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TABLE OF
CONTENTS
MEETING CUSTOMER NEEDS SERVICE OFFER
PERSONALIZATION AND PARTNER COLLABORATION
Executive Summary 3
The Evolving Communications Marketplace 4
Business as Usual is Almost Dead History is Like That 4
Life Changing Services are a Critical Next Step for Business Users andConsumers 5
Large Enterprises Are Changing Too 7
What CSPs Need To Do To Remain As Industry Leaders 8
A Digital Marketplace That Really Works Personalization is the Key 9
Enabling Customer Satisfaction One Size Doesnt Fit All 11
User Device and Network Capacity Upgrades Enhance Customer Usage 12
Cloud Delivered and Network-Based Value Added Services 13
Flexible Data Usage and Payment Structures Accommodate New Service
Introduction 13
Customer Engagement with New CSP Business Models 15
New Business and Operations Requirements 16
How Change in Business Strategy Yields the Right Results 19
The Last Word 21
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MEETING CUSTOMER NEEDS SERVICE OFFER
PERSONALIZATION AND PARTNER COLLABORATION
EXECUTIVE SUMMARY
The communications industry is very different now as compared to its early beginnings.
Yet, the converged communications marketplace continues to evolve through the
collaborative efforts of not just Communications Service Providers (CSPs) but key
players from related industries including the computing IT, entertainment, media and
advertising sectors. This evolution is driven, to a large degree, by: advances in fixed and
mobile network technology; continued evolution of user devicesespecially mobile
devices; progress within the cloud services market; acceptance of social networking by
both business and personal users; and an exploding mobile application market. It is
changing every aspect of life for those that engage it directly and in a more subtle
manner for those that dont.
Of most significance is the realization that CSPs are no longer the end-to-end provider of
what customers want. Alluring new services for both business and consumers now
involve the resources from multiple suppliers working in collaboration with the CSP
community to define, deliver and support the right stuff at the right time. But simply
bringing service components together isnt the full story either, as modernized CSP
business and operations support systems will play a significant role towards the offer of
multiple service options, payment plans and usability controls designed to meet
practically any service configuration and customer request.
Change in a CSPs business strategy to include these options is now a must, since a
critical marketing opportunity for the CSP global community is finally here. CSPs now
have a golden opportunity to increase customer loyalty by using flexible service definition
and personalization features to deliver what customers want.
To capitalize on this opportunity, a number of business and operations management
functions must change to properly define new service offers and to update service
options in minutes, hours or days, as market conditions dictate. From a customer
perspective, it means delivery of service options in a pick and choose fashion and
pricing plans with flexibility to offer bigger discounts according to factors such as
advertising involvement, number of selected service options, usability controls, external
partner-provided components and competitive pressures within a specific location. It also
means orchestrating complex service orders, with both internal and external parts, so
everything comes together at the right time and in the right sequence. Finally, it means
defining market pricing, collecting customer revenue, and associating revenue share
Of most significance the realization thatCSPs are no longer thend-to-end provider what customers wantAlluring new servicesfor both business andconsumers now involthe resources frommultiple suppliersworking incollaboration with thCSP community todefine, deliver andsupport the right stufat the right time.
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amongst suppliers in near real-time, as competitive pressures increase and customer
service options expand.
This report will explore each of the areas just described, namely: what the
communications market is today; what the key business opportunities are that CSPs can
engage in now to increase customer loyalty; and what the longer-term role is that CSPs
should strive to fulfill as market evolution continues. It will provide numerous examples
about what operators in various geographies have found to work well for their customer
base already, and define several operations and business support systems requirements
to enable such change in business strategy for the future.
THE EVOLVING COMMUNICATIONS MARKETPLACE
For anyone who has experienced the convenience that 3G, and now 4G, mobile
technology affords, life today is very different from when communications werefacilitated using a voice and text messaging package with an early generation 2G number
phone. Todays mobile communications environment, blended with smartphone features
and combined with access to an increasing array of applications for business and leisure
use, is now the norm. From a customer perspective, todays massive maze of technology
brings to mind several key questions that beg to be answered such as:
What got us to this point? Why is an affordable mobile data plan, combined with applications and content, so
important for CSPs and the customers who use them?
How are large enterprises affected by market evolution? What should CSPs consider if they are to remain as leaders in this changing
environment?
How does a CSP maintain customer loyalty when the market offers so many choices?Business as Usual is Almost Dead History is Like That
Until just recently communications services were sold the same way for the last 150
years. The business of CSPs was to bring the best network technology to the publics eye
and keep them excited about it. In about 2005, a new mantra began to form around
support for the customer rather than just the sale of technology. At the same time,mostly due to customer demand, the communications sector started to blend with key
parts of other industries, including computing IT, media, entertainment and to a lesser
extent advertising. All of them now contribute significantly, but in different ways, to what
is fast becoming the convergent communications marketplace.
This evolutionary collaboration wasnt entirely planned, although key decisions early on
to build next generation networks using the IP protocol certainly helped. It is highly
likely that if a dedicated effort had been made in times past to bring this marketplace
together, there would still be committees arguing now over the right architectures (and
Support for thecustomer, from a purelybusiness perspective,with focus onaddressing end-to-end
customer problems, isstill a major industry-level Achilles heel.
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there are) to make everything interconnect in the best technological fashion. Few if any,
would have discussed the most cost effective manner or the most operationally effective
way to generate the most revenue to satisfy the greatest number of customer needs.
