ibm smarter commerce order management for communications
DESCRIPTION
These are some of the questions a CSP should ask itself when determining whether or not they have the truly intelligent multi-channel order management capabilities they are going to need to accommodate the new demands of the empowered consumer. Can your customers order in one channel and pick up or return through a different channel? Do you have visibility into your entire inventory of handsets, accessories or consumer premises equipment, regardless of it’s location? Does your organization have the ability to rapidly adopt new solutions regardless of where or by whom they are fulfilled? Can you easily provide a single source for all order status updates and fulfillment progress across all components sold in a customer order, even if they are fulfilled from different solutions? Can your order management system dynamically change it’s processing behavior based upon real-time learning of it’s surrounding environment? Do you have the ability to take insight from the ordering system to better understand in real-time how your solution is performing?TRANSCRIPT
© 2012 IBM Corporation© 2012 IBM Corporation
Order Management for CommunicationsSmarter Commerce
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© 2012 IBM Corporation© 2012 IBM Corporation
Delivering greater customer experience means overcoming traditional challenges to order management in communications
The empowered customer today
expects to be able to perform any action in any channel without being expected to provide redundant
data
Collapsing customer and service order
management into a single platform
enables the CSP to reduce operational
cost while decreasing time to
market
The ability to incorporate catalog
definitions as well as real-time analytical insight into the OM
processing behavior is critical to reacting to dynamic market
changes
In the age of the empowered customer it’s
imperative that CSPs have the ability to rapidly add to their offerings through
fulfillment partnerships via 3rd
parties
Simplified Management of New Fulfillment
Solutions
Seamless CustomerAnd Service Order
Management
Catalog and Analytics
Driven ProcessingBehavior
anta
goni
stic
apat
hetic
advo
cate
Long Lead Timesfor Offering New
Services RequiringFulfillment
Divergent andRedundant OM
Solutions
Manual OMSolutions RequiringMultiple Changes
Cust
omer
Atti
tude
Customer Advantages to Cross-Channel Order Management
Traditional Telecom Order Management
Cross-ChannelFulfillment For the
EmpoweredCustomer
Channel SpecificServices and
Insight
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© 2012 IBM Corporation
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The empowered customer is demanding and elusive but can be rewarding for CSPs
----------------------------------------------------Customer advocacy in the retail industry is twice what it is in
the the telecommunications industry.
Antagonist
AdvocateApathetic
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Globally fewer than one fifth of customers were identified as advocates for their CSP.
Additional spend of advocates over
antagonists
12%
62% research via social networks 84% want to order online – return to store
They trust customer reviews 12x more than vendor statements A Facebook ‘like’ is worth 100 positive reviews by a stranger
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© 2012 IBM Corporation© 2012 IBM Corporationhttp://www.osstransformation.com/Time-to-Market
of CSPs say it isa key
differentiator
of CSPs sayit has a positive
impact on revenue
of CSPs say it achieves customer
loyalty
70%95%91%
up fromin 2008 59%
Time-to-market demands place further pressures on today’s order management systems and processes
Getting new products, services, and offers to market quickly and accurately across all channels is critical objective for CSPs
However, from 2008 to 2011 the number of service providers who could bring a new product to market in six
months or less FELL by 2%...4
© 2012 IBM Corporation
CSPs are expanding their service offerings to digital home and life services to compete with traditional and OTT providers
Jan 2011Feb
2012
Verizon announces Home Energy and Monitoring Control
AT&T introduces Digital Life Services…
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The de-coupling of voice and data traffic and revenue is forcing CSPs to look to outside partnerships and alliances to continue to create additional value for their customers with near-
neighbor services
How is your organization diversifying and growing it’s solutions for the empowered customer?
Apr2005
NTT DoCoMo launches financial creditservice… now has over 10 million subscribers…
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© 2012 IBM Corporation© 2012 IBM Corporation
Cross-Channel Order ManagementTrue Cross-Channel Product and Service Fulfillment:
– Can your customers order in one channel and pick up or return through a different channel?
– Do you have visibility into your entire inventory of handsets, accessories or consumer premises equipment, regardless of it’s location?
Managed Fulfillment Inside and Outside The Organization:– Does your organization have the ability to rapidly adopt new solutions regardless of
where or by whom they are fulfilled?– Can you easily provide a single source for all order status updates and fulfillment
progress across all components sold in a customer order, even if they are fulfilled from different solutions?
Catalog and Analytics-Based Order Processing:– Can your order management system dynamically change it’s processing behavior
based upon real-time learning of it’s surrounding environment?– Do you have the ability to take insight from the ordering system to better
understand in real-time how your solution is performing?
