Delivering Real-Time Business Value for Telecommunication

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This deck is a SoH Executive positioning document in 3 parts for Telecommunication

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Delivering Real-Time Business Value for Telecommunication

  1. 1. Delivering Real-Time Business Value for Telecommunications SAP Business Suite Powered by SAP HANA July 2013 Public
  2. 2. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 2Public The real-time opportunity Fierce competition, increasing customer expectations, and rapidly changing technology require communication service providers to excel operationally while innovating like never before.  Enhance financial process effectiveness  Optimize management of network assets  Improve customer experience through better insight
  3. 3. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 3Public Accelerate and optimize financial processes  Speed financial reconciliation  Minimize days sales outstanding  Manage working capital efficiently Improve asset management and operations  Enhance management of network asset deployment projects  Maximize asset uptime  Efficiently manage asset maintenance schedule Improve customer experience through better insight to action  Improve segmentation and targeting through better customer insight  Personalize customer interactions to drive better buying experience and enhance sales Going beyond telecommunications Innovate like never before
  4. 4. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 4Public SAP Business Suite powered by SAP HANA The next-generation business platform Real-time business In-memory Business transactions Digital connections Collaborative business CloudSocial Big DataMobile One platform bringing it all together Advanced analytics
  5. 5. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 5Public Industry value map (IVM) for telecommunications Going beyond telecommunications Market Insight and Service Innovation Customer Insight and Segmentation Continuous Service Innovation Service and Offer Definition Service Platform Network Asset Lifecycle Machine-to-Machine Mobile Commerce Customer Experience Management Sales Force Support Offer to Fulfill Charging and Billing for Telecommunications Customer Service and Support Operational Efficiencies Sales Channel Management Profitability and Cost Management Revenue Management People and Talent Core Human Resources and Payroll Talent Management Time and Attendance Management Workforce Planning and Analytics Finance Financial Performance Management Accounting and Financial Close Treasury and Financial Risk Management Collaborative Finance Operations Enterprise Risk and Compliance Management Procurement Supplier Discovery and Lifecycle Management Strategic Sourcing and Contracting Procurement and Order Collaboration Collaborative Invoice to Pay Commodity Management IT Management Application Lifecycle Management IT Infrastructure Management IT Portfolio and Project Management IT Service Management IT Strategy and Governance Technology Solutions Analytics Consumer ExperienceData Management Enterprise Mobility SAP HANA Platform Application Development and Integration
  6. 6. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 6Public Industry value map for telecommunications Going beyond telecommunications Market Insight and Service Innovation Customer Insight and Segmentation Continuous Service Innovation Service and Offer Definition Service Platform Network Asset Lifecycle Machine-to-Machine Mobile Commerce Customer Experience Management Sales Force Support Offer to Fulfill Charging and Billing for Telecommunications Customer Service and Support Operational Efficiencies Sales Channel Management Profitability and Cost Management Revenue Management People and Talent Core Human Resources and Payroll Talent Management Time and Attendance Management Workforce Planning and Analytics Finance Financial Performance Management Accounting and Financial Close Treasury and Financial Risk Management Collaborative Finance Operations Enterprise Risk and Compliance Management Procurement Supplier Discovery and Lifecycle Management Strategic Sourcing and Contracting Procurement and Order Collaboration Collaborative Invoice to Pay Commodity Management IT Management Application Lifecycle Management IT Infrastructure Management IT Portfolio and Project Management IT Service Management IT Strategy and Governance Technology Solutions Analytics Consumer ExperienceData Management Enterprise Mobility SAP HANA Platform Application Development and Integration Highest real-time business value for telecommunications 1 2 3 5 4 7 6
