FS 2021 Global Autonomous Network Solutions Customer Value

BEST PRACTICES RESEARCH

© Frost & Sullivan 2021 1 “We Accelerate Growth”

2021 Global Autonomous Network Solutions

Customer Value Enhancement Award

Huawei iMaster MBB Automation Engine

Best Practices Research



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

Industry Challenge ..................................................................... 3

Customer Impact and Business Impact ......................................... 3

Conclusion ................................................................................ 7

Significance of Customer Value Innovation ................................... 9

Understanding Customer Value Enhancement ............................ 10

Key Benchmarking Criteria ........................................................ 10

Customer Impact ..................................................................... 10

Business Impact ...................................................................... 10

Best Practices Recognition: 10 Steps to Researching, Identifying,

and Recognizing Best Practices .................................................. 12

The Intersection between 360-Degree Research and Best

Practices Awards ........................................................................ 13

Research Methodology .............................................................. 13

About Frost & Sullivan ................................................................ 13



Background and Company Performance

Industry Challenge

As everything becomes connected and intelligence is converged, networks become increasingly complex, posing great challenges: multiple bands (low-band, mid-band and high-band), multiple standards (2G/3G/4G and 5G NR), multiple network architectures (public cloud, private cloud, edge computing, etc.), multiple service requirements (B2B, B2B2X, and vertical-specific demands). In this case, however, network management continues to be highly labor-intensive without the right network automation tools, resulting in high OPEX. According to Frost & Sullivan, network changes are performed manually yet over 80 percent. It takes weeks to adjust the network configuration in order to support new applications, and requires a large O&M team in order to analyze and handle network problems, leading to operational costs 2 or 3 times higher than network cost. Besides, Mobile networks (MBB) are distributed with massive sites, coupled with service freezing, intermittent disconnection, and poor quality frequently occur caused by network congestion and manual misconfigured network devices. It struggles to implement network processing requirements in real-time and SLA assurance, resulting in poor business monetization in the telecom industry. Facing these challenges, the telecom industry needs to promote the evolution of network architecture and management, and continuously drive the industry to become more intelligent, agile and effectively support modern business demands. In fact, the idea that technologies could be self-provisioning, self-diagnosing, and self-healing, has been around for some time, and some operators have already introduced automation and intelligence in the part of the network processes, such as O&M, planning and RAN optimization. With the introduction of AI, an increasing number of operators will invest in these technologies to build an autonomous network. An autonomous network is more resilient and can automatically match differentiated SLA requirements, bringing a better experience for end-users and enterprise users and providing a brand-new track to operators. It is a powerful, transformational paradigm to ensure that the management of the network is aligned with the goals of the business, expanding new business models and digital opportunities for the industry. Any type of network can apply network automation. Hardware and software-based autonomous network solutions enable data centers, service providers, and enterprises to implement network automation to improve efficiency, reduce human error, and lower operating expenses.

Customer Impact and Business Impact Price/Performance Value

Huawei released its Autonomous Driving Network (ADN) strategy in 2018, which is a 10-year strategy following Huawei's All Cloud strategy. It aims to research the impact of



intelligent technologies on future network architectures, O&M modes, and business models by integrating multiple intelligent technologies, such as SDN, NFV, cloud computing, big data, and the knowledge graph. Based on such a strategy, Huawei’s ADN solution was developed by adhering to the "Take Complexity, Create Simplicity" idea. The ADN covers two series of products: simplified networks and intelligent O&M. Huawei’s iMaster MBB Automation Engine (MAE), as the MBB automation engine in the overall ADN strategy, is a platform aimed at automating the fast rollout of mobile networks and reducing carriers' OPEX with 5G and mobile networks in general. MAE’s hierarchical and domain-based autonomy and vertical cross-domain collaboration framework supports carriers’ digital transformation, and their evolution to closed-loop automation and mobile autonomous networks. MAE’s openness, agility programmability and easy integration empower carriers to move beyond siloed legacy EMSs. Huawei iMaster MAE proposes the 1+3+N solution strategy, which contains one always online, reliable, and secure wireless network data foundation, and three series of solutions: efficient network construction, intelligent O&M, and agile services provisioning. In addition to traditional element management functions such as FCAPS, iMaster MAE also offers carriers on-demand applications such as Site Express, Radio Express, Alarm Turbo, Capacity Turbo, Power Turbo, WTTx Suite and 5GtoB Suite. With customized policy configuration, carriers can improve network construction efficiency, intelligence in O&M, and agility in service provisioning. It attempts to deliver benefits with the following core technologies: � MAE supports open-loop and closed-loop automation in multiple scenarios, such as

planning, deployment, maintenance, optimization and provisioning. � With cloud-based, micro-service architecture, MAE is well-suited for networks of all

sizes. One MAE system can manage 1.2 million 5G cells – one may be enough for an entire network.

