Turn Five Communications Industry Challenges into Real Competitive Opportunities


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  • First slide is OSI stack?  – layers set standards from lowest physical network all the way up to the apps you use.Carriers used to be organized by the lower levels (e.g. wireless, wireline), type of network (e.g. ISP) or geography but those distinctions are going away with industry consolidationConvergence is about being able to use the apps regardless of which of the lower level protocols are being used.The focus is on the app and tailoring to the individual and user experience (e.g. long tail). A whole new term “OTT” characterizes companies like Google who provide content over the carrier networks.Obviously, these companies want Net Neutrality so carriers do not have power over them.Carriers do not want net neutrality so they can offer differentiated serviceIs differentiation still just driven by bandwidth?
  • Over last year, the industry performance has mostly approximated the overall market and in some cases outperformed.Service providers are very capital intensive and much capital spending driven by 4G, FTTx, etc. to get to universal broadband deploymentThree-Legged Stool – CapEx, Revenue, Op ExCap Ex arguably factor leading to consolidation (e.g. AT&T acquiring more network capacity with T-Mobile rather than building out)ARPU is a much tracked metric – declining for many services such as voice while the hunger for data and more expensive smartphones and data plans are increasingWith increasing CapEx requirements, uncertain monetization trends and ARPU risks, cost cutting and operational efficiencies are key
  • It all starts with having a competitive product that you can get to market faster, cheaper and better.In a rush, key things get overlook, corners are cut and shortcuts are takenPartner management is more important than ever given that many new products involve multiple vendors (e.g. Media companies for content, Verizon/AT&T ISIS and Sprint/Google Mobile Wallet retail payments with banks on cell bills, M2M sensor mobile solutions). Revenue assurance here can be critical.The old long cycle waterfall methodology has to change both within IT development as well as culturally with the BusinessHaving a disciplined methodology and tools to manage product launches will enable a quality launch without all the errorsPerficient’s Solution Approaches:Program leadership: re-baselining programs, validating business cases and program and vendor managementChange management: governance/accountabilities, business readiness and trainingProcess definition/improvement around planning, communication, status, methodology and defect trackingTangible intellectual property toolkits for business cases, operational readiness dashboards, Quick Start RulebooksTM, architectural roadmaps, project planning templates, etc.Example case study - Program managed a major product launch of mobile service offerings for one of the largest cable broadband providers in the US, addressing previous slipped timelines, inefficient processes and untracked defects to deliver successfully 
  • The portal can be the customer’s primary means into the organization for information, support, sales, self-service, etc.What is different than many other industries is the portal can also be a mechanism to deliver service (e.g. streaming video, online messaging)It is with this content that competitors are taking share away from carriers that have been slower to build differentiation around.In order to build this differentiation, the foundation has to be sound with flexible and easy-to-change web architecturesThe introduction of mobility, VoIP, etc. introduces new protocols and technologies that are aren’t yet ubiquitous (e.g. SIP, Android SDK) Could be talking about massive amounts of content that needs to be managed (i.e. not just web pages)Perficient’s Solution Approaches:Web architecture modernization: increase web channel conversion rate, increase business agility, reduce time-to-market Integrate CSP services into the customer portal for competitive differentiationSelf-care portals that integrate e-commerce with customer experienceWeb content management that enables near-real-time changes to contentExample case study - Re-architected an aging, fragmented and inflexible web infrastructure for one of the largest cellular providers in the US to improve new product introduction, e-Commerce web channel revenue, self-care portal customer experience, and near real-time web content management automation.