Support for the customer, from a purely business perspective, with focus on addressingend-to-end customer problems, is still a major industry-level Achilles heel.
Life Changing Services are a Critical Next Step for Business Users and Consumers
Technology evolution for the sake of doing something better and faster, and to a lesser
extent cheaper, will continue in the months and years ahead. However, it is mind-
boggling to see the level of business opportunity that is available now for those who
know how to monetize technology the smartest. In fact, we as an industry are at a
crossroads involving more innovative powers at our disposalcollectively from our
enhanced abilities to share informationthan from the combined discoveries of the last
two centuries. The challenge lies in using these powers to better enable and moreeffectively create an environment of business opportunity geared to support the needs of
customers in both mature and growth markets.
While not perfect, the communications marketplace now offers a variety of capabilities
that many thought would never come together. Shown in Figure 1 below, the
collaboration and competitive cooperation of the convergent communications
marketplace has led to a new industry mindset designed to deliver life changing
services for consumers and business customers.1 These service packages come in multiple
varieties and combinations, with the current triple and quad play offers the most
common in some markets, and very specialized content-based data plans in others. They
are differentiated through a CSPs ability to uniquely provision, bill for and support suchservices.
We as an industry ara crossroads involvinmore innovative powat our disposalcollectively from ourenhanced abilities toshare informationthan from the combidiscoveries of the lastwo centuries. Thechallenge lies in usingthese powers to betteenable and moreeffectively create anenvironment of businopportunity geared tsupport the needs ofcustomers in bothmature and growthmarkets.
1 Customer life changing services are defined by Stratecast as any combination of network capabilities, downloadablecontent, cloud-based applications, and user device features for addressing a variety of lifestyle preferences tied to business,social or personal interests. These complex offerings can involve a number of capabilities, alone or together. They arefacilitated today, especially for the mobile world, through network technology advances and user device evolutionsmartphones and netbooks. They apply to both consumers and business customers.
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Figure 1
Life Changing Services: People Want Things That Make Life Better
For example, customers who have experienced interactive video, any number of
applications for advanced mobile devices, voice-based web search, mobile banking, mobile
TV, remote medical device monitoring, and distance learning say that, compared to the
way things were just a few years ago, these services have indeed made life better. This is
most recently evidenced by the rapid increase in data usage traffic on both fixed and
mobile networks as users and enterprises alike take advantage of traditional voice and
text services, along with more advanced capabilities including mobile applications, user-
generated and studio-produced video, interactive entertainment, and now cloud-based
applications for both personal and business consumption. But what lies ahead?
Services that work well now, will see enhancements ahead to keep customer appeal
fresh. They will be enabled by many factors such as technology change at both the
network and user device level, evolving regulations, service options from over-the-top
competitors that used to be the exclusive domain of network operators, advances within
the virtual services (cloud computing) market, and further adoption of social networking
functions by business customers and consumers. Finally, other effectiveness
improvements and customer services that may not be available now will become such
before long.
In a different light, services offered in some evolving markets today will be made
applicable in various mature markets in the coming months. For example, mobile banking
and payments servicescommon in Africa, India and, to a lesser extent, in SE Asiaare
seeing heightened interest from CSPs in both North America and Europe. In like manner,
services designed for initial introduction in mature markets, such as interactive
entertainment or downloadable content, are spreading into many emerging markets in
response to customer demand.
Customer life changing services are any combination of network capabilities, content, anduser device features for addressing customer preferences defined by business, social or
personal interest needs.
Converged NetworkResources
+IT Databases &Applications
IP
PSTN
Mobile
Network Connectivity
and and =
Life Changing servicesfor consumers and for
business customers in
all industries:
Education
Government
Financial Services
Retail
Manufacturing
Transport & Logistics
Insurance
Healthcare
Hospitality Services
Public Services
Others
Applications & Content
Netbook
PC
User Devices
Tablet
Smartphone
Source: Stratecast
Services offered in someevolving markets todaywill be made applicablein various maturemarkets in the comingmonths. For example,mobile banking andpayments services
... services designed for
initial introduction inmature markets, such asinteractiveentertainment ordownloadable content,are spreading into manyemerging markets inresponse to customerdemand.
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Large Enterprises Are Changing Too
With global expansion through organic growth and acquisition, most large enterprises
now rely on computing capacity, data storage and application functionally deliveredthrough a wide area network (WAN) uniquely defined for each organizations global
presence and business requirements. In effect, this is what public and private clouds are
all about.
Use of life changing services such as telepresence conferencing, video calls, remote data
storage, and off-site business applications, are defining a growing number of trends within
this elite group of CSP customers. These trends impact the core of any corporate IT and
network infrastructure including application performance, network capacity needs and,
ultimately, business efficiency. They are:
Data Center Consolidation Enterprises are consolidating branch-level datafacilities into regionally or centrally located data centers as a way to cut costs andsimplify management. With fewer applications residing on the users siteor even in
the users countrymore applications are accessed via the WAN. The increased
distance can cause noticeable degradation in latency-sensitive applications, especially
with networks spanning one or more continents.
Network Convergence and Policy Control MPLS technology allows theenterprise to converge multiple traffic typesvoice, video, data of varying
protocolson the same physical pipe, rather than across separate networks for each
kind of traffic. This enables enterprises to better and more cost-efficiently utilize
bandwidth. However, it also creates a situation where various traffic types are vying
for the same physical bandwidth. Without an effective customer-centric policyreference and enforcement strategy, to identify and prioritize traffic based on
application usage, business priority, and customer type, application performance will
likely suffer.
