1 Copyright © 2019 Deloitte (M.E.). All rights reserved. tmforum Digital Transformation Middle East – User Centric Business Transformation Strategizing to a Digital Future Customer Centric Business Transformation Track JANUARY 21 ST , 2019
1Copyright © 2019 Deloitte (M.E.). All rights reserved. tmforum Digital Transformation Middle East – User Centric Business Transformation
Strategizing to a Digital Future Customer Centric Business Transformation Track
J A N U A R Y 2 1 S T , 2 0 1 9
2
Kickstarter: the coffee storyHuman-izing Digital
Digital ImperativesStrategic imperatives driving digital in the industry
The Middle East Digital LandscapeNations are taking the leap into being more digital
Digital Transformation JourneyThe journey from exploring digital to being digital
Digital Telco: the enabler Enabling new adjacent markets
The “New” CustomerCustomer needs are evolving
How are we digitizing – A Glance?
Strategizing to a digital future
The Middle East & the role of the digital telco
3Copyright © 2019 Deloitte (M.E.). All rights reserved. tmforum Digital Transformation Middle East – User Centric Business Transformation
…asks questions after questions…
…gets to ‘roaming complaint’…
…agent can’t resolve issue and directs me to the app…
I am disconnected cant do nothing
ChatBot greets me by name…
…transfers call to agent…
…I explain the issue all over again…
…issue doesn’t get resolved…
…I go through the hoops again…
…I visit the store…
…inquires why I didn’t come yesterday…
…prepares my small Americano with milk on the side as soon as I walk in no questions asked…
…offers me upsells based on buying behaviors & preferences…
Experience:
Have we really delighted the customer yet? Not quite.
1. Coffee storeI walk into my habitual coffee store…
• Only human interaction over 1 year
• Preferences learnt over time
• Delightful experience that creates belonging to the interaction
Greets me by name…
2. Telco operatorI encounter a roaming issue…
• Digital interaction over 7 years
• Preferences not learnt over time (still asks for language preferences)
• Frustrating experience that takes very long to get customer to what they want
Experience:
PersonalizedUser-friendly
servicePersonalized
User-friendly service
4Copyright © 2019 Deloitte (M.E.). All rights reserved. tmforum Digital Transformation Middle East – User Centric Business Transformation
…asks questions after questions…
…gets to ‘roaming complaint’…
…agent can’t resolve issue and directs me to the app…
I am disconnected cant do nothing
ChatBot greets me by name…
…transfers call to agent…
…I explain the issue all over again…
…issue doesn’t get resolved…
…I go through the hoops again…
…I visit the store…
…inquires why I didn’t come yesterday…
…prepares my small Americano with milk on the side as soon as I walk in no questions asked…
…offers me upsells based on buying behaviors & preferences…
Experience:
Have we really delighted the customer yet? Not quite.
1. Coffee storeI walk into my habitual coffee store…
• Only human interaction over 1 year
• Preferences learnt over time
• Delightful experience that creates belonging to the interaction
Greets me by name…
2. Telco operatorI encounter a roaming issue…
• Digital interaction over 7 years
• Preferences not learnt over time (still asks for language preferences)
• Frustrating experience that takes very long to get customer to what they want
Experience:
PersonalizedUser-friendly
servicePersonalized
User-friendly service
5Copyright © 2019 Deloitte (M.E.). All rights reserved. tmforum Digital Transformation Middle East – User Centric Business Transformation
6Copyright © 2019 Deloitte (M.E.). All rights reserved. tmforum Digital Transformation Middle East – User Centric Business Transformation
Who is the new customer then? The customer is well informed, has high expectations, and connected all the time.
Product information and inspiration aswell as recommendation through socialmedia
Mindful communication behaviors? Growing amount of users of sharing info on telco products
Connected media providers
Around 2.6 hours per day are 25-34 year-olds using internet
45% of smartphone owners are making purchases using a mobile device every month
64% of customers intend to research online before buying telco products
Less is more
Digital consumer own 3.64 connected devices
Source: Deloitte research and analysis 2018
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What are the strategic imperatives for being digital? Strategic intents drive the strategic outcomes.
