Growing the UK’s leading technology support business Newark … · 2018-12-05 · Brand - Senior...
Transcript of Growing the UK’s leading technology support business Newark … · 2018-12-05 · Brand - Senior...
Newark 16th March 2016
Growing the UK’s leading technology support business
Timetable
All
10:15 Introduction from Sebastian James and Andrew Harrison
10:30 Presentation from Andrew Lawley, John Hunter and Anabel Hoult, followed by Q&A
Split into Groups:
Groups 1, 2 & 3 Groups 4, 5 & 6
11:45 Tour of Small Products Warehouse 11:45 Travel to Building 1
12:30 Lunch (Gilstrap & Gladstone Room) 11:55 Tour of Repair Centre
13:00 Travel to Building 1 12:40 Travel to Building 2
13:10 Tour of Repair Centre 12:50 Lunch (Gilstrap & Gladstone Room)
13:55 Travel to Building 2 13:20 Tour of Small Products Warehouse
All
14:15 Wrap up from Sebastian James
14:30 Depart Newark
2
Recap of post-merger value drivers M
ark
et ca
p
Core business Core business opportunities Synergies Connected World Services Services
Core Services Synergies
Knowhow
3
Recap of post-merger value drivers – making great progress
Core business Core business
opportunities
Synergies Connected
World Services
Knowhow
Customer satisfaction at all-time
high
UK pricing most competitive ever
3-in-1 rollout
Greece profitable
New categories
Exit loss-makers
Consolidation opportunities
iD MVNO
Property optimisation
271 UK&I SWAS
Nordics
HO integration in UK,
Ireland and Sweden
Repairs integration completed
Key organisational
structures in place
Earlier than planned
Full rollout of Sprint
Contract signed to provide EE with
mobile phone insurance services
Extension of existing agreement
with a major handset manufacturer
in the US to provide T-Mobile and
Sprint activations
New agreement with TalkTalk for
distribution of broadband and TV
services and hardware
Focus of the day
4
• The last 12 months
– We have been understanding the opportunity in technology services
– There is already a huge market for supporting tech that goes wrong
– It is fragmented today, but big and growing in size
• As technology failure moves from inconvenience to calamity
– We already have an infrastructure that will surprise many
– But it is a hidden gem and needs polishing, ready for the next phase
– We will be the UK’s Digital Leader in Technology Support
• Creating a new long-term growth story for Dixons Carphone
Growing the UK’s leading technology support business
5 5
There is a significant and growing services market…
8m Mobile repairs p.a.
50% TVs connected
to the internet
6m Computers
repaired p.a.
82% Households have
broadband
4.5m Broadband / TV
switches p.a.
25% Adult population insure
their gadgets
Sources: Gartner, Ofcom, DC estimates
6
£5bn addressable services market, supported by a continued increase in connected devices
We estimate 10% market share in aggregate
White goods
£0.7bn
Computing
£2.3bn
Mobile devices
£1.5bn
TV
£0.5bn
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
0
2
4
6
8
10
12
14
16
2014 2015 2016 2020
Installed Base and Spend on Connected Devices
Volume of devices Spend on devices
Sources: Gartner Symposium/ITxpo, Nov 2015
$bn m units £mn
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The UK technology support market is poorly served today
High street
sole traders and
local tradesmen e.g. Pimlico Plumbers
Friends
and
Family
Retailers e.g. John Lewis,
AO, Argos Warranty
providers e.g. D&G
Utilities e.g. British Gas
Peer-to-peer
platform
Telcos e.g. BT/EE
Tech players e.g. Apple, Google
Manufacturers
e.g. Bosch, Miele
8
There is an increasing number of players interested in this space…
A number of
interested entrants
moving out from
core categories
DA
TA
CO
NT
EN
T
BR
OA
DB
AN
D
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E
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TE
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AN
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E
TV
WH
ITE
GO
OD
S
EN
ER
GY
SW
ITC
HIN
G
LIG
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ING
HE
AT
ING
EN
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SE
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Y
…however Dixons Carphone is advantaged in both distribution and services delivery 9
The customer need is building…
Technology is becoming increasingly complicated
• Relentless innovation
• Increasing penetration of connectivity
• Interoperability of different ecosystems
Customers are now more dependent on keeping their technology working
• Average UK consumer owns 3.3 connected devices, up 10% in 2015
• 85% of consumers are online at least once per day – entertainment, finances, keeping in touch
• 71% of UK consumers own a smartphone, vs. 61% average in Europe
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Technology and its connectivity are now essential … but solutions are not always at hand
Everything is evolving, it's
getting more and more
complicated, and the
majority of times you can't
fix it yourself
Technology is an
essential part of my life,
I'm using it all the time
Our broadband stopped working
for 24 hours, I coped but my 13
year old didn't. It became apparent
to me how much she relies on it.
24 hours was far too long to wait,
we reached crisis point
You can try searching online, or hope
you might know someone who can
recommend someone. Otherwise I
don't really know where to start
I cracked the screen on my phone and
they said they'd send me a new one. So I
had to spend hours downloading and
transferring all my stuff. There's a
missing link to find someone who will
actually fix things
If something goes wrong you
have to go online, look up
your local area, who does
washing machine repairs. It's
all a bit hit and miss
Wi-Fi has become more and
more important in my house, if
it went down I’d have a very
unhappy family
Sources: CSR, Qualitative research programme, Brand strategy Dev Nov/Dec 2015
Customers ranging from 25-70, London, Birmingham, Edinburgh, Dublin, Belfast, Manchester
My kids do think the internet is the most
important thing, nothing else matters, for
me it’s the car and the washing machine
as it’s constantly on
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We are already the UK’s #1 technology support business
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Building from strength…
DC capabilities provide true competitive advantage:
− Leading share in the sale of connected technology
through significant multichannel presence
− Strong manufacturer and supplier relationships and
cross ecosystem approach
− Europe’s largest tech and white goods repair capability
− More technical support agents than any other business
− Complex business to replicate
− Nationwide coverage
Source: DC analysis
700k
mobile
repairs p.a.
