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Leveraging SAP to Innovate in Telco’s
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Leveraging SAP to Innovate in Telco’s
Andrew Strachan : Industry Principal SAP Africa
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A TEASER..
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Declining Revenues
Downward Margin
Pressure
Intense Focus on
Customer Loyalty
Deregulation Number Portability UNE-P (Unbundled
Network Elements Platform)
Do-not-call Registration Sarbanes Oxley
Culture Changing emphasis
towards customer satisfaction
Legacy of “best of breed” solutions
Severe threat to internally developed systems and IT personnel
Economic Environment Telecom’s share of GDP relatively stable at about 2% Communications services rates continue to drop as
technology enables higher bandwidth and services become universally available
Intense Competition Increased competition enabled by deregulation Cannibalization between Services Threat of VoIP (Voice over Internet Protocol) Continued industry restructuring
Fight for Customer Wallet Share Focus on broadband
internet services
Focus on bundling and long term pricing plans
Blurring lines between local and long-distance carriers
Continued focus on customer loyalty, and quality of service
A Telco’s Challenges are tough !
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The convergent digital economy is here – today! Telco 2.0
Service Provider
Application Developers Content Providers Merchants
Airlines, Merchants
Info Providers
Cinema, Theater..
Merchants Music
Game Video
M-commerce
Small Payments
Micro-payments
Bonus Points
Stocks
Ticket Services
Loyalty Prog
Merchants Sponsoring Advertisment
SaaS SW Vendor
Home/ SoHo
SMEs
Enterprise
Public Sector
Personal
Connectivity Google buying wireless spectrum Delivery channels for SaaS (Telenor, BT) Sales channels for digital content, devices and
consumer electronics Build & own content Clearing house for micro-payments Utilities become telcos
ANY
CONTENT
ANY
WHERE
ANY
DEVICE
Community “Fabless” manufacturers (Nokia = music
and maps business) MSFT and News Corp investing in face
book and myspace Creating communities from single
services (Nintendo Online) Ad aggregators and widget brokers Advertising-based business models
(radio, TV, publishing, voice, devices, connectivity, downloads, software)
Content μ- payments suppliers (ngpay) IP management & settlement (Apple,
Disney) SaaS & software vendors (SAP,
Salesforce, MSFT) Creators and distributors of software
and intellectual property (Nintendo, Lionsgate)
Specialist publishers (WSJ, Nexus)
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Business Requirements for an Adaptive Communications Service Provider
Few weeks Few hours Time to Market
Call center driven Self service via intelligent
edge device Service
My campaigns My partners’ campaigns Marketing
Service provider owned Partner enabled Eco-System
Connectivity Connectivity, Context,
Content & Community Revenue Models
Asynchronous & generic Synchronous & tailored Responsiveness
Today’s Telco The Adaptive CSP
The adaptive CSP needs to evolve the IT infrastructure to meet the
business requirements of tomorrow
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Key Business Drivers for Telco Companies Innovation is ESSENTIAL !
© SAP 2007 / Page 6
Improve competitive cost-level
Retain high profit customers & grow customer lifetime value
Innovation: Drive new business models
Improve level of operational excellence
1
2
3
4
Improve customer loyalty and retention Understand customers personally to identify / retain profitable
contracts and grow revenue Develop and market segment specific offerings
Innovative products and fast idea-to-cash Product bundling and innovative pricing schemes Conquer international markets and engage in partnerships
(wholesale)
Exploit cross business unit synergies Establish shared services Improve process flexibility (for new business models and M&A
scenarios) Leverage existing human capital to the best possible extend
Optimize CapEx (emphasis on network and IT infrastructure) Minimize OpEx (emphasis on core business processes) Decrease financial risk (reduction of DSO, bad debt losses etc.)
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THE FUTURE TELCO
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SAP Telco – Strategic Focus Areas
Get real-time insights
Unwire the enterprise
Rethink billing
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CRM FOR A TELCO
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Telco CRM Needs to be Holistic !
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BILLING AND CUSTOMER FINANCIAL CARE !
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SAP Solution and Features for Consume To Cash
Customer and Partner Financials Management
Convergent Charging
Convergent Billing
Account Receivables Payables Rating
Balance Management
Billing and Invoicing
Presentment Credit Management
Dispute Management
Pricing
Billing
Rating and Charging
Invoicing
Front Office Back Office
Product Marketing
Simulation
Pricing Modeling
Printshop
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Pricing, Rating,
Charging
Revenue & Expense
Management
Invoicing & Payment
Statements
Customer & Partner
Financial Care
Accounts Payable
Accounts Receivable
Pricing & Charging Model Design
Pricing Simulation Converged Prepaid,
Postpaid & Hybrid Charging
SAP Convergent
Charging
Convergent Invoicing
SAP Convergent
Invoicing
Revenue Management Credit Management Online Bill Presentment
SAP Customer Financials Management
Financial Customer Care Collections Management Dispute Management
Consume-to-Cash Analytics
mCommerce
Mobile 365
mBanking mPayment mRemittance
SAP Convergent Charging &
SAP Convergent Invoicing provide customers with a highly scalable and robust platform designed to address any of their multi-service packaging and delivery requirements.
