CSP 2.0 Operator's Digital Transformation with New Revenue Opportunities

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CSP 2.0 Operator's Digital Transformation with New Revenue Opportunities Deloitte predicts that in 2017, operators What are the challenges to conquer? in India would undertake broader CSP 2.0 – THE 3D APPROACH digital transformation programs on How to increase What are the new two fronts: on one front some digital operational efficiency revenue channels transformational programs would be designed to enhance customer experiences by adding more digital Operational Revenue interaction points with focus on Efficiency Generation customer acquisition, customer relationship and customer value management. On the other front, CX there would be urgency shown to Enhancement define digital transformation programs to unlock new revenue generating business models. While some degree How to deliver what a customer wants of transformation is already happening on the customer life cycle management side but the pace to identify new business opportunities is slow. CSP 2.0: A quick summary and why it’s important

CSP 2.0 is a two way model where one side comprises end-users who gain access to curated content and personalized applications across service offerings hosted by the service providers. The other side comprises of enterprises and developers, who use operator’s assets to enhance their service offerings.

Operators will focus on exploiting their existing assets and strengths in new ways by moving from a one-sided to a two-sided model – CSP 2.0

Enterprises to see operators as key enablers CSP 2.0 operators to share assets and Transformation of business models towards and business partners in their own digital capabilities with partners in the form of B2B2C and B2B2B services transformation journey Applications Programming Interfaces (API’s) to enterprises

CSP2.0 Core Assets

New Content New Revenue Streams New Users New Applications New Platforms

Key Takeaways

Digital Transformational Programs Customer-centric models- Focus will API services - Operator assets and designed to enhance customer be on customer acquisition, customer capabilities are provided in the form of experiences by adding more digital relationship, and customer value “Application Programming Interfaces” interaction points. management (APIs) which can be customized to provide cross-sector offerings. Example: Banking, Automotive, Online Service Providers, etc. Developers could explore the operator APIs to enrich digital user experience of their applications across genres and some of these APIs can also help them to market the apps/content to specific target segment. CSP 2.0 Process Flow

Enterprises and Third Party End Users Developers

New platforms like App Developers Service Delivery Platforms (SDP) and Enablers will allow IoT App Vendors telcos to provide their Telco Assets assets and capabilities & Capabilities to Northbound New Platforms customers and earn Finance Core revenue Services Subscriber Content Management base Health and Service Delivery

Subscriber Platforms together, Assets & with other enablers, Segments Media & capabilities can act as catalyst for

Content Entertainment innovation with quick Subscriber Management time to market of Devices content. Education New Platforms Information on customer interests based on their usage Automotive and behaviors will help Northbound customers Analytics New value creation in Mobile Advertising Utilities and Marketing Operator Assets – CSP 2.0 Model To expose these APIs, from the technology (SOA) as API gateway is needed. SDP/SOA network and IT elements and converts these point of view, a Service Delivery Platform integrates with various enabling platforms functionalities and capabilities into APIs. (SDP) or a Service Oriented Architecture like location, messaging, billing and other

Digital Identity and GSMA Mobile Connect - Establishing SIM based Identity Authentication authentication

Micro Billing and Billing with in-app purchasing and semi-closed wallet capability Payment Mobile Wallet helps in charging telco’s entire customer base

An easy and practical way to increase user engagement, improve SMS Messaging customer service and loyalty, and drive more sales. Operator Assets Use telco provided based geo-location of the device in a variety of Location context.

Device Device Capabilities service provides information such as the make, Capabilities model, of device . Helps in segement targetting

Customer Provides information on customer preferences based on the usage Information Interest and behaviour patterns

Advice Advice on Privacy from customer for sharing location / on Privacy DND / Profile etc. embedded in respective APIs

Allows an application to query the SIM exchange details SIMEX of a subscriber.

Deloitte predicts that in 2017 and beyond, Indian enterprises across industries and sectors would see operators as key enablers and business partners in their own transformation journey. Most enterprises in India would embark on transformation programs in order to fine tune existing business and operational efficiencies, improve productivity and performance, and enhance reliability.