  7. 7. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 7Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Accounting and financial close Business value for entity close Reduce time to close the entities’ books by 10% Reduce Enhance cost of finance 1% compliance and accuracy With SAP Business Suite on SAP HANA  Long-running processes  Time-intensive reconciliations  Limited time for analysis  Inefficiencies due to manual processes and low automation  Missing financial excellence resulting in higher cost of equity at the capital markets  Difficulties in supporting parallel financial reporting standards on a global basis and in simulation of scenarios  More time for analysis, less overtime, and earlier publishing of financial results through faster period-end processes and better reconciliations  Increased efficiency through smarter reconciliations and reporting, reducing operating costs and improving stakeholder satisfaction  Real-time analytics down to the lowest level of detail – delivering quality at source, transparency, and process efficiencies
  8. 8. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 8Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Revenue management Business value for receivables management With SAP Business Suite on SAP HANA  More time spent preparing data; less time for analysis  Collaboration beyond finance team hindered by perceived system complexity  Limitations in analysis capabilities and dimensions because of reliance on finance aggregates  Large data volumes that lead to batch processing and reporting latency  Difficulty in identifying exceptions in thousands of pages of reports  Instant portfolio overview that lets managers focus team efforts on tactical wins  Ability to involve sales executives and other business partners to accelerate collections and dispute resolution  More accurate document-level calculation of DSO that allows you to identify root causes of changes to DSO  Real-time reporting on all accounts receivable data including credit, collections, and disputes  Anywhere, anytime access to key receivables status Increase cash collections and accelerate dispute resolution Optimize Gain working capital instant and up-to- date overview of receivables portfolio
  9. 9. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 9Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Offer to fulfill Business value for efficient sales through contact center  Data in different data sources prevents true 360-degree view of the customer  One central place for collecting all customer data from various sources and tools  Precision marketing to personalize every interaction with the customer Optimize return on marketing investments by 2% Improve offer win rate  Difficult to extract actionable information from the enterprise-wide customer data to maximize the chance of a sale  Minimal insight into buying preferences of customers in social data context  Real-time analysis of Big Data to better understand buying patterns  Real-time access and assembly of all data, including social/sales data With SAP Business Suite on SAP HANA
  10. 10. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 10Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Network asset lifecycle management Business value for maximized asset utilization and uptime With SAP Business Suite on SAP HANA Increase asset utilization and reduce unplanned asset downtime by 15% Maximize Improve asset uptime by 12% scheduling information on maintenance operations  Maintenance scheduling consumes a great deal of time  Manual and error-prone process of preselection of maintenance plans  Potential to miss necessary objects for maintenance calls  High number of maintenance plans that need to be scheduled frequently  Accelerated mass transactions  Instant analysis on top of transactions  Preselection of due plans, speeding up the process significantly  Real-time analytics on all data, including machine sensor information  Scheduling of all maintenance plans within a specific timeframe  Planning several times a day (instead of once a week) results in up-to-date scheduling information in maintenance operations  Faster response times lead to more- accurate maintenance scheduling
  11. 11. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 11Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Customer service and support Business value for contact management with interaction center With SAP Business Suite on SAP HANA Decrease average handling time by 4% Improve Reduce SLA compliance service cost by 3%  To successfully resolve customer issues, companies need to be able to quickly locate the right experts or resources within the organization, whether those experts work inside the contact center or elsewhere.  Managers and supervisors lack actionable reporting and visibility into the workload of their teams.  The high volume of customer records and interactions results in increased search times and greater difficulty locating specific customer records.  With the new SAP HANA-based agent inbox, users can more easily search for relevant experts – whether in their own team or elsewhere in the organization – in order to dispatch/escalate issues to the most suitable employee roles.  A new interactive work distribution dashboard provides supervisors with actionable insights into the workload of their teams and employees.  Searches in the interaction center, including account searches, interaction history, and the customer fact sheet, are significantly faster.
