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Dr Patrick Dixon Chairman Global Change Ltd http://www.globalchange.com Future Telecom how to create magic for your customers why existing business models are broken

Future of Telecom - how to create customer magic and why telco business models are broken

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Future of telecom, telcos, customer service, mobile, retail trends and related mobile payments technologies. Keynote by futurist Patrick Dixon

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Page 1: Future of Telecom - how to create customer magic and why telco business models are broken

Dr Patrick Dixon Chairman Global Change Ltd http://www.globalchange.com

Future Telecom how to create magic for your customers why existing business models are broken

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One word will dominate ALL

FUTURE !

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The future is aboutEMOTION

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ALL      BIG      TRENDS      ARE      RELATED  !

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MOST    DEBATES    ABOUT    TIMING  !

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300 million move to cities in China and 475 million to cities in Africa by 2030

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Growth of Middle Class in Africa 250m people - $2 trillion by 2040

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• Global economy never stopped growing

• Impact on real estate in London / UK

WGP  1980-­‐2013  (%,constant  prices)

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Vietnam  GDP  1985-­‐2011  

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>40%  WDP  by  2015� IMF - adjusted for Purchasing Power Parity

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$3.4  trillion    !

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$2.4  trillion    !

Reserves  

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Big strategies often overtaken by events

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World can change faster than you can hold a board meeting

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• Click  to  edit  Master  text  styles

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What  does  she  know?  What  can  she  see?  SoWware  bugs  Roaming  ?!  

Data  charges  ?!

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CONVERGENCE OR

DIVERGENCE !

All real innovation is about doing things differently

to serve customers better

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Innovation Magic is Hard to Find

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“It may be smart, innovative,

astonishing, but does it really create magic for the customer?”

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Creating magic for clients often costs

NOTHING !

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Why  old  telco  business  models  are  bust  

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Many  in  UK  no  longer  watch  live  TV

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95%  EU  bandwidth  soon  video  Days  of  charging  for  calls  /  SMS  nearly  over  

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Tele-­‐presence  20%  growth  pa      $4.5  billion    

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 BUT  video  is  unpopular  at  work

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Impact  on  bandwidth

•Global  demand  à  250  tbps  2016  •40-­‐100  Jmes  growth  in  next  10  years  •More  than  5%  global  power  >1  trn  KwHs  •=  1  billion  kw  heaters  for  an  hour

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How mobile will transform how people think

and feel about YOU

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Internet of Things !

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where is real benefit ?

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1.5m components tracked perfectly in Airbus supply chain

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Impact of retail and payments revolution on

vodafone future

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Global  e-­‐commerce  $1.5  trillion  2014  12%  of  all  retail  is  online  in  UK

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Mobile Magic Mobile influences $29bn of retail sales in UK 50% of all UK online sales are using mobile

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Fusion  On-­‐Off  line    social  media  

physical  friends

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�Click to edit Master text styles

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Online / physical worlds become one in Brazil

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50% research online - buy in store 40% research in store - buy online

89% want digital information in store !

Buy online - deliver to store Buy in store - deliver at home

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1  trillion  pages                            a  month        >50%  revenues  from  mobile  

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Why Google is under pressure and what it means for Vodafone

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"Perfection!,"  TripAdvisor Member, March 13, 2014 This was the most beautiful hotel. Delightful, perfect. We will stay again soon. "Terrible! TripAdvisor Member, Sept 10, 2013 Terrible place, rats, dirty, noisy - sick with food poisoning.

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Over  4000  road  hauliers  in  EU

1.3bn  home  delivered  e-­‐com  items  in  UK  a  year  (+12%  pa)

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Gold  standard:10am  orders  for  3pm  Delivery

10am orders for 3pm Delivery

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3000 Parcel Shops in UK in 12 months Chosen by up to 50% customers for

deliveries - help for local stores

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2m  businesses  use    SQUARE    in  US

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bitcoin

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Bitcoin  

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Google Mobile Wallet Monetise (mobile payments for banks) Square startup $3bn valuation

100  mobile  payment  plaborms  launched  in  last  5  years  but  how   many  met  real  CUSTOMER  needs  ?

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CUSTOMER  CHOICE   200  million  payments  globally !

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• Kenya  -­‐  17m  customers  • $9bn  pa  -­‐  >33%  GDP  • Tanzania  9m  people  • 35  nagon  links  via  HomeSend  Hub  

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1.7bn  phone  users  are  unbanked

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Savings,  payments,  loans,  insurance 400m  will  be  newly  banked  by  2015

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33%  of  US  smartphone  users  will  use  mobile  banking  in  2014

! 90% check balances 42% transfer between accounts 26% pay bills 49% users download bank apps

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• In  UK  alone....  • TransacCons  >£600  billion  pa    • Credit  card  debt  >£60bn  • Average  card  interest  rate  16%  • 2%  commissions  worth  £12bn

Payments

Doorway

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Free mobile devices calls / web / TV / games / pay Higher income model

2010                                                  2013                                  2015                                                    

TelcoBank Magic

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• Zettabyte = 1024 Exabytes Exabyte = 1024 Petabytes Petabyte = 1024 Terabytes Terabytes = 1024 Gigabytes

BIG Data

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has only one purpose which is to

create “invisible” magic for customers

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• Home • Work • Online • Offline • Sales • Entertain • Phone • Mobile • Chat • Social web • Mobile

ONE CUSTOMER

MAGIC

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• 90%  MicrosoW  R&D  

CLOUD•When  all  life  in  cloud,  then  device  and  connector  don’t  majer  

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Aramco - 30,000 computers hit - files lost

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So how does Vodafone make

money in future? !

Start with amazing customer experience today - partner to create new models tomorrow

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•Individuals •Family •Clients •Investors •Community

Making  Life  Bejer    !

Create  magic  for  your  customers

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Dr Patrick Dixon Chairman Global Change Ltd http://www.globalchange.com

Future Telecom how to create magic for your customers why existing business models are broken