Oracle Communications Strategyopnpublic/... · Oracle Communications Strategy ... CDMA2000-1x...

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Oracle Communications Strategy

Close collaboration with our Partners is critical to the success of our Business Unit

& Oracle's goal of becoming #1 in Applications for the Communications

market ”

-- Bhaskar Gorti, General Manager, CGBU, Oracle

Angel García, Senior Director Business and Technolo gy TransformationOracle Communications19th May 2009

2

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions.The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

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Business Transformation :

An Imperative

4

A Dynamic Environment: A Volatile Economy

• Volatile economic climate

5

A Dynamic Environment : Competition and Consolidation


• Fierce competitive landscape

6

A Dynamic Environment : Emerging Business Models



• Emerging business models

Coreproductportfolio

New methods ofcollaboration/

integration of services

Increasein amountof services

Amount of services

Cor

resp

ondi

ng M

arke

t S

hare

Decreasein relative

market share

7

A Dynamic Environment : User Experience and Devices



• Emerging business models

• New technology paradigms

A Customer Driven World

8

3GPP LTEUMBFlash OFDM

A Dynamic Environment : The Bandwidth RaceFuelled by emerging network technologies

Data Rate

100 Mbps

10 Mbps

1 Mbps

100 kbps

10 kbps1 m 10 m 100 m 1,000 m 10,000 m

Bluetooth

WiMax802.16d (2004) �� fixed802.16e �� Mobile

W-CDMACDMA2000-1xGSM/GPRS/EDGE

TD CDMAHSPA1x EV-DO

WiFi802.11a

WiFi802.11g

WiFi802.11b

WiFi802.11n

3G / 3.5G Technologies

Mobility Range

*Real-life bandwidth figures

9

The Dramatic Impact of the Internet

Ser

vice

Pro

lifer

atio

n

Service RevenuesLow

Low High

High

How to provide

carrier grade quality?

How to foster a step

change in innovation?

INTERNET SERVICES DOMAIN

COMMUNICATIONS SERVICES DOMAIN

THE PRIZE

best-practice combination of

strategy and operational

effectiveness

10

the Price

of DSL

the Speed of

Broadband

the Mobility

of Cellular

Customer user experience we’re striving for …

but Easy to Use

One Number

One Message Box

One Address Book

One Point of Contact

One Bill

One Secure Connection

Customer experience

Customers behavior today is different

11

Telcos Need to transform to Horizontal Network

Mob

ile

Fix

ed

Tel

epho

ny

Fix

ed

Bro

adba

nd

WLA

N

Services

Transport, Switching & Access Networks

AccessAccess

Access

IP Multi-Media Network

Services Environment

ServicesContent Partners

Today’s RealityVertical Networks (single service)

TomorrowHorizontal Network (multi-services)

SDPSDP

IMS or IMS or Internet + Internet +

Telco Telco FunctionsFunctions

12

Telcos need an urgent step change in all dimensions of productivity

CustomerIntimacy

OperationalExcellence

• Achieve a single view of the customer

• Create a single bill for the customer

• Offer a single point of contact to the customer

• Offer multi-channel contact

• Offer self-provisioning and account management

•Dramatically reduce TCO•Dramatically simplify the product catalog•Rationalize business processes

Rapid ServiceInnovation

• Launch innovative new services ASAP

• Enable next generation services –Network transformation

• Maximize convergence value –Develop Multi-play

• Dynamically bundle new and old services together

• Proactive migration of customers to new IP services (Fiber,…)

13

Oracle´s Strategic Approach to

Business Transformation

14

Telecoms Market Dynamics has led to Complex, Siloed Systems

Dynamics in Communications

• The evolution of support systems within different business units• Network and IT• Wholesale and Retail

• Fixed and Wireless

• M & A related

• Network evolution – 2G, 2.5G, 3G

• Service led design of support systems

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This Siloed Approach has led to Inflexible ‘IT’ Systems

4.2%

10.8%Telco

IndustryAverage

23%

76%Operational

Capital

7%

79%Services

Software

Build vs. Buy

OPEX vs. CAPEX

Spend as a % of Revenue

IT Spending per Employee

$10,708

$17,391Telco

IndustryAverage

TCO Impact

• Ability to respond to market challenges is put at risk due to IT complexity

• New services are “shoe-horned” in at great cost• Systems are difficult and expensive to support• Un-competitive cost structure vs new entrants

