BT Futurologist DOWNLOAD

It doesn’t happen by magic – why we are the most disruptive part of innovation.

Dr Nicola J. Millard Head of Customer Insight & Futures BT [email protected] @DocNicola

1 British Telecommunications plc 2018 The perils of predicting the future.

2 British Telecommunications plc 2017 BT’s Research and innovationBT’s research and innovation

3rd 3rd 2.8b largest investor in 4900 largest investor in spent on R&D over R&D in the fixed line patents in R&D in the UK over the last five years telecoms sector over our portfolio past ten years past ten years

4th 13k £520m 30+ highest number of scientists employed invested in R&D in direct university patents filed with the worldwide 2016 / 17 research relationships European Patent Office by a UK-based company © British Telecommunications plc 2018 Customer Challenge Cup Agile How BT Innovates… development New ideas scheme Global Collaborative Adastral Park Insight & Development partnerships thought Centres leadership

Showcases

Infinity Lab Applied programmes Research & Workshops Innovation

Hothouses Tech Scouting Strategic University programmes Hothousing – accelerating people led innovation.

Home hub delivery Virtual reality hothouse

5 © British Telecommunications plc 2018 VR & AR as recruitment, training and collaboration tools

Use of 360 degree VR as a Use of AR as an engineer training VR conferencing recruitment and training tool and collaboration tool

6 © British Telecommunications plc 2018 Digital Insight in action: understanding customers customer

Consumer research to understand the customer journey

Belgium Singapore Belgium Singapore Australia

China Spain China South Africa China

UK Germany UAE Germany Spain Hong Kong

USA India UK India UK UK India

USA Indonesia USA Netherlands USA Singapore 1,000 2,500 1,000 5,000 5,000 consumers consumers consumers consumers consumers

2010 2011 2012 2013 2014 2015 2016 2017

The 7Digital Customer 2017, BT Global Services/Cisco/Davies Hickman Partners. British Telecommunications plc 2018 Seeking simplicity: digital customers want easy journeys

2015 2017 Consumers buy more from companies that 66%make it easier to do business with them Convenience is more important 4 in 5 to me than price 49% 56%

Self-service is good because it puts me in control Find dealing with customer 73% service issues exhausting 63% 66%

Agreeing organisations make every effort to make it easy to switch 27% 27% Chatbots will help companies improve their customer between different channels 66% service by making things quicker

Rate as excellent the digital experience (website, by App, 79% I am more loyal to organisations that are easy & smart watch, social media, chatbot, etc) you are given by simple to contact 16% large multi-national organisations

8 Source: BT Global Services/Cisco/Davies Hickman Partners, 2017 British Telecommunications plc 2018 Smartphones are becoming more important in digital experience Used in the last 6 2015 2017 months Often or sometimes… Agreeing they Android 57% 59% would like… smartphone Download a voucher 2017 62% 2015 57% iPhone 26% 31% Visual options on smartphone - when you Home PC/Lap-top 80% 63% Share your location to get discounts/offers 58% call an org you can see 34% 72% the dept. options on your Android tablet 30% 28% screen and select by Downloaded Apps from orgs. get better service 57% touching the screen iPad 27% 23% 42% If organisations made it Commented social media about service rec’d52% cheaper to call them Apps on your 34% 52% 41% 74% from a smart phone mobile/cell/smartphone which link to your Shared your location with friends and family51% location 36% If organisations had the Scanned products in store for the best prices data/information that I 46% have used chat on smartphone to 50% 39% 69% give them in one place contact orgs. (eg via their website) available in another (eg Currently use a smartphone Used a QR code 49% shop, smartphone App or App of an organisation to 36% call centre) contact that org. 21%

9 The Digital Customer 2017, BT Global Services/Cisco/Davies Hickman Partners British Telecommunications plc 2018 Innovation: Micro-apps

Proposition Opportunity • Wraps are the modern micro-app experience for the mobile Web. • Wraps can be used following a conversation with a customer where • They provide superior mobile engagement and offer rich, interactive the agent selects the products/services discussed and on the fly experience without the need for full native apps generates a personalised mico-site which the customer can walk • They are Inherently omni-channel (SMS, email, social feeds, messaging, Web away with. This would work well in an EE shop environment. embed, ads) • A Wrap can also be auto generated following a customer order, • Great engagement drives conversion billing cycle or upcoming engineer appointment. This would be an • Connects with back-end systems to enable advanced user interaction and ideal delivery mechanism for welcome to service messages, transactions

Thanks to Phil Newton British Telecommunications plc 2018 Seeing is believing: video can transform the customer experience

Using 2 to 3 times a week or more In which of these situations would you want to be able to If you could use use video-chat to COMMUNICATE with an organisation on video to see the their website? Definitely and possibly Video advisor & discuss Have a product demonstrated 2017 73% conf. - 63% 12% 25% complex issues or 2015 60% work 2015 2017 have demonstrations Be shown a product or service 71% Video 60% conf. - 10% 27% Speak to your Doctor or health prof. 70% home 2015 2017 If pop-up webchat and 59% video chat interactions 66% are available on all web Discuss your queries about a product/service 70% pages and Apps 58%

