Telco 2.0™ Executive Brainstorm

Created by
STL Partners Ltd

Platinum Partners

Ericsson

Gold Partners

aito

Aricent

Blyk

Nokia Siemens Networks

Oracle

Ubiquisys

 

Silver Partners

Aepona

Bronze Partners

Huawei

Juniper

Martin Dawes

Metaswitch

Wipro

In partnership with

Anaylys Mason

Arete Research

TelecomTV

TelecomTV

Day 2 - 10th November 2010: Consumer 2.0

Leveraging ‘personal information and digital identities’ to deepen customer relationships

Overview

Telco 2.0 is part of a team (which includes MIT, Harvard Berkman Center, Bain & Co and Invention Arts) working with the World Economic Forum on a project called “Re-Thinking Personal Information”. This has important ramifications for the development of relationships between organisations and consumers/end-users in the ‘Digital Economy’.

Most consumers and end-users seem willing to use and share their personal data with specific service providers in a controlled manner if they receive value from doing this and if they know their privacy is protected.  Equally, many of the new business model opportunities available to operators and other service providers require them to use information about their customers to generate such value.  How should the Telco community position itself in the information age and what are the challenges they face in developing strategies and an industry policy?

Format

The ‘Executive Brainstorm’ uses a special interactive process called ‘Mindshare’. This mixes short, specially briefed stimulus presentations, with newly commissioned market analysis, interactive technology to enable everyone’s voice to be heard and to support voting on key issues, and panel discussions with leading experts.

AGENDA

0800 Registration Open

0830 Welcome, Introductions & Warm Up

  • Chris Barraclough, MD & Chief Strategist, Telco 2.0 Initiative

0900 Becoming a better Telco retailer

A strong understanding of customers’ needs and behaviour is a core part of offline and online retailing.  It is also a prerequisite for developing a successful two-sided platform as value is created by managing information flows and transactions between two (or more) parties.  Players such as Tesco, Walmart and Amazon invest substantially in improving the retail experience for their customers through such things as peer reviews and personalisation.  To achieve a similar Telco experience, operators need to become experts in data mining and analysis.  How should they achieve this and what will the benefits look like?

Hypothesis being tested

  • Better retailing is important for operators seeking to generate more value from their core services and customers – voice, data, content for consumers, SMEs and enterprises;
  • Being a best-in-class retailer is a must for operators if they are to develop value for upstream customers that are seeking more efficient and effective access to these (downstream) consumers, SMEs and enterprises;
  • There is significant value in using customer data to become a better retailer and it opens up additional direct and indirect sources of value;
  • Operators are just beginning to offer personalised services and are following leaders in the online space such as Amazon but there is a long way to go;
  • There are several challenges to overcome for operators including consolidating data from multiple customer touchpoints, systems and databases and in collecting information from prepay customers about whom operators know little.

Key questions to debate

  • What is the potential value of customer data to operators and the wider Telco community?
  • How should operators seek to develop a more intimate relationship with their customers?
  • What information about their customers should they seek to use to enhance their retail offering?
  • What will customers seek in exchange for information about themselves?
  • What are the technical challenges associated with delivering a better consumer experience?
  • What can be learnt from best-practice retailers in Telco and outside?

Presenters and Panellists
Short stimulus presentations, followed by discussion between, and feedback from, participants using our ‘Mindshare’ interactive technology, followed by a panel discussion, finishing with some voting on ‘next steps’.

Stimulus Presenters

  • Anssi Tauriainen, CEO, Aito Technologies
  • Matt  Rhodes, Client Services Director, Fresh Networks
  • Mikael Jensen, ex Head, Corporate Branding, TDC

Panellists

  • Anssi Tauriainen, CEO, Aito Technologies
  • Matt Rhodes, Client Services Director, Fresh Networks
  • Mikael Jensen, ex Head, Corporate Branding, TDC
  • Juha Meronen, Head of Analytics and Insight, Blyk

Telco 2.0 background reading:

 

1030 Break

1100 Using personal data outside the firewall: The emergence of a new asset class

Personal Information – digital data relating to an identified or identifiable person – is being generated, transmitted and stored on a vast and increasing scale, primarily for internal use by organisations looking to better serve individuals, but increasingly for external use to support third-party organisations to: better interact with those same individuals and; gain insights through anonymised aggregate data. Personal information is emerging as a new asset class.

Still only nascent, the business of using personal information to create value for individuals and income from third parties, holds great promise.  For example, Facebook, barely 6 years old and generating an estimated $1bn in revenues, commands a $33bn valuation. 

The telco industry appears to have some key assets and capabilities for addressing this opportunity: ubiquity, customer data, capabilities, trust. But what should telcos’ role be? And how should they go about defining this role?

