brim enablement telecommunications

April, 2013

This deck comes with extensive

speaker notes.

Content on the slides is light.

Learn the messaging

from the speaker notes.

SAP Billing and Revenue Innovation Management SAP for Telecommunications January 2014

Legal disclaimer All information contained in this presentation is provided under NDA The information in this document is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This document is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation and SAP's strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information on this document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP intentionally or grossly negligent. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

©  2013 SAP AG. All rights reserved. 3 Public

Mobile subscriptions

2

4

6

8

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

World Population

Mobile Subscriptions

Source: ITU (2013 is estimated)


China: Approaching Market Saturation?

84% 90%

China Global

Mobile Penetration


Mature Markets Case Study: European Telecoms Revenues in Decline

Source: European Telecommunications Network Operators’ Association * 2013 projected

Tota

l Rev

enue

s, c

hang

e co

mpa

red

to

prio

r yea

r

1.3%

-2.3%

-0.9% -1.4%

-1.8%

-3.7%

2008 2009 2010 2011 2012 2013*


Europe: only fixed Internet is growing, but growth slowing

6.9%

5.2%

3.1% 3.7%

2.4% 3.6%

-2.1% -1.2%

1.7%

-1.6%

-5.9%

-8.4% -7.2%

-8.4% -7.8%

2008 2009 2010 2011 2012

Fixed Internet services

Mobile services

Fixed voice To

tal R

even

ues,

cha

nge

com

pare

d to

pr

ior y

ear

Source: European Telecommunications Network Operators’ Association


2013 YEAR ON YEAR CHANGE OF VODAFONE AFFILIATES REVENUE

Mature Markets Case Study: Vodafone and Belgium


Social Messaging is Cannibalizing SMS

0

10

20

30

40

50

2012 2013 projected

SMS

Social Whatsapp, Apple iMessage, BlackBerry Messenger, and others

Bill

ion

per d

ay

Source: Informa, Ovum

$23B Operator messaging revenues lost to OTT in 2012


Carrier spend on IT outstripping spend on network infrastructure

$B

20 $B

40 $B

60 $B

80 $B

100 $B

2010 2011 2012 2013 2014 2015 2016 2017

Network Infrastructure

BSS, OSS, SDP

Source: Gartner CNI & TOMS Forecasts, 2013 Q3


OSS/BSS has been getting more expensive over time

Rise in IT cost burden over time

IT Costs % of total indirect

costs

Years since start of mobile operations Source: A.T. Kearney analysis

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 0%

5%

10%

15%

20%

25%

30%

R = 0.61


Objective Measurements Strategy

Better Customer Experience

Increase in Net Promoter Score

•  Instant service activation, instant changes, real-time notifications

•  Self-service as the preferred model •  Seamless experience across all channels: store, online, field

sales & service, resellers •  Single 360° view of the customer with best-in-class customer

service from engaged and empowered team-members

Enhanced Competitive Advantage

Launch new products in a fraction of current time (e.g.,days instead of months)

•  Quickly introduce transparent and innovative pricing and monetization models

•  Immediate product catalog updates across whole OSS/BSS •  Easily partner and share revenue with third-parties for content,

apps and joint go-to-market, combat the threat from Internet pureplayers

Revenue Growth

Market share growth and ARPU increase

•  Expand into new markets: B2B, M2M •  Dynamic bundling and cross-sell/upsell from a broad catalog of

services •  Real-time sense and respond to customer behavior to drive

finely targeted offers

Cost Reduction

50% reduction in total cost to serve a customer after subscription; increased network utilization rates

•  More self-service and less calls to call center •  Greater case management efficiency •  Massive reduction in operations cost for OSS/BSS •  Consolidation of multiple lines of business onto the new

software stack over time

Impacts for Telecommunications


End-to-end Customer Experience Management with SAP

Customers Convergent Mediation

Convergent Charging

Convergent Invoicing Revenue

Recognition

Customer Financial

Management

Field Service

Contact Center Care

Self-care Convergent Pricing Simulation

Social Engagement

Customer Engagement Intelligence

Real-time Offer Management

Predictive Analytics

Loyalty Management

Field Sales

Contact Center Sales

Omni-Channel Commerce

Inventory and Logistics

Customer Usage Analytics

Be+er Customer Experience


Why SAP?

