CEO Study Telecom Implementations Chris Pearsoncustomer segments highly customizable to very individual needs freely configurable products pre-configured products Product offering

21.11.2008 1

CEO Study

Chris Pearson

Telecom Implementations

Global Business Consulting

Industry Leader

IBM Telecom Industry

© 2008 IBM CorporationStorm Warning | ZA Lozinski | Clouds v0.0 - September 2008 | IBM Confidential2

Agenda

CEO Study – Enterprise of the Future

IBM’s view of the Telecom market

IP Economy

The Change agenda

World is becoming Smarter



We spoke to 1,130 CEOs and conducted in-depth analyses to identify the characteristics of the Enterprise of the Future

How are organizations addressing . . .

New and changing customers – changes at the end of the value chain

Global integration – changes within the value chain

Business model innovation – their response to these changes

One-hour interviews using a structured questionnaire

78% Private and 22% Public Sector

Representative sample across 32 industries

33% Asia, 36% EMEA, 31% Americas

80% Established and 20% Emerging Economies

Respondents’ current behavior, investment patterns and future intent

Choices made by financial outperformers

Multivariate analysis to identify clusters of responses

Selective case studies of companies that excel in specific areas

Scope and Approach: 1,130 CEOs and Public Sector Leaders

Analysis: Quantitative and Qualitative



The Enterprise of the Future is . . .

3

Globally

integrated

1

Hungry

for

change

4

Disruptive

by

nature

5

Genuine,

not just

generous

2

Innovative

beyond

customer

imagination



Telecom CEOs anticipate more change ahead; are adjusting business models; investing in innovation and new capabilities

Expect significant change (increased by 30%) …but the ability to manage change has not kept pace – 38% feel unprepared

Invest significantly more than their peers in other industries in newly proposerous and informed customers but through traditonal products and services

Are reaching beyond the traditional global supply chain of infrastructure / devices and accessing global delivery capabilities, partners and knowledge assets to serve their local and core markets

Have a greater focus on business model transformation with revenuemodel innovation the most favored; CEOs of ‘outperforming’ organizations focus on enterprise/ industry model innovation

Do not view corporate social responsibility as a major issue, but are nevertheless planning to increase modest investments in CSR-related programs

Source: 47 Telco CEO interviews

Hungry

for

Change

Innovative

Beyond

Customer

Imagination

Globally

Integrated

Disruptive

by nature

Genuine,

not just

generous?:

Telecom CEOs :



Change Needed Past Change

Success

The Change Gap in Telecom has more than doubled

* Difference or ‘gap’ between expected level of change needed and past success in managing change

Change Needed Past Change

Success

2006 2008

Source: IBM Global CEO Study 2008; n (2006) = 48, n (2008) = 47

25%CHANGE

GAP*10%CHANGE

GAP*

4%

27%

67%

8%

27%

57%

17%

19%

62%

6%

87%

6%

Expectations of significant change has increased by 30% among Telecom CEOs since 2006; change gap has more than doubled

“ We have seen more change in the last ten years than in the previous 90.” -

Ad J. Scheepbouwer, CEO KPN Telecom



In anticipation of changes telecom executives increase focus on revenue growth and business model innovation 2007 - 2012

What do you believe will deliver the main sources of value for your company over the next 5

years and how different will they be from the previous five?

Source: The 2007 IBM Institute for Business Value (IBV) and Economist Intelligence EIU) Telecom Industry Executive Survey (n=252)

3%

41%

40%

29%

73%

34%

4%

21%

35%

38%

69%

65%

2002-2007 2007-2012

Revenue Growth

Capex Reductions

Synergies from M&A

and consolidation

Opex Reductions

Business Model

Transformation

Other

Sources of value in Global Telecommunications 2002 - 2012

The Past The Future



Specifically telecom providers are seeking new sources of revenue and moving toward collaborative operating models

82%

72%

53%

49%

46%

40%

33%

0% 20% 40% 60% 80%

Converged services

Collaborating extensively

with external partners

Enable 3rd-party access

to telecom capabilities

Bundled packages

Move into Media and

Entertainment

Move into IT services

Vary revenue model to

include advertising

Sources of value in Global Telecommunications 2002 - 2012

Source: The 2007 IBM Institute for Business Value (IBV) and Economist Intelligence EIU) Telecom Industry Executive Survey (n=252)

Which of the following will your company be focusing on to increase revenues

over the next five years? Select up to three.