Increase in Remote Workers and Partner Communities The headquarters-branch corporate model has given way to the corporation without boundaries, in
which global workers and partners require access to behind-the-firewall applications
from anywhere, via any device especially mobile devices. Enterprises need tools to
help them to deliver an acceptable (if not yet fully consistent) experience for every
user, regardless of location, device, or access connection.
Explosive Increase in Consumption of High-Bandwidth Applications Streaming media, VoIP, telepresence conferencing, and collaborative applications
consume an increasingly large amount of enterprise bandwidth. The fastest growing
use of WAN facilities is for personal web-surfing, including bandwidth hungry video
sites such as YouTube, sporting sites, and social networking sites. But the same logic
can be applied to different corporate sites performing different corporate functions,
such as headquarters vs. an R&D facility vs. remote sales office. The growth in traffic
speaks to the need to manage user priorities according to a dynamic corporate
hierarchy defined by business need and not just management status.
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As a result of these trends, enterprise IT departments are seeking solutions that will
allow them to send more mission-critical traffic over their global networks, faster and
with high quality, without investing in additional bandwidth. They are looking for
expanded CSP service support functions to keep service quality high and applicationavailability at the same level (or better) to what internal data center operations could
deliver in the past.
What CSPs Need To Do To Remain As Industry Leaders
Industry pundits, globally, have been shouting about the monumental transformation
which the new communications marketplace has undergone and will continue to go
through for the foreseeable future. There are a growing number of business drivers, as
shown in Figure 2 below, that have combined to move the 150-year-old CSP technology
sales model into new directions. For example, the traditional fixed-line voice or mobile
service strategy has been replaced with multi-technology, multi-service bundles includingtriple-play (voice, video and data) and quad-play (fixed line voice, broadband internet,
mobile and IP/Cable TV) offers. But that was just the beginning.
Figure 2
New Business Models and Life Changing Services are Todays Business Reality
Customer Service Enablers
Broadband Connectivity
User Device Availability
Online Storage and Security
Network Services
Customer Definable Controls
Integrated Business Solutions
Interactive Content
Embedded Advertising
Social Networking
Others
Traditional Fixed or Mobile Access
Integrated Multi-Technology as Triple or Quad Play
Interactive Services
Target Marketing
Advertising Sponsorship
Multi-Industry Collaboration
Machine-to-Machine and Machine-to-Human Interactions
Market Drivers of Change
New Business Models Life Changing Services
Source: Stratecast
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Interactive functions such as external content sources and advertising now provide
enhanced value and solution variety. Service delivery platforms bring multi-technology
and value added service options to the fray, while advanced business and operations
support capabilities supply elements of customer-enabled control. Combined, thesebusiness enablers now provide a means for CSPs to implement business models that
include more dynamic capabilities and customer involvement than traditional voice and
data access services could ever do. In some cases, this creates dependencies tied to the
analysis of customer service usage data to better fit new solution offers with customer
expectations. It also means that customers now have the opportunity to define what
components constitute a service, the levels of control over how a service will work,
when or where it will work, and under what sets of conditionsfinancial and
otherwisethe services are allowed to work.
CSPs must go beyond offering services based mostly on a collection of technology silos
such as triple-play or quad-play bundles. Increased customer interest in life changingservices implies that new business models are now a must, to augment shrinking levels of
traditional services revenue and to better address customer satisfaction, especially in
highly competitive markets. It also means that as business evolution accelerates, CSPs
that can concurrently support multiple business models will ultimately gain an
upper hand in the race to keep customers satisfied and churn rates as low as
possible.
A Digital Marketplace That Really Works Personalization is the Key
Success in todays converging services marketplace is about meeting the end-to-end
needs of customers, not just in the sale of network-enabled technology. Solving customerproblems breeds loyalty and increases customer confidence, even when many service
options may not be offered at the cheapest price available. End-to-end customer-focused
solutions certainly apply at the business customer and enterprise level, where many are
looking to incorporate mobile services into the goods they provide. It also applies at the
consumer level, as long as innovation keeps delivering new service options that
customers like with pricing at levels they will accept. Accomplishing both requires CSPs
to work from a retail mindset in catering to not just enterprise customers but also to the
needs of individual consumers.
Consider how the events of June 2007 significantly changed the industry. The first touch-
screen mobile user device came out of nowhere to win over the minds of consumers. Itcontinues to do so today with several smartphone and tablet PCs. What made it such an
overnight sensation?
Touch screen technology gives customers the feeling of control by simplifying the human-
to-technology interface. For many, this provides flexibility and stimulates a desire to try
new things, which often results in higher levels of spend. It energized a weak mobile app
industry at the time, to captivate customer attention the way interactive gaming drove up
demand for high speed fixed-line bandwidth. Today, as the mobile app business grows, it
CSPs must go beyondoffering services basemostly on a collectioof technology silos suas triple-play or quadplay bundles. Increascustomer interest in lchanging servicesimplies that newbusiness models arenow a must, to augmshrinking levels oftraditional servicesrevenue and to betteraddress customersatisfaction, especiallin highly competitivemarkets.
