Delivering Real-Time Business Value for Telecommunication

Delivering Real-Time Business

Value for Telecommunications SAP Business Suite Powered by SAP HANA

July 2013 Public

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 2 Public

The real-time opportunity

Fierce competition, increasing customer

expectations, and rapidly changing technology

require communication service providers to excel

operationally while innovating like never before.

Enhance financial process effectiveness

Optimize management of network assets

Improve customer experience through better insight


Accelerate and

optimize financial

processes

Speed financial reconciliation

Minimize days sales outstanding

Manage working capital efficiently

Improve asset

management and

operations

Enhance management of network asset

deployment projects

Maximize asset uptime

Efficiently manage asset maintenance schedule

Improve customer

experience through

better insight to

action

Improve segmentation and targeting through

better customer insight

Personalize customer interactions to drive better

buying experience and enhance sales

Going beyond telecommunications Innovate like never before


SAP Business Suite powered by SAP HANA The next-generation business platform

Real-time business

In-memory

Business

transactions

Digital

connections

Collaborative

business

Cloud Social

Big Data Mobile

One platform bringing it all together

Advanced

analytics


Industry value map (IVM) for telecommunications Going beyond telecommunications

Market Insight and Service

Innovation

Customer Insight and

Segmentation

Continuous Service Innovation

Service and Offer Definition

Service Platform

Network Asset Lifecycle

Machine-to-Machine

Mobile Commerce

Customer Experience

Management

Sales Force Support

Offer to Fulfill

Charging and Billing for

Telecommunications

Customer Service and Support

Operational Efficiencies

Sales Channel Management

Profitability and

Cost Management

Revenue Management

People and

Talent Core Human Resources

and Payroll Talent Management

Time and Attendance

Management

Workforce Planning

and Analytics

Finance Financial Performance

Management

Accounting and

Financial Close

Treasury and Financial

Risk Management

Collaborative

Finance Operations

Enterprise Risk and

Compliance Management

Procurement Supplier Discovery and

Lifecycle Management

Strategic Sourcing

and Contracting

Procurement and

Order Collaboration

Collaborative Invoice

to Pay Commodity Management

IT Management Application Lifecycle

Management

IT Infrastructure

Management

IT Portfolio and Project

Management IT Service Management

IT Strategy and

Governance

Technology

Solutions

Analytics Consumer Experience Data Management Enterprise Mobility

SAP HANA Platform

Application Development

and Integration


Industry value map for telecommunications Going beyond telecommunications

Market Insight and Service

Innovation

Customer Insight and

Segmentation

Continuous Service Innovation

Service and Offer Definition

Service Platform

Network Asset Lifecycle

Machine-to-Machine

Mobile Commerce

Customer Experience

Management

Sales Force Support

Offer to Fulfill

Charging and Billing for

Telecommunications

Customer Service and Support

Operational Efficiencies

Sales Channel Management

Profitability and

Cost Management

Revenue Management

People and

Talent Core Human Resources

and Payroll Talent Management

Time and Attendance

Management

Workforce Planning

and Analytics

Finance Financial Performance

Management

Accounting and

Financial Close

Treasury and Financial

Risk Management

Collaborative

Finance Operations

Enterprise Risk and

Compliance Management

Procurement Supplier Discovery and

Lifecycle Management

Strategic Sourcing

and Contracting

Procurement and

Order Collaboration

Collaborative Invoice

to Pay Commodity Management

IT Management Application Lifecycle

Management

IT Infrastructure

Management

IT Portfolio and Project

Management IT Service Management

IT Strategy and

Governance

Technology

Solutions

Analytics Consumer Experience Data Management Enterprise Mobility

SAP HANA Platform

Application Development

and Integration

Highest real-time

business value for

telecommunications

1

2

3

5

4 7

6


Today

KPI improvements are high-level estimates and will have to be validated for each customer situation.