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Telecommunications Business Trends
Minute Type of Video
Peak Hours
Size
SMS
Bandwidth
Ringtone
Age of Content
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SAP Convergent Charging Solution Innovative Technology: Decision Trees
Old: Code-Driven New: Business
Configuration
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Intuitive setup
SAP CC : The Decision Tree
Same interface for usage, recurring and non recurring
Real Time Alerts Table structures with CSV import Counters available to aggregate data
17 © SAP AG 2009. All rights reserved. / Page 17
SAP Customer Financial Management
SAP Credit Management
SAP Convergent Charging
SAP Convergent Invoicing (& Billable Items Billing)
Collections Management: SAP RM-CA Subledger Accounting
SAP Biller Direct (Electronic Bill Presentment and Payment)
Financial Customer Care & Dispute Management
Accounts Receivables Invoicing Billing Rating Mediation Dispute
Management
Customer Registration & Booking
SAP CI
Billable Items
Billing
SAP
Convergent
Invoicing
SAP
Revenue
Management
Contract
Accounting
SAP
Financial
Customer
Care
SAP
Electronic
Bill Presentment
and Payment
SAP
Credit
Management
SAP
Convergent
Charging
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The Convergent Convergent Invoicing Process
Recurring Charges
(e.g. from CRM)
One-time charges
(e.g from Sales)
Charging
Mobile
Rating 2
Internet
SAP Convergent
Charging
Flex
ible
Inte
rfac
e
Exception
3
4
Recurring Charges
One Time Charges
Rated CDR, EDR
Billed Items
Exceptions
Billing Documents
SAP Convergent
Invoicing
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Customer Financial Management Receivables Management & Payment Handling
■ Revenue realization from Billing to General Ledger, aligned with accounting principles and reconciliation needs
■ Adoption of changing
requirements for Industry specific processes
■ Reliable interaction with all payment channels
■ Compliance and transparency throughout external and internal accounting
■ Reduction of TCO associated with multiple billing, invoicing and back office systems
■ Fast, automated and accurate
payment handling, increased customer satisfaction, transparency of outstanding receivables
Objective:
Compliant and transparent receivables management
Best practice solution: Integrate and align all internal and external accounting parties
Issues Key business capabilities Benefits
■ Inaccurate accounting, controlling, and reporting, associated with difficult reconciliation
■ Need industry specific accounting process expertise
■ Complex and high-volume payment handling and unclear payment allocation associated with costly manual work
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Customer Financial Management Credit & Collections Management
■ Credit risk based customer segmentation
■ Collections based on Business Rules Framework, easy to adjust new requirements and considering the overall customer situation
■ Evaluation on collection success, Champion challenger analysis
■ Proper treatment of customers in collections, improve customer satisfaction
■ Reduction of DSO and collection time, less labour costs
■ Transparency and flexibility to
continuously improve collection processes
Objective:
Successful collections
Best practice solution: Segment customers according to credit risk, provide full flexibility regarding treatment of customers in collections, use all information and tools to take adequate measures
Issues Key business capabilities Benefits
■ No consideration of customers’ credit risk and thus treatment of all in the same way
■ Slow, fixed and non-transparent
processes ■ Legacy systems and thinking
limit improvement opportunities
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SAP AND BIG DATA
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Information is Exploding within and around Communications Service Providers
Subscriber Data
Social Media
Dev
elop
er
Costs
Spe
ed
App Store
Smart Phones
Loca
tion
Bas
ed S
ervi
ces
Custom
er S
ervice
4G
Margins
Innovation
Clo
ud C
ompu
ting
M2M
Ecosystem
Tablets P
latform-as-a-S
ervice
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In-memory computing technology impacts velocity, volume, and value in Telecommunications
2 billion
Data records analyzed in seconds
80% Shorter Offer Optimization Cycle
50x Faster reporting speed
“ SAP HANA is the right tool at the right time to address
T-Mobile’s Big Data challenge “ Erez Yarkoni - T-Mobile US CIO
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SAP HANA for the Telecommunications Industry Value Proposition
Connect the dots between network performance and customer experience Gain real-time visibility and
granularity of network traffic to better plan for surges and related capacity issues in real time
Understand variances and optimize network experience decision-makers in seconds
Gain deep insight on customer profile and behavior
Real-time access to subscriber behavior and preferences for the location-based service
Accelerate the creation of a complete and accurate customer profile in a heterogeneous environment
Timely launch new offers and bundles based on advanced analysis Create offer simulations to
optimize price and margin based on usage patterns and historical consumption
Tailor the right mix of services to the right subscriber segment based on a wide range of data sources
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SAP HANA, modern platform for real ‘real-time’
What is SAP HANA? SAP HANA ™ is a modern platform that
leverages the power of in-memory computing
Enables to drive businesses in real-time on an ever increasing massive volume of data
Can be deployed as an appliance or delivered via the cloud
Batch bulk uploads
SAP HANA
SAP Business
Suite
SAP Business Warehouse
Other data sources
Real-time copy
SAP HANA modeling
SAP Business Objects tools
(Other query tools)
SAP HANA information composer
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SAP HANA at T-Mobile US Offer Performance Management accelerated
Proliferation of targeted offers/micro-offers to 21M customers makes offer performance management increasingly strategic -
Offers / Micro-offers Channels Customers
Call Center
Retail store
SMS
Self-Service
-
-
50x improvement in the performance of analytics: We can recalibrate offers in the market place in one day that took a week using our existing solutions.
