Global digital telecom playbook - Telcos reinvent themselves in the digital age - EY
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Global digital telecom playbook Telcos reinvent themselves in the digital age
About this document
► In an evermore digital world, telcos face increasingly challenging competitive
environments and rising customer expectations.
Purpose ► Operators need to seize digital opportunities and reinforce their positions by moving
from being communication service providers to digital service providers.
► The global digital telecom playbook and EY’s Advisory services can help operators
with this transformation.
Market trends & customer perspectives
Industry challenges & opportunities
Content Communication
Digital transformation paths
Digital service
service provider
Use cases & best practices provider
EY expertise & offerings
► All telco operators: incumbent and greenfield,
Target quadruple play, triple play, mobile only, emerging
Audience markets and mature markets
► Adjacent industry service providers
Page 2
Agenda
1 The digital revolution: market trends
and challenges for telcos
2 Digital transformation path for telcos
1
1
3 Telcos’ digital best practices and
use cases
4 EY offerings for telcos’ digital
transformation
1
1 The digital revolution:
market trends and
challenges for telcos
Digital is already part of our daily lives; adoption is driven by
customer demand for real-time information and seamless
interactions across devices
90% of all consumers Social media is turning into Consumers are spending 72 hours of video is
simultaneously use a sales and services over 85% of their time on uploaded to YouTube
multiple connected channel. their smartphones using every minute.
devices. native applications.
More than 241 million As of 2011, Amazon.com
81% of spontaneous tweets are sent every day. In a typical month, about sells more electronic books
purchases are made via 300 million apps are than printed ones.
Data traffic via
smartphone. downloaded in Germany.
smartphone is predicted to
€216 is the average grow 53% by 2020. Instagram is growing
European spend on online rapidly and now has more
In the last two minutes,
shopping per year. 80 Americans have than 400 million active
switched to smartphones. users ... but at the same
TVs now provide a wide
time, Facebook has
range of interactive
1.5 billion active viewers.
services.
Sources: TechCrunch; EY analysis
Page 5
With new digital behaviors, customer expectations and needs shift
As customer behavior and … telcos have to strive for customer experience
expectations evolve … excellence.
Personalization Unpredictable Service gamification
“I am adapting my loans to my projects and capabilities.” omnichannel
Autonomy
“I am managing the level of assistance that I need.”
Consistency in contact points
“I am in contact with my telco throughout many channels on
a continuous basis, and I receive consistent notifications
across channels.”
Multiscreen and seamless experience
“I can access all my services on each of my devices
(with a mobile-first mindset).”
Socialization and simulation
“I have access to clear, consistent and transparent
information.”
Win/win big data Augmented reality
Page 6
Telcos face many challenges due to stagnant growth of the industry
and increasing direct and indirect competition
Siloed Regulatory
Outmoded
organizational pressure Fully saturated markets
IT systems
structures on pricing
Digital will become increasingly Total global revenues (US$ billions)
1,200
CAPEX-demanding for telcos, as 1,000
data consumption accelerates traffic 800
on networks 600
400
200
Global mobile operator CAPEX (US$ billions) 0
2016E
2017F
2018F
2019F
2020F
2010
2011
2012
2013
2014
2015
250
200
150
100 Global network traffic forecast (PB per year)
50 12,00,000
0
Market 10,00,000
2016E
2017F
2018F
2019F
2020F
2010
2011
2012
2013
2014
2015
consolidation 8,00,000
with numerous 6,00,000
M&A deals 4,00,000
Intense competition 2,00,000
large number of players (including 0
2015 2016E 2017F 2018F 2019F 2020F
over-the-top (OTT)) Video Games Music
Web browsing Social networking Communications
Sources: Informa; OVUM; GSMA; EY analysis
Page 7
As a response to this downward revenue trend, telecom operators
should seek opportunities elsewhere in the digital ecosystem
Global mobile and digital ecosystem value forecast 2010–25 Comments
US$ billion ► The mobile and digital
CAGR ecosystem will grow
$4 billion significantly to a total of
US$ 3.65 billion US$3.6 billion by 2025.
► Traditional operators will
21% +5,5%
continue to take a smaller
$3 billion share of overall revenues,
11% +9,6% putting further pressure on free
US$ 2.36 billion cash flow and investment.
19% +17,9% ► The two areas with the
$2 billion 24%
strongest growth are the
US$ 1.67 billion Internet of Things (IoT),
12%
27% 17% +20,9% along with content and video.