740k
computer
repairs p.a.
500k+
engineer
home visits
p.a.
600+
skilled
engineers
4.2m home
visits p.a.
1,500
in-store
service
colleagues
100k+ gas
installs p.a.
11m
warranty
and
insurance
policies 33.5m km
driven p.a.
Samsung,
Apple, Toshiba,
Sony and
Lenovo
accreditation
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Delivering the vision – Progress to date
Team Commercial
Model Channels
Service Delivery
Brand
- Senior team
- Operating model
– Comprehensive
customer research
– Brand strategy
– Proposition architecture
– Refreshed identity
– Defined new
commercial model
– New and innovative
propositions
– Customer acquisition
strategy
– Partner and affiliates
strategy
– Digitalised service
delivery
– Agile approach
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A new leadership team has been appointed Team Commercial
Model Channels
Service Delivery
Brand
Group Strategy Director Andrew Lawley
Strategy & M&A Elizabeth Brown
Commercial John Hunter
Service Delivery Anabel Hoult
Marketing Louise English
Finance Marcus Roy
HR Graeme Clarke
• Proposition
development
• Commercial strategy
• Channels to market
• Partnerships
• Omni-channel
• Contact centres
• In home and field
• Repairs Hub
• Regulation
• IT
• M&A
• Strategy
• Integration
• Finance
• Budgets
• Capital planning
• People
• Culture
• L&D
• Brand strategy &
development
• Insight
• Marketing all
channels
• CRM
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New commercial model with refreshed and innovative propositions…
My
Knowhow
Connect it
Protect it
Upgrade it
Fix it
Learn it Manage it Home switching:
Finding the right broadband
and TV supplier
Trade in and value chain:
Trade in all devices
Always working:
Accessible and convenient
hardware repairs, software
fixes and connectivity solutions
Knowledge vault:
Storing manuals, helpful hints
and tips for your devices
Home connectivity:
Optimising home network
Care plans and insurance:
Offering on going device protection
and technology support service
My Knowhow: Digital membership
Team Commercial
Model Channels
Service Delivery
Brand
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A range of revenue models centred around digital membership
Team Commercial
Model Channels
Service Delivery
Brand
My
Knowhow
Connect it
Protect it
Upgrade it
Fix it
Learn it Manage it
One-off Switching + hardware margin
+ subscription
Switching margin
+ subscription
One-off / subscription
One-off
Subscription
Digital membership
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Customer acquisition via our distribution scale
Awareness
Tens of
millions of
products sold
Store / online
visits
1.5m repairs and
2m tech support calls p.a.
My Knowhow
sign-ups
My Knowhow customer
subscription
11m existing base:
warranty + insurance
Ongoing
relationship
Footfall to over
1,000 stores
4.2m home visits
p.a.
• E-receipt
• Delivery tracking
• Installation
• Policy documents
• Warranty registrations
Product
purchase
My Knowhow
customer event
• Repair
• Technology support
• Home network optimisation
Customers
Team Commercial
Model Channels
Service Delivery
Brand
Source: DC analysis
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Generating additional revenue from new and existing channels…
Channel Objective Outcome Examples
Retail Deliver volume and engagement
with the new services business
Increase service sales in life,
delivering incremental profit, reduced
cost to serve, creating cost saving
Direct to
consumer
Deliver incremental customer
volume through low cost
digital channels
Incremental customers and profit
Partnerships
Deliver new partnerships
to create mutual value Additional customers and scale Banks, Utilities, ISP, Mobile networks
Team Commercial
Model Channels
Service Delivery
Brand
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Field Operations Contact Centre
Repairs Hub
Investing in a frictionless digital service Team Commercial
Model Channels
Service Delivery
Brand
Stores
Service Design
• Digital first
• Responsive
• Accessible
• Convenient
• Personalised
• Omni-channel
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My Knowhow
You can try searching online, or hope
you might know someone who can
recommend someone. Otherwise I
don't really know where to start
My usage:
- Cost
- Speeds
- Savings
My Knowhow
- My products
- My agreements
- My local store
Diagnosis, booking
and tracking
Team Commercial
Model Channels
Service Delivery
Brand
Manage it
Protect it
Upgrade it
Learn it
Connect it
Joanne Smith
Fix it
My Knowhow
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simple view of products
purchased or registered customer identifies problem
or ‘pushes button’
digital self-help enables
triage and routing
remote agent has all
details at their fingertips
Team Commercial
Model Channels
Service Delivery
Brand Fix it
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personalised internet
speed test
highly scientific
home network test
overall view
feed into automated
switching service
if external connection
is the bottleneck
book remote or home
visit - supply
equipment or provide
technical advice
if home network is
limiting performance
Team Commercial
Model Channels
Service Delivery
Brand Connect it
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Start building digital
platform
Reorganising the
business
Finalising teams
Next steps
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Q1 Q2 Q3 Q4
Launch of service
development region in
Leeds
Nationwide rollout and
brand re-launch
Pilot iteration
Monitoring and
iterating
FY1617
In summary
• Big ambition
• Large and underserved market
• Building from scale, with competitive advantage
• Moving at pace
• Incremental revenue and earnings growth
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Q&A