IBM Smarter Commerce Order Management for Communications

© 2012 IBM Corporation© 2012 IBM Corporation

Order Management for CommunicationsSmarter Commerce

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Delivering greater customer experience means overcoming traditional challenges to order management in communications

The empowered customer today

expects to be able to perform any action in any channel without being expected to provide redundant

data

Collapsing customer and service order

management into a single platform

enables the CSP to reduce operational

cost while decreasing time to

market

The ability to incorporate catalog

definitions as well as real-time analytical insight into the OM

processing behavior is critical to reacting to dynamic market

changes

In the age of the empowered customer it’s

imperative that CSPs have the ability to rapidly add to their offerings through

fulfillment partnerships via 3rd

parties

Simplified Management of New Fulfillment

Solutions

Seamless CustomerAnd Service Order

Management

Catalog and Analytics

Driven ProcessingBehavior

anta

goni

stic

apat

hetic

advo

cate

Long Lead Timesfor Offering New

Services RequiringFulfillment

Divergent andRedundant OM

Solutions

Manual OMSolutions RequiringMultiple Changes

Cust

omer

Atti

tude

Customer Advantages to Cross-Channel Order Management

Traditional Telecom Order Management

Cross-ChannelFulfillment For the

EmpoweredCustomer

Channel SpecificServices and

Insight

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© 2012 IBM Corporation

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The empowered customer is demanding and elusive but can be rewarding for CSPs

----------------------------------------------------Customer advocacy in the retail industry is twice what it is in

the the telecommunications industry.

Antagonist

AdvocateApathetic

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Globally fewer than one fifth of customers were identified as advocates for their CSP.

Additional spend of advocates over

antagonists

12%

62% research via social networks 84% want to order online – return to store

They trust customer reviews 12x more than vendor statements A Facebook ‘like’ is worth 100 positive reviews by a stranger

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© 2012 IBM Corporation© 2012 IBM Corporationhttp://www.osstransformation.com/Time-to-Market

of CSPs say it isa key

differentiator

of CSPs sayit has a positive

impact on revenue

of CSPs say it achieves customer

loyalty

70%95%91%

up fromin 2008 59%

Time-to-market demands place further pressures on today’s order management systems and processes

Getting new products, services, and offers to market quickly and accurately across all channels is critical objective for CSPs

However, from 2008 to 2011 the number of service providers who could bring a new product to market in six

months or less FELL by 2%...4

© 2012 IBM Corporation

CSPs are expanding their service offerings to digital home and life services to compete with traditional and OTT providers

Jan 2011Feb

2012

Verizon announces Home Energy and Monitoring Control

AT&T introduces Digital Life Services…

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The de-coupling of voice and data traffic and revenue is forcing CSPs to look to outside partnerships and alliances to continue to create additional value for their customers with near-

neighbor services

How is your organization diversifying and growing it’s solutions for the empowered customer?

Apr2005

NTT DoCoMo launches financial creditservice… now has over 10 million subscribers…

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Cross-Channel Order ManagementTrue Cross-Channel Product and Service Fulfillment:

– Can your customers order in one channel and pick up or return through a different channel?

– Do you have visibility into your entire inventory of handsets, accessories or consumer premises equipment, regardless of it’s location?

Managed Fulfillment Inside and Outside The Organization:– Does your organization have the ability to rapidly adopt new solutions regardless of

where or by whom they are fulfilled?– Can you easily provide a single source for all order status updates and fulfillment

progress across all components sold in a customer order, even if they are fulfilled from different solutions?

Catalog and Analytics-Based Order Processing:– Can your order management system dynamically change it’s processing behavior

based upon real-time learning of it’s surrounding environment?– Do you have the ability to take insight from the ordering system to better

understand in real-time how your solution is performing?

Smarter Commerce approach to order management

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IBM Smarter Commerce helps CSPs to better serve the empowered customer through cross-channel order management solutions

Smarter Commerce Lifecycle

Service

Buy

Sell

Market

Servicing customerneeds across all

Interactionchannels

Selling and fulfillmentof products andservices acrossall channels

Sourcing,controlling and

procurement ofgoods and

services.

Targeted andpersonalizedmarketing acrossall customerinteractions

Cross-Channel Order ManagementEnables the coordination of order fulfillment

processes across a dynamic business network of customers, suppliers, and partners with extensive catalog and analytical driven processing behavior.

IBM Sterling Order Management

IBM Telecom Pack

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Order Management

An order hub is a customer and service order management platform capable of handling:

Any DemandAny Offering Bundle

Any Process/ChannelAny Supply

While leveraging existing investments in core systems.

Order management choreographs the activities between capturing the order and fulfilling the order

DecompOrchestration

Fallout Promising

Pricing BundlingCatalog Offers

Guided

Opportunity to Order Capture

Order Capture to Fulfillment

ORDER HUB

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Using an order hub to deliver a seamless cross-channel experience

BPM or Point2Point Layer Transformation

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dMulti-Enterprise Order Capture

Consists of ALL the ‘products, services, pricing and models’ which are singular or bundled components that make up the ‘offer’ to the

customer.