IBM’s view of the market



Business Waves of Change.. Value migration or Creation?IT

In

vestm

en

t

Timeframe

1950 1980 2000 2008

Virtual

OTTTransnational

Multinational

Large national

International



Value is migrating from the network to services



Business Challenge – revenues do not track data volume increases



And with increased video consumption this trend is imposing additional strain and costs on telcos providers

0

10,000

20,000

30,000

40,000

2006 2007 2008 2009 2010 2011 2012

Peta

byte

/month

Mobility

Business Internet

Business IP WAN

Consumer Internet

Consumer IPTV/CATV

Global IP Traffic forecastSource: 2008: Cisco Visual Networking Index:

Forecast 2007- 2012

MOSTLY

OVER

THE TOP

TRAFFIC

Massive growth of Internet traffic from OTT applications as YouTube, MySpace and Facebook is driving up costs for telcos

Example:

December 2007 launch of BBC’s iPlayer

resulted for ISP :

72% more customers using over 250MB

100% more customers using over 1 GB

additional cost for PlusNet:

+ 200%

http://www.bbc.co.uk/iplayer/



Mobile

Broadband

Access

As services converge, expect incremental growth of 2% PA, equating to $500B+ in new opportunity in 2012

2012 WW Converged

Revenues : $ 538B

2007 – 2012 WW

Converged CAGR: 15%Source: Gartner, PwC Global Outlook, eMarketer, IBM analysis

2012 Global Revenues, 2007 – 2012 CAGR

66%$35BIPTV

220%$33BFixed/Mobile

Convergence

18%$160BHome/Office-

based

(Services,

Advertising)

27%$284BMobile (Internet

Services,

Advertising,

Access)

96%$21BMobile TV

’07 – ’12

CAGR

2012

RevenueService

Content

Advertising

, Marketing

Fixed

Voice



Mobile

Communications

….that are spawning a generation of over-the-top (OTT) service providers in a new competitive space

Content and

Advertising

Fixed Voice

CommunicationsBroadband

Access

Social

networ

k

Commerce

CommunicationsSearch

Portals

Digital

Conten

t

Advertising

Mobile

Communications

Content and

Advertising

Fixed Voice


Access

New

Competitive

space



Common themes are emerging from OTT providers

Portals/Search

ProvidersPlatforms

Rich ContentApplications/Services

Users

Analysis

Attributes Implications

Users Platform

Growth Network

Data Volume Platform

IP Network



Potential distinctive capabilities include

Them

es

Developer

Relations

Architecture,

HW & SW

Design

Scale,

Volume and

Throughput

Operations

Innovation

Federated

Identity / Security

Charging

payment

Presence

Managed

Infrastructur

e

Capabili

ties

Real time

business

analytics

Mobile

Communications

Content and

Advertising

Fixed Voice


Access

New

Competitive

space

Vault

Home Zone

Experience



Real-time solutions production line

Opportunity is to be heart of IP economy

£$€¥



Change is essential



IP Assembly …Real time reconfiguration

Voice Data IP

limited flexibility, cumbersome integration

complex stovepipe products

Resources Facing Services

Production elements

converged offerings, focused on specific customer segments

highly customizable to very individual needs

freely configurableproducts

pre-configured products

Product offering portfolio

Customer Facing services

Product 3Product 2Product 1

coordinated lifecycle &portfolio management (new process)

Portfolio and production structure IP AssemblyExisting structure



Simplification (business, process, systems) is key tobottom line reductions

G-PORTAL POD

SERVICE ACCESS / AUTHENTICATION

WEBSEAL

(COMPANION)