  12. 12. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 12Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Continuous service innovation Business value for portfolio and project management With SAP Business Suite on SAP HANA Increase user productivity by 1% Reduce Improve time for task confirmation by 1% Search for documents and project elements  Project members experience long waiting times when starting the project and task dashboards. This reduces user productivity when working on several projects and on tasks across projects.  Updates on multiple tasks are inefficient and time consuming as project team members confirm tasks one-by-one to reduce waiting times.  Searching for documents across projects takes a long time for large portfolios of projects.  The process of finding projects, tasks, and phases by responsible project members is slow.  Faster access to tasks and projects  Accelerated access to project, task, and checklist items dashboards  Enable project team members to confirm times, status, and dates and attach documents for several tasks at once.  Increased user productivity  Accelerated search for documents  Speed up finding projects or tasks by responsible project member
  13. 13. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 13Public Today KPI improvements are high-level estimates and will have to be validated for each customer situation. Customer insight and segmentation Business value for marketing With SAP Business Suite on SAP HANA Improve Profitability by 1% Optimize Increase return on marketing investments by 3% customer satisfaction by 2%  Missed market opportunities due to lack of visibility and inefficient processes  Data explosion, driven by new level of connectivity of consumers using mobile devices and social networks  Data is in disparate data sources, which prevents true 360-degree view of the customer  Agile marketing to respond faster to changing market dynamics and opportunities  New analytical, data mining functionalities on Big Data (social media, predictive)  Near real-time monitoring and reporting on marketing performance  One central place for collecting all customer data, leading to 360-degree view of customers in real time  Precision marketing to personalize every interaction with the customer
  14. 14. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 14Public Next step Business scenario recommendation and value discovery workshop  SAP offers a proven methodology and approach to discover the customer-specific business improvement areas and quantify value potential.  We suggest such a workshop with your line-of-business and IT experts.  As starting point, we recommend a performance and usage analysis of your current system.
  15. 15. © 2013 SAP AG or an SAP affiliate company. All rights reserved. Thank you
  16. 16. © 2013 SAP AG or an SAP affiliate company. All rights reserved. Appendix with detailed customer cases
  17. 17. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 17Public Reference telecommunications customer ($70B revenue) Summary validated scenarios (combined findings) Feasibility BusinessvalueMedHigh Med High Point of sale on SAP HANA ($38 million) Real-time offer management ($71 million) Fast financial close ($1 million) Business intelligence and reporting ($7 million) Infrastructure use and abuse monitoring ($10 million) Social network mapping ($23 million) Profitability analysis ($3 million) Phase ‒ deployment road map 1 Short term CRM: POS on SAP HANA: Enables real-time inventory updates and improved retail outlet performance. Increase sales; increase operating margin; reduce shrinkage; reduce fraudulent returns; reduce cost of ineffective promotions. SCM: Real-time offer management: Falling profitability margins per customer as well as general price point reduction due to new players on the market. Very high customer churn rate. Technical challenge is to gather the necessary information across multiple areas and calculate profitability on a given package offering. 2 Medium term FIN: Infrastructure monitoring: Significant bandwidth issues due to a number of abusive data plan users can significantly reduce customer experience for other customers. FIN: Fast financial close: Finance staff working 16- hour days to analyze finance data and prepare for month-end close. Now reduced to five days, with 25 times faster processing times. Iterations that took 2.5 hours now completed in 6 minutes. SAP HANA Platform: customer-specific SAP HANA products: SAP NetWeaver BW on SAP HANA, high-performance applications (HPAs), apps powered by SAP HANA SAP Business Suite on SAP HANA Scenario (business value) Legend SAP Business Suite on SAP HANA SAP HANA applications SAP HANA Platform SAP HANA use cases mapped to industry value map end-to-end solutions
