reach_beyond_program
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The document discusses new business models that mobile operators can adopt to monetize changing communication behaviors and the growth of data usage: 1) Operators must evolve their traditional business models of charging per call/text as people spend more time on data activities like social media on smartphones. 2) New models like providing richer service bundles that improve the customer experience, exploring two-sided models where other parties help pay for communication, and leveraging all capabilities to address new segments can help operators monetize changes. 3) The document invites operators to workshops to collaboratively explore these new business models through open-ended discussion and sharing of insights from other markets.
reach_beyond_program
- 1. Embracing the new era in communication services REACH beyond
- 2. exploring new business models REACH beyond program The rapid expansion of smartphone use is transforming the way we communicate, socialize and do business. Not that long ago, mobile phones were primarily used for making calls on the move. But with smartphones, we now spend a lot more time doing other activities, such as emailing, surfing the web, sharing pictures, watching films and playing games. How do we manage? We multitask. Whether traveling, in a restaurant, in bed, watching television or even when attending a concert or a sporting event, we share and communicate. Our need to share and communicate seemingly knows no bounds, and smartphones give us the means to do so. The mobile industry has so far been very successful in monetizing this need for communication – in the past, every phone call or text message meant profit for the operator. But as we move into a data-centric world, this traditional business model is not sustainable. Charging per call or per text may be simple, but it’s not optimized to monetize the opportunities provided in the new communications landscape. As a mobile operator you have a great advantage. Delivering excellent communication services is at the core of your expertise. The telephony community is the largest and most widespread communication community in the world. You already have the customers, and they have a strong need and desire to communicate in their daily lives – with businesses, services and each other. The challenge is to evolve current business models to better monetize this growth in communications. As the world’s leading supplier to the mobile industry, we want to share our insights from markets all around the world. Together, we want to explore the opportunities of new business models in this data-centric world. It is only by truly understanding your business that we can excel as a supplier. That is why we have created this program – so we can ‘reach beyond’ today’s business models and explore future possibilities together. This is your invitation to take part. We live in a Networked Society. In the future, everything that can benefit from being connected will be.
- 3. ReachBeyond Sharing an unforgettable experience – how can we monetize on this?
- 4. Stand out by exceeding customer expectations > Embrace new communication demands > Price is not a differentiator > Focus on bundles and service quality > Continuously improve the customer experience BEYOND USUAL Provide richer service bundles with increased user experience and quality How can multitasking be monetized – at home and at work?
- 5. BeyondUsual Thinking beyond the USUAL In a crowded market, the key to creating and keeping loyal customers is to continuously improve their experience. It’s about taking the ordinary and making it special. In a world where all operators offer similar talk and text bundles at a similar price, you need to stand out by providing more attractive bundles and superior service quality. The plain vanilla voice, text and data bundle needs to be spiced to catch each customer segment’s attention. Instant messaging, music, social media, video, terminals, fixed services, enterprise solutions and much more, can be used to create bundles beyond the usual. When bundles and price levels are similar, customers will focus on quality. No call drops, full coverage, video calling, HD voice quality, ease of use, customer services and more are all weighed in to the perceived service quality. Subscribers choose how they want to communicate, and it’s up to you to provide them with a superior service experience. The Beyond Usual business model represents a commitment to continuously improving the customer experience. It is not a one-off event, but a constantly evolving process. Successful enhancements are quickly copied and absorbed by competitors, and they rapidly become the new level of expectation. Customer expectations also vary, and often each customer segment requires its own individual improvements to exceed its unique expectations. > What can make your bundled offer more attractive than your competitors? > Can communication take place while sleeping, eating or showering? > What does great service quality mean for your most valued customers? > Can a smartphone create friendships and improve business?
- 6. Explore a two-sided business model to reach beyond current subscribers and business areas Visual communication. What innovative businesses can you support? Exploring a two-sided business model > Let someone else pay – advertisers, governments and enterprises > Facilitate employers and families in covering communication costs > Allow communication to be embedded into and enhance services, for example, education, healthcare and entertainment BEYOND LIMITS
- 7. BeyondLimits> Which IP addresses could or should be toll-free? > Will it be possible to visit a doctor in India, or take a class with a Nobel prize winner? > Could a smartphone automatically send tourist information when the user is traveling? Thinking beyond limits Beyond Limits is about transferring the cost of communication from your customers to those who want to reach them, and building it into how we do business together. Enterprises will pay to access customers. Toll-free numbers and postage-paid envelopes have been around for years, as have commercial television and free newspapers. More recent trends in communication include homepages, social media and blogs. Most industries have a history of paying to communicate with potential customers. By paying for it, they can decide the parameters. If the sender wants HD quality, why should your subscriber pay for even a single byte of advertising traffic or HD voice call? But if the sender is footing the bill, they can tailor their medium and message to suit their ends. Take for instance an app offering hotel rooms or restaurants to tourists. The sender decides if they want to provide the information via text, pictures or videos and pays accordingly.They can even send to customers who don’t have a data subscription. Businesses can target customers directly, and those customers can use their phones to research the products and services they need, and even find out where to buy them. If they need help they can use their device to contact customer support – and of course they can use it to communicate how happy they are with their purchase to family and friends. Communication is an essential part of every business. Working together, we can help businesses target your customers in a meaningful way.
