On-Demand Monetization - How to manage Digital ... · On-Demand Monetization (ODM) is about re-defining the ... • Industrial digital transformation • Master E2E Service Delivery

© 2018 TM Forum | 1

On-Demand Monetization

© 2018 TM Forum | 2© 2018 TM Forum | 2

IntroductionODM Challenge and Value PropositionThe ODM Catalyst

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IoT will create unparalleled value in the digital ecosystem

Lora

Lora

Lora

5G-MTC

5G-MTC

5G-MTC

NB-IoT

NB-IoT

NB-IoT

Vehicle-to-X

Industrial IoT

Tactile Internet

Smart Home

Predictions for number of connected devices by 2025

25billion 30billion 38.5billion 50billion 75billion

https://machinaresearch.com/news/press-release-global-internet-of-things-market-to-grow-to-27-billion-devices-generating-usd3-trillion-revenue-in-2025/http://www.gartner.com/doc/3840665?ref=shareSummary -Internet of Things — Endpoints and Associated Services, Worldwide, 2017

Total of

IoT connections

by 2025

27

billion

loE will add up to

to glob economy

by 2025

$3

trillion

up to

Total service

expending by

2021

$529

billion

Expending

Transition from non-

connected to

connected HW

$ 3.4

billion

© 2018 TM Forum | 4

On-demand Monetization is about defining Monetization Schemas for IoT/IoE times

Lora

Lora

Lora

5G-MTC

5G-MTC

5G-MTC

NB-IoT

NB-IoT

NB-IoT

Vehicle-to-X

Industrial IoT

Tactile Internet

Smart Home

$$$

$$$

$$$

$$$

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There is consensus about IoT potential, but…how to monetize?

Lora

5G-MTC

NB-IoT

Vehicle-to-X

Industrial IoT

IoT Application Reseller +Device Mgmt.+ Enablement Platform

Data Analytics

IoT Connection

M2M Devices

Gateway

Direct Connection

Gateway

Identity

Security

Location

Data Insight

Connectivity

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New monetization paradigm is required to unleash the potential of IoT

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On-Demand Monetization (ODM) is about re-defining the monetization schemas required by IoT to reach its full potential

On-demand Engagement

Engage granular services and features on-demand and seamlessly in multi-cloud environments

Ecosystem Distribution

Consistent distribution of monetization functions across the ecosystem

Monetize Services Orchestration (SO)

In sync with SO leverage IoT “Servitization” with catalogue driven, traffic based monetization

New Networks Support

Monetize new capabilities and features of 5G, NB-IoT and Elastic networks

ODM

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IoT is the future of the industry and will develop using platform based business models

Vehicle-to-XIndustrial IoT

Tactile Internet

Customer Data

Network Data

3rd party application Data

Connectivity, Application, Monetization, Operations

IoT Telco Platform

IT Data Social Media

Data

OrchestratorMonetization

Monetization schemas and engines should evolve to become the key business enabler of the Telco Platform

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Monetizing ecosystem value creation

SP

IoT Producer

Prov 1 Prov 2 Prov n

Consumer

Producer

Catalogue

Catalogue

Simple &Frictionless

engagement

Monetize consumer services

Mapping & Routing

Intelligence

Monetize IoT Services

On-Line Settlements & revenue distribution

Revenue/Cost monitoring & Authorization

Forecasting & Recommendation

Loose-couple changes in IoT producer Catalogue from

changes in the SP catalogue

Multi-sourcing, avoidProvider lock-in

Cost

Revenue

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Engaging

Metering

Billing

Forecasting Orchestrator

Global Service Orchestration and On-Demand Monetization are key enablers for the IoT/IoE Platform

Policy

Orchestration

Monitoring

Analytics

Global Service Orchestration On-demand monetization

Operational and Business enablement functions should be distributed and consumed on-demand

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Monetizing IoT High Value Services

M2M Area Network

M2M Area Network

• Enabling On-Demand Business Models• Monetize global service orchestration • Leveraging Cloud & Elastic Networks

capabilities• Provide cost transparency and Pricing

flexibility

• Industrial digital transformation• Master E2E Service Delivery• From Brick & Mortar to Digital Services

Monetization• On-demand revenue streams needs dynamic

On-demand costs structures

HVS and Policy based monetization

Specific Industrial Business Models

On-Demand MonetizationCustomer

Data

Network

DataIT Data

Social Media

Data

3rd party application

Data

Connectivity, Application, Monetization, Support

DSP Telco Platform

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Product

Low Cost Product Creation

Rapid Configuration

Low Operational Cost

Agile Implementation

Network Attributes

Type

Nature

Capacity

Features

• Traditional• Elastic (SDN/NFV)• Data Centers

• Access• Cloud• IP & Transport

• Utilization• Bandwidth• Operations

• Throughput• Bandwidth• Latency, Slicing,..

