Digitization - The Growth D irver

Transcription

Digitization - The Growth
Di
Driver
20 March 2015
Presented by Ashish Garg
(garg.ashish@bcg.com)
Di i l world
Digital
ld – the
h disruption
di
i
Ubiquitous
q
connectivity
y
from greater access to faster
broadband networks
Ever-expanding
p
g universe
created by digital content,
apps and social networks
Mobile devices
Monthly mobile data traffic
Amount of data created
4
Billions
22
2.2
2
1
2.6
4
+259%
+1156%
2
0.6
Zettabytes3
4.4
3
2
+270%
6
Exabytes2
1
1.2
0.2
0
0
2010
2014
0
2010
Smartphone
2014
Tablet
2010
2014
Wearables1
Note: All figures global
1. Includes fitness and health wearables 2. EX = Exabyte = 1M terabytes, 3. ZB = Zettabyte = 1M Exabytes
Source: Ovum, Forrester, Statista IDC, KPCB, Internet Trends 2014, Internet Live Stats, Cisco VNI Mobile, Company website, BCG
Research
IDFC Alternatives Digitzation 20March15 Fin.pptx
Copyright © 2015 by The Boston
n Consulting Group, Inc. All rights reserved.
3
Smarter devices
enabled by exponential
growth in processing power
1
I
Increasingly
i l rapid
id adoption
d i off iinnovation
i
Time
i
to reach
h 1bn
b users has
h b
been halving
h l i with
i h each
h new technology!
h l
!
2
Th internet
The
i
is
i changing
h
i
Learn/
inform
Work
HOW WE
Connect/
play
Move
Better our
world
Spend/save
3
The intensity of impact and reach makes it a
game changer
h
Breakthrough/
Spillover reach
LEARN
INFORM
MARKET
CONNECT
Reach
h
% of total internet users impacted
High
50-100%
internet
users
GOVERN
ENTERTAIN
CONNECT
MARKET
SHOP
LEARN
Medium
20-50%
internet
users
MOVE
ENTERTAIN
INFORM
SHOP
INVEST
Low
<20%
internet
users
GOVERN
MOVE
INVEST
Inform/ Improve
Replace
Reach-out
Better the world
Better information
leading to better choices
Convenience, discounts
and higher variety leading
to replacement/
fulfillment
Reaching out to new
customers who earlier
didn't have access to
certain products/ services
Improving
i livelihood
i i
and
well-being
Intensity of Impact
CURRENT
POTENTIAL
Beyond the internet
population
4
933mn
213mn
130mn
mobile
bil subscribers
b ib
i t
internet
t users
social
i l media
di users
#2
#3
#3
in the world
in the world
Expected to move
to #2 in 2015
Source: Emarketer, IAMAI, Techinasia
in the world
Expected to move
to #2 in 2015
I di racing
India
i ahead
h d in
i Digital
Di i l
5
Internet contribution to GDP set to grow at 21%
Financial Services already large and growing
4.6%
4
6%
GDP
10,000
~9,480
~1,800
~2 700
~2,700
~150
~80
~3,600
~1,520
~780
~270
~740
~20
~340
~50
~730
,
~2,200
~1,340
0
~90
~210
2013
2018
Total
eComm Services + Fin. Services
19%
eCommerce - Products
59%
Advertising and classifieds
25%
Online content
31%
Devices
16%
Connectivity
16%
Private Infrastructure
11%
Government Spend
19%
Note: Assumes overall 12.9% nominal, 6.3% real growth rate (IMF forecast)
Source: GFK, Gartner, FICCI/KPMG, OVUM, IMF, Ernst & Young estimates of share of eComm businesses, BCG analysis
21%
3.2%
3
2%
GDP
B INR
2013–18
CAGR
6
Di i l influence
Digital
i fl
– the
h untold
ld story
OVERALL
Digital
sales
Digital
influence
Digital
g
footprint
Source: BCG CCCI Digital Influence Study 2013
2.5x
6%
of all buyers purchase online
15%
of all buyers engage in at least
one of the many activities of
the purchase cycle online
28%
of all buyers are internet users
Among
urban
consumers
7
1/3 off media
di consumption
i on di
digital
i l
Share of different media in total consumption
100
80
36
60
40
50
20
0
Average
g
Print
Digital
TV
14
8
D
Doesn't
' vary by
b town class
l
or age bracket
b k
Share of different media in consumption
Town class
Age-group
Share of different media in total consumption
14
11
36
38
50
Average
g
14
16
12
14
14
16
39
34
41
39
34
32
51
47
49
47
48
52
52
Tier 1
Tier 2
Tier 3/4
18-25
26-35
36-45
46-55
80
60
40
20
0
Print
Digital
TV
100
9
Bh
Bharat