Hypothesis being tested

  • Individually and collectively operators have lots of data and information about customers but are unable or unwilling to use it as effectively as they might
  • Internet players have historically held less information about their end-user customers but are rapidly learning about who they are and what they do/like
  • Internet players are using this knowledge to drive value in their businesses both via advertising revenues and via delivery of personalised products paid for by end users
  • Customer privacy remains a key challenge for all players and regulatory and reputational risk remains high but the risk of not acting is even higher for the Telecoms industry
  • Consumer data should be controlled by the consumer/end-user and joint industry policy should reflect this premise
  • Operators have a number of roles that they could take regarding customer data

Key questions to debate

  • What is the Personal Information Economy?
  • If personal data is a new asset class, where are the banks and how will this asset be banked by individuals who are the subjects of this data?
  • What are key the technical, legal and commercial challenges?
  • How are internet players currently using customer information?
  • What additional information are they starting to gather and what is the value of doing this?
  • What is the risk of this strategy to operators if they do not respond?
  • What are the challenges associated with customer privacy?
  • How should operators move forward regarding their role in the digital economy?

Presenters and Panellists
Short stimulus presentations, followed by discussion between, and feedback from, participants using our ‘Mindshare’ interactive technology, followed by a panel discussion, finishing with some voting on ‘next steps’.

Stimulus Presenters

  • Alberto Calero General Director, Orange
  • David Levine Director, Next Gen Services, MILE
  • Douglas Dabérius, Head of Solutions, Identity, Customer Insight and Experience (CIE), Nokia Siemens Networks

Panellists

  • David Levine Director, Next Gen Services, MILE
  • Alberto Calero General Director, Orange
  • Douglas Dabérius, Head of Solutions, Identity, Customer Insight and Experience (CIE), Nokia Siemens Networks
  • Tim Barber, Experian

 Telco 2.0 background reading:

 

1200 Securing a piece of the PIE: What role for telcos in the Personal Information Economy?

As the digital economy continues to grow, customer data and customer privacy will become increasingly important issues for both consumers and for businesses seeking to deliver better services more efficiently to them.  What should the Telecoms industry be doing collectively to ensure that end user data is protected but also that service provider businesses are able to work with consumers and use their data to ensure that they receive the best and cheapest services?

Hypothesis being tested

  • The personal information economy will only benefit customers/end-users, governments, 3rd party service provider businesses and the Telecoms industry if operators are willing and able to execute against a common approach.  Without execution, the policy is only likely to serve the interests of other (internet) players.
  • Consumer data should be controlled by the consumer/end-user and joint industry policy should reflect this premise
  • A standard approach will only benefit customers/end-users, governments, 3rd party service provider businesses and the Telecoms industry if operators are willing and able to execute against a common approach.  Without execution, the policy is only likely to serve the interests of other (internet) players.
  • 100% safe and accurate is impossible – building value creates risks and mistakes will be made.  Key thing is how to mitigate and limit risk
  • Key areas where industry guidelines need to be developed include:
    • Principles for creating a win-win-win-win approach for consumers, governments, service provider businesses and Telecoms
    • User literacy  (educating the user about what is really happening to their data)
    • Managing liability – creating accountability and managing risk for all parties
    • Sustainability – how to make this commercially, politically, socially ‘profitable’
    • Portability – giving consumers the right and ability to move their data around
  • The PIE (personal information economy) will not stand still, waiting for telcos to
  • Telcos need to be taking a stronger role in proposing, piloting and leading with solutions to serve this opportunity or else risk being marginalised as bit-pipes.

Key questions to debate

  • What does win-win-win-win look like for consumers, governments, service provider businesses and Telecoms?
  • Why should telcos seek to give end users control of their data and how can they do this?
  • How do you reward and incentivise the service providers to create open, portable ‘Personal Data Stores’ (PDS)?
  • How to secure and maintain legitimacy & trust?
  • How do you build-in resilience to attack?
  • How do you educate consumers about their data, its value and how they can control it?
  • What is the role of the operator in making this happen?
  • What are the immediate, practical next steps?

Presenters and Panellists
Short stimulus presentations, followed by discussion between, and feedback from, participants using our ‘Mindshare’ interactive technology, followed by a panel discussion, finishing with some voting on ‘next steps’.