Deloitte brings along experience of administering a digital transformational API Commercialization program from “envisioning” to “execution” Deloitte has the experience to launch through a self-help portal, test, and deploy increased customer retention and loyalty. Service Delivery Platforms (SDP) that new compelling and innovative applications. provides external developers with easy- Deloitte has end-to-end experience to to-use, scalable access to operator API All the operator assets and capabilities can build, deploy, integrate and support API service layer using a Service Delivery be positioned as APIs, for example, Location monetization models by leveraging on its Platform as PaaS The intention of the as a Service (LaaS), Demography as a Service Digital Transformation Framework and by platform is to open a new channel for 3rd (DaaS). When used, the new applications creating distinctive Digital Maturity Model for party developers and various established would encourage subscribers to use the operators. companies and enterprises to onboard services and drive new revenues through Deloitte is recognized as an industry leader (1 of 2) The marketplace recognizes Deloitte’s IoT consulting services and adjacent capability areas High

PwC Bearing Point Deloitte Cognizant IoT Accenture Booz Allen Hamilton Kennedy has ranked Deloitte Dell IBM CGI among market leaders for IOT- CSC Protiviti McKinsey & Company Tech related professional services Capabilities Capgemini KPMG Mahindra Hitachi Consulting Cisco EY Infosys

Depth of Consulting Atos Consultancy Services Tata Consultancy Services Low Low Breadth of Consulting Capabilities High

Advancing Service Breadth or Depth Neutral Diminishing Service Breadth or Depth Source: Kennedy Consulting Research & Advisory; Internet of Things IT Consulting 2015; Kennedy Consulting Research & Advisory estimate © 2015 ALM Media Properties, LLC. Reproduced under license High Capgemini Consulting McKinsey & Company Deloitte CGI Digital Operations The Boston Kennedy notes Deloitte’s Hitachi Consulting Consulting Group position as a Vanguard firm A.T. Kearney Accenture within Digital Operations Bearing Point PwC Capabilities EY Consulting IBM

Depth of Consulting PA Consulting Cognizant Bain & Company Tata Consultancy Services KPMG Low Low Breadth of Consulting Capabilities High Advancing Service Breadth or Depth Neutral Diminishing Service Breadth or Depth Source: Sources Digital Operations Management Consulting Kennedy Consulting Research & Advisory High McKinsey Digital Razorfish Digital Innovation BCG Digital Ventures R/GA A.T. Kearney Deloitte ALM Intelligence notes Cognizant Digital Works Bain & EY Digital Company Deloitte’s position as a IDEO Prophet Capgemini PwC Digital Services Vanguard firm and leader Roland Berger

within the Digital Innovation Capabilities Accenture Interactive

Consulting space Depth of Consulting Continuum Innovaion IBM Interactive Experience Smart Design Worldwide Tata Consultancy Services ?What If! Innovation Partners Low Low Breadth of Consulting Capabilities High

Advancing Service Breadth or Depth Neutral Diminishing Service Breadth or Depth

According to ALM Intelligence: “Deloitte was one of the first [large consulting firms] to recognize the extent to which the digital revolution was going to change both its clients’ industries and its own consulting business…

Having gained an early lead over its competitors, Deloitte Digital shows no signs of losing momentum.” Deloitte is recognized as an industry leader (2 of 2)

Risky Strong Bets Contenders Performers Leaders Strong

Deloitte IBM Accenture E&Y KPMG Wipro PwC HP Verizon Current Cybersecurity offering BT Global Services Forrester places Deloitte as a Leader in the Information Security Consulting Services space

Market presence

Weak Weak Strategy Strong

Source: Forrester Research, Forrester WaveTM: Information Security Consulting Services Q1 2013”, Ed Ferrara and Andrew Rose, February 1, 2013

Vanguard Booz Consulting Practices Allen Hamilton Deloitte Wipro PwC Accenture Slalom HP E&Y Capgemini Protiviti Analytics CSC Kennedy places Deloitte as the dominant firm in Cognizant PA Cons. Atos KPMG IT Analytics services Booz & Co. Logica IBM McKinsey A.T. Kearney Depth of Consulting Capabilities North HP BCG Highland Bain & Co.

Breadth of Consulting Capabilities Source: IT Consulting: Analytics, 2014, Kennedy

Note: Kennedy & Forrester are leading sources of market analysis on the Management Consulting industry

According to Kennedy Consulting Research & Advisory: “Deloitte’s broad analytics offerings range from high-level strategy sessions to solutions implementations managed services and managed hosting…

Its approach to each analytics engagement is from the business issue down – articulating the problem and then developing a solution, rather than starting with IT and moving up.” Contacts

Neeraj Jain Partner, Consulting - Strategy & Operations [email protected]

Prakash Sayini Director, Consulting - Strategy & Operations [email protected]

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