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Transcript of BRIM Enablement Telecommunications
April, 2013
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speaker notes.
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SAP Billing and Revenue Innovation Management SAP for Telecommunications January 2014
Legal disclaimer All information contained in this presentation is provided under NDA The information in this document is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This document is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation and SAP's strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information on this document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP intentionally or grossly negligent. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.
© 2013 SAP AG. All rights reserved. 3 Public
Mobile subscriptions
2
4
6
8
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
World Population
Mobile Subscriptions
Source: ITU (2013 is estimated)
© 2013 SAP AG. All rights reserved. 4 Public
China: Approaching Market Saturation?
84% 90%
China Global
Mobile Penetration
© 2013 SAP AG. All rights reserved. 5 Public
Mature Markets Case Study: European Telecoms Revenues in Decline
Source: European Telecommunications Network Operators’ Association * 2013 projected
Tota
l Rev
enue
s, c
hang
e co
mpa
red
to
prio
r yea
r
1.3%
-2.3%
-0.9% -1.4%
-1.8%
-3.7%
2008 2009 2010 2011 2012 2013*
© 2013 SAP AG. All rights reserved. 6 Public
Europe: only fixed Internet is growing, but growth slowing
6.9%
5.2%
3.1% 3.7%
2.4% 3.6%
-2.1% -1.2%
1.7%
-1.6%
-5.9%
-8.4% -7.2%
-8.4% -7.8%
2008 2009 2010 2011 2012
Fixed Internet services
Mobile services
Fixed voice To
tal R
even
ues,
cha
nge
com
pare
d to
pr
ior y
ear
Source: European Telecommunications Network Operators’ Association
© 2013 SAP AG. All rights reserved. 7 Public
2013 YEAR ON YEAR CHANGE OF VODAFONE AFFILIATES REVENUE
Mature Markets Case Study: Vodafone and Belgium
© 2013 SAP AG. All rights reserved. 8 Public
Social Messaging is Cannibalizing SMS
0
10
20
30
40
50
2012 2013 projected
SMS
Social Whatsapp, Apple iMessage, BlackBerry Messenger, and others
Bill
ion
per d
ay
Source: Informa, Ovum
$23B Operator messaging revenues lost to OTT in 2012
© 2013 SAP AG. All rights reserved. 9 Public
Carrier spend on IT outstripping spend on network infrastructure
$B
20 $B
40 $B
60 $B
80 $B
100 $B
2010 2011 2012 2013 2014 2015 2016 2017
Network Infrastructure
BSS, OSS, SDP
Source: Gartner CNI & TOMS Forecasts, 2013 Q3
© 2013 SAP AG. All rights reserved. 10 Public
OSS/BSS has been getting more expensive over time
Rise in IT cost burden over time
IT Costs % of total indirect
costs
Years since start of mobile operations Source: A.T. Kearney analysis
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 0%
5%
10%
15%
20%
25%
30%
R = 0.61
© 2013 SAP AG. All rights reserved. 11 Public
Objective Measurements Strategy
Better Customer Experience
Increase in Net Promoter Score
• Instant service activation, instant changes, real-time notifications
• Self-service as the preferred model • Seamless experience across all channels: store, online, field
sales & service, resellers • Single 360° view of the customer with best-in-class customer
service from engaged and empowered team-members
Enhanced Competitive Advantage
Launch new products in a fraction of current time (e.g.,days instead of months)
• Quickly introduce transparent and innovative pricing and monetization models
• Immediate product catalog updates across whole OSS/BSS • Easily partner and share revenue with third-parties for content,
apps and joint go-to-market, combat the threat from Internet pureplayers
Revenue Growth
Market share growth and ARPU increase
• Expand into new markets: B2B, M2M • Dynamic bundling and cross-sell/upsell from a broad catalog of
services • Real-time sense and respond to customer behavior to drive
finely targeted offers
Cost Reduction
50% reduction in total cost to serve a customer after subscription; increased network utilization rates
• More self-service and less calls to call center • Greater case management efficiency • Massive reduction in operations cost for OSS/BSS • Consolidation of multiple lines of business onto the new
software stack over time
Impacts for Telecommunications
© 2013 SAP AG. All rights reserved. 12 Public
End-to-end Customer Experience Management with SAP
Customers Convergent Mediation
Convergent Charging
Convergent Invoicing Revenue
Recognition
Customer Financial
Management
Field Service
Contact Center Care
Self-care Convergent Pricing Simulation
Social Engagement
Customer Engagement Intelligence
Real-time Offer Management
Predictive Analytics
Loyalty Management
Field Sales
Contact Center Sales
Omni-Channel Commerce
Inventory and Logistics
Customer Usage Analytics
Be+er Customer Experience
© 2013 SAP AG. All rights reserved. 13 Public
Why SAP?
