Telco digital transfomation view by Exacaster

1. Jolita Bernotiene I Sales Director
www.exacaster.com
Telecom industry
in focus

2. Technology is driving connectivity demand and increasing
volumes of information
• Ever since smartphones arrived the appetite for
connectivity has been growing exponentially
• The arrival of 5G promises a dramatic reduction in
the cost of 1 megabyte and aims to create a super
network that replaces wifi, traditional mobile, and
specialized networks such as those used for sensors.
• AI and Big Data technologies have matured and are
ready to hit the mainstream, promising new capabilities
to track, process and utilize information collected.
43
73
144
242
366
516
701
2015 2016 2017 2018e 2019e 2020e 2021e
‘000 petabytes (1 petabyte = 1m gigabytes)
Global mobile data traffic1
How to pay back the 5G investment
is a hot topic in the industry

3. Sha
Despite traffic growth
the telecoms has not
increased its economic
weight due to faster
expansion of digital
players
Sources: 1. Vodafone-full-annual-report-2018.
2. https://live.ft.com/Events/2018/FT-ETNO-Summit-2018?=&v=5850414205001
TELECOMS
The major competitors to telecoms
are global digital players:
• Messaging - Facebook (Whatsapp,
Messenger), weChat
• International calling - Skype
• Video on demand - Netflix
• Internet of things - Amazon Alexa
REST OF
INDUSTRY
Share of economic growth2
2005 - 2010 2011 - 2016
47%
4%
49%
42%
21%
37%

4. Telecoms are facing pricing pressures
and overall slowdown
116 85138126 101 129
443
329
186
292
199
207
Central, Eastern
Europe
Latin
America
Middle East,
Africa
Western
Europe
Emerging
Asia-Pacific
Developed
Asia-Pacific
North
America
395 435
CAGR
2008
2015
Telecommunications market size,
billion USD
Note: M2< revenue excluded
Source: Analysis Mason; McKinsey analysis
-4% -4%-4% +4% +7% +1%+1%

5. Seismic changes
have shaken up
consumption trends
• Mobiles are the most popular device
today
• Time spent on digital services is
constantly growing. More than 2
hours per day is dedicated to social
media alone
• Customer expectations have been
completely reshaped by the digital
players

6. What customers
expect from telecoms?
Effortless
purchase
Excellent e-care
with a choice of
support channels
A variety of emotionally
appealing services
Constant
connectivity
Seamless
experiences through
multiple services
Transparent pricing
and low cost

7. Inresponsetothesechangesthetelecomsmarket
isundergoingalongtermdigitaltransformation
Telecoms will face tough choices in the next 5-10 years
and will need to start their path to one of the five destinations:1
DP
OP
SDP
Service centric
Dumb Pipe
wholesaler
Outmoded Player
expensive and
non-competitive
Smart Digital Pipe
partnerships as key leverage
Integrated
Digital Services Provider
global scale and brand power
Services Player
no physical infrastructure,
pure OTT
Infrastructure centric
IDSP
SP

8. Native and partner product
portfolio
10 native
products
10 native
products
100’s of
cross-sell products
1000’s of digital
OTT products
Consumer ownership No Yes
Yes, multifold number
of touchpoints
Yes, flood of
touchpoints
Network infrastructure Yes Yes Yes Yes No
Business scale Local Local Local Global Global
Potential of business
impact
Decreasing or stable revenue
Up to 1280 bn USD value for the industry
during 2016-20251
Over1trillionUSDofpotentialliesoutsidethecoreservicesportfolio,
butonlythosetelecomswhochangewillbeabletoclaimit
DP OP SDP IDSP SP
Dumb
Pipe
Outmoded
Player
Smart Digital
Pipe
Integrated Digital
Services Provider
Services
Player
Source: 1. World Economic Forum 2017 Telecom Whitepaper: http://reports.weforum.org/digital-transformation/wp-
content/blogs.dir/94/mp/files/pages/files/white-paper-dti-2017-telecommunications.pdf

