5GWORLD

Proactive Network Analytics for the Future

Bob Fox

Global Industry Leader – Telecommunications and Media & Entertainment

IBM Global Business Services

June 30, 2016

Cisco boss says half of service providers will be “irrelevant” within a decade John Chambers, chief executive of tech-giant Cisco, said he expected sweeping changes in the operator landscape, with 50 per cent of today’s service providers becoming irrelevant in ten years’ time as they fail to adapt in a fast-moving digital world.

Mobile World Live, March 3, 2015.

Agenda

1 | CSP CEO Imperatives

New Revenue, Cost Reduction, Customer

Experience, Digital Transformation, Technology

Innovation

2 | The Cognitive Network Today

3 | What’s Next?

New Revenue

From Existing Customers (cross-sell, upsell, bundles)

Mobile Money/Payments

Advertising

Commerce

IOT/M2M

Cloud and ICT

Vertical Markets

New LOBs

New Revenue: A Cautionary Tale? CenturyLink CFO on Telecom Industry Economics

“For every dollar that it loses in legacy

revenues, CenturyLink must generate two

additional revenue dollars in growth areas in

order to maintain its earnings level.”, said the

company’s CFO Stewart Ewing yesterday.

Telecompetitor Blog, March 09, 2016

European 4G spending up in 2014,

but €100B cost cuts necessary “Radical cost-cutting to the tune of €100 billion may well be required in the hyper-competitive European telecoms sector if operators in the region are to achieve sustainable growth.” Financial Times, February 11, 2014

Cost Reduction: Not incremental, i.e. -50% not -15% or -5%

Customer Experience: By country, mobile customer experience ranges from 40 to 70 (out of 100) and varies by a factor of 1.8 …

4 Measures • Error rate • Latency consistency • Download speed • Average latency

…but by operator, the range is 26-76, and varies by a factor of 3!

Source: Apteligent, OpenSignal,STL Partners analysis

And consumer Net Promoter Score (NPS) across the world is negative. The average is -19.

32% 30% 29% 30%33%

31% 30%

35% 36% 35%40% 41%

43%41% 39%

44%47%

43%41%

47% 46% 46%49% 48%

52%48%

53% 55%

78%

30%35% 37%

37%36% 41%

44%36% 35%

40% 31%32%

32% 37% 42%36% 33% 39% 45%

36%38% 40% 34% 37% 29%

39%

35%35%

18%

38%34% 34% 32% 31%

29%26%

28% 29%25%

29%27% 25%

22%19% 20% 21%

17%15%

18%15% 14%

17%15%

19%

13%11% 10%

3%

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Detractors Neutrals Promotors

Source: IBM Institute for Business Vaue, 2014.

Yet 87% of CSP CXOs say that in five years’ time customer experience will be the ultimate differentiator and that their business strategy must change

Initiatives to improve customer experience

Digital Transformation: PLDT CEO says digital move will be “difficult and complicated”

The Philippines’ largest operator PLDT (owner of

Smart) suffered another weak quarter with its profit

down sharply, revenue mostly flat and its subscriber

base continuing to shrink.

PLDT CEO Manuel Pangilinan said the results for the

first quarter confirm that its “digital pivot will be a

difficult and complicated process”.

MobileWorldLive, May 5, 2016.

Digital Transformation: The fast are eating the slow

Yesterday, the big ate the small. Now the fast eat the slow.

Andrew Penn, CEO of Telstra: "In the future, if a business is

not mobile-first and digital to the core, if it does not present

on an app or an icon on a customer's handset, then

effectively it will simply not exist."

ZD Net, May 9, 2016.

Digital Transformation: Telefonica sees digital transformation as “terrifying” but “urgent”

Phil Jordan, CIO Telefonica, discussed how

the operator is working towards

digitalisation across 15 countries, calling the

process “the hardest thing you will ever do.”

MobileWorldLive, April 14, 2016.

Technology Innovation: Security solutions, big data and spectrum efficiency top the list of today’s most important technologies

However, as 2020 approaches, the technology innovation battlefield shifts to IoT, NFV, eSIM and cognitive

Capabilities: - Data lake for reporting and analytics - Business Intelligence for Marketing, Care, Network - Predictive models for Marketing and Care

Capabilities - Loyalty and Churn modelling, segmentation - Reduced AHT and L2 escalation - Network Event insight

Capabilities - Care call reduction – proactive call outs, self-service - Predicted Call Intent – call deflection & routing - Data monetization and contextual marketing

Self Serve Analytics

Customer Care and Network Event

Response

Real time customer

experience

Cognitive Network

Operations

EDW

Yesterday: Foundational & Predictive Analytics

Today: Advanced Customer Insight Imminent: Transforming the business

Behavior Based Customer Insight

Omni channel engagement Cognitive - Self Learning New Revenue streams from data

Pro-active systems of engagement Customer 360 view & profiling Integrated Solutions

Data siloes moving to data lake Reactive systems Customer Experience visibility

Proactive Call Center

Cognitive Field Service Advisor

Intelligent Procurement

BI Reporting

Cognitive Network Evolution

Agenda

1 | CSP CEO Imperatives

New Revenue, Cost Reduction, Customer Experience,

Digital Transformation, New Technologies

2 | The Cognitive Network Today

3 | What’s Next?

