Billing and Product Catalog for Bundled Offering

Session Number 3577A

Teresa Jacobs, VP Data Warehouse and Business Intelligence, CenturyLink

Arvind Sathi, Lead Architect Information Agenda, IBM SWG

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Agenda

• Telecom and MDM

• Case Study

• Data Governance

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Service Providers are moving through a complex mult i-phase transformation. Customers are buying services and devices not conne ctivity technology. The LOB definition will become aligned to the market vs . the networks.

Phase 1 Independence

Phase 1 Independence

Wireline

Wireless

Broadband

Satellite

� LOB specific ordering� Network siloed by

service� Customers know what

they want

Phase 2 Bundles Phase 2 Bundles

� Same as Phase 1 with added process and function to collect the bundle details

Phase 3 Interdependence

Phase 3 Interdependence

� Phase 1 &2 plus cross product validation and selling

� Single brand emerges, customer view of order

Wireline

Broadband

Phase 4 Service Driven

Phase 4 Service Driven

Voice� Wireline� Wireless� VoIP

Video� Satellite� IPTV

�Program.�Games

� VDSL

Internet� DSL

�Games� Dial

� Re-orient ordering to respond to customer needs vs. SP products

� Introduce option for consultative selling

� Third party services

Phase 5 ConvergedPhase 5

Converged

� Decouple the network from the service

� Device / Transport

Services� Voice Service� Television � Internet

Services� Games� Security� Calling Card

Transport

Wireless

Satellite

IP Services �VoIP�IPTV

Wireline

Broadband

Satellite

Wireless

Devices

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How many product catalogs should you keep?

Customer

Billing

Network 7

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2

5

4

1

Area Descriptions

1 The catalog from the point of view of the customer.

2 The catalog from the point of view of billing. Includes unit rating, and all pricing, taxing and discounting rules.

3 The product from the point of view of network including provisioning and fulfillment. Building blocks for functional products.

4 Product information in customer product and orders, as information is conveyed from order entry to provisioning.

5 Product information for communication with billing system.

6 Network information conveyed to billing, including traffic, mediation and third party feeds to billing.

7 Profitability view. Matching of Customer, Revenue and Costs to determine product and customer value.

Major Product Catalogs

Typically, telecom service providers have between 5 0-100 product catalogs covering the above 7 functional areas across multiple geographie s and merged entities. However, an enterprise customer may seek a solution across many of these regions requiring enterprise-wide product catalog synergies . The target architecture must include the total numb er of target product catalogs as well as the strategy for federation across these catalogs – standards, centralization vs. federation, synchronization mechanism. The roadmap must specifically address how the other catalogs will be capped or decommissioned.

Typical Business Challenges Associated with MDM

Resulting Business Problems

• Trusted information is not available when & where needed

• Inflexibilities make the business slow to respond t o changing requirements

• Cost of managing IT is too expensive

• The full value of information is not being leverage d

– Inability to understand the value of the customer

– Inconsistency in product data across systems – slow time to market

– Missed revenue opportunities

– Inconsistent customer service across channels – poor customer satisfaction

Typical Business Drivers Associated with MDM

Improve strategic decision making &

business agility

Improve customer service and

customer intimacy

Comply with regulatory

requirements and reduce risk

Enter new markets, introduce new

products, gain new customers

Lower operational costs

Cross-sell & Up-sell

Master DataManagement

4 Primary DriversSample Business Objectives

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Revenue as a Business Driver for MDM

• Identify cross-sell, up-sell opportunities

• Customize product offerings and bundles

• Introduce new products quickly

• Identify high value customers

Revenue

Compliance

Agility

Cost

Benefits

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Agility as a Business Driver for MDM

• Consolidate data from silos

• Integrate new systems quickly

• Meet demands of new business channels

• Grow with the business

• Identify key relationships and hierarchies

Revenue

Compliance

Agility

CostBenefits

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Cost as a Business Driver for MDM

• Automate manual business processes

• Reduce data errors

• Eliminate excess mailings

• Identify risk (credit)

Revenue

Compliance

Agility

CostBenefits

9

Compliance as a Business Driver for MDM

• Reduce risk

• Control access to data

• Adhere to SOX regulations

• Manage customer privacy preferences

Revenue

Compliance

Agility

CostBenefits

A Case StudyA Case Study……

• Who is CenturyLink?