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fuels the need for better user device technology and the cycle continues. The element
of personalization will continue to play a prominent role in the drive for market
expansion and customer satisfaction.
There are potentially other wow factors making their way to a mainstream customer
audience, as shown in Figure 3 below. These include cloud-based business applications;
evolved business and consumer mobile downloads; integrated utilities control or smart
metering; remote healthcare monitoring; live textbooks, distance learning and
collaborative discovery; telemetry services associated with the automobile industry; and
integrated hospitality services, to name a few.
Each of these industries are designed to deliver a continuous flow of life changing service
options, with the potential to impact the customer as forcefully as anything that has
happened in the past, including the most recent advances in mobile user device
technology. Business success will be measured in this environment by how well a CSP can
bring such components together in a customer-appealing manner; how quickly new
service options can be implemented; how simply they can be displayed in a virtual online
store; how flexibly they can be priced; and how easily they can be supported when the
customer needs help.
Figure 3
The Digital Marketplace Involves Personalization and Customer Focus
Stratecast believes the next wave of industry growth in the converged communications
marketplaceor, more characteristically, the next generation digital marketplacewill
come from services that use the capabilities of many key enablers to address customer
demands. The most significant are:
Touch screentechnology givescustomers the feeling ofcontrol by simplifyingthe human-to-technology interface.For many, this providesflexibility andstimulates a desire to trynew things, which oftenresults in higher levelsof spend.
Customer Life-Changing Services Begin
2011+ Personalization The Age of Business Opportunity. Enabledthrough advanced user device evolution, high-speed broadband access,cloud services, and new CSP business models designed to satisfy end-to-end customer needs. Supported through f lexible service creation, multi-industry collaboration, a CSP retailer mindset, flexible order orchestration,customer usage analysis, predictive intelligence, integrated customersupport across all channels and technologies, real-time rating & charging,and customer self-care.
Apps
Personalization Enables the DigitalMarketplace
RegulatoryTV, Internet, Fixed and Mobile Phone
Triple/Quad Play Services
2009 Customer Centric User Experience. Enabled by userdevice evolution, broadband network technology, changingregulations, app development, and some cloud services. Nowsupported through service bundles, downloadable apps, user-generated video, studio-produced entertainment, self-serviceportals, and the rise of social networking.
Multi-industry Collaboration
PublishingHealthcare
Education Public
Services
Retail
Utilities
Transportation
Cloud Services
Vending
2011+2009
Evolving Business and Consumer Apps
Source: Stratecast
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An always on, always available broadband connection from any user device. Access to digital content or durable goods from external suppliers in multiple
industries.
Ability for customers to define service packages from a group of components to bestmeet specific needs, then allow change to the assembly of these components into a
new service subscription at any time.
Options for customers to define multiple service definitions to fit their needs, muchthe way user profiles are set up on a shared user device today.
First-hand control over how such services can be consumed or paid for according tocalendar definitions or financial restrictions.
Customer self-care capabilities, through a fixed or mobile connection, to meetessential needs tied to service ordering, technology issues, and/or billing concerns.
Customer care capabilities that cover all technology silos within a single system thatmay define a service package or user profile.
A persistent memory of customer ordering or inquiry details across differentcustomer access channels including an online virtual store, retail sales outlet, or
customer call center. Allow customers to start an ordering or trouble reporting
session in one channel and finish in another.
Flexible pricing models to capture the needs of all customers in all markets, with theability for customers to pick-and-choose the payment options that best meet their
individual needs and service selections.
Dynamic bandwidth allocation combined with flexible spending control to providecustomers with the greatest value for the best price.
CSPs have a bounteous opportunity to seize the moment by adding to this list of raw
ingredients flexible business support systems (BSS) and operations support systems
(OSS) that can enable service offers comprised of not just network-based features or
digital content, but appealing usability functions. This creates opportunities that can help
them to fully embrace a retail mindset, even as the sale of technology continues to be the
dominant source of CSP revenues today. Through this level of interactive involvement,
personalization offers are created; and customer willingness to stay with organizations
that innovate to address their needs increases dramatically.
ENABLING CUSTOMER SATISFACTION ONE SIZE DOESNT FIT ALL
While much can be said about customer life changing services and a digital marketplace,
there are several CSPs that have already embraced some parts of a customer-centric
approach to business. There are several examples to point to, which can be classed
around four general categories:
User device and network technology enhancements
Through this level ofinteractive involvemepersonalization offerare created; andcustomer willingnessstay with organizatiothat innovate to addrtheir needs increasesdramatically.
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Value added services from network capabilities and cloud providers New services enabled from flexible billing and pricing plans Customer engagement in business models that include more than network access
functions
User Device and Network Capacity Upgrades Enhance Customer Usage
Through touch screen technology, mobile user devices such as smartphones and tablet
PCs make the human-to-technology interaction more easily consumable. Network
infrastructure updates have also enabled mobile broadband connectivity that starts to
rival some fixed-line connections. As a result, the user experience is better today than
even three years ago, due to faster video imaging, improved internet sessions and
interaction with cloud-based service offers. This combination now enables the previously
nascent mobile application market to flourish, and has allowed CSPs with advancednetwork solutions to offer value added services (VAS) that hold high customer appeal .
Examples enabled by better user device and network access technology include the
following:
Rapid Customer Uptake of a New User Device Model The initial marketintroduction of Apples iPhone 4G model in June 2010 netted the sale of over three
million devices in three weeks due to pent up customer demand for new video
features this model offered and the cult following the iPhone enjoys the world over.