10 out of the Top 10 Telecommunications Companies run SAP

Source: SAP analysis of Forbes 2000 rankings (May 2013) and SAP customer database

Strategic to SAP Telecommunications is one of only 4 strategic industries at SAP receiving disproportionate investment

Clear industry roadmap developed with strategic customers through co-innovation

1,000+ customers worldwide

Telco 2.0 SAP is a powerful upstream and downstream partner for CSPs looking to go Beyond Telco

Deep industry-specific capabilities

Embedded preconfigured best practices

CUSTOMERS CHOOSING SAP FOR CUSTOMER EXPERIENCE

MANAGEMENT

Customer names available on request


SAP: Growing through Organic Innovation and M&A

ACQUISITIONS BENEFITING THE TELECOMMUNICATIONS INDUSTRY

SERVICES

SOFTWARE

HARDWARE

SERVICES

SOFTWARE

HARDWARE

Current Stack New SAP Stack

Room for Customer and SAP co-innovation

Simplification driven by: •  SAP HANA in-memory platform collapses the data

management stack and simplifies apps •  Best practices pre-packaged in rapid deployment

solutions •  Choice of hybrid cloud/on-premises deployment

models

SIMPLIFYING TO OPEN UP INNOVATION OPPORTUNITIES

14

2012 mobile field

service

2009 convergent charging

2013 omni-channel

commerce

2007 business intelligence

2011 human capital management

2013 predictive analytics

2012 business commerce

network

2010 mobility platform and

database

M2M Machine to Machine


Beyond Telecoms: partnering with SAP

Retail Oil & Gas Public Sector

Provide a solution for in-store multimedia

promotions and endless-aisle shopping

combined with customer-centric

analytics including location-based data

Example SAP

Customers

Offer a real-time cloud platform for production monitoring, 360° asset

analytics and predictive maintenance

Enable cloud-based omni- channel citizen services, security and monitoring and Open Government Data in

the CSP Cloud

Example SAP

Solutions

16

Customize to your Market with relevant industries and SAP customer names in your region


M2M connections and growth

0

2

4

6

8

10

12

14

16

YoY adds

Source: Berg Insight, April 2012

Mill

ion

Con

nect

ions

(end

201

1)

This slide has speaker notes


M2M = low ARPU?

0 5 10 15 20 25 30 35

Less than $3

Between $3 and $5

Between $5 and $7

Between $7 and $9

More than $9

Source: Informa & SAP, 02/2012

Average monthly ARPU per SIM, US$, % of survey respondents

No. 1 concerns for CSPs

! Source: Informa & SAP, 02/2012


Future value shift in M2M communications

M2M revenue

distribution 2012

2015 Service Enablement

Application Services

Connectivity & Hardware

Ver$cal Industry specific solu$ons and managed services

Decision support, Reports and alerts, Data collec$on storage and analy$cs, Device monitoring and control, Development toolkit and system integra$on

Communica$ons services, associated communica$ons hardware (modules, terminals, devices)

Source: SAP/Informa (2012) This slide has speaker notes


New revenue opportunities - the value proposition

Source: The Need for New business Models, GSMA (2012)

Value Proposition Progression (higher Commercial Impact Opportunities)

Basic Connectivity

Managed Connectivity

Platform Innovator

Stewardship Services B2B

B2C

Value evolution will drive business model roadmap

“Our platform helps you to build and launch new, connected services”

“We will take care of all of your energy needs”



What CSPs say and do

“We’re particularly looking at the sections between us and the end user. What our customers want, beyond connectivity, are more services and see there is a big revenue and growth opportunities in platforms, applications and services, and we are looking at these areas very intensively”

Martin Ratcliffe M2M Strategy & Partner Manager, Vodafone Group [TM Forum 2012]

We expect about 50% of revenue to come from connectivity and the rest from services, which we will manage in different ways.

