Si.mobilImpact of Digital on Telco Business Model

David Rozman | 07.10.2014

1. WHAT IS A BUSINESS MODEL?

A simplified expression of company strategy on how to make money

Business Model

WHAT IS A BUSINESS MODEL?

Key Business Model Elements

WHAT IS A BUSINESS MODEL?

COST SIDE VALUE SIDE

1. Value Proposition

4. Customer Relationship

2. Customers

5. Revenue3. Channels

9. Costs 6. Key Resources

8. Key Partners

7. Key Activities

Si.mobil Business Model

WHAT IS A BUSINESS MODEL?

Automation where possible

Personal Assistance

Key Accounts

Residential pre &post-paid Customers

BusinessCustomers

Simple & Carefree Communication

Services

Voice and Data Fees Other Revenues

Marketing & Sales

Channel Operations

Network & IT Ops

Marketing & SalesChannel Costs

Network OperationsGeneral and Administrative exp.

HW Vendors

Regulatory Agencies

Franchises

Workforce & Employees Knowhow

Physical, IT & Network Infrasturcture

Shops & Call Center

Digital

2. HOW CAN DIGITAL BENEFIT SI.MOBIL BUSINESS MODEL

Value Proposition

Customer Relationship

Customers

ChannelsCosts

Impact of Digital on Si.mobil Business Model

2. HOW CAN DIGITAL BENEFIT SI.MOBIL BUSINESS MODEL

Automation where possible

Personal Assistance

Key Accounts

Residential pre &post-paid Customers

BusinessCustomers

Simple & Carefree Communication

Services

Voice and Data Fees Other Revenues

Marketing & Sales

Channel Operations

Network & IT Ops

Marketing & SalesChannel Costs

Network OperationsGeneral and Administrative exp.

HW Vendors

Regulatory Agencies

Franchises

Workforce & Employees Knowhow

Physical, IT & Network Infrasturcture

Shops & Call Center

Digital

⬆Automation

⬇Channel Costs

⬇Channel Operations

⬇Workforce ⬆︎Employees Knowhow

⬆Digital

24/7 & Wherever Access to Services

⬇Personal Assistance

⬇Key Accounts

⬇Shops & Call Center

Example of GOV.UK cost per transactions calculation

Channel Costs can be significantly lowered by shifting transactions to digital channels2. HOW CAN DIGITAL BENEFIT SI.MOBIL BUSINESS MODEL

Cost per transaction =

Total cost of providing the service without startup costs

Total number of completed transactions

Cost per digital transaction =

Total cost of providing the digital service without startup costs

Total number of transactions completed digitally

Digital vs. non digital transactions = 20x

cheaperthan phone

30x cheaper

than postal

50x cheaper than face-to-face

https://www.gov.uk/government/publications/government-digital-strategy/government-digital-strategy https://www.gov.uk/service-manual/measurement/cost-per-transaction.html

For desired effect digital take-up should be increased across whole customer lifecycle

2. HOW CAN DIGITAL BENEFIT SI.MOBIL BUSINESS MODEL

Buy Start-Up Get Support Use & Pay Renew or LeaveExplore

⥁ IMPACT ON BUSINESS MODEL - Company should addopt to the digital first princip as online is

most important touchpoint prior purchase - Enablig eSales as more customers want to buy online is also

opportunity to lower channel costs - Digital can enable efficient on-boarding experince - Call volumes can be deflected with eHelp and eCare - eBill can be more convenient & up to 8x cheaper then paper bill - Online is efficient & convenient for contract renewals

↑ KEY ACTIVITES - Define Digital Strategy - Data Driven Decisioning & Optimisation - Validate user experience & remove choice noise to simplify design - Embrace responsive design - Digital styleguide to ensure UX consistency, FTM and reduce costs - Manage content semi-independently for FTM - Optimise site for SEO & fast page loads - Hire digital experts and invest in training

↑ KEY RESOURCES & PARTNERS - Employees knowhow - Centralized & customer centric IT infrastructure - Cloud solutions and specialized agnecies

For desired effect digital take-up should be increased across whole customer lifecycle

