Role of AI and ML in Driving Customer Centricity

TM FORUM

Tim Peters

January 22, 2019

AI & ML | INTERESTING FACTS

“Everything invented in the past 150

years will be reinvented using AI

within the next 15 years.”Randy Dean, Chief Business Officer at Sentient

Technologies

“In the long run we are evolving in

computing from a “mobile first” to

an “AI first” world.”Sundar Pichai, CEO, Google

Source: News articles

AI & ML | THE NEXT FRONTIER IN THE DIGITAL WORLD

INSI

GH

TS

PROCESS

Manual Automated Autonomous

Pre-defined

Self-Organising

Dashboards, Business

Applications and Data Stores

Prescriptive and Predictive Analytics

Artificial Intelligence

+Advanced Machine

Learning

Process-centricService Providers

Data-drivenService Providers

AI-centricService Providers

Artificial Intelligence and machine learning are fast emerging as priorities for a successful digital transformation

Source: Oracle Report - Artificial Intelligence, Analytics And Machine Learning Are The Future For Digital Enterprises, goetzpartners analysis

AI & ML | DRIVING CUSTOMER CENTRICITYImproving customer centricity has become the key strategic priority for telecom operators.

84% of the surveyed operators see personalized customer experience as a big business challenge

CUSTOMER CENTRICITY ACTIVITIES SOLUTIONS

Inquiry

TELECOM CUSTOMER JOURNEY

Product comparison Purchase Churn prevention

AI-powered agents – online virtual assistants and chatbots

Creating 360-degree customer view through Big Data

Move from tiered contracts to unique contracts per customer

Personalized data bundles based on customer individual needs

AI-based fraud and security solutions

AI-powered all bound customer journey support

Pre-emptive personalized customer support through ML

Catalog AI to highlight right channels and segments

Source: goetzpartners analysis

AI & ML | KEY USE CASES83% of telecommunication enterprises and 77% of manufacturing companies use AI to automate

business processes

AI can ensure that networks loads are distributed intelligently and that demand predictions is used for coverage extension

Network optimization

Autonomous movement around the warehouse, using image recognition and smart control

Machine data is analyzed to predict when service & maintenance is due, or for proactive identification of potential problems

Predictive maintenance

3 EQUIPMENT USEFUL LIFE EXTENSION

Advances in speech recognition experienced decrease of error rates to 4.9% in 2017, allowing enterprises to better deploy chatbots and automate customer service

Digital voice assistance Cognitive assistance Chatbots

Logistic robots

4 WAREHOUSE AUTOMATION

1 CUSTOMER SERVICE AUTOMATION 2 INFRASTRUCTURE PLANNING

AI creates the opportunity to identify early what customers are looking for, allowing to discover market niche and creating greater customer affinity

AI requires deep integration with internal corporate processes and most enterprises will need to set them up first

Source: goetzpartners analysis

AI & ML APPLICATIONS | SELECTED EXAMPLESSome of the leading operators are already leveraging the power of AI and ML in driving the next

level of customer experience

TOBi is Vodafone's digital assistant

to help on any customer’s need

“How much do I pay to

call home from China?”

“How much did I spend

since the last recharge?”

“Which are my active

offers?”

“How can I pay my

bill?”

Services offered

Instantly available

customer

information

Presume the

intention of the

customer

Redirect to most

appropriate agent

Verizon cognitive platform helps customer

care to improve First Call Resolution rate

Abroad Costs Offers Services Payment Network Security

Source: Industry reports, goetzpartners analysis

AI & ML | TELCO CHALLENGESChallenges to overcome in order to achieve a successful implementation

INTEGRATED MARKETING APPROACH - Marketing engagements

are disjointed - recommendations, upselling, cross-selling are

missing the mark

CONSOLIDATED DATABASE - Fragmented view of Telcos’ customers,

customer offering data is dispersed

NEW BUSINESS MODELS - Developing new business models or

evolving existing processes cannot be done just by buying technology

RESOURCES - AI brings new opportunities, but requires a new

workforce with changed skills and the right expertise

Source: goetzpartners analysis

AI & ML | BUILDING CAPABILITIESAccording to surveys, corporate executives expect ROI from AI investment to double within 5

years. ROI of 1.23 USD is expected over 3 years for every 1 USD spend on AI now

Enterprises have 3 ways obtaining AI

competencies Internally develop or co-develop AI capabilities

Acquire & integrate existing AI player

Buy existing AI/ML solutions from

established company1

2

3Forging of numerous alliances to co-develop

and rebuild value chain around AI

technologies

6 bn USD invested in AI start-ups.

In 2017, 115 AI start-ups were acquired by

established enterprises, +44% YoY increase

Deploy solution from established AI

solution providers (such as IBM Watson &

Oracle DataFox)

Source: goetzpartners analysis

AI & ML | KEY SUCCESS FACTORSSuccessful application of AI/ML in customer experience requires 3 fundamental capabilities

SUCCESS FACTORS

Business Context (Optimal customer experience is achieved when an operator remembers a

customer and treats them with attention, respect and consideration throughout their unique customer journey – Segment of One)

Real-time Insights Delivery

(Insights need to be conveyed in the moment through the

customer’s chosen touchpoint)

Data Unification(AI thrives on information –

the more the better)

Source: Pointillist, goetzpartners analysis

AI & ML | PRECONDITIONS

Know your organization, processes

and models

Get a grasp of internal processes in your organisation and make sure you detect the bottlenecks

Define your goalUnderstand what is it exactly that you want to

optimise, by how much and in which way

Understand AIComprehend the basics of the processes involved for a

successful implementation and usage of AI

Prioritizeyour actions

Figure out relevance of each different action in the whole process and what needs to be done first

Source: News article, goetzpartners analysis

THANK YOU!