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Smarter Commerce
Order Management for Communications




1                                     © 2012 IBM Corporation
Delivering greater customer experience means overcoming
           traditional challenges to order management in communications
                                     Customer Advantages to Cross-Channel Order Management
                                     Cross-Channel                                  Catalog and                Simplified
                    advocate




                                                           Seamless Customer
                                   Fulfillment For the                               Analytics               Management of
                                                            And Service Order
                                      Empowered                                  Driven Processing           New Fulfillment
                                                              Management
                                        Customer                                     Behavior                  Solutions
                                                                                                             In the age of the
Customer Attitude




                                                           Collapsing customer        The ability to
                                     The empowered                                                              empowered
                                                             and service order    incorporate catalog
                                     customer today                                                            customer it’s
                                                           management into a     definitions as well as
                                   expects to be able to                                                   imperative that CSPs
                    apathetic




                                                              single platform     real-time analytical
                                   perform any action in                                                     have the ability to
                                                           enables the CSP to     insight into the OM
                                   any channel without                                                      rapidly add to their
                                                            reduce operational   processing behavior
                                    being expected to                                                        offerings through
                                                                 cost while      is critical to reacting
                                    provide redundant                                                            fulfillment
                                                            decreasing time to     to dynamic market
                                           data                                                             partnerships via 3rd
                                                                  market                 changes
                                                                                                                   parties
                    antagonistic




                                    Channel Specific         Divergent and           Manual OM               Long Lead Times
                                      Services and           Redundant OM        Solutions Requiring         for Offering New
                                         Insight               Solutions          Multiple Changes          Services Requiring
                                                                                                                Fulfillment

                                                   Traditional Telecom Order Management
  2                                                                                                                      © 2012 IBM Corporation
The empowered customer is demanding and elusive but can be
 rewarding for CSPs
            84% want to order online – return to store
            62% research via social networks
            They trust customer reviews 12x more
             than vendor statements
            A Facebook ‘like’ is worth 100 positive
             reviews by a stranger
----------------------------------------------------
  Customer advocacy in the retail industry is twice what it is in
            the the telecommunications industry.
----------------------------------------------------
    12%
                       -----------




                                                                   -----------
                                     Globally fewer than one                     Antagonist
                                     fifth of customers were                     Apathetic
 Additional spend of
   advocates over                    identified as advocates for
                                                                                 Advocate
    antagonists                      their CSP.
3                                                                                 © 2012 IBM Corporation
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


                                           70%
                                                                               of CSPs say it is
                                                                                          a key
                                                                                  differentiator



                59%                        95%
                                                                                 of CSPs say
      up from                                                               it has a positive
      in 2008                                                            impact on revenue


                                           91%
                                                                              of CSPs say it
                                                                         achieves customer
                                                                                    loyalty


           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                            http://www.osstransformation.com/Time-to-Market                       © 2012 IBM Corporation
CSPs are expanding their service offerings to digital home and life
    services to compete with traditional and OTT providers
                                   Apr                          NTT DoCoMo launches financial credit


                                         ------ ------ ------
           ------ ------ ------

                                  2005                          service… now has over 10 million subscribers…
                                   Jan                          Verizon announces Home Energy and
                                  2011                          Monitoring Control
                                   Feb
                                                                AT&T introduces Digital Life Services…
                                  2012
       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?

5                                                                                                        © 2012 IBM Corporation
Smarter Commerce approach to order management

     Cross-Channel Order Management
     True 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?
6                                                                                     © 2012 IBM Corporation
IBM Smarter Commerce helps CSPs to better serve the empowered
customer through cross-channel order management solutions


             Sourcing,    Targeted and
       controlling and    personalized                  Cross-Channel Order Management
       procurement of     marketing across
    goods and services.   all customer                 Enables the coordination of order fulfillment
                          interactions               processes across a dynamic business network of
                                                    customers, suppliers, and partners with extensive
        Buy                     Market              catalog and analytical driven processing behavior.


     Service                                             IBM Sterling Order Management
                                    Sell
    Servicing customer    Selling and fulfillment
       needs across all   of products and                        IBM Telecom Pack
            Interaction   services across
               channels   all channels




      Smarter Commerce Lifecycle
7                                                                                         © 2012 IBM Corporation
Order management choreographs the activities between capturing
the order and fulfilling the order

                                                Opportunity to Order Capture
An order hub is a customer and service order        Pricing Bundling
 management platform capable of handling:            Catalog Offers
                                                          Guided
           Any Demand
        Any Offering Bundle
                                                     ORDER HUB
        Any Process/Channel
             Any Supply                                  Decomp
While leveraging existing investments in core         Orchestration
                  systems.                         Fallout Promising
                                                Order Capture to Fulfillment
                                                 Order Management

8                                                                         © 2012 IBM Corporation
Using an order hub to deliver a seamless cross-channel experience
                        Historical Approach to                                                                                                                Smarter Approach to
                       CSP Order Management                                                                                                                  CSP Order Management




                                                                                                                                                           Web
                                                                                                                                                        Channel


                                                                                                                                                                      Mobile



                                                                                                                                                                                      Call
                                                                                                                                                                                    Center



                                                                                                                                                                                                  Reseller
                                                                                                                                                                     Channel




                                                                                                                                                                                                  Partner
     products/bundles to be offered



                                      products/bundles to be offered




                                                                                                        products/bundles to be offered
                                                                       products/bundles to be offered
                                       Wireline Product Catalog/OM




                                                                                                         Mobility Product Catalog/OM
       IPTV Product Catalog/OM




                                                                         Consists of the broadband
                                                                         DSL Product Catalog/OM




                                                                                                           Consists of the wireless
                                         Consists of the wireline
         Consists of the IPTV




                                                                                                                                                                                                                    Master
                                                                                                                                                             Multi-Enterprise Order Capture
                                                                                                                                         Any Demand                                                                Product
                                                                                                                                                        Consists of ALL the ‘products, services, pricing           Catalogs
                                                                                                                                          Any Offer      and models’ which are singular or bundled
                                                                                                                                                         components that make up the ‘offer’ to the
                                                                                                                                                                          customer.


                                                                                                                                                                   Transformation of Bundle
              BPM or Point2Point Layer Transformation
                                                                                                                                                           Cross-Channel Order Management
                                                                                                                                         Any Process      Decomposes and choreographs of ALL the
            IPTV Technical
         Service Fulfillment




                                                                                                               Ware-house
                                           Wireline Technical



                                                                             Mobility Technical
                                                                            Service Fulfillment



                                                                                                             CPE Fulfillment
                                           Service Fulfillment




                                                                                                                                                        customer and resource facing services’ which
                                                                                                                                         Any Supply         have been converted (transformed or
                                                                                                                                                         decomposed) from the accepted ‘offer’ and               Third Party
                                                                                                                                                       manages global inventory visibility and sourcing.         Fulfillment


                                                                                                                                                        Telecom Pack – TMForum Orchestration Services
                                                                                                                                                        Factory
                                                                                                                                                        Service




                                                                                                                                                                      Factory



                                                                                                                                                                                    Factory
                                                                                                                                                                      Service



                                                                                                                                                                                    Service




                                                                                                                                                                                                   house
                                                                                                                                                                                                   Ware-
9                                                                                                                                                                                                      © 2012 IBM Corporation
Communications providers who are able to combine customer and
service ordering platforms are at a distinct advantage

 Single product catalog reference/interface
  containing both customer and resource                           CPE
  facing services in addition to all physical                    Order

  products and work/installation requests
                                                  Customer
 Support for fulfillment of bundled               Order
                                                 Management
  customer products across disparate and
  separate fulfillment systems, even those                                    Customer
  outside the four walls of the CSP             ---------->                  and Service
                                                                               Order
 Lower cost of ownership/operations and                                     Management
  faster time to market due to the reduced
  complexity and redundant systems               Service Order
                                                 Management
 Single source of real-time overall and
  component order status throughout the                          Install /
                                                                  Work
  order lifecycle.                                                Order

 Reverse logistics capabilities from any
  channel regardless of the ordering channel
10                                                                               © 2012 IBM Corporation
Smarter Commerce enables catalog-driven customer and service
 order management
      A combination of
       workflow pipelines and                                                                   Triple Play Offer
                                                                                                    Bundle XML
       catalog constraint logic
       provides the best




                                                                                                                                                                                         CUSTOMER
                                                                                                                                                                                           ORDER
                                                                                                                                 Catalog
                                                                                       Hub
       combination of flexibility                                                      Rule
                                                                                                                                 Decom
                                                                                                                                    p
       and downstream                                                                                   Triple Play 1.0

                                    3rd ORDER LEVEL 2nd ORDER LEVEL 1st ORDER LEVEL




                                                                                                                                                                                        FACING SERVICES FACING SERVICES FACING SERVICES
       propagation of master




                                                                                                                                                                                                                          CUSTOMER
       catalog changes                                                                                          Catalog                     Catalog                           Catalog
                                                                                                                Decom                       Decom                             Decom
                                                                                                                   p                           p                                 p
      Support for n-levels of                                                         Broadband 1.1                       IPTV 1.2                     VoIP 1.3
                                    ---
       recursive decomposition




                                                                                                                                                                                                        SUB- CUSTOMER
       and choreography                                                                                         Catalog                     Catalog                           Catalog
                                                                                                                Decom                       Decom                             Decom
       through customer and                                                                                        p                           p                                 p
                                                                                      Broadband 1.1.1                     Broadband 1.1.2             Broadband 1.1.3
       resource facing services     ---




                                                                                                                                                                                           RESOURCE
      Allows for TM Forum SID
                                                                                                                Network                     Network                           Network
       data model standard                                                                                      Factory                     Factory                           Factory
                                                                                       DSLAM 1.1.1.1                       IP 1.1.1.2                   PORT 1.1.1.3
       compliance of network
       and billing orchestration
       activity

11                                                                                                                                                                      © 2012 IBM Corporation
Improving the customer experience requires a smarter approach to
addressing order management in the cross-channel environment

                                                                               Multiple orders of any type can
                                                                               be created that maintain a lasting
                                                         Supple-
          X-Channel             X-Channel                                      relationship and, if
                                                         mental
           Demand                 Status                                       necessary, dependency on the
                                                         Orders
                                                                               parent order. Orders can be
                                                                               nested to any level desired.



