accenture consumerization new world business opportunity telcos

7/30/2019 Accenture Consumerization New World Business Opportunity Telcos

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Consumerization andthe New World o

Business Opportunityor TelcosBy Montgomery Hongand Christopher Hinitt



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.



Consumerization and the New World o Business Opportunity or Telcos 1



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




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




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



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.


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.



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.




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

[email protected] or

Christopher Hinitt at

[email protected].

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.

http://accenture.com/customer-operations