Accounting and financial close Business value for entity close

Reduce time to close the

entities’ books by

10%

Reduce

Enhance

cost of finance

1%

compliance and

accuracy

With SAP Business Suite on SAP HANA

Long-running processes

Time-intensive reconciliations

Limited time for analysis

Inefficiencies due to manual

processes and low automation

Missing financial excellence

resulting in higher cost of equity

at the capital markets

Difficulties in supporting parallel financial reporting standards on a global basis and in simulation of scenarios

More time for analysis, less overtime,

and earlier publishing of financial

results through faster

period-end processes and better

reconciliations

Increased efficiency through smarter

reconciliations and reporting,

reducing operating costs and

improving stakeholder satisfaction

Real-time analytics down to the

lowest level of detail – delivering

quality at source, transparency, and

process efficiencies


Today


Revenue management Business value for receivables management


More time spent preparing data; less

time for analysis

Collaboration beyond finance team

hindered by perceived system

complexity

Limitations in analysis capabilities

and dimensions because of reliance

on finance aggregates

Large data volumes that lead to

batch processing and reporting

latency

Difficulty in identifying exceptions in

thousands of pages of reports

Instant portfolio overview that lets

managers focus team efforts on

tactical wins

Ability to involve sales executives and

other business partners to accelerate

collections and dispute resolution

More accurate document-level

calculation of DSO that allows you to

identify root causes of changes to

DSO

Real-time reporting on all accounts

receivable data including credit,

collections, and disputes

Anywhere, anytime access to key

receivables status

Increase cash collections and

accelerate dispute

resolution

Optimize

Gain

working capital

instant and up-to-

date overview of

receivables

portfolio


Today


Offer to fulfill Business value for efficient sales through contact center

Data in different data sources

prevents true 360-degree view of the

customer

One central place for collecting all

customer data from various sources

and tools

Precision marketing to personalize

every interaction with the customer

Optimize return on marketing

investments by

2%

Improve offer win rate

Difficult to extract actionable

information from the enterprise-wide

customer data to maximize the

chance of a sale

Minimal insight into buying

preferences of customers in social

data context

Real-time analysis of Big Data to

better understand buying patterns

Real-time access and assembly of all

data, including social/sales data



Today


Network asset lifecycle management Business value for maximized asset utilization and uptime


Increase asset utilization and

reduce unplanned

asset downtime by

15% Maximize

Improve

asset uptime by

12%

scheduling information

on maintenance

operations

Maintenance scheduling consumes a

great deal of time

Manual and error-prone process of

preselection of maintenance plans

Potential to miss necessary objects

for maintenance calls

High number of maintenance plans

that need to be scheduled frequently

Accelerated mass transactions

Instant analysis on top of

transactions

Preselection of due plans, speeding

up the process significantly

Real-time analytics on all data,

including machine sensor information

Scheduling of all maintenance plans

within a specific timeframe

Planning several times a day (instead

of once a week) results in

up-to-date scheduling information in

maintenance operations

Faster response times lead to more-

accurate maintenance scheduling


Today


Customer service and support Business value for contact management with interaction center


Decrease average handling

time by

4%

Improve

Reduce

SLA compliance

service cost by

3%

To successfully resolve customer

issues, companies need to be able to

quickly locate the right experts or

resources within the organization,

whether those experts work inside

the contact center or elsewhere.

Managers and supervisors lack

actionable reporting and visibility into

the workload of their teams.

The high volume of customer records

and interactions results in increased

search times and greater difficulty

locating specific customer records.

With the new SAP HANA-based agent inbox, users can more easily search for relevant experts – whether in their own team or elsewhere in the organization – in order to dispatch/escalate issues to the most suitable employee roles.

A new interactive work distribution

dashboard provides supervisors with

actionable insights into the workload

of their teams and employees.

Searches in the interaction center,

including account searches,

interaction history, and the customer

fact sheet, are significantly faster.


Today


Continuous service innovation Business value for portfolio and project management


Increase user productivity by

1%

Reduce

Improve

time for task

confirmation by

1%

Search for

documents and

project elements

Project members experience long

waiting times when starting the

project and task dashboards. This

reduces user productivity when

working on several projects and on

tasks across projects.