     Orders can be         Event management                                            Delivery +
     captured in any       and alerting                 Reverse                          Service
     channel - inside or   frameworks allow            Logistics                       Scheduling
     outside the CSP       for notification
                           directly to
                           customers in real
                           time regardless of
                           channel.           The ability to accept and           Ensures the CSPs delivery and
                                              disposition returns to any          work-related commitments
                                              channel is critical for the         match inventory and resource
                                              customer experience. All            availability in real-time
                                              returns are connected               enabling the selection of an
                                              back to the original order          individual service provider or
                                              for full lifecycle visibility.      allocation of an entire crew to
                                                                                  ensure that all the customers’
                                                                                  expectations are met.
12                                                                                                      © 2012 IBM Corporation
CSPs need a flexible and extensible order management solution to
allow rapid ingestion of new selling and fulfillment sources
                           Scalable and
                           flexible integration
                           with TM Forum                                      Native support for multiple
                           compliant service                                  enterprises within a single
                           calls for                                          platform segmented by
                           fast, flexible and re-        Multi-
                                                                              region, role, organization, etc.
                           useable integration         Enterprise
                                                                              providing a personalized and
                           capabilities.                                      definable view of the global supply
                                                                              chain by partners, resellers and
                                                                              suppliers

           Supply                 Rapid
                                 Partner               Intelligent
            Chain
                                 Ingress                 Insight
           Insight



     Real-time inventory                    Analytics and the resulting
     and capacity                           intelligence on key performance
     levels, advanced                       indicators for CSPs and their
     sourcing are                           partners via dashboards and
     available and                          dynamic order process changes
     managed inside or                      allows real-time
     outside the four                       monitoring, analysis and
     walls of the CSP.                      correction of the entire order
13                                          lifecycle.                                            © 2012 IBM Corporation
Analytics-led intelligent applications will help CSPs to evolve beyond
catalog-driven order management
                                                                                            User Interface

 Intelligence “ON” the process                                  Business process screens
     – Enable users to respond to trends                             served to users

       through dashboards and key                                                                        UI mash-ups
                                               Web Server
       performance indicators                                                                         with application
                                                                                                              screens

 Intelligence “IN” the process                Enterprise
     – Embed analytics directly in the      Application Server
                                                                         Rule

       workflow to enable users access to                                             Existing Workflow

       recommendations based on                   OLTP
                                                                       Workflow process queries metrics
                                                Database              calculated by analytics in execution
       performance trends to make better                                    of the business process
       decisions
                                                                          SOA       Reports    AdHoc
 Intelligence “DRIVING” the process
     – Evolving to leverage business                                      Reporting Server
       intelligence analytics along with           ETL
       automated decision-making                 Process

       capability                                                                 Data Mart


14                                                                                                 © 2012 IBM Corporation
Applying the IBM Telecom Pack helped Mobitel – Telekom Slovenia
drastically reduce their time to market and operational costs

                            Key Capabilities:
                             Dynamic business processes with Telecom Pack provides
                              extensive assets based on TMF Frameworx in a vendor
                              neutral environment
      IBM BPM with           Standards based integration of “best of breed” components
       Telecom Pack           into a flexible, scalable solution reduces time to market and
 Services based upon the     overall costs
  TMForum standards         Solution in Action:
 Dynamic endpoint          IBM Quickstart for standards-based telecom solutions helped
  selection capabilities    significantly reduce the costs for project startup and cut down
 Hundreds of pre-built
                            on following delivery cycle times
  services to leading
  telecom software           IBM solution resulted in:
  packages                        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



15                                                                                © 2012 IBM Corporation
Applying cross-channel order management helped one of the
world’s largest providers to improve business performance

                           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
      Cross-Channel
   Order Management         Maximizes re-use of legacy factory activation systems
                             through flexible and adaptable integration platform
 True Cross-Channel
  Product and Service      Solution in Action:
  Fulfillment               Provides a one-stop “promising” engine across all customer
 Managed Fulfillment        channels (call-center, web, reseller)
  Inside and Outside The    IBM solution resulted in:
  Organization                   The most stable ordering solution in production in the
 Catalog and Analytics-          group
  Based Order Processing         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




16                                                                                © 2012 IBM Corporation
Smarter Commerce: Key Components
Functional Solution Architecture: Order Management

                                                    Mobile/Web         Retail            Reseller        Call Center

     Sales & Service
     Channels


                                                                  Channel Specific Integration




                     Order Information Visibility                  Automated Fulfillment
                                                                 Execution and Optimization                                  Order Process Integration
                         Order Placement

                                                                      Catalog-Driven                                   3
              1         Inventory and Capacity
                                                             2        Decomposition                                            Process Managment
                       X-Channel Order Creation                    Orchestration, Fallout                                      Integration Services
                             Order Status                            Reverse Logistics
                                                                         Analytics

     Smarter Commerce
     Order Management



     Fulfillment             Inventory +                  Warehouse                                               Network            Network
     Integration                                                           Dispatching        Partners                                                   Billing
                               Capacity                   Management                                             Inventory           Factories




         1
                   IBM Sterling Order Management                                   3        IBM BPM w/ Telecom Pack
         2
17                                                                                                                                                © 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.
18                                                                                 © 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


19                                                                        © 2012 IBM Corporation
Getting Started with Smarter Commerce -
Customer value strategy and engagement assessments

     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
20                                                                                        © 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

21                                                                                      © 2012 IBM Corporation

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IBM Smarter Commerce Order Management for Communications