13%
9% ► The IoT market will see
$1 billion 8% 12%
5% significant growth to reach
19% 24% +10,6% US$700 billion by 2025.
23%
► The content and video
32% 16% -4,7%
9% space will see faster overall
0
growth (25% CAGR).
2015 2020 2025
Voice/SMS Data Content and video IoT and M2M Advertising Enterprise and cloud
1) IoT market is defined as that portion addressable by mobile operators.
Sources: Informa; OVUM; GSMA; EY analysis
Page 8
Telecom operators can leverage four main opportunities to grow
their revenues in the digital landscape
Content IoT
and video and M2M
(OTT)
Telecom
operators
How to grow
beyond core?
Enterprise
Advertising
and big
and cloud
data
Source: EY analysis
Page 9
2
2 Digital transformation
path for telcosTo succeed in the rapidly evolving digital ecosystem, telcos need to
define clear strategies and paths for digital transformation
Capturing new digital opportunities ► Growth and adjacent business opportunities with OTT offers,
M2M/IoT services, cloud services, big data and advertising
More
Digital growth and
adjacent business
Customer-led digital transformation ► Experience: customer satisfaction measurement (NPS), customer
experience management: product and service experience, customer
journey design optimization
Business digitalization: omnichannel blueprint definition (sales and
Core
►
Personalized and Advanced
Digital driven care), design and launch of digital operator (greenfield, sub-brand,
improved customer
omnichannel MVNO), online sales strategy/performance improvement
experience analytics
► Analytics: customer analytics platform specification and implementation,
data monetization (mobile/localization, TV audience measurement)
Embracing digital capabilities and shifting culture ► IT and technology: reach new customers via internet, provide better
quality and faster services, such as, fiber optic cables, new computers
People, organization and culture: develop internal digital awareness
Capabilities
►
with initiatives, such as, digital HR and digital supply chain, hire new
People, Risk and talents and develop a digital organization
Digital IT and
organization and cybersecurity Risk and cybersecurity: secure data collection and manage
technology ►
culture evolution management associated risks
Source: EY strategic framework for telcos digital transformation
Page 11On the road to digital transformation, telcos need to strategize and
plan on how to organize for digital, based on their current digital
maturity
Digital ambition dampened by high
implementation barriers; digital
initiatives launched in pockets leading Established
to low maturity
High
Digital ambition to be competitive in the
Pioneers Transformers market; quick to implement given their
Transformers
Digital maturity
size and scale
Builders Established
Digital ambition; high abilities to embed
digital in existing capabilities; digitizing
integrated customer interfaces Builders
Low
Low Implementation complexity High High digital differentiation; early digital
adopter and drivers of digital innovation Pioneers
Page 12Large telcos in Europe have initiated three main types of initiatives
to address digital transformation challenges
Description and stakes Examples
► Digital initiatives need a momentum at the group level ► The digital business unit of a leading mobile
demonstrating that this is a priority. network operator (MNO) in Germany is in
Group digital ► Digital strategy should be aligned with corporate and business
charge of coordinating most of the digital
initiative and innovation initiatives of the group.
strategy so that it creates a competitive advantage.
(Center of ► The leading MNO in Spain has created a
Excellence) business unit dedicated to innovation
and digital.
► Increasing competition is reducing margins, so telcos must ► The leading MNO in France expects 50% of
differentiate their offering, increase their customer base and client interactions through digital in 2017 vs.
reduce customer relationship costs. 30% as of today.
Digitalization of
the main brands ► Customers are becoming increasingly autonomous and able ► The MNO challenger in France has engaged
(and willing) to manage the online end-to-end journey, with no an agile digital transformation of its
(Opco) human support. main brand.
► Low financial risk (low entry costs, low fixed costs, low exit ► In France, all mobile operators launched a
costs, etc.) digital sub-brand to prevent the arrival of a
Launch of a
no-frills player.
100% digital ► Short time-to-market (four to six months)
sub-brand ► An innovative MNO in the UK has
► High innovative impact (on brand perception and processes)
successfully launched a digital MVNO.
(e.g., Digital operation (e.g., creation of new best practices to be replicated
MVNO) in other business units/countries)
► Differentiation of the offering in a competitive environment
Page 13Telco operators need to consider six key success factors in order to
succeed in the digital landscape
► No single strategy will be suitable ► Operators should focus on growth
for every operator, as the digital levers with the best probability for
landscape is extremely diverse. success:
► Successful strategies will vary ► OTT
according to the following: ► IoT and M2M
► Differences in local conditions ► Big data and advertising
► Strategic appetite for digital ICT and cloud-based services
transformation Understand there’s Focus on key ►
no single winning growth areas
strategy
► Network effects and scale are key to ► The right skills and assets are
success in the digital ecosystem. required to compete effectively in the
digital ecosystem.