This, in addition to the millions sold in three previous versions since the iPhones
initial release in 2007, when it changed the mobile user device world with an
advanced touch screen user interface.
First-Time Mobile Users in Parts of India and China Over the past 24months, first-time mobile users in both India and China experienced an internet
session through a mobile broadband connection. This has led to increased attention
in these markets to use mobile broadband as a business tool to bring consumers to
market and to empower all users to engage through social networking for both
personal and business opportunities. Such options involve location-based merchant
services, posting of public transportation schedules in very rural areas, and updates
to prices paid for agricultural items.
Network-Enabled Single Sign-on Service An operator in Indonesia introduceda single sign-on service more than 12 months ago for customers to gain network
access to all of the technologies it provides including dial-up, DSL, VDSL, mobile
voice and data (2G, 2.5G, 3G, and 3.5G), and Wi-Fi. Service packages can be defined
by the user in terms of a monthly pre-pay or post-pay billing, with any combination
of voice minutes and data volumes. The subscriber has full visibility to all subscription
parameters and transfer rates.
Corporate Adoption of New User Device Technology A large CSP in NorthAmerica is presently issuing Apple iPads to its 1,000+ sales force to give them instant
access to company-specific sales tools and product information. These devices will
This combination nowenables the previouslynascent mobileapplication market toflourish, and hasallowed CSPs withadvanced networksolutions to createservices that hold highcustomer appeal .
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likely expand the operators business strategy of planning and provisioning network
capacity at the point of sale, which it does today from its many sales offices.
Cloud Delivered and Network-Based Value Added Services
To meet on-demand business needs, the traditional definition for infrastructure as a
service (IaaS) was initially fulfilled by IT companies whenever on-line storage or short-
term computing capacity was required. IaaS service offers now extend to on-demand
network capacity needs from the capabilities of many CSPs at both a regional and global
level.
Mobile broadband access, through the advent of 3G and 3G+ technologies, has spawned
considerable advances within the third-party application development domain that
address business and consumer needs for nearly all industry sectors. Free or for-a-small-
fee user features and applications now cover a wide spectrum, with many offered through
the software as a service (SaaS) business model.
Going beyond popular app storeswhere, for example, the Apple app store offers
300,000+ downloadable applications for the iPhone, with specialized stores also focused
on the iPad and Macthere are many other cloud-based applications from a growing
number of over-the-top (OTT) providers. With the right technology capabilities, CSPs
can also deliver advanced services that rival or exceed what OTT providers can offer.
Examples from each category are:
Learn English Service in Bangladesh An operator recently introduced a learnEnglish in 10 minutes a day service for a very small fee, based on either a
subscription model or on a per-received basis. It generated a response rate at morethan 1000% above initial expectations of a few thousand subscribers.
Globally Available Google Translate Service This application allows users,with a mobile or fixed-line broadband connection, to translate words or phrases
from 58 languages to any other. The user inputs a line of text, or speaks a phrase
then specifies the language for which the translation is required. While
conversational speech is limited at this time to a very small number of language
combinations, Google continues to advance this for free service to any registered
Google user. The service is not dependent on the Android operating system.
Globally Consumed Business Subscription-Based Applications These havebeen in use in some cases for more than 10 years. For example, salesforce.comstarted in March 1999. Several others include: amazonservices, OneBiz, Skype,
SlideShare, Facebook, Microsoft, Averiware, WebEx, and Citrix.
Flexible Data Usage and Payment Structures Accommodate New Service
Introduction
Affordable voice calling and data plans have encouraged business customers and
consumers to utilize available network capacity to access applications, entertainment
sources and to engage through social networking. Convergent real-time rating &
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charging, coupled with dynamic provisioning capabilities and a flexible service creation
infrastructure, allow operators throughout the world to rapidly introduce competitive
new service offers.
Service models already implemented through BSS functions, such as real-time rating &
charging partnered with certain policy-based features include: pay-per-use combined with
multi-technology add-on (e.g. network connectivity with content or applications, data
storage, or advanced security); customer loyalty rewards; shared subscription services;
metering of certain flat-rate service options; fast track high bandwidth (e.g. pay extra to
have higher bandwidth for gaming or other intensely interactive services on a metered
basis); and pay and get others free. Other examples from various global operators
include:
Converged Data Services Metered Offers A large convergent CSP in NorthAfrica presently offers data services that involve the combined use of its fixed and
mobile environments. Customers can subscribe to a weekly or monthly renewable
data subscription, which includes a combined traffic volume for both fixed broadband
and mobile. There is no contract commitment. The data plan is capped at varying
levels of capacity with commensurate pricing. It is executed on a pre-pay and post-
pay basis, such that after a subscribed package runs out, or when roaminga pay-as-
you-go model goes into effect. It uses a default option with daily cap of a pre-defined
volume and price. This option is also offered to service subscribers with no active
data subscription. Subscribed data packages are automatically renewed at the end of
each billing period (monthly or weekly) unless the customer instructs otherwise
through an opt-out online option. In essence, this operator is counting every data
package a customer downloads and uploads regardless of access technology, be itfixed-line broadband or mobile data.