SERVICE ACCESS

CONTROL (SAC)

SPRINGBOAR

D

BABELFISH

O2 ONLINE PLATFORM SERVICES

COMMON

SERVICES

EXTERNAL CONNECTIONS

O2 ONLINE

BTC OWNED RETAIL

ex - BT SHOPS

O2 ONLINEBTC WEB

BROADVISION & FORTE SERVICES

INDEPENDENT RETAILERS/DISTRIBUTORSBTC STAFF O2 ONLINE ACCESS & ISP SERVICESBULK ORDER CHANNELSBT RETAIL - CORPORATE BTC DIRECT CHANNELS ETOPUP CHANNELS THE DIXONS GROUP

ex - DX & MPS

MARKETING

ORDER FULFILLMENT

BT CELLNET FORMERLY BT MOBILE

NETWORK & SWITCHING SUB-SYSTEMGPRS NETWORK INFRASTRUCTURE

3P BTWAREHOUSE

BUSINESS & OPERATIONAL

NETWORK PROVISIONING & MEDIATION

WHOLESALE

NACD & CALL CENTRE ACD SWITCHES

PREPAY PAGING

CUSTOMER RETENTION / SAVE

BT CELLNET FORMERLY CCL MANAGED BY VENTURA BT CELLNET MANAGED BY VALUE TELECOMMBT CELLNET FORMERLY MARTIN DAWES (PRESTON BROOK)

BT FINANCIAL SERVICES

3P DANNET

OTHER BT CELLNET INTERNET SITES

BT CELLNET INTRANET WEB SITES

3P E-TOPUPSOLUTIONPROVIDER

3P AMEX

3P RETAILE...

3P HARDWARE& SIM MANUFA...

3P INSURA...

3P DINERS

3P DEBTRECOVERY ...

3P SIMMANUFACTUR...

NON-TIEDSERVICE P...

DCH - DATACLEARING HOUSE

3P OTHERLICENCEDOPERAT...

3P GRASSRO...

3P HSBC

3P SHORTTERM HIRE...

3P SIMMANUFACTUR...

3PMAJORCUSTO...

3P INTELECOMUSA

3P THEDATABASE G...

3PPAGING...

3P POLICE/ CU...

3P VENTURA PRINT

FULFILLMENT

3P BARCLAYCARD

3P SCOREX

3P TMW

3P BTGROUP ...

3P BACS

BRITE PREPAY

3P INSTALL...

3P EQUIFAX

3P DINERS

3P AMEX

3P NATWEST

3P THE COUNTINGHOUSE (TCH)

KEY

3P TELETECH (First)

3P MAJORCUSTOMERS

3P RETAILERS

3P VODAFONE

3P HAYESP&F

3P EDS /WORLDCONNECT CLE...

3P EQUIFAX

3P PHILLIPS

3P EDI - KEWILLSYSTEMS

3P BACS

3P AMEX

3P DINERS

3P SECURICOR

3P INSURAN...

3P ROYAL ...

Time Recording IT Help Desk, Monitoring & Admin

3PHARDWAR...

3P LAISON

3P BRITISHAPPROVAL B...

BASE STATION SUB-SYSTEM

3P OTHERNETWORK ...

3P CARPHONEWAREHOUSE

Automated Revenue

Feeds from Jupiter,

HOPS & JD

Edwards. Other

revenue feeds

manual via JV

Upload.

VPN MESSAGE MGT

Refunds & Dealer

Incentives:

Jupiter

HOPS

Sun Accounts

BTC Regulatory

Feeds (to Oftel):

Carrier Services

CAMS

ROBS & ABS

Adaytum

RADS

(nb manual extracts)

3P OFTEL

3P FOREIGNNETWORK ...

CIBERNET UK

Manual Revenue

Feeds via JVUpload

(eg Ventura

transactions).

VIAG

TELFORT

DIGIFONE

MANX

3P AIRMILES

3P AMWAY

3P HIREFONE

3P BT

PSTN & BTC Mobile Network

On Meridian ACD: On Avaya Definity:

3P RIM

3P DUN &BRADSTR...

