Managed Services: A refocused business approach: Gary Nugent, Vice President and General Manager, Managed Services Business
 

Managed Services: A refocused business approach: Gary Nugent, Vice President and General Manager, Managed Services Business

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As part of The Shift plan, Alcatel-Lucent is returning its managed service business to profitability. Over the last year, the company has exited unprofitable contracts and focused its resources on ...

As part of The Shift plan, Alcatel-Lucent is returning its managed service business to profitability. Over the last year, the company has exited unprofitable contracts and focused its resources on areas where we add the most value. Gary provides a status update and answers your questions. (Track Four: Applications and Services)

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Managed Services: A refocused business approach: Gary Nugent, Vice President and General Manager, Managed Services Business Managed Services: A refocused business approach: Gary Nugent, Vice President and General Manager, Managed Services Business Presentation Transcript

  • MANAGED SERVICES UPDATE Gary Nugent, VP Managed Services November 2013 ANNUAL TECHNOLOGY SYMPOSIUM COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • ALCATEL-LUCENT MANAGED SERVICES 2013 ACHIEVEMENTS •  Verticalized the Managed Service business. •  Restructured or managed separation of 15 contracts not achieving objectives. •  Simplified offers supporting IP Networks and Ultra-Broadband Platforms sales. •  Delivered managed services with our Standard Delivery “Blueprint” Model. •  Winning new strategically aligned managed services deals. •  Focused on improved margins and cash positive engagements. MANAGED SERVICES TURNAROUND SUCCESSFUL! 2 ANNUAL TECHNOLOGY SYMPOSIUM COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • MANAGED SERVICES MARKET TRENDS FOCUS NETWORK DRIVEN SERVICE DRIVEN END-CUSTOMER DRIVEN TECHNOLOGY MAINTAIN NETWORK TRANSFORM NETWORK VIRTUALIZE NETWORK OPERATIONS METRICS NETWORK KPIs SERVICES KQI CUSTOMER EXPERIENCE MANAGEMENT BUSINESS MODEL OPEX DRIVEN TCO DRIVEN STRATEGIC BUSINESS OBJECTIVES DRIVEN ENGAGEMENT MODEL “Like-for-like for less” OUTSOURCE OPERATIONS PARTNERSHIP BUSINESS PARTNERSHIP MS 1.0 MS 2.0 MS 3.0 A CHANGING MANAGED SERVICES PARADIGM FOCUSED ON CUSTOMER EXPERIENCE, VIRTUALIZATION, AND DELIVERING TRANSFORMATIONAL SOLUTIONS 3 ANNUAL TECHNOLOGY SYMPOSIUM COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • ALCATEL-LUCENT MANAGED SERVICES STRATEGY 2014-2016 •  •  •  •  ALCATEL-LUCENT SHIFT PLAN AND SERVICES STRATEGY 2014-2016 MANAGED SERVICES STRATEGY… MARKET Grow existing customers Expand in Strategic Industries and banking Invest in META, US, CALA Target opportunities aligned with IP Networking, Ultrafast BB, and fixed/mobile convergence •  •  •  •  •  •  •  •  WITH PROFITABLE SALES GROWTH PORTFOLIO Expand and enhance BOMT Offer Customer Experience Management/SOC solutions VFV/SDN solutions Security managed services solutions DELIVERY Transform base to Blueprint Model Continue Blueprint innovation Consolidate NOC capabilities Expand to support evolving portfolio 4 ANNUAL TECHNOLOGY SYMPOSIUM COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • ADVANCED SERVICE DELIVERY MODEL STANDARDIZED MANAGED SERVICES BLUEPRINT The Blueprint benefits include… •  Predictable performance with continuous quality improvement •  Rapid time-to-delivery •  Lower TCO •  Continuous learning with knowledge re-use ALCATEL LUCENT MANAGED SERVICES BLUEPRINT MODEL NETWORK MANAGEMENT DOMAINS Organization Job catalog Performance Management Service Desk Management Professional development Fault Management •  Accurate real-time dashboard Inventory Management •  Reduced customer investment Field Force Management •  Evolution from network to service management Governance Delivery centers • On-shore • Near-shore Aligned with eTOM and ITIL frameworks Process Systems/ Tools • Off-shore Fully integrated delivery structure providing unmatched performance with 6-Sigma levels of excellence 5 ANNUAL TECHNOLOGY SYMPOSIUM COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED. Metrics