► Operators promising new initiatives Key Build or
need to scale, and rapidly. invest for the ► M&As will become an important
Scale rapidly success driver for digital transformation.
right skills
► Operators need the flexibility to factors and assets
quickly exit unsuccessful ventures ► Venture Capital funds and
and redeploy resources to promising innovation hubs are also routes to
growth areas. acquire new skills
and assets.
Realize new
► Building partnerships through Develop business ► More flexible business models are
collaboration and innovation is key partnerships models are key required to compete effectively in the
for digital success. digital ecosystem.
► Operators need to be open and ► Operators should invest in platform-
establish partnerships with other based business models that bring:
operators, established internet players
► Higher customer engagement
and new entrants.
► Growing range of services to be
monetized
Sources: GSMA; EY analysis
Page 143
3 Telcos’ digital best
practices and use cases3
3 Use Case #1: becoming
a digital life provider and
capturing adjacent
business opportunitiesA number of operators across the world are already developing
strategies to conquer their space in the rapidly evolving digital
ecosystem
Leading Leading Leading
MNO in US MNO in Spain MNO in China
► The leading MNO in the US has ► The leading MNO in Spain ► The leading MNO in China has
positioned itself as an innovator wants to become a key player identified four emerging areas
in the digital-first mobile, in the digital universe, to focus its efforts:
defining a strategy based on identifying talent and ► Smart family
three main pillars: entrepreneurship as key ► Mobile payment
► Leading in terms of network components. ► Internet of Things (IoT)
connectivity ► In order to become a referent ► Cloud computing
► Developing new platforms around digital telecom provider, this and big data
digital media and IoT
mobile operator has set three ► Growth in these areas sits
► Developing new services/ areas to focus its efforts:
applications on these new alongside the goals of
platforms ► Product development and strengthening the existing two
innovation core business areas: 4G and
► The mobile operator strategy ► Partnership and venture capital fiber broadband
has a clear focus on developing (innovation investment)
new business models on global ► New digital services (M2M,
digital platforms. e-health, financial services
or cloud)
Sources: GSMA; company data; EY analysis
Page 17The majority of telecom industry players register less than 5%
in digital revenues
Telecom’s digital revenues as % of total revenues (in 2016)
16% 15.0%
14%
12% 11.5%
10%
8.5%
8%
6% 5.0%
4% 3.5%
2.5%
2.0% 1.8%
2%
0%
Leading MNO Challenger MNO Leading MNO Leading MNO Leading MNO Leading MNO Leading MNO Leading MNO
Japan Japan South Korea Spain Germany France Singapore Nigeria
► MNO exceptions with >5% of digital ► Other telecom players in mature marketsTo capture new revenues, telcos can leverage capabilities and
assets to position themselves as vertical players, offering services
beyond connectivity
Example in the IoT industry
Smart chip/ Smart Network Service SI/application/
module device/machine connectivity enablement solution
► SIM card ► Camera ► Network ► Platform and ► Packaging/
► Sensor ► Car ► Connectivity solution buildup bundling
Core ► Actor ► Domestic ► Availability ► Back-end ► Service
appliance configuration provisioning
business ► Aggregator ► Quality
Electricity meter ► Capabilities ► CRM and analytics
activity ► Transponder ►
enablement ► Business customer
► Interface sales to end user
development
Possible partnerships to provide MNO core MNO possible MNO possible
end-to-end service business expansion expansion
Share of
total value 5%–10% 10%–15% 10%–15% 30%–40% 20%–25%
by 2020
Opportunities for telcos to seize business from applications
Sources: EY analysis; GSMA; Ericsson; Alcatel Lucent; ADL
Page 193
3 Use Case #2: reinventing
the customer experience
and simplifying the
commercial modelCustomer experience improvement is considered a top priority by
telcos, and digital is a key facilitator
Customer experience management dominates the Improved service levels and personalization can unlock new
strategic agenda customer experiences
Q: What are your organization’s most important strategic priorities over the next Q: What are your organization’s most important initiatives to improve customer
three years? (Top three responses) centricity? (Top three responses)
100% 100%
82%
80% 80% 69% 69%
60% 50% 60% 53%
40% 35% 32% 40% 31% 31%
29% 29% 28%
18% 15%
20% 20% 9%
6%
0% 0%
Create more
Provide wide
pricing options
Strike partnerships
players
with other industry
Others
Improve
Improve
personalised
Provide flexible
customer
service
customer
experience
network quality
range of services
Other
talent
Customer
IT systems
M&A
HR and
experience
Cost control
Organization
Network
New
services
► Customer experience management is emphatically the top priority ► Digital native consumers (who have never lived without digital)
for operators (68% citing it as first priority; 82% as top three). have high expectations of service providers; when convenience
► The drive to focus on customers’ experience dictates other and quality fail to live up to expectations, these customers are
priorities: agility, efficiency and network quality. quick to switch providers.