Weekly+ New Service Introductions A large, Latin American mobile operatorintroduced over 60 new services in 2010. Armed with a flexible rating and service
delivery platform, it introduces services at a premium price and then, over time,
lowers the tariff as competitors begin to duplicate its offer. To keep a high market
share profile and breed customer loyalty, this operator typically reduces the tariff
below any competitive offer until it becomes almost free or until the competition no
longer is willing to provide the same service. To keep competitors at bay, this cycle
is repeated on average at more than one service introduction per week. For example,
providing subscribers with free minutes of voice, a f ree monetary level of data usage,
and certain free video content in celebration of a special event such as a birthday or
anniversary. Similarly, offering free text messages, minutes of use at certain times
during a holiday, or providing pricing plan options that only allow access to a single
website such as Facebook. The goal of this operators marketing team is to define
(and refresh) as many service offers as possible to reach every customer or customer
group for both businesses and consumers.
Convergent real-timerating & charging,coupled with dynamicprovisioning capabilitiesand a flexible servicecreation infrastructure,allow operatorsthroughout the world torapidly introducecompetitive new serviceoffers.
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Customer Engagement with New CSP Business Models
Network technology advances and application innovation push customer interests to new
heights tied to social networking and cloud-based services. This has caused a permanent
redirection in the way people associate, from business-level telepresence to one-on-one
experience sharing. It has also motivated different industries to incorporate mobile
communications into their business endeavors. Specific examples are:
Real Time Social Networking Many in the Under 30 crowd throughout theworld stay in-touch through live updates of their social network profiles. Through
affordable mobile data plans, user behavior has been driven from a static words and
pictures environment posted occasionally on a blog site, to real-time video-based
experiences that incorporate user-generated content. This increases demand for
more network capacity, but customer willingness to pay for increased usage has hit a
plateau with some operators. In other individual examples, excessive usage has led to
bill shock stories that have rippled through the internet with very specific detail.
SE Asia Targeted Advertis ing and Real-Time Customer Response ASingapore-based bread and pastry bakery used a classic loss leader advertising offer
held over a 10-day period. During this marketing campaign, at approximately noon
each day, the bakerys marketing offer was sent to the supporting mobile operators
entire customer base that was in the vicinity of one of the bakerys many locations,
for any bun purchased at a price of $0.10 SGD. The 40% response rate for this,
which consisted of an MMS message carrying the voucher offer, was well beyond
initial expectations and at an unprecedented level for the advertising industry at
large. This response rate and unexpected upsell of other items including drinks,
pastries and more bread made the campaign a major success.
Throughout the campaign the bakery operator was also able to make adjustmentsto the advertising offer to better control voucher redemptions in response to clarity
complaints from responding customers. While the campaign only used mobile
messaging, this mobile operator provided an integrated media platform that could
have simultaneously provided the same ad across the Internet and via a local IPTV
channel for a more expanded advertising reach.
Eastern European Municipal Parking Payment via SMS In an EasternEuropean country, harsh winter conditions, coupled with aging and poorly kept
meters, made parking in core metropolitan areas difficult. Drivers often complainedabout the lack of accessibility to the meters during periods of increased snow
accumulation, and about malfunctioning ones. A mobile operator in this country
teamed up with several municipalities to deploy a parking payment system via SMS
instead of the traditional coin payment process. Under the new system, citizens now
pay for parking by keying in a short code and indicating the length of time they will
be parked. The resulting charge is either deducted from a subscribers pre-pay
account or, for post-pay subscribers, it appears on their next billing statement. The
most tangible benefit of the solution is increased convenience to park. For the
municipalities involved, parking revenue collection has increased, while operating
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costs have gone down from the elimination of parking meter maintenance and from
not collecting or processing coins.
Eastern Africa Mobile Money Agent Network A major mobile operator inthis east African country launched a mobile money transfer service in early 2007 that
has since expanded to approximately 14 million subscribers, covering several Af rican
and Asian countries. Recent announcements show further expansion of the service to
southern Africa. It is a branchless, mobile phone-based money transfer service that
allows users to deposit and withdraw money from a network of agents (that includes
airtime resellers and retail outlets). The service allows users to deposit money into
an account stored on their cell phones, to send balances using SMS technology to
other users (including sellers of goods and services), and to redeem deposits for
regular money. The service is presently supported by a vast network of agents, with
more than 20,000 agents working within the originating countrys boundaries.
NEW BUSINESS AND OPERATIONS REQUIREMENTS
The rate of change in network and user device evolution, combined with regulatory
transformation and partner/supplier collaboration, has created a new world of business
focus for the global CSP marketplace. Delivering life-changing services comes with a
price, the price of improved operations. Critical for long-term business success will be
flexible BSS and OSS that support the digital marketplace. This is especially important as
partner-provided service components take on a more significant role with captivating
customer offers, as the always on and always available network connection is taken for
granted. Key requirements include:
Customer Self-Service Portal To lower costs and improve overall customersatisfaction, provide a means to show customers a detailed view of each product and
service, according to their specific needs, with the appropriate ease of purchase
mechanisms that are common with merchandise procurement over the Internet.
There should also be a way to partition the portal to allow customers to quickly
arrive at the right levels of choice or industry segmentation. This will likely involve
some level of analytics to understand customer buying patterns, service usage insights
and customer care history to get customers to try new things.
Customer Data Awareness Allow the same data to be used within each accesschannel to address a variety of customer needs, including: purchase of new productsor services within an existing account; define trouble reports about network
connectivity; discuss solutions for user device problems or content not performing as
expected; answer account balance inquiries; understand what services are subscribed;
recommend potential new sales ideas based on customer demographics; and know
what the customers last purchased item was and when it occurred.