Time To Market Impact

Time To Market

Com

plex

ity

IT CustomImplementations

Source: Combined Analyst Sources 2008

16

The importance of modern software practice

17

Oracle

ERP Applications

Financial Mgmt Asset Mgmt Procurement Project MgmtHR Help Desk

Business Applications

Campaign Mgmt PLM EBPPCall Center

MgmtSelf-Care

PartnerMgmt

SalesAdvanced

CRM

Technology

Analytic Apps

Oracle Communications – 2004

Telco-Specific Business Operations

Reconciliation

Service Fulfillment Billing & Revenue Management Assurance

Service Assurance

Revenue Assurance

Provisioning

Pricing Balance Mgmt

Billing

Invoicing

Mediation

Payments Vouchers

Revenue Control

Interconnect

SettlementsA/R & Collections

Service Activation

Rating

Service Creation Environment

Design

Infrastructure

Database

Middleware

ServiceDelivery

Apps

Residential Telephony

Svcs Gatekeeper

Virtual PBXInventory Mgmt

Discovery

ISV Partners

Operations Analytics

CRM Analytics

ERP Analytics

Enterprise Analytics

18

Oracle Communications - Investing In Market Leaders

Best in Class:Enabling carrier grade framework

Best in Class:Customer & Order Management

Best in Class:Service Delivery Platform

Best in Class:Billing & Revenue Management

Best in Class:Network Management

Best in Class:Network Intelligence & Analytics

Best in Class:Middleware

19

Oracle

ERP Applications

Financial Mgmt Asset Mgmt Procurement Project MgmtHR Help Desk

Business Applications

Campaign Mgmt PLM EBPPCall Center

MgmtSelf-Care

PartnerMgmt

SalesAdvanced

CRM

Technology

Operations Analytics

CRM Analytics

ERP Analytics

Analytic Apps

Oracle Communications Today

Telco-Specific Business Operations

Service Fulfillment Billing & Revenue Management Assurance

Service Assurance

Revenue Assurance

Service Activation

Design

Infrastructure

Database

Middleware

ServiceDelivery

Apps

Inventory Mgmt

Discovery

ISV Partners

Provisioning

Reconciliation

Enterprise Analytics

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Oracle´s Strategy

21

• Supporting the essential business processes of Service Providers

• Packaged software approach

• Provides holistic customer view across the enterprise

• Pre-built integrations to Oracle enterprise applications

• Built to industry standards

An Integrated Applications Suite

22

Transformation StrategyBuilding Blocks

Business Processes

COTS Components

Common Data Model

Master Data Management (Customer

/ Product)

Co-Existence with Legacy

Productize Integration (AIA)

23

Business Processes

Business Processes

• Conforms to standards (eTom industry reference model)

• Process thinking and modelling (vs. coding) across the organization to accelerate business agility and IT flexibility

• Monitoring metrics at business-level provides insight on business process performance


24

Oracle – eTOM Mapping Wide functional coverage

Complete Coverage

Partial Coverage

25

eTOM Processes for Communications Reference Models

11 Communications Business Process Models (L0 –L3) to support the following key Communications business processes :

� Concept-To-Launch:• Manage Product Lifecycle by creating and

maintaining products across CRM, Billing, and Service Configuration Environment.

� Order-To-Bill:• Automates data synchronization to ensure the

accuracy, and real-time availability of customer, billing, product, and pricing data

� Order-To-Activate:• Automates Order Fulfillment process from the

time the order is submitted till the time is activated and bill charges are applied.