• Improving the Customer Experience with Data

• Case Study

� Business Drivers

� Approach

� Architecture – Pre & Post

� Results

� Program Summary

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Third largest telecommunications company in the U.S.

Broadband, voice, wireless, and advanced

entertainment services under the CenturyLink Prism

TV and DIRECTV brands.

Data, voice, and managed service to business,

government, and wholesale customers.

Customers range from Fortune 500 companies to

families living in rural America.

Headquartered in Monroe, LA and is included among

the Fortune 500 list of America’s largest corporations.

Who Is Who Is CenturyLinkCenturyLink ??

CenturyLinkCenturyLink Is An Industry Leader!Is An Industry Leader!

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Pro forma 2011 annual revenues of $18.5 to $18.8 B*

� 15.1 million access lines

� 5.4 million broadband customers

� 1.7 million video customers

� 210,000 route mile national fiber network

Committed to being broadband leader in markets.

Global leader in managed hosting and

cloud services through Savvis, a

CenturyLink company.

* Pro forma for FY2011, including purchase accounting adjustments

HIGH IMPACT PROJECTS

Improving the Customer Experience with Data:Improving the Customer Experience with Data:

Integrated Customer Data for IVR

Usage Analyticsfor Revenue Assurance and Fraud Detection

Cost / Profitability Analytics

Product Catalog for Ordering & Billing

CenturyLink embarked on many projects which use

customer and product data to…

Improve the Customer Experience

Improve Operational Efficiencies

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Integrated Desktop for 360 View of Customer

o

Product Catalog Product Catalog –– Business DriversBusiness Drivers

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Business Symptoms…

- High Average CallHandling Time

- Long TrainingCycle Time

- High Percentageof Order Fallout

- Low Net RevenuePer Call

- High Rate ofEmployee Churn

- Slow Speed to Market

Primary Causes for Key Symptoms

Required Capabilities( War Room Staring Point)

Multiple Systems per Business Function

Bill Explanation Difficult & Lengthy

Product / Promo Info Difficult to Access

Bundled Quotes Manually Calculated

USOCs & FIDsExtremely Complex

Bill Charges Mismatch Charges Quoted

Multiple Product Catalogs

Easy Access to Current Promo Info and Competitive Marketing Data

Accurate Quoting for Products, Product Bundles, and Discounts

Increased Speed to Market for Product Introduction

English-Based

Product Offers

Easy Ordering

Process with Minimal

Key Strokes

Approach:Approach:

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INCREASING VALUEINCREASING VALUE

Previous Architecture:Previous Architecture:

Input InterfacesInput Interfaces

Service OrdersService Orders BillingBilling 3rd Party3rd Party TollToll BillingBilling

TaxingTaxing Journal InterfaceJournal Interface

Discounting InterfacesDiscounting Interfaces

AccumulationAccumulation

DiscountingDiscounting

Call Center Order

Call Center Order

Call Center Order

Call Center Order

Rate QuoteRate Quote

OnlineOrderOnlineOrder

Partner Order

Partner Order

Bill Period Determination

Bill Period Determination

Prorationof MCRsProrationof MCRs

CDE Bundled ServiceCDE Bundled Service

CDE

CDE Databases

=1. Input Interfaces are Hard Coded and Multiple instances exist for the various inputs.

