MARIAM ABDULLAHI SAP Africa Telecommunications Industry Lead. From Telcos to Digital Service Providers Enabling Digital Life

Transcription

1 MARIAM ABDULLAHI SAP Africa Telecommunications Industry Lead From Telcos to Digital Service Providers Enabling Digital Life

2 Agenda Global Technology Trends Impact of Digital Disruption SAP Strategy for the Telecommunications Industry

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4 Change is happening faster 75 YEARS 38 YEARS 13 YEARS 4 YEARS 3.5 YEARS 3 YEARS 50 DAYS 35 DAYS 19 DAYS ON ANDROID ALONE TIME TO REACH 50 MILLION USERS 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 5

5 Disruption is Everywhere World s largest trading network owns no inventory World s largest taxi company owns no taxi s Digital Disruption comes fast and is happening everywhere Largest accommodation provider owns no real estate Largest phone company owns no infrastructure World s most valuable retailer owns no inventory World s largest movie house owns no cinemas Largest music company owns no music Worlds biggest book (& other) distributor owns no books 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 6

6 Global Technology Trends 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 7

7 Leading Digital Trends The World is Changing Quickly Digital Technologies are Everywhere Digital Technologies are Here to Stay Mobile Hyper Connectivity Super Computing / In-Memory Cloud Big Data Machine Learning Social IoT 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 8

8 The Impact of Digital Disruption CAGR : Global fixed voice revenues -5.4% / mobile voice revenues - 7.0% Global FBB revenues 3% while mobile data revenues 10.6% Over 1.8 billion people subscribe to OTT voice services 62% of consumer watch online videos Customer behaviour Maturity & competition Technology Apps & internet based services remain most disruptive forces IoT dominates devices Growth pressure Running agile processes & operations Operational efficiencies Changing ecosystem Over $293.4bn lost to OTT VoIP globally by 2018 About 2.7bn OTT VoIP users by 2020 Ovum TMT intelligence informa Copyright Informa PLC Regulatory pressure Traffic growth Global fixed & mobile data traffic to treble by 2018 Global capex to grow at 0.4% CAGR SAP SE or an SAP affiliate company. All rights reserved. Public 9

9 Global Telco Subscriptions vs Africa Subscriptions Mobile Subscription CAGR By region (1) 20 Fastest Growing Markets by Subscription (1) African Telco Market leading the globe from a mobile subscription perspective with an expected growth rate of 7.4% from African Countries amongst the world s 20 fastest growing markets subscription wise (1) Ovum Global Mobile Market Outlook: SAP SE or an SAP affiliate company. All rights reserved. Public 10

10 Global Telco Revenues vs Africa Revenues Revenue CAGR Western Europe (1) Africa Revenues Forecast (2) Africa mobile market is still growing in total revenues Developed markets are facing high pressure on revenues. Telco market is maturing & Telcos are struggling to monitise 4G/LTE to face off OTTs Mobile Data Revenues continue to be a growth driver and revenues forecasted to triple by 2021 due to: On-going rollout of broadband N/Ws (many now 4G as well as 3G); Increasing smart devices affordability & changing user behaviour (1) Ovum Global Mobile Market Outlook: (2) Ovum 2017 Trends to watch MEA December SAP SE or an SAP affiliate company. All rights reserved. Public 11

11 Africa is a young continent A Digital; Mobile Continent? 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 12

12 Digital Disruption Strategies 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 13

13 Business Leader Challenges Looking for ways to disrupt & innovate their business How do we harness the benefits of these tech trends and digital explosion? How do we intimately engage with my customers and improve their experience? How do we innovate and stay ahead of the curve/competition? How do we get greater awareness and reach to bring in more customer and get larger share of wallet? How do we build a trusted talent pool that is engaged, empowered & enabled 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 14

14 Strategy to Combat Digital Disruption providers PaaS/SaaS/IaaS automation Mobile money Data brokers IoT services and more From Simple Communications Service Provider To Digital Service/Solution Provider 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 15

15 Telcos Must Respond by Offering Digital Services Most popular OTT services offered via Telco-OTT Partnerships (1H16) These services require high degree of personalization and demand low latencies and high bandwidths which must be delivered by CSPs networks Ovum TMT intelligence informa Copyright Informa PLC 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 16

16 Industries at SAP: Telco as Strategic Digital Enabler 2016 SAP SE SE or or an an SAP affiliate company. All All rights reserved. Public 17 17

17 SAP Telco Strategy 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 18

18 Two core themes guide our strategy Business1M odel Business Process Pe ople&work Customer Engagement Service Monetization Network Operations Mgmt Business models Digital Lifestyle Provider Business Cloud Service Provider Digital Transformation Catalyst 1. Digital transformation is an imperative Telcos need to re-imagine their business models, processes, and work Retail Excellence Financials Modernization Connected Supply Chain Data Broker 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 19

19 Two core themes guide our strategy Business1M odel Business Process Pe ople&work Financial Services Telecommunications Retail Media High Tech Sports & Entertainment Healthcare 1. Digital transformation is an imperative Telcos need to re-imagine their business models, processes, and work 2. Blurring Industry lines will create new opportunities Best practices transfer, seizing new opportunities 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 20

20 Samples Digital Service Provider Disruptors Reliance Jio Building the world s largest data network & crosses the 100M customer in 170 days Telefonica Spain spins off network assets in new company Telxius 02/10/2016 Orange to launch Mobile-only bank in 2017 Gearing up for the Cloud, AT&T tells its workforce to adapt with new training programs 01/05/ /13/ SAP SE or an SAP affiliate company. All rights reserved. Public 21

