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Empowering SoHos with Digital Services

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Small businesses don't want technology - they want a competitive advantage. Looking back at the launch and expansion of Orange's cloud pro offer, I describe some of the key prerequisites to disrupt the small busines market with digital services, such as open innovation, vertical segmentation and customer co-design. Presented at Informa's annual Industry Outlook in London, Nov. 7th 2013

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Empowering SoHos with Digital Services

  1. 1. Thursday, November 7, 2013 | Cavendish Conference Centre www.industry-outlook.com Informa’s 12th Annual Industry Outlook 2014 Digital Futures: Creating new roles and value chains Empowering SoHos with Digital Services Christophe Rufin Cloud Services Director Orange SMB Market christophe.rufin@orange.com Twitter : @christopherufin
  2. 2. About Orange On of the world leader CSPs 232M customers in 160 countries Turnover : 43,5B€ (2012) With 3 top-level customer segments Consumer Small Business < 50 employees Enterprise and MNCs Pro Business Services
  3. 3. About Le cloud pro The French leading web & mobile SaaS suite, providing enterprise grade services through Orange and best-in class partners
  4. 4. Strategic context
  5. 5. Strategic context (1) the decline of core-business revenues
  6. 6. Strategic context (2) CSPs are still small players in the cloud… Global Cloud Market, US$M Telecom Cloud Global Cloud $115 $1,000 PaaS $624 $2,400 IaaS SMB Market opportunity $2,497 SaaS $16,602 $0 $5,000 Source: Informa Telecoms & Media - 2011 $10,000 $15,000 $20,000
  7. 7. SaaS key promise: service, not software “Don’t buy the cow, if you just need milk”
  8. 8. Small Businesses expectations: the Maslow Pyramid Make my business successful Manage my business Improve my collaboration Secure my data Automate my office
  9. 9. Small Businesses: changing hats everyday
  10. 10. Small Businesses demand the « mass market » SMB is a myth
  11. 11. What we did
  12. 12. Le cloud pro: 16 partners (8 local) Productivity Business Administration Marketing & Communication Office automation RFP scouting Media printing Backup and share Invoicing Website, e-commerce Audio & web conference Billing & inventory Blog, social media Scanning and filing Accounting Networking Software training Search engine marketing Languages training Email marketing local vendors
  13. 13. Le cloud pro: business clusters Construction workers Retail Hotels, cafes, rest aurants CLOUD SERVICES Independent professionals Health professionals OTHER PROFESSIONAL SERVICES MS Office Audio & web conference Electronic payment Backup and share Website Fax Scanning and filing Website for health professionals Remote transmission for social security RFP scouting Email marketing Video surveillance Invoicing On-demand IT support
  14. 14. Customer base: ramp-up Main actions on sales channels and their consequences 2011 - Q3 2011 - Q4 2012 - Q1 2012 - Q2 2012 - Q3 2012 - Q4 2013 - Q1 2013 - Q2
  15. 15. Customer base: details % of sales, by type By business sector, group 1 By business sector, group 2 Oct. 2013 46 54 Retail Hotels & restaurants Construction workers Independent professionals Health professionals
  16. 16. Return on experience
  17. 17. Key success factors and recommendations (1) Set-up an agile team
  18. 18. Key success factors and recommendations (2) Drive customer interaction
  19. 19. Key success factors and recommendations (3) Get your sales teams out of routine
  20. 20. Key success factors and recommendations (4) Reinvent the way you work
  21. 21. Conclusion
  22. 22. SMB cloud key success factors  Remember that cloud = transformation  Incorporate customer feedback into your products and processes  Segment by business needs or activity sector, not by technology or company size  To engage SMBs online, open the conversation about business issues, not just products or tools  Being online is not enough. Sales teams and cross-channel marketing are critical to generate a paying user base  Navigate to 35hday.com and download the “35h day” manifesto!
  23. 23. THANK YOU! Empowering SoHos with Digital Services Christophe Rufin Cloud Services Director Orange SMB Market christophe.rufin@orange.com Twitter: @christopherufin