2. CDE had 11 outages in one year due to rule complexity beyond its design characteristics

3. CDE ran on the mainframe and was difficult to maintain due to late of tools in that environment.

New Architecture:New Architecture:

Service OrdersService Orders BillingBilling 3rd Party3rd Party TollToll BillingBilling

TaxingTaxing Journal InterfaceJournal Interface

Call Center Order

Call Center Order

Call Center Order

Call Center Order

Rate QuoteRate Quote

OnlineOrderOnlineOrder

Partner Order

Partner Order

Bill Period Determination

Bill Period Determination

Prorationof MCRsProrationof MCRs

CDE Bundled ServiceCDE Bundled Service

CDE Engine

(Selectica)

CDE Engine

(Selectica)

Threshold ValidationThreshold Validation

MDM4PIMMDM4PIM

Micro WFMMicro WFM

AggregationAggregation

Discount QualDiscount Qual

Discount AppDiscount App

ProrationProration

Output InterfaceOutput Interface

Bill FormattingBill Formatting

Allocation Journal Interface

Allocation Journal Interface

Accumulator (ETL) - Informatica ETL Rules

Services

NEW CDE

CDEPortalCDE

Databases

- Restructured Services

- Off The Shelf Software

- New Services / Rules

2010 2011Before

# of Promos… 470 600

Increased Capacity for More Promos!Increased Capacity for More Promos!

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A story ofA story ofA story ofA story of…………

IT Delivers Direct (and dramatic) Benefits to the Bot tom LineIT Delivers Direct (and dramatic) Benefits to the Bot tom LineIT Delivers Direct (and dramatic) Benefits to the Bot tom Line

Rules Generation ApproveDefine

Fast Track Implementation

Research / Analyze / Monitor

Release Based Implementation

COBOL DB2

New Rules Engine / CDE Simulator Add New Rules Engine / CDE Simulator Add

MDM

Selectica

Java

Oracle

Research / Analyze / Monitor

CDESimulator

90% of Promos Went Here

10%

Increased Fast Track Throughput,Increased Fast Track Throughput,

90%

10% of Promos Here Now

Avg Cost Per… 92%decrease

$$$$

Decreased Decreased AvgAvg Cost Per Promo!Cost Per Promo!

76%decrease

Avg Cycle Time Per (In Weeks)…

60%decrease

Decreased Decreased AvgAvg Cycle Time Per Promo!Cycle Time Per Promo!

X X X X X X X X X XX X X X XX X X X X

50%decrease

Program SummaryProgram Summary: Significant Business Value: Significant Business Value

INCREASING VALUEINCREASING VALUE

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Data Governance

21 | 21 |

Requirements for Implementing Data Governance

Data Governance is a critical component of an MDM progra m.

Active, Committed Champions

Cost Savings

Faster Development Time

Accurate Reporting

Reusable Component-Driven Development

Process

Business Processes Information System Processes

Data StewardshipOrganization

Benefits

Data ManagementOrganization

Data GovernanceData Governance

Data Governance – Critical Success Factors

Capable Implementation

Ownership

Leadership

• Executive Support & commitment to transforming actions

• Committed resources• Managed expectations

• Clear accountability and commitment to resolve data issues

• Measurable results• Appropriate level of involvement• Recognition of data as a corporate

asset

• Support cross company stewardship community

• Tools• Skills and training• Support processes and technology

Critical Success Factors

Product Information Management - Reference Architecture

Design Operations Analysis

Workflow ChangeConsole

ActivityMonitoring

Dashboard

DiscountingEngine

ConfigurationEngine

ProductData

ProductRules

AnalyticsEngine

Modeling /Simulation

Reporting

Feedback Loop

DataModel

Discovery ETL

MatchingCleansing

ChangeManagement

Internal / External Sourcing

Customer

Billing

Network 7

36

2

5

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My book has some additional details in the MDM chapter

http://www.mc-store.com/5137.html

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Acknowledgements and Disclaimers :

© Copyright IBM Corporation and CenturyLink 2011. All rights reserved.

– U.S. Government Users Restricted Rights - Use, dupli cation or disclosure restricted by GSA ADP Schedule Contract with IBM Corp.

IBM, the IBM logo, ibm.com, are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol (® or ™), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml

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