Changing Business Models ARE Creating New Customer Value But …

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https://www.brighttalk.com/webcast/5567/120269

Attend this webinar to discover:

- The significance of real-time in support of complex business models involving wholesale business-to-business (B2B) and business-to-consumer (B2C) relationships
- How real-time delivers on the promises of personalization and customer-enabled flexibility
- Examples of how Over the Top (OTT) providers and network operators are working together to deliver greater customer value
- How the industry is using real-time service enablement, operational control and monetization functionality to enhance the customer’s digital experience
- Why real-time functionality is strategic to the future of the digital communications marketplace as 4G mobile and the Internet of Things (IoT) expands customer perceptions and expectations of mobile connectivity

Published in: Technology

Changing Business Models ARE Creating New Customer Value But …

  1. 1. Changing Business Models ARE Creating New Customer Value But … Does Monetizing New Services Mean Real-Time Systems? Karl Whitelock – Director Operations & Monetization (O&M) Global Strategy Stratecast | Frost & Sullivan Analyst Briefing Presentation 11:00 a.m. EDT – August 6, 2014
  2. 2. Page 2 © 2014 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Abstract Monetizing Services—charging customers, collecting revenues and compensating partners—containing content or cloud-based functions is not only complex, but magnifies the need for real-time rating & charging, self-care, and partner management. Stratecast will discuss how the combination of these functions enhances the business of life for both consumers and business customers, not just account for gigabytes of data consumed. This webinar will help to discover: • The significance of real-time in support of complex business models involving wholesale business-to-business (B2B) and business-to-consumer (B2C) relationships • How real-time delivers on the promises of personalization and customer-enabled flexibility • Through implemented CSP examples, how Over the Top (OTT) providers and network operators are working together to deliver greater customer value • How some CSPs are using real-time service enablement, operational control and monetization functionality to enhance the customer’s digital experience • Why real-time functionality is strategic to the future of the digital communications marketplace as 4G mobile and the Internet of Things (IoT) expands customer perceptions and expectations of mobile connectivity.
  3. 3. Page 3 © 2014 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Today’s Presenter One of the original founders of Stratecast—focused on the business strategies of the communications industry—Mr. Whitelock established the Operations & Monetization (OSS/BSS) practice. He has authored over 190 publications concerning problems relative to the OSS/BSS marketplace. He covers the BSS functions including mediation, rating & charging, core billing, policy management, interconnect & settlements, content partner management, subscriber data management. Also the monetization functions for Virtual Networks Mr. Whitelock helped to establish the Enterprise Business Enablement concept for meeting the needs of Cross-Industry 2.0 Virtual Services. Karl Whitelock – Director Operations & Monetization Global Strategy Practice Stratecast | Frost & Sullivan
  4. 4. Page 4 © 2014 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Agenda Business Market Drivers and the Strategy of Future Change Delivering on Promises (Implemented Examples) Changing Business Models and Monetizing Business Value
  5. 5. Page 5 © 2014 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Agenda Business Market Drivers and the Strategy of Future Change Delivering on Promises (Implemented Examples) Changing Business Models and Monetizing Business Value
  6. 6. Page 6 © 2014 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Communications Industry – Business Model of Yesterday (and Today) While the network remains important today, the key is using technology and the network to provide customers a positive experience. This means doing business differently than in the past. It means using customer insight effectively in a new business paradigm. Our Connected World Fixed-Line MobileIP Voice MMS / SMS 2.5G Data (GPRS/EDGE) 3 G Data (UMTS) 3.5G Data (HSPA) 4G Data (LTE) Mobile Routers Switches Databases IP Voice Broadband DSL Cable Fixed-Line Network Technology Source: TAM, TMF GB929 Fulfillment Assurance Billing Customer Management Service Management Resource Management Supplier/Partner Management Enterprise Management Product Management Market/Sales Management OSS / BSS • Consumers • Small Medium Business • Enterprise • Fixed-line Voice • Mobile • Broadband Data Focus on Customers Focus on Technology