2. HOW CAN DIGITAL BENEFIT SI.MOBIL BUSINESS MODEL

Buy Start-Up Get Support Use & Pay Renew or LeaveExplore

⥁ IMPACT ON BUSINESS MODEL - Company should addopt to the digital first princip as online is

most important touchpoint prior purchase - Enablig eSales as more customers want to buy online is also

opportunity to lower channel costs - Digital can enable efficient on-boarding experince - Call volumes can be deflected with eHelp and eCare - eBill can be more convenient & up to 8x cheaper then paper bill - Online is efficient & convenient for contract renewals

↑ KEY ACTIVITES - Define Digital Strategy - Data Driven Decisioning & Optimisation - Validate user experience & remove choice noise to simplify design - Embrace responsive design - Digital styleguide to ensure UX consistency, FTM and reduce costs - Manage content semi-independently for FTM - Optimise site for SEO & fast page loads - Hire digital experts and invest in training

↑ KEY RESOURCES & PARTNERS - Employees knowhow - Centralized & customer centric IT infrastructure - Cloud solutions and specialized agnecies

For desired effect digital take-up should be increased across whole customer lifecycle

2. HOW CAN DIGITAL BENEFIT SI.MOBIL BUSINESS MODEL

Buy Start-Up Get Support Use & Pay Renew or LeaveExplore

⥁ IMPACT ON BUSINESS MODEL - Company should addopt to the digital first princip as online is

most important touchpoint prior purchase - Enablig eSales as more customers want to buy online is also

opportunity to lower channel costs - Digital can enable efficient on-boarding experince - Call volumes can be deflected with eHelp and eCare - eBill can be more convenient & up to 8x cheaper then paper bill - Online is efficient & convenient for contract renewals

↑ KEY ACTIVITES - Define Digital Strategy - Data Driven Decisioning & Optimisation - Validate user experience & remove choice noise to simplify design - Embrace responsive design - Digital styleguide to ensure UX consistency, FTM and reduce costs - Manage content semi-independently for FTM - Optimise site for SEO & fast page loads - Hire digital experts and invest in training

↑ KEY RESOURCES & PARTNERS - Employees knowhow - Centralized & customer centric IT infrastructure - Cloud solutions and specialized agnecies

For desired effect digital take-up should be increased across whole customer lifecycle

2. HOW CAN DIGITAL BENEFIT SI.MOBIL BUSINESS MODEL

Buy Start-Up Get Support Use & Pay Renew or LeaveExplore

⥁ IMPACT ON BUSINESS MODEL - Company should addopt to the digital first princip as online is

most important touchpoint prior purchase - Enablig eSales as more customers want to buy online is also

opportunity to lower channel costs - Digital can enable efficient on-boarding experince - Call volumes can be deflected with eHelp and eCare - eBill can be more convenient & up to 8x cheaper then paper bill - Online is efficient & convenient for contract renewals

↑ KEY ACTIVITES - Define Digital Strategy - Data Driven Decisioning & Optimisation - Validate user experience & remove choice noise to simplify design - Embrace responsive design - Digital styleguide to ensure UX consistency, FTM and reduce costs - Manage content semi-independently for FTM - Optimise site for SEO & fast page loads - Hire digital experts and invest in training

↑ KEY RESOURCES & PARTNERS - Employees knowhow - Centralized & customer centric IT infrastructure - Cloud solutions and specialized agnecies

For desired effect digital take-up should be increased across whole customer lifecycle

2. HOW CAN DIGITAL BENEFIT SI.MOBIL BUSINESS MODEL

Buy Start-Up Get Support Use & Pay Renew or LeaveExplore

⥁ IMPACT ON BUSINESS MODEL - Company should addopt to the digital first princip as online is

most important touchpoint prior purchase - Enablig eSales as more customers want to buy online is also

opportunity to lower channel costs - Digital can enable efficient on-boarding experince - Call volumes can be deflected with eHelp and eCare - eBill can be more convenient & up to 8x cheaper then paper bill - Online is efficient & convenient for contract renewals

↑ KEY ACTIVITES - Define Digital Strategy - Data Driven Decisioning & Optimisation - Validate user experience & remove choice noise to simplify design - Embrace responsive design - Digital styleguide to ensure UX consistency, FTM and reduce costs - Manage content semi-independently for FTM - Optimise site for SEO & fast page loads - Hire digital experts and invest in training

↑ KEY RESOURCES & PARTNERS - Employees knowhow - Centralized & customer centric IT infrastructure - Cloud solutions and specialized agnecies

