2015 Global Mobile Commerce Enabling Technology Leadership ... · • Converged Wallet: A combined...

2015

2015 Global Mobile Commerce Enabling Technology Leadership Award

BEST PRACTICES RESEARCH

© Frost & Sullivan 2 “We Accelerate Growth”

Contents

Background and Company Performance ........................................................................ 3

Industry Challenges .............................................................................................. 3

Ericsson's Technology Leverage and Customer Impact .............................................. 3

Conclusion........................................................................................................... 6

Understanding Enabling Technology Leadership ............................................................. 7

Key Benchmarking Criteria .................................................................................... 8

The Intersection between 360-Degree Research and Best Practices Awards ....................... 9

Research Methodology .......................................................................................... 9

About Frost & Sullivan ................................................................................................ 9



Background and Company Performance

Industry Challenges

Approximately 75% of payments around the world are made in cash, and this number is

closer to 90% in emerging regions. The prevalence of cash transactions and unbanked or

underbanked consumers in emerging regions suggests robust opportunity for technology

providers. Consumers, retailers, financial institutions, and mobile operators all stand to

gain from mobilizing financial services; but significant challenges to implementation

remain. Digitized financial access demands security, flexibility, control, and immediate

access to information—which empowers consumers and supports more efficient financial

services. Moreover, establishing a global mobile financial framework is a huge undertaking

that is contingent on participants’ adherence to and respect of distinct regional regulatory

environments.

In order to ensure integrity and security, while also investing in relationship-building to

foster cooperation and trust, market participants must fully engage to understand the

diverse and multifaceted needs of customers on a region-by-region basis. Bringing mobile

financial services to emerging regions means spearheading a radical shift, so alignment

with regulators, governments, and institutions must be at the forefront of strategies for

extending products and services. Frost & Sullivan research suggests that bringing

mCommerce to emerging markets around the world means bringing financial control to

consumers and societies, but this is contingent on technology providers’ ability to offer

flexible, open, secure, and multi-channel implementation. With a targeted focus on

bringing mobile financial solutions to emerging regions and creating a truly global

standard to enable the full digitization of commerce, Ericsson is reaching out to populous

regions where global mobile deployment was previously stymied by seemingly

insurmountable challenges.

Ericsson's Technology Leverage and Customer Impact

Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. With a mission to “lead

transformation through mobility,” Ericsson is a global leader in communications and

technology. The company provides software and infrastructure solutions in mobile and cloud

communications. Over 40% of the global mobile traffic is currently carried over Ericsson

networks.

Commitment to Innovation and Creativity

Frost & Sullivan’s independent analysis indicates mobile financial services can empower

consumers by mobilizing access to information and digital assets, managing the lifecycle

of these assets, and using digital credentials when making a face-to-face purchase.

Ericsson is in a strong position to facilitate such access. The company supports networks



that connect more than 2.5 billion subscribers globally, and in 2012 the company

partnered with Western Union to create an expansive money transfer network,

differentiated by digitized wallet services that connect financial institutions and mobile

network operators and add value to their consumers. The company is driven by a mission

to bring mCommerce benefits to businesses on a global scale and in a manner that is

secure and compliant to regional regulations. In fact, the Ericsson Wallet Platform was the

first mobile money service to earn the Payment Card Industry Security Standards

Council’s Payment Application Data Security Standard (PA-DSS v3.0). Ericsson’s rich

history and expertise place the company in a unique position to intimately understand and

see potential of technology communications.

More specifically, Ericsson offers an end-to-end mCommerce solution portfolio that

provides the technology, platform, and support for partners to succeed in an inherently

complex and fragmented mobile commerce market. The key pillars of the solution include

the following:

• Wallet Platform: Enables secure and convenient mobile financial services (such as

money transfer and payments)