MTCR SOURCE FEEDS:

NB 2G Only

DISE

Liberty

ABS

Jupiter

IN-PSMS

TEDS

Alert

Brite

IMEI

SCARS

Suppressions

TCH

Mail Preference

Service

Yellow Pages

Mortascreen

3P IGNITE

Retention Centre. Live @ DV1 October 2001, @ PB midNovember 2001. Teletechnot used for First beyond MidNov. Ventura likely to retain...

3P BACS

3P BACS

3P AMEX

3P EQUIFAX

3PFINANCIAL ...

3P E-TOPUPSOLUTION ...

3P DEBTRECOVERY A...

3P BACS

3P BAN...

3P EQUIF...

3P SCOREX

3P BRITISHAPPROVAL B...

3P THE LINK

3P BACS

3P HAYES ...

3P HAYES ...3P THECOUNTING...

3P THE COUNTINGHOUSE (TCH)

3P HARDWARE & SIMMANUFACTURERS

3P E-TOPUPSOLUTION ...

3P GRASSROOTS

3P GRASSR...

O2 ONLINE

Bradford

Alness

Thurso

ABC

Hepworth House (Ventura)

Wath (Ventura)

Preston Brook

Stafford B

Bury

Preston Brook &

Wath (Ventura) ACDs

QUINTUS

3P THECOUNTINGHOUSE (TCH)

3P GRASSROOTS

O2 ONLINE

3P EQUIFAX

Decision

Navigator Rapid

3P SAMS

3P ANOVO

3P SMSINFORMATIONPROVIDERS(ESMEs)

3P SMS CHATPLATFORMPROVIDER

3P TRAFFICMASTER

NDC

3P BT BUYNET

3P BTBUYNET

PB not on NACD

Stafford A

3P HAYES P&F

3P ACTIVE SUITE OFFICEHOSTING

3P LOCATION BASEDINFO PROVIDERS

Interbusiness billing

feeds from:

CRM

Lucent

Jupiter

3P BACS

ELEMENT MANAGERS / PERFORMANCE MGT

CONFIGURATION MGT

NB NetXpert not show. Full

replacement by CISCO. Expected

early Jan 2001.

3P BT

3P LOGICA

3P CONTENTPROVIDERS

3P OTHERLICENCEDOPERATORS

3P INKFISH(TELESALES)

3P DIXONS

3P CURRYS

3P PCWORLD

3PCONVERGENTTELECOM

3P INDEPENDENT RETAILERS/DISTRIBUT...

3PRETAILERS

DIRECT SALES -LEEDS

DIRECT SALES -GLASGOW 3P

TELETECH -DIRECTSALES(VENTURA)

CORPORATECUSTOMER

BT CELLNET SME & CORP SALES

COMET GRP

JOHN LEWIS

PARTNERSHIP

DIXONS STORE GROUP

ASDA

TESCO

WOOLWORTHS

WH SMTIH

RS COMPONENTS

GENIE ACTIVATIONS

TEAM

DISE ACTIVATIONS

TEAM

JUPITER

ACTIVATIONS

TEAM

LIBERTY

ACTIVATIONS

TEAM

50 BT SITES

3P WORLDVIEW

3P RDW

SERVICE MGT

Interfaces to:

Continuum

EXCHANGE

FAULT MGT

WAP POD

GAMES POD

3P 24/7(ADVERTISING)

P3 POD

BTC SMS-C

www.O2.co.uk

www.shop.o2.co.uk/shop

www.btc-lumina.net

www.connected.btcellnet.net

3P BT

BT FEATURENET (VPN)

FIXED ASSETS

PREPAY SMS-C

IVB CELEBRITYGREETINGS

SMS-C BARRING

PROD O2

MEDIATION

SESSION DB

ALNESS CARE

APPS

COMVERSETRILOG(CALLBACKPLUS)

ICC MIDDLEWARE

VOUCHER

GENERATION

SYSTEM

VLR - VISITORSLOCATIONREGISTER

THIRD-PARTY SYSTEM,INTERFACED TO..

ABS BILLING

ENQUIRIES

PSTN / ISDN

KINGSTON RIALTO

POWERDIALLER

THIRD-PARTY SYSTEMUSED BY BTC STAFF

TEAMNET

INTERCONNECT / CAMS

AUC - AUTHENTICATION CENTRE

ADMINISTRATION & BILLING SYSTEM (ABS)

DISE ONLINE

SERVICES

ABS SERVICE PROVIDER INTERFACE (SPI)

SDM - SITE DATA MEDIATION

TRANSFERRED

ACCOUNT

PROCEDURE (TAP-C)

JUPITER

customerfocussedbilling

Insight

INTEGRATED CALL

CENTRE (ICC)

EDGE F-END

MAJOR

RETAILER

INTERFACE

(MRI)

BABYLON

DEMON

DAVOX POWERDIA

LLER

CAPODS (BT)

SUN ACCOUNTS

COMMUNICATIONS

RESOURCE

MANAGER -

PAGING

HARDWARE ORDER PROCESSING (HOPs)

MIS - JUPITER

callcontrol

RETAIL ACCOUNTS

DATABASE - SUN ...

M-POWER (INC CLASS 9

DIVERT)

REVENUE OPERATIONS

BILLING SYSTEM

(ROBS)

VOICE MESSAGING

MANAGEMENT

SYSTEM (VMMS)

INTERCONNECT TRANSITSWITCH(AXE10)

SMSC - SHORTMESSAGESERVICECENTRE

MSC - MOBILESWITCHINGCENTRE

SOG - SERVICE

ORDER GATEWAY

DISPATCHER

WMS

NETWORK ACD

CONTINUUOUS

CHURN

3P MNP AGE...

SCARS - SALES

CONTRBN ANAL

REPTG SYS

CUSTOMER PROFITABILITY

MODEL

PAGINGNETWORK

CUSTOMER

IDENTIFICATIO ...

MORET

ALERT

PERIPHONICS IVR

PSMS - IN PREPAY SERVICE

MGMT SYSTEM RETSO

manual

adhoc via CD

TEDS - TRACKING EASYLIFE

DATABASE

IN: (SCP ) SERVICECONTROL POINT

ANALYSER

LIBERTYBEAMSOASIS

CACS

write-off(Pennine)

MARKET

NAVIGATOR

FIRST

GENESYS

INFORMATION

SYSTEMS

SECURITY (ISS)

DISE

Rim Blackberry End Mar 02

insight

COMMON

VOUCHER

DATABASE

FAST SAVE

ORCA

(ORDER

CAPTURE)

SGSN- SERVINGGPRS SUPPORTNODE

GGSN - GATEWAYGPRS SUPPORTNODE

JUPITER

MEDIATION

DEVICE

BORDER

WEB CONN

ECT

SERVER

MANILA

LINS

CAPTURE

RESPOND

GENEVA

PRISM

BUSINESS

FIRST

COPY

BILLS

COPY

CALL

S

ICE

COMPTEL - GPRS MEDIATION

PLATFORM

NETWORKTECHNOLOGYCOMPONENTS

SPYVIEW

VIPER

QUICK

ADDRESS P ...

Vital O2

BACSESS

(BARRON

MCCANN)

www.btcellnet.net

CBS (VALUE

TELECOM)

EIR - EQUIPMENTIDENTITYREGISTER

GENEVA (Retail) GENEVA - WHOLESALE

RATING

AFD POST

CODE

PLUS - PAF

NIKU PORTFOLIO

MANAGER

(WORMS)

PEOPLESOFT

BT BUYNET CLIENT

IMEI

BANCTEC

MOSAIX

POWERDIALLER (V ...

FUSION RED

TOOLSUITE

(DIRECTA)

HELP DESK

ONLINE (HOL)

UNICENTER

FILENET -

DOCUMENT

MANAGEMENT

BACSWAY TURBO

(TELESMART)

PREFIX

FILENET -

CORRESPONDENCE

MANAGEMENT

WEB UPGRADE

ROYAL BLUE

HELPDESK

(PAGING FAULT L ...

ZT BLACKBERRY

KNOWLEDGE BASE

RTF TO HTML

CONVERTER

SHAREWARE

webmap.btcellnet.ne

t

BUNDLED

MINUTES ENGINE

(BME)

GPRS - MIS WHOLESALE

TIME RECORDING

SYSTEM (TRS)

RETAIL LOGIC

RETAIL

DECISION

CLARIFY - LEGEND

- ONE TOUCH

DATA REQUEST BROKERS

Dig Mark End Mar 02

CAMIS (MTCR) DATAWAREHOUSE

BRITE IVR

EQUIFAX

APPROVE

AUDDIS

ADDACS

GMSC -GATEWAYMOBILESWITCHINGCENTRE

DOC1 -

VENTURA INST ...

ORACLE

FINANCIALS - DX

INSTANCE

ANKER

POWERTILL,

STORE &

CENTRE

RETAIL SHOP

SYSTEM

AUTOMATED

STORE

ORDERING

BRITE ACD

BRITE CSS BRITE DAS

IN PREPAY IVR

HLR - HOMELOCATIONREGISTER

www.o2.co.uk/intuitio

n

TRAFFIC ALERTNODE

VSD - VOICESERVICESDIRECTOR(CALLBACK)

DATA CLEANS

ING

CORPORATE

DATA POINT

DATA MARTS

IN PREPAY

APPLICATIONS

CORPORATE JUPITER

CONSUMER JUPITER

BASE STATIONCONTROLLER

CELL

CELL

CELL

BASETRANSCEIVERSTATION

GPRS CHARGINGGATEWAY

GPRSBACKBONE IPNETWORK

DATA NETWORK(www ISP based)

DATA NETWORK(X.25) (CorporateNetwork)

OTHER GPRSOPERATORS

3P BT

ABS NETWORK

INTERFACE

MANAGER (NIM)

INSTALLER FAX SER ...

GATEKEEPER

MICROSTRATEGY

FIST

TRANSACTION

PROCESSOR (TP)

OMEGA DATA CENTRE (ODC)

BT WIRELESS

GENERAL LEDGER

REVENUE CODING

ORACLE FINANCIALS - BTC FINANCIALS ORACLE FINANCIALS BTC

RADIO SUPPLY CHAIN

BT CID

(E-REPORTS)

BTC GENERAL

LEDGER

ACCOUNTS

RECEIVABLE

(E-RECEIVABLE)

ONLINE/WIRELESS

EXPENSES

JV UPLOAD

eREQUISITIONS

BTC ACCOUNTS

PAYABLE

ePURCHASING

SUPPLY CHAIN

ACCOUNTS

PAYABLE

INVENTORY

PURCHASING

SELF SERVICE

PORTAL

COBRA (CASHIERS

ONLINE BANK REC

& ACCT )

COMMON

REFERENCE

DATABASE (CoRD)

PROJECT

FINANCIAL

CONTROL (PFC)

CHEQUEPOINT E-SPRIT

SOLO METIFY

MODEL

manual

FACSYS (FSO)

JD EDWARDS



RETAILER POS

EPAY (etopup)

ACCURATE

SMS PC

SME SEGM

ENTATION

MOBILE NUMBER

PORTABILITY

GENIE WAP

GATEWAY

CONNECTED (B2B

PORTAL)

NORTEL DMS

100

CUSTOMER DB

BUSINESS

OBJECTS

CISCO INFORMATION CENTRE (CIC)

SP DIRECTORIES

BLACKBERRY

MIS DB

BLACKBERRY

DELPHI CFE

lookup

TRAFFIC LINE(1200PLATFORM)

SHORT MESSAGE

ARCHIVE

PLATFORM (SMAP)

lookup

www.btcellnet-dimen

sions.net

UNITY DB UNITY

Jan 02

QUINTUS

FINDMEPLATFORM

ECOMMERCE

OPERATIONAL DB

3P MNP AGE...