  • 1. Smarter Commerce Order Management for Communications 1 © 2012 IBM Corporation
  • 2. Delivering greater customer experience means overcoming traditional challenges to order management in communications Customer Advantages to Cross-Channel Order Management Cross-Channel Catalog and Simplified advocate Seamless Customer Fulfillment For the Analytics Management of And Service Order Empowered Driven Processing New Fulfillment Management Customer Behavior Solutions In the age of the Customer Attitude Collapsing customer The ability to The empowered empowered and service order incorporate catalog customer today customer it’s management into a definitions as well as expects to be able to imperative that CSPs apathetic single platform real-time analytical perform any action in have the ability to enables the CSP to insight into the OM any channel without rapidly add to their reduce operational processing behavior being expected to offerings through cost while is critical to reacting provide redundant fulfillment decreasing time to to dynamic market data partnerships via 3rd market changes parties antagonistic Channel Specific Divergent and Manual OM Long Lead Times Services and Redundant OM Solutions Requiring for Offering New Insight Solutions Multiple Changes Services Requiring Fulfillment Traditional Telecom Order Management 2 © 2012 IBM Corporation
  • 3. The empowered customer is demanding and elusive but can be rewarding for CSPs  84% want to order online – return to store  62% research via social networks  They trust customer reviews 12x more than vendor statements  A Facebook ‘like’ is worth 100 positive reviews by a stranger ---------------------------------------------------- Customer advocacy in the retail industry is twice what it is in the the telecommunications industry. ---------------------------------------------------- 12% ----------- ----------- Globally fewer than one Antagonist fifth of customers were Apathetic Additional spend of advocates over identified as advocates for Advocate antagonists their CSP. 3 © 2012 IBM Corporation
  • 4. 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 70% of CSPs say it is a key differentiator 59% 95% of CSPs say up from it has a positive in 2008 impact on revenue 91% of CSPs say it achieves customer loyalty 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 http://www.osstransformation.com/Time-to-Market © 2012 IBM Corporation
  • 5. CSPs are expanding their service offerings to digital home and life services to compete with traditional and OTT providers Apr NTT DoCoMo launches financial credit ------ ------ ------ ------ ------ ------ 2005 service… now has over 10 million subscribers… Jan Verizon announces Home Energy and 2011 Monitoring Control Feb AT&T introduces Digital Life Services… 2012 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? 5 © 2012 IBM Corporation
  • 6. Smarter Commerce approach to order management Cross-Channel Order Management True 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? 6 © 2012 IBM Corporation
  • 7. IBM Smarter Commerce helps CSPs to better serve the empowered customer through cross-channel order management solutions Sourcing, Targeted and controlling and personalized Cross-Channel Order Management procurement of marketing across goods and services. all customer Enables the coordination of order fulfillment interactions processes across a dynamic business network of customers, suppliers, and partners with extensive Buy Market catalog and analytical driven processing behavior. Service IBM Sterling Order Management Sell Servicing customer Selling and fulfillment needs across all of products and IBM Telecom Pack Interaction services across channels all channels Smarter Commerce Lifecycle 7 © 2012 IBM Corporation
  • 8. Order management choreographs the activities between capturing the order and fulfilling the order Opportunity to Order Capture An order hub is a customer and service order Pricing Bundling management platform capable of handling: Catalog Offers Guided Any Demand Any Offering Bundle ORDER HUB Any Process/Channel Any Supply Decomp While leveraging existing investments in core Orchestration systems. Fallout Promising Order Capture to Fulfillment Order Management 8 © 2012 IBM Corporation
  • 9. Using an order hub to deliver a seamless cross-channel experience Historical Approach to Smarter Approach to CSP Order Management CSP Order Management Web Channel Mobile Call Center Reseller Channel Partner products/bundles to be offered products/bundles to be offered products/bundles to be offered products/bundles to be offered Wireline Product Catalog/OM Mobility Product Catalog/OM IPTV Product Catalog/OM Consists of the broadband DSL Product Catalog/OM Consists of the wireless Consists of the wireline Consists of the IPTV Master Multi-Enterprise Order Capture Any Demand Product Consists of ALL the ‘products, services, pricing Catalogs Any Offer and models’ which are singular or bundled components that make up the ‘offer’ to the customer. Transformation of Bundle BPM or Point2Point Layer Transformation Cross-Channel Order Management Any Process Decomposes and choreographs of ALL the IPTV Technical Service Fulfillment Ware-house Wireline Technical Mobility Technical Service Fulfillment CPE Fulfillment Service Fulfillment customer and resource facing services’ which Any Supply have been converted (transformed or decomposed) from the accepted ‘offer’ and Third Party manages global inventory visibility and sourcing. Fulfillment Telecom Pack – TMForum Orchestration Services Factory Service Factory Factory Service Service house Ware- 9 © 2012 IBM Corporation
  • 10. Communications providers who are able to combine customer and service ordering platforms are at a distinct advantage  Single product catalog reference/interface containing both customer and resource CPE facing services in addition to all physical Order products and work/installation requests Customer  Support for fulfillment of bundled Order Management customer products across disparate and separate fulfillment systems, even those Customer outside the four walls of the CSP ----------> and Service Order  Lower cost of ownership/operations and Management faster time to market due to the reduced complexity and redundant systems Service Order Management  Single source of real-time overall and component order status throughout the Install / Work order lifecycle. Order  Reverse logistics capabilities from any channel regardless of the ordering channel 10 © 2012 IBM Corporation
