SERVICE PROVIDER TRANSFORMATION

MAKING THE SHIFT FROM COST-DRIVEN TO BUSINESS-DRIVEN INITIATIVES IN THE NEWINITIATIVES IN THE NEW TELECOMS DECADE

Marc Rotthier – VP SalesHP Communications and Media S l ti B i U it

©2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice

Solutions Business Unit

Decades of change in the Telecoms Industry1980 - 1999 2000 - 2009 2010 - 2020

Revenue Gap

Gro

wth

Revenues

G

Data Traffic

In this decade CSPs transform to get serious about:

Enterprise Growth Consumer Growth Business Transformation

• Their revenues and customer focus• Their cost structure

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Transformation is a key agenda item but execution i ill h llQ: Do you believe your organization

needs to undergo Transformation?Q: What are the biggest challenges your

organization has faced in successfully

is still a challenge

needs to undergo Transformation?

5%6%

organization has faced in successfully driving Transformation programs?

Yes 96% 22%

8%8%

5% Implementation

Limited

No 4%17%

15%14%

8%Pace of Fulfillment

Ch

Executive Alignment

LimitedMomentum

Change Capabilities

Alignment

Source: Hewlett-Packard Global Transformation Study 2010In collaboration with Frost and Sullivan4

Transformation priorities are shifting Q: Considering your current organization and market situation,

what are your top three business priorities in relation to Transformation?

MarginGrowth

Time toMarket

CostReduction

RevenueGrowth1 2 3 4

88% cited:Revenues &

88% cited:A high

56% cited:Cost reductions

32% cited:Revenue growth

THRIVESURVIVE

Revenues & margin from currentportfolio

A high performance& agilebusiness

Cost reductions Revenue growth from new services & business models

5Source: Hewlett-Packard Global Transformation Study 2010In collaboration with Frost and Sullivan

Approaches to TransformationWhere are operators going?

COST

REVENUE INNOVATION AGILITY EXPERIENC

E

OUTSOURCING AND ORGANIZATION BUSINESS NEW BUSINESSOUTSOURCING AND MANAGED SERVICES

• Managed Networks

• Call center outsource

ORGANIZATIONTOOLS, PROCESS

• Reorganizing for customer segments

C i t t

BUSINESS RESTRUCTURING

• Network sharing

• M&A

NEW BUSINESS MODELS

• Wholesale/retail

• Two-sided business d l• Consistent process

and systems • Sell off network model

• OSS, BSS and IT transformation

• VAS Outsourcing• IT and

Application Provider

COST-FOCUSED BUSINESS-FOCUSED

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New business models: IT and application providerCONTENT AND APPLICATIONS

PROVIDERSCOMMUNICATIONS

SERVICE PROVIDERS END USERS

Messaging BUSINESS CONSUMERS

Settlement & charging

Aggregation

Monitoring & reporting

SLA

Providing cloud-based infrastructure to accelerate SFR

Security

Business Team growth in its enterprise business that already serves 140,000 French companies

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Cloud & as-a-Service applications at SFR

REVENUENew revenues from adjacent IT Markets for Enterprise

INNOVATIONBeat the competition through an innovative offer – three months to market

AGILITYAggregation platform approach gives quick time-to-market for new services

"The Cloud Computing business model is similar to the one of Telecommunications Operators. [It] is also an opportunity to increase customer’s loyalty. Cloud services represent a major opportunity for both SFR and our business customers.

P l C b l G l M SFR B i T

EXPERIENCE

Paul Corbel, General Manager, SFR Business Team

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VAS Outsourcing for operational agility

Voice VAS revenue

OpEx is flat

METHOD:ASSESS operation

is declining

Old WorldASSESS operation

..CONSOLIDATE architecture and process

…COMMIT to SLAs

10%

Innovation30%Technology

Innovation Transformation

RESULTS: GOVERN via well stipulated KPIs and SLOs

..SAVE significant OpEx, eliminate CapEx

60%20-25%

35-40%

Operation

Modernization &Consolidation

Governance & C t ti i ti O

utso

urci

ng..SAVE significant OpEx, eliminate CapEx

…FREE staff to INNOVATE35 40% Cost optimization O

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VAS Outsourcing for a large Indian OperatorEnabled faster response to new market and revenue opportunities

COSTReduced TCO by 40%Reduced TCO by 40%

Vastly improved ability to make VAS service changesINNOVATION

Vastly improved ability to make VAS service changes

Voice XML used to effectively support innovative new servicesAGILITY

Voice XML used to effectively support innovative new services

Twenty separate IVR platforms were consolidated to a single, robust Network-based IVR that was outsourced according to a strict SLAsg

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OSS/BSS Transformation: Why?

Cost-Reduction Agility Experience

Meet objectives for reduced “Network Costs” and OPEX

OSS cannot be a roadblock to new services

Customer Satisfaction

“50% ffi i t” i“50% more efficient” in Fault Management in

Verizon

Magyar decreased TTM 20% through

consolidated provisioning

T-Mobile Hungary: saved $6M/year and best ever customer satisfaction

*Source IDC study of HP customers 11

OSS/BSS Transformation at DTAC

COSTDouble digit OpEx reductionDouble digit OpEx reduction

Halve problem solving time 70% first contact resolution rateEXPERIENCE

Halve problem solving time, 70% first contact resolution rate

Consolidation to common application and processes improves TTMAGILITY

Consolidation to common application and processes improves TTM

“HP’s dSmart solution comprises of a set of …standard applications to improve speed, delivery of services and service quality.“ – Tore Johnsen CEO dtac cited in Thailand’s “The Nation”

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services and service quality. Tore Johnsen, CEO, dtac cited in Thailand s The Nation

THANK YOU

©2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice

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