TAPI

(MERIDIAN ...

SMS PC (VT)

3P MNP AGE...

BROADVISION

BACK OFFICE

BILLING (BOB)

EASSIST

APACHE PRESENTATION

SERVICES

MOBILE NUMBERPORTABILITY

BMC

PATROL

DIALOGIC IVR

FACSYS MNP

SMS CHATPLATFORM

CLARIFY DB

BT INTRANET

SITES

HEXAGON

NETR, NETC,

NJR (OVERT ...

BLUEPRINT

ENVIRONMENT

LAW REGISTER

QUICK

ADDRESS PAF

CONTINUUM

CAMEL INPLATFORM

MOBILEEXTENSIONPLATFORM(ACN/MX)

REDKNEE MOBILELOCATION CENTRE

CARE OPTIONS IVR

SUBSCRIBER

CARE OPTIONS

GPRS SMS ALERT

DRB

CONTRACTS LOG

SIM OTAPLATFORM

DIGITAL

MARKETING -

BROADVISION

TAP-3

CARA2SERVICEPLATFORM

BT CELLNETCONFERENCING

BATS

WINPANES

CAMIS FRONT END ANALYSIS TOOLS

EPIPHANY

(CAMPAIGN MGT)

BRIO (MARKETING

ANALYTICS)

GLOBAL ROAMING

PLATFORM

TITAN MINIFEEDS

ORACLE SALES

ANALYSER

WEB CONNECT

CLIENT

PIERETAILER

SYSTEM

MRI GATEWAY /

CLIENT

CORPORATE

CUSTOMER

INTRANET

EPAY (etopup)

INTERNAL ORG

(FOR CONTEXT)

E-CASHIERS

E-ORG

SMS PRICING

QMAX

E-OVERTIME

REDKNEE SMS-MTPLATFORM

eQMS

ARIS

SHAREPOINT

CORPORATE

MODELLER

(CASEWISE)

LOTUS NOTES

eNIKU

TIVOLI

VANTIVE

MARSS

KOFAX

APN DATABASE

lookup

ODYSSEY

STRONGHOLD /

CIC SERVICE

VIEW?

DIMENSION

INCONCERT

WORKFLOW

HP OPENVIEW

MAG T LINE

MAGNET IPD

MAGNET ACMMAGNET CALL

SAVER

MAGNET DDF

MAGNET RCP

MAPVIEWER

MIKOM-OMCNMS 5000NOKIA /

MOTOROLA OMC-R

SECURITY SERVER

ETNA NEM

JYRA

MAGMAP

MAGNET LINES

MAGNET

CONNECT

MAGNET PLUS

MAGNET-1

TRACE

INET

OSS-ERICSSON

/ TMOS

CELL

BROADCAST

CENTRE NEM

MICROSOFT

EXCHANGE

HP SMARTVIEW

MAGNET OMC

NETWORK

MANAGEMENT

SYSTEM 100

MOTOROLA OMC-GMETRICA GSM TELLABS ECHO

CANCELLORS OMC

UNIVIEW

OMNIX

IPP

CELLOPTS

MAGNMC

STATMAP

ORBITAL

MAGPERFORMANC

E

GAZELLE

G-FAT (GPRS

FAULT ANALYSIS

TOOL)

E-PAYSLIPS

INFORMATION

DIRECTORY

SYNAXIS 2100

SMS-B

WAP FOOTBALL

M-VENUE

PROXY

SERVICES

ACCESS

SYSTEM (ISP,

RAS)

APACHE PRESENTATION SERVICES

SEARCH

ENGINE

(LOOKSMART)

WHOLESALE

MESSAGE

PLATFORM

P3 PORTAL (OPENWAVE

MyPhone P3)

VIGNETTE CMS

GENIE A.H.E.

