to use multiple channels.

• The emergence and growing importance of online channel is linked to the declining use of the agency channel. In the short term, "online" will represent a larger volume of transactions than agencies.

• In parallel to online banking, the mobile banking is getting important for customers and is expected to grow even more strongly over the coming years, particularly with the new PDA (e.g. iPhone, iPad, Android, etc.).

CC

Inter- net

Sales & Services Intensity

Branch

ATM/ SSB*

Mail

CC

Mobile

Internet


Branch

ATM/ SSB*

Mail

Tran

sact

ions

Inte

nsity


CC

Branch ATM/ SSB*

Mail

Relative weight for the client

Important Weak

1980’s 2008 2012

* Self service banking

Source: Forrester


m-Banking A growing importance in the direct banking channels

1 2 3 4 5 6 7 8

Smartphone usage Changes in consumer habits

Today’s and Tomorrow’s Mobile banking solutions: Account alerts, security alerts and

reminders

Account balances, updates and history

Customer service via mobile

Branch or ATM location information

Bill pay, deliver online payments by secure agents and mobile client applications

Funds transfers

Transaction verification

Mortgage alerts

“Future” M-Payments services include: Mobile commerce

Mobile payments

Contactless payments using NFC (Near Field Communications)

Mobile coupons

Location-based services

US

Hou

seho

lds

(Mill

ions

)

0

500

1000

1500

2000

2500

2007 2008 2009 2010 2011 2012 2013 2014 2015

Mobile Internet Users

Desktop Internet Users

Inte

rnet

Use

rs (M

illio

ns)

0

10

20

30

40

50

60

70

1995 1997 1999 2001 2003 2006 2007 2009 2011 2013 2015

Mobile Banking vs. Online BankingActual: 1995-2006, Forecast: 2007-2016

Online Banking

Mobile banking

Global Mobile vs. Desktop Internet User Projection , 2007 – 2015 E


m-Banking The use of m-Banking

1 2 3 4 5 6 7 8

Account Information • Mini-statements and checking of account history • Alerts on account activity or passing of set thresholds • Monitoring of term deposits • Access to loan/card statements • Mutual funds / equity statements • Insurance policy/ Pension plan management • Status on cheque, stop payment on cheque • Ordering cheque books • Balance checking in the account • Due date of payment • PIN provision, Change of PIN and reminder over the Internet • Blocking of (lost, stolen) cards Payments, Deposits, Withdrawals, and Transfers • Domestic and international fund transfers • Micro-payment handling • Mobile recharging • Commercial payment processing • Bill payment processing • Peer to Peer payments • Withdrawal at banking agent • Deposit at banking agent Investments • Portfolio management services • Real-time stock quotes • Personalized alerts and notifications on security prices Support • Status of requests for credit • Check (cheque) book and card requests • Exchange of data messages and email • ATM Location

m-Banking features Today

Tomorrow …

• Communication enrichment - Video Interaction with agents, advisors • Pervasive Transactions capabilities - Comprehensive “Mobile wallet” • Customer Education – “Test drive” for demos of banking services • Connect with new customer segment - Connect with Gen Y – Gen Z using

games and social network ambushed to surrogate bank’s offerings • Vertical positioning - Positioning offerings over mobile banking specific

industries • Horizontal positioning - Positioning offerings over mobile banking across all

the industries • Personalization of corporate banking services - Personalization experience

for multiple roles and hierarchies in corporate banking as against the vanilla based segment based enhancements in the current context

• Build Brand - Built the bank’s brand while enhancing the “Mobile real estate”

Survey mobile banking activities by mobile bankers (use of services in last 30 days)

Source: Javelin Strategy and Research


Innovative m-Banking examples BBVA Bank

1 2 3 4 5 6 7 8

Tool allowing customers to consult bank accounts (balance and transactions) of different bank accounts from different banks, as well as to compare own profile to other customer profiles.

Source: Deloitte Team analysis

The user can personnalize the application by adding or suppressing some functionnalities

The information is divided in different pre-defined « worksheets ». The user can define, move, suppress these as he wants to

After having defined a group of « pairs » depending on factors such as age, profession, living residence, etc. the users can compare their situation with the one of their pairs

Synthetic vision of account balances of different bank accounts and from different banks

Alerts defined by the user


Innovative m-Banking examples JPMorgan : iPad applications for customer and staff

1 2 3 4 5 6 7 8

Source: Deloitte analysis – JP Morgan internet site

JP Morgan also distributes iPad and related professional tools to the staff to increase productivity.

JPMorgan released its Private Bank’s app, designed for Apple’s sleek iPad tablet computer (Nov 2010)

It shows, in sharp, highly readable detail, the latest numbers for all your accounts, from checking to private-equity holdings, from anywhere you can get a wireless Internet connection.

J.P. Morgan Mobile offers its clients the convenience to take care of their banking needs at any time:

• Pay bills, loans and credit cards • See account balances and transaction

history • Transfer money between your accounts • Send wire transfers • Quickly and easily locate the nearest Chase

branch or ATM • Contact a J.P. Morgan service team

representative at any time • Read offline and permanently store

information offline • Receive instant alerts when new content

becomes available • Email content from the app • Read in preferred document readers


m-Payment m-Payment at tipping point

1 2 3 4 5 6 7 8

m-Payment : transfer of funds in return of a good or service, where the mobile phone is involved in both the initiation and confirmation of the payment. The location of the payer and supporting infrastructure is not important: he may or may not be ‘mobile’ or ‘on the move’ or at a Point of Sale (PoS); the payment may be processed by credit cards or by a prepaid wallet.

m-Payment Framework Framework of factors impacting the mobile payment services market

,0

20000,0

40000,0

60000,0

80000,0

100000,0

120000,0

2009 2010 2011 2012 2013 2014

Africa & Middle EastRest of Asia PacificIndian Sub ContinentFar East & ChinaEastern EuropeWestern EuropeSouth AmericaNorth America

• Although still anticipated to be a small proportion of total payment value and volume in the short to medium term, there is the potential for significant increase in the future – could mobile be the new form factor for payments, replacing the plastic card?

