Day 2 - 28th October 2010: Consumer 2.0
Incorporating the 2nd Privacy 2.0 International Summit
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
0745 Registration & Continental Breakfast
0830 Welcome, Introductions & Warm Up
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 build expertise in data mining and analysis. They also need to use this expertise to create a more compelling customer experience. 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 x 3, 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:
- Von Wright, VP Consumer Marketing, AT&T Mobility
- Sebastian Lind, Head of Marketing, Data Management/Billing & Customer Care, Ericsson
- Amandan Jayaraman, Chief Product & Strategy Officer, Connectiva
Panellists:
- Von Wright, VP Consumer Marketing, AT&T Mobility
- Sebastian Lind, Head of Marketing, Data Management/Billing & Customer Care, Ericsson
- Amandan Jayaraman, Chief Product & Strategy Officer, Connectiva
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
- 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 x 3, 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:
- Hans Frederick, VP Marketing Solutions, ComScore
- Marc Davis, Partner Architect, Consumer & Online Services, Microsoft
- David Petersen, CEO, Sense Networks
Panellists:
- Marc Davis, Partner Architect, Consumer & Online Services, Microsoft
- Hans Frederick, VP Marketing Solutions, ComScore
- David Petersen, CEO, Sense Networks
Telco 2.0 background reading:
- CDR = Customer Data Revolution
- Facebook, Google, Apple: User Data, Apps, and Augmented Reality
- Use Case: Telco customer data for advertising in OTT video
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.
- 100% safe and accurate is impossible – building value creates risks and mistakes will be made. Key thing is how to mitigate and limit risk
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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?
- 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 telecoms industry and individual operator s in making this happen?
- What are the immediate, practical next steps?
Presenters and Panellists
Short stimulus presentations x 3, 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:
- Don Thibeau, Chairman & President, The Open Identity Exchange
- Bill Hoffman, Head of Telecoms Sector, World Economic Forum
- Eric Sachs, ID Manager, Google
Panellists:
- Bill Hoffman, Head of Telecoms Sector, World Economic Forum
- Don Thibeau, Chairman & President, The Open Identity Exchange
- Eric Sachs, ID Manager, Google
Telco 2.0 background reading:
1300 LUNCH
Afternoon Overview
These sessions bring together the Digital Entertainment sessions and the Consumer 2.0 sessions to look at how to take advantage of the telco subscriber base to enhance entertainment services and business models.
1400 Optimising international online content distribution
New methods for content delivery, asset management, and workflow efficiency
As established in the two previous sessions, the two main areas of differentiation are the content itself and the ability to deliver that content in ever more convenient and engaging ways for the consumer. Therefore content owners are in need of support from telcos for content delivery, particularly for live events, on the one hand and more effective content discovery and access on the other.
Hypothesis being tested
- Content owners are currently wrestling with two competitive threats. One comes from their traditional competitors, other content owners; the other from new aggregators or other players in the value chain looking for a greater share. Competing effectively against these requires content owners to do what they already do better as well as engaging with new services.
- Operators have specific assets and capabilities that can help content owners tackle their strategic issues including:
- Live production support capabilities to improve the delivery of TV content
- Media distribution, asset management and workflow software for broadcast services
- Identity-based content delivery to improve content discovery
- Large quantities of customer data that can be used to improve content owner marketing
- Payment capabilities for the unbanked (including the young) via premium SMS and a global payment exchange (originally developed for roaming)
- Telco customer data and reach can be used to enhance media company’s search and discovery services; to engage with more customers, build customer loyalty and cross/upsell
- Operators and content owners could and should be doing more to work together. They should develop a number of specific use cases to drive collaboration
Key questions to debate
- How can telcos help broadcasters improve their efficiency?
- What are the key capabilities that content owners need to become more competitive with new market entrants and can telcos support these?
- How important will discovery be as time and place shifting reduce the value and impact of the TV schedule
- When offering upstream services to content owners, is interoperability between operators desirable or even essential?
Presenters and Panelists
Short stimulus presentations x 2, 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:
- Keith McMahon, Senior Analyst, STL Partners/Telco 2.0 Initiative
- Eric Klinker, CEO, BitTorrent
Panellists:
- Eric Klinker, CEO, BitTorrent
- Jeff Casey, VP Media Management, Globecast
- Stephanie Comfort, EVP Chief Strategy Officer, Qwest Communications
- Keith McMahon, Senior Analyst, STL Partners/Telco 2.0 Initiative
Telco 2.0 background reading:
- Google: The Internet Behemoth and how it profits from YouTube
- BitTorrent’s uTP: The Art of Getting Out Of The Way
1515 Break
1545 New Direct-to-Consumer Entertainment Services
- Leveraging telco consumer data and reach to create new commerce and advertising platforms
- Exploring the practicalities of new ‘use cases’
To make an impact on the market any media company will have to differentiate its offering through: the quality of its content; place and time shifting; the effectiveness of its user interface/guide/discovery capability; and the ability to interact with apps and online services including social networking. The first is a pure content play, the next two have already been discussed, but the last is also needed to create a differentiated customer experience. Understanding the customer, their environment and linking their entertainment content with their other apps are central to this. Includes new Telco 2.0 use cases.
Hypothesis being tested
- There is value in the data surrounding the telco user and his activities that can be monetised for entertainment
- A major opportunity lies in using the information around the user to enhance the entertainment experience and add new value propositions to the market.
- Entertainment experiences can be enhanced, differentiated and even further monetised through integration with apps, such as social networking for enhanced recommendation/discovery engine or apps that work with the content – discussion boards, additional data, voting on outcomes, creation of new characters, episodes etc, etc.
- Customer Care and Account Management are seen as weak areas for many media service providers – cable companies, etc., but these can become effective customer retention tools if linked to customer information and used as a proactive service rather than always a reactive measure
Key questions to debate
- What are the most important differentiators for a media company looking to improve its online distribution?
- What data do telcos hold that is of greatest value to content owners and how readily available is it? Does this need to be made available in a standardised way?
- What sort of apps will drive customer engagement and add value to the entertainment experience?
- How can content owners engage more effectively with the app developer community to develop apps that enhance their content experience?
- What is the business model for complimentary apps? How does money flow between content owner, app developer, distributor, advertiser and telco?
- Should telcos look to use its customer’s data to differentiate their own entertainment services or offer them as upstream services to other content owners? Can they do both?
Presenters and Panelists
Short stimulus presentations x 4, 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:
- Marc Davis, Partner Architect, Consumer & Online, Microsoft
- Christian Briggs, CEO, Briggs Media
- Thomas Fellger CEO, IconMobile
- Frank Chindamo, President & Chief Creative Officer, Fun Little Movies
Panellists:
- Mitch Singer, EVP & CTO, Sony Pictures Entertainment
- Christian Briggs, CEO, Briggs Media
- Thomas Fellger CEO, IconMobile
- Frank Chindamo, President & Chief Creative Officer, Fun Little Movies
- Marc Davis, Partner Architect, Consumer & Online, Microsoft
Telco 2.0 background reading: