5GWORLD Proactive Network Analytics for the Future Bob Fox Global Industry Leader – Telecommunications and Media & Entertainment IBM Global Business Services June 30, 2016
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%
0%
20%
40%
60%
80%
100%
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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
www.ibm.com/iibv