— Erez Yarkoni, T-Mobile CIO
“
” Marketing operations team in need to quickly analyze offer uptake, discern patterns and refine offers
-
SAP HANA Deployment Rapid insight with full detailed data for rich analysis -
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SAP HANA in Action – Sample Query Performance in Telecommunications
Before SAP HANA With SAP HANA
9 seconds
10 minutes
Please refer to the latest HANA Hardware sizing for the latest certified hardware sizes for maximum storage size on HANA 1.0. Above tests were done in the SAP Lab with customer data-sets.
Runs 67x
faster 2.8 seconds
analysis processing time
2000 stores
2 billion records
55 million dimensions
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Sample SAP HANA Use Cases for Telecommunications
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How SAP HANA helps Telecommunications Opportunities for your business
Corporate Operations
Network Management
Marketing & Sales
Customer Management
IT
Advanced insights to define, simulate and launch profitable new offers and bundles
Near real time information and analysis on new offer performances across all channels and geographies
Optimal up-selling and cross-selling results through access to latest usage & consumption in real time/ near-real time
Greater and faster insight into individual customer and customer segment behavior based on usage, charging. billing, payment data
Correctly/Better predict customer trends and improve revenue and retention
Enhanced capabilities to detect critical prepaid customer situations (near zero balance, refill frequency..)
overview overview overview overview
Enable timely and accurate reporting of financial and operational performance
Reduced cycle time for profitability analysis
In a flash General Ledger reporting
Provide insights on network availability / performance
Accurately measure and trend service performance and analyze impact on customer experience
Detect and act upon fraudulent activities as rapidly as possible
Integrate disparate customer, product and operational data sources into single version of the truth – in seconds
Reduce overall costs of information
Reduce IT staff support needs as user self-service for immediate information, rather than custom reports, increases
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MOBILITY
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Successful telecommunications companies…
continuously grow their customer base and revenue through reliable and top-notch services
They do it by… driving growth through timely market-relevant service
offerings improving subscriber retention and up-selling providing the right network infrastructure Result: Realize market opportunity and profitability targets Increase customer satisfaction and revenue Gain sustainable market share
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Mobility accelerates business
connect to enterprise data consume information control your business
Mobility enables you to anytime, anywhere
Partner
Service
Operations Sales
Customer
Executive
IT
Mobile Commerce
Real-time Analytics
Rating and Charging
Pre-paid Consume-to-Cash
Device Management
Field Service Management
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Conduct business wherever, whenever
Improve convenience
Reduce complexity
Harness the power of mobility in telecommunications companies
Next-generation user experience and improved customer satisfaction
Reduced total cost of ownership and increased
focus on relevant information
Result Result Result
Anytime access to information needed for more informed decisions
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Field and operations
Conduct business wherever, whenever
Mobility helps telecommunications companies maximize profits
Business-to-business and cloud services
Reduce complexity
Consumer services Improve convenience
Access business-critical analytics, anytime, anywhere
Have “desktop-to-go” access to relevant business transactions
Enable telecommunications business-to-business sales
Receive maintenance work orders in the field
Offer mobility as a service to your customers
Manage devices more easily
Manage applications more easily
Ensure security
Make any application mobile enabled
Perform near field communication (NFC)–enabled mobile payments on-the-go
Enable embedded on-device rating and charging
Let consumers manage accounts via a mobile device
Enable top-up prepaid consume-to-cash
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IN SUMMARY
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“It is not the strongest of
the species that survives,
nor the most intelligent,
but the one that is most
responsive to change”
Charles Darwin
“Insanity is doing the
same thing over and
over again
and expecting different
results…”
Albert Einstein
END Andrew Strachan Industry Principal: Service Industries SAP South Africa T +27-11-319-7439 F +27-11-235-6201 M +27-83-235-0152 E [email protected]