  18. 18. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 18Public Reference telecommunications customer SAP HANA Platform -150 38 39 71 81 23 -200 -150 -100 -50 0 50 100 150 200 2013 Phase 1 Phase 2 Costs SoH Applications Platform $ In million USD More information: Stephen Hollier; Daniel Ptaszynski Annual revenue: US$70 billion Based on actual SAP customer engagements Annual benefits, SAP HANA Platform: US$23 million Annual benefits, applications powered by SAP HANA: US$81 million Annual benefits, SAP Business Suite on SAP HANA: US$39 million Estimated deployment costs Total transition cost: US$150 million (est.) SAP HANA Platform: Anything built on the platform that is customer-specific – new business processes and business models SAP HANA products: SAP NetWeaver BW powered by SAP HANA; high-performance apps (HPAs); applications – mapped to inventory value map (IVM) end-to-end (E2E) solutions Currently available functionality (SP0, 1, 2) – 23 scenarios mapped to IVM E2E solutions, and planned functionality (All of the E2E solutions on the IVM are in scope.) SAP HANA Platform SAP HANA products SAP Business Suite on SAP HANA
  19. 19. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 19Public Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation sessions and may not be completely validated. Real-time offer management Telecommunications Innovation scope SAP HANA platform (customer specific) End-to-end (E2E) solution Telecommunications – service and offer definition Value potential 5 Feasibility 5 Low High 1 5 Low High 1 5 Business context and goals  Currently, the company is experiencing significant competition in all areas of telephony/Internet - elated activities (fixed, mobile, Internet, cable). Profitability margins per customer are falling as well as general price point reduction due to new players on the market. Very high customer churn rate. In order to maintain current profitability, significant value add activities need to be provided throughout the customer value chain. This begins with the customer offer for new customers or for existing customers that are contemplating switching to other providers. Business challenges  To truly provide a profitable option for the company that at the same time provides a positive value proposition to the specific customer...and do it quickly, on the spot! The technical challenge is to gather the necessary information across multiple areas and calculate quickly profitability for the company on a given package offering. Process innovations  SAP HANA can be used for on-the-fly evaluation of unique customer-tailored packages that incorporate customer preferences and internal profitability potential, as well as exogenous elements such as competitor offerings/price points Contribution of SAP HANA  Speed, agility, and responsiveness to determine the "best" telecommunications package offering for the customer while ensuring a desired level of profitability for the firm. Value drivers/KPIs  Increased customer profitability; reduced customer churn; increased overall revenue
  20. 20. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 20Public Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation sessions and may not be completely validated. SAP CO-PA Accelerator report, drilldown Telecommunications Business context and goals  Understand customer profitability and overall customer analysis of revenue and operations to better understand profitability drivers and make strategic decisions concerning lifetime value of current/potential customers Business challenges  No clear view of profitability/true lifetime value of customer Process innovations  Visibility of profitability drivers and evaluation of lifetime customer value Contribution of SAP HANA  Speed and granularity Value drivers/KPIs  Improved profitability and finance efficiency Innovation scope SAP HANA products (HPAs, apps) End-to-end (E2E) solution Telecommunications – financial performance management Value potential 3 Feasibility 5 Low High 1 5 Low High 1 5
  21. 21. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 21Public Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation sessions and may not be completely validated. Business intelligence and reporting Telecommunications Business context and goals  Increased access and performance of business analytics. The more informed, faster, and granular reporting data provides business users with greater insights to make faster and more impactful decisions. Apart from this business value, significant TCO implications and IT reporting support can be realized. Business challenges  Slow and aggregated level reports that do not provide quick access to necessary data/insights. Business users consequently react slowly and decisions are not based on timely and complete information Process innovations  Faster and more informed decision making by business users that no longer have to significantly rely on IT reporting support to develop new reports Contribution of SAP HANA  Performance, granularity of data, and greater end-user accessibility of unique reporting and query needs Value drivers/KPIs  Improved IT reporting productivity; increased self-service usage by business end-users; increased reporting efficiency Innovation scope SAP HANA platform (customer specific) End-to-end (E2E) solution Telecommunications – analytics Value potential 3 Feasibility 5 Low High 1 5 Low High 1 5