Updates on multiple tasks are

inefficient and time consuming as

project team members confirm tasks

one-by-one to reduce waiting times.

Searching for documents across

projects takes a long time for large

portfolios of projects.

The process of finding projects,

tasks, and phases by responsible

project members is slow.

Faster access to tasks and projects

Accelerated access to project, task,

and checklist items dashboards

Enable project team members to

confirm times, status, and dates and

attach documents for several tasks at

once.

Increased user productivity

Accelerated search for documents

Speed up finding projects or tasks by

responsible project member


Today


Customer insight and segmentation Business value for marketing


Improve Profitability by

1%

Optimize

Increase

return on marketing

investments by

3%

customer

satisfaction by

2%

Missed market opportunities due to lack of visibility and inefficient processes

Data explosion, driven by new level

of connectivity of consumers using

mobile devices and social networks

Data is in disparate data sources,

which prevents true 360-degree view

of the customer

Agile marketing to respond faster to

changing market dynamics and

opportunities

New analytical, data mining

functionalities on Big Data (social

media, predictive)

Near real-time monitoring and

reporting on marketing performance

One central place for collecting all

customer data, leading to 360-degree

view of customers in real time

Precision marketing to personalize

every interaction with the customer


Next step Business scenario recommendation and value discovery workshop

SAP offers a proven methodology and approach to

discover the customer-specific business

improvement areas and quantify value potential.

We suggest such a workshop with your

line-of-business and IT experts.

As starting point, we recommend a performance

and usage analysis of your current system.

© 2013 SAP AG or an SAP affiliate company. All rights reserved.

Thank you

© 2013 SAP AG or an SAP affiliate company. All rights reserved.

Appendix with detailed customer cases


Reference telecommunications customer ($70B revenue) Summary validated scenarios (combined findings)

Feasibility

Bu

sin

ess v

alu

e

Me

d

Hig

h

Med High

Point of sale

on SAP HANA

($38 million)

Real-time offer

management

($71 million)

Fast

financial close

($1 million)

Business

intelligence and

reporting

($7 million)

Infrastructure

use and abuse

monitoring

($10 million)

Social network

mapping

($23 million)

Profitability

analysis

($3 million)

Phase ‒ deployment road map

1 Short term

CRM: POS on SAP HANA: Enables real-time inventory

updates and improved retail outlet performance.

Increase sales; increase operating margin; reduce

shrinkage; reduce fraudulent returns; reduce cost

of ineffective promotions.

SCM: Real-time offer management: Falling profitability

margins per customer as well as general price

point reduction due to new players on the market.

Very high customer churn rate. Technical

challenge is to gather the necessary information

across multiple areas and calculate profitability on

a given package offering.

2 Medium term

FIN: Infrastructure monitoring: Significant bandwidth

issues due to a number of abusive data plan users

can significantly reduce customer experience for

other customers.

FIN: Fast financial close: Finance staff working 16-

hour days to analyze finance data and prepare

for month-end close. Now reduced to five days,

with 25 times faster processing times. Iterations

that took 2.5 hours now completed in 6 minutes.

SAP HANA Platform: customer-specific SAP HANA products: SAP NetWeaver BW on SAP HANA, high-performance applications (HPAs), apps powered by SAP HANA SAP Business Suite on SAP HANA

Scenario

(business value)

Legend

SAP Business

Suite on

SAP HANA

SAP HANA

applications

SAP HANA

Platform

SAP HANA use cases mapped to industry value map end-to-end solutions


Reference telecommunications customer SAP HANA Platform

-150

38 39

71 81

23

-200

-150

-100

-50

0

50

100

150

200

2013 Phase 1 Phase 2

Costs SoH Applications Platform

$ In million USD

More information: Stephen Hollier; Daniel Ptaszynski

Annual revenue: US$70 billion

Based on actual SAP

customer engagements

Annual benefits, SAP HANA

Platform: US$23 million

Annual benefits, applications

powered by SAP HANA: US$81 million

Annual benefits, SAP Business Suite

on SAP HANA: US$39 million

Estimated deployment costs

Total transition cost: US$150 million (est.)

