OSS BSS World Presentation – Telco trends and their impact on IT Jean-Marc Steffann Sep 2011.
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Transcript of OSS BSS World Presentation – Telco trends and their impact on IT Jean-Marc Steffann Sep 2011.
2Copyright © 2011 Capgemini. All rights reserved.
Rapid growth of mobile data consumption has seen mobile broadband reaching high penetration levels in developed countries
Source: Capgemini TME Strategy Lab analysis; ITU Statistics 2010 , OECD Broadband statisticsNote: The developed/developing country classifications are based on the UN M49, see: http://www.itu.int/ITU-D/ict/definitions/regions/index.html
Internet penetration in developed countries has grown rapidly to more than double the global average (29%)
2002 2003 2004 2005 2006 2007 2008 2009 2010
35.0%38.8% 41.7% 44.1%
47.4%53.7%
57.8%61.8%
65.6%HH Internet Penetration of Developed Countries, 2002-2010
Fixed & Mobile Broadband subscribers (Mn), % Household (HH) broadband access, select developed countries, 2010
Mobile broadband in developed countries has seen faster uptake than fixed in the last five years
20002001
20022003
20042005
20062007
20082009
20100
10
20
30
40
50
60
24.6
51.1
Broadband per 100 Inhabitants, Developed Countries, 2000-2010
Fixed MobileU.K. Germany France Spain Italy U.S. Japan Korea
0
50
100
150
200
250
Fixed Mobile
69.5 64.6 57.551.3 39.0
63.5
60.0
95.9
% HH Broadband AccessNote: Mobile Broadband includes all types of wireless high-speed internet access on mobile phones and other devices through portable modems
Crossover point
Introduction Challenges Role of BSS/OSS
3Copyright © 2011 Capgemini. All rights reserved.
Telcos are facing significant challenges to their business model due to the the inability of forecasted revenue to keep pace with consumption and cost
2010 2011 2012 2013 2014 2015
255 297
338 380
419 456
2010 2011 2012 2013 2014 2015
231 5331,136
2,146
3,717
6,107
CAGR92.5%
CAGR12.3%
Source: Capgemini TME Strategy Lab analysis; WCIS Forecasts, 2011; Cisco, “Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2010–2015”, 2011
Worldwide Mobile Data Revenue, $Bn, 2010 - 15
Worldwide Mobile Data Consumption Volume, PB/Month, 2010- 15
Index of Mobile Data Revenue and Data Volume (Base year 2010)
2010 2011 2012 2013 2014 2015
Data Revenue Data Volume
Data Cost
26X
2X
4-6X
Telco Squeeze
Introduction Challenges Role of BSS/OSS
4Copyright © 2011 Capgemini. All rights reserved.
Cut Costs
Drive Revenues
Key Operator Goals in Today’s world
OSS/BSS holds the key to address key operator goals in the current market
Develop Flexible Business Models
Align IT spend with strategic
goals
Align QoS with Customer Class
of Service
Create new revenue
opportunities
• New service areas such as M to M (telematics, ehealth,... )
• Capitalize on the rising demand for content
• Increasing the gamut of services offered
• Improve & sell QoS
• Personalized service offerings
• Usage of cloud to ‘rent rather than buy
• Network optimisation through usage observation.
• Better align IT with the long-term strategic goals
• IT as a business enabler and not a cost center
• Outsource routine functions to focus on innovation
• Rapidly evolve and commercialize services
• Partner and offer third party services
• Flexible and standards based IT systems
• Real-time Services
OSS/BSS Systems
Introduction Challenges Role of BSS/OSS
5Copyright © 2011 Capgemini. All rights reserved.
Advent and growth of of smart portable devices is driving significant uptake of mobile content consumption
Text Messaging
Photos
Connected Media
News and Information
Internet Browsing
Apps
Social N/W and Blog
Weather
0% 20% 40% 60% 80% 100%
82.7%
57.5%
41.1%
32.2%
28.8%
28.0%
22.2%
18.0%
16.4%
Source: eMarketer: “Canadian Mobile Subscriptions to Climb 20% by 2014”, June 2010; comScore, “The comScore 2010 Mobile Year in Review”, February 2011
2009 2010 2011 2012 2013 2014
32% 33%
37%
44%
51%54%
25%
28%32%
37%
44%
49%
North America Western Europe
The rapid surge in smartphone penetration over the past few years is excepted to continue
Growth in Smartphone Penetration, Percentage of Wireless Subscribers, North-America and Western Europe, 2009-2014
Top Mobile Activities in EU5 by % Share of Total Mobile Users, December 2010
Introduction Challenges Role of BSS/OSS
6Copyright © 2011 Capgemini. All rights reserved.
