IBM Information Agenda for Communication Service Providers

Tony HulmeAdvocate for IBM Information On DemandConsulting IT Specialist

Common Landscape in Telecom EnvironmentsCreates Serious Information Challenges

1AIIM 2008 Survey2Accenture 2007 Managers Survey

Business Units

Internet & Data

Core Systems

Channels

Direct

Call Center

Web

Reseller

DB App

DB

App

Core Systems

DW

DBCRM

App

Fixed

MobileMobile

DB

CRM

App

AppDB

DW

Core SystemsCRM DB App

Media& Content

Directory

EDW

PartnersDB

CRM AppDB

App DW

DBCore

Systems

Data Systems

Core Systems

ERP

Customer

DB App

DB

DB

AppCRM

ODS

42% of managers use wrong information

at least once a week2

59% of managers miss

informationthey should have used

2

52% of users don’t have confidence in their information

1

• Using huge volumes of information to segment customers effectively

• Identify most profitable customers, products, services, & regions.

• Understanding and monitoring credit risk of potential customers - balancing risk vs. potential revenue

• Managing and tracking late payments, missed payments, and charge-offs

• Tracking engineering and construction jobs

• Difficulty tracking network performance, customer activation, etc.

• Complying with regulatory requirements

• Predicting revenue from new services and products

• Accurate reporting of key metrics, such as ARPU (average revenue per user)

Telecom Information Challenges

1. Do we know what data we have?

2. Do we have a business glossary in place?

3. Do we know how clean our data is – data quality dashboards?

4. Do we have data stewardship in place?

5. Do we have a single view of key business entities: customer & product?

6. Do we centrally manage all our unstructured content?

7. Do people spend time looking for information – do they trust what they find?

8. Do we have a data quality firewall in place?

Business leaders frequently make major decisions with information they don’t trust

1 in 3

Business leaders don’t have sufficient information from across their organizations to do their jobs

1 in 2

Organizations don’t share critical information with partners and suppliers for mutual benefit

3 in 5

Some Positioning Questions …

Source: IBM Institute for Business Value - April 2009

Information Maturity ModelB

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Information Maturity

Information: Integration of internal and external sources

Integration: Virtualized information servicesApplications: Dynamic application assemblyInfrastructure: Dynamic, autonomic

Collaborative and composite applicationsOptimized business processesOptimized business performance Enablement of strategic business innovationStrategic insight through extreme analytics

Information: Full integration of structured and unstructuredIntegration: Information available as a serviceApplications: Process integration via servicesInfrastructure: Resilient SOA; technology neutral

Contextual role-based information commonplaceEmbedded information within processesInformation-enabled innovationSingle version of truth across applicationsForesight through predictive analytics

Information: Data stewardship, structured & some unstructuredIntegration: Integration of silos; virtualization of informationApplications: Services-basedInfrastructure: Component/emerging SOA, platform specific

Some contextual, role-based informationEnhanced levels of automationConsistent management informationSingle version of truth for reportingInsight through real-time analytics

Information: Structured data; organizedIntegration: Some integration; silos still remainApplications: Component-based applicationsInfrastructure: Layered Architecture, platform specific

Basic query and analyticsSome automationManagement by spreadsheet Limited enterprise viewMultiple versions of truthSight of operational informationReduced TCO and admin

Information: Structured data, unorganizedIntegration: Disjointed; siloed, Applications: Stand aloneInfrastructure: Monolithic, platform specific

Basic reporting Manual, ad hocInformation overloadNo enterprise view Untrusted informationHindsight basedHigh TCO and admin

Information to Enable

Innovation

Information as a Strategic

Asset

Information as a Differentiator

Information to Manage the Business

Data to Run the Business

Transformational Questions

1. Do we treat information as a strategic asset with the same focus as cash or human resources?

2. Do we know what kind of insight is critical for our future growth?

3. Do we have a clear and decisive plan to instrument, connect and invest in the things we must to gather that insight?

4. What must I change about my leadership, organization, and governance approach to drive the maximum benefits from this new kind of intelligence?