Jurgen Hase, VP, M2M Competence Center, Deutsche Telekom [TM Forum 2012]

“

“

SAP and M2M

M2M Market

Market Challenges and Billing Requirements:

1/ Low ARPU

2/ Massive scale

3/ Changing value chain/s CSP value statements

4/ New business models

Summary



Multi-sided Partner Revenue Sharing

Consumers

App developers

Corporate Clients

App/Service Store

Resellers

¥

$

€

Module and Terminal vendors

System integrators

Specialized solution providers

Specialized communication providers

€$

£

¥

€£

$

NW operators

Specialized service providers

Service Provider



12.7% 3.6% 0.9% 2.7% 4.5% 10.9% 11.8% 11.8% 14.5% 15.5% 20.0% 20.0% 27.3%

46.4% 51.8%

Don't know / Other

Military / defence Agriculture / food

Oil and gas / mining Manufacturing /

Integrators Public safety

Consumer Operators / MVNOs

Health Financial services

Automotive Utilities

Transport and

% of CSPs

CSPs’ target industries

Opportunities: ü  Seek horizontal scale of M2M services and apps ü  Focus shift to specific apps versus specific industries ü  Monetize the value that lies in the data

Source: Informa & SAP, 02/2012

SLA based

RUN IT IaaS

Infrastructure as a Service

BUILD IT PaaS

Platform as a Service

USE IT SaaS

Software as a Service

App based

Recurring fee

Freemium

Usage based micro payments

Revenue share

CHANGE

AHEAD

Revenue capture in the M2M value chain Top concern for CSPs Source: Informa & SAP, 02/2012

!


Resources

Explore Market Dynamics

Monetizing Services in the Hyperconnected World Shifting business models from products to services

M2M Communications Turn Potential into Profit – an Informa and SAP survey

Rise of the machines Moving from hype to reality in the burgeoning market for machine-to-machine communication


Customer references SAP BRIM in Telecommunications


TELUS – Increasing Revenue and Improving Customer Service for Prepaid Subscribers with SAP Convergent Charging

Company

TELUS Communications

Headquarters

Vancouver, Canada

Industry

Telecommunications

Products and Services Wireless, data, Internet protocol, voice, and television services

Employees 40,100

Revenue

CAD$10.5 billion

Web Site

www.telus.com

Executive overview BUSINESS TRANSFORMATION

The Company’s top objectives •  Move away from legacy systems to enable online charging •  Improve charging domain performance to reduce revenue loss •  Offer flexible price plans to accommodate diverse customer needs

The resolution •  Implemented the SAP® Convergent Charging application for the prepaid subscriber

base •  Assembled an internal delivery team responsible for rolling out the application on time

and within budget •  Tested performance and architecture with ancillary systems to ensure targets were

adequately met •  Integrated with MediationZone from DigitalRoute (now the SAP Convergent Mediation

application by DigitalRoute)

The key benefits •  Support for a larger volume of interactions with customers, better service, and

improved customer experience •  Increased revenue and reduced overall cost of ownership •  Material increase in ARPU

“TELUS’ Customer First declaration compels us to be clear, helpful, and dependable. With the real-time data rating provided by this application, we have been able to launch data on smart devices for prepaid subscribers without delays. When a customer purchases a data plan, it becomes effective immediately.”

Ibrahim Gedeon, CTO, TELUS Communications Company

TOP BENEFITS ACHIEVED

100% Reduction in revenue loss due to late charging

<1 second Time required for customer feature purchases to take effect (reduced from four hours)

99% Reduction in charging system response time


AT&T Business: Converging Billing across 60+ Billers

Company

AT&T Inc.

Headquarters

San Antonio, Texas

Industry

Telecommunications

Products and Services wired and wireless telecommunications

Employees

183,000

Revenue

US$66 billion

Web Site

www.att.com


î Reduction in DSO

Reduction in bad-debt write-offs

ì Accelerated cash collections

Improved agent productivity

BUSINESS TRANSFORMATION

The Company’s top objectives •  AT&T Business Services has 60+ billing processes and systems •  Rooted in a product-focused history •  Expensive to maintain - redundancy drives costs when responding to business

changes •  Difficult to get an integrated financial view of the customer •  Desire to strengthen financial controls prior to the Sarbanes-Oxley Act •  Desire to improve back-office efficiency and move towards a functional role for back-

office staff

The resolution •  Implemented SAP Billing for Telecommunications in an Oracle back-office

environment •  Integrated with several legacy billing systems •  SAP solution consolidates information from all billers and scales call-center to 1000s

of users

The key benefits •  Reduced A/R DSO, Accelerated Cash Collections •  Reduced Reserves, Reduced Carrying Cost •  Reduced Bad Debt Write-offs