21 Digital Transformation Priorities Digital Boardroom Enable Operational Excellence Drive new Revenue Streams SAP Cloud Platform Connected Stadium Connected Car Margin Assurance Co-innovate Connected Transportation Safety 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 22

22 SAP Digital Business Framework Every company can develop a digital strategy across these 5 pillars: 1. Re-platform core business processes and bring together business process and analytics in real-time to be smarter, faster and simpler 2. Outcome based customer experience 3. Smarter and engaged workforce across all employees and contractors 4. Supplier collaboration to accelerate growth and innovation 5. Harness internet of things and big data to drive real-time insights and new business models 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 23

23 Enable Operational Excellence A digital core on premise or in the cloud Reinvented processes for higher performance Integration internally and externally Mobile first approach Instant, real-time insights for better decision making Empower business users with insights to act Leverage predictive insights 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 24

24 Enable Operational Excellence Building on a flexible, real-time platform The Real-Time Data Platform The Digital Platform to Drive Innovation Real-time decision making Faster time to market Accelerated reporting time Real-time operations Faster Insights New Business Models Extend Provide localized, personalized services Integrate Deliver microservices, API Business hub Build & Innovate New business models, open standards 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 25

25 Vision for Customer Experience DELIVER CONSISTENT, CONTEXTUAL AND RELEVANT EXPERIENCES REGARDLESS OF CHANNEL AND DEVICE.

26 SAP HYBRIS Simplifying & Unifying the Front web mobile In store/ branch contact center digital goods marketplace IoT social SMS/ notifications EXPERIENCE MANAGEMENT Search digital ads print SEAMLESS customer journey across all channels MARKETING COMMERCE BILLING SALES SERVICE DATA MANAGEMENT (CUSTOMER, PRODUCT) PLATFORM, INFRASTRUCTURE, INTEGRATION DIGITIZE END-TO-END CUSTOMER AND CONSUMER EXPERIENCE SINGLE VIEW of the customer INTEGRATED across sales, service, marketing and commerce EASY-TO-USE business tools to empower

27 SAP Big Data for Telecommunications Turning Big Data into Big Business value Digitization of Customer Experience Digitization of the Core Virtualization New Digital Business Connected Objects Customer Segmentation & Profiling Purchase Propensity Subscriber Profitability Scalable Architecture High Volume Data Ingestion Connected Car Digital Farming Marketing Predictive Analytics for Telco Margin Assurance HANA Vora Big Data Integrator Vehicle Insight 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 28

28 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 29

29 Co-Innovate SAP & Vodafone Big Data Margin Assurance The Industry Problem 1.5% Overall company average revenue loss 46% Average revenue recovery rate with current methods 100 s m Untapped revenue potential A Sample Challenge Vodafone Red Pensioner Disabled Student Laptop Hard to identify unprofitable subscribers 39,99-10,00-10,00-10,00-7,50 2,49 The Big Data Margin Assurance Solution Integrates with all Telco processes to optimize AMPU Identify more leakage faster with granular visibility Real-time insights and predictive capability to preempt leakage The ability to understand granular customer profitability specifically which customers are profitable or unprofitable and why, is a game-changer for our industry Thomas Holtmanns, Vodafone Director Finance Operations Central Europe and Global Process Owner Margin Assurance 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 30

30 Workforce Engagement A Talent Pool that is engaged, empowered & enabled Total Workforce Engagement Recruiting Social Collaboration Learning Performance Core HR HR Analytics A best-in-class Human Resource Management Suite A Vendor Management Systems to optimize contingent workforce management 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 33

31 SAP Business Networks Enable Telcos to Run Simple & Be Agile Join A Network of 1.9 M Businesses Trading Eu 800 M in B2B Commerce Annually CONNECT TO THE WORLD S LARGEST B2B NETWORK TO REDUCE COST IN ALL YOUR PURCHASING CATEGORIES An SAP Company Contingent Labor & Services Indirect & Direct & Supply Chain An SAP Company Travel & Expenses Simplify Multi-Enterprise Integration Automate Business Collaboration Gain Commerce Insights Innovate Across Value Chain 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 34

32 Value Map 2017 for Telecommunications (see all details on sap.com/solution Explorer - Telecommunications) Customer Engagement and Commerce Revenue and Margin Optimization Operational Excellence Internet of Things Contextual Marketing Revenue Management Store Commerce IoT Foundation Services Smarter Selling Margin Assurance Digital Logistics IoT Edge Omnichannel Commerce and Agile Billing Fraud Prevention Asset Operations and Maintenance IoT Insights Customer Service Excellence IFRS Compliance Human Resources Core Human Resources and Payroll Talent Management Time and Attendance Management Human Capital Analytics Finance Financial Planning and Analysis Accounting and Financial Close Treasury Management Finance Operations Governance, Risk, and Compliance for Finance Core industry priorities Cross-enterprise supporting priorities Technology platform priorities Procurement Collaborative Sourcing and Contract Management Operational Purchasing Guided End-User Buying Supplier Management Inventory and Basic Warehouse Management External Workforce Management Invoice and Payables Management Procurement Analytics Platform and Technology Analytics Application Platform and Infrastructure Data Management IT Management Security Software 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 35

33 SAP Powering the Telecommunications Digital Transformation Journey 94% of the telecommunications companies in the Forbes Global 2000 are SAP customers SAP SE or an SAP affiliate company. All rights reserved. Public 36

34 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 37

35 Contact information: Thank you Mariam Abdullahi SAP Africa Telecommunication Lead