is
i coming
i – move over metros
Distribution of internet users across India
100
50%+ Users
already
beyond
y
top
p
100 cities
33%
80
31%
60
22%
27%
40
21%
20
33%
24%
0
2009
Rural
2013
<5 lakh towns
Source: IAMAI Internet in India, 2013/12
Non metro town >5 lakh
Metros
9%
10
10%
25%
of all Google BFSI
searches were
through mobile
of all Google BFSI
searches were
through mobile
2010
2013
India Financial Services
Source: Google data
M bil behaviours
Mobile
b h i
recasting
i the
h mold
ld
11
NPCI
Credit bureaus
(National payment
corporation
i off India)
I di )
(CIBIL, Experion,
E i i High
Equitrix,
Hi h Mark)
M k)
Business
Correspondent (BC)
network, Ultra small
branches (USB), micro
ATMs
Mobile vans and
m-POS devices
Aadhar
Small finance and
payment banks
Electronic and
mobile payments
(NEFT/ RTGS/ IMPS
and ECS)
White label ATMs
(WLAs)
Financial infrastructure is surprising becoming
agile
il and
d supportive
i off di
digital
i l
12
More examples and learning
How to win
A
Agenda
d
13
Indian Railways
y Web and Mobile bookingg
platform has been a historic success
In the last 5 years,
ears IRCTC has seen
phenomenal growth
+25%
600
+900%
500
00
"IRCTC passengers can now order
Dominos pizza on the go"
400
400
"IRCTC introduces cash-on-delivery for
railway ticket bookings"
200
27
40
2002
2008
0
Source: Press search
2011
2014
# of ttickets bo
ooked/ da
ay
# (K)
New offerings and partnerships are
Ne
helping scale up business further
14
Cab aggregator Ola is changing our taxi
experience
i
Ola has 24,000+ cabs in 15+
cities
Recently, Ola extended services
to auto rickshaw aggregation
Loyalty options include referral
rewards and cash backs on
frequent booking
User friendly app and wallet is
increasing loyalty among end users
Reload
money
Book
a ride
Refer
friends
Ola is one of the largest radio
taxi operator in India
15
Wearable and internal sensors enriching
data to increase the breadth of care
management offerings
MC10 "Stretchable
Stretchable Electronics
Electronics"
• They can be installed in shirts, shoes, or even as
temporary tattoos in the body
• The sensors can measure: heart rate; brain activity;
body temperature and hydration levels
• Data will need be shared seamlessly between customers,
providers,, and payers
care
p
p y to deliver the best possible
p
Proteus' "Ingestible Pill"
Proteus
• A UK-based company has developed an internal
monitoring device, a "Digital Health Feedback System"
• The system combines wearable technologies and
microchips
p the size of a sand g
grain which can be
embraced in a pill
• Powered by your stomach fluids, the pill emits a signal
picked up by an external sensor, capturing vital data
Source: BCG Reserach
MC10 (2012)
16
Some digital players in education have more
than
h 3 million
illi unique
i
visitors
ii
per month
h
(Unique
visitors per
month)
Search and Admission
Course Creation and
Delivery
Assessment and
Tracking
Out Placement /
Extracurrics
Preschools
K-12
Higher
Education
Tutoring
(20,000)
Test Prep
(1,530,000)
(66,000)
(174,000)
( 6
)
(3,460,000)
Vocational
/ Corp.
Training
High Digital Presence
Mod. Digital Presence
Low Digital Presence
(609,000)
17
PAYTM has created a market leader
position
i i in
i under
d 1 year
About 25 Mn registered wallet users
Large marketplace of merchants (~18,000
( 18 000 and counting) – includes most players
who are leaders within their segment
Introduced the Immediate Payment Service (IMPS) on its platform to allow
m-wallet users to transfer money into bank accounts
Future plans include opening ~50,000 retail outlets for users to load cash
About $5 Mn worth of transactions processed every month – more than a million
transaction a day
18
Telcos uniquely position to build Digital
b i
businesses
Service management
g
Customer profile •
•
•
•
•
Unique identifier
Data/voice plan details