  • SOA mostly addresses the Process and operational expense aspects, which also enable getting new revenue fasterThe “traditional” approach to delivering service has been with COTS OE/OM/Prov/Inventory packages that are often silo’ed by product vertical (e.g. wireless)Convergence and the blurriness of product barriers requires agility that many of these COTS packages don’t haveThe approach with SOA is instead of point solutions, create an abstracted way of accessing information and executing process without having to understand all the underlying system and data specifics.Because SOA is based on web services, it also allows this integration to extend across partners, 3rd party developers, etc. which as discussed previously is intricate to new service offerings.TMF eTOM is a frequently adopted standard for process and SID for data.Many implementation of SOA using these approaches are supplanting previous COTS silosBPM takes SOA to the next level by allowing the business to define the process by orchestrating these services at a high levelPerficient’s Solution Approaches:Streamlining “quote to cash” with web service-based integration between BSS, OSS and partnersEvolutionary and iterative SOA for complex product catalogs as an alternative to MDMExtension of existing SOA infrastructures with effective business process managementExample case study - guided a leading wireless provider through complete SOA adoption with end-to–end LNP, Order management, Billing, Supply Chain and MDM solutions, meeting software ROI and reducing total cost of ownership
  • Data is at the heart of operational efficiency – without good data, you have “garbage in, garbage out”Data is also what allows for business intelligence into the customer, their behavior, and possible churn or new opportunitiesRevenue and operational assurance is really just a unique form of business intelligence which tells you whether there are holes in the operational efficiency and customer services that are leading to leaking revenues or excessive costs.When service providers acquire other service providers, they are inheriting years of legacy data that has to be efficiently integrated into their systemsAt the end, data is an indicator to how you are PerformingLike for portals, unless you have a strong foundation with ETL, data warehouses, etc, you will not have the agility to provide effective business intelligenceData virtualization is a new solution approach that is similar to SOA in providing an abstracted view to data. It’s focus is fast, real-time views that bring data together for immediate transaction or decision-making support.Perficient’s Solution Approaches:Reusable system and data inventory tools, assessments and roadmaps to facilitate consolidationReverse engineering overly complex ETL/data warehouse infrastructures to provide full traceability of how flows through the organization and streamline for efficiency and qualityData virtualization/federation solutions that allow consolidated views of data quickly without underlying infrastructure changesEffective business intelligence and enterprise performance management with industry information modelsRevenue assurance implementations with immediate ROI through recovering leaking revenues and costsExample case study – completely reverse engineered the existing ETL infrastructure and reporting for a major wireless carrier that created a detailed understanding of the end-to-end flows of data from Billing all the way through Data Management to support both ongoing application development and operations.
  • CRM was the hot topic 5-10 years ago when everyone was scrambling to implement systems that providing insight and support for Care.Marketing campaign management has traditionally been a distinct area.What PRM does is bridge CRM with Marketing in real-time to prevent customers from churning.Inbound vs. outbound-focusedDefining what retention is. What customer is. What to do with bandwidth hogs?This is critical because the market is saturated and service providers desperately need to hold onto their customers.Have the right information and promotions available right when the customer contacts.Perficient’s Solution Approaches:Real-Time Interactive Inbound Customer Promotion Management spanning engagement channelsCustomer Analytics that predict customer behavior and respond to it through both inbound and outbound channelsCapability roadmaps that balance cost/vendor/business convenience with ROI
  • Turn Five Communications Industry Challenges into Real Competitive Opportunities

    1. 1. Perficient Perspectives<br />Turn Five Communications Industry Challenges<br />into Real Competitive Opportunities<br />
    2. 2. Our Speaker<br />Randy Shillman<br />Director, Perficient’s Communications Practice<br />Randy has over 17 years of experience in the communications industry.  He began his career with Andersen Consulting (Accenture).  He later joined Objective Systems where he was instrumental in establishing a Europe, MIddle East and Africa (EMEA) office to deliver communications OSS and NMS solutions to service providers.  Randy joined BoldTech Systems (which was later acquired by Perficient) in 1998.  At BoldTech, Randy was responsible for growing its Revenue Assurance practice from inception to a multimillion dollar service offering in just over a year, and later assumed practice management responsibilities for the entire communications industry, which comprised over half of BoldTech's annual revenues.  In 2007, Randy assumed the role of VP of Operations for the AmberWatch Foundation, a 501(c)(3) nonprofit dedicated to protecting children from predators.  He returned to Perficient in 2009 where he now is a director of its Communications Competency Center(C3).<br />2<br />