Cross-Channel Order ManagementDecomposes and choreographs of ALL the

customer and resource facing services’ which have been converted (transformed or

decomposed) from the accepted ‘offer’ and manages global inventory visibility and sourcing.

Transformation of Bundle

Serv

ice

Fact

ory

Serv

ice

Fact

ory

Serv

ice

Fact

ory

War

e-ho

use

Web

Chan

nel

Mob

ileCh

anne

l

Call

Cent

er

Part

ner

Rese

ller

Master Product Catalogs

Third Party Fulfillment

Any Demand

Any Offer

Any Process

Any Supply

Telecom Pack – TMForum Orchestration Services

Historical Approach toCSP Order Management

Smarter Approach toCSP Order Management

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Install / Work Order

CPE Order

Single product catalog reference/interface containing both customer and resource facing services in addition to all physical products and work/installation requests

Support for fulfillment of bundledcustomer products across disparate and separate fulfillment systems, even those outside the four walls of the CSP

Lower cost of ownership/operations and faster time to market due to the reduced complexity and redundant systems

Single source of real-time overall and component order status throughout the order lifecycle.

Reverse logistics capabilities from any channel regardless of the ordering channel

Communications providers who are able to combine customer and service ordering platforms are at a distinct advantage

Customer Order

Management

Service Order Management

Customer and Service

Order Management

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1st O

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A combination of workflow pipelines and catalog constraint logic provides the best combination of flexibility and downstream propagation of master catalog changes

Support for n-levels of recursive decomposition and choreography through customer and resource facing services

Allows for TM Forum SID data model standard compliance of network and billing orchestration activity

Triple Play OfferBundle XML

HubRule

Triple Play 1.0

Catalog Decom

p

Smarter Commerce enables catalog-driven customer and service order management

DSLAM 1.1.1.1 IP 1.1.1.2 PORT 1.1.1.3

Network Factory

Network Factory

Network Factory

Broadband 1.1 IPTV 1.2 VoIP 1.3

Catalog Decom

p

Catalog Decom

p

Catalog Decom

p

Broadband 1.1.1 Broadband 1.1.2 Broadband 1.1.3

Catalog Decom

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Catalog Decom

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Improving the customer experience requires a smarter approach to addressing order management in the cross-channel environment

X-Channel Demand

Orders can be captured in any channel - inside or outside the CSP

X-Channel Status

Event management and alerting frameworks allow for notification directly to customers in real time regardless of channel.

Supple-mental Orders

Multiple orders of any type can be created that maintain a lasting relationship and, if necessary, dependency on the parent order. Orders can be nested to any level desired.

Reverse Logistics

The ability to accept and disposition returns to any channel is critical for the customer experience. All returns are connected back to the original order for full lifecycle visibility.

Delivery + Service

Scheduling

Ensures the CSPs delivery and work-related commitments match inventory and resource availability in real-time enabling the selection of an individual service provider or allocation of an entire crew to ensure that all the customers’ expectations are met.

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CSPs need a flexible and extensible order management solution to allow rapid ingestion of new selling and fulfillment sources

SupplyChain

Insight

Real-time inventory and capacity levels, advanced sourcing are available and managed inside or outside the four walls of the CSP.

Scalable and flexible integration with TM Forum compliant service calls for fast, flexible and re-useable integration capabilities.

RapidPartnerIngress

Multi-Enterprise

Native support for multiple enterprises within a single platform segmented by region, role, organization, etc. providing a personalized and definable view of the global supply chain by partners, resellers and suppliers

IntelligentInsight

Analytics and the resulting intelligence on key performance indicators for CSPs and their partners via dashboards and dynamic order process changes allows real-time monitoring, analysis and correction of the entire order lifecycle.

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Analytics-led intelligent applications will help CSPs to evolve beyond catalog-driven order management

Intelligence “ON” the process– Enable users to respond to trends

through dashboards and key performance indicators

Intelligence “IN” the process– Embed analytics directly in the

workflow to enable users access to recommendations based on performance trends to make better decisions

Intelligence “DRIVING” the process– Evolving to leverage business

intelligence analytics along with automated decision-making capability

EnterpriseApplication Server Rul

eExisting Workflow

Web Server

OLTPDatabase

SOA Reports AdHoc

Reporting Server

Data Mart

ETL Process

Workflow process queries metricscalculated by analytics in execution

of the business process

User Interface

Business process screensserved to users

UI mash-upswith application

screens

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Applying the IBM Telecom Pack helped Mobitel – Telekom Sloveniadrastically reduce their time to market and operational costs

IBM BPM withTelecom Pack

Services based upon the TMForum standards

Dynamic endpoint selection capabilities

Hundreds of pre-built services to leading telecom software packages

Key Capabilities: Dynamic business processes with Telecom Pack provides

extensive assets based on TMF Frameworx in a vendor neutral environment

Standards based integration of “best of breed” components into a flexible, scalable solution reduces time to market and overall costs