Discuss options for new telecoms package 60% 47% 48% You should be able to Discuss your financial services product with advisor 58% Use video to resolve problems switch from the web- 48% with products and services 62% chat to a voice or video (2015, 42%) call (with the same Share experience with other consumers 56% agent) 43%

11 The Digital Customer 2017, BT Global Services/Cisco/Davies Hickman Partners British Telecommunications plc 2018 Innovation: Personalised Video as a Service. BT Personalised Video as a Service is like mail merge for video

Video Customer Personalised template + data = video

Personalised, relevant and effective communication Improving customer service, sales, retention and loyalty

In a pilot for a major financial services provider it achieved:

50% 32% 18% X2 X9 16% replay replay replay the watch video video video Open rate Click rate video within a within a after a day week week

400% increase in loan sales

British Telecommunications plc 2018 Innovation: video enhanced interactions.

Proposition Opportunity • Sightcall offers a simpler Customer Experience to deliver as “see what I see” experience to the customer. • Gives an innovative customer experience to home network and home setup • Very quickly allow the customer to share the issues. smartphone camera to understand a home • Allowing an agent to see what the customer sees can significantly reduce the network/setup problem. time it takes to solve a problem and potentially reduce the need for costly • Agent can take screen shots, annotate a video image, engineer visits. co-browse.

British Telecommunications plc 2017 British Telecommunications plc 2018 Thanks to Phil Newton One step ahead: consumers are impressed by proactive service

Open to sharing my Open to sharing your I would like a notification when… location automatically social media profile 78% My account is going with companies using with your bank / I like it when organisations notice 78% below a minimum I’ve been having difficulty with a GPS if it means I get supermarket / utility website / completing an order and good offers or better provider so they had balance contact me directly to try and help customer service better information about you and can Prices for on-going 70% 57% give you better 83% services are Like personalisation of pages customer service changing depending on the preferences, behaviours, location and device 45% 48% being used by the customer My contract tie-in 83% 30% period is ending 2017 68% 2015 2017 Like organisations using the 2015 I’m buying a new internet to monitor the condition 81% product or updated of products and services you use service

14 © British Telecommunications plc 2018 Innovation: Tailoring proactive contact.

15 Understanding employees: Digital 1,100 Business executives (execs) and 600 IT Decision Makers (ITDM) across 11 global markets. employee

Australia France Germany Hong Kong India Ireland Singapore South Africa Spain UK USA

Gender - global Female 41% Male 59%

Age Under 35 41% Over 35 59%

Source: BT/ Davies Hickman Partners, 2018 16 © British Telecommunications plc 2018 Digital is all about productivity – but what exactly is “productivity”?

Productivity is the main benefit of 81% 91% improving digital experiences (ITDMs) Improving employee Productivity is the India South Australia productivity is our top main benefit of 9 in 10 Africa improving digital 98% 96% experiences (ITDMs) business executives say 97% mobile and collaboration Ireland Spain France technologies have 94% 93% 92% improved the productivity of their workplace. Hong Kong USA UK 81% 50% 92% 92% 89% If I was CEO improving You can tell how hard productivity would be people work from my No 1 priority their IM status (ITDMs) Singapore Germany 89% 84%

Source: BT/ Davies Hickman Partners, 2018

6 Common Reasons Collaboration Tools Fail 1 in 2 • Lack of a central collaboration tool Colleagues have collaboration tools, strategy but don’t know how to use them • No feedback from employees properly (Execs) • Undefined or weakly defined KPIs 91% 67% Say leaders of Say CIOs should • Lack of user training/poor digital skills organisations make sure people • Forced collaboration on employees actively try to know how to use the increase use of collaboration tools • Fragmentation of tools collaboration available to them technology effectively • Lack of purpose

19 © British Telecommunications plc 2018 The Collaboration Conundrum: the double edged sword of diversity & why our inner Neanderthal may hold us back

Poor Rich

Digital Collaboration: Trader connections performance vs. idea flow

Physical spaces: friends meet at a few meaningful places, strangers pass randomly

If you were the CEO of your organisation, what would you say are the most important priorities for enabling you and your colleagues to work effectively at the office? (Execs) Very important: 62% ITDMs

63% BetterWi-fi I would rather my IT 51% Better mobile phone signal department invested in the best 39% Interactive smart collaboration screens technology for use when 38% Bigger and more desktops screens I’m on the move/at 38% Better transport links home than for my desk in the office 35% Recreation area / imagination zone 33% Car parking 32% Video rooms 54% 32% Innovative lighting and furniture Execs Large TV screens on the walls with 29% organisational targets and KPIs 28% More meeting rooms

Communicate Contemplate Concentrate Collaborate

Co-working hub/ Home worker “Coffice” worker

Activity Virtualised based working working

Dr Nicola J. Millard Head of Customer Insight & Futures BT [email protected] @DocNicola

25British Telecommunications plc 2018