10 out of the Top 10 Telecommunications Companies run SAP
Source: SAP analysis of Forbes 2000 rankings (May 2013) and SAP customer database
Strategic to SAP Telecommunications is one of only 4 strategic industries at SAP receiving disproportionate investment
Clear industry roadmap developed with strategic customers through co-innovation
1,000+ customers worldwide
Telco 2.0 SAP is a powerful upstream and downstream partner for CSPs looking to go Beyond Telco
Deep industry-specific capabilities
Embedded preconfigured best practices
CUSTOMERS CHOOSING SAP FOR CUSTOMER EXPERIENCE
MANAGEMENT
Customer names available on request
© 2013 SAP AG. All rights reserved. 14 Public
SAP: Growing through Organic Innovation and M&A
ACQUISITIONS BENEFITING THE TELECOMMUNICATIONS INDUSTRY
SERVICES
SOFTWARE
HARDWARE
SERVICES
SOFTWARE
HARDWARE
Current Stack New SAP Stack
Room for Customer and SAP co-innovation
Simplification driven by: • SAP HANA in-memory platform collapses the data
management stack and simplifies apps • Best practices pre-packaged in rapid deployment
solutions • Choice of hybrid cloud/on-premises deployment
models
SIMPLIFYING TO OPEN UP INNOVATION OPPORTUNITIES
14
2012 mobile field
service
2009 convergent charging
2013 omni-channel
commerce
2007 business intelligence
2011 human capital management
2013 predictive analytics
2012 business commerce
network
2010 mobility platform and
database
M2M Machine to Machine
© 2013 SAP AG. All rights reserved. 16 Public
Beyond Telecoms: partnering with SAP
Retail Oil & Gas Public Sector
Provide a solution for in-store multimedia
promotions and endless-aisle shopping
combined with customer-centric
analytics including location-based data
Example SAP
Customers
Offer a real-time cloud platform for production monitoring, 360° asset
analytics and predictive maintenance
Enable cloud-based omni- channel citizen services, security and monitoring and Open Government Data in
the CSP Cloud
Example SAP
Solutions
16
Customize to your Market with relevant industries and SAP customer names in your region
© 2013 SAP AG. All rights reserved. 17 Public
M2M connections and growth
0
2
4
6
8
10
12
14
16
YoY adds
Source: Berg Insight, April 2012
Mill
ion
Con
nect
ions
(end
201
1)
This slide has speaker notes
© 2013 SAP AG. All rights reserved. 18 Public
M2M = low ARPU?
0 5 10 15 20 25 30 35
Less than $3
Between $3 and $5
Between $5 and $7
Between $7 and $9
More than $9
Source: Informa & SAP, 02/2012
Average monthly ARPU per SIM, US$, % of survey respondents
No. 1 concerns for CSPs
! Source: Informa & SAP, 02/2012
© 2013 SAP AG. All rights reserved. 19 Public
Future value shift in M2M communications
M2M revenue
distribution 2012
2015 Service Enablement
Application Services
Connectivity & Hardware
Ver$cal Industry specific solu$ons and managed services
Decision support, Reports and alerts, Data collec$on storage and analy$cs, Device monitoring and control, Development toolkit and system integra$on
Communica$ons services, associated communica$ons hardware (modules, terminals, devices)
Source: SAP/Informa (2012) This slide has speaker notes
© 2013 SAP AG. All rights reserved. 20 Public
New revenue opportunities - the value proposition
Source: The Need for New business Models, GSMA (2012)
Value Proposition Progression (higher Commercial Impact Opportunities)
Basic Connectivity
Managed Connectivity
Platform Innovator
Stewardship Services B2B
B2C
Value evolution will drive business model roadmap
“Our platform helps you to build and launch new, connected services”
“We will take care of all of your energy needs”
This slide has speaker notes
© 2013 SAP AG. All rights reserved. 21 Public
What CSPs say and do
“We’re particularly looking at the sections between us and the end user. What our customers want, beyond connectivity, are more services and see there is a big revenue and growth opportunities in platforms, applications and services, and we are looking at these areas very intensively”
Martin Ratcliffe M2M Strategy & Partner Manager, Vodafone Group [TM Forum 2012]
We expect about 50% of revenue to come from connectivity and the rest from services, which we will manage in different ways.