Rapid Service Assembly

Integrated virtual monetization function

• What is a Product?

• What is a Service?

• How are they created?

• How are they Ordered?

• How quickly are they

Instantiated

Product Life Cycle Support

Getting the most from 5G and Elastic Networks

System of Engagement

System of Records

System of Insight

© 2018 TM Forum | 13© 2018 TM Forum | 13

IntroductionODM Challenge and Value Proposition

The ODM Catalyst

• Engaging services on-demand on multi-cloud environments• Distribute monetization across the ecosystem• Enabling monetization on demand• Monetize elastic networks

© 2018 TM Forum | 14

Marketplace for Telcos implementing 5G & IOTAn online platform for hosting the transactions of products & services

5G Telco & IOT Provider

•Marketplace host

•Product catalog

•Services catalog

•Network slice creator

•Marketplace fulfillment, ordering & orchestration

Vertical Industrial Sellers

•Sales catalog for consumers

•Additional services on demand

•Order initiator

End Consumer

•Monitor and meter services

•Change and upgrade

•Initiate service tickets

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Marketplace- product near best practices & processesSupport for eTOM

Selling

Product Configur

ation

Pricing & Quoting

Order handing

Enterprise & back-

office integrati

on

Selling

•Network slice creation & configuration

•Onboarding of Industrial Sellers

•Seller monitoring & performance

Product configuration management

•Product configuration including availability compatibility and eligibility

•Import external product catalogs such as from suppliers

•Product consistency, promotions & presentation

Apply Pricing & Quoting

•Pricing quotation rules & constraints

•Discounting & commissions for sellers

Order handling

•Order orchestration & basic decomposition

•Order tracking & tracing

•Order history,

Enterprise & Back-office Integration

•Integration to external fulfillment

•Integration to supply chain

•Integration to financial planning & receivables management

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Customer Inventory

Storefront & APIs

Product Catalog

Key components of a 5G IOT MarketplaceUse of TM Forum standards

• TM Forum SID compliant product catalog & customer Inventory

• Integration with underlying Telco systems

• Support for required hierarchical products

• Manage the full product lifecycle

• Ensure integration to the broader ecosystem

• Native microservices & headless commerce

• TM Forum REST open APIs

• Single page applications at the end consumer front

© 2018 TM Forum | 17© 2018 TM Forum | 17

IntroductionODM Challenge and Value PropositionThe ODM Catalyst

© 2018 TM Forum | 18

Use Case: Kr4U

• Sharing car in the style of Rbnb. Car owners register their cars and Kar4U brings connects them with users. KAR4U provide services to car owners to better rent their cars and assuring the cars are well used, managing eventualities and protecting them against theft. It also proposes offers to the Car Owners for car tune-up, maintenance or assurance. For users, it provides access to a wide offering of options for car rental, assures quality and security of the cars, and offers additional services on demand.

• The platform monetizes from transactions between users and car owners, but also from the provision of additional services (digital and O2O), notably it could monetize for the targeted advertising depending on the user profile, the taken journeys and the car location.

© 2018 TM Forum | 19

Kr4U Services Distribution

IoT Telco Platform

Kr4U Application*

Car UserCar

Owner

Partner

Provider

Application Services

Platform Services

Consumer registration and booking

Catalogue & Monetization services

Service Fulfilment

Preventive maintenance plan

Session management and control

Automated OSR Service Assurance

Authentication services Location services Video services Tracking services Virtual call center

Recommendation and Advertising and PromotionsTravel and parking plan

Producer registration, installation and activation

Schedule management

* Implements Device Management and control And Customer interaction and interaction management

Car monitoring

Partner management

Connected car add-on services

Partner supportPromotions and advertisement

Car tech support

Insurance

Parking

Advertiser

Advertisement & Promotions

© 2018 TM Forum | 20

ODM Catalyst: CSP IoT Platform

• Market Place module is SAP Hybris (yellow). (No need to provide HW)

• Modules within the light blue boxes are ZSmart components part of the core CSP IoT Platform

• Modules within the darker blue box are Zsmart modules to be instantiated as part of the Application Provider Stack

• ZMC module is going to be installed in public cloud

• The rest of ZSmart modules are going to be installed in the IBM Power machines

• SDN-O and NFV-O controllers (and virtual network compents) are going to be simulated by stubs