� Customer Service:• Enable Self-Service and Agent Assisted

Customer Service• Manage customer inquiry, bill payment, service-

related changes� Trouble-To-Resolve:

• Enable automatic creation of Trouble Tickets for Failed Orders - included

• Enable trouble reporting by customer.• Enable automatic trouble reporting other than

order (SLA, network failure) – not included � Collections:

• Manage collections process across Billing and CRM systems

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The Concept to Cash Value Chain

3 CampaignExecution

• Campaign Management

• Sales Execution

• Real-time up sell/cross sell

• Order Capture and Commit

4 Service Fulfillment

• Inventory assignment

• Order orchestration

• Provisioning

• Service Activation & Configuration

5 Usage Charging

• Service Delivery & Usage

• Service Mediation

• Real-time charging and billing

• Discounts and promotions

1 Concept Creation

• Customer insight

• Behavioral and revenueanalytics

• Segmentation analysis

• Concept generation

2 Service Design

• Service definition & configuration

• Service pricing, bundles and promotions

• Service network deployment

• Service trials and release

• Customer and invoicing

• Trial billing

• Receivables and G/L

• Collections

• Partner settlements

6 Billing & A/R

27

• Commercial Off The Shelf (COTS) Application suite which supports the key business processes of a Service Provider

• Allows predictable cost of ownership, minimizes risk, and streamlines workflow and processes

• Software development is Oracle's core competency

Business Processes

COTS Components

COTS Components


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CampaignManagement

CampaignManagement

Corporate Sales Management

Corporate Sales Management

Channel Sales Management

Channel Sales Management

Product Strategy / Proposition

Management

Product Strategy / Proposition

ManagementProduct / Service

Catalog Management

Product / Service Catalog Management

Product Lifecycle Management

Product Lifecycle Management

Customer Information

Management

Customer Information

Management

Customer Self ManagementCustomer Self Management

Customer Contact, Retention & LoyaltyCustomer Contact, Retention & Loyalty

Order MgtOrder Mgt

Quotation Engine

Quotation Engine

Customer QoS / SLA

Mgt

Customer QoS / SLA

Mgt

Customer Service / Account Problem

Resolution

Customer Service / Account Problem

Resolution

Customer Billing Management

Customer Billing Management

InvoicingInvoicing

Collections Management

Collections Management

BillFormating

BillFormating

Receivables Management

Receivables Management

Service Specification

Mgt

Service Specification

Mgt

Service Inventory Mgt

Service Inventory Mgt

ServiceConfig Mgt

ServiceConfig Mgt

ServiceDesign / Assign

ServiceDesign / Assign

Service Rating / Discounting Management

Service Rating / Discounting Management

Workforce Mgt

Workforce Mgt

Resource Specification Management

Resource Specification Management

Resource Inventory

Mgt

Resource Inventory

Mgt

Resource Design / Assign

Resource Design / Assign

Resource Provisioning / Configuration

Resource Provisioning / Configuration

Resource Logistics

Resource Logistics

Resource Activation

Resource Activation

Resource Planning /

Optimization

Resource Planning /

Optimization

ResoReso

ResourceResource

Resource Data

Mediation

Resource Data

Mediation

Voucher Management

Voucher Management

Billing Data Mediation

Billing Data Mediation

Real-time Billing

Management

Real-time Billing

Management

Supply Chain ManagementSupply Chain Management Partner ManagementPartner Management