Swisscom Mobile looks to SAP software to transform credit and collection processes

Company

Swisscom Mobile

Headquarters

Bern, Switzerland

Industry

Telecommunications

Products and Services Mobile telecommunications

Employees

2,460

Revenue

SFr 4.49 billion (€2.8 billion)

Web Site

www.swisscom.ch


The Company’s top objectives •  Implement flexible IT solution that enables fast response to competitive challenges

and growth opportunities •  Revamp operations to increase revenue, reduce debt, and ensure consistent quality •  Replace legacy software with SAP application that reduces maintenance costs,

improves efficiency in payment and collection processes, and avoids cost-intensive modifications

•  Minimize legal and compliance risks with accurate and flexible reporting

The resolution •  SAP Solution and Services: SAP Revenue Management and Contract Accounting

(SAP RM-CA) application •  Redesigned IT landscape and organization to support customer-based processing •  Developed use cases and prototypes early via collaboration among business experts

from SAP Consulting, IT staff, and test team •  Implemented project on time, on budget, without customer disruption

The key benefits •  160% ROI with payback achieved in 3.5 years •  SFr 4 million (€2.5 million) annual reduction in operating costs and massive reduction

in bad debts •  SFr 10.5 million (€6.5 million) annual increase in revenue

“Thanks to the improved business model enabled by SAP Revenue Management and Contract Accounting (RM-CA), routine, intensive manual efforts by our credit and collection personnel are a thing of the past.”

Hans Suess, Head of Credit and Collection Management, Swisscom Mobile


20% Fewer dunnings

40% Fewer blockings

35% Fewer full-time equivalents required per million customers


Swisscom Mobile looks to SAP software to transform credit and collection processes


The Company’s top objectives •  Increase collections of accounts receivables and speed up payments •  Provide collections managers with more flexible and powerful dunning tools •  Consider a wider range of parameters in forming collections strategies •  Employ business rules evaluated at run time in determining next steps to take in

dunning processes

The resolution •  Began with prototype to earn confidence, convey the new approach, and elicit

requirements from business users •  Completed implementation on schedule and within budget •  Delivered ready-to-use collection functionalities in a preconfigured call center

framework

The key benefits •  Changed perception of collections from necessary evil to profit center •  Implemented remote access via the Web, enabling external agencies to perform

collections •  Drove high-risk customers to lower-cost products •  Automated processes, reducing headcount •  Increased collection agents’ efficiency

“Our dunning improvements have had such a profound impact on our cash flow that Credit & Collections is now viewed as a key contributor to the business – not the necessary evil it was in the past.”

Vassilis Vassilakis, Financial Solutions & Decision Support Systems Director, WIND Hellas

Company

WIND Hellas

Headquarters

Athens, Greece

Industry

Telecommunications

Products and Services Mobile , fixed and Internet telecommunications

Employees 1,300

Revenue

€1.073 billion (2009)

Web Site

www.wind.gr/en


40% Increase in collections productivity

30% Increase in speed of changing collections logic

Daily Reassessment of complete subscriber base instead of monthly before


MTS Allstream: Unifying Multiple Billing Systems to Enhance Customer Care

Company

MTS Allstream Inc.