AMDOCS HORIZON

(REGISTRATION)

SMS GATEWAY EMAIL SERVER BACK ACCESS

MANAGEMENT BACKUP

RADIUS (OSC

RADIATRO)

DNS (ISC BIND)

HTTP/FTP

VISUAL SOURCE

SAFE

USSD ROAMING(TELSIS OCEANFASTSSP)

192 PLATFORM(TELSIS OCEANFASTSSP)

ZETAFAX

SPIM

PAYROLL

P11D ONLINE

SUPPLIERS DB

INTERNATIONAL

GOODS MVT

VOICE MESSAGINGADMIN & BILLING(VMABS)

FASTCAPODS

IM INSTANT

MESSAGING

CONCORD NETWORK HEAL ...

BT WORKSMANAGER

FORTE FUSION MIDDLEWARE SERVICES

OT/DIGITAL

MARKETING

MIDDLEWARE

SERVICES

ETOPUP (CPI)

SERVICES

DISE

3P DEBTRECOVERYAGENCY

LIBERTYJUPITER

HOPS

GPRS GENEVA

ABS

GENEVA (GENIE)

GENIE GENEVA

3P BIBET

3P BELMOBILE

CONTACT MGT

SYSTEM (CMS)

ORACLE SALES

ONLINE

BTC INTRANET

PAGES

3P THEDATABASEGROUP

PROSPECTS/SU

SPECTS DB

GPRS

KNOWLEDGE ...

O2 Online Portal

www.O2.co.uk

www.shop.o2.co.uk

UNIFIED

MESSAGING

(ONEBOX)

End User with

WAP Phone

MQ-SERIES

BACK OFFICE COMMANDER SUITE

ODS

ORDERS

IN PRO ...

3P HAYESP&F

3P ANOVO

eDOCS

KANA +

EXTENSIONS

TIVOLI

(COMPANION)

GL/AR

3P PARCEL FORCE

3P ROYAL MAIL

GROUPWISE

EMAIL SERVER

(DX)

SIM ADMIN

ABS NIM FOR CSF

RETAINED

DECOMMISSIONED

vitalo2.pri

Contextual Note



Quote to Cash Transformation can generate cost reduction and revenue uplift benefits* totaling $0.7-1.2B PA for $13B SP

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

Opportunity to reduce 25 to 45% of

labor related Order-to-Cash OpEx

Opportunity to increase near

term revenues by 4 to 5%

Order Fulfillment

Improved Order Management

Increased Online Orders

Reduction in Billing Calls

Outsourcing Order Calls

Cost Benefits(% of Order-to-Cash Labor OpEx)

0.0% 0.5% 1.0% 1.5% 2.0%

Revenue Benefits(% of Revenues)

Reduction in Billing Adjustments

Increased Sales Productivity & Retention

Reduction in Unbilled Revenues

Revenue Acceleration

6.0%3.3%

7.8%4.3%

10.8%6.0%

15.8%8.8%

3.2% 5.8% 0.2% 0.16%

1.0%0.8%

1.2% 1.5%

1.5% 1.9%

*Preliminary and illustrative – to be validated by formal assessment



*Average Revenue Per User

Today’s Market Challenges… Require Critical Actions and Solutions

Margin erosion;

High value to lower value substitution

Home Zone/Nesting opportunities

Increased pressure on

productivity; labour costs,

churn unprofitable subscribers;

Energy cost reduction

Quickly rollout new

service introductions

Complexity of new services

Analytics; proactive churn

Ongoing need for revenue

and margin growth

Manage mergers

& acquisitions

(slowdown/acceleration)

Financial environment

Opex (inyear savings)

Cash is King



The world is becoming flatter, more connected and “Smarter”

Service providers occupy a key role in

the new economic model:

– Transport/Smart Networks

– IP Factory/Smart Platforms

– Experience/Smart users

21.11.2008 25

CEO Study

Chris Pearson

Telecom Implementations

Global Business Consulting

Industry Leader

Documents

CEO Study Telecom Implementations Chris Pearsoncustomer segments highly customizable to very individual needs freely configurable products pre-configured products Product offering