Revenue Assurance

Management

Revenue Assurance

Management

HR Management

HR Management

Financial Management

Financial Management

Asset Management

Asset Management

Security Management

Security Management

Knowledge Management

Knowledge Management

CompleteCoverageCompleteCoverage

Partial Coverage

Partial Coverage

Oracle – TAM MappingWide functional coverage

29

Concept Creation

6

1

2

3

4 CampaignManagement

5 CampaignExecution


• Sales Execution





• Provisioning


Usage Charging





Concept Creation





Service Design






• Trial billing


• Collections


Billing & A/R

Oracle Products

• Siebel CRM

• Siebel Business Analytics

• Billing and Revenue Management

30

Service Design

3 CampaignExecution


• Sales Execution






• Provisioning


5 Usage Charging





1 Concept Creation





2 Service Design






• Trial billing


• Collections


6 Billing & A/R

Oracle Products

• Siebel CRM


• Oracle Inventory Management

• Oracle Service Delivery Platform

31

Campaign Execution

3 CampaignExecution


• Sales Execution






• Provisioning


5 Usage Charging





1 Concept Creation





2 Service Design






• Trial billing


• Collections


6 Billing & A/R

Oracle Products

• Siebel CRM

• Siebel Business Analytics


32

Service Fulfillment

3 CampaignExecution


• Sales Execution






• Provisioning


5 Usage Charging





1 Concept Creation





2 Service Design






• Trial billing


• Collections


6 Billing & A/R

Oracle Products

• Oracle Order and Service Management

• Oracle Inventory Management

• Oracle Service Activation

33

Usage Charging

3 CampaignExecution


• Sales Execution






• Provisioning


5 Usage Charging





1 Concept Creation





2 Service Design






• Trial billing


• Collections


6 Billing & A/R

Oracle Products

• Oracle Mediation


• Siebel CRM

34

Billing and A/R

3 CampaignExecution


• Sales Execution






• Provisioning


5 Usage Charging





1 Concept Creation





2 Service Design






• Trial billing


• Collections


6 Billing & A/R

Oracle Products


• Siebel Self-Service and eBilling

• Oracle Financials

35

Concept to Cash

3 CampaignExecution


• Sales Execution






• Provisioning


5 Usage Charging





1 Concept Creation





2 Service Design






• Trial billing


• Collections


6 Billing & A/R

36

Common Data Model

• Oracle uses industry standard definitions for its data objects

• Common data object definitions reduce the complexity when integrating edge applications

• Oracles EBO (Enterprise Business Objects) also support extensibility for integration of edge applications with a custom data definition.

Business Processes

COTS Components

Common Data Model

Common Data Model


37

• High quality Master Data Management (Customer, Product) is a foundation for the new architecture

• Consolidate enterprise data entities from various sources into data hubs to enable data synchronization and migration flows

Business Processes

COTS Components

Common Data Model


/ Product)

Master Data Management


38

• A connection of legacy components allows the coexistence of the legacy until the legacy becomes obsolete

• Some legacy systems will be retired while others remain status quo

• Not all services need to be migrated

• Some services will run on legacy until they become obsolete

Business Processes

COTS Components

Common Data Model


/ Product)




39

• Application Integration Architecture (AIA)

• Focus on industry best-practice processes, not on the technology

• A productized integration reduces complexity (cost, risk)

• Simplifies coexistence in the transformation

• AIA is delivered as extensible, productized components; adaptable by partners and customers

Business Processes

COTS Components

Common Data Model


/ Product)





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ExtensionsPreservedUpgradeCore

Version

� Integation based on a “Foundation Pack”over Telco specific SOA

• Pre-buil integration which evolves as a product

• Upgradeable and reusable foundation preserves changes

• Allows custom specific extensions

• Drive down integration development and maintenance costs

Pre-built Upgradeable IntegrationsProtect Your Investment

41

Benefits drivers for Pre-Built SOA

Shorter Time to Implement

Lower Cost Of Ownership

Lower Risk

1

2

3

Best Practice Industry

Processes

Pre-Built Sustainable Integrations

Common Objects and

Services

Open Standards Based

Foundation

• Lower cost and shorter time to implement

• Higher reliability• Faster time to benefit

• Lower implementation and maintenance costs

• Higher reliability• Optimises customer effort

• Reusability• Easy to maintain and upgrade

Tenets of Pre-Built SOA

• Lower cost to upgrade• Higher predictability• Higher reliability

Benefits Drivers Benefit Impact

42

Lessons learnt from experienceWhat makes it different to other change programs?

• STANDARDISE and SIMPLIFY• Adopt standard industry business processes and best practices• Start with green field mindset • Fit business processes to applications, not the opposite• Deploy Standard, out-of-the box products

• Minimize maintenance for easier upgrades and support

• Use vanilla applications• Don’t customize, extend if necessary

• Minimise local customs – exploit flexibility of applications

• Productize Integration – Minimal Bespoke• Keep Business running while you transform from the old to the new

43

Summary

• Telcos need a step change in all three dimensions of productivity (customer intimacy, operational excellence, rapid service innovation) to face the challenges of the new ultra-competitive landscape

• Business Transformation is the answer; but it requires leadership, it means doing things differently, changing the parameters of the comfort zone, standardizing, simplifying

• Software is a fundamental enabler in Business Transformation: comprehensive, standard-based, open, integrated suites provide key functionality enabling new efficient business processes to be introduced

• Oracle has the experience and product set to drive successful Business Transformation for ambitious Telcos

• Close collaboration with our Partners is critical to the success of such complex change programs

45

The preceding is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions.The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

46

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