  • 11. Smarter Commerce enables catalog-driven customer and service order management  A combination of workflow pipelines and Triple Play Offer Bundle XML catalog constraint logic provides the best CUSTOMER ORDER Catalog Hub combination of flexibility Rule Decom p and downstream Triple Play 1.0 3rd ORDER LEVEL 2nd ORDER LEVEL 1st ORDER LEVEL FACING SERVICES FACING SERVICES FACING SERVICES propagation of master CUSTOMER catalog changes Catalog Catalog Catalog Decom Decom Decom p p p  Support for n-levels of Broadband 1.1 IPTV 1.2 VoIP 1.3 --- recursive decomposition SUB- CUSTOMER and choreography Catalog Catalog Catalog Decom Decom Decom through customer and p p p Broadband 1.1.1 Broadband 1.1.2 Broadband 1.1.3 resource facing services --- RESOURCE  Allows for TM Forum SID Network Network Network data model standard Factory Factory Factory DSLAM 1.1.1.1 IP 1.1.1.2 PORT 1.1.1.3 compliance of network and billing orchestration activity 11 © 2012 IBM Corporation
  • 12. Improving the customer experience requires a smarter approach to addressing order management in the cross-channel environment Multiple orders of any type can be created that maintain a lasting Supple- X-Channel X-Channel relationship and, if mental Demand Status necessary, dependency on the Orders parent order. Orders can be nested to any level desired. Orders can be Event management Delivery + captured in any and alerting Reverse Service channel - inside or frameworks allow Logistics Scheduling outside the CSP for notification directly to customers in real time regardless of channel. The ability to accept and Ensures the CSPs delivery and disposition returns to any work-related commitments channel is critical for the match inventory and resource customer experience. All availability in real-time returns are connected enabling the selection of an back to the original order individual service provider or for full lifecycle visibility. allocation of an entire crew to ensure that all the customers’ expectations are met. 12 © 2012 IBM Corporation
  • 13. CSPs need a flexible and extensible order management solution to allow rapid ingestion of new selling and fulfillment sources Scalable and flexible integration with TM Forum Native support for multiple compliant service enterprises within a single calls for platform segmented by fast, flexible and re- Multi- region, role, organization, etc. useable integration Enterprise providing a personalized and capabilities. definable view of the global supply chain by partners, resellers and suppliers Supply Rapid Partner Intelligent Chain Ingress Insight Insight Real-time inventory Analytics and the resulting and capacity intelligence on key performance levels, advanced indicators for CSPs and their sourcing are partners via dashboards and available and dynamic order process changes managed inside or allows real-time outside the four monitoring, analysis and walls of the CSP. correction of the entire order 13 lifecycle. © 2012 IBM Corporation
  • 14. Analytics-led intelligent applications will help CSPs to evolve beyond catalog-driven order management User Interface  Intelligence “ON” the process Business process screens – Enable users to respond to trends served to users through dashboards and key UI mash-ups Web Server performance indicators with application screens  Intelligence “IN” the process Enterprise – Embed analytics directly in the Application Server Rule workflow to enable users access to Existing Workflow recommendations based on OLTP Workflow process queries metrics Database calculated by analytics in execution performance trends to make better of the business process decisions SOA Reports AdHoc  Intelligence “DRIVING” the process – Evolving to leverage business Reporting Server intelligence analytics along with ETL automated decision-making Process capability Data Mart 14 © 2012 IBM Corporation
  • 15. Applying the IBM Telecom Pack helped Mobitel – Telekom Slovenia drastically reduce their time to market and operational costs Key Capabilities:  Dynamic business processes with Telecom Pack provides extensive assets based on TMF Frameworx in a vendor neutral environment IBM BPM with  Standards based integration of “best of breed” components Telecom Pack into a flexible, scalable solution reduces time to market and  Services based upon the overall costs TMForum standards Solution in Action:  Dynamic endpoint IBM Quickstart for standards-based telecom solutions helped selection capabilities significantly reduce the costs for project startup and cut down  Hundreds of pre-built on following delivery cycle times services to leading telecom software  IBM solution resulted in: packages  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 15 © 2012 IBM Corporation
  • 16. Applying cross-channel order management helped one of the world’s largest providers to improve business performance 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 Cross-Channel Order Management  Maximizes re-use of legacy factory activation systems through flexible and adaptable integration platform  True Cross-Channel Product and Service Solution in Action: Fulfillment  Provides a one-stop “promising” engine across all customer  Managed Fulfillment channels (call-center, web, reseller) Inside and Outside The  IBM solution resulted in: Organization  The most stable ordering solution in production in the  Catalog and Analytics- group Based Order Processing  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 16 © 2012 IBM Corporation
  • 17. Smarter Commerce: Key Components Functional Solution Architecture: Order Management Mobile/Web Retail Reseller Call Center Sales & Service Channels Channel Specific Integration Order Information Visibility Automated Fulfillment Execution and Optimization Order Process Integration Order Placement Catalog-Driven 3 1 Inventory and Capacity 2 Decomposition Process Managment X-Channel Order Creation Orchestration, Fallout Integration Services Order Status Reverse Logistics Analytics Smarter Commerce Order Management Fulfillment Inventory + Warehouse Network Network Integration Dispatching Partners Billing Capacity Management Inventory Factories 1 IBM Sterling Order Management 3 IBM BPM w/ Telecom Pack 2 17 © 2012 IBM Corporation
  • 18. 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. 18 © 2012 IBM Corporation
  • 19. 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 19 © 2012 IBM Corporation
  • 20. Getting Started with Smarter Commerce - Customer value strategy and engagement assessments 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 20 © 2012 IBM Corporation
  • 21. 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 21 © 2012 IBM Corporation