  • TODAY’S MANAGED SERVICES PORTFOLIO SOLUTIONS AND VALUE PROPOSITIONS AVAILABLE BUILD, OPERATE, MANAGE AND TRANSFER (BOMT) MS OPERATIONS TRANSFORMATION Improve time-to-market and reduce risk when introducing innovative end-user services and new Alcatel-Lucent technologies Improve our customers’ network operations efficiency and quality through transformation to the Alcatel-Lucent Standard Delivery Model 6 ANNUAL TECHNOLOGY SYMPOSIUM COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • SERVICE MANAGEMENT MODEL FOR MANAGED SERVICES ALCATEL-LUCENT’S PRAGMATIC APPROACH 1.  “Monitor” - Provide customer experience data 2.  “Assist” - Engage in service operations processes ANALYSIS TRENDING PATTERNING NETWORK AND SERVICE PERFORMANCE MODELS 3.  “Managed Service” - Deliver management of service operations CUSTOMER EXPERIENCE DASHBOARD •  Best-in-class tools and methodologies -  Proactive Care - root cause analysis of the end-to-end network service quality -  MOTIVE – from KQIs to Customer Experience Management KQI1 KQI2 KQI4 PNM PROACTIVE NETWORK MONITORING Network CUSTOMER EXPERIENCE MODELS ROOT CAUSE ANALYSIS 7 ANNUAL TECHNOLOGY SYMPOSIUM COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED. KQI3 KQI5 CUSTOMER EXPERIENCE SCORING MOTIVE SQM Customers
  • MANAGED SERVICES - VIRTUALIZED TELCOS THROUGH SOFTWARE-DEFINED NETWORKS •  Telco virtualization and key implications on operations •  Focus for Alcatel-Lucent managed services business: -  Skills spectrum will shift towards IT -  Legacy NOC operations will require entire redesign -  And major investments in new support tools -  IT and network field operations will converge -  Cyber-security challenges will require a new approach -  Expectations to address customer experience management -  Operations impact analysis and development of operations transformation methodology -  Shift from reactive to proactive operations due to short reaction time requirement -  Definition of SOC on top of Cloudband and Nuage platforms -  Development of new Blueprint operations model for virtualized telco THE COMPLEXITY OF THE VIRTUALIZED TELCO WILL CHANGE THE PARAGIDM OF HOW OPERATIONS METHODOLOGIES AND PROCESSES ARE DONE – MANAGED SERVICE PROVIDERS NEED TO BE READY. 8 ANNUAL TECHNOLOGY SYMPOSIUM COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • ALCATEL-LUCENT CYBER-SECURITY SOLUTIONS ADVANCED E2E SECURITY INTEGRATION THREAT MANAGEMENT SERVICES SECURITY ENABLEMENT SOLUTIONS PREVENTION Risk Analysis and Secured Design Threat and Vulnerability Intelligence CERT services PROTECTION Self-defending Architectures DETECTION Security Log and Monitoring systems Events Monitoring and Control MITIGATION Filtering and Anti-DDOS Crisis Management and Remediation E.g. IDS, Content Filtering, Mail Filtering Monitoring and Regulatory Compliance COMPLIANCE IMS LTE IP Etc. 9 ANNUAL TECHNOLOGY SYMPOSIUM COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED. Anti-DDOS Mitigation
  • ALCATEL-LUCENT MANAGED SERVICES SCALE •  11,500 managed services experts EXPERIENCE QUALITY •  240 Million+ subscribers •  24x7 support from 3 GNOCs and 29 local NOCs •  Manage 215,000+ technical work orders and 1 Million Repair Transactions annually •  Staffed with 2000+ highly skilled engineers knowledgeable in 50+ different technologies •  Over 1000 local repair and logistics partners globally •  Managing 470K Network Elements •  Speaking 19 languages and supporting 900,000 customer requests each year Over 100 wireline and wireless engagements globally •  Industry leader in integrated wireline + wireless network operations •  Managing 10K+ multi-vendor parts of 35+ OEMs 20+ years of managed services experience 10 ANNUAL TECHNOLOGY SYMPOSIUM COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED. •  More than 2000 ITIL, PMP and 6-sigma specialists employing over a dozen tools to ensure personalized and high quality service delivery; •  20+ years of Technical Support experience •  Exceeding 95% of all contracts SLAs Customer satisfaction scores consistently above target