Smarter Commerce approach to order management
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© 2012 IBM Corporation© 2012 IBM Corporation
IBM Smarter Commerce helps CSPs to better serve the empowered customer through cross-channel order management solutions
Smarter Commerce Lifecycle
Service
Buy
Sell
Market
Servicing customerneeds across all
Interactionchannels
Selling and fulfillmentof products andservices acrossall channels
Sourcing,controlling and
procurement ofgoods and
services.
Targeted andpersonalizedmarketing acrossall customerinteractions
Cross-Channel Order ManagementEnables the coordination of order fulfillment
processes across a dynamic business network of customers, suppliers, and partners with extensive catalog and analytical driven processing behavior.
IBM Sterling Order Management
IBM Telecom Pack
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© 2012 IBM Corporation© 2012 IBM Corporation
Order Management
An order hub is a customer and service order management platform capable of handling:
Any DemandAny Offering Bundle
Any Process/ChannelAny Supply
While leveraging existing investments in core systems.
Order management choreographs the activities between capturing the order and fulfilling the order
DecompOrchestration
Fallout Promising
Pricing BundlingCatalog Offers
Guided
Opportunity to Order Capture
Order Capture to Fulfillment
ORDER HUB
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© 2012 IBM Corporation© 2012 IBM Corporation
Using an order hub to deliver a seamless cross-channel experience
BPM or Point2Point Layer Transformation
IPT
V T
ech
nic
al
Se
rvic
e F
ulfi
llme
nt
Wire
line
Te
chn
ica
lS
erv
ice
Fu
lfillm
en
t
Mo
bili
ty T
ech
nic
al
Se
rvic
e F
ulfi
llme
nt
Wa
re-h
ou
seC
PE
Fu
lfillm
en
t
IPT
V P
rod
uct
Ca
talo
g/O
MC
on
sist
s o
f th
e I
PT
V
pro
du
cts/
bu
nd
les
to b
e o
ffere
d
Wire
line
Pro
du
ct C
ata
log
/OM
Co
nsi
sts
of
the
wire
line
p
rod
uct
s/b
un
dle
s to
be
offe
red
DS
L P
rod
uct
Ca
talo
g/O
MC
on
sist
s o
f th
e b
roa
db
an
d
pro
du
cts/
bu
nd
les
to b
e o
ffere
d
Mo
bili
ty P
rod
uct
Ca
talo
g/O
MC
on
sist
s o
f th
e w
irele
ss
pro
du
cts/
bu
nd
les
to b
e o
ffere
dMulti-Enterprise Order Capture
Consists of ALL the ‘products, services, pricing and models’ which are singular or bundled components that make up the ‘offer’ to the
customer.
Cross-Channel Order ManagementDecomposes and choreographs of ALL the
customer and resource facing services’ which have been converted (transformed or
decomposed) from the accepted ‘offer’ and manages global inventory visibility and sourcing.
Transformation of Bundle
Serv
ice
Fact
ory
Serv
ice
Fact
ory
Serv
ice
Fact
ory
War
e-ho
use
Web
Chan
nel
Mob
ileCh
anne
l
Call
Cent
er
Part
ner
Rese
ller
Master Product Catalogs
Third Party Fulfillment
Any Demand
Any Offer
Any Process
Any Supply
Telecom Pack – TMForum Orchestration Services
Historical Approach toCSP Order Management
Smarter Approach toCSP Order Management
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© 2012 IBM Corporation© 2012 IBM Corporation
Install / Work Order
CPE Order
Single product catalog reference/interface containing both customer and resource facing services in addition to all physical products and work/installation requests
Support for fulfillment of bundledcustomer products across disparate and separate fulfillment systems, even those outside the four walls of the CSP
Lower cost of ownership/operations and faster time to market due to the reduced complexity and redundant systems
Single source of real-time overall and component order status throughout the order lifecycle.