Jurgen Hase, VP, M2M Competence Center, Deutsche Telekom [TM Forum 2012]
“
“
SAP and M2M
M2M Market
Market Challenges and Billing Requirements:
1/ Low ARPU
2/ Massive scale
3/ Changing value chain/s CSP value statements
4/ New business models
Summary
This slide has speaker notes
© 2013 SAP AG. All rights reserved. 22 Public
Multi-sided Partner Revenue Sharing
Consumers
App developers
Corporate Clients
App/Service Store
Resellers
¥
$
€
Module and Terminal vendors
System integrators
Specialized solution providers
Specialized communication providers
€$
£
¥
€£
$
NW operators
Specialized service providers
Service Provider
This slide has speaker notes
© 2013 SAP AG. All rights reserved. 23 Public
12.7% 3.6% 0.9% 2.7% 4.5% 10.9% 11.8% 11.8% 14.5% 15.5% 20.0% 20.0% 27.3%
46.4% 51.8%
Don't know / Other
Military / defence Agriculture / food
Oil and gas / mining Manufacturing /
Integrators Public safety
Consumer Operators / MVNOs
Health Financial services
Automotive Utilities
Transport and
% of CSPs
CSPs’ target industries
Opportunities: ü Seek horizontal scale of M2M services and apps ü Focus shift to specific apps versus specific industries ü Monetize the value that lies in the data
Source: Informa & SAP, 02/2012
SLA based
RUN IT IaaS
Infrastructure as a Service
BUILD IT PaaS
Platform as a Service
USE IT SaaS
Software as a Service
App based
Recurring fee
Freemium
Usage based micro payments
Revenue share
CHANGE
AHEAD
Revenue capture in the M2M value chain Top concern for CSPs Source: Informa & SAP, 02/2012
!
© 2013 SAP AG. All rights reserved. 24 Public
Resources
Explore Market Dynamics
Monetizing Services in the Hyperconnected World Shifting business models from products to services
M2M Communications Turn Potential into Profit – an Informa and SAP survey
Rise of the machines Moving from hype to reality in the burgeoning market for machine-to-machine communication
This slide has speaker notes
Customer references SAP BRIM in Telecommunications
© 2013 SAP AG. All rights reserved. 26 Public
TELUS – Increasing Revenue and Improving Customer Service for Prepaid Subscribers with SAP Convergent Charging
Company
TELUS Communications
Headquarters
Vancouver, Canada
Industry
Telecommunications
Products and Services Wireless, data, Internet protocol, voice, and television services
Employees 40,100
Revenue
CAD$10.5 billion
Web Site
www.telus.com
Executive overview BUSINESS TRANSFORMATION
The Company’s top objectives • Move away from legacy systems to enable online charging • Improve charging domain performance to reduce revenue loss • Offer flexible price plans to accommodate diverse customer needs
The resolution • Implemented the SAP® Convergent Charging application for the prepaid subscriber
base • Assembled an internal delivery team responsible for rolling out the application on time
and within budget • Tested performance and architecture with ancillary systems to ensure targets were
adequately met • Integrated with MediationZone from DigitalRoute (now the SAP Convergent Mediation
application by DigitalRoute)
The key benefits • Support for a larger volume of interactions with customers, better service, and
improved customer experience • Increased revenue and reduced overall cost of ownership • Material increase in ARPU
“TELUS’ Customer First declaration compels us to be clear, helpful, and dependable. With the real-time data rating provided by this application, we have been able to launch data on smart devices for prepaid subscribers without delays. When a customer purchases a data plan, it becomes effective immediately.”
Ibrahim Gedeon, CTO, TELUS Communications Company
TOP BENEFITS ACHIEVED
100% Reduction in revenue loss due to late charging
<1 second Time required for customer feature purchases to take effect (reduced from four hours)
99% Reduction in charging system response time
© 2013 SAP AG. All rights reserved. 27 Public
AT&T Business: Converging Billing across 60+ Billers
Company
AT&T Inc.
Headquarters
San Antonio, Texas
Industry
Telecommunications
Products and Services wired and wireless telecommunications
Employees
183,000
Revenue
US$66 billion
Web Site
www.att.com
TOP BENEFITS ACHIEVED
î Reduction in DSO
Reduction in bad-debt write-offs
ì Accelerated cash collections
Improved agent productivity
BUSINESS TRANSFORMATION
The Company’s top objectives • AT&T Business Services has 60+ billing processes and systems • Rooted in a product-focused history • Expensive to maintain - redundancy drives costs when responding to business
changes • Difficult to get an integrated financial view of the customer • Desire to strengthen financial controls prior to the Sarbanes-Oxley Act • Desire to improve back-office efficiency and move towards a functional role for back-
office staff
The resolution • Implemented SAP Billing for Telecommunications in an Oracle back-office
environment • Integrated with several legacy billing systems • SAP solution consolidates information from all billers and scales call-center to 1000s
of users
The key benefits • Reduced A/R DSO, Accelerated Cash Collections • Reduced Reserves, Reduced Carrying Cost • Reduced Bad Debt Write-offs
© 2013 SAP AG. All rights reserved. 28 Public
Swisscom Mobile looks to SAP software to transform credit and collection processes
Company
Swisscom Mobile
Headquarters
Bern, Switzerland
Industry
Telecommunications
Products and Services Mobile telecommunications
Employees
2,460
Revenue
SFr 4.49 billion (€2.8 billion)
Web Site
www.swisscom.ch
Executive overview BUSINESS TRANSFORMATION
The Company’s top objectives • Implement flexible IT solution that enables fast response to competitive challenges
and growth opportunities • Revamp operations to increase revenue, reduce debt, and ensure consistent quality • Replace legacy software with SAP application that reduces maintenance costs,
improves efficiency in payment and collection processes, and avoids cost-intensive modifications
• Minimize legal and compliance risks with accurate and flexible reporting
The resolution • SAP Solution and Services: SAP Revenue Management and Contract Accounting
(SAP RM-CA) application • Redesigned IT landscape and organization to support customer-based processing • Developed use cases and prototypes early via collaboration among business experts
from SAP Consulting, IT staff, and test team • Implemented project on time, on budget, without customer disruption
The key benefits • 160% ROI with payback achieved in 3.5 years • SFr 4 million (€2.5 million) annual reduction in operating costs and massive reduction
in bad debts • SFr 10.5 million (€6.5 million) annual increase in revenue
“Thanks to the improved business model enabled by SAP Revenue Management and Contract Accounting (RM-CA), routine, intensive manual efforts by our credit and collection personnel are a thing of the past.”