► New service development ranks fifth as a top three priority, but ► This is well-recognized by service providers that set customer
second as first priority, underlining how some operators are highly centricity, customer support, personalized services and
focused on capturing digital growth opportunities. network quality as the most important levers at their disposal.
Source: 2015 Global telecommunications study: navigating the road to 2020, EY, 2015
Page 21Customer 2.0 is forcing ecosystem players to provide digital
interfaces and consistency of digital experiences across channels
Customer interface evolution: from customer 1.0 to 2.0 experience
► Voice ► Word of mouth ► E-wallets ► Social media
► Data ► Traditional media ► Video on demand ► Online communities
► Value-Added Services ► Music on demand ► Chat
Customer 1.0 Customer 2.0
► Call center ► E-care
► Traditional marketing ► Digital marketing
► Traditional sales ► Online sales
Page 22In their digital transformation path, telcos have started reinventing
the customer experience through digital-driven omnichannels
Leading mobile operator Mobile operator in the Leading mobile operator
in France Middle East in Germany
Aiming for 50% digitization of Digitizing interactions with its Increasing its exposure in digital,
interactions with its customers by customers, simplifying servicing including development of digital
2018 (vs. just over 30% today) mechanisms and customer experience (digital
optimizing costs billing, e-sales and e-servicing)
► The company is offering a low- ► Encourage customer self-care ► The company is targeting
cost and no-frills service range generates ~4%–5% cost various levers of revenue and
under its youth-oriented brand, reduction per year cost optimization through
available only online (sales digital and commits on the
► Increase online sales to reduce
and care). following KPIs in its strategy:
the number of stores
► Several partnerships to contributes to ~8%–10% cost ► Increase e-sales from 10% in
2014 to 18% in 2018
develop a set of self-service reduction
apps to encourage digital ► Decrease servicing costs by
► Portfolio simplification reduces 16% in 2018 to focus on
interaction with its customers
marketing expenses by ~5% self-service portal
(part of omnichannel strategy).
► Customer satisfaction
increased after these changes
Sources: GSMA; company data; EY analysis
Page 23A digital-driven omnichannel strategy has a proven impact on
customer satisfaction — telcos should develop in-house
capabilities to make it work
Optimize performance goals with digital Build capabilities
1 2
NPS vs. use of digital channels for sales and service* CEX analytics Personas
platform
3 4
CEX
Journey mapping value models
5 6
Measurement Structure
system
7 8
Incentives Leadership
Digital has a positive impact on customer satisfaction: Putting in place the key enablers to:
► The correlation between NPS satisfaction scores and ► Baseline the current customer experience
number of customer digital interactions has been ► Size the value impact and prioritize improvement
statistically proven in several studies done for different initiatives with delivery organizations
telcos in Europe.
Note: NPS means Net Promoter Score, CEX means Customer Experience
Page 243
3 Use Case #3: leveraging
analytics to improve
performance and better
address customersTelcos best practices: leveraging analytics to boost business
performance
Global telco and cable Pan-European telco European pay TV provider
company
Customer analytics: Data monetization: Big data transformation:
In-house capability of Actor is now focusing on the Aiming to get additional value
expandable data collection and following offers to monetize and from analytics:
treatment: commercialize its data: ► Identify new use cases and
► Audience TV data ► Third-party data revenue streams
► Customer data ► Targeted advertising ► Design the operating model
► Online behavior ► Consumer measurement ► Prioritize investments
EY Customer Analytics platform The company monetizes its data to Client would an outline on how to
allows the leveraging of data and target advertising on linear TV, generate additional value from big
achieving the following VOD (on-demand, replay and data and analytics across the firm,
performance uplifts: catch-up) and second screens and quantifying expected benefits and
► Segment customer groups and to create more granular ad emerging costs, with a clear road
push product upgrades and segments: map.