    3. 3. Layer<br />Network Protocols<br />Communications service providers (CSPs) have traditionally been strongest down in the network…<br />Application<br />HTTP, SIP, SMTP <br />…and Net Neutrality regulation is making it harder for CSPs to provide differentiated service to these OTTs<br />…while at the same time these network technologies are converging<br />…while at the same time the CSPs themselves are converging (e.g. CenturyLink/Qwest, AT&T/T-Mobile, Windstream/PAETEC)<br />Presentation<br />SSL, MPEG <br />Session<br />Sockets, RPC <br />Transport<br />TCP, UDP <br />Network<br />IP <br />Unfortunately, revenue growth is happening with rich content, apps and cloud services from “Over the Top” (OTT) providers like Apple and Google…. <br />Datalink<br />The Communications Industry Dilemma In a Nutshell<br />Ethernet <br />WiFi<br />PPP<br />Physical<br />DSL<br />CDMA<br />POTS<br />
    4. 4. And Still, The Industry is Stronger Than Many Realize…<br />4<br />Key Industry Statistics (Domestic) 1:<br /><ul><li>ROE = 15.9%
    5. 5. Div. Yield % = 5.84% (AT&T and Verizon are highest yielding on Dow)
    6. 6. Net Profit Margin = 10.4% </li></ul>Other Key Industry Statistics :<br /><ul><li>The third largest in terms of capital spending, after Petroleum and Automotive2
    7. 7. CapEx expected to increase at compound rate of 2.4% to 2015 3
    8. 8. The Third best performer over 1 year on S&P 5004</li></ul>Comparison of iShares Dow Jones US Telecom (blue) to DJIA (red)1<br />Sources:<br />1 Yahoo! Finance<br />2 http://pages.stern.nyu.edu<br />3 http://economictimes.indiatimes.com<br />4 Money Magazine, August 2011<br />
    9. 9. Competitive Products Require Efficient “Quote to Cash” Process & Data<br />5<br />Ordering<br />Provisioning<br />Activation<br />Order Management<br />Order Item<br />Service<br />Order<br />Order<br />Entry<br />Designer<br />Customer<br />Order Item<br />Designer<br />People – Accurate Introduction, configuration & ordering of complex products through content-driven portals and an integration-oriented approach<br />Order Item<br />Engineer<br />Order Item<br />Order<br />Decomposition<br />App<br />Engineer<br />Engineer<br />CSR<br />Compete Through<br />Innovation<br />Order Item<br />App<br />App<br />Order Item<br />Order Management Organization<br />Process – Improved order management and provisioning through integration, service-oriented architectures and business process management<br />App<br />Network<br />Service Design Organization<br />Service Delivery Organization<br />Survive Through<br />Operational Efficiency<br />Systems/Data – Accurate representation of product, network, service and billing data through network audits, inventory management and revenue assurance.<br />Retain Through Intelligence & Assurance<br />
    10. 10. Opportunity #1: Exploit Convergence With Accelerated New Product Launches<br />The Trend:<br /><ul><li>Network convergence - any app ,any device, any place, any time.
    11. 11. Products not just about usage or bandwidth anymore</li></ul>The Business Problem:<br /><ul><li>In the rush to get products out faster than the competition…
    12. 12. Program dependencies get missed and timelines slip
    13. 13. Defect management takes a back seat, impacting quality
    14. 14. Ineffective partner management
    15. 15. Inefficient process and change management</li></ul>Perficient’s Solution Approaches:<br /><ul><li>Program and Vendor Leadership
    16. 16. Change management and Governance
    17. 17. Process Re-Engineering and Defect Management
    18. 18. Quick Start RulebooksTM and Readiness Dashboards</li></ul>6<br />
    19. 19. The Trend:<br /><ul><li>OTTs are becoming the content providers
    20. 20. CSPs are avoiding being “dumb pipes” with content-driven customer portals, both traditional and as mobile apps.</li></ul>The Business Problem:<br /><ul><li>Fragmented and inflexible web infrastructures – lack business agility
    21. 21. New protocols/technologies (e.g. XMPP, Jingle, SIP) are still arcane
    22. 22. Uncertain product cannibalization impacts</li></ul>7<br />Opportunity #2: Focus On Rich Content Delivery with Content-Driven Portals<br />Perficient’s Solution Approaches:<br /><ul><li>Web Architecture Modernization
    23. 23. CSP Content-driven Customer Portals
    24. 24. Self-Care Portals
    25. 25. Near-Real-Time Web content management</li></li></ul><li>Opportunity #3: Streamline “Quote to Cash” with SOA/BPM Instead of COTS Silos<br />The Trend:<br /><ul><li>Web services in the “Cloud” is enabling collaborative services
    26. 26. Carriers are opting for SOA vs. COTS for operational efficiency
    27. 27. SOA becoming an enabler for BPM rather than just IT cost control</li></ul>The Business Problem:<br /><ul><li>Silo’ed COTS OSS with limited integration ability and in the Cloud
    28. 28. Entrenched manual swivel-chair ordering
    29. 29. Lack of common information models exacerbates order fallout</li></ul>Perficient’s Solution Approaches:<br /><ul><li>Web Service Integration with BSS/OSS and Partners
    30. 30. SOA for Complex Product Catalogs
    31. 31. Extending SOA for Business Process Management</li></ul>8<br />
    32. 32. Opportunity #4: Address M&A Data Woes with Effective Data Management<br />The Trend:<br /><ul><li>M&A (e.g. CenturyLink/Qwest, AT&T/T-Mobile) is resulting in disparate BSS/OSS with disparate data
    33. 33. Exponential growth of data volume generated by customers</li></ul>The Business Problem:<br /><ul><li>Brittle ETL results in slow performance and operational deployment and troubleshooting inefficiencies.
