This is a presentation I gave in November 2013 during the first Digital Life Congress in Manila, Philippines. http://www.lifecongress.ph

1. Globe's Innovation Journey in
the B2B Marketplace
Cocoy J. Claravall
Vice President
ITES Products & Services

2. Agenda
• The Telco Business Today
• The Big Picture – A Look at Technological,
Social, and Political Forces
• Why Innovation is Important
• Globe’s Innovation Journey in B2B

3. 67.3B in revenues by end of Q3, but …
2011 – 2016
Nominal CAGR
percent
The telecom services
business is big and
stable, there is still an
opportunity to expand
albeit with slowing
revenue growth …
… mirroring global
trends due to
commoditization
(declining ARPU, etc.)
and intense
competition.
Projected
Business per
Industry, YoY
Thus we need to move
beyond the core in
order to maintain our
momentum while
investing for the future.

4. Where Else Can We Grow?
What do we do, and when
do we start?

5. Advances in technology will change society, the economy,
and the workplace in coming years.
TECHNOLOGICAL
information and
communications,
innovation, trends, etc.
 These Top 10 IT-enabled trends can extend the powers of
managers, workers, and entrepreneurs, opening up new
avenues to growth, and may also disrupt longstanding
commercial, social, and political relationships and alter
the dynamics of entire industry sectors
1. The Social Matrix (crowdsourcing, collaboration)
2. The Internet of All Things (M2M, self-service)
3. Big Data, Advanced Analytics (customization)
4. Realizing Anything As A Service (XaaS)
5. Automation of Knowledge Work (business apps)
6. Integrated Digital/Physical Experiences (e-POS)
7. Me + Free + Ease (personalized, easy to use, low cost)
8. The e-Volution of Commerce (peer-to-peer market)
9. The Next Three Billion Digital Citizens (glo-cal)
10. Transformation of Government, Healthcare, and
Education (e-services)
SOURCE: Ten IT-enabled business trends for the decade ahead / McKinsey Global Institute – May 2013

6. What do cows, shoes, trees, and diapers
have in common?
Living, and Non-Living

7. In 2011, IBM made history …
Watson’s ability to answer
questions make it ideal for
doctors to improve patient care.

8. Do you remember these products?
1968
1993
1983
1994
1989

9. Buying behavior and receptivity for IT-enabled services
differs by customer segment, key is to find the sweet spots.
ENABLEMENT FRAMEWORK
SOCIAL
demographics, consumer
behaviors, brand, buying
trends, etc.
DISRUPTORS
VALUE CHAIN
create radically different value
propositions, generate new
customer needs and segments and
even new industry eco-systems
INNOVATORS
significantly extend CVPs resulting in
new revenue streams and transform
their role within their industry or enter
a different industry ecosystem
OPTIMIZERS
Incrementally enhance their customer
value propositions while improving
their organization’s efficiency
CUSTOMER VALUE PROPOSITION
SOURCE: IBM Institute for Business Value Analysis 2012
Business
companies
should
determine
how and to
what degree
IT-enabled
services can
be used to
enable their
business
model.

10. The Philippines has the opportunity to play an enormous
role in ICT.
POLITICAL
government
legislation, term and
change, funding, initiatives,
etc.
 The Philippine Digital Strategy (PDS) for 2011 to 2016
covers four major areas, namely: ICT Infrastructure, Cyber
Services, Human Capital Development, and e-Governance.
Transparent Government
& Efficient Services
ICT Industry and
Business Innovation
Investing in People:
Digital Literacy for All
Internet Opportunity
for All Peoples
Transformation 2.0:
A Digitally Empowered Nation –
The Philippine Digital Strategy 2011-2016
 PPP implementation crucial to investment-driven growth
- estimate a ‘blue sky’ macro scenario in which per capita
GDP could improve to $5K from ~$3K currently
SOURCE: Philippine Digital Strategy 2011 - 2016

11. So what really fosters INNOVATION?
61% of CEOs worldwide
say that innovation is a
priority or a primary
focus within their
businesses.
- PricewaterhouseCoopers
SOURCE: Accenture, Bain, Deloitte, Forrester, PriceWaterhouseCoopers

12. Innovation efforts are sluggish and ineffective.
1. Resource Constraints
(Time and People)
2. Budget Constraints
“Top 3 Challenges to Business Innovation”
SOURCE: Accenture, Bain, Deloitte, Forrester, PriceWaterhouseCoopersForrester
3. Lack of Structured
Innovation Process

13. What are the right ingredients for innovation?
31 %
5. Capacity and
Capability for
Creativity
31 %
57 %
44 %
4. Ability to
capture ideas
throughout the
organization
1. Right culture
to foster and
support
innovation
2. Strong
Visionary
Business
Leadership
“Innovation must
be part of a holistic
and formal system
to net positive
returns over time.”
- Accenture
37 %
3. Willingness to
challenge norms and
take risks
SOURCE: Accenture, Bain, Deloitte, Forrester, PriceWaterhouseCoopers
- PricewaterhouseCoopers
JOV-0495-2DC-4N