Notas del editor

  1. While order management systems don’t directly face the customer and offer no direct interaction to customers they have an enormous impact on the overall quality of experience that a customer has with a CSP.The CSP who is capable of solving these issues is primed to begin transforming their antagonistic customers into advocates, who will churn less (20% less in year 1-2), stay longer (20% more than 5 years) and spend more (12% more in services).
  2. Almost 30% of the world is online today and there are over 5 billion mobile subscriptions worldwide. Consumers are empowered and mobile and have all their research at their fingertips – they no longer trust the CSP but instead trust their friends on social networks – the ‘like’ status on Facebook from a friend carries the same weight to consumers today as 100 positive reviews from strangers.At the same time customer advocacy in the telecommunications market is low – significantly lower worldwide than other industries such as retail, etc. Certainly CSPs have a more complicated and enduring experience with their customer for each sales cycle but the value of advocacy remains the same.Advocates are 20% less likely to churn in the first 2 years, 20% more likely to stay 5 years or longer and most importantly, advocates allocate 12% more of their wallet-share spend with their CSP than antagonists do.Source:IBM 2011 CMO Study Results for Communications
  3. Left Side Column:CSPs know the benefit of adapting to newer and more complex business models at an ever-increasing pace. As for time to market…Right Side Column:Unfortunately, as focused as service providers appear to be, over the last three years most have gotten worse, not better…70% of companies now say time-to-market is very important – up from 59% in 200868% of service providers cited speed of new product creation as a key business differentiator95% stated that fast time to market has a positive impact on revenue95% reported time to market as impacting brand image and 91% said it helps achieve customer loyaltyIn fact, the number of service providers able to bring a product to market within six months has actually fallen:In 2008, 67% of service providers said it took six months or less to bring a new product to marketIn 2011, it’s down to 65%So while service providers believe that quickly introducing new services has a positive impact on customer churn/loyalty, revenue generation, customer experience and brand reputation, most haven’t been able to meet their target.As many as one in three service providers failed to achieve their target of delivering new services within six months over the last three years. The majority of service providers would like to be able to introduce new services in less than three months, but for most of them it takes between three to six months.Over the same three years most have seen their costs go up (50%) or stay the same (29%) but some (21%) have seen their costs go down significantly, an average of 20% reduction. Why?81% cited improved project management and control76% said it was a result of improving organizational alignment65% reported business and operational support systems integration70% of service providers cited the need to modernize their operational environment in order to bring products to market faster.However, the reality is that many service providers are still being held back by a silo’ed, legacy infrastructure that denies them the speed and agility needed to ensure constant updating of the services and applications they offer to customers.And the new market dynamics are making life even more challenging. 45% of service providers reported that the increasing demand for support of third-party services, such as app stores or IPTV and additional connected devices, has increased time to market.
  4. CSPs have a decision to make – do I become the commodity broker of data moving between two points in space or do I take the next step to evolve to a higher place of value in the mindset of the consumer, providing capabilities and services as well? Some providers, like Free in France are doing the former, focusing on a single solution and providing it at a cost that cannot be met by the competition. Others are expanding their services into near-neighbor opportunities like the connected home.1) Austria’s largest mobile operator, Mobilkom, began enabling subscribers to buy SMS-based transit tickets with their mobile phones in 1999, and in 2002 formed its own bank. The telco also enables small payments, such as parking fares and snacks from vending machines. Most purchases show up on monthly phone bills. Japan’s largest mobile operator, NTT DoCoMo, goes further, having launched its own credit brand, iD, in late 2005 and credit service, DCMX, the following year. Subscribers can charge up to 10,000 yen (US$114) per month and have the amount added to their monthly phone bills. Rogers Communications in 2011 filed for approval to become a bank for nearfield communications and walletpayment solutions.2) Verizonannounces Home Energy and Monitoring Control System whichprovides home alarm and energy monitoring throughpartner 4Home3)AT&T introduces Digital Life Services whichremotely monitors lighting, cameras, thermostats, motion detectors, etc.Rogers: http://gigaom.com/2011/09/06/dreams-of-mobile-payments-lead-telco-to-try-banking/Verizon: http://www.zdnet.com/blog/green/verizon-flips-switch-on-home-energy-management-service/19127ATT: http://www.att.com/gen/press-room?pid=22463&cdvn=news&newsarticleid=33941
  5. 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?
  6. At IBM the capabilities required to managed multi-channel orders from disparate fulfillment services falls under the Service category within the Smarter Commerce philosophy.You will see here the addition of something called the Telecom Pack to the IBM Sterling Order Management solution.The IBM Sterling Order Management solution is a document state engine that is built on a very flexible and extensible foundation with over 800 APIs out of the box to support all aspects of inventory, ordering, sourcing and fulfillment. However, the solution is horizontal across a large number of industry verticals and as such needs additional capability to support the nuances of each industry.That’s where Telecom Pack comes in. Telecom Pack is a set of pre-built services that work with the IBM Websphere/Lombardi BPM application specifically designed to work within the telecommunications industry. It acts as a transportation and translation layer for the IBM Sterling platform allowing it to communicate to other communications applications in industry standards based ways such as support for the Telemanagement Forum SID for data model and it also provides hundreds of pre-built calls and interfaces to prominent communications billing and network activation software packages.Together, IBM Sterling Order Management and Telecom Pack deliver a TMForum compliant solution for intelligent order management.On the next slide we learn a bit about a concept called the order hub.
  7. IBM Sterling Order Management provides robust cross-channel functionality that can intelligently broker orders across many disparate systems, provide a global view of all inventory across the supply chain, and help you make changes to business processes based on changing market conditions.Orchestrate order fulfillment across the extended enterprise with intelligent sourcingGain a single unified view of all supply and demandProactively detect fulfillment issues across the entire supply chainOptimize inventory utilization and reduce operational costs by intelligently sourcing and scheduling ordersIncrease customer satisfaction by providing real-time order visibility through a central order repositoryImprove order fill rates and cycle time through automated and customized fulfillment processesIBM Telecom Pack gives Order Management communications industry specific capabilities such as Telemanagement Forum SID standard data model compliance along with pre-built eTOM compliant service calls for billing, inventory, activations and more to many industry leading communications software solutions.