Meeting this need requires back office and front office systems to be integrated, with
a specific focus on the flow of customer information between systems. It requires the
customer self-service portal to be integrated with these systems to allow consistency
Critical for long-termbusiness success will beflexible BSS and OSSthat support the digitalmarketplace. This isespecially important aspartner-provided servicecomponents take on amore significant rolewith captivatingcustomer offers.
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between a customers online experience, informed communication with a care agent,
or knowledge-driven interaction with a retail outlet technician. Consistent customer
data between systems also allows, where possible, simplified levels of data analysis
for new product suggestions and recommendations.
Integrated Solution Offer Inventory It is imperative for CSPs to deliver allparts of a solution offer in the same manner regardless of the access method the
customer may use. Meeting this need is much more than integrated order
management for network connectivity, be it mobile services or fix-line broadband. It
implies the use of a common product and service catalog to: keep track of network-
based connectivity; digital content; partner-enabled adjunct services such as cloud-
based data storage, applications, and entertainment; and durable goods. It also
implies that the online sales portal will use the same customer data as the customer
care and retail outlet to deliver a consistent message. In the words of more than one
well-entrenched service provider with operations in multiple global locations: theday will come where, to customers, high-speed bandwidth (mobile or fixed line) will
be a given, and the price that they are willing to pay will be for solution
capabilitiesuser devices and content designed to address an end-to-end need
delivered over the next generation broadband network.
Provisioning and Activation of Complex Customer Orders Orchestrate theconfiguration of services involving internal network parameters and external partner
information so everything is delivered in the right order and at the right time. Most
provisioning, order management, inventory and activation systems are focused on
support for network connectivity services, which will likely be just a part of the more
complex offers that now come into play. In this new business climate, a horizontalorder orchestration platform is needed to bring network-specific data together with
external content, application, or computing resources. It will need to interface with
installed CSP network-facing systems and external partner inventory solutions.
Integrated Sales Channels Allow a customer to start a purchase within onemedium, such as a self-service portal where items can be placed in a virtual shopping
cart, and then finish the process at a retail outlet or with a customer care agent from
the point where they left off. Meeting this need is a defining opportunity for CSPs
today, especially if a common product catalog is used to keep the various sales
channels synchronized and common customer data shared across all business
processes. For example, it implies that the in-store experience will involve resources
thoroughly trained in the product concepts and device features that are described by
the online system.
Partner Management There are two levels of partner management: 1 theinteraction between a CSP and various partners for the sale of end-to-end customer
solutions, e.g. network connectivity combined with application functionality; and 2
the accountability of goods or services redeemed by customers through loyalty
program offers.
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Meeting both needs means that a common product catalog and usage tracking
database is critical to manage the use of each product offer, composed of its various
parts, so that a proper accounting of revenue share is possible as customers consume
(and pay for) such services. Additionally, if partner-supplied services, products ordurable goods are redeemable through loyalty program points, then the right levels
of compensation to each partner must be acknowledged. For example, if a customer
redeems points for a durable goods item, how is the supplier compensated for that
item? Will the loyalty program be the same for all customers: e.g. consumers, small
business, and enterprises? Are bonus points allowed for dedicated customers versus
occasional users?
Integrated Delivery Function Deliver to customers from whatever accesschannel a request may come, with the same products/solutions and with the same
delivery promises relating to time and price. Products that always provide high value
and customer appeal should also be prioritized in the order they sell. Sometimesspecial offers or pricing options will only be reflected by one channel, as a way to
direct customer attention, but when this occurs it must be a controlled exception.
To maintain uniformity, details of such offers must be routinely communicated to the
other channels.
Meeting this need implies a common product and services catalog; common customer
data; an integrated service fulfillment process linking each sales channel; and a
common order management function that interfaces with major partners. A non-
integrated systems and processes environment can leave most customers frustrated
when an offer through the virtual online store isnt exactly the same as what can be
had from a visit to the retail outlet, especially if there are differences in price,feature functions and/or availability. A quality customer experience requires a clear
and consistent view of all features, services and accessories, regardless of access
medium.
Real-Time Revenue Management Collection of customer usage transactions,real-time rating & charging when applicable, customer-enabled policy controls,
customer notification and/or bill presentment, and account balance management are
but a few of the strategic business support functions that must be addressed. Not
just rating internally-generated usage transactions after the fact, but managing
information on a real-time basis from external suppliers, control functions enabled by
the end customer, and data from multi-technology silos such as mobile voice, mobiledata, and fixed-line broadband.
Loyalty Program Provide a common record of customer purchases involving userdevices, network equipment, digital content, and durable goods for defining a
customer loyalty points program. Allow connection to other partner programs so as
to deliver maximum end user perceived value. Meeting this need requires not only a
common view of customer data between internal systems, but sharing of the same
data with loyalty program partners that a customer may opt in for, either from a
points accrual or points redeemed process. A common product and services catalog
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or a separate loyalty program tracking database will need to manage the point
values for each subscribed service and usage of such services. Additionally, it
requires a redemptions log for tracking partner-provided goods or services to end-
user customers.