cross-selling initiatives ► Additional revenues up to €50 The objective is to define the long-
► Increase customer retention million in five years term big data transformation
and optimize the cost-side of ► High margin expected, main enablers while implementing early
operations (i.e., customer care) costs being data processing IT, value quick wins
► Measure the correlation internal team and external
between customer satisfaction contractors
and customer value ► A few million CAPEX
investment for the big data
Sources: GSMA; company data; EY analysis infrastructure
Page 26The EY Customer Analytics platform develops advanced models
and visualization tools for customer life cycle management
A toolset that works across Description Value for operators
three data dimensions
► Build the company customer ► Monitor business performance
segmentation by segment
Profiles Description % Base Bundle ARPU Tenure ► Provide to operators the ► Optimize targeting actions per
Customer
A
Old customers that joined the company
1 Legacy 1P CATV customers 14% 1P. CATV €17,0 20 years
before the year 2000
customer profiling model customer profile
Customers that joined as 1P, are active
2 1P customers ready for migration 9% 1P. CATV €25,0 11 years
but never migrated to other bundle
Opportunistic and always on the move Young customers, always looking for
3 3% 2P. DTV-BB €58,8 5 years
customers better options / prices
Customers that are close to the end of
4 At risk customers 2% 3P. DTV €54,4 1 year
their engagement period (around 12m)
Customers that joined the company
profiling
5 New customers 3% 3P. DTV €40,8Customer Analytics platform stands as a powerful tool, unifying
customer profiling, CLV and customer experience analytics into
one model
Advanced customer analytics and business intelligence modules
Customer profiling/personas CLV Churn prediction Value from CEX
Socio-demo, product, value and Automatic CLV calculation next ► Possible to establish churn ► Multiple customer satisfaction
usage-driven segmentation — to each customer and by profile and root cause analysis analyses (NPS-CLV
based on statistical approach (ARPU, margin, churn, cost ► Churn prevention analytics correlation, super detractors
to serve) campaigns focus, CEX deep dives)
– Customer analytics platform data set –
~200 data points per Product, Data available at
customer (up to 350) Socio- offers and customer ID level
demo Revenues
CPEs
~12m customers Customer Channels and 12 months revolving
movements Usage
profiled interactions history
NPS Cost-to-serve Digital Automatic monthly
~2.5b data points update of customer
profiling and CLV
Country 1 Country 2 Country 3 Country 4 Country 5
Page 28Telcos can leverage analytics to improve performance and
efficiency of both their front-end and back-end activities
Growth Optimization Protection
Maximize Identify new Improve customer Improve Optimize support Regulatory
revenue revenue streams experience productivity and functions and compliance
and loyalty efficiency processes
Commercial Strategy and Programming Supply chain and
business development fulfillment
► Improve analytical model ► Monitoring competitor ► Optimizing the programming ► Optimize distribution through
supporting lead generation, behavior using web scraping to increase viewership based real-time event triggering
acquisition, up-selling and and bots to gather intelligence on customer behavior data ► Reduce inventory leakage
cross-selling and develop tactics and analyzing the customer thru IoT
► Real time reaction to ► Brand image analysis and product mix
customer triggers and event ► Subs evolution forecast and
► Content recommendation simulation
supporting up/cross sell and
acquisition
Customer Human resources Advertising Technology
Service (CC and FS)
► Call and contact prediction on ► Optimize hiring process ► Introduce targeted advertising ► Predictive STB maintenance
specific events (e.g., social ► Measure employee revenue stream and life cycle through IoT
media analysis and speech performance ► Introduce interactive and ► Predict systems, network and
analytics) ► Predict employee attrition targeted advertising in signal outages
► Call and on field visit real time ► Increase cybersecurity
avoidance through proactive through predictive modeling
management and simulation
Page 29From similar projects in telco space, EY experienced firsthand the
tangible benefits of a robust customer analytics practice
Illustrative — not exhaustive
Impact of customer analytics-related activities on telecom operators’ performance
Area Customer analytics-related activity Impact