Hans Suess, Head of Credit and Collection Management, Swisscom Mobile
TOP BENEFITS ACHIEVED
20% Fewer dunnings
40% Fewer blockings
35% Fewer full-time equivalents required per million customers
© 2013 SAP AG. All rights reserved. 29 Public
Swisscom Mobile looks to SAP software to transform credit and collection processes
Executive overview BUSINESS TRANSFORMATION
The Company’s top objectives • Increase collections of accounts receivables and speed up payments • Provide collections managers with more flexible and powerful dunning tools • Consider a wider range of parameters in forming collections strategies • Employ business rules evaluated at run time in determining next steps to take in
dunning processes
The resolution • Began with prototype to earn confidence, convey the new approach, and elicit
requirements from business users • Completed implementation on schedule and within budget • Delivered ready-to-use collection functionalities in a preconfigured call center
framework
The key benefits • Changed perception of collections from necessary evil to profit center • Implemented remote access via the Web, enabling external agencies to perform
collections • Drove high-risk customers to lower-cost products • Automated processes, reducing headcount • Increased collection agents’ efficiency
“Our dunning improvements have had such a profound impact on our cash flow that Credit & Collections is now viewed as a key contributor to the business – not the necessary evil it was in the past.”
Vassilis Vassilakis, Financial Solutions & Decision Support Systems Director, WIND Hellas
Company
WIND Hellas
Headquarters
Athens, Greece
Industry
Telecommunications
Products and Services Mobile , fixed and Internet telecommunications
Employees 1,300
Revenue
€1.073 billion (2009)
Web Site
www.wind.gr/en
TOP BENEFITS ACHIEVED
40% Increase in collections productivity
30% Increase in speed of changing collections logic
Daily Reassessment of complete subscriber base instead of monthly before
© 2013 SAP AG. All rights reserved. 30 Public
MTS Allstream: Unifying Multiple Billing Systems to Enhance Customer Care
Company
MTS Allstream Inc.
Headquarters
Winnipeg, Canada
Industry
Telecommunications
Products and Services wired and wireless telecommunications, internet, and TV
Employees 6,000
Revenue
CAD$1.8 billion
Web Site
www.mtsallstream.com
Executive overview BUSINESS TRANSFORMATION
The Company’s top objectives • Unify invoices and create a consistent bill format for multiple line-of-business billers • Manage financial interactions in a customer centric manner • Standardize collections processes and reduce cost of payment processing • Increase productivity of service reps
The resolution • Implemented the SAP® Convergent Invoicing package along with functionality for
customer financial care and revenue and collections management in the SAP Customer Financial Management package
• Received excellent support from business constituents • Engaged strong technical resources from SAP Consulting for implementation
The key benefits • improved customer experience and enhanced customer satisfaction by creating a
simplified invoice • Reduced collections calls to customers with streamlined collections processes and
transparent practices • Streamlined service calls using identical bill images for service reps and customers • Reduced financial risk with more accurate measurement of consumer
creditworthiness
“With SAP Convergent Invoicing we transformed our billing environment to deliver a single, easy-to-understand bill to our customers – faster and cheaper than many other telecommunications companies in North America.”
Doug Pelland, Director, Solutions Management, MTS Allstream Inc.