SAP HANA Platform: Anything built on the platform that is customer-specific – new business processes and business models

SAP HANA products: SAP NetWeaver BW powered by SAP HANA; high-performance apps (HPAs); applications – mapped to

inventory value map (IVM) end-to-end (E2E) solutions

Currently available functionality (SP0, 1, 2) – 23 scenarios mapped to IVM E2E solutions, and planned functionality (All of the

E2E solutions on the IVM are in scope.)

SAP HANA Platform

SAP HANA products

SAP Business Suite on SAP HANA


Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation

sessions and may not be completely validated.

Real-time offer management Telecommunications

Innovation scope

SAP HANA platform (customer specific)

End-to-end (E2E) solution

Telecommunications – service and offer

definition

Value potential 5

Feasibility 5

Low High

1 5

Low High

1 5

Business context and goals

Currently, the company is experiencing significant competition in all areas of telephony/Internet -

elated activities (fixed, mobile, Internet, cable). Profitability margins per customer are falling as

well as general price point reduction due to new players on the market. Very high customer

churn rate. In order to maintain current profitability, significant value add activities need to be

provided throughout the customer value chain. This begins with the customer offer for new

customers or for existing customers that are contemplating switching to other providers.

Business challenges

To truly provide a profitable option for the company that at the same time provides a positive

value proposition to the specific customer...and do it quickly, on the spot! The technical

challenge is to gather the necessary information across multiple areas and calculate quickly

profitability for the company on a given package offering.

Process innovations

SAP HANA can be used for on-the-fly evaluation of unique customer-tailored packages that

incorporate customer preferences and internal profitability potential, as well as exogenous

elements such as competitor offerings/price points

Contribution of SAP HANA

Speed, agility, and responsiveness to determine the "best" telecommunications package offering

for the customer while ensuring a desired level of profitability for the firm.

Value drivers/KPIs

Increased customer profitability; reduced customer churn; increased overall revenue




SAP CO-PA Accelerator report, drilldown Telecommunications


Understand customer profitability and overall customer analysis of revenue and operations to

better understand profitability drivers and make strategic decisions concerning lifetime value of

current/potential customers

Business challenges

No clear view of profitability/true lifetime value of customer

Process innovations

Visibility of profitability drivers and evaluation of lifetime customer value


Speed and granularity

Value drivers/KPIs

Improved profitability and finance efficiency

Innovation scope

SAP HANA products (HPAs, apps)


Telecommunications – financial performance

management

Value potential 3

Feasibility 5

Low High

1 5

Low High

1 5




Business intelligence and reporting Telecommunications


Increased access and performance of business analytics. The more informed, faster, and

granular reporting data provides business users with greater insights to make faster and more

impactful decisions. Apart from this business value, significant TCO implications and IT reporting

support can be realized.

Business challenges

Slow and aggregated level reports that do not provide quick access to necessary data/insights.

Business users consequently react slowly and decisions are not based on timely and complete

information

Process innovations

Faster and more informed decision making by business users that no longer have to significantly

rely on IT reporting support to develop new reports


Performance, granularity of data, and greater end-user accessibility of unique reporting and

query needs

Value drivers/KPIs

Improved IT reporting productivity; increased self-service usage by business end-users;

increased reporting efficiency

Innovation scope



Telecommunications – analytics

Value potential 3

Feasibility 5

Low High

1 5

Low High

1 5




Social network mapping Telecommunications

Innovation scope



Telecommunications - customer insight and

segmentation

Value potential 4

Feasibility 3

Low High

1 5

Low High

1 5


With the explosion of social media and "constantly on" communication, firms that have the ability

to make connections among sentiment analysis, customer behavior, geospatial information, and

other unstructured information can gain lucrative marketing information. That marketing

information can be subsequently used to make better offer management, cross-sell, and up-sell

opportunities.