� With cutting-edge intelligent technology, MAE has the key tools for automation: scenario perception, adaptive strategy control, automatic multi-parameter optimization, correlation analysis, and time-sequence prediction.

iMaster MAE acts as the centralized manager, controller and analyser (MCA), functioning as the mobile network’s brain. iMaster MAE platform integrates northbound with the cross-domain automation platform for end-to-end network and service automation, and supports an ecosystem of scenario-driven open and programmable APIs. With these key capabilities, Huawei’s iMaster MAE has been successfully put into commercial use on multiple networks around the world, helping customers build network automation capabilities in the 5G era and accelerate carriers' digital and intelligent transformation.



Customer Ownership Experience

Huawei iMaster MAE has enabled its customers to have a brand-new and excellent customer experience. Here are a couple of many examples: · Huawei Site Express helped a Canadian carrier to simplify the wireless network

deployment process. In this case, it seamlessly integrated with its in-house network deployment tool for macro sites and reduced cost complexity and time, which from an average of 4,000 single-station configuration parameters to 100 single-station configuration parameters, 24 hours for deployment to 1 hour for deployment, an average of 3 times of near station boarding to 1 time of near station boarding, and 4 hours for acceptance to only half an hour for acceptance.

· Huawei Radio Express automatically planned 5G neighbouring cells for 22,000 NR cells in South Korea. It auto-generated and successfully executed 3.8 million MML scripts. At the same time, it also performs online iterative optimization to reduce incorrect and missing neighboring cell configurations, greatly reducing handover and call drops during UE movement. The handover success rate increases by more than 20%.

· Huawei Capacity Turbo solution empowered a mobile operator of Thailand accurately identify faults that cannot be identified by humans. Network capacity has been automatically optimized, based on powerful network forecast and inference capabilities.

· Huawei Power Turbo supported a local telecommunication company in Morocco power

saving. The company tested in very different combinations and scenarios, such as shut down carrier slots and even PA during the day and the night. As a result, the network energy consumption was reduced by 15%.

· Huawei Alarm Turbo introduces knowledge graph technology to effectively compress alarms, intelligently associate alarms, and accurately locate faults, enabling quick fault recovery. According to statistics deployed on the live network, it empowered carriers with a 95% compression rate of repeated alarms, a 50% reduction in the number of invalid work orders, and a 50% improvement in fault location efficiency.

· Huawei WTTx Suite, integrating with Smart’s ePOS system and mobile app in

Cambodia, enabled E2E workflow automation. It also identified network as well as CPE issues in a faster way, improved customer satisfaction rate as well as reduced churn rate. Within one and a half years, the market share has increased to nearly 40%. In the meantime, by capitalizing on WTTx Suite, Globe in the Philippines acquired 1.68 million subscribers in 2020, a 122 percent increase relative to 2019.



· Huawei 5GtoB Suite innovative solution, launched last year, has been innovatively practiced in factories in southern China. The solution can implement intelligent and precise planning, simplified on-demand deployment, and proactive E2E O&M, helping operators build highly reliable industry networks.

· Huawei Indoor MBB Visibility powered grid-level fine management of more than

20,000 base stations, by introducing intelligent technologies such as Huawei’s iMaster MAE big data analysis, traffic forecasting, reducing troubleshooting time from hours to minutes and network deployment cycle from days to hours. This innovation enabled telecom implement unified management visualization for full-lifecycle management and intelligent operation for digital indoor scenarios.

Customer Acquisition

Huawei continues to attract customers on the basis of its evolving, innovative, feature-rich and market-relevant solutions. The company, in keeping with market trends, has shifted its product portfolio from primarily hardware to software and services, and has simplified the barrier to acquiring newer customers by providing an open platform for the O&M ecosystem, scenario-specific APIs, and a development suite for developers. The open ecosystem for collaboration where the operator and partners can better co-develop solutions for rapid innovation. Scenario-specific APIs shield the complexity of MBB networks. Networks and upper-layer systems interact at the intent level instead of the instruction level, simplifying interconnection and vertical collaboration. The development suite allows customers to quickly customize apps to carriers' differentiated network management requirements and reshape their workflows. For example, Huawei’s iMaster MAE enabled Canadian carrier to automate network deployment using model-driven planning, facilitated hardware self-detection and configuration, and automated workflows with APIs. Furthermore, Huawei’s iMaster MAE provides an SLA Coverage function, which can accurately translate industry service intents and evaluate network resources to meet industry SLA requirements. Moreover, the Add-on architecture is used to flexibly isolate network resources, quickly deploy private networks over public networks, analyze service performance online, and forecast customer requirements, ensuring the fulfilment of industry SLA requirements and reinforcing customers loyalty. Growth Potential