TOP BENEFITS ACHIEVED
25% Reduction in calls received in customer care
15% Decrease in paper, printing and postage costs
© 2013 SAP AG. All rights reserved. 31 Public
Telekom Slovenije IPKO: Prepaid Quadplay
Company
IPKO Telecommunications LLC (Telekom Slovenije group)
Headquarters
Pristina, Kosovo
Industry Telecommunications
Products and Services
Mobile and fixed-line voice, Internet, TV
Subscribers
400,000
Web Site
www.ipko.com
Executive overview BUSINESS TRANSFORMATION
The Company’s top objectives • Handle rapid growth in a competitive market • 98% prepaid market requires constant promotions to ensure loyalty • Cover all services in a single charging solution usable by business analysts
The resolution • Implemented the SAP® Convergent Charging application initially for broadband • Extended implementation first to mobile (replacing a prepaid solution from their
network vendor), then to IPTV
The key benefits • Customer reports having a bright idea on Monday,
configuring it in the solution on Tuesday, running promotions on Wednesday and seeing results by the end of the week
“SAP Convergent Charging gives us the freedom to react quickly to market demands and be very creative with our price plans and bundles. We can adjust our price plans in real-time without disrupting service. Giving us a real advantage in keeping ahead of market demands.”
Akan Ismaili, Former CEO, IPKO Telecommunications LLC
TOP BENEFITS ACHIEVED
<1 day To configure new quadplay promotions (down from 3-6 months in previous mobile prepaid solution)
FIX
CONVERGENT GSM
GSM
© 2013 SAP AG. All rights reserved. 32 Public
XOX Malaysia: Competing on pricing & charging
…whether postpaid, prepaid or hybrid – XOX is all
about innovation.
…with unparalleled charging and
payment flexibilities.
© 2013 SAP AG. All rights reserved. 33 Public
NRJ Mobile, France: targeting a youth audience
“As a pure MVNO it’s essential that we can be reactive and quickly introduce innovative services and price plans for our customers both now and in the future. By choosing [the SAP solution], we have complete control over the back office and the pricing, rating and billing functions.”
Jerome Birba, Director of the NRJ Mobile Project
Youth Targeted
Offer Free
Concert Seats
© 2013 SAP AG. All rights reserved. 34 Public
Carrefour Mobile, France: combining in-story loyalty with mobile services
“Our objective is to offer our customers the most relevant and attractive services and products available, and this includes households that own a Carrefour loyalty card. Our success is determined by our ability to quickly respond to the needs of our clients. We appreciate the agility and the single solution nature of SAP Convergent Charging.”
Sébastien Mesnil, Division Manager, Carrefour Digital Services
© 2013 SAP AG. All rights reserved. 35 Public
T-Systems RUNS BETTER SAP CRM and Billing platform
“Thanks to the SCRUM methodology, we were able to succeed in just twelve months, a system that was developed over eight years in one of the largest CRM installation in Europe.” Detsch Peter, T-Systems International GmbH
Company
T-Systems
Headquarters
Frankfurt, Germany
Industry
Telecommunications, Service Provider
Products and Services
Telecommunications and IT Services for large enterprises
Employees
48,200
Revenue
US$9,5 billion
Web Site
www.t-systems.com
Executive Summary � The SAP team delivered a highly successful solution for T-Systems’ Service Provider business of 4300 users substituting an existing CRM and a new Billing platform
� The Company’s top objectives • Replacement of old cost and maintenance intensive Siebel CRM • CRM is the central link for all business relevant processes
• Ensure reliable and traceable billing for new and existing services
� Resolution • Implementation of SAP CRM (Sales and Service except incident mgmt.)
• Only 11 months project duration with the SCRUM implementation approach • Implementation of SAP Billing for Telecommunications for new Services
� The key benefits • Single point of truth for customer relevant information • Implementation of an E-t-E infrastructure
• Decreasing complexity of interfaces and number of systems • Increased visibility and correctness in the Billing process
TOP BENEFITS ACHIEVED
15% TCO reduction
360° View of the customer
© 2013 SAP AG. All rights reserved. 36 Public
T-Systems: Profile
89 DATACENTERS
WORLDWIDE
20,000 CLOUD
SYSTEMS
1.6M MANAGED DESKTOPS
• Manage 70% of top 100 companies of all industries in Germany
• No. 1 in the ICT market in Germany • No. 1 in EMEA in manufacturing • No. 1 in Germany in the transport sector • No. 1 in Germany in the public sector
© 2013 SAP AG. All rights reserved. 37 Public
Kunde
Customer Contract
Customer Inventory
Customer Invoice
ORCA
SAP Charging)
Guiding
Rating
SAP -CRM
Lead /Oppty.
Technical Order Management Ready for
Service Usage
Recording Provisioning
myMDS Order
Placement
Inventory
Invoicing Rev Mgmt
SD
CCP
Customer Order
Catalogue
Sales - & Order Management
SAP ERP
Usage - Guding & Rating Invoicing / Accounting/ Financial Customer Care
§ Implementation of an integrated "Commercial Order Management" system chain to represent and process the relevant contract types as well as the product and service portfolio
§ High flexibility in respect of new service offerings like Cloud Computing,
§ Less complexity in order to implement various global customer hierarchies, contract designs, pricing models and bill presentment.
§ Shortening “time-to-market” and implementation lifecycle for product innovation.