Revenues New business Data monetization Sell off anonymized customer data +100%–200% revenues
Targeted advertising Target ads based on customer profile +100%–200% revenues
Marketing and Churn Reduce churn by identifying key groups of -10%–20% churn
sales customers at risk
Customer profiling Increase revenue through personalized offers +1%–3% ARPU
Social Use client feedback to optimize product portfolio -5%–10% churn
and service
Audience and content Analyze viewership for commercial decisions -5%–10% content spend
Billing and collection Reduce fraud and false invoices +1%–2% revenues
Pricing Optimize pricing decisions +1%–3% ARPU
Campaign management Improve campaign efficiency and effectiveness +40%–80% conversion
OPEX Customer Contact center Use call elimination and quality improvement -5%–10% calls
operations Fulfillment Reduce faults, fallout and cancellations -5%–10% fulfillment costs
Omnichannel Lower cost to serve by improving channel mix -5%–10% cost to serve
and service
Supply chain Reduce truck rolls by better understanding the customers’ -5%–10% supply chain costs
reasons
Corporate Procurement Use client feedback to optimize the spending on -2%–5% spend reduction
CPEs/handsets
HR Increase the learning effectiveness and reduce turnover -10%–50% learning costs
(call center)
Network Network maintenance Predict outages using customer network data -5%–10% maintenance
Page 304
4 EY offerings for telcos’
digital transformationEY has established five distinct digital offerings reflecting the
holistic set of challenges that digital creates for our clients
Digital enterprise Experience Digital trust
strategy transformation
Incubation and Digital
innovation operations
We help our clients We establish an We analyze the world We align, optimize We scan the digital
rethink their end-to-end of the customer, then and automate risk horizon
business strategy innovation capability design and operations and and help our clients
and operating model to incubate new implement new supply chain to build agility
for a digital age. ideas and business experiences. deliver on the to respond to
models. promise of digital. digital risks.
Page 32EY possesses a dedicated multidisciplinary team to accompany
telcos in their digital transformation
EY has a cross-functional team dedicated to EY digital assistance to reinvent businesses
digital transformation in a digital world
Change Internal multidisciplinary teams dedicated to digital,
Digital strategy Data these are supplemented by functional and sectorial
management
consultants scientists subject matter professionals
professionals
A broad range of offers to accompany digital
Cybersecurity Service transformations
IT professionals
professionals designers
Functional professionals “Advanced analytics” solutions to inform and simplify
the processes of making key decisions
A “digital factory” approach that favors rapid
Finance development and appropriation of innovation
Client
and
Strategy Marketing relation-
internal
ships
audit
A “digital lab” that offers organizations digital
transformation support in a joint development spirit
Supply
chain IT A global and multi-sectorial approach to digital
HR
and systems transformation of organizations
purchases
Page 33EYs digital offers serve telcos transformation
1 2 3
Digital growth and Telcos’ customer Telcos’ operations
innovation for Telcos experience transformation digitalization
Digital growth strategy Customer experience Digital Supply Chain
digitalization
Digital due diligence Digital finance
Digital-driven omnichannel
Digital innovation and Digital HR
digital factory
IT digitalization Data governance IT security
Page 34We work to help deliver digital solutions to your needs, combining
our technical, scientific and functional experience
Company Group Company Category Amount
Tout Tout Tout Tout Tout Tout Tout $0M $1,348M
Purchase To Pay Process Map Company Group Category
Europe $222M Non Inter-Company $268M
America $211M Inter-Company $182M
Oceania $12M
Asia $4M
$8M $579M
$0M
$840M
Company Vendor
$0M $1M
$0M $10M US10 - XYZ USA $200M 9900033592 - XYZ Equipment Poo.. $55M
GB10 - XYZ UK LTD $112M 0000152477 - Chase NYC $47M
$0M $0M $0M $1M ES10 - XYZ España SA $98M 0000123349 - BANK MENDES GA.. $45M
PL10 - XYZ Polska Sp. zo.o. $12M 9900033027 - ABC Enterprise Ltd .. $45M
$24M $0M $589M User Transaction Code
$209M
$0M
$589M RODRIGES - Anonymous $197M FB01 - Post Document $299M
VERCAUC - Anonymous $89M FB60 - Enter Incoming Invoices $132M
$300M WHEELES - Anonymous $51M FBVB - Post Parked Document $12M
$1M
