Helping SMEs Go Digital: Exploring a Multi-Trillion Dollar Opportunity

Helping SMEs Go DigitalExploring a Multi-Trillion Dollar Opportunity

Camille MendlerAlexander HarrowellHwee Xian Tan

Webinar: January 2017

Ovum | TMT intelligence | informa2 Copyright © Informa PLC

Introducing the team

Defining the SME universe

The realities of going digital

Investment priorities

Takeaways

Agenda

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Camille Mendler

Practice Leader

Focus areas: Segmentation and targeting, go-to-market strategy, digital engagement, cloud services

Alex Harrowell

Senior Analyst

Focus areas: 5G, open source, SDN, APIs, Internet infrastructure, cloud, operator business models

Hwee Xian Tan

Senior Analyst

Focus areas: UC&C, e-commerce, enterprise mobility, managed services, vendor strategy

SoHo and SME research: Ovum’s dedicated team

Ovum’s Enterprise ServicesSupergroup

Practices• SoHo and SME Services• Large Enterprise Services• Workspace Services• Network and Cloud Services• Internet of Things

Collaborating across teams and geographies.


It’s time to look at the B2B market from the right way up

Micro / SoHo(including self employed)

Small

Medium

• 99% of businesses• 2/3rds of jobs (formal)• 80% of jobs (informal)

Large

Globally, the bulk of job creation comes from businesses with fewer than 100 employees. The rise of the freelance economy is also rebalancing employment demographics.


Small businesses are triggering big investments and strategy shifts

Acquisitions to extend reach into the SME universe will accelerate in 2017.


One size does not fit all to target the small business universe

Segmenting the local ‘SME’ universe is a key task. Decide which personas to address.

SolopreneurSoHoSME

Industryspecialist

StartupFamilyfirm

“Consumer Up”Supersize consumer offers(eg: more, faster, safer)

“Business Accelerator”Bundle ICT with business and financial services

What is an ‘SME’?

“Divide and Conquer”Maximize ICT wallet share in target verticals withcurated service clusters

“Winner Takes All”Incentivize pooledgroup usage acrossconsumer and business


Digital is transforming SMEs

41%

14%

73%

10%

Have IT staff Buy external IT support

2013

Small Medium

60%

39%

87%

33%

Have IT staff Buy external IT support

2016

Small Medium

n=514 n=1,012 Source: Ovum Note: Western European SMEs.

Beware claims that digital makes life easier for SMEs – today it’s making it more complex.


Becoming digital is a struggle that many are losing

Almost half of the world’s smaller businesses say that they are digitally ‘illiterate’.

39% 40%43% 44% 46% 47% 47% 49% 50%

53% 53% 55% 56%59% 59%

SoHos and SMEs: Lack of digital skills has harmed our business

N=4,633Source: Ovum 2016 SoHo and SME Insights Survey

% of respondents agreeing


SME ICT investment patterns are evolving

Nine out of 10 believe technology can make their business more competitive – but almost half don’t know how to exploit it.

• Globally, 52% will spend more on cloud• One in five will reduce fixed services expenditure• 47% will spend more on mobile services

Medium-sized businesses are the biggest spenders on cloudOne in five will grow their cloud budget by more than 10%


Three hotspots for SME investment

As reliance on digital transactions, engagement and analytics tools grows so will need for better security over digital assets.

E-commerce & POS

IoT

Customer engagement

62% considering CRM 47% considering marketing automation

61% considering a form of tracking58% would consider a telco for energy tracking

35% can take payment on their website51% would consider a telco for help to set up an online store

N = 4,633Source: Ovum 2016 SoHo and SME Insights Survey


Trust comes with guidance

Power in the ICT ecosystem is shifting to those who can lend a guiding hand.

0%

20%

40%

60%

80%

Accountant Web/search/media

Tradeassociation

Colleagues Operator Local techreseller

ITconsultant/SI

Who do you trust forbusiness and technology advice?

SoHo SME

N = 1,721 Western European respondents.Source: Ovum 2016 SoHo and SME Insights Survey

Top 2 criticisms of telcos

Failure (or unwillingness):

- to educate or provide advice

- to understandtheirclients’ business processes

IT consultant/SI

Operator

ColleaguesAccountant Web/search/

media

Local techreseller

Trade association


0%

5%

10%

15%

20%

25%

Go to its store Talk to its call center Meet at our office Go to its website Visit a local reseller

SoHos SMEs

Customer engagement strategy will determine success or failure

N = 4633 . Note: Showing answers for 'very often.'Source: Ovum 2016 SoHo and SME Insights Survey

Go to its website

Meet at our office

Go to its store

Visitlocal reseller

Talk to its call center

Omni-channel interaction is mandatory – but digital journey management is an art that few have mastered to engage successfully with smaller businesses.

How do you usually buy from your main communications service provider?


New work contexts are also new channels to market

IdeasExchange

PublicLibrary

DaycareCenter

Ladies Only

SocialClub

Reinvent learning space for the young and middle aged.

Make it easierfor femaleentrepreneursto thrive.

Build acommunitythat’s coolerthan a workplace.

Support bartering ofskills and knowledge.

Malaysia Singapore Singapore Indonesia

Example: Co-working facilities

Co-working offers much more than a rented desk and Internet access. These facilities can also showcase new ideas and services.


WHATUse the right blend of physical and virtual channels

HOW- Apply the relevant channel segmentation- Explore non traditional channels- Rethink inside sales

WHATBridge the digital skills gap between small and large businesses

HOW- Offer strategic support, not just break fix- Industrialize key support processes

WHATCraft integrated propositions that overcome silos to address specific SME needs

HOW- Move to solution selling - Create bundles across product silos- Incentivize capture of maximum ICT wallet share

WHATIdentify friction points that impair efficiency and business growth

HOW- Apply relevant business segmentation- Address different personas in the workforce- Consider productivity potential of people and Things

ICT suppliers to SMEs: Recommendations for 2017

Empower Simplify SupportEngage


Ovum’s SoHo and SME Services: How we can work with you

Research (planned)

Navigating the Multi-Trillion Dollar SME Opportunity: From Solopreneurs to the Mid-market

Revolution in the Channel: The New SME Ecosystem

IoT for SMEs: Quick Wins

Small business UC: Regional Perspectives

SME Success Hacks: The Role of Inside Sales

Virtualization and the Bundle

Meet the Secret SoHos: Segment Spotlights: (Lawyers, Farmers, Retailers)

Freelance Economy: Coworking diversifies

Security for SMEs

Client interactionInquiriesWebinarsStrategy SessionsCustom consulting

PrimarySoHo and SMEs Insights: Digital demand perspectives across developed and growth economies

ForecastsConsistent segmentation for SoHos and SMEs across core cloud, UC, broadband service clusters

TrackersCloud/ICT services for SMEs

New subject matter explorationChannels to market / sales engagement E-commerceDigital marketingSME mass verticalsBest practice case studies


Camille Mendler (London)[email protected]

Alexander Harrowell (London)[email protected]

Hwee Xian Tan (Kuala Lumpur)[email protected]

Thank you!

mailto:[email protected]




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Helping SMEs Go Digital: Exploring a Multi-Trillion Dollar Opportunity

Small Business & Entrepreneurship

Transcript of Helping SMEs Go Digital: Exploring a Multi-Trillion Dollar Opportunity