Business challenges

Gathering, analyzing, and predicting customer behavior patterns with so much unstructured data

creates a significant roadblock to effectively using all of this Big Data around us.

Process innovations

Analysis and correlation of unstructured and structured data to help improve marketing

effectiveness.


Ability to analyze Big Data

Value drivers/KPIs

Increased profitability; increased revenue through cross-selling/up-selling/tailored offerings


Customer case: leading telecommunications provider in Poland Summary validated scenarios

Feasibility

Bu

sin

ess v

alu

e

Legend

Lo

w

Hig

h

Low High

SAP Business

Suite on SAP

HANA

SAP HANA

applications

SAP HANA

Platform

Predictive analytics

(2 million PLN)

Service and offer

definition

(21 million PLN)

Network asset

lifecycle

(3 million PLN)

Customer insight

and segmentation

(7 million PLN)

Financial

performance

management

(1 million PLN)

Phase ‒ deployment road map Annual revenue: 14 billion PLN

1 Short term

Service and offer definition: Increased

customer profitability; reduced customer churn;

increased overall revenue

2 Medium term

Financial performance management:

Improved profitability, improved finance

efficiency

Predictive analytics: Increased self-service

usage by business end-users; increased

reporting efficiency

3 Long term

Network asset lifecycle: Reduced

excessive/abusive use beyond contract

stipulations; increased revenue opportunity

Customer insight and segmentation:

Increased profitability; increased revenue

through cross-selling/up-selling/tailored offerings

SAP HANA Platform: customer-specific SAP HANA products: SAP NetWeaver BW on SAP HANA, high-performance applications (HPAs), apps powered by SAP HANA SAP Business Suite on SAP HANA

Scenario

(business value)

SAP HANA use cases mapped to industry value map end-to-end solutions


Customer case: leading telecommunications provider in Poland SAP HANA Platform

21000 22000

32000

2000

2000

0

5000

10000

15000

20000

25000

30000

35000

40000

2013 Phase 1 Phase 2 Phase 3

Costs SoH Applications Platform

PLN

SAP HANA Platform: Anything built on the platform that is customer-specific – new business processes and business models

SAP HANA products: SAP NetWeaver BW powered by SAP HANA; high-performance apps (HPAs); applications – mapped to

inventory value map (IVM) end-to-end (E2E) solutions

Currently available functionality (SP0, 1, 2) – 23 scenarios mapped to IVM E2E solutions, and planned functionality (all of the

E2E solutions on the IVM are in scope)

SAP HANA Platform

SAP HANA products

SAP Business Suite on SAP HANA

SoH = SAP Business Suite on SAP HANA

Based on actual SAP

customer engagements

Annual benefits, SAP HANA

Platform

Annual benefits, applications

powered by SAP HANA: 2M PLN

Annual benefits, SAP Business

Suite on SAP HANA: 32M PLN

Estimated deployment costs

Total transition cost




Innovation scope



Telecommunications - network asset lifecycle

Value potential 3

Feasibility 4

Low High

1 5

Low High

1 5

Infrastructure use and abuse monitoring Telecommunications


Significant bandwidth issues due to a number of abusive data plan users can significantly reduce

customer experience for other customers. Ultimately, this also means lost potential revenue ‒ the

abusers are not paying for their excessive use. Identifying these users is a first step toward

reducing this abuse; execution of policy is the second stage. Potential revenue increase can be

created by creating special plans to support such excessive data plan usage.

Business challenges

Identification of the abusive customers and related customer data plan usage

Process innovations

Identification of abusive behavior for data plans


Ability to identify and review large amounts of data

Value drivers/KPIs

Reduced excessive/abusive use beyond contract stipulations; increased revenue opportunity

Delivering Real-Time Business Value for Telecommunication

Technology

service management

asset management

commodity management

infrastructure management

project management

management of network

sap ag

payroll talent management