For desired effect digital take-up should be increased across whole customer lifecycle

2. HOW CAN DIGITAL BENEFIT SI.MOBIL BUSINESS MODEL

Buy Start-Up Get Support Use & Pay Renew or LeaveExplore

⥁ IMPACT ON BUSINESS MODEL - Company should addopt to the digital first princip as online is

most important touchpoint prior purchase - Enablig eSales as more customers want to buy online is also

opportunity to lower channel costs - Digital can enable efficient on-boarding experince - Call volumes can be deflected with eHelp and eCare - eBill can be more convenient & up to 8x cheaper then paper bill - Online is efficient & convenient for contract renewals

↑ KEY ACTIVITES - Define Digital Strategy - Data Driven Decisioning & Optimisation - Validate user experience & remove choice noise to simplify design - Embrace responsive design - Digital styleguide to ensure UX consistency, FTM and reduce costs - Manage content semi-independently for FTM - Optimise site for SEO & fast page loads - Hire digital experts and invest in training

↑ KEY RESOURCES & PARTNERS - Employees knowhow - Centralized & customer centric IT infrastructure - Cloud solutions and specialized agnecies

For desired effect digital take-up should be increased across whole customer lifecycle

2. HOW CAN DIGITAL BENEFIT SI.MOBIL BUSINESS MODEL

Buy Start-Up Get Support Use & Pay Renew or LeaveExplore

⥁ IMPACT ON BUSINESS MODEL - Company should addopt to the digital first princip as online is

most important touchpoint prior purchase - Enablig eSales as more customers want to buy online is also

opportunity to lower channel costs - Digital can enable efficient on-boarding experince - Call volumes can be deflected with eHelp and eCare - eBill can be more convenient & up to 8x cheaper then paper bill - Online is efficient & convenient for contract renewals

↑ KEY ACTIVITES - Define Digital Strategy - Data Driven Decisioning & Optimisation - Validate user experience & remove choice noise to simplify design - Embrace responsive design - Digital styleguide to ensure UX consistency, FTM and reduce costs - Manage content semi-independently for FTM - Optimise site for SEO & fast page loads - Hire digital experts and invest in training

↑ KEY RESOURCES & PARTNERS - Employees knowhow - Centralized & customer centric IT infrastructure - Cloud solutions and specialized agnecies

3. KEY ACTIVITES

Key Activities

For desired effect digital take-up should be increased across whole customer lifecycle

3. KEY ACTIVITES, RESOURCES & PARTNERS

Buy Start-Up Get Support Use & Pay Renew or LeaveExplore

WHAT WHO HOW HOW WELL

activities peopleprocesses & technology

KPI’s &targets

⥁ IMPACT ON BUSINESS MODEL - Company should addopt to the digital first princip as online is

most important touchpoint prior purchase - Enablig eSales as more customers want to buy online is also

opportunity to lower channel costs - Digital can enable efficient on-boarding experince - Call volumes can be deflected with eHelp and eCare - eBill can be more convenient & up to 8x cheaper then paper bill - Online is efficient & convenient for contract renewals

↑ KEY ACTIVITES - Define Digital Strategy - Data Driven Decisioning & Optimisation - Validate user experience & remove choice noise to simplify design - Embrace responsive design - Digital styleguide to ensure UX consistency, FTM and reduce costs - Manage content semi-independently for FTM - Optimise site for SEO & fast page loads - Hire digital experts and invest in training

↑ KEY RESOURCES & PARTNERS - Employees knowhow - Centralized & customer centric IT infrastructure - Cloud solutions and specialized agnecies

For desired effect digital take-up should be increased across whole customer lifecycle

3. KEY ACTIVITES, RESOURCES & PARTNERS

Buy Start-Up Get Support Use & Pay Renew or LeaveExplore

⥁ IMPACT ON BUSINESS MODEL - Company should addopt to the digital first princip as online is

most important touchpoint prior purchase - Enablig eSales as more customers want to buy online is also

opportunity to lower channel costs - Digital can enable efficient on-boarding experince - Call volumes can be deflected with eHelp and eCare - eBill can be more convenient & up to 8x cheaper then paper bill - Online is efficient & convenient for contract renewals