Cognitive Analytics Today Generate Real Savings

Telcos reduce actionable events for common equipment by more than 85%

Related Event Analytics

6,324 fewer tickets

520,624 fewer events presented to

Operations

Scope

1 month of data

containing 4 Million events

Potential Savings

Large NA Telco

61,931 event groups

identified with groups ranging from 2 to 1761 events

$632k

6 months data, 500,000 events, 2000 seasonal patterns, 1300 related event groups. Doubled the managed environment – reduced number of events by 50%

Analyzing client data IBM demonstrated a 75% reduction in events using Event Grouping Analytics; Business case showing how to save the client £160k per year

Large European Wholesale Telco

Case studies and client testimonials

https://ibm.biz/BdXSCa

https://ibm.biz/BdXCvu

https://ibm.biz/BdEPWe

https://ibm.biz/BdHqJL

https://ibm.biz/BdXCvC

Agenda

1 | CSP Imperatives

New Revenue, Cost Reduction, Customer Experience,

Digital Transformation, New Technologies

2 | The Cognitive Network Today

3 | What’s Next: The Watson Cognitive Network

•

•

•

.

.

• .

• .

Digital Virtual Assistant Cognitive Care platform improves customer experience, reduces contact center OPEX and provides innovative self-serve capabilities

Network Operations Generates efficiencies and optimization in Network Operations Center (NOC) for Level 1 and Level 2 NOC engineers

Device Doctor Troubleshoots smart phone device related issues in real time. Users include end customers, retail and call center agents

Intelligent Procurement Optimizing Procurement function with Cognitive understanding of Suppliers, Spend, Products and Pricing

Cognitive Field Service Advisor Enables technicians to resolve field service requests using cognitive insights that elevate the expertise of the field force and drive operational efficiency

Cognitive TV Intelligent and Next Generation TV viewing with Voice controlled TV commands and Personalized Content Recommendations

6 Cognitive & Watson offerings for CSP Networks in 2016

Watson for Intelligent Procurement Solution Overview

• Watson Explorer can enable the Procurement & SCM team to leverage large pools of unstructured and

structured data, including: contracts, product manuals, external news, weather reports, data sheets,

emails, social media feeds etc. Key insights from this data will be organized in a single 360 degree

portal enabled view.

• Optimize purchase price, mitigate supply chain risks, realize revenue from new products and reduce idle inventory with Watson Procurement Intelligence solution

Business Value

Cognitive Field Service Advisor

Solution Overview

• Enables Field Technicians to resolve service requests using cognitive insights that elevates the expertise of the field force and drives operational efficiency

• Assists troubleshooting assets in the field and CPE. Enables Technicians to interact in Natural Language to discover answers to “technical troubleshooting” questions

• Watson consumes numerous types of documents such as Chat History, Service Tickets, Vendor Manuals, M&Ps, public/private knowledge bases etc. and provides insights & visualization for problem diagnosis and resolution.

Business Value

Quantitative KPIs • Increase First Time Fix Rate • Increase Cost per Job Savings • Increase Service Write-off Savings • Increase On-Time compliance • Decrease Training Costs • Decrease Call Transfers &

Escalations

• Increase Customer Lifetime Value • Decrease Customer Churn • Increase Parts Sales • Increase Warranty Offer Sales • Increase Service Contract Sales

Cognitive Network Operations Solution Overview

• Enable efficiencies and optimization in Network Operations Center (NOC) for Level 1 and

Level 2 NOC engineers & managers

• Watson consumes numerous types of operational data and documents – such as alarms, tickets, vendor manuals, M&Ps, public/private knowledge bases etc. and provides insights, visualization, automated execution for problem diagnosis and resolution.

• Solution integrates cognitive capability with existing tools, providing Cognitive dashboard with Q&A, sophisticated search, related concept discovery, optimization and other functions

Business Value

Quantitative KPIs

• Ticket MTTR (Mean Time to Repair) • First time resolution (reduced rework) • Reduced Ticket escalations/transfers • SLA compliance • Network Availability • Reduced Dispatches • Reduced NW OPEX

Qualitative Drivers

• Increased Customer Satisfaction • Improved Brand value / NPS • Reduced NOC engineer training • Improved operations processes • Reduced Hand-off time form Engg to

Ops, improving Time to Market

Capabilities: - Data lake for reporting and analytics - Business Intelligence for Marketing, Care, Network - Predictive models for Marketing and Care

Capabilities - Loyalty and Churn modelling, segmentation - Reduced AHT and L2 escalation - Network Planning insight

Capabilities - Care call reduction – proactive call outs, self-service - Predicted Call Intent – call deflection & routing - Data monetization and contextual marketing

Self Serve Analytics

Customer Care and Network Investment

Planning

Real time customer

experience

Cognitive Network

Operations

EDW

Yesterday: Foundational & Predictive Analytics

Today: Advanced Customer Insight Imminent: Transforming the business

Behavior Based Customer Insight

Omni channel engagement Cognitive - Self Learning New Revenue streams from data

Pro-active systems of engagement Customer 360 view & profiling Integrated Solutions

Data siloes moving to data lake Reactive systems Customer Experience visibility

Proactive Call Center

Cognitive Field Service Advisor

Intelligent Procurement

BI Reporting

Cognitive Network Evolution

Thank you

Bob Fox Vice President Global Industry Leader,

Telecommunications, and Media & Entertainment

robertfox@us.ibm.com

www.ibm.com/iibv