  22. 22. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 22Public Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation sessions and may not be completely validated. Social network mapping Telecommunications Innovation scope SAP HANA platform (customer specific) End-to-end (E2E) solution Telecommunications - customer insight and segmentation Value potential 4 Feasibility 3 Low High 1 5 Low High 1 5 Business context and goals  With the explosion of social media and "constantly on" communication, firms that have the ability to make connections among sentiment analysis, customer behavior, geospatial information, and other unstructured information can gain lucrative marketing information. That marketing information can be subsequently used to make better offer management, cross-sell, and up-sell opportunities. Business challenges  Gathering, analyzing, and predicting customer behavior patterns with so much unstructured data creates a significant roadblock to effectively using all of this Big Data around us. Process innovations  Analysis and correlation of unstructured and structured data to help improve marketing effectiveness. Contribution of SAP HANA  Ability to analyze Big Data Value drivers/KPIs  Increased profitability; increased revenue through cross-selling/up-selling/tailored offerings
  23. 23. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 23Public Customer case: leading telecommunications provider in Poland Summary validated scenarios Feasibility Businessvalue Legend LowHigh Low High SAP Business Suite on SAP HANA SAP HANA applications SAP HANA Platform Predictive analytics (2 million PLN) Service and offer definition (21 million PLN) Network asset lifecycle (3 million PLN) Customer insight and segmentation (7 million PLN) Financial performance management (1 million PLN) Phase ‒ deployment road map Annual revenue: 14 billion PLN 1 Short term Service and offer definition: Increased customer profitability; reduced customer churn; increased overall revenue 2 Medium term Financial performance management: Improved profitability, improved finance efficiency Predictive analytics: Increased self-service usage by business end-users; increased reporting efficiency 3 Long term Network asset lifecycle: Reduced excessive/abusive use beyond contract stipulations; increased revenue opportunity Customer insight and segmentation: Increased profitability; increased revenue through cross-selling/up-selling/tailored offerings SAP HANA Platform: customer-specific SAP HANA products: SAP NetWeaver BW on SAP HANA, high-performance applications (HPAs), apps powered by SAP HANA SAP Business Suite on SAP HANA Scenario (business value) SAP HANA use cases mapped to industry value map end-to-end solutions
  24. 24. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 24Public Customer case: leading telecommunications provider in Poland SAP HANA Platform 21000 22000 32000 2000 2000 0 5000 10000 15000 20000 25000 30000 35000 40000 2013 Phase 1 Phase 2 Phase 3 Costs SoH Applications Platform PLN SAP HANA Platform: Anything built on the platform that is customer-specific – new business processes and business models SAP HANA products: SAP NetWeaver BW powered by SAP HANA; high-performance apps (HPAs); applications – mapped to inventory value map (IVM) end-to-end (E2E) solutions Currently available functionality (SP0, 1, 2) – 23 scenarios mapped to IVM E2E solutions, and planned functionality (all of the E2E solutions on the IVM are in scope) SAP HANA Platform SAP HANA products SAP Business Suite on SAP HANA SoH = SAP Business Suite on SAP HANA Based on actual SAP customer engagements Annual benefits, SAP HANA Platform Annual benefits, applications powered by SAP HANA: 2M PLN Annual benefits, SAP Business Suite on SAP HANA: 32M PLN Estimated deployment costs Total transition cost
  25. 25. © 2013 SAP AG or an SAP affiliate company. All rights reserved. 25Public Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation sessions and may not be completely validated. Innovation scope SAP HANA platform (customer specific) End-to-end (E2E) solution Telecommunications - network asset lifecycle Value potential 3 Feasibility 4 Low High 1 5 Low High 1 5 Infrastructure use and abuse monitoring Telecommunications Business context and goals  Significant bandwidth issues due to a number of abusive data plan users can significantly reduce customer experience for other customers. Ultimately, this also means lost potential revenue ‒ the abusers are not paying for their excessive use. Identifying these users is a first step toward reducing this abuse; execution of policy is the second stage. Potential revenue increase can be created by creating special plans to support such excessive data plan usage. Business challenges  Identification of the abusive customers and related customer data plan usage Process innovations  Identification of abusive behavior for data plans Contribution of SAP HANA  Ability to identify and review large amounts of data Value drivers/KPIs  Reduced excessive/abusive use beyond contract stipulations; increased revenue opportunity

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