Headquarters

Winnipeg, Canada

Industry

Telecommunications

Products and Services wired and wireless telecommunications, internet, and TV

Employees 6,000

Revenue

CAD$1.8 billion

Web Site

www.mtsallstream.com


The Company’s top objectives •  Unify invoices and create a consistent bill format for multiple line-of-business billers •  Manage financial interactions in a customer centric manner •  Standardize collections processes and reduce cost of payment processing •  Increase productivity of service reps

The resolution •  Implemented the SAP® Convergent Invoicing package along with functionality for

customer financial care and revenue and collections management in the SAP Customer Financial Management package

•  Received excellent support from business constituents •  Engaged strong technical resources from SAP Consulting for implementation

The key benefits •  improved customer experience and enhanced customer satisfaction by creating a

simplified invoice •  Reduced collections calls to customers with streamlined collections processes and

transparent practices •  Streamlined service calls using identical bill images for service reps and customers •  Reduced financial risk with more accurate measurement of consumer

creditworthiness

“With SAP Convergent Invoicing we transformed our billing environment to deliver a single, easy-to-understand bill to our customers – faster and cheaper than many other telecommunications companies in North America.”

Doug Pelland, Director, Solutions Management, MTS Allstream Inc.


25% Reduction in calls received in customer care

15% Decrease in paper, printing and postage costs


Telekom Slovenije IPKO: Prepaid Quadplay

Company

IPKO Telecommunications LLC (Telekom Slovenije group)

Headquarters

Pristina, Kosovo

Industry Telecommunications

Products and Services

Mobile and fixed-line voice, Internet, TV

Subscribers

400,000

Web Site

www.ipko.com


The Company’s top objectives •  Handle rapid growth in a competitive market •  98% prepaid market requires constant promotions to ensure loyalty •  Cover all services in a single charging solution usable by business analysts

The resolution •  Implemented the SAP® Convergent Charging application initially for broadband •  Extended implementation first to mobile (replacing a prepaid solution from their

network vendor), then to IPTV

The key benefits •  Customer reports having a bright idea on Monday,

configuring it in the solution on Tuesday, running promotions on Wednesday and seeing results by the end of the week

“SAP Convergent Charging gives us the freedom to react quickly to market demands and be very creative with our price plans and bundles. We can adjust our price plans in real-time without disrupting service. Giving us a real advantage in keeping ahead of market demands.”

Akan Ismaili, Former CEO, IPKO Telecommunications LLC


<1 day To configure new quadplay promotions (down from 3-6 months in previous mobile prepaid solution)

FIX

CONVERGENT GSM

GSM


XOX Malaysia: Competing on pricing & charging

…whether postpaid, prepaid or hybrid – XOX is all

about innovation.

…with unparalleled charging and

payment flexibilities.


NRJ Mobile, France: targeting a youth audience

“As a pure MVNO it’s essential that we can be reactive and quickly introduce innovative services and price plans for our customers both now and in the future. By choosing [the SAP solution], we have complete control over the back office and the pricing, rating and billing functions.”

Jerome Birba, Director of the NRJ Mobile Project

Youth Targeted

Offer Free

Concert Seats


Carrefour Mobile, France: combining in-story loyalty with mobile services

“Our objective is to offer our customers the most relevant and attractive services and products available, and this includes households that own a Carrefour loyalty card. Our success is determined by our ability to quickly respond to the needs of our clients. We appreciate the agility and the single solution nature of SAP Convergent Charging.”

Sébastien Mesnil, Division Manager, Carrefour Digital Services


T-Systems RUNS BETTER SAP CRM and Billing platform

“Thanks to the SCRUM methodology, we were able to succeed in just twelve months, a system that was developed over eight years in one of the largest CRM installation in Europe.” Detsch Peter, T-Systems International GmbH

Company

T-Systems

Headquarters

Frankfurt, Germany

Industry

Telecommunications, Service Provider

Products and Services

Telecommunications and IT Services for large enterprises

Employees

48,200

Revenue

US$9,5 billion

Web Site

www.t-systems.com

Executive Summary � The SAP team delivered a highly successful solution for T-Systems’ Service Provider business of 4300 users substituting an existing CRM and a new Billing platform

� The Company’s top objectives •  Replacement of old cost and maintenance intensive Siebel CRM •  CRM is the central link for all business relevant processes

•  Ensure reliable and traceable billing for new and existing services

� Resolution •  Implementation of SAP CRM (Sales and Service except incident mgmt.)