Reverse logistics capabilities from any channel regardless of the ordering channel
Communications providers who are able to combine customer and service ordering platforms are at a distinct advantage
Customer Order
Management
Service Order Management
Customer and Service
Order Management
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© 2012 IBM Corporation© 2012 IBM Corporation
1st O
RD
ER L
EVEL
2nd
OR
DER
LEV
EL
- - -
A combination of workflow pipelines and catalog constraint logic provides the best combination of flexibility and downstream propagation of master catalog changes
Support for n-levels of recursive decomposition and choreography through customer and resource facing services
Allows for TM Forum SID data model standard compliance of network and billing orchestration activity
Triple Play OfferBundle XML
HubRule
Triple Play 1.0
Catalog Decom
p
Smarter Commerce enables catalog-driven customer and service order management
DSLAM 1.1.1.1 IP 1.1.1.2 PORT 1.1.1.3
Network Factory
Network Factory
Network Factory
Broadband 1.1 IPTV 1.2 VoIP 1.3
Catalog Decom
p
Catalog Decom
p
Catalog Decom
p
Broadband 1.1.1 Broadband 1.1.2 Broadband 1.1.3
Catalog Decom
p
Catalog Decom
p
Catalog Decom
p
3rd
OR
DER
LEV
EL
- - -
CUST
OM
ERO
RDER
SUB-
CU
STO
MER
FACI
NG
SER
VICE
SRE
SOU
RCE
FACI
NG
SER
VICE
SCU
STO
MER
FACI
NG
SER
VICE
S
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© 2012 IBM Corporation© 2012 IBM Corporation
Improving the customer experience requires a smarter approach to addressing order management in the cross-channel environment
X-Channel Demand
Orders can be captured in any channel - inside or outside the CSP
X-Channel Status
Event management and alerting frameworks allow for notification directly to customers in real time regardless of channel.
Supple-mental Orders
Multiple orders of any type can be created that maintain a lasting relationship and, if necessary, dependency on the parent order. Orders can be nested to any level desired.
Reverse Logistics
The ability to accept and disposition returns to any channel is critical for the customer experience. All returns are connected back to the original order for full lifecycle visibility.
Delivery + Service
Scheduling
Ensures the CSPs delivery and work-related commitments match inventory and resource availability in real-time enabling the selection of an individual service provider or allocation of an entire crew to ensure that all the customers’ expectations are met.
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© 2012 IBM Corporation© 2012 IBM Corporation
CSPs need a flexible and extensible order management solution to allow rapid ingestion of new selling and fulfillment sources
SupplyChain
Insight
Real-time inventory and capacity levels, advanced sourcing are available and managed inside or outside the four walls of the CSP.
Scalable and flexible integration with TM Forum compliant service calls for fast, flexible and re-useable integration capabilities.
RapidPartnerIngress
Multi-Enterprise
Native support for multiple enterprises within a single platform segmented by region, role, organization, etc. providing a personalized and definable view of the global supply chain by partners, resellers and suppliers
IntelligentInsight
Analytics and the resulting intelligence on key performance indicators for CSPs and their partners via dashboards and dynamic order process changes allows real-time monitoring, analysis and correction of the entire order lifecycle.
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© 2012 IBM Corporation© 2012 IBM Corporation
Analytics-led intelligent applications will help CSPs to evolve beyond catalog-driven order management
Intelligence “ON” the process– Enable users to respond to trends
through dashboards and key performance indicators
Intelligence “IN” the process– Embed analytics directly in the
workflow to enable users access to recommendations based on performance trends to make better decisions
Intelligence “DRIVING” the process– Evolving to leverage business
intelligence analytics along with automated decision-making capability
EnterpriseApplication Server Rul
eExisting Workflow
Web Server
OLTPDatabase
SOA Reports AdHoc
Reporting Server
Data Mart
ETL Process
Workflow process queries metricscalculated by analytics in execution
of the business process
User Interface
Business process screensserved to users
UI mash-upswith application
screens
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© 2012 IBM Corporation© 2012 IBM Corporation
Applying the IBM Telecom Pack helped Mobitel – Telekom Sloveniadrastically reduce their time to market and operational costs
IBM BPM withTelecom Pack
Services based upon the TMForum standards
Dynamic endpoint selection capabilities
Hundreds of pre-built services to leading telecom software packages
Key Capabilities: Dynamic business processes with Telecom Pack provides
extensive assets based on TMF Frameworx in a vendor neutral environment
Standards based integration of “best of breed” components into a flexible, scalable solution reduces time to market and overall costs
Solution in Action: IBM Quickstart for standards-based telecom solutions helped
significantly reduce the costs for project startup and cut down on following delivery cycle times
IBM solution resulted in: 40% less expenditure on professional services 45% shorter delivery cycle for the ongoing maintenance
and new releases of processes 40% reduction in total cost of ownership
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© 2012 IBM Corporation© 2012 IBM Corporation
Applying cross-channel order management helped one of the world’s largest providers to improve business performance