The demand for new services and adoption of devices with higher data usage levels will further accelerate this trend
File sharing and Video are expected to be the largest segments of consumer internet traffic, fueled by content sharing amongst digital consumers
2010 2011 2012 2013 20140
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
Global Consumer Internet Traffic by segment, PB per month, 2009-2014
File Sharing Internet Video Web/Data
Internet Video to TV Video Calling Online Gaming
VoIP
CAGR36%
Mobile Internet Devices with higher processing power and access speeds have higher data consumption
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Average Data Consumption per month by Device Type, Mb, 2010
1-25 MB ~50 MB ~150 MB
300-500 MB
1-1.4 GB
7 GB
Basic or Multimedia
Phone
Blackberry iPhone 3G Wireless
Card
4G Wireless
Card
Other Smart Phone
Introduction Challenges Role of BSS/OSS
Source: KPCB, 2011, FCC,” Annual Report and Analysis of Competitive Market Conditions With Respect to Mobile Wireless, Including Commercial Mobile Services”, May 2010, Cisco, “Cisco Visual Networking Index: Usage Study”, October 2010
7Copyright © 2011 Capgemini. All rights reserved.
The market is also witnessing emergence of multiple pricing models that bring forth with them new IT challenges
Pay-per-UseAllowing consumers to access content per usage instance
CRM/Billing systems not capable of handling dynamic scenarios with real-time charging and payment
WSJ Mobile App
Context Based Pricing
Pricing involving combination of service type, partner subsidy, subscriber segment, location
Billing systems are not capable of real-time charging based on multiple variables defining context
Location-based Services
QoS / bandwidth
Based Pricing
Charging based on QoS / bandwidth demands and network resource utilization
Billing systems do not have capability to dynamically charge based on real-time session / network data
Netflix
In-app purchasing
Allowing consumer to purchase content within application
Partner billing is not capable of handling dynamic scenarios where charging / billing depends on customer’s purchase decision
Angry Birds
Advertising supported
Cross subsidies / freebies for accepting ads
Billing systems may not be capable of handling dynamic charging scenarios based on customer’s decision of accepting advertisement
Groupon Mobile
Personalized Bundles
Offering personalized bundles based on a customer’s behavior / preferences
Billing silos, lack of single view of customer and lack of real-time pricing makes personalized offers difficult
Behavior-based Personalization
Pricing Models Description Example Indicative IT Challenge
Introduction Challenges Role of BSS/OSS
8Copyright © 2011 Capgemini. All rights reserved.
Operators will need to modify the operational models and the nature of their involvement to address emerging opportunities
Operator’s Involvement
Key Consumer Benefits
Product Description
Electronic book reader, with bundled global 3G access
Product has access to Kindle bookstore for purchasing e-books
Car navigation device with bundled 3G access
Pervasive global access to 3G for purchasing content without worrying about data harges
Bundled 3G access enabling real-time traffic updates
Access bundled for one year
AT&T provides wholesale access to Amazon for the device
AT&T’s involvement is limited to network access without billing
Vodafone offers one year of free bundled access
Consumers to decide on whether to continue the plan beyond an year
Operators will have to be prepared to work with models where they potentially need to integrate billing with partners for revenue share
Introduction Challenges Role of BSS/OSS
9Copyright © 2011 Capgemini. All rights reserved.
Managing services in a multi-partner, multi-device environment poses significant challenges to the operator
FULFILLMENT
ASSURANCE
BILLINGCH
AL
LE
NG
ES
OperatorsContent
Aggregators
Portal
Request Video
Network12
Devices
Allocate Bandwidth
Stream Video on
the network
3 Customer Billing
Send event tocharge the customer
4
5
Invoice
Payments6Payments Partner
settlement Revenue Sharing
7
Cu
sto
mer
Jo
urn
ey:
Req
ues
tin
g a
mo
vie
Managing devices to ensure Quality-Of-Experience
Managing Quality-of-service in a muti-partner domain
Ensuring effective bandwidth to provide ubiquitous, quality service
Providing a seamless experience with real-time activation / service delivery
Effective handling of order fallout / jeopardy situations and keeping the customer informed
Handling dynamic pricing revenue sharing scenarios e.g. user decision of in-app purchase
Dispute settlement / revenue sharing with multiple partners
Introduction Challenges Role of BSS/OSS
10Copyright © 2011 Capgemini. All rights reserved.