  8. Traditionally communications order management (OM) solutions have been developed either internally or by vendors with a network engineering focus – this has given rise to very robust network facing service management but very weak customer product level management and flexibility. It has also traditionally caused multiple fulfillment and ordering systems to be developed – either by channel or more likely by product line.So a mature market triple or quad play vendor is going to most likely have several OM solutions they are trying to cobble together on the front end to manage the appearance of a single point of entry for order taking and management to their customers while on the back end routing components of the order to multiple fulfillment systems.In order to address this problem vendors and CSPs have traditionally built two levels of ordering – one continuing to focus on the network elements – the second now focused on the new empowered customer who doesn’t want to be inconvenienced by having to place multiple orders in multiple systems – they don’t care what kind of fulfillment issues the CSP faces.While having two distinct order management layers can add flexibility to the process, the problems trying to manage all these multiple systems with multiple catalogs and multiple interfaces and multiple UIs far outweighs any benefits gained. The time to market is too slow and the internal costs to the business for change are almost always astronomically high.By moving to a modern order hub platform that focuses on managing from the empowered customers point of view, the CSP can deploy a solution capable of reacting at market speed to the requirements of the business and at the same time leverage and use those older legacy siloed fulfillment stacks that still have value but are not capable of working across product/fulfillment lines.
  9. This is a simplified view of a single branch of a customer order for communications and only decomposes three levels but it works to help explain how communications orders are decomposed and processed.The advanced branching and re-cursive decomposition complexities of the sub-levels of customer-facing services in many cases present challenges. The complexities presented and the skillsets required to solve those issues in highly complex environments we believe are best handled by a combination of workflow and catalog-aware order constraints that understand, when needed, how to explode the BoM (bill of materials) for a given Customer Order or CFS into it’s proper subcomponents for further routing by the order management solution.The ability to maintain a rolled up status at the 1st level where most customer and call-center representative systems interface is critical to maintain a quality user experience for the customer. Understanding and knowing at any time what the status is of their order and where it is in the processing cycle is vitally important.The customer order enters a ‘pipeline’ based upon any attribute of the order document – channel, location, order contents, time, etc. and the pipeline allows for interaction and progress until such point as the order objects need to be decomposed for further fulfillment. This is where a lookup, either static or dynamic, can occur so the OM system understands which components to explode the customer order into.This process continues throughout the order and all it’s branches until the order is completely decomposed to physical fulfillment or resource facing services.The second level depicted here shows where a business support resource or order handling resource might interact with the system, receiving alerts, working assignment queues, reprocessing orders or perhaps adding additional information necessary for processing.The third level depicted here is the first level where resource-facing services are encountered and also where the Telecom Pack is integrated with OM to perform specific directed network activities such as turning up a port or assigning a rack ID number. This is the level in which interaction with network level engineers might occur when issues arise.
  10. 1)Any Cross-Channel DemandExtensive multi-enterprise capabilities along with open API and integration architecture allowing orders captured in any channel inside or outside the organization. Example: A reseller might only be able to see certain inventory views or have limited user roles.2) Event and Alert ManagementEvent management and alerting frameworks allow for notification directly to customers in real time. Example: Customer receives via e-mail any updates or changes to their order processing status.3) Supplemental OrdersMultiple 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. Example: Customer adds an accessory or additional service item when picking up their order.4) Reverse LogisticsReturns are a fact of life for the multi-channel retailer. 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. Example: Customer contacts CSP through Twitter where they receive an RMA and a free shipping label to return an item.5)Inventory ManagementInventory levels, inter-company shipments and disposition processes are available and managed inside or outside the four walls of the CSP. Example: Return items can be managed by a 3rd party fulfillment company on the CSPs behalf.
  11. As traditional communications services continue to become commoditized CSPs must be able to integrate new sources of revenue from near-neighbor industries with low time-to-market attributes in order to differentiate their offerings1)Global Inventory Visibility for Supply Chain InsightInventory and capacity levels, inter-company shipments and advanced sourcing are available and managed inside or outside the four walls of the CSP. 2) Service Definition Framework with Telecom Pack for Rapid Partner IngressScalable and flexible integration platform and over 800 order-related APIs and hundreds of TM Forum compliant service calls provides the foundation for flexible and re-useable integration capabilities.3) Multi-Enterprise Support for Partners, Resellers and Third-Party Fulfillment ProvidersNative 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 suppliers4) Embedded Data-Mart for Intelligent InsightAnalytics 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.
  12. Case study for marketing solution
  13. Case study for marketing solution
  14. The IBM Smarter Commerce solution for cross-channel order management in the communications space is a loosely-coupled but tightly-integrated set of best-of-breed applications linked together by the world’s largest software vendor.
  15. In fact, the old arguments of whether to choose best of breed to get cutting edge technology or stick with a single vendor to have less interfacing and management to do is becoming moot with the IBM Smarter Commerce solutions.Telecommunications providers can no longer afford to invest hundreds of millions of dollars every 5-7 years to rip-and-replace their entire ordering platforms. Instead they need flexible, modular capability solutions that will continue to work with their existing legacy investments.
  16. IBM offers highly experienced and skilled consultants to it’s customers from time to time to take advantage of our business value assessment capabilities to help our customers identify qualitatively and quantitatively what their true issues are and what kind of benefit they might see from addressing those issues.
  17. IBM is the world’s largest software and services company and has a tremendous amount of experience in the telecommunications industry. We have worked with hundreds of CSPs over the years and all top 20 providers in the world have chosen to work with IBM in some manner.We have the solutions and the resources to help you solve your highest priority issues and concerns.