- 8. Leverage all your capabilities to address new segments, markets and industries Monetize all your capabilities > Your customer base and billing relationship has a large commercial value > Your ability to make anything connect and talk is unique > Widespread use of mobile screens could spell major profits for operators BEYOND PEOPLE
- 9. Thinking beyond PEOPLE In many industries, the main service is not the main source of revenue. That is, petrol stations do not make most of their profits from motor fuel, and cinemas profit from both tickets and sales of popcorn and candy. While mobile operators still charge for core services like talk, text and data, they increasingly find new revenue streams by leveraging assets such as their subscriber base, the mobile screen and the billing relationship with the customer. Mobile payments is one example of how operators use the billing relationship to offer services outside of the core offering. It’s also worth considering that many smartphone users spend more time looking at the screens of their phones than they do watching traditional TV – and not only that, their smartphone is an interactive communications device. The ability to receive messages and act on them immediately opens up new possibilities for everything from advertising to e-commerce. For years, operators have excelled in building relationships and bringing people together through their networks. The database of loyal customers and deep knowledge and insight into their behavior and preferences is one of the most valuable assets. Machine-to-Machine (M2M), big data and the cloud will also present great opportunities in the coming years. As users, we increasingly communicate with machines and in turn they communicate with us – when buying over the internet, receiving a parcel and making a payment. As more and more devices are connected and smartphones become the dominant tool for most people to access the internet, mobile operators’ opportunities grow to provide secure and reliable services. How can M2M make people safer and more comfortable? > What would people like to control using their mobile phones as a remote? > How can you profit from the increased time people spend viewing content on their mobile screen? > In the future, what things do you see people communicating with? BeyondPeople
- 10. BE A PART OF REACH The objective is simple. We want to explore these new business models with you and see how they could be applied to monetize the growth in communication that the Networked Society brings. In the process we will share our insights from markets all around the world. At the same time we hope to get a feel for your vision of the future and where you expect your revenue streams to be in the short to medium term – and of course to help you create them. beyond Over 100 co-creation workshops based on exploring new business models have been conducted to date. We have a well-proven methodology which allows us to collaborate with your team and share and discuss insights from operators all around the world. Agenda Introduction to the business models Co-creation of customer offer Insights from other markets Customer offer improvement Revenue potential of selected offer Next steps discussion
- 11. What is our target customer segment? How do we make the offer more attractive? What does this segment need/desire? What pricing model is most suitable? What is our value proposition to them? What limitations are acceptable? Which channels can we use? How do we reach them? To spur creativity and openness during the Reach Beyond workshop a number of open-ended questions are used, along with films and success stories from other industries. At the end of the workshop, participants will have a number of documented business ideas based on these new business models. Naturally, we are happy to continue supporting you in pursuing these ideas. TakePart
- 12. Ericsson SE-126 25 Stockholm, Sweden Telephone +46 10 719 00 00 www.ericsson.com EAB-13:074679 Uen © Ericsson AB 2014 METHODS OF CONTACT Engagement Practice – Communication Services Business Unit Networks – Marketing and Communications www.ericsson.com/reachbeyond Ericsson is a world-leading provider of communications technology and services to mobile and fixed network operators. We support customers’ networks, servicing more than 2.5 billion subscriptions in over 180 countries. Today, 40 percent of the world’s mobile traffic goes through Ericsson networks. As communication changes the way we live and work, Ericsson is playing a key role in this evolution. Using innovation to empower people, business and society, we are working towards the Networked Society, in which everything that can benefit from a connection will have one. Our vision is to be the prime driver in an all-communicating world. The content of this document is subject to revision without notice due to continued progress in methodology, design and manufacturing. Ericsson shall have no liability for any error or damage of any kind resulting from the use of this document.