Iir Sep25 06 B Herbert Final

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Utilizing Business Intelligence to Evaluate the Success of

New Services

IIR Market ForecastingLisbon, September 25, 2006

Brian Herbert, Director, Product ManagementNetwork Business Intelligence

ACE*COMM

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Section I: The Situation

Industry Dynamics Increase Complexity of Product Execution

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Data Rich but Knowledge Poor

• Rapid change at the business level:– Consolidation and new technology increasing scale and number

of offerings– “Stickiness” of services and packages– Customers technically aware and impatient: pressure to

understand relative weight of customer experience factors– Business processes with manual or bypassed steps: pressure

to understand inconsistent customer experience?

• Reveals issues at the IT level:– Multiple, redundant Support systems– Disparate data sources, often in their own silo– “Swivel-chair” integrations– Data quality impacts: “garbage in, customers out”

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Convergence Increases Complexity of Customer Analysis…

Hybrid Hybrid ServicesServices (e.g. integrated (e.g. integrated

messaging, click messaging, click now view later, now view later,

LBS)LBS)

Mobile Mobile ServicesServices

Broadcast Broadcast ServicesServices

Broadband Broadband ServicesServices

3G4G

Mobile TV

IPTV

Voice Voice ServicesServices

VoIP

Pod-casting

MMS

Source: Stratecast Partners

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And Stretches the Value Chain…

S ource : E rics son

Buye rS e rvice

Provid e r

Royalty

O wne r

N e twork

O pe ratorBroke r

Mus ic Vid e o

Im pre s s ion/C lick

Virgin ntl:D ouble

C lick

Joe

C ustom e r

D avid

Bowie

D is tributor

S ony

Ad ve rtis e r

D e ll

HypotheticalExample only!

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Creating Need for Complete Views of the Business (NBI)

CUSTOMER

Asset/Data Mgmt

Market OptimizationCustomer

Acquisition

Order Management

OperateNetwork

Deliver Services Potential Revenue to Earned Revenue

Earned Revenue to Collected Revenue

Cash Management

Financial Analysis

Executive KPIs

Revenue Assurance

Organization

Systems

Customer

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3 Factors to Product Success

Market

ServiceNetwork

Capabilities and Capacity (by cost and location)

Products and Services(by revenue, cost, bandwidth, and competitiveness

Customers and Prospects(by segment and service)

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Product Success Factors - Questions

• Network: What does the supply side look like? How do we minimize CAPEX?

• Service: What is optimal mix based on revenue, cost, bandwidth, and competition?

• Markets: What are the patterns of growth, penetration, churn and ARPU?

These factors are interrelated

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Answers Provided via Data Integration

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Section II: Operator Application

Integrated BI to Improve Service Success

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Business Optimization through Visualization

• Data Quality Improvement

– Improve accuracy of address data

– Improve serviceability data, provide CSR ability to pinpoint customer

• Campaign “Triage”– High probability /low

acquisition cost– Low incremental cost to

service• Integrate Network and

Marketing Decisions

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Resulting ProspectDrill-Down

Navigate ThroughService Area

Create andHighlight Data

Themes

Build Complex Queries

High-levelVisualizationInterface

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Prospect Data Analysis & CleanseAnalyze customer and prospect address data against:• Postal files• Demographic data• Network availability

(GIS integration)• Known customers

Actual Results: UK operator, over 1 million missing premises within a footprint of ~8 million~200,000 of these are immediately addressable providing an additional market of $230 Million per annum

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Campaign PrioritizationAll prospective missing premises within 20m of the network

(indicated by ? symbol and grey shading).

A list of target prospects is automatically generated, reviewed, and exported to marketing system

Actual Results: 23% reduction in direct marketing expenses

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Capacity-Based Sales Management

• Boundaries and capacities shown on this theme

• Potential of 48 sales for L3 area (yellow highlight) with no incremental CAPEX

• Surrounding cabinets show remaining capacity for telephony (black) and CATV tap (pink)

• Potential of 9 Triple-Play sales in designated region

• Allows prioritization of cross-selling and new sales activities

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Network and Business Integration

Combine capacity

information with

physical network,

premise and prospect

data.

Sales campaigns can

then focus on matching

supply and demand

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Task SchedulerData Collection

Status

Graphics integratingProduct, Network,And Market Views

Personalized Portal byWorkgroup and Task

KPI Status

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Section III: Architecture

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Integration Points

NetworkVisualization

Data Central

OSSs(Cortex & ICMS) CC&B

(later Harmony)

WEB

NetworkInspector

WEB

WEB

Network (SDH, PDH & switches)

Maps(Scaled as necessary)

External datasources(Equifax,Claritas, Address Point, PAF…)

GIS(Ducts, boundaries…)

Arc View

Telesales & marketingVisualization

Business DataIntegration

OSSs(Cortex & ICMS) CC&B

(later Harmony)

WEB

NetworkCollection

WEB

WEB

Network (SDH, PDH & switches)

Network (SDH, PDH & switches)

Maps(Scaled as necessary)

External datasources(Equifax,Claritas, Address Point, PAF…)

GIS(Ducts, boundaries…)

Arc View

Telesales & marketing

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Data Sources• Physical network (ducts, cabinets…) • Logical network (boundaries, capacity,

services…)• Market (prospects, customers, billing data,

churn, propensity…)• Products and Services (tariffs, packages,

network requirements, billing details)• External data sources:

– Postal Address File/OS Address Point)– Demographic data– Map Data

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My Forecast

• Marketing interfaces will be increasingly tailored to facilitate human intelligence:– spatial mapping, pattern analysis, workflow tools

• After forecasting, product success depends on a new level of product, service, and network data integration to capture projected market

• “Garbage in, Customers out” – your customer’s experience is only as good as your data

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Thank You!

Brian Herbert Senior Product Manager, Network Business Intelligence, ACE*[email protected]