Cross-ChannelOrder Management
True Cross-Channel Product and Service Fulfillment
Managed Fulfillment Inside and Outside The Organization
Catalog and Analytics-Based Order Processing
Key Capabilities: Combined management of all physical CPE product order-
lines as well as all network service orders Scalability to handle very high transaction volumes Maximizes re-use of legacy factory activation systems
through flexible and adaptable integration platform
Solution in Action: Provides a one-stop “promising” engine across all customer
channels (call-center, web, reseller) IBM solution resulted in:
The most stable ordering solution in production in the group
Reduction in the size of the staff required to manage the solution operations
The ability to handle over 90,000 orders per day at peak
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© 2012 IBM Corporation© 2012 IBM Corporation
Mobile/Web
Smarter Commerce: Key ComponentsFunctional Solution Architecture: Order Management
Smarter CommerceOrder Management
1
Sales & ServiceChannels
Retail Reseller Call Center
Order Information VisibilityOrder Placement
Automated Fulfillment Execution and Optimization
FulfillmentIntegration
32
WarehouseManagement
1
Inventory +Capacity
Channel Specific Integration
DispatchingNetworkInventory
NetworkFactories Billing
Order Process Integration
Partners
2IBM Sterling Order Management 3 IBM BPM w/ Telecom Pack
Inventory and CapacityX-Channel Order Creation
Order Status
Catalog-DrivenDecomposition
Orchestration, FalloutReverse Logistics
Analytics
Process ManagmentIntegration Services
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© 2012 IBM Corporation© 2012 IBM Corporation
The Smarter Commerce approach to order management creates differentiating benefits
Enhancing the Empowered Customer Experience– The IBM Smarter Commerce approach to order management allows the customer to
have a seamless experience regardless of which channel they interact with for fulfillment activity.
Streamlining Customer and Service Order Management– The IBM Smarter Commerce solutions provide the foundation for blending customer
order management and service order management through extensive use of a transactional product catalog.
Analytics-Infused Order Management– The IBM Smarter Commerce approach provides a world class datamart embedded
directly into the platform to allow activity monitoring and real-time presentation of what’s really happening within the CSP’s extended fulfillment activities.
Ease of Management for 3rd-Party Fulfillment Partners– The IBM Smarter Commerce philosophy to application structure provides the CSP a
simplified and more cost effective approach to bringing on board and managing the fulfillment activities and inventory provided by outside partners.
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© 2012 IBM Corporation© 2012 IBM Corporation
The advantages of an IBM Smarter Commerce approach to insight-driven marketing
Best of Breed vs. Single Source is no longer an issue– IBM brings industry-leading modular, loosely coupled but tightly integrated
solutions to enterprise marketing management– IBM is routinely a “Leader” in Forrester’s Order Hub report and other major
ordering technology analyst reports.– IBM is the world’s largest software and services company and has
thousands of resources and invests billions of dollars each year in telecommunications solutions
Legacy investments can be extended–Because of the modular, white-space mentality of the IBM solution, it is no
longer necessary to ‘rip-and-replace’ expensive legacy systems– Instead IBM encourages providers to take advantage of sunk cost when
those systems still have capability beneficial to the new offerings needed
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© 2012 IBM Corporation© 2012 IBM Corporation
Customer Value Strategy • The Smarter Commerce Customer Value Accelerator – helps clients
rethink the business model by:– Understanding the new set of possibilities created by customer experience transformation– Prioritizing the value propositions to focus on those with the greatest potential– Characterizing the possibilities into a set of customer journeys/experiences– Defining the business capabilities needed to operationalize the new value proposition
Services & Partner Engagement• The Smarter Commerce Cross-Channel Experience Assessment – helps
clients optimize channel strategy to maximize value by:– Developing a cross-channel strategy that reflects current consumer trends & priorities– Identifying, analyzing and prioritizing cross-channel operation model innovations– Creating journey maps of key events to characterize the future-state of the customer
experience
Getting Started with Smarter Commerce -Customer value strategy and engagement assessments
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© 2012 IBM Corporation© 2012 IBM Corporation
IBM is the right partner for Smarter Commerce software, services and consultative guidance
Leading communications industry capabilities:
Analytics and Catalog-Driven Customer and Service Order Management, Global Inventory Visibility, Integration of Dispatch/Work Order, Reverse
Logistics
Leader in research and development:$2.5 billion invested since 2010 to create a truly smarter approach to commerce and a new services practice with more than a thousand dedicated experts
Expertise in the communications industry:Over 1,000 service providers have selected IBM solutions and all top 20 providers worldwide have chosen IBM
Leader in Smarter Computing:Over 50,000 hardware and software developers optimizing systems to manage needs driven by commerce applications
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