Upgrading the CRM layer will allow operators to increase their service breadth and depth to implement an integrated multi-channel customer service strategy
Cap
abili
ty M
atu
rity
Channel Breadth
Social media presence
Social media presence
Dedicated social media care teamsDedicated social media care teams
Social media integration
Social media integration
Automated social media monitoring and
analytics
Automated social media monitoring and
analytics
Social Media Customer Service
Simple self-service assistant
Simple self-service assistant
Simple chat-botsSimple chat-bots
Advanced chat-botsAdvanced chat-bots
Customer Service Bots
Uniform experience across channels
Uniform experience across channels
Availability of cross-channel interaction
history
Availability of cross-channel interaction
history
Optimized call handling strategy with seamless switch-over
Optimized call handling strategy with seamless switch-over
Multichannel Integrated Customer Service
Grand-slam
Mature Presence
Growing Presence
UntappedSource: Capgemini Analysis; Company Websites
Introduction Challenges Role of BSS/OSS
11Copyright © 2011 Capgemini. All rights reserved.
Next Generation Customer Service Solutions and Implementation
Automation and intelligent targeting using social media will increasing be a critical component of next generation customer service
Pro-active identification of customer needs and
dissemination of information
Multiple customer service channels with uniform
experience
Behaviour based product discovery
Leveraging knowledge of other customers for query/
problem resolution
Next Gen Solution Elaboration Examples
Scan social media activity to identify new prospects or cross-sell / up-sell opportunities
Place promotional content about new products on social media and invite users to view it
Drive cross-selling and up-selling by analyzing customer’s past purchasing patterns
Create open discussion boards to discuss customer issues and enable peer resolution
Recommend optimum call strategy based on customer’s channel preferences and call types, etc
Escalate from a self-service session to bot and agent assisted session without losing context
Brand-building by managing the experience of
the customers
Promote knowledgeable and influential customers as brand evangelists on social media
Leverage advanced social media search capabilities to pro-actively identify customer issues
Invite users to participate in promotional events
Vodafone, Orange and T-Mobile Netherlands have started deploying influencer marketing solutions
Comcast monitors twitter for customer conversations and pro-actively contacts the customers to address their concerns
Amazon’s recommendations are based on predictive analysis based on customer’s past history and comparisons with customers with similar purchase patterns
AT&T has customer care on Twitter where customers can post problems / share knowledge or seek support from AT&T support team
BT’s ‘Ask Emma’ is a virtual agent service that answers customer’s queries about products and provides basic support
Source: Capgemini Analysis; Company Websites; Pursway.com, ‘Vodafone, Orange , other mobile leaders and consumer companies step up influencer marketing approach’, Feb 2010; Company Facebook Pages; Businessweek.com, ‘Comcast’s twitter man’, Jan 2009
Introduction Challenges Role of BSS/OSS
12Copyright © 2011 Capgemini. All rights reserved.
Focus on increased personalization, new revenue & pricing models in a multi-device multi-partner environment will drive operator’s OSS/BSS evolution
New
Bu
sin
ess
Req
uir
emen
ts
Functional Domains Impacted
New Revenue and Pricing Models
Multi-party Services
Personalization and Customer
Control of Service
Enhanced Policy Management
BSS OSS / Mediation
Dynamic Context Based Charging
Integrated Policy Management
Dynamic Wholesale Charging
Real-time Interfaces
Subscriber Data Management
Converged Billing Platform
Policy Management
OTA Updates
New Functionality Required
Existing Functionality that needs Enhancement
Real-time on-device reports
Source: Capgemini TME TS Lab analysis,
Real-time Bandwidth, QoS,
Resource Management
Introduction Challenges Role of BSS/OSS
Real-Time for pre-paid
Partner Management
13Copyright © 2011 Capgemini. All rights reserved.
The existing OSS/BSS landscapes are insufficient and must be adapted to meet the market demands
Prepare systems for increased use of third parties
Improved self service solutions
Mediation is key in reducing billing data Re-think traffic
data solutions
De-couple channels from order processes
Innovate your social media strategy
Increased order automation
Ensure billing systems can support new models
Usage data warehouses
Build social CRM solutions
Utilize BI solutions for network and service quality
Introduction Challenges Role of BSS/OSS
15Copyright © 2011 Capgemini. All rights reserved.
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global TME industry
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focus on key technology challenges• Billing, CRM, OSS/NGS & Digital Content
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