    34. 34. Inability to trace data through the infrastructure results in long delays in accessing data and stale reporting
    35. 35. Inconsistent data architecture and data governance lead to inflexibility and data quality issues</li></ul>Perficient’s Solution Approaches:<br /><ul><li>Data Inventory Tools, Assessments and Roadmaps
    36. 36. ETL/Data Warehouse Infrastructure Reverse Engineering
    37. 37. Data Virtualization/Federation Solutions
    38. 38. Business intelligence and Enterprise Performance Management
    39. 39. Revenue Assurance</li></ul>9<br />
    40. 40. Opportunity #5: Improve Customer Retention with Real-time PRM <br />The Trend:<br /><ul><li>Communications markets are mostly saturated
    41. 41. ARPU is often flat (e.g. declining voice revenues)
    42. 42. Customer retention through inbound promotions</li></ul>The Business Problem:<br /><ul><li>Defining retention (and customers) in non-contract models
    43. 43. What to do with the bandwidth hogs?
    44. 44. Lack of 360 degree views of customer
    45. 45. Too much focus on outbound instead of inbound marketing
    46. 46. Poor customer service on network issues</li></ul>Perficient’s Solution Approaches:<br /><ul><li>Real-Time Inbound Customer Promotion Management
    47. 47. Predictive Customer Analytics
    48. 48. Capability roadmaps</li></ul>10<br />
    49. 49. 11<br /><ul><li>Serving 35+ communications clients since 1997
    50. 50. Communications domain subject matter specialists each with an average of over 15 years of cable and telecommunication industry experience
    51. 51. Reusable industry-specific intellectual property
    52. 52. Assessments/roadmaps leading to multimillion-dollar revenue and expense improvements
    53. 53. Expertise across full lifecycle (Design, Develop, Test, Implement, Operate)
    54. 54. Integration with many legacy and leading modern OSS/BSS systems
    55. 55. Deep experience with market leading technologies– IBM, Oracle, TIBCO, Microsoft
    56. 56. Custom Tailored Global Delivery Solutions</li></li></ul><li>About Perficient<br />Perficient is a leading information technology consulting firm serving clients throughout North America. <br />We help clients implement business-driven technology solutions that integrate business processes, improve worker productivity, increase customer loyalty and create a more agile enterprise to better respond to new business opportunities. <br />
    57. 57. PRFT Profile<br /><ul><li>Founded in 1997
    58. 58. Public, NASDAQ: PRFT
    59. 59. 2010 Revenue of $215 million
    60. 60. 20 major market locations throughout North America
    61. 61. Atlanta, Austin, Charlotte, Chicago, Cincinnati, Cleveland, Columbus, Dallas, Denver, Detroit, Fairfax, Houston, Indianapolis, Minneapolis, New Orleans, Philadelphia, San Francisco, San Jose, St. Louis and Toronto
    62. 62. 1,500+ colleagues
    63. 63. Dedicated solution practices
    64. 64. 500+ enterpriseclients (2010) and 85% repeat business rate
    65. 65. Alliance partnerships with major technology vendors
    66. 66. Multiple vendor/industry technology and growth awards</li></li></ul><li>Perficient brings deep solutions expertise and offers a complete set of flexible services to help clients implement business-driven IT solutions<br />Our Solutions Expertise & Services<br />Business-Driven Solutions<br />Enterprise Portals<br />SOA and Business Process Management<br />Business Intelligence<br />User-Centered Custom Applications<br />CRM Solutions<br />Enterprise Performance Management<br />Customer Self-Service<br />eCommerce & Product Information Management<br />Enterprise Content Management<br />Industry-Specific Solutions<br />Mobile Technology<br />Security Assessments<br />14<br />Perficient Services<br /><ul><li>End-to-End Solution Delivery
    67. 67. IT Strategic Consulting
    68. 68. IT Architecture Planning
    69. 69. Business Process & Workflow Consulting
    70. 70. Usability and UI Consulting
    71. 71. Custom Application Development
    72. 72. Offshore Development
    73. 73. Package Selection, Implementation and Integration
    74. 74. Architecture & Application Migrations
    75. 75. Education</li></li></ul><li>Follow Perficient Online<br />Perficient.com/SocialMedia<br />Daily unique content about content management, user experience, portals and other enterprise information technology solutions across a variety of industries.<br />Twitter.com/Perficient<br />Facebook.com/Perficient<br />
    76. 76. Thank You!<br />