↑ KEY ACTIVITES - Define Digital Strategy - Data Driven Decisioning & Optimisation - Validate user experience & remove choice noise to simplify design - Embrace responsive design - Digital styleguide to ensure UX consistency, FTM and reduce costs - Manage content semi-independently for FTM - Optimise site for SEO & fast page loads - Hire digital experts and invest in training

↑ KEY RESOURCES & PARTNERS - Employees knowhow - Centralized & customer centric IT infrastructure - Cloud solutions and specialized agnecies

2x

For desired effect digital take-up should be increased across whole customer lifecycle

3. KEY ACTIVITES, RESOURCES & PARTNERS

Buy Start-Up Get Support Use & Pay Renew or LeaveExplore

⥁ IMPACT ON BUSINESS MODEL - Company should addopt to the digital first princip as online is

most important touchpoint prior purchase - Enablig eSales as more customers want to buy online is also

opportunity to lower channel costs - Digital can enable efficient on-boarding experince - Call volumes can be deflected with eHelp and eCare - eBill can be more convenient & up to 8x cheaper then paper bill - Online is efficient & convenient for contract renewals

↑ KEY ACTIVITES - Define Digital Strategy - Data Driven Decisioning & Optimisation - Validate user experience & remove choice noise to simplify design - Embrace responsive design - Digital styleguide to ensure UX consistency, FTM and reduce costs - Manage content semi-independently for FTM - Optimise site for SEO & fast page loads - Hire digital experts and invest in training

↑ KEY RESOURCES & PARTNERS - Employees knowhow - Centralized & customer centric IT infrastructure - Cloud solutions and specialized agnecies

For desired effect digital take-up should be increased across whole customer lifecycle

3. KEY ACTIVITES, RESOURCES & PARTNERS

Buy Start-Up Get Support Use & Pay Renew or LeaveExplore

⥁ IMPACT ON BUSINESS MODEL - Company should addopt to the digital first princip as online is

most important touchpoint prior purchase - Enablig eSales as more customers want to buy online is also

opportunity to lower channel costs - Digital can enable efficient on-boarding experince - Call volumes can be deflected with eHelp and eCare - eBill can be more convenient & up to 8x cheaper then paper bill - Online is efficient & convenient for contract renewals

↑ KEY ACTIVITES - Define Digital Strategy - Data Driven Decisioning & Optimisation - Validate user experience & remove choice noise to simplify design - Embrace responsive design - Digital styleguide to ensure UX consistency, FTM and reduce costs - Manage content semi-independently for FTM - Optimise site for SEO & fast page loads - Hire digital experts and invest in training

↑ KEY RESOURCES & PARTNERS - Employees knowhow - Centralized & customer centric IT infrastructure - Cloud solutions and specialized agnecies

For desired effect digital take-up should be increased across whole customer lifecycle

3. KEY ACTIVITES, RESOURCES & PARTNERS

Buy Start-Up Get Support Use & Pay Renew or LeaveExplore

⥁ IMPACT ON BUSINESS MODEL - Company should addopt to the digital first princip as online is

most important touchpoint prior purchase - Enablig eSales as more customers want to buy online is also

opportunity to lower channel costs - Digital can enable efficient on-boarding experince - Call volumes can be deflected with eHelp and eCare - eBill can be more convenient & up to 8x cheaper then paper bill - Online is efficient & convenient for contract renewals

↑ KEY ACTIVITES - Define Digital Strategy - Data Driven Decisioning & Optimisation - Validate user experience & remove choice noise to simplify design - Embrace responsive design - Digital styleguide to ensure UX consistency, FTM and reduce costs - Manage content semi-independently for FTM - Optimise site for SEO & fast page loads - Hire digital experts and invest in training

↑ KEY RESOURCES & PARTNERS - Employees knowhow - Centralized & customer centric IT infrastructure - Cloud solutions and specialized agnecies

For desired effect digital take-up should be increased across whole customer lifecycle

3. KEY ACTIVITES, RESOURCES & PARTNERS

Buy Start-Up Get Support Use & Pay Renew or LeaveExplore

⥁ IMPACT ON BUSINESS MODEL - Company should addopt to the digital first princip as online is

most important touchpoint prior purchase - Enablig eSales as more customers want to buy online is also

opportunity to lower channel costs - Digital can enable efficient on-boarding experince - Call volumes can be deflected with eHelp and eCare - eBill can be more convenient & up to 8x cheaper then paper bill - Online is efficient & convenient for contract renewals