• The IoT platform services are going to be provided from Alibaba Cloud

SDN-O

SDN Controller

Capability Open Center

Provisioning

NVFI

vIMS vEPC

VIM/VNFM

NFVO

Virtual mobile and IMS core

ZMC

SDN Network

OCS

Cross DomainOrchestration

Modeling

BPM

OLC

PCRF SPR

Any – OCap Center

Catalog

Inventory

Policy

Analytics

Bill ing

OM

Market Place

IoT Application & Service

Terminal and Sensors

Device & Session

Mngmnt

CognitiveServices

Application Development Enabler

IoT Platform

Cat CC

© 2018 TM Forum | 21

SDN-O

SDN Controller

Capability Open Center

Provisioning

NVFI

vIMS vEPC

VIM/VNFM

NFVO

Virtual mobile and IMS core

ZMC

SDN Network

OCS

Cross DomainOrchestration

Modeling

BPM

OLC

PCRF SPR

Any – OCap Center

Catalog

Inventory

Policy

Analytics

Bill ing

OM

Market Place

IoT Application & Service

Terminal and Sensors

Device & Session

Mngmnt

CognitiveServices

Application Development Enabler

IoT Platform

Cat CC

Enabling the Application Provider Stack on-demand

• Connectivity Requests

• Allow IoT-APs to stand up their own SDN environment that operate on their virtual network

• Enable network and connectivity services such as vEPC, vCPE, firewall capability, IPv4 Network Address Translation, Session Border Control, Application Acceleration, Deep Packet Inspection etc.

• Sim Cards and inventory network management functions

• Setup of connectivity services including SLA.

• Network service level fulfillment and assurance services (Control Layer API)

OCS

OLC

PCRF

SPR

Catalogue

Customer Care

IoT serv

App provider capabilities

App Provider Stack

Req

ues

t fo

r C

on

nec

tivi

ty

Req

ues

t fo

r Io

T A

pp

Se

rvic

es

Req

ues

t fo

r B

usi

nes

s En

able

men

t Se

rvic

es

The CSP IoT platform opens network, IoT and business & operational enablement

capabilities needed for a IoT Application provider to create and deliver specific IoT offers

to the market.

IoT Business Idea IoT Application

IoT-Services Requests

• Allow IoT-APs to use proven and

sophisticated IoT/IoE application services

to create their own offering

• Management of sessions and devices • Network connectivity

• Device configuration

• M2M session policy management

• Management of Cognitive and Security

services• IoT Service modeling

• IoT service assurance

• RT AI and Analytics

• Application Development Environment• Application Development Environment

• IoT service fulfillment, assurance and monetization SDK

• RT AI and Analytics SDK

Business & Operational Enablement

• Allows IoT-APs provider to commercialize,

monetize and operate the services

enabled by its own stack

• Unified Catalogue Management • Integrates Customer facing and Resource facing services

(network, devices, applications)

• Supports devices and terminals (physical/virtual)

• Device configuration

• M2M session policy management

• Closed-loop elastic operation • Zero-Touch fulfillment

• E2E service assurance

• On-demand functionality utilization

• Elastic resources utilization

• On-demand Revenue Management

process• Unified Revenue Management

• RT Big Data revenue analytics

• Dynamic revenue policy management

© 2018 TM Forum | 22

Marketplace- Front-office & back-office integrationHeadless commerce based on TM Forum Open APIs

SAP Hybris Commerce Microservices Library

SAP Hybris Commerce as the 5G Marketplace

Product Catalog

(TM Forum SID)

Customer Inventory

(TM Forum SID)

Network Slice Owners Channels

SDN-O

SDN Controller

Capability Open Center

Provisioning

NVFI

vIMS vEPC

VIM/VNFM

NFVO

Virtual mobile and IMS core

ZMC

SDN Network

OCS

Cross DomainOrchestration

Modeling

BPM

OLC

PCRF SPR

Any – OCap Center

Catalog

Inventory

Policy

Analytics

Bill ing

OM

Market Place

IoT Application & Service

Terminal and Sensors

Device & Session

Mngmnt

CognitiveServices

Application Development Enabler

IoT Platform

Cat CC

© 2018 TM Forum | 23

buys: network aas

Offerings: - Connectivity- Enablers- IoT services- Ott services

Offerings: - Car aaS

End Customer

Car Owner

1 2

3

The car operator sets up the RFSs, CFSs, PSs, SPOs, BPOsThe end customer rents a car aaS from the car operator

The car operator opens the platform for other car owners A car owner can see the product specifications and creates product offeringsThe end customer rents a car aaS from the car operator

A network opens the ecosystem as-a service => a set of SPOs/BPOs in the catalogA car operator buys <network> aaS from telco operator

E2E Scenario with SAP Hybris Commerce Product CatalogImplementation of TM Forum SID standard

© 2018 TM Forum | 24© 2018 TM Forum | 24

Thank You!