• According to Market Research, the global volume of mobile payment transactions is expected to grow from $37.4 billion in 2009 to over $1.13 trillion in 2014. In addition, the number of mobile payment users worldwide is predicted by Gartner to surpass 141 million in 2011, a 38.2% increase from 2010.

2009-2014 estimated growth in m-Payment transaction values

Source: ScienceDirect , Juniper Research, Gartner, Market Research


m-Payment m-Payment solutions landscape

1 2 3 4 5 6 7 8

PRO

XIM

ITY

REM

OTE


m-Payment Proximity Solutions

1 2 3 4 5 6 7 8

NFC (Near Field Communication)

It is to pay at PoS by holding your mobile phone in proximity, transfer money to your friend by moving the phones towards each other or by paying your metro ride by holding your phone at the reader.

As the examples show, contactless payments can be done both between consumers (P2P) and between consumers and merchants (C2B).

With the help of an extra device and an application for the hardware the mobile phone can be used to accept (typically) card payments. The external card readers typically support payments between consumers and small enterprises. They are specifically targeted for enterprises not large enough for traditional PoS devices, thereby providing access to those otherwise.

Google Wallet is an Android app that makes your phone your wallet. It stores virtual versions of your existing plastic cards on your phone. Simply tap your phone to pay, it uses NFC.

Square is a cube-like plug-in that works with iPhone, iPad and Android phone, to read credit cards and allows merchants to accept. mobile payment. • 2.75% per swipe for all cards • Next-day payout • Fast setup Meet an incredible success in the US and plan to extend the business overseas.

1

Mobile phone used as PoS device 2

Source: Goolge, Square websites


m-Payment Remote Solutions

1 2 3 4 5 6 7 8

Mobile Money transfer

Transfer of funds from one consumer to another over long distance.

Two contexts :

Between consumers within the same country

Sending money overseas (the most used)

Payments via the mobile browser or via an app on a mobile device. There can be distinguished between two use cases of mobile online payments that both are executed in the B2C- environment: m-commerce and digital goods.

Online business models are incorporated into mobile devices in order to maximize revenue.

3

Mobile Online payments 4

Kwixo (Crédit Agricole & LCL, France) launches a new payment solution for all online transactions.

Pay for purchases which have been made on the internet and make money transfer to anyone, on a simplified and secured way, thanks to your mobile phone.

QR-Codes are solutions to quickly and efficiently bring mobile phone users onto the mobile web. QR-Codes can be used to store all kinds of data including web addresses or offline publications. QR codes can also be used as a payment solution tag.


m-Payment Minicash, lessons learned …

1 2 3 4 5 6 7 8

Minicash payment system appeared in Luxembourg in 1999. Created to facilitate parking payments use in vending machines and shops, the idea was to replace cash without the need to fumble around for coins. The idea worked similar to that of a phone “pay as you go” scheme. Minicash has been stopped by its creator CETREL in march, due to lack of users.

Client physically had to visit their bank or use an ATM to top it up, impossible to load from a distance. “Load before use” model is an obstacle.

Minicash was not accepted in all points of sales (e.g. shops, parking automate, etc.).

Parking operators recently processed an harmonization of their payment acceptance options : the credit card remains the most used mean.

LACK OF MOBILITY LACK OF COORDINATION LACK OF VISIBILITY

What is it ?

Why it has been stopped ?


m-Payment What’s next ?

1 2 3 4 5 6 7 8

New payment solutions to bridge the gap between customers mobile operators, banks and merchants.

Where to use it ? How it works ?

95,00 EURConfirm

payment ?

YES NO

Paymentconfirmed

Scan QR Code or swipe (NFC) Validate payment Payment confirmed

Payer Payer’s Bank

Merchant’s Bank

PAYMENT ORDER CREDIT TRANSFER

Point of Sale

Web

In-App

Invoice



Bottom line 3

Mobility is key 1

m-Commerce a



m-Banking d

m-Payment e

Agenda


Bottom line Inescapable… but still challenging

Many industry actors believe that success will hinge on gaining new skills, notably the ability to market through a variety of channels, to integrate IT across them, to develop smartphone apps, and to convert digital transactions to sales.

Critical factors Status Rationale

Policy Framework • Lack of recognition of MVAS as an industry • Absence of guidelines for the various MVAS industry players • Lack of government initiative

Support Infrastructure • Increasing subscriber base, propelled by falling handset prices • Impending deployment of 3G services • Inadequate infrastructure in semi - urban and rural areas • Lack of consumer authentication and system security infrastructure

High Equilibrium Ecosystem • Inequitable Revenue Share • Lack of transparency between telcos and content providers • Multiple operational challenges

Very low

Low

Medium

High

Very high

Enablers

Challengers

• Mobile payments are set to transform several industries, including Banking Industry.

• For those that are still standing in the sidelines of the race for mobile payments solutions, continued delay may risk the loss of market shares and revenue to competitors, but moving too hastily (or without a strategy) runs the risk of investing in a short-lived technology or solution.

• As many struggle to move ahead in this constantly changing technology and competitive environment, it will be critical for them to understand not only their own objectives, but also those of their partners, competitors, and – most importantly – their customers.

About mobile payments


Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 140 countries, Deloitte brings world-class capabilities and deep local expertise to help clients succeed wherever they operate. Deloitte's approximately 169,000 professionals are committed to becoming the standard of excellence.

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