↑ KEY ACTIVITES - Define Digital Strategy - Data Driven Decisioning & Optimisation - Validate user experience & remove choice noise to simplify design - Embrace responsive design - Digital styleguide to ensure UX consistency, FTM and reduce costs - Manage content semi-independently for FTM - Optimise site for SEO & fast page loads - Hire digital experts and invest in training

↑ KEY RESOURCES & PARTNERS - Employees knowhow - Centralized & customer centric IT infrastructure - Cloud solutions and specialized agnecies

For desired effect digital take-up should be increased across whole customer lifecycle

3. KEY ACTIVITES, RESOURCES & PARTNERS

Buy Start-Up Get Support Use & Pay Renew or LeaveExplore

⥁ IMPACT ON BUSINESS MODEL - Company should addopt to the digital first princip as online is

most important touchpoint prior purchase - Enablig eSales as more customers want to buy online is also

opportunity to lower channel costs - Digital can enable efficient on-boarding experince - Call volumes can be deflected with eHelp and eCare - eBill can be more convenient & up to 8x cheaper then paper bill - Online is efficient & convenient for contract renewals

↑ KEY ACTIVITES - Define Digital Strategy - Data Driven Decisioning & Optimisation - Validate user experience & remove choice noise to simplify design - Embrace responsive design - Digital styleguide to ensure UX consistency, FTM and reduce costs - Manage content semi-independently for FTM - Optimise site for SEO & fast page loads - Hire digital experts and invest in training

↑ KEY RESOURCES & PARTNERS - Employees knowhow - Centralized & customer centric IT infrastructure - Cloud solutions and specialized agnecies

For desired effect digital take-up should be increased across whole customer lifecycle

3. KEY ACTIVITES, RESOURCES & PARTNERS

Buy Start-Up Get Support Use & Pay Renew or LeaveExplore

⥁ IMPACT ON BUSINESS MODEL - Company should addopt to the digital first princip as online is

most important touchpoint prior purchase - Enablig eSales as more customers want to buy online is also

opportunity to lower channel costs - Digital can enable efficient on-boarding experince - Call volumes can be deflected with eHelp and eCare - eBill can be more convenient & up to 8x cheaper then paper bill - Online is efficient & convenient for contract renewals

↑ KEY ACTIVITES - Define Digital Strategy - Data Driven Decisioning & Optimisation - Validate user experience & remove choice noise to simplify design - Embrace responsive design - Digital styleguide to ensure UX consistency, FTM and reduce costs - Manage content semi-independently for FTM - Optimise site for SEO & fast page loads - Hire digital experts and invest in training

↑ KEY RESOURCES & PARTNERS - Employees knowhow - Centralized & customer centric IT infrastructure - Cloud solutions and specialized agnecies

For desired effect digital take-up should be increased across whole customer lifecycle

3. KEY ACTIVITES, RESOURCES & PARTNERS

Buy Start-Up Get Support Use & Pay Renew or LeaveExplore

⥁ IMPACT ON BUSINESS MODEL - Company should addopt to the digital first princip as online is

most important touchpoint prior purchase - Enablig eSales as more customers want to buy online is also

opportunity to lower channel costs - Digital can enable efficient on-boarding experince - Call volumes can be deflected with eHelp and eCare - eBill can be more convenient & up to 8x cheaper then paper bill - Online is efficient & convenient for contract renewals

↑ KEY ACTIVITES - Define Digital Strategy - Data Driven Decisioning & Optimisation - Validate user experience & remove choice noise to simplify design - Embrace responsive design - Digital styleguide to ensure UX consistency, FTM and reduce costs - Manage content semi-independently for FTM - Optimise site for SEO & fast page loads - Hire digital experts and invest in training

↑ KEY RESOURCES & PARTNERS - Employees knowhow - Centralized & customer centric IT infrastructure - Cloud solutions and specialized agencies

4. KEY RESOURCES & PARTNERS

Key Resources

Key Partners

For desired effect digital take-up should be increased across whole customer lifecycle