BASWARE1 - Anonymous $36M FV60 - Park Incoming Invoices $3M
BARNARI - Anonymous $31M FBR2 - Post Document $2M
$12M $449M $12M $3M WF-BATCH - Anonymous $11M FBS1 - Enter Accrual/Deferral Doc. $1M
$166M
$187M Account Document Type
0000031210 - National Vendors $261M KR - Vendor invoice $269M
$12M
0000031300 - Inter-Company Paya.. $177M P3 - IC PAL Vend Invoice $171M
$0M $17M
$1M $32M $2M 0000031310 - Inter-Group Payables $3M Z4 - IR - Auto Depot Exp $6M
0000031220 - International Vendors $3M
KZ - Vendor payment $1M
0000031290 - Employee Ledger $2M
$1M
ZA - Employees Reclasific
$1,146M 0000031227 - Vendors With Debit .. $1M
$1M $0M
Posting Key Posting Key Scheme
31 - Invoice $449M 31_40 $229M
$202M
31_40_50 $169M
$0M $10M $1,348M
$12M $51M
31_40_60
31_71 $0M
$0M 22_31 $0M
Trend
$0M
$80M
$60M
$1M $1M $0M $40M
$20M
201201 201202 201203 201204 201205 201206 201207 201208
Spend cube 2.0 Social media Audit explorer/satellite Cyber intelligence
2. STOCK OVERVIEW
Sales / Predictability per Segment - CN Stock Value (1) # Live EAN (1) MONTH FILTER
Shipments (1) February 2016
X Y Z
55 148 70 Tout
(cov) (cov) (cov)
A €2.5M (ship) €1.8M (ship) €0.6M (ship)
€4.2M (stk) €3.2M (stk) €0.7M (stk)
Tout
113 (cov)
176 (cov)
213 (cov)
B €0.2M (ship) €0.2M (ship) €0.3M (ship) CN
€0.5M (stk) €0.6M (stk) €0.9M (stk) 931
€5.8M €11.4M
items
(All affiliates)
146 (cov)
204 (cov)
431 (cov)
C €0.1M (ship) €0.1M (ship) €0.1M (ship)
€0.2M (stk) €0.3M (stk) €0.7M (stk)
COVERAGE
55
(cov) 200
O €0.0M (ship)
300
€0.0M (stk)
431
Sales / Predictability per Segment - (All affiliates) Shipments (2) Stock Value (2) # Live EAN (2)
X Y Z
60 (cov)
108 (cov)
181 (cov) Sales / Predictability
A €9.1M (ship) €6.3M (ship) €4.6M (ship) A/X
€18.8M (stk) €14.9M (stk) €15.5M (stk)
A/Y
A/Z
90 (cov)
160 (cov)
238 (cov) B/X
B €1.2M (ship) €1.0M (ship) €1.8M (ship) B/Y
€3.1M (stk) €3.4M (stk) €8.4M (stk) 3,813
€25.2M €72.7M B/Z
items
C/X
123 (cov)
188 (cov)
369 (cov) C/Y
C €0.3M (ship) €0.3M (ship) €0.6M (ship)
C/Z
€1.4M (stk) €1.9M (stk) €5.3M (stk)
(cov)
O €0.0M (ship)
€0.0M (stk)
Analyze FEC Resource optimization Supply chain analytics CBCR data visualization
Weather-sensitive sales Process mining HR cockpit 360° Sales force sectorization
Page 35EY Advisory has relevant references of telcos digital transformation
Operator type Project name EY support/added value
► EY supported the end-to-end digital transformation for the customer
experience transformation project, working mainly on:
Tier 1
Customer-led digital ► Identification of the key customer pain points/definition of the customer journey
European telecom transformation ► Definition and implementation of Customer Experience improvement initiatives
operator
► Run of digital sprints, from “the customer stories” to the “minimum viable product”
with a three-month cycle to assist in implementation
► End-to-end asset management solution: real time asset tracking, supports
redeployment of assets and consequent capex avoidance, Enables supply
Global leading chain analytics
Digital Asset
operator (Europe, Management ► Improved monitoring and informed decision making for end to end lifecycle
MENA, APAC) tracking of assets, improved utilization / deployment of existing unused assets
► Use of mobile app to ease field operations and enable real time asset tracking
► Benchmark of multichannel disruptive initiatives
► Assessment of multichannel maturity and performance of six operations
Tier 1 Digital-driven in Europe
European telecom omnichannel strategy
and blueprint ► Definition of the multichannel blueprint and vision
operator
► Detailed specification of 12 concrete multichannel use cases, including
organization, IT and processes impact
► Digital maturity assessment vs. best in class
MNO Digital transformation ► Definition of the three-year digital strategy and road map
in MENA execution ► Implementation of quick wins: new website launched, mobile app
► Specifications of key digital projects: E-care, social CRM
Page 36EY Advisory has relevant references of telcos digital transformation
(continued)
Operator type Project name EY support/added value
► Conducting a Pan-European Digital MVNO feasibility study in four European
Pan-European Digital markets
Tier 1 operator in
MVNO strategy and ► Building a disruptive customer value proposition (price, all-inclusive, digital,
Europe and MENA feasibility study customer experience)
► Defining a lean organization model and digital-oriented processes
► EY and the client worked together to shift the customer service paradigm
through digitization in face of declining market dominance.