How does the Information Agenda address these questions?

Increasing Focus on Business OptimizationShift from Application Agenda to Information Agenda

7

Inve

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ent

1985 1995 2005 2015

Business Automation growth fueled byERP, CRM, SCM adoption..

2010

Business Optimization

growth fueled by Information

Agenda adoption

InformationAgenda

ApplicationAgenda

Call Centre Operations

Order Management

BillingOperations Automation

Contextual Marketing

Optimization

TargetedServices

Real-timePredictive Analytics

For CSPs to find the next market differentiator or revenue opportunity, they must invest in more sophisticated means

of forecasting consumer behavior.

Relative Profitability

Network Management

Information Agenda Unlocking the Business Value of Information for Competitive Advantage

Customer & Product Profitability Real-Time

Predictive Analytics

ContextMarketing Consistent Multi-

Channel Experience

Predictive Churn Management

Business Optimization

End-to-EndCapabilities

Plan, understand and optimize business performance

Establish and maintain an accurate,

trusted, single version of the truth

Use information as part of business processesManage information

over its lifetime

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Ind

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Entry PointsEntry Points

Entry Points

Access & DeliveryAccess & Delivery

Data ManagementData Management

Data Modelling and ToolsData Modelling and Tools

Data Lifecycle ManagementData Lifecycle Management

Portals & Web Applications

Portals & Web Applications Line of Business

Applications

Line of Business Applications

Content ManagementContent Management

FormsForms

DocumentsDocumentsOutput

Management

Output Management Digital Assets

Digital Assets

eMail Management

eMail Management

Content/Records Lifecycle ManagementContent/Records Lifecycle Management

Trusted Information ManagementTrusted Information Management

Master Data ManagementMaster Data Management

Data WarehousingData Warehousing

Information ServerInformation Server

Collaborative Solutions

Collaborative Solutions

Metadata Management

Metadata Management Profiling &

Analysis

Profiling & Analysis Quality &

Cleansing

Quality & CleansingBalanced

Warehouse

Balanced Warehouse Entity and

Asset Management

Entity and Asset

Management

Enterprise SearchEnterprise Search

Deep AnalyticsDeep Analytics

Process ManagementProcess Management

Strategy Planning (Scorecards)

Strategy Planning (Scorecards)Measuring & Monitoring

(Dashboards)

Measuring & Monitoring (Dashboards) Query and

Reporting

Query and Reporting Analysis and

Visualisation

Analysis and Visualisation Budgets, Forecasts

and Plans

Budgets, Forecasts and Plans

Mobile DevicesMobile DevicesComposite

Applications

Composite Applications

eDiscoveryeDiscovery

Automated Collection & Classification

Automated Collection & Classification

Customer Data

Integration

Customer Data

Integration

Video/Audio Search

Video/Audio Search

Structured Data ManagementStructured Data Management

Extreme AnalyticsExtreme Analytics

Reference Data ManagementReference Data ManagementFederation Change Data Capture

Replication Consolidation (ETL)

Federation Change Data Capture

Replication Consolidation (ETL)

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Business Modelling & Simulation

Business Modelling & Simulation Workflow

Mngmnt

WorkflowMngmnt Business

Policy

BusinessPolicy Services

Choreography

Services ChoreographyProcess Execution

Design & App Design

Process Execution Design & App Design Rules

Mngmnt

Rules Mngmnt

Info

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On

Dem

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Entry Points

Business Intelligence & Performance ManagementBusiness Intelligence & Performance Management

Information Access & AnalyticsInformation Access & Analytics

Information AgendaGuides & Workshops

Industry tailored sessions to guide future state design, identification of key

information requirements and gap analysis

FoundationTools

Software to help you convertyour information into

a trusted strategic asset

It Takes More Than Just TechnologyThe Information Agenda – How to Approach the IOD Vision