• Converged Wallet: A combined wallet platform and charging system which enables

operators to reuse existing assets and bundle telecom/financial services

• mCommerce Interconnect: Offers interoperability between mobile wallet providers

as well as established payment networks

• Professional Services: Comprehensive professional services from business planning

and compliance to organization and processes

Customer Purchase and Ownership Experience

The customer needs, adoption potential, and challenges to mobilizing financial and

transactional services vary across emerging market regions. In Sub-Saharan Africa, for

example, Frost & Sullivan research shows that government efforts have been crucial in

enabling the growth of mobile finance by actively looking to increase financial inclusion

through mCommerce, as it is a more affordable alternative to giving unbanked customers

access to banking services. More specifically, in Ghana operators are not licensed to offer

mobile money services whereas in Kenya the regulator has given operators a fair amount

of latitude to drive the market. As a result, Kenyan operators have the incentive to boost

service penetration and increase agent networks, meaning there is more of a barrier in

Ghana. Another example is found in Latin America, where Ericsson’s ConsumerLab

research has identified distrust toward institutions and a strong concern about security at

the consumer level.

Meanwhile, carrying cash can be dangerous and make consumers more susceptible to

robberies. To empower those who are still unbanked in Latin America, the company’s



strategy is to work with customers to understand how transactions are currently made,

address security concerns by educating consumers, work with regulators, and ultimately

provide the tools to bring mobile wallets to consumers and facilitate not only the

conditions but the actual adoption of mCommerce. In November 2014, the solution was

also deployed in Senegal as part of the Millicom Group, and expansion is continuing

globally at a rapid pace. This ultimately benefits merchants and communities, individual

consumers, Ericsson’s customers, and financial institutions.

Customer Service Experience

Customer service is the primary objective that feeds Ericsson’s practices of creating

genuine partnerships with each customer. The company provides technology and

expertise, but what really stands out is its willingness to get to the ground level and

understand not only customer needs, but what will make customers successful over the

long-term—which is contingent on the end users. Ericsson’s Mobile Wallet has been

deployed with MTN as partner in many countries in Africa (with further deployments in

currently in-process). As an example of the potential, the recent deployment with MTN

Uganda means Ericsson’s platform now reaches seven million MTN Uganda mobile wallet

users and 50,000 agents. This example proves the benefit to businesses and consumers,

who will be provided with significantly greater access when armed with a digitized wallet

than with traditional banking services.

To help roll out mutually beneficial solutions, Ericsson offers its customers support in the

form of its mCommerce Business Growth Toolbox, which comprises key elements to

achieving success in emerging market regions. To map out the opportunity in each region,

the following is offered:

• Workshops and strategy sessions

• Buisiness alignment briefings and product planning

• Growth driver identification

• Research

• Development support and partnerships

Ericsson’s rich history, diverse portfolio, and commitment to customer-first and forward-

thinking operations all contribute to the company’s current leadership as a

communications technology and services provider.

Brand Equity

Ericsson’s customers benefit from the company’s dedication to remaining at the forefront

of technology shifts. Holding over 35,000 patents, Ericsson’s portfolio includes 2G, 3G,



and 4G technologies. With keen focus on achieving a single global network, Ericsson is

spurred by the transformative nature of technology to societies, and its culture of

innovation and investment in continued research and development nourish a total offering.

With partnership engagements in Latin America, Asia, Africa, and the Middle East, Ericsson

has unique insight into a dynamic and multifaceted mobile landscape and is making real

strides toward its vision of an interconnected world. Strong brand recognition and focus on

customer and consumer inclusion, despite barriers, reinforce the strength of the Ericsson

brand. Ericsson understands that by listening to the voice of the customer, it can best

understand the needs of a changing business landscape, and it is a company well-

equipped to anticipate and meet customer needs.

Conclusion

In markets around the world, mCommerce services go beyond enhancing business efforts

to also benefit individual consumers and societies. Frost & Sullivan’s independent analysis

of the Mobile Commerce market clearly shows that Ericsson is facilitating the challenging

but necessary shift toward a truly global mobile marketplace by focusing its efforts on

breaking down technology barriers in emerging markets. With its dedication to creating a

single, global standard, Ericsson has earned Frost & Sullivan’s 2015 Global Enabling

Technology Leadership Award.



Understanding Enabling Technology Leadership

Ultimately, growth in any organization depends upon customers purchasing from your

company, and then making the decision to return time and again. In a sense, then,

everything is truly about the customer—and making those customers happy is the

cornerstone of any long-term successful growth strategy. To achieve these goals through

technology leadership, an organization must be best-in-class in three key areas:

understanding demand, nurturing the brand, differentiating from the competition. This

three-fold approach is explored further below.