With the application of automation and intelligent technology, Frost & Sullivan observes how demand from customers is shifting more towards autonomous and intelligent solutions. Huawei initiative to deploy intelligence and automation allows it to stay competitive in this business. Based on a cloud data platform and powerful network forecast and inference



capabilities, Huawei anticipates network management problems and offers intelligent and autonomous solutions to overcome them. It fits perfectly into carriers' deployment, maintenance and optimization, and provisioning scenarios, achieving end-to-end closed-loop automation in all scenarios. Customers notice faster improvements in network O&M performance and keep confidence and trust in Huawei’s products. Frost & Sullivan expects Huawei iMaster MAE’s growth plan to be quite positive and optimistic over the next several years, based on its plan to launch innovative products. With the transition to automation and intelligent orientation, coupled with vertical industry apps gain momentum, carriers are more concerned about how to monetize differentiated network services and quickly roll out new service apps. Brand Equity

Huawei is committed to becoming an explorer, innovator, and leader of networks and promoting intelligent upgrade and intergenerational evolution of the telecom industry. Since 2016, as intelligent technologies become mature, Huawei has conducted research and exploration on the impact of intelligence on network architecture. Huawei cooperates with industry partners to continuously promote Autonomous Network from the concept to the standard and actively engaged in innovative practices. According to Huawei's ADN strategy, Huawei will conduct architectural innovation to solve the structural TCO problems of telecom networks, and drive the intelligent upgrade of the telecom industry. Huawei will also proactively participate in, promote the development of, and share the dividends of, service innovation in the intelligent society. This will revitalize the telecom industry, attract new talent to the industry, and promote healthy and sustainable development of the industry. In addition, Huawei has office site worldwide to improve its business, and the company provides a significant amount of support, and marketing materials to these office sites to serve customers with technical assistance. Customers enjoy the product’s lifecycle experience - from buying a product to obtaining technical help from the company. With its perspective strategies and top-notch leadership team, Huawei is looking forward to further expanding its global presence. Frost & Sullivan appreciates how Huawei engages in observational research through customer groups to understand how the customer perceives its products and then works to significantly enhance the customer experience.

Conclusion With the advent of the 5G era, operators are facing challenges such as simplifying processes, reducing OPEX, increasing agility, etc., due to the complex networks. A high level of automation and intelligence is a great way to handle complexity, reduce costs and support



agile response. Automation, intelligence and digitization have become the central concerns of operators. Huawei’s iMaster MAE is the foundational block within the ADN strategy to transition to full network autonomy and zero-touch operations. It is also a critical tool in carriers’ digital transformation, and evolution to closed-loop automation. To empowers carriers to move beyond siloed, legacy EMSs, and creates new services and revenue streams, Huawei iMaster MAE introduces high-value, open-standards, programmable, scalable, and innovative closed-loop solutions, and creates self-automated, self-healing, and self-optimized wireless networks. Based on collaboration with expert experience, Huawei iMaster MAE accelerates and automates RAN integration, enables end-to-end agile workflow orchestration, and reduces 5G OPEX. Such a human-machine collaboration model helps operators build better 5G networks. iMaster MAE’s customers have, in turn, experienced strong value from its products, and have rewarded the company with their business. For these reasons, Huawei iMaster MAE is recognized with Frost & Sullivan’s 2021 Global Autonomous Network Solutions Customer Value Enhancement Award.



Significance of Customer Value Innovation Ultimately, growth in any organization depends upon customers purchasing from a company and then making the decision to return time and again. Delighting customers is, therefore, the cornerstone of any successful growth strategy. To achieve these dual goals (growth and customer delight), an organization must be best-in-class in three key areas: understanding demand, nurturing the brand, and differentiating from the competition.



Understanding Customer Value Enhancement Customer Value Enhancement is defined and measured by two macro-level categories: Customer Impact and Business Impact. These two sides work together to make customers feel valued and confident in their products’ quality and long shelf life. This dual satisfaction translates into repeat purchases and a high lifetime of customer value.

Key Benchmarking Criteria For the Customer Value Enhancement Award, Frost & Sullivan analysts independently evaluated two key factors—Customer Impact and Business Impact—according to the criteria identified below.