Information On DemandCompetency Centers

Services to help you build information centers

of excellence

InformationAccelerators

Industry specific assetsto speed deployment

StrategyStrategy

InformationGovernanceInformationGovernance

InformationInfrastructureInformationInfrastructure

RoadmapsRoadmaps

Information Agenda For TelecomInitiatives to Support Business Objectives

Core Management Processes

The underlying processes that are prevalent across all areas of the company and must be managed for

improved business performance

Business Objectives

The processes and activities that can be

optimized through more effective use of

information in support of the strategic imperatives

Strategic Imperatives

The key focus areas for a specific industry that are

critical to improving overall business

performance

E.g. Customer Focus: Consistent Multi-Channel Experience

Customer experience reflects stated customer service goals. All data/information associated with customer interaction is current, accurate and consistent regardless of customer’s channel of interaction – phone, web, email, retail, business office, etc. Customer interaction and processes across channels are efficient and consistent. Consistent quality promotes customer retention and contributes to increased ARPU.

Challenge Impact Improvement

Incomplete, inaccurate or inconsistent information regarding customer, service or product.

Poor customer service. Conflicting information, offers, procedures. Failure to carry through across channels. Missed cross-sell or up-sell opportunity.

Consistent, quality customer service. Enable knowledgeable, competent CSRs. Enable a positive, first impression. Efficient customer interactions.

Inconsistent and/or inefficient processes for customer interaction.

Delays in completing customer requests. Increased customer support costs. Customer dissatisfaction. Increased churn.

Consistency, quality, efficiency and reputation.

Information created or updated in one channel is not quickly or accurately synchronized across systems or other channels.

Incomplete, conflicting customer or product information. Protracted call resolution. Delayed order processing and provisioning.

Efficient customer interaction. Lower call center costs. Improved reputation.

Unable to determine efficiency and quality of customer interactions across multiple channels.

Poor or inadequate allocation of staffing and resources. Cannot proactively address problematic channels. Cannot identify channels or geographies that exhibit above average performance.

Identify & improve inefficient or problematic customer channels. Uncover systemic or specific causes of problems. Identify best practices. Establish metrics for continuous process improvement.

Slow response time of customer service applications.

Frustrated CSRs. Increased customer support costs. Customer dissatisfaction. Churn.

More efficient customer transactions. Lower call center costs. Reduced data storage costs.

Many References

Ability to quickly identify & classify customers at the CSR level resulting in offers that accurately represent segment and customer profile

Ability to quickly identify & classify customers at the CSR level resulting in offers that accurately represent segment and customer profile

Improved Customer Service via BPM. First year FTE cost avoidance of $2.5 million, and a 150% return on investment

Improved Customer Service via BPM. First year FTE cost avoidance of $2.5 million, and a 150% return on investment

Improve profit margins by 2.1% by creating a paperless & process oriented company.

Improve profit margins by 2.1% by creating a paperless & process oriented company.

Improved Data Quality improve customer care. $4M saved in 3 years by reducing duplicate mailings and increasing accuracy of customer relationships

Improved Data Quality improve customer care. $4M saved in 3 years by reducing duplicate mailings and increasing accuracy of customer relationships

Improved Data Quality improve customer care. $4M saved in 3 years by reducing duplicate mailings and increasing accuracy of customer relationships

Improved Data Quality improve customer care. $4M saved in 3 years by reducing duplicate mailings and increasing accuracy of customer relationships

Keeps customer service high with a resilient, flexible information infrastructure

Keeps customer service high with a resilient, flexible information infrastructure

Managed continued data growth and reduced capacity requirements by archiving 10 million records per day per application

Managed continued data growth and reduced capacity requirements by archiving 10 million records per day per application

Met 5-year data retention regulatory requirements by reducing data in the production database

Met 5-year data retention regulatory requirements by reducing data in the production database

Information Agenda For Telecoms Summary

Known Area of Focus

Secondary Focus Area

Possible Focus

No Focus

Priority: InvestingPriority: Investing

Priority: Not InvestingPriority: Not Investing

Not a PriorityNot a Priority

Investigate FurtherInvestigate Further

1 3 4 52

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