Stimulus Presenters and Panellists include

  • Michel Burger, Chief Architect, Vodafone
  • Bill Hoffman, Head of Telecoms Sector, World Economic Forum
  • Alan Mitchell, Head of Strategy, Mydex

Telco 2.0 background reading:

 

1330 LUNCH

Afternoon Overview

These sessions centre on the crossover issues that draw on the learning so far from the Consumer 2.0 sessions that have built a framework for the value of customer data, the Digital Entertainment sessions that have discussed the direct to consumer and mobile opportunities and the M2M/Embedded Mobility 2.0 sessions, which examined the development and new business models of a market for billions of connected devices.

 

1430 The Connected Home

  • The role of the iPad, tablets, MIDs, 3D and Internet TV’s, Set Top Boxes and Media Servers and Smart Meters, and other connected devices on the digital economy.
  • How new operating systems and hardware can enable richer consumer and business interactions.
  • Market scenarios, opportunities and threats.

A whole series of connected devices are entering homes and all, from games consoles and tablets to set top boxes, media servers and smart meters. The connected home is a point of confluence for two of the major new growth markets, namely connected entertainment and M2M/embedded. With these come two emerging ecosystems and a host of players all looking to gain a position of power in the value chain that will gain them a greater share of the revenue, the connected home is becoming a hotbed of activity and competition.

Hypothesis being tested

  • The ability of connected devices to serve more than one purpose will lead to a natural consolidation of the market rather than a proliferation of an ever increasing number of boxes in the home
  • The user interface to the gateway will be a primary differentiator in the battle for the home hub but not the only differentiator
  • Telcos have both the connection and additional assets – customer data, billing, customer care, content delivery, identification and authentication – that can support and enhance the services being delivered by connected devices
  • By leveraging their assets, telcos can put themselves at the heart of the connected home ecosystem

Key question to debate

  • Is there a need for more than one home hub? What are the advantages and disadvantages of a single interface to all home connections for the user and what are the implications for business models for one or multiple hubs?
  • Does control of the business model lie with the best user interface?
    How is the ecosystem developing each of the hubs and are there any commonalities?
  • Which telco assets are important to home hubs?
  • How can telcos leverage the connection and their valuable assets to maximise their role in the connected home?
  • Should telcos be attempting to be the one hub or provide services to a range of other hub service providers?

Presenters and Panellists
Short stimulus presentations, followed by discussion between, and feedback from, participants using our ‘Mindshare’ interactive technology, followed by a panel discussion, finishing with some voting on ‘next steps’.

Stimulus Presenters

  • Nicolas Bry, SVP, Orange Vallee
  • Diego Massidda, Director of Video & Connected Home, Vodafone Group
  • Fabio Sergio, Creative Director, Frog Design

Panellists

  • Mike Grant, Principal Consultant, Analysys Mason
  • Nicolas Bry, SVP, Orange Vallee
  • Diego Massidda, Director of Video & Connected Home, Vodafone Group
  • Fabio Sergio, Creative Director, Frog Design

Telco 2.0 background reading:

 

1600 Break

1630 Augmented Reality and Mobile Apps

  • Disruptive business model opportunities at the intersection of technology, devices and consumer data.
  • Market scenarios, opportunities and threats in B2B and B2C

The primary focus to this point has been on the use of telco capabilities as a channel and to deliver content to every platform available, especially mobile. However, to just use the new mobile channel as a platform for the same content is missing a major opportunity as by using the information around the user (augmented reality) and complimentary apps, the entertainment experience on mobile and other platforms can be enhanced, adding new value propositions to the market. Includes new Telco 2.0 use cases.

Hypothesis being tested

  • The data surrounding a user is valuable and can be monetised for entertainment
  • Augmented reality provides a true differentiator for content owners and retailers
  • There is a complimentary mobile/tablet experience that can enhance a main screen viewing experience (eg ESPN sports stats apps)
  • The ability of consumers to ‘toggle’ around screens and interact with content in different ways in one that is valuable and monetisable
  • Telcos have the data and ability to provide the augmented reality experience

Key questions to debate

  • What is the business model for augmented reality and complimentary apps? How does money flow between content owner, app developer, distributor and telco?
  • How can content owners engage more effectively with the app developer community to develop apps that enhance their content experience?
  • How do telcos build/enable augmented reality services and solutions?
  • Should telcos look to use apps and augmented reality to differentiate their own entertainment services or offer them as upstream services to other content owners?

Presenters and Panellists
Short stimulus presentations, followed by discussion between, and feedback from, participants using our ‘Mindshare’ interactive technology, followed by a panel discussion, finishing with some voting on ‘next steps’.

Stimulus Presenters and Panellists include

  • Roberto Saracco, Director, Future Centre, Telecom Italia
  • Christopher Burman, Designer & Software Developer, Pachube, Connected Environments
  • Simon Torrance, CEO, Telco 2.0 Initiative

Telco 2.0 background reading:

 

1800 Close