Payment
y
historyy
Demographic information
Other services (e.g., TV)
Utilized for new
business models
Loyalty program
Device information
Targeted ads
• Customer category
• Customer care history
• Brand/Model/Series
• Features/Technology
• Device history
Location/movement data
Usage information
• Current location
• Roaming countries
• Frequently visited
locations
• Mobile Internet
– Browsing/usage
– Content download
• Voice/SMS/VAS
• Other services
– Type, revenue
1. Estimate only includes car, ski, and travel
Note: for Micro-credit and Payment guarantee a bank license is required
Source: Orbis, Gartner, Forrester, insurance publications, BCG analysis
Micro-credit
...
A wealth of cusotmer data potentially
available to telcos
19
Digital chat ~45% cheaper
than call centers due to
operatives handling multiple
chats in parallel
Source: Web research
A d cost saving
And
i with
ihb
better experience
i
20
Amazon has translated Digital theme
in their back end
21
BHP Billiton
Billi
22
D
Drones
for
f agricultural
i l
l use
23
More examples and learning
How to win
A
Agenda
d
24
Customer Expectations Being Driven Very High
b their
by
h i Experience
E
i
ALL Di
Digital
i l Companies
C
i
Customer requests are simple, but require seamless integration across digital channels
% agree
Never ask me to fill the same form twice for info they already have
89%
Notify me anytime there is a transaction, payment or account change
86%
Able to contact my bank for 24 X 7 support
86%
Have a single online login
83%
Provide me with real-time information on status of requests, applications etc.
84%
Make it easy to speak to an expert on any banking product
84%
Lower myy fees if I am willing
g to do a lot of things
g on myy own
80%
Have easy on demand access to customer service
79%
Offer seamless data transfer between online, phone and branch
76%
Provide me personalized offers in real
real-time,
time, that are right for my needs
76%
Able to obtain new products in 2–3 clicks
78%
Website user interface customized based on my accounts and preferences
76%
I t
Integrated
t d access
D
Dynamic
i customization
t i ti
D t d
Data
driven
i
ttailored
il d advise
d i
Source: BCG consumer study (April 2014) for digitally influenced customers
E ll
Excellence
iin d
delivery
li
Best in class
UBER
Apple
Google
ebay
amazon
I t
Interactive
ti access
To what extent do you agree with the following statements about your bank?
25
E
Every
company is
i becoming
b
i a DIGITAL company
Size of
impact
Value x 1-∞
Value x 5
5-10
10
3
Business model innovation
2
1
Cost reduction
• Reduction of unit cost of
Technology services
• Commoditisation and
externalisation of
Technology
Business transformation
• Enhancement of
business processes
• Improved efficiency,
automation and agility
• Enablement of new
ecosystems and new business
models
• High innovation leading to
creation of new products and
services
Nature of
impact
Source: BCG experience, cloud analysis
Value x 5-10
26
Key success factors to win in the digital world
People &
Culture
Technology
Digital technology
adoption
Business model
innovation
Flexible
architecture
Adaptability
Integrated systems
and
d data
d
Digital
talent
Analytics driven
decision making
Operations
Organizational
g
agility
Seamless multichannel presence
Culture of
experimentation
Participative
enterprise
Strategy
Digitally
advantaged
27
Thank you
bcg.com | bcgperspectives.com

Digitization - The Growth D irver

Transcription

Similar documents

Associate Consultant Financial Services

here

About Clerys: Side Room Function Space

Presentation in PDF format - Center for Digital Strategies

Fact Sheet

collaborations - Women Of The World

Online Casino Games Without Downloading

ABS Consulting - SANS Institute

Rally Flyer - The Massachusetts Teachers Association

a boutique consulting firm