  • CASE STUDY KPN RESULTS AND BENEFITS “ALCATEL-LUCENT TO TRANSFORM KPN’S FIXED NETWORK OPERATIONS IN THE NETHERLANDS OVER NEXT FIVE YEARS” - Press Release February 27, 2013 •  17% TCO savings driven by energy savings, reduced footprint, IT costs savings, economies of new operations technologies, process and organization optimizations •  Elimination of business continuity risks •  New revenue-generating services available •  Solid partner for Service Quality Center creation •  Staff redeployment from legacy operations to transformation project 11 ANNUAL TECHNOLOGY SYMPOSIUM COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • CASE STUDY VODAFONE VODAFONE Qatar employs Alcatel-Lucent to build and transform its fixed and mobile network “ VODAFONE QATAR IS ACTUALLY TRYING TO SET A NEW STANDARD FOR THE VODAFONE GROUP. ALCATEL-LUCENT WAS THE PERFECT FIT, THE PERFECT PRICE, WITH THE EXPERIENCE WE NEEDED: A COMPANY VODAFONE TRUSTED AND VALUED. THE THING THAT I LIKE MOST ABOUT ALCATEL-LUCENT IS THE WAY THEY DO MANAGED SERVICES…IT IS VERY WELL DONE. THEY HAVE A COMMON UNDERSTANDING…THERE IS A LOT OF TRANSPARENCY, SO THERE’S NO ISSUES THAT WE HAVE TO OVERCOME. WHAT WE HAVE IS A COST-EFFECTIVE YET SOLID MANAGED SERVICES ENVIRONMENT BASED ON OPERATIONAL EXCELLENCE AND QUALITY OF SERVICE.” RESULTS AND BENEFITS •  Accelerated time to revenue with an aggressive schedule. •  50% reduction in network outages •  On-time change requests going from 70% to 100% in 9 months •  Customer satisfaction dramatically improved •  Alcatel-Lucent was awarded the Vodafone award for best-inclass On-Time Change Management •  Allowed Vodafone to focus on it’s core business and customers •  Mitigated business risks and lower TCO using Alcatel-Lucent’s operations experts and support infrastructure. - Bassam Al-Ibrahim, Technology Vendor Manager, Vodafone Qatar 12 ANNUAL TECHNOLOGY SYMPOSIUM COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • CASE STUDY AIRTEL (AFRICA) AIRTEL (AFRICA) - CREATION OF A PAN AFRICAN IP/MPLS NETWORK FOR BOTH CORPORATE AND COMMERCIAL NEEDS “ALCATEL-LUCENT IS HELPING US TO FULLY UTILIZE THE ADVANTAGES OF IP/MPLS TECHNOLOGY TO ECONOMICALLY AND EFFECTIVELY HANDLE HIGH VOLUMES OF A VARIETY OF MOBILE BROADBAND DATA AND VIDEO SERVICES. THE NEW NETWORK IMPLEMENTATION NOT ONLY PROVIDES A SUBSTANTIALLY IMPROVED QUALITY OF SERVICE FOR OUR CURRENT CUSTOMERS, IT ALSO DOES AN EXCELLENT JOB OF PREPARING AIRTEL AFRICA FOR FUTURE INTERNATIONAL EXPANSION OPPORTUNITIES.” RESULTS AND BENEFITS •  Turnkey Design, Build, Deploy, and Operate for IP/MPLS Network serving 60 million customers in 17 countries across Africa •  Lower TCO with reduced cost operations and consolidation at our GNOC in India •  Faster time-to-market using a common platform for Layer 2 and Layer 3 service provisioning •  Improved quality of service with proven experience and operations methods •  Airtel is on the way to becoming a leader in Africa’s enterprise market Eben Albertyn Chief Technology Officer, Airtel 13 ANNUAL TECHNOLOGY SYMPOSIUM COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • CASE STUDIES •  17% TCO savings driven by energy savings, reduced footprint, IT costs savings, economies of new operations technologies, process and organization optimizations •  Elimination of business continuity risks •  New revenue-generating services available •  Solid partner for Service Quality Center creation •  Staff redeployment from legacy operations to transformation project •  Accelerated time to revenue with an aggressive schedule. •  50% reduction in network outages •  On-time change requests going from 70% to 100% in 9 months •  Customer satisfaction dramatically improved •  Alcatel-Lucent was awarded the Vodafone award for best-in-class On-Time Change Management •  Allowed Vodafone to focus on it’s core business and customers •  Mitigated business risks and lower TCO using Alcatel-Lucent’s operations experts and support infrastructure. 14 ANNUAL TECHNOLOGY SYMPOSIUM COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED. •  Turnkey Design, Build, Deploy, and Operate for IP/MPLS Network serving 60 million customers in 17 countries across Africa •  Lower TCO with reduced cost operations and consolidation at our GNOC in India •  Faster time-to-market using a common platform for Layer 2 and Layer 3 service provisioning •  Improved quality of service with proven experience and operations methods •  Airtel is on the way to becoming a leader in Africa’s enterprise market