Broadsoft. Communications Future: It s going to be cloudy
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1 #EVSAMS17 Broadsoft Communications Future: It s going to be cloudy Copyright Cavell Group 1
2 COMMUNICATIONS FUTURE: IT S GOING TO BE CLOUDY Perspective from BroadSoft Craig Decker Managing Director, EMEA BroadSoft, Inc.
3 BROADSOFT PERSPECTIVE Current market environment requires fast change Significant challenges and opportunities Only those who are ready will succeed 3
4 THE WORLD HAS CHANGED All cloud market innovators and leaders 4
5 THEY COMMUNICATE DIFFERENTLY 2.5B global customers under 25 Online 315 mins./day Use social media for customer service Mobile only internet access 2B users making digital payments via mobile by 2019 Mobile extends their time online by 63% 5
6 THEY LIVE AND WORK THROUGH APPS 6
7 THEY ARE ALWAYS MOBILE AND CONNECTED Key take-away: Millennials are digital natives who expect to work and collaborate digitally and when mobile 7
8 HOW TELECOM COMPANIES CAN WIN IN A DIGITAL REVOLUTION 1. Reinvent the core 2. Pursue adjacencies 3. Build talent and capabilities 4. Revamp IT 5. Start with the customer and work back 8 Source: McKinsey
9 THE STRATEGY FOR GROWTH Three pillars Slim Core 1 Adjacency 2 Journey 3 Develop a super slim, agile core Increase revenues 30% Reduce operating costs 30-70% Pursue adjacent markets Focus on B2B model Choose disruptive, natural up-sells Focus on the customer journey What would an ideal journey look like? What processes are needed? 9
10 ALL THE WINNERS ARE IN THE CLOUD World s largest taxi company owns no taxis Largest accommodation provider owns no real estate World s most valuable retailer has no inventory Most popular media owner creates no content Fastest run banks have no actual money World s largest movie house owns no cinemas Largest software vendors don't write the apps Biggest music company owns no music 10
11 CLOUD TRANSFORMATION IS UNDERWAY Cloud market projected to surpass CPE shipments by 2020
12 THE STRATEGY FOR GROWTH Three pillars Slim Core 1 Adjacency 2 Journey 3 Develop a super slim, agile core Increase revenues 30% Reduce operating costs 30-70% Pursue adjacent markets Focus on B2B model Choose disruptive, natural up-sells Focus on the customer journey What would an ideal journey look like? What processes are needed? 12
13 Adjacency 2 HIGH GROWTH, LOW PENETRATION MARKETS UCaaS Growth Rate CCaaS Growth Rate Team Collaboration Growth Rate New Market Category 15.1B 24.9B B 14.7B N.M. 2.3B
14 Adjacency 2 MORE SILOS IS NOT THE ANSWER With you in my life, I ve received exponentially more messages than I ever have before. And while it s been awesome to have such a connection with you, it has been absolutely brutal on my productivity. Samuel Hulick, talking about Slack Full blog: UserOnboard 14
15 THE CCaaS OPPORTUNITY IS HUGE cloud 8% premise 92% 2015 Contact Center Installed Base $5B 2015 Annual Revenue 25% CAGR $15B 2020 Annual Revenue 15
16 CLOUD WILL DRIVE CONTACT CENTER GROWTH Market Penetration Will Increase Makes affordable for SMB segments Omni-channel and advanced application are now manageable for SMB and mid-market segments On-demand flexibility supports peak periods and remote part-time agents Analytics drive superior customer engagement and reduce contact center expenses 16
17 THE STRATEGY FOR GROWTH Three pillars Slim Core 1 Adjacency 2 Journey 3 Develop a super slim, agile core Increase revenues 30% Reduce operating costs 30-70% Pursue adjacent markets Focus on B2B model Choose disruptive, natural up-sells Focus on the customer journey What would an ideal journey look like? What processes are needed? 17
18 DIGITAL TRANSFORMATION We are in the first inning have a digital strategy or plan in place 90% are funding and executing against a digital plan of CEOs believe the digital economy will have a major impact on their industry All stats above sourced from Datum Strategy, 2016 describe themselves as fully digital 18
19 KNOW YOUR CUSTOMER S JOURNEY Action Need acknowledged, search begins Need definition, build vendor list Vendor evaluation and selection Relationship begins, continuous evaluation Need Education, recommendations Requirements list, vendor knowledge Best match of solution to need Need fulfilled, great support and trust Our Goal Brand awareness Brand Preference Close the deal Retention up-sell and of the way down the customer journey before 70% they contact vendors 68% prefer premium digital content 19
20 B2B BUYING IS PERSONAL Source: CEB Advisory Team research
21 B2B BUYING IS MORE EMOTIONAL THAN B2C Source: CEB Advisory Team research
22 Buyer Sales Cycle Collaboration Contact Center CEBP SEGMENT, VERTICAL AND PERSONA-BASED MARKETING Segment & Seat Size 2016 Business Seats (WW*) Biz Decision Process Unified Comms Priorities Large Enterprise Mid-Market to seats 87M 129MM IT / Channel Strategic / Mo SMB 100 to seats 114M Micro-SMB 3 to 10 Prosumer 1 to 3 117M Owner / Decision- Maker Tactical / Immediate Mobile UC Targeted messaging, collateral and marketing campaigns Focus on target business and persona marketing needs Sources: MZA
23 BROADSOFT NEW BUSINESS MODEL SERVICE PROVIDERS SMB to LARGE ENTERPRISE SELL THRU 2. Strengthen GTM/SEI to launch/improve sell-thru at service providers we are becoming their digital agency VERTICALS 1. Articulate our clear product positioning and hero product to enforce market leadership in channel 3. Drive buyer's journey by becoming part it Brand + content + lead gen. + try & buy + social + advocacy, etc. PORTFOLIO
24 BroadSoft s partners become a family of great service providers BroadSoft markets the brand, creating awareness and relevance It adds to the service provider brand, does not distract or compete Customers ask for the Powered by BroadSoft apps provided by partners 24 BroadSoft Digital A digital customer journey from acquisition, through implementation and renewal BroadSoft, Inc. Proprietary & Confidential, Do Not Copy, Duplicate or Distribute.
25 BroadSoft, Inc. Proprietary, Do Not Duplicate or Distribute. THANK YOU
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