Telcos, Internet and technology players, banks and payment networks have disruptive $billion opportunities to act as intermediaries / enablers in mobile commerce and personal cloud services, based on the appropriate use of customer data. This report is a unique and comprehensive strategic guide for success in these roles. It analyses the strategies of the main and cutting-edge players, and outlines key success factors in designing and delivering customer propositions, technology, organisation and value network strategies. It also includes evaluations of the related strategic opportunities of 'raw big data', professional data services, and internal data use, and a business model showing how one type of candidate for the intermediary role, a telco, could grow profitable new revenues equivalent to c.$50Bn (5% of existing core revenues) within five years. (October 2013, Dealing with Dsiruption Stream). Telco 2.0 Transformation Index Small
Introduction – Digital Commerce 2.0
Digital commerce is centred on the better use of the vast amounts of data created and captured in the digital world. Businesses want to use this data to make better strategic and operational decisions, and to trade more efficiently and effectively, while consumers want more convenience, better service, greater value and personalised offerings. To address these needs, Internet and technology players, payment networks, banks and telcos are vying to become digital commerce intermediaries and win a share of the tens of billions of dollars that merchants and brands spend finding and serving customers.
Mobile commerce is frequently considered in isolation from other aspects of digital commerce, yet it should be seen as a springboard to a wider digital commerce proposition based on an enduring and trusted relationship with consumers. Moreover, there are major potential benefits to giving individuals direct control over the vast amount of personal data their smartphones are generating.
We have been developing strategies in these fields for a number of years, including our engagement with the World Economic Forum’s (WEF) Rethinking Personal Data project, and ongoing research into user data and privacy, digital money and payments, and digital advertising and marketing.
This report brings all of these themes together and is the first comprehensive strategic playbook on how smartphones and authenticated personal data can be combined to deliver a compelling digital commerce proposition for both merchants and consumers. It will save customers valuable time, effort and money by providing a fast-track to developing and / or benchmarking a leading edge strategy and approach in the fast-evolving new world of digital commerce.
Benefits of the Report to Telcos, Other Players, Investors and Merchants
For telcos, this strategy report:
- Shows how to evaluate and implement a comprehensive and successful digital commerce strategy worth up to c.$50bn (5% of core revenues in 5 years)
- Saves time and money by providing a fast-track for decision making and an outline business case
- Rapidly challenges / validates existing strategy and services against relevant ‘best in class’, including their peers, ‘OTT players’ and other leading edge players.
For other players including Internet companies, technology vendors, banks and payment networks:
- The report provides independent market insight on how telcos and other players will be seeking to generate $ multi-billion revenues from digital commerce
- As a potential partner, the report will provide a fast-track to guide product and business development decisions to meet the needs of telcos (and others) that will need to make commensurate investment in technologies and partnerships to achieve their value creation goals
- As a potential competitor, the report will save time and improve the quality of competitor insight by giving a detailed and independent picture of the rationale and strategic approach you and your competitors will need to take
For merchants building digital commerce strategies, it will:
- Help to improve revenue outlook, return on investment and shareholder value by improving the quality of insight to strategic decisions, opportunities and threats lying ahead in digital commerce
- Save vital time and effort by accelerating internal decision making and speed to market
For investors, it will:
- Improve investment decisions and strategies returning shareholder value by improving the quality of insight on the outlook of telcos and other digital commerce players
- Save vital time and effort by accelerating decision making and investment decisions
- Help them better understand and evaluate the needs, goals and key strategies of key telcos and their partners / competitors
Digital Commerce 2.0: Report Content Summary
- Executive Summary. (9 pages outlining the opportunity and key strategic options)
- Strategy. The shape and scope of the opportunities, the convergence of personal data, mobile, digital payments and advertising, and personal cloud. The importance of giving consumers control. and the nature of the opportunity, including Amazon and Vodafone case studies.
- The Marketplace. Cultural, commercial and regulatory factors, and strategies of the market leading players. Further analysis of Google, Facebook, Apple, eBay and PayPal, telco and financial services market plays.
- The Value Proposition. How to build attractive customer propositions in mobile commerce and personal cloud. Solutions for banked and unbanked markets, including how to address consumers and merchants.
- The Internal Value Network. The need for change in organisational structure in telcos and banks, including an analysis of Telefonica and Vodafone case studies.
- The External Value Network. Where to collaborate, partner and compete in the value chain – working with telcos, retailers, banks and payment networks. Building platforms and relationships with Internet players. Case studies include Weve, Isis, and the Merchant Customer Exchange.
- Technology. Making appropriate use of personal data in different contexts. Tools for merchants and point-of-sale transactions. Building a flexible, user-friendly digital wallet.
- Finance. Potential revenue streams from mobile commerce, personal cloud, raw big data, professional services, and internal use.
- Appendix – the cutting edge. An analysis of fourteen best practice and potentially disruptive plays in various areas of the market.