Strategic IntentDigital is a means to…
• Adjacent and more transformational sectors and markets
• Simplify and exponentially improve customer experience
• Improve operational efficiency to improve cost models
• Transform business models
Strategic OutcomesDigital can help achieve…
• Customer intimacy
• Talent retention and attraction
• Growth and profitability
• Shareholder Value
Customer relationship remains with Telcos
Telcos are fully displaced from customer relationship
Technology competence returns to telco players
Technology competence displaced from Telco Players
The Engineer strikes back
A Vendor Brand
The Virtual Telco
The New Wholesale Truth
Telco 2030 identity choices
Source: Deloitte Telco 2030; Note: 1) Market share is gradually reducing, 2) ~10% of the 2025 estimate of 27BN IoT connections, 3) GAFA: Google, Apple, Facebook, Amazon
Critical size in global number of clients> 1Bn customers
Critical size in number of service partners> 1Bn coverage aggregated FTTH/4G
> 3Bn clients and sensors2
Critical size in number of clients and local infrastructure1
> 1Bn clients and >500M mutualized FTTH/4G coverage
Critical size in local infrastructure> 500M mutualized FTTH/4G coverage
The virtual telco The engineer strikes back
The new wholesale truth A vendor brand
8Copyright © 2019 Deloitte (M.E.). All rights reserved. tmforum Digital Transformation Middle East – User Centric Business Transformation
What are the strategic imperatives for being digital? Strategic intents drive the strategic outcomes.
Strategic IntentDigital is a means to…
• Adjacent and more transformational sectors and markets
• Simplify and exponentially improve customer experience
• Improve operational efficiency to improve cost models
• Transform business models
Strategic OutcomesDigital can help achieve…
• Customer intimacy
• Talent retention and attraction
• Growth and profitability
• Shareholder Value
Customer relationship remains with Telcos
Telcos are fully displaced from customer relationship
Technology competence returns to telco players
Technology competence displaced from Telco Players
The Engineer strikes back
A Vendor Brand
The Virtual Telco
The New Wholesale Truth
Telco 2030 identity choices
Source: Deloitte Telco 2030; Note: 1) Market share is gradually reducing, 2) ~10% of the 2025 estimate of 27BN IoT connections, 3) GAFA: Google, Apple, Facebook, Amazon
Critical size in global number of clients> 1Bn customers
Critical size in number of service partners> 1Bn coverage aggregated FTTH/4G
> 3Bn clients and sensors2
Critical size in number of clients and local infrastructure1
> 1Bn clients and >500M mutualized FTTH/4G coverage
Critical size in local infrastructure> 500M mutualized FTTH/4G coverage
Invest in network infrastructure and long
term technologies (fiber, 5G…) in a mutualized
way
Positioning as a Hub of networks (bonding,
SDN, …) and heterogeneous service actors
Separate the network and service activities to
manage heterogeneous dynamics
Operation excellence: automate processes
and transform
Provide the best client experience through
operational excellence, network
infrastructure and long term technologies
mutualized investments Keep bargaining
power against GAFAs3 and vendors through
consolidation
Positioning on services that reinforce the
width of the client relationship (content,
bank, AI, e-commerce…)
Carry the best services and assistance
experiences for clients
The virtual telco The engineer strikes back
The new wholesale truth A vendor brand
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Where does the difference lie? Digital leaders outperform digital wannabes in these core business areas.
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**
Top Digital Benchmark Average Telco Digital Maturity
Telcos have historically been great at making technological advancements while there is a lot to learn and adapt from other nimble and digital native players who generally come from other adjacent industries like e-commerce, media and OTT
CustomerCulture Operations Strategy Technology
10Copyright © 2019 Deloitte (M.E.). All rights reserved. tmforum Digital Transformation Middle East – User Centric Business Transformation
Strategizing to a digital future
11Copyright © 2019 Deloitte (M.E.). All rights reserved. tmforum Digital Transformation Middle East – User Centric Business Transformation
How does an organization become digital? Becoming a digital organization is highly intentional.
A HEAD START
HOW DIGITAL YOU ARE TODAY
It’s critical to understand your level of digital organizational maturity today so you know where to begin and what to leverage
HOW DIGITAL YOU NEED TO BECOME
Digital transformation is a journey. Recognizing where you need to get to in 6, 12, and 18 months helps prioritize focus, energy and investments
HOW DO YOU GET THERE
Change happens more rapidly when you infuse digital traits into the existing legacy environment – your organizational DNA
Exploring DigitalLeverage traditional technologies to automate existing capabilities. Dabbling with digital. No change to the organization.
Doing DigitalLeverage digital technologies to extend capabilities, but still largely focused around same business, operating, and customer models.
Becoming DigitalLeverage digital technologies – becoming more synchronized and less siloed – with
more advanced changes to current business, operating, and customer models.
Being DigitalBusiness, operating, and customer
models are optimized for digital and profoundly different from prior business,
operating, and customer models.
The Digital Journey…….
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Where to start? Organizations must first assess how digitally mature they are before taking any initiatives to transform.