  7. 7. Page 7 © 2014 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Market Changes Have Created Today’s New Business Reality Convergence of these drivers and other market changes are creating a completely new business landscape, one that requires a reexamination of the role that the monetization and customer insight processes play today and for which they will play in the future.
  8. 8. Page 8 © 2014 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. New Business Landscape for Enterprise, Business Customers and Consumers Today’s New Business Landscape People AppsDevices Machines Cloud CSPs, Partners, Suppliers and Customers Will Thrive in a Tight Ecosystem Where B2B2C and B2B2B Business Models Collectively Deliver Value.
  9. 9. Page 9 © 2014 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. New Business Models – Real-Time Wholesale and Retail Business Accountability Wholesale B2BContent Partner1 Retail B2Cn Content Partnern Cloud Services Provider1 ● ● ● Cloud Services Providern Enterprise (Service Consumption) SM Business Retail B2Bn Wholesale1 B2Bn Enterprise (Mobile Solutions)Wholesale2 B2Bn • CSP and Content Partners (B2Bn) • CSP and Cloud Services Providers (B2Bn) • CSP to each of its millions of end users (B2Cn) • CSP and its SM Business Customers (B2Bn) • CSP and its Enterprise Customers (B2Bn) • CSP and its Enterprise Mobile Customers (B2Bn) Network Access and Partner Relationships to be Managed: Physical Network (RAN 3G, 4G, 4G+) CSP Fixed Broadband Network User1 User2 User3 User4 Consumers
  10. 10. Page 10 © 2014 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Agenda Business Market Drivers and the Strategy of Future Change Delivering on Promises (Implemented Examples) Changing Business Models and Monetizing Business Value
  11. 11. Page 11 © 2014 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. AT&T New Business Model Examples Sponsored Data (Launched January 2014) • Healthcare (UnitedHealth) • Mobile Marketing (Aquto Corp) • Kony (Apps for Business) • Hershey (Retail mobile app, powered by Kony) Amazon Whispernet – Kindle (with AT&T, start 2009) Mobile Share Value Plan - Tiered data plan with free voice and text (present)
  12. 12. Page 12 © 2014 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. SingTel – New Business Model Example SingTel DataRoam Saver Plan and SingTel Network Lock (new) • SGN $15, $20 and $30 per day depending on the countries visited. − SE Asia = $15/day − Greater Asia & ME = $20/day − NA and Europe = $30/day • Remember these roaming plans are for unlimited data access
  13. 13. Page 13 © 2014 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. T-Mobile – New Business Model Stop burning data when you stream music No overages, No data caps, Unlimited streaming
  14. 14. Page 14 © 2014 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. 3 Austria – New Business Model No cost for music streaming. Spotify on Three Austria does not count against a data usage plan for streaming music, the first six months. After this period, Spotify is a flat-rate monthly add on service to any data usage plan. Again, all Spotify data usage does not count.
  15. 15. Page 15 © 2014 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Sprint – New Business Model Sprint and Pogoplug for cloud data storage All Sprint Smartphone users receive 5 GB of cloud storage free or they can upgrade to unlimited storage for $5 per month. Unlimited cloud storage to go with the Sprint suite of unlimited talk, text and data service offerings.
  16. 16. Page 16 © 2014 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. T-Mobile – New Business Model (2)
  17. 17. Page 17 © 2014 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Verizon – New Business Model Example
  18. 18. Page 18 © 2014 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. 2014 Global CSP Survey About Value-Based Service Plans Global survey of 177 operators from all geographies Value-based data plans charge customers for the value of the service provided and not just speed. Source: Allot Communications 2014 Global CSP Survey 85% of CSPs globally are leveraging OTT apps to attract customers and increase ARPU85% of CSPs globally are leveraging OTT apps to attract customers and increase ARPU
  19. 19. Page 19 © 2014 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Agenda Business Market Drivers and the Strategy of Future Change Delivering on Promises (Implemented Examples) Changing Business Models and Monetizing Business Value
  20. 20. Page 20 © 2014 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Communications Services are at the Center of the Transformation Strategy for All Other Industries Financial Services Retail Manufacturing Public Services Government Publishing Distance Learning Healthcare Geriatric Care Agriculture Transportation and Logistics Emergency Services Auto Insurance Cybersecurity Utilities Global Communications Marketplace The converging communications marketplace is the most critical enabler of the evolution plans these industries have as they work to provide a better experience for their customers. At the center lies the data collection and monetization functions. The converging communications marketplace is the most critical enabler of the evolution plans these industries have as they work to provide a better experience for their customers. At the center lies the data collection and monetization functions.