Tier 1
Shifting the customer ► This included the following:
operator in service paradigm ► Transformation of governance of digital channels
New Zealand ► Key risks and controls to manage digital interfaces
► Streamlining of social media channels
► EY supported the client in deploying a large-scale digitization project
revolutionizing telecoms in the country.
► Through the EY Go-To-Market strategy and digital operating model for
Go-To-Market strategy
Greenfield telecoms customer operations, the client benefited from the following:
and digital operating
operator in India model design ► Significant lead time reduction for activation
► Paperless activation — a first in India
► Customer experience as a differentiator using digital approach
► Designed digital concepts
► EY assisted the client in achieving significant productivity improvements and
Tier 1 Productivity and improved customer services to gain a competitive advantage in the market.
customer services
operator in transformation ► The process redesign allowed productivity improvements; reductions in costs;
Australia program and reduction in transaction times, variance and rework, resulting in
annualized benefits of approximately US$650m.
Page 37More than 5,000 EY collaborators work on digital-related topics
1,000 250 950
Customer experience Innovation and incubation Digital strategy
Analyze the company environment Put into place innovation structures Develop digital strategies aligned
to design and implement new to incubate and test new ideas and with long-term vision and integrated
journeys and solutions business models within the company strategy
Transform and automate operations,
Understand and manage digital and align the organization to Develop and construct the
risks, especially fraud and facilitate digitalization and reduce technology underlying digitalization,
cyber attacks operational costs particularly use and analysis of data
Digital operations and
Digital security organization Technology and data
400 1,100 1,600
# of EY collaborators
Page 38EY digital telecom community
Prashant Singhal, Partner, EY Global Telecoms Leader Bart Van Droogenbroek, Global Telecoms Tax Leader,
Luxembourg
Industry subject matter professional, leading transformations for
operations and selection, pricing, distribution and launch Network Supply chain management as well as financing, holding and
convergent
strategy technology and
intellectual property structures through Luxembourg
infrastructure intermediate entities
Amit Sachdeva, Partner, EY Global Telecoms Advisory Lead Joanna Truffaut, Director, UAE
Products and
services
Industry advisor, leading transformations for operations and Has led major engagements in digital transformation, digital
selection, pricing, distribution and launch strategy business, operating and technology models, digital ventures
investments, cybersecurity and innovation
Fulfilment
assurance
and billing
Laurence Buchanan, Partner, EY Digital Advisory Leader Praveen Shankar, Partner, UK
EMEIA Lead digital partner, specializing in digital transformation, Customer Leads the UK and Ireland supply chain team in the telecoms,
interface
customer experience and CRM; has led digital transformation operations
media and technology industry sector
initiatives for clients including TMT, retail, GPS, auto and
pharma
Talent and culture
Vincent Douin, Partner, TMT Industry, EMEIA Adrian Baschnonga, Associate Director, UK
Fifteen years of experience in telecoms, with capabilities/ Lead analyst at Global telecoms center, responsible for EY’s
Partner and
experience in emerging markets, marketing and sales strategy ecosystem thought leadership output
and go-to-market
Enterprise
Patrick James, Partner, UK technology Joongshik Wang, Partner, Singapore
Digital strategy transformation specialist, projects across the Capabilities/experience in commercial due diligence,
customer life cycle (CRM and e-commerce platforms turnaround strategy, digital business and strategic marketing in
implementations) in airlines, telco, banking, insurance, Devices telecoms and media industry, payment and retail industry
government, automotive and consumer products industries
Pierre Beaufils, Partner, USA Regulatory GK Anand, Director, India
Marketing strategy expert in the TMT industry with 15 years of Customer experience and service strategy design, business-
consulting experience wide cost reduction, IT strategy and transformation
Page 39EY | Assurance | Tax | Transactions | Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. © 2017 EYGM Limited. All Rights Reserved. EYG no. 00784-174Gbl BMC Agency GA 0500_09184 ED 0417 This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax or other professional advice. Please refer to your advisors for specific advice. ey.com
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