Product quality (driven by innovative technology) is the foundation of delivering customer

value. When complemented by an equally rigorous focus on the customer, companies can

begin to differentiate themselves from the competition. From awareness, to consideration,

to purchase, to follow-up support, best-practice organizations deliver a unique and

enjoyable experience that gives customers confidence in the company, its products, and

its integrity.



Key Benchmarking Criteria

For the Enabling Technology Leadership Award, Frost & Sullivan evaluated two key

factors—Technology Leverage and Customer Impact—according to the criteria identified

below.

Technology Leverage

Criterion 1: Commitment to Innovation

Criterion 2: Commitment to Creativity

Criterion 3: Stage Gate Efficiency

Criterion 4: Commercialization Success

Criterion 5: Application Diversity

Customer Impact

Criterion 1: Price/Performance Value

Criterion 2: Customer Purchase Experience

Criterion 3: Customer Ownership Experience

Criterion 4: Customer Service Experience

Criterion 5: Brand Equity

Technology Leverage

Criterion 1: Commitment to Innovation

Requirement: Conscious, ongoing adoption of emerging technologies that enables new

product development and enhances product performances

Criterion 2: Commitment to Creativity

Requirement: Technology is leveraged to push the limits of form and function, in the

pursuit of “white space” innovation

Criterion 3: Stage Gate Efficiency

Requirement: Adoption of technology to enhance the stage gate process for launching new

products and solutions

Criterion 4: Commercialization Success

Requirement: A proven track record of taking new technologies to market with a high rate

of success

Criterion 5: Application Diversity

Requirement: The development and/or integration of technologies that serve multiple

applications and can be embraced in multiple environments

Customer Impact

Criterion 1: Price/Performance Value

Requirement: Products or services offer the best value for the price, compared to similar

offerings in the market

Criterion 2: Customer Purchase Experience

Requirement: Customers feel like they are buying the most optimal solution that

addresses both their unique needs and their unique constraints



Criterion 3: Customer Ownership Experience

Requirement: Customers are proud to own the company’s product or service, and have a

positive experience throughout the life of the product or service

Criterion 4: Customer Service Experience

Requirement: Customer service is accessible, fast, stress-free, and of high quality

Criterion 5: Brand Equity

Requirement: Customers have a positive view of the brand and exhibit high brand loyalty

The Intersection between 360-Degree Research and Best

Practices Awards

Research Methodology

Frost & Sullivan’s 360-degree research

methodology represents the analytical

rigor of our research process. It offers a

360-degree-view of industry challenges,

trends, and issues by integrating all 7 of

Frost & Sullivan's research methodologies.

Too often, companies make important

growth decisions based on a narrow

understanding of their environment,

leading to errors of both omission and

commission. Successful growth strategies

are founded on a thorough understanding

of market, technical, economic, financial,

customer, best practices, and demographic

analyses. The integration of these research

disciplines into the 360-degree research

methodology provides an evaluation

platform for benchmarking industry players and for identifying those performing at best-

in-class levels.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth

and achieve best in class positions in growth, innovation and leadership. The company's

Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined

research and best practice models to drive the generation, evaluation and implementation

of powerful growth strategies. Frost & Sullivan leverages more than 50 years of

experience in partnering with Global 1000 companies, emerging businesses and the

investment community from 40 offices on six continents. To join our Growth Partnership,

please visit http://www.frost.com.

360-DEGREE RESEARCH: SEEING ORDER IN

THE CHAOS

Technology

Obsolescence

Disruptive

Technologies

New

Applications

CEO

Demographics

Needs

and

PerceptionsSegmentation

Buying

Behavior

Branding

and

Positioning

Competitive

Benchmarking

Emerging

Competition

Competitive

Strategy

Capital

Investments

Availability

of

Capital

Country

Risk

Economic

Trends

Crowd

Sourcing

Growth

Strategies

Career

Development

Growth

Implementation

Industry

Evolution

New Vertical

Markets

Industry

Expansion

Industry

Convergence

Emerging

Technologies

Smart Cities

Sustainability

New Business

Cultures

GeoPolitical

Stability

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