9. Telecomswillhavetocarryout10majortransformations
Transformation to execute Data Pipe Outmoded
Player
Smart Digital
Pipe
Integrated Digital
Services Provider
Services Player
1. Autonomous virtual infrastructure
2. Security centric
3. Data centric
4. Open platform API architecture
5. Digital organization and culture
6. Multiple business models
7. 360°omni channel customer
experience management
8. Multiple channels to market
9. Diverse portfolio of services
10. Open ecosystem of partners
O - Optional
R - Recommended
M - Mandatory
Digital transformation focusCost cutting focus
Source: 1. Transforming the Telco.
Martin Creaner. 2018. P159.
RR
R
RR
R
R
R
R
R
R
R
R R
R
OO
O
O
O O
R
O
M
M
M
M
M
M
MM M
M
M
M
M
M
M
M
MM M
M
M
M
M
M
M

10. Open
ecosystem
of partners
360°omni channel
CEM
Diverse
portfolio
of sevices
Data centricity
Source: 1. Transforming the Telco. Martin Creaner. 2018. P55. 2. http://reports.weforum.org/digital-
transformation/wp-content/blogs.dir/94/mp/files/pages/files/dti-executive-summary-20180510.pdf, P46.
4 transformations
that impact customer
experience
management
promise 750-840
billion USD of new
value creation1, 2

11. How to
understand the
real needs of
customers?
How to integrate
data regarding
products and
services
of digital
partners?
How to
detect the
opportunities
in a customer
base?
How to
use data to
enable excellent
experience and
e-care?
Data centricity creates the foundation for customer centricity
How to
automate
and optimize
recurring
decisions?

12. A single 360° customer view
enables omnichannel excellence
• Unify customer data
collected from different
siloed systems
• Match customers in
the same household by
uncovering their
relationships
• Leverage AI and
automation to build
hyper-personalized
offerings
Social Media
OTT
usage
Digital channels &
interactions
Purchase & billing
Traditional
service usage
Digital
service usage
Interests (content,
music, etc.)
Quality of
service
Location
Satisfaction
Customer
care data
Device
• Identify the customer
across multiple
business lines
• React to changes in a
customer’s profile in
real-time
• Speed up and
increase the volume of
experimentation
Tasks to be done:

13. Data and customer centric organizations can gain significantly
even within the scope of traditional services
Sources: 1.https://www.mckinsey.com/industries/telecommunications/our-insights/a-new-path-for-telco-customer-engagement
2.https://www.mckinsey.com/business-functions/mckinsey-analytics/our-insights/achieving-business-impact-with-data
Drive customer value by personalizing
outreach and cross-selling
increase in revenue
from cross-selling1
Drive customer value by reducing
churn and growing advocacy
absolute churn
reduction1
less marketing
budget2
2
Optimize spend by reducing
marketing costs3
1 15-30 %
15-40 %
5-10 %

14. Infotainment
services
Mobile
financial
services
Advertising,
e-commerce
Enterprise
cloud
TV and
video
service
Enterprise
mobility
Smart
home
Smart
city
Unified
communication
Security
services
Health
services
Digital
identity
services
While preparing to unlock revenue
potential from an ecosystem of partners
New challenges:
• Partner network
management
• Partner data
integration
• Sales & marketing of
partner services, while
widening of number of
use cases, adding new
customer types and
pricing models
Note: partners list is based on EY Global
telecommunications study: navigating
the road to 2020
How to respond to
customer needs across
hundreds of new
touchpoints?

15. Data centricity
360° omnichannel customer view
Diverse native and partner services
portfolio
Wehelptelecomsaccelerate
digitaltransformation
byenabling

16. Jolita Bernotiene
Sales Director
+370 636 06360
jolita@exacaster.com
Let‘s get in touch. We talk telco language!
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