•  Only 11 months project duration with the SCRUM implementation approach •  Implementation of SAP Billing for Telecommunications for new Services

� The key benefits •  Single point of truth for customer relevant information •  Implementation of an E-t-E infrastructure

•  Decreasing complexity of interfaces and number of systems •  Increased visibility and correctness in the Billing process


15% TCO reduction

360° View of the customer


T-Systems: Profile

89 DATACENTERS

WORLDWIDE

20,000 CLOUD

SYSTEMS

1.6M MANAGED DESKTOPS

•  Manage 70% of top 100 companies of all industries in Germany

•  No. 1 in the ICT market in Germany •  No. 1 in EMEA in manufacturing •  No. 1 in Germany in the transport sector •  No. 1 in Germany in the public sector


Kunde

Customer Contract

Customer Inventory

Customer Invoice

ORCA

SAP Charging)

Guiding

Rating

SAP -CRM

Lead /Oppty.

Technical Order Management Ready for

Service Usage

Recording Provisioning

myMDS Order

Placement

Inventory

Invoicing Rev Mgmt

SD

CCP

Customer Order

Catalogue

Sales - & Order Management

SAP ERP

Usage - Guding & Rating Invoicing / Accounting/ Financial Customer Care

§  Implementation of an integrated "Commercial Order Management" system chain to represent and process the relevant contract types as well as the product and service portfolio

§  High flexibility in respect of new service offerings like Cloud Computing,

§  Less complexity in order to implement various global customer hierarchies, contract designs, pricing models and bill presentment.

§  Shortening “time-to-market” and implementation lifecycle for product innovation.

Challenge §  Better integration capabilities e.g. master data

structures, processes integration by using an end-to-end embedded infrastructure.

§  Unified usage of SAP data structures eliminates complexity, thus reducing effort for interfaces, manual correction of data, ...

§  Single point of truth for customer relevant information and 360 degree view on the customer.

§  Flexible framework based on best practices focused on mass data and B2B business.

SAP Value Add

SAP “Lead-to-cash“ infrastructure

Contract MM

IT Backbone Lead-to-cash: CRM – CC – CI - RMCA

Other Modules


Value Add from T-Systems Point of View

IT strategy Business processes

Management User

§  Greater flexibility in the development of innovation through greater transparency of the application landscape

§  High integration into the T-System application landscape

§  Stringent user-guidance in relation to procedural and methodological tasks

§  SPOC of documentation along the corporate value chain and corporate processes

§  Intuitive tool-handling

§  Intelligent steering of the required process variation

§  Central source of information for all customer-related activities.

§  Consistent reporting

§  IT operating cost reduction

§  Minimization of the required application interfaces along the supply chain

April, 2013

SAP Solutions for Online Charging

January 2014

Legal disclaimer All information contained in this presentation is provided under NDA The information in this document is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This document is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation and SAP's strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information on this document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP intentionally or grossly negligent. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.


Origins of the SAP Solution for OCS

1996

2000

2009

2012

R&D project for cross-service, prepaid/postpaid, multi-sided monetization

Spinout of Highdeal, VC-funded, hundreds of customers and NEP OEM partners

Acquisition of Highdeal, launch of SAP Convergent Charging as a modular part of CRM, Charging and Billing solution portfolio

Partnership with DigitalRoute for integrated Convergent Mediation and Predictive Policy Management


SAP Billing for Telecommunications

OCS Scope

Manage Subscribers Collect Usage Price and Charge Bill and Settle

Generate Correspond-

ence Handle

Payments Manage Credit

and Collections

Provide Customer Care

SAP Customer Usage Analytics

§  Customer analysis §  Usage analysis §  Financial analysis

Integration to hybris Omni Channel Commerce, SAP 360 Customer or other CRM systems

SAP Convergent Mediation

by DigitalRoute

§  Online and Offline Mediation

§  Policy Management

SAP Convergent Charging

§  Service pricing and modeling

§  Online and Offline Rating

§  Partner revenue share calculation

§  Online account balance management

SAP Convergent

Invoicing

§  Customer billing & invoicing

§  Partner payment statements

SAP Customer Financial Management

§  Revenue management §  Credit Management §  Payment handling §  Online bill presentment