3. KEY ACTIVITES, RESOURCES & PARTNERS

Buy Start-Up Get Support Use & Pay Renew or LeaveExplore

⥁ IMPACT ON BUSINESS MODEL - Company should addopt to the digital first princip as online is

most important touchpoint prior purchase - Enablig eSales as more customers want to buy online is also

opportunity to lower channel costs - Digital can enable efficient on-boarding experince - Call volumes can be deflected with eHelp and eCare - eBill can be more convenient & up to 8x cheaper then paper bill - Online is efficient & convenient for contract renewals

↑ KEY ACTIVITES - Define Digital Strategy - Data Driven Decisioning & Optimisation - Validate user experience & remove choice noise to simplify design - Embrace responsive design - Digital styleguide to ensure UX consistency, FTM and reduce costs - Manage content semi-independently for FTM - Optimise site for SEO & fast page loads - Hire digital experts and invest in training

↑ KEY RESOURCES & PARTNERS - Employees knowhow - Centralized & customer centric IT infrastructure - Cloud solutions and specialized agencies

73% of European marketers believe they need to reinvent themselves to succeed with digital marketing

73%

Source: Adobe, 2014

For desired effect digital take-up should be increased across whole customer lifecycle

3. KEY ACTIVITES, RESOURCES & PARTNERS

Buy Start-Up Get Support Use & Pay Renew or LeaveExplore

⥁ IMPACT ON BUSINESS MODEL - Company should addopt to the digital first princip as online is

most important touchpoint prior purchase - Enablig eSales as more customers want to buy online is also

opportunity to lower channel costs - Digital can enable efficient on-boarding experince - Call volumes can be deflected with eHelp and eCare - eBill can be more convenient & up to 8x cheaper then paper bill - Online is efficient & convenient for contract renewals

↑ KEY ACTIVITES - Define Digital Strategy - Data Driven Decisioning & Optimisation - Validate user experience & remove choice noise to simplify design - Embrace responsive design - Digital styleguide to ensure UX consistency, FTM and reduce costs - Manage content semi-independently for FTM - Optimise site for SEO & fast page loads - Hire digital experts and invest in training

↑ KEY RESOURCES & PARTNERS - Employees knowhow - Centralized & customer centric IT infrastructure - Cloud solutions and specialized agencies

By 2017 the CMO will spend more on IT than the CIOSource: Gartner, 2013

For desired effect digital take-up should be increased across whole customer lifecycle

3. KEY ACTIVITES, RESOURCES & PARTNERS

Buy Start-Up Get Support Use & Pay Renew or LeaveExplore

⥁ IMPACT ON BUSINESS MODEL - Company should addopt to the digital first princip as online is

most important touchpoint prior purchase - Enablig eSales as more customers want to buy online is also

opportunity to lower channel costs - Digital can enable efficient on-boarding experince - Call volumes can be deflected with eHelp and eCare - eBill can be more convenient & up to 8x cheaper then paper bill - Online is efficient & convenient for contract renewals

↑ KEY ACTIVITES - Define Digital Strategy - Data Driven Decisioning & Optimisation - Validate user experience & remove choice noise to simplify design - Embrace responsive design - Digital styleguide to ensure UX consistency, FTM and reduce costs - Manage content semi-independently for FTM - Optimise site for SEO & fast page loads - Hire digital experts and invest in training

↑ KEY RESOURCES & PARTNERS - Employees knowhow - Centralized & customer centric IT infrastructure - Cloud solutions and specialized agencies

Si.mobil

Thank you

ROMI can be significantly improved with predictive models and personalised interaction

2. HOW CAN DIGITAL BENEFIT SI.MOBIL BUSINESS MODEL

Automation where possible

⬇Personal Assistance

⬇Key Accounts

Residential pre &post-paid Customers

BusinessCustomers

Simple & Carefree Communication

Services

Voice and Data Fees Other Revenues

Marketing & Sales

Channel Operations

Network & IT Ops

⬇Marketing & SalesChannel Costs

Network OperationsGeneral and Administrative exp.

HW Vendors

Regulatory Agencies

Franchises

Workforce & Employees Knowhow

Physical, IT & Network Infrasturcture

Shops & Call Center

Internet

⬆Automation

⬇Channel Costs

⬇Channel Operations

⬇Workforce ⬆︎Employees Knowhow

⬆Digital

⬆24/7 & Wherever Access to Services

⬆right offer to right person at right time