Value Add
Analyze current digital maturity holistically
Set clear targets for transformation, short, medium and long term
Track and measure maturity progress through digital index
Digital Maturity is increased through strategic digital initiatives that come out of DMA
Run strategic digital initiatives by implementing a digital operating model
Strategy
• 5 Key Dimensions• 28 Capability Domains• 170+ Criteria• Easily used enterprise-wide• Industry-agreed model• Benchmark capable
CustomersOperations
TechnologyCulture, people,
organization
Digital Maturity Framework Purpose of the Digital Maturity Model
Foster Innovation
Personalized customer
experience
Operational excellence
Digital technology architecture
Enablement and encouragement
AgilityDigital culture &
ownershipData
harmonization
Targeted Marketing &
Products
Digital governance
13Copyright © 2019 Deloitte (M.E.). All rights reserved. tmforum Digital Transformation Middle East – User Centric Business Transformation
Why is a customer-centric approach required? Technological innovation & economic trends have empowered the customer.
Digital Operating ModelClassic Telco Operating Model
Op
era
tin
g
Mo
de
l L
ay
ers
Legacy telco operating model’s main shortcoming is hat it never starts with customer in mind. The model is built layer on top of layer with weak interlinkages
Customer
experience
Flexible
organization
Innovation
1
5
4
3
2
Partnerships & alliances6
3
2
5
6
1
4
Customer-centric strategy & experience
E2E processes facelifted by robotics, automation, and AI
IT & Network infrastructure enabling agile business delivery
Organizational structures adapt to new customer-centric processes
Continues effort to innovate business and offerings
Partnerships and alliances evolve business delivery
Digital operating models have evolved to take digital intent telcos through a customer-led operationalization approach and building the business around the customer
14Copyright © 2019 Deloitte (M.E.). All rights reserved. tmforum Digital Transformation Middle East – User Centric Business Transformation
Who runs the digital transformation initiatives? The role of DVO in the Digital Transformation Lifecycle is to orchestrate the transformation journey.
Development Scaling Sourcing Blueprint
Digital FactoryDigitisation – Initiation
Strategy articulation
Consult key stakeholders
Determine governance structure
Secure funding
Prioritize initiatives and develop roadmap
Outside-In
Change
Management
Digital
Maturity
Design & Assurance
Value
Proposition
Partner Ecosystem
Technology & Platforms
Ideas In
Minimum viable
product
Business
case
Executive
approval
Funding &
Implementation
Track &
measure
benefits
Concept to MVP MVP to Reality
Predefined
annual
budget
Custodian Telco’s Digital
Ecosystem
Digital maturity
progression
Flexible delivery models
Contribution to digital funding
Digital leadership
across enterprise
Pioneer Differentiated
service offerings
DVO orchestrates
Legend
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The Middle East Digital Landscape & Evolving Digital Telco
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••
•
•
•••
How the Middle Eastern nations are taking the leap into being more digital? National visions cascade down into digital initiatives across the countries.
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Cloud computing
Augmented/virtual reality
Robotics
Autonomous vehicles
Blockchain
Cyber security
IoT
Artificial intelligence
3D printing
Analytics/Big Data
Sensor technology
Future of mobility
Classroom of the future
Smart
tourismSmart cities
Rise of robot & drone armies
IoT in defense
Smart governments
Public Sector Trends
ICT Technologies
High
Low
High
Low
Security 2.0
Sustainable consumption
Digital customer
Smart environment data & devices
Integratednational platform
5G, 4G & 3G
SDN/ NFV
Digital twins
LIFI
Next gen. care
Social
Unnamed aerial Vehicles
Healthcare data revolution
Patient-powered healthcare
School Systems 2.0
Tomorrow’s curriculum
POL
OTN
Predictive crowd flows
Real-time location services
Non-exhaustive
National Transformation platform
High
Impact
High
Focus areas across in Middle East Digital Arena … …translating into 6 Digital Themes in the Middle East
What are the key sectors being targeted? Areas of focus are assessed, prioritized, and kicked-off.
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Digital
Telco
How can governments overcome their transformation challenges 1 ? The digital telco can fill the gap.
Legend
1 The interventions have been proposed for a subset of challenges, Deloitte Research & Analysis 2018
19Copyright © 2019 Deloitte (M.E.). All rights reserved. tmforum Digital Transformation Middle East – User Centric Business Transformation
How can future digital telcos deliver digital transformations? By acting as the solution enablers in the ecosystem.
Technologies
Ecosystem
Cloud
Predictive Analytics/ Big Data
Integrated PlatformsSDN
IoT
NextGenSecurity
AI
Robotics
AR/VR
3D Printing
Sensors
Blockchain
National
government
State
leadership
Businesses &
citizens
Technology
Professional
Services Future
Digital
Telco
Relationship with digital telcoLegend
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Copyright © 2019 Deloitte & Touche (M.E.). All rights reserved. Member of Deloitte Touche Tohmatsu Limited
Further informationHasan Iftikhar
Director - Consulting
Contact: [email protected]
21 | Copyright © 2017 Deloitte Development LLC. All rights reserved.