Customer Impact Criterion 1: Price/Performance Value

Requirement: Products or services offer the best value for the price, compared to similar offerings in the market.

Criterion 2: Customer Purchase Experience

Requirement: Customers feel they are buying the most optimal solution that addresses both their unique needs and their unique constraints.

Criterion 3: Customer Ownership Experience

Requirement: Customers are proud to own the company’s product or service and have a positive experience throughout the life of the product or service.

Criterion 4: Customer Service Experience

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

Criterion 5: Brand Equity

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

Business Impact Criterion 1: Financial Performance

Requirement: Overall financial performance is strong in terms of revenues, revenue growth, operating margin, and other key financial metrics.

Criterion 2: Customer Acquisition

Requirement: Customer-facing processes support the efficient and consistent acquisition of new customers, even as it enhances retention of current customers.

Criterion 3: Operational Efficiency



Requirement: Staff is able to perform assigned tasks productively, quickly, and to a high quality standard.

Criterion 4: Growth Potential

Requirements: Customer focus strengthens brand, reinforces customer loyalty, and enhances growth potential.

Criterion 5: Human Capital

Requirement: Company culture is characterized by a strong commitment to quality and customers, which in turn enhances employee morale and retention.



Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices Frost & Sullivan analysts follow a 10-step process to evaluate Award candidates and assess their fit with select best practice criteria. The reputation and integrity of the Awards are based on close adherence to this process.

STEP OBJECTIVE KEY ACTIVITIES OUTPUT

1 Monitor, target, and screen

Identify Award recipient candidates from around the globe

• Conduct in-depth industry research • Identify emerging sectors • Scan multiple geographies

Pipeline of candidates who potentially meet all best-practice criteria

2 Perform 360-degree research

Perform comprehensive, 360-degree research on all candidates in the pipeline

• Interview thought leaders and industry practitioners • Assess candidates’ fit with best-practice criteria • Rank all candidates

Matrix positioning of all candidates’ performance relative to one another

3 Invite thought leadership in best practices

Perform in-depth examination of all candidates

• Confirm best-practice criteria • Examine eligibility of all candidates • Identify any information gaps

Detailed profiles of all ranked candidates

4 Initiate research director review

Conduct an unbiased evaluation of all candidate profiles

• Brainstorm ranking options • Invite multiple perspectives on candidates’ performance • Update candidate profiles

Final prioritization of all eligible candidates and companion best-practice positioning paper

5 Assemble panel of industry experts

Present findings to an expert panel of industry thought leaders

• Share findings • Strengthen cases for candidate eligibility • Prioritize candidates

Refined list of prioritized Award candidates

6 Conduct global industry review

Build consensus on Award candidates’ eligibility

• Hold global team meeting to review all candidates • Pressure-test fit with criteria • Confirm inclusion of all eligible candidates

Final list of eligible Award candidates, representing success stories worldwide

7 Perform quality check

Develop official Award consideration materials

• Perform final performance benchmarking activities • Write nominations • Perform quality review

High-quality, accurate, and creative presentation of nominees’ successes

8 Reconnect with panel of industry experts

Finalize the selection of the best-practice Award recipient

• Review analysis with panel • Build consensus • Select recipient

Decision on which company performs best against all best-practice criteria

9 Communicate recognition

Inform Award recipient of Award recognition

• Inspire the organization for continued success • Celebrate the recipient’s performance

Announcement of Award and plan for how recipient can use the Award to enhance the brand

10 Take strategic action

Upon licensing, company is able to share Award news with stakeholders and customers

• Coordinate media outreach • Design a marketing plan • Assess Award’s role in future strategic planning

Widespread awareness of recipient’s Award status among investors, media personnel, and employees



The Intersection between 360-Degree Research and Best Practices Awards Research Methodology Frost & Sullivan’s 360-degree research methodology represents the analytical rigor of our research process. It offers a 360-degree-view of industry challenges, trends, and issues by integrating all 7 of Frost & Sullivan's research methodologies. Too often companies make important growth decisions based on a narrow understanding of their environment, leading to errors of both omission and commission. Successful growth strategies are founded on a thorough understanding of market, technical, economic, financial, customer, best practices, and demographic analyses. The integration of these research disciplines into the 360-degree research methodology provides an evaluation platform for benchmarking industry participants and for identifying those performing at best-in-class levels.

About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages more than 60 years of experience in partnering with Global 1000 companies, emerging businesses, and the investment community from 45 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.

360-DEGREE RESEARCH: SEEING ORDER IN THE CHAOS

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FS 2021 Global Autonomous Network Solutions Customer Value