Solution in Action: IBM Quickstart for standards-based telecom solutions helped

significantly reduce the costs for project startup and cut down on following delivery cycle times

IBM solution resulted in: 40% less expenditure on professional services 45% shorter delivery cycle for the ongoing maintenance

and new releases of processes 40% reduction in total cost of ownership

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Applying cross-channel order management helped one of the world’s largest providers to improve business performance

Cross-ChannelOrder Management

True Cross-Channel Product and Service Fulfillment

Managed Fulfillment Inside and Outside The Organization

Catalog and Analytics-Based Order Processing

Key Capabilities: Combined management of all physical CPE product order-

lines as well as all network service orders Scalability to handle very high transaction volumes Maximizes re-use of legacy factory activation systems

through flexible and adaptable integration platform

Solution in Action: Provides a one-stop “promising” engine across all customer

channels (call-center, web, reseller) IBM solution resulted in:

The most stable ordering solution in production in the group

Reduction in the size of the staff required to manage the solution operations

The ability to handle over 90,000 orders per day at peak

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Mobile/Web

Smarter Commerce: Key ComponentsFunctional Solution Architecture: Order Management

Smarter CommerceOrder Management

1

Sales & ServiceChannels

Retail Reseller Call Center

Order Information VisibilityOrder Placement

Automated Fulfillment Execution and Optimization

FulfillmentIntegration

32

WarehouseManagement

1

Inventory +Capacity

Channel Specific Integration

DispatchingNetworkInventory

NetworkFactories Billing

Order Process Integration

Partners

2IBM Sterling Order Management 3 IBM BPM w/ Telecom Pack

Inventory and CapacityX-Channel Order Creation

Order Status

Catalog-DrivenDecomposition

Orchestration, FalloutReverse Logistics

Analytics

Process ManagmentIntegration Services

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The Smarter Commerce approach to order management creates differentiating benefits

Enhancing the Empowered Customer Experience– The IBM Smarter Commerce approach to order management allows the customer to

have a seamless experience regardless of which channel they interact with for fulfillment activity.

Streamlining Customer and Service Order Management– The IBM Smarter Commerce solutions provide the foundation for blending customer

order management and service order management through extensive use of a transactional product catalog.

Analytics-Infused Order Management– The IBM Smarter Commerce approach provides a world class datamart embedded

directly into the platform to allow activity monitoring and real-time presentation of what’s really happening within the CSP’s extended fulfillment activities.

Ease of Management for 3rd-Party Fulfillment Partners– The IBM Smarter Commerce philosophy to application structure provides the CSP a

simplified and more cost effective approach to bringing on board and managing the fulfillment activities and inventory provided by outside partners.

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The advantages of an IBM Smarter Commerce approach to insight-driven marketing

Best of Breed vs. Single Source is no longer an issue– IBM brings industry-leading modular, loosely coupled but tightly integrated

solutions to enterprise marketing management– IBM is routinely a “Leader” in Forrester’s Order Hub report and other major

ordering technology analyst reports.– IBM is the world’s largest software and services company and has

thousands of resources and invests billions of dollars each year in telecommunications solutions

Legacy investments can be extended–Because of the modular, white-space mentality of the IBM solution, it is no

longer necessary to ‘rip-and-replace’ expensive legacy systems– Instead IBM encourages providers to take advantage of sunk cost when

those systems still have capability beneficial to the new offerings needed

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Customer Value Strategy • The Smarter Commerce Customer Value Accelerator – helps clients

rethink the business model by:– Understanding the new set of possibilities created by customer experience transformation– Prioritizing the value propositions to focus on those with the greatest potential– Characterizing the possibilities into a set of customer journeys/experiences– Defining the business capabilities needed to operationalize the new value proposition

Services & Partner Engagement• The Smarter Commerce Cross-Channel Experience Assessment – helps

clients optimize channel strategy to maximize value by:– Developing a cross-channel strategy that reflects current consumer trends & priorities– Identifying, analyzing and prioritizing cross-channel operation model innovations– Creating journey maps of key events to characterize the future-state of the customer

experience

Getting Started with Smarter Commerce -Customer value strategy and engagement assessments

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IBM is the right partner for Smarter Commerce software, services and consultative guidance

Leading communications industry capabilities:

Analytics and Catalog-Driven Customer and Service Order Management, Global Inventory Visibility, Integration of Dispatch/Work Order, Reverse

Logistics

Leader in research and development:$2.5 billion invested since 2010 to create a truly smarter approach to commerce and a new services practice with more than a thousand dedicated experts

Expertise in the communications industry:Over 1,000 service providers have selected IBM solutions and all top 20 providers worldwide have chosen IBM

Leader in Smarter Computing:Over 50,000 hardware and software developers optimizing systems to manage needs driven by commerce applications

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Technology

IBM Smarter Commerce Order Management for Communications