SAP Document

Presentment by OpenText

§  Invoice personalization

§  Document archive management

SAP Sales and Order

Management

§  Product Catalog and offer management

§  Order capture §  Order

Distribution

SAP Convergent Pricing Simulation

§  What-if simulations of pricing changes based on mass historical data

§  Financial customer care §  Collections management §  Dispute management

SAP HANA Real-Time Data Platform


Traffic Growth

Move counting and aggregation into the network

Off load back-end systems

Retain rich Big Data for analytics

OCS Challenges & SAP Approach

Suppor t mul t ip le lines of businesses with a single highly-configurable solution

Proven for prepaid, postpaid, B2C, B2B, M2M and multi-sided partner settlement

Time to Market for New Services

R e d u c e t i m e t o value and leverage legacy OSS/BSS by deploying in modular steps

Massive scale-out model for low TCO

Cost Pressure


SAP Online Charging System Capabilities

SAP OCS

Voice Data Session Control PCEF Service

Platforms

IMS

Billing Order Management CRM Business

Intelligence Revenue

Assurance

Enterprise Web Services

3GPP/IN Standard Protocols

Online Charging

Account Balance Mgmt

Taxation

Offline Charging

Partner Revshare

Analytics

Rating B2C, B2B

Rerating

Mediation PCRF

Notifications

Counting & Aggregation


3GPP Compliant Architecture

PCEF AF BBERP

V-PCRF S9

Gy Gz Gx Gxx

TDF

SAP Predictive Policy

SAP Convergent Charging Online Agent

UDR SPR

CRM

UDR SPR

Charging Product

Instantiation

Traffic Detection Function

OCS OFCS UDR SPR Online Charging System Offline Charging System

Application Function Bearer Binding and Event Reporting Function

Roaming

Policy and Charging Enforcement Function / Gateway

SAP Convergent Mediation

SPR

Subscriber Profile Repository

UDR

User Data

Repository

Sp Ud

External

Sd

Policy Product Instantiation

GGSN/PGW

Rx

API (Gy “Like”)

API (Sy “Like”)

SAP Hana


File output

Billable/Non billable info, additional source for rule

SA

P H

ana

Age

nt


Evolution of mediation platforms

Mediation

●  Millions of records

●  Principal use: billing and revenue assurance

●  Mainly offline processing

Advanced Mediation ●  Billions of records

●  Offline & online mediation, ETL, PCRF on one platform

●  Linux and COTS HW

Informa$on brokering ●  Tens of billions of records ●  Mediation as a strategic

enabler with decisioning, customer centric data reduction and value creation

●  Cloud as a disruptive enabler platform

Control cost Manage the data overflow

Simplification of systems

Control and optimization of

revenue streams

CO


Convergent Mediation Processing capabilities and interfaces

Processing capabilities Data validation Routing Enrichment Format conversion Filtering Error management Merging / splitting Usage counting Policy Control Complex Event

Processing

Sources Destinations

Charging and Billing

DWH / Analytics

Roaming/ Interconnect

Tracking M2M

Policy Management

Fraud Management

Network Management

Customer Experience

Management

Networks

Databases

Machines &

Devices

Applications

Off-the-shelf interfaces Diameter (any: Gy, Gx, Sy…) Web Services Radius JMS (S)FTP HTTP Netflow TCP/IP sockets SCP SNMP Disk GTP’ LDAP Twitter DB (multiple) HDFS (Hadoop) REST/JSON SAP HANA SAP CC


Convergent Mediation: Flexible configuration

Workflow engine enabling rapid configuration Powerful and flexible configuration language (APL) Visualization of all data flows, from input source to target system Full self-sufficiency �  Large library of off-the-shelf

connectors (a.k.a. agents) for rapid interface integration

�  Other non standard agents can be built in DTK

�  Realization of new use-cases not dependent on product changes


Convergent Mediation OCS Capabilities

Protocol Support •  Full diameter support:

•  Any Diameter flavor supported via simple configuration (Gy, Gx, Sy…). •  Support for RFC 3588 (Diameter Base Protocol). •  Any AVP can be added by simple configuration through the user interface.

•  Additional protocols include Radius, Webservices, JMS, TCP/IP. Platform can be used as a protocol converter - including between different diameter versions or to offline support.

Processing logic •  Processing logic via simple configuration, using mix of icon based interface and scripting •  Online to offline, offline