  21. 21. Page 21 © 2014 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Enterprises Want Configurable Offerings and Pricing Plans Subscribed Pre-Packaged Charges – Collected set of services for a subscribed fee. Simple Charges – Transactions such as one-time fees or recurring fees tied to a seat license or time-based subscription. Usage-Based Charges – Charges based on a quantity of consumption, such as volume of data stored, number of times data is accessed, number or complexity of reports, time of day information is obtained, or hours an application was used. Service Packaging and Pricing Without Restrictions: - Usage between services or geo locations, usage of security with applications or business management or operations management, usage combinations of … - Definable pricing terms and discounts by agreed package with adds or changes anytime - Partner settlements as services are consumed - Complex pricing based on combinations of any measurable unit from any industry (Example) Monetization of Managed (Cloud) Services by Various Parameters: - Unified Communications as a Service (UCaaS), Managed Security as a Service (SECaaS), Disaster Recovery as a Service (DRaaS), Data Backup and Storage as a Service (DBaaS), Software Applications as a Service (SaaS), Network Connectivity as a Service (NCaaS), Business Management as a Service (BMaaS), Operations Management as a Service (OMaaS), … Pricing Based On: - Cross application usage and discounting (buy 3 get one free for a set period) - Cross service pricing (UCaaS then discount DRaaS or discount two by x%) - Volume pricing and discounts based on commitments and customer longevity (loyalty) - Customer service configuration with hybrid cloud deployments - Professional services or usage for a fee , but if not then a rebate - Multiple other factors and combinations
  22. 22. Page 22 © 2014 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Evolution from Traditional to a Virtual Network and Operations Business Model • Servers, Routers • Switches • Transport Nodes Traditional Network Elements: Mobile IP Fixed-Line Source: TAM, TMF GB929 Fulfillment Assurance Billing Customer Management Service Management Resource Management Supplier/Partner Management Enterprise Management Product Management Market/Sales Management OSS / BSS Traditional Network and Operations Virtualized Network and Operations Legacy OSS / BSS Virtual Computing Virtual Storage Virtual Network Virtualization Layer Computing Hardware Storage Hardware Network Hardware Physical Hardware Layer Business Apps (Enterprise Apps, UC, Managed Security, Backup & Recovery) Monetization and Management Support of Virtual ServicesFulfillment Assurance Billing Customer Management Service Management Resource Management Supplier/Partner Management Enterprise Management Product Management Market/Sales Management Network Apps (Security, Geo Location, Identity Management, Traffic Engineering) Virtualized Control Layer • Common Command and Control • Location Definition, Policy Control (Enforcement), and Routing Orchestration
  23. 23. Page 23 © 2014 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Customers (Business or Consumer) Utilities (Water) Utilities (Electric) Utilities (Gas) CSP (as a VSO) Virtual Services Operators (VSOs) (CSP or Others) Suppliers Saas Supplier #3 SaaS Supplier #2 SaaS Supplier #1 Concept-to-Cash: Partner Orchestration, Fulfillment, Monetization and Management The CSP is an Enabler of New Virtual Services and Manages the Business Enablement Platform (Broadband Connectivity Always Assumed) Others … Healthcare Supplier #1 Healthcare Supplier #2 Healthcare Provider CSP VSO2 . . . VSO3 VSOnand/or Cross Industry 2.0 Business Collaboration Model Data Storage Security Web Enablement
  24. 24. Page 24 © 2014 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. New Business Models – Real-Time Wholesale and Retail Business Accountability
  25. 25. Page 25 © 2014 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Next Steps Develop Your Visionary and Innovative Skills Growth Partnership Service Share your growth thought leadership and ideas or join our GIL Global Community Join our GIL Community Newsletter Keep abreast of innovative growth opportunities Phone: 1-877-GOFROST (463-7678) Email: myfrost@frost.com
  26. 26. Page 26 © 2014 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. https://twitter.com/FS_ITVision Follow Frost & Sullivan on Facebook, LinkedIn, SlideShare, and Twitter http://www.facebook.com/FrostandSullivan https://www.linkedin.com/groups/Future-Growth-Opportunities-in-ICT-4876870 http://www.slideshare.net/FrostandSullivan
  27. 27. Page 27 © 2014 Stratecast | Frost & Sullivan, all rights reserved. Proprietary and Confidential to Stratecast. Contact Details Karl M. Whitelock Director Global Operations & Monetization Strategy Stratecast | Frost & Sullivan kwhitelock@stratecast.com

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