14. Who “was” Globe Business?
BCFU as of May 14, 2013
Market Situation
State of the Business
New competitors
(OTT players)
800+
employees
All services under
one roof
New opportunities
(devices, social
media, big data)
Slowdown of
traditional sources
of revenue
Predictable
Revenue
Little IT focus

15. A New Globe Business
130
ITES Mandate
Focus on IT-related
products & services
Develop new
offerings or partner
with world-class
technology providers
Be the preferred IT
partner for cloud
services
IT Enabled
Services
Group
SMB
Group
Enterprise
Group

16. We are a dedicated group of committed individuals
whose mission is …
To enrich lives through enabling
solutions that accelerate the
performance of business
ecosystems using best in class IT
capabilities, platforms and services.

17. Mindset Change: OLD versus the NEW Model

18. Key is to determine the customer’s level of maturity and
readiness to buying IT services.
Business
Application
Services
Cloud Services is the
Next Great Leveler, for
companies big and
small ...
Data Center
Collocation
Services
INNOVATING
Managed
Application
Performance
Managed
Desktop and
Client
Managed
Security
Services
Managed
Storage /
Server
Web Hosting /
IDC Services
Managed
Connectivity
Data Center
Services
World-class facilities, certified people, and processes
OPTIMIZING
Level of Professional Services we can offer
End-to-end Business
Application Services
Hosted
Applications
Shared
Hosted
Platforms
Shared
Dedicated
Managed
Platforms
Enterprise
Public IaaS
Dedicated
Private Cloud
Dedicated
Managed
Applications
Hosted
Application
Performance
DISRUPTING
Platforms include Databases, Web Servers, Load Balancers and Firewalls. While most customers will potentially buy all services
Financial Institutions are NOT a target market for anything that is Public or Shared for their Core Applications.

19. Cloud Adoption – The Opportunity
Percentage of enterprise application that will be on cloud in 2014*
34% 24%
56%
“Large Latin American and Asia Pacific companies are the most
aggressive adopters of cloud computing – while their European and US
counterparts remain conservative about shifting apps to the cloud” - TCS
50%
19

20. 20

21. Our FOCUS : Business Process Pain Points





 Need for Business Innovation
 Need to Remain Relevant and
Competitive
 Customer Demands for Better
Customer
Service and
Experience
Lack of Business Analytics
No Productivity Analysis
Lack of Employee Empowerment
Poor Monitoring of Resources
Need for Internal and External
Market Insighting
Lack of Mobility
Cost to build &
maintain IT
Solutions &
Capabilities
No Access to
Relevant and
Real-time
Information
Inefficiencies of
Manual
Processing
Agility to adapt
to changing
customer
demands
 No Access to
Needed
Information
 No Access to Business
Systems
 Need to Go Back to Office
for Desk Work
 A Lot of Down Time
 Time
Consuming
 Prone to
Human Error
 Non-Standard Processes
 Slow Turn-Around and
Interaction Among Process
Owners
 Poor Tracking, Monitoring
and Filing of Paper
Documents
SOURCE: OrangeScape Business Application Landscape, Customer Interviews
 Need for Cost Reductions
and Spending Control
 Fragmented Solutions
 Huge Upfront Investments
 Off-the-Shelf Solutions are
No Longer Acceptable
 Technology Obsolescence
 Lack of IT Expertise
 Seasonal Requirements

22. Examples of Real Customers Today
GLOBAL PORT & TERMINAL OPERATOR
INTERNATIONAL AIRLINE
• Current DIY Exchange email
system is getting bigger due to
increasing number of ports
• Need to upgrade to new version
• They wanted it managed so that
they can focus on their core
competency
• Managed Email with Computing
Resources
• Customer Relationship
Management is very important to
their industry
• Current system is fragmented and
requires multiple IT Resources
• Managed CRM with Computing
Resources

23. In this business, Partners are central to our success,
thus we continue to harness our relationships, and
build new ones.
GLOBAL
LOCAL /
REGIONAL

24. The GOAL: Provide end-to-end IT enabled business
solutions that will allow us to create tremendous
value to the ecosystem.
END USERS
BUSINESSES
BUSINESS
CUSTOMERS
GOVERNMENT
FAMILIES

25. INNOVATION IN HEALTHCARE

26. The Philippine healthcare system is an interplay
of 8 groups:
1 Government
Doctors and Medical
7
Practitioners
2
HMOs & Insurers
8
Patients
Hospitals, Diagnostic
Clinics & Labs
6
Pharmacies
3
5
4
Pharma
Employers

27. Issues and challenges of the healthcare industry
Patient Records Piling Up
Paperworks
Pain in Data Retrieval
Medical Errors
Growing Cost
Long Waiting Time
Public and Private Sector
Paper and Pen Method
Privacy and Security

28. An Opportunity Exists to Improve the Healthcare
Ecosystem
Patients