Challenge § Better integration capabilities e.g. master data
structures, processes integration by using an end-to-end embedded infrastructure.
§ Unified usage of SAP data structures eliminates complexity, thus reducing effort for interfaces, manual correction of data, ...
§ Single point of truth for customer relevant information and 360 degree view on the customer.
§ Flexible framework based on best practices focused on mass data and B2B business.
SAP Value Add
SAP “Lead-to-cash“ infrastructure
Contract MM
IT Backbone Lead-to-cash: CRM – CC – CI - RMCA
Other Modules
© 2013 SAP AG. All rights reserved. 38 Public
Value Add from T-Systems Point of View
IT strategy Business processes
Management User
§ Greater flexibility in the development of innovation through greater transparency of the application landscape
§ High integration into the T-System application landscape
§ Stringent user-guidance in relation to procedural and methodological tasks
§ SPOC of documentation along the corporate value chain and corporate processes
§ Intuitive tool-handling
§ Intelligent steering of the required process variation
§ Central source of information for all customer-related activities.
§ Consistent reporting
§ IT operating cost reduction
§ Minimization of the required application interfaces along the supply chain
April, 2013
SAP Solutions for Online Charging
January 2014
Legal disclaimer All information contained in this presentation is provided under NDA The information in this document is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This document is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation and SAP's strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information on this document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP intentionally or grossly negligent. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.
© 2013 SAP AG. All rights reserved. 41 Public
Origins of the SAP Solution for OCS
1996
2000
2009
2012
R&D project for cross-service, prepaid/postpaid, multi-sided monetization
Spinout of Highdeal, VC-funded, hundreds of customers and NEP OEM partners
Acquisition of Highdeal, launch of SAP Convergent Charging as a modular part of CRM, Charging and Billing solution portfolio
Partnership with DigitalRoute for integrated Convergent Mediation and Predictive Policy Management
© 2013 SAP AG. All rights reserved. 42 Public
SAP Billing for Telecommunications
OCS Scope
Manage Subscribers Collect Usage Price and Charge Bill and Settle
Generate Correspond-
ence Handle
Payments Manage Credit
and Collections
Provide Customer Care
SAP Customer Usage Analytics
§ Customer analysis § Usage analysis § Financial analysis
Integration to hybris Omni Channel Commerce, SAP 360 Customer or other CRM systems
SAP Convergent Mediation
by DigitalRoute
§ Online and Offline Mediation
§ Policy Management
SAP Convergent Charging
§ Service pricing and modeling
§ Online and Offline Rating
§ Partner revenue share calculation
§ Online account balance management
SAP Convergent
Invoicing
§ Customer billing & invoicing
§ Partner payment statements
SAP Customer Financial Management
§ Revenue management § Credit Management § Payment handling § Online bill presentment
SAP Document
Presentment by OpenText
§ Invoice personalization
§ Document archive management
SAP Sales and Order
Management
§ Product Catalog and offer management
§ Order capture § Order
Distribution
SAP Convergent Pricing Simulation
§ What-if simulations of pricing changes based on mass historical data
§ Financial customer care § Collections management § Dispute management
SAP HANA Real-Time Data Platform
© 2013 SAP AG. All rights reserved. 43 Public
Traffic Growth
Move counting and aggregation into the network
Off load back-end systems
Retain rich Big Data for analytics
OCS Challenges & SAP Approach
Suppor t mul t ip le lines of businesses with a single highly-configurable solution
Proven for prepaid, postpaid, B2C, B2B, M2M and multi-sided partner settlement
Time to Market for New Services
R e d u c e t i m e t o value and leverage legacy OSS/BSS by deploying in modular steps
Massive scale-out model for low TCO
Cost Pressure
© 2013 SAP AG. All rights reserved. 44 Public
SAP Online Charging System Capabilities
SAP OCS
Voice Data Session Control PCEF Service
Platforms
IMS
Billing Order Management CRM Business
Intelligence Revenue
Assurance
Enterprise Web Services
3GPP/IN Standard Protocols
Online Charging
Account Balance Mgmt
Taxation
Offline Charging
Partner Revshare
Analytics
Rating B2C, B2B
Rerating
Mediation PCRF
Notifications
Counting & Aggregation
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3GPP Compliant Architecture
PCEF AF BBERP
V-PCRF S9
Gy Gz Gx Gxx
TDF
SAP Predictive Policy
SAP Convergent Charging Online Agent
UDR SPR
CRM
UDR SPR
Charging Product
Instantiation
Traffic Detection Function
OCS OFCS UDR SPR Online Charging System Offline Charging System
Application Function Bearer Binding and Event Reporting Function
Roaming
Policy and Charging Enforcement Function / Gateway
SAP Convergent Mediation
SPR
Subscriber Profile Repository
UDR
User Data
Repository
Sp Ud
External
Sd
Policy Product Instantiation
GGSN/PGW
Rx
API (Gy “Like”)
API (Sy “Like”)
SAP Hana
SAP Convergent Charging
File output