Customer-Centric Service Assurance (CSA) Fault and performancemonitoring of CSP network nodes and computing databases is strategic for meeting
the demands for carrier-grade service reliability and availability. However, when
external partner products, applications and services are combined with network
capabilities to deliver digital marketplace services, they must be monitored from a
customer perspective, to manage service quality, especially for business customer and
enterprise services.
Meeting these needs means monitoring all sources of data from the customer user
plane, content and application plane, network service plane, and network connection
level. CSA summarizes information around multiple parameters to note usage
patterns, trends and service preferences often needed by account managers,
customer care agents, planning engineers, marketing, operations teams, and executive
management, to better meet changing market conditions
Business operations requirements, from a delivery and revenue management perspective,
are getting more complex as life changing services are offered through multiple sales
channels to gain mainstream acceptance. This, as plain voice or voice/data access offers
which are still very much a mainstay for the global CSP community todaylose their
market appeal as stand alone options.
HOW CHANGE IN BUSINESS STRATEGY YIELDS THE RIGHT RESULTS
SingTel was one of the first major operators to address the customer solution offering
and not just technology sale approach to business. In early 2006, the company began its
transformation from a pure carriage services operator to its current role as a provider
of content rich multimedia experiences for its consumers, and a one-stop solutions
provider for its business customers.2 The company further backed up this strategy by
announcing in September 2008 that it aims to be the leading Infocomm Technology
(ICT) solutions provider among telcos in Asia Pacific in five years.3
SingTel solutions for both consumers and, especially, business customers include: end-
user device (mobile handset, PC, or industry-specific business enablement tool) where
necessary; managed network connectivity across multiple technology domains; security;
applications specific to a business need, established mostly by over 300 third-party
developers working with SingTel; SingTel managed network services; SingTel professional
services; and SingTel first-tier application support. These end-to-end solutions are
Business operationsrequirements are gettmore complex. This, plain voice or voice/daccess offerswhichstill very much amainstay for the globCSP community
todaylose theirmarket appeal as stanalone options.
2 The quotes pure carriage services, content rich multimedia experiences and one-stop solution providers taken from
SingTel 2008/2009 Annual Report, p 9.
3 See SingTel press release SingTel Aims to be a Leading Regional ICT Solutions Provider in 5 Years, September 22, 2008.
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generally offered to business customers and consumers using a monthly no contract
Software as a Service (SaaS) model.
SingTel also provides business solutions within each of its target industries cutting across
education, healthcare, financial services, logistics & transportation, and the hospitality
sectors. The SaaS model continues to attract customers to SingTel business solutions.
This is accomplished by placing one-time solution implementation costs at a minimum for
most customer implementations and then doing a good job in meeting customer needs.
What isnt discussed are the added application functions that many independent
software vendors (ISVs) are providing (for additional fees) on top of the core
solutions defined for each industry vertical. These offered capabilities continue to
evolve for addressing customer demand and market need.
While the business solution concept seems to be a very good deal for the customer,
whats in it for SingTel, which must also provide first-level support for these solutions?
SingTel explains that its future hinges on delivering end-to-end solutions to various
business problems rather than simply delivering network connectivity which customers
can now obtain from any number of suppliers. SingTel is therefore willing to take on the
risk of working with smaller ISVs and branding end-to-end consumer and business
solutions (including connectivity) under its name.
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Stratecast
The Last Word
Todays world of business complexity should be cause for concern, especially for CSPs
that have managed the customer relationship for communications services over the last
150 years. That concern lies with a CSPs ability to maintain the customer relationship
by offering services with high appeal and then collecting as much revenue from those
services as the market will bear. Clearly, the industry has never stopped evolving, as
change now includes more factors than at any other time in the 550+ year history of
mass communications. But change also means that, as a converged communications
services marketplace, we are at the edge of the greatest opportunity to capture
customer attention and to generate new ways of doing businessdue to our ability to
share and use informationthan at any other time over the past two centuries.
Change will persist as long as technology evolves, regulations advance, and customer
demand continues. It is the very essence of why business innovation and market
evolution will forever redefine the face of the new communications marketplace. It is
also the reason why digital commerce is essential for future business success.
Stratecast believes that the major components for enabling this success include a new
way of thinking about business in general; augmenting the 120 year old technology sales
model and replacing it new ways to gain customer attention and trust.
This means generating new service offers that include network and partner based
capabilities in hours and days, not months, as in times past. It also means offering
customer choice, not in which end-to-end service plans they want, but in the order or
inclusion of the piece parts they want to make unique services a viable reality for them.
As the under 30 crowd will attest, defining and then using digital services or cloud-
based capabilities that nobody else has yet, is the level of social attention that all seek.
When many have something, it is no longer cool. Hence, personalization in user
device, service options, mobile applications, and even billing plans is the secret sauce
that many CSPs have sought for a long time.
With each age of communications industry evolution, our society has improved,
significant business efficiencies have came about, and innovation has progressed.
Quality of life for those touched by these technologies has centered on personal
productivity enhancements through time-saving and distance-eliminating capabilities.
Gains in business efficiency have been achieved from more effective transmission of
information, often leading to new industries and the redirection of others.
Innovation has rapidly progressed to a new awareness of previously unimagined
opportunity. Customers are waiting to engage with operators that embrace new
ways to do business and new ways to use technology to make their lives betteragain,
and again, and again.
Karl Whitelock
Director OSS BSS Strate
Stratecast (a Division of
Frost & Sullivan)
mailto:[email protected]:[email protected] -
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ABOUT STRATECAST
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