Billable/Non billable info, additional source for rule
SA
P H
ana
Age
nt
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Evolution of mediation platforms
Mediation
● Millions of records
● Principal use: billing and revenue assurance
● Mainly offline processing
Advanced Mediation ● Billions of records
● Offline & online mediation, ETL, PCRF on one platform
● Linux and COTS HW
Informa$on brokering ● Tens of billions of records ● Mediation as a strategic
enabler with decisioning, customer centric data reduction and value creation
● Cloud as a disruptive enabler platform
Control cost Manage the data overflow
Simplification of systems
Control and optimization of
revenue streams
CO
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Convergent Mediation Processing capabilities and interfaces
Processing capabilities Data validation Routing Enrichment Format conversion Filtering Error management Merging / splitting Usage counting Policy Control Complex Event
Processing
Sources Destinations
Charging and Billing
DWH / Analytics
Roaming/ Interconnect
Tracking M2M
Policy Management
Fraud Management
Network Management
Customer Experience
Management
Networks
Databases
Machines &
Devices
Applications
Off-the-shelf interfaces Diameter (any: Gy, Gx, Sy…) Web Services Radius JMS (S)FTP HTTP Netflow TCP/IP sockets SCP SNMP Disk GTP’ LDAP Twitter DB (multiple) HDFS (Hadoop) REST/JSON SAP HANA SAP CC
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Convergent Mediation: Flexible configuration
Workflow engine enabling rapid configuration Powerful and flexible configuration language (APL) Visualization of all data flows, from input source to target system Full self-sufficiency � Large library of off-the-shelf
connectors (a.k.a. agents) for rapid interface integration
� Other non standard agents can be built in DTK
� Realization of new use-cases not dependent on product changes
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Convergent Mediation OCS Capabilities
Protocol Support • Full diameter support:
• Any Diameter flavor supported via simple configuration (Gy, Gx, Sy…). • Support for RFC 3588 (Diameter Base Protocol). • Any AVP can be added by simple configuration through the user interface.
• Additional protocols include Radius, Webservices, JMS, TCP/IP. Platform can be used as a protocol converter - including between different diameter versions or to offline support.
Processing logic • Processing logic via simple configuration, using mix of icon based interface and scripting • Online to offline, offline to online and online to online processing are available. Native load sharing
capabilities. • Session persistency capabilities, with timeouts. Flexible aggregation criteria. Sessions to disk, in memory
or in geo-redundant in-memory databases • One to many online outputs, routing control (including session persistent routing) functionalities using
existing agents. Monitoring • Full monitoring layer, with built-in KPIs (latency, queues…). Rich alert mechanism. • Overload protection for diameter, with configurable strategies per diameter application
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Convergent Charging
“” The flexibility and speed at which we could create and modify price plans was second to none. It is so user friendly that now even non-technical financial managers are able to introduce new tariffs.
Raphaël Bichon, Project Manager, SFR
Accelerate time to market
Designed for use by business users
Configure (not code) price plans, charge plans and bundles for customers and partners
Allocate fees and credits to multiple financial accounts prepaid, postpaid, hybrid
Optimized for maximum performance with low TCO
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Charging Modes • Event Charging: Immediate Event Charging, Event Charging with Unit Reservation • Session Charging with Unit Reservation
• Reserve, Confirm, Cancel, Time-to-live, Default Resolution, Inverse Rating, Advice of Charge, Reauthorization Request*, Policy Counter/Spending Limits (Sy)*, Multiple Service Credit Control*
• Persistency of all data across hardware failures, including transient session data • Real-time tax determination VAT or US Telco Taxation • Full rerating capability for postpaid online/offline Account Balance Management • Subscriber accounts can contain multiple prepaid wallets and postpaid accounts • Each prepaid wallet has its own lifecycle: active, blocked, locked, closing dates • Alerts on balance thresholds, lifecycle events • Hybrid prepaid/postpaid charging: Decision Tree logic to determine which account/wallet to impact for
charges • Refills/Topups: Decision Tree for which balances/counters to update, which lifecycle dates to change;
threshold-based immediate account refills*
Convergent Charging OCS Capabilities
* Lab Preview
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Optimize volumes along the process chain
Analytics/BI
Billing Revenue
Management
Online Rating & Charging
Counting & Balance Mgmt Aggregation,
Detail Filtering
Online Mediation
Filtering, Counting &
Aggregation
Phase 2 Phase 1 Before
System 1
System 2
System 3
System 4
Tier 1 Operator in Western Europe: Record Reduction across BSS systems
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Solution Architecture
Convergent Mediation
• Centralized control logic and distributed execution
• Increase capacity by adding servers hosting the execution context
Convergent Charging
• Load-balancing with dispatchers and guiders
• Separate processes for rating, provisioning, bulkloading and taxation
Common Attributes • Java-based, no hardware dependencies, commodity hardware, OS, DBs and VMs • Transaction persistence for stateful data, immediate failover, geo-redundancy through DB
replication and/or multi-site subscriber partitioning • Dynamic scaling, add/remove nodes or upgrade with zero downtime
Access, O&M, Config UIs
Platform Execution Guiding, Charging
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SAP Convergent Mediation Scalable and Reliable
BSS Mediation Tier-2, Europe
BSS Mediation Tier-1, US
LTE, real-time OSS Tier1, APAC
CEM Probe Tier 2, Europe
LTE Real-Time OSS,
Tier 1, US
3G RAN, OSS Tier 1, APAC
Radio Access Monitoring feeding Performance Management systems drives highest volumes today
188 Billions -‐ <250k$ 103 bn
35 bn 39 bn
6 bn 0.2 bn
Data volum
e
(Billions of e
vents/day)
Telco Grade High Availability SAP Aligned Support Geo Redundancy
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Convergent Charging scaling and Performance
Requirements: 99.999% HA, <40 ms Latency, 200,000 TPS Common Sizings
Subscribers 1M 10M 25M
Application Blades 7 10 19
300,000 773,000
TPS, with counter update
TPS, with no counter update Mobile subscribers
200 M Benchmark Results
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SAP Solution for Predictive Policy Management
Mediation Aggregated Events User plan data traffic logs
SAP HANA
Hana Analytics engine does all analytics work of analyzing all events. Result is returned to Policy
Policy Network control
instruc$ons
Network Analytics
Collect, correlate, aggregate and enrich events from all nodes, keep in-memory and match different event types and produce output.
Policy collects results from Hana, Transforms that to instructions to network, Controls network according to those
Usage habits
Charging CRM Billing
Lifetime value, credit score
Loyalty, purchase habits
Usage Debts, financial scoring…
PredicPve Analysis
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Telus Mobile Prepaid Data Use Case
Convergent Mediation from DigitalRoute
TELUS Network GGSN PGW
Diameter Protocol (Gy)
SAP Convergent Charging
SAP CC API
Balance Management
System (Alcatel- Lucent)
Diameter
MMSC SMSC
1. Request from Network is received over Diameter (for Data, SMS…)
2. The Mediation solution checks if it needs to forward it to SAP CC or another system
3. The Mediation solution asks SAP CC to compute a price, update counters and for any notifications
4. The Mediation solution asks the Balance Management System for an authorization for balance updates
5. The answer is sent back to the network element (allow/block) as well as notification orders
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Real time control of data consumption for subscribers
Alignment with BSS transformation strategy
PCRF for multi vendor network able to support strategic requirements
Large Nordic Telco Operator
GGSN / PGW (NSN Flexi ISN & Ericsson M120)
PCRF
PCC (”Gx”)
DCCA (”Gy”)
Ac$ve Media$on
Offline Charging (ASCII / batch)
OFCS
AF (Acme)
Rx
IT Online
SOAP (Prov, query,
noP) ASCII/batch (Provisioning)
OCS
Gy
DigitalRoute
Ericcson, NSN
First phase deployed in 3 months:
• Fixed price for mobile data in selected countries
• Subscribe through SMS or customer service
• Multiple packages valid for 24h
• Activation on first use, automatic renewal offer
• Low quota warning via SMS, SMS balance enquiry
Requirements
Results
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IPKO: Convergent Charging Architecture
SAP CC
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Summary & Next Steps
Potential Next Steps
• Deep dive workshop and demo
• SAP Telco Challenge: we configure your most challenging scenarios
• Value Engineering: explore business value drivers for OCS
Massive Scalability
One Solution, Multiple Scenarios
Product-based Solution, Low TCO
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Telecommunications Internal Community https://jam4.sapjam.com/#wiki/show/68904 Complementing SAP Sales Portfolio and Solution Explorer via social collaboration capabilities among cross-functional stakeholders SAP for Telecoms iPad App https://ipad.mediaspectrum.net/SAP/index.html App that includes all of the assets, sales tools, recent news and announcements in the industry Telecommunications Flipboard Channel https://flipboard.com/section/beyond-telco-b3hBWT Magazine and community sharing relevant stories in the Telecoms industry Social Media Channels
SAP.com: SAP for Telecoms Twitter: SAP for Telecoms YouTube: SAP for Telecoms Facebook: SAP for Telecoms
Telecoms Internal Community
SAP for Telecommunications Providing the Tools that You Need!
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Visit Us Online to Learn More
https://twitter.com/SAPBRIM
www.linkedin.com/groups/SAP-Billing-Revenue-Innovation-Management-4471112
www.youtube.com/playlist?list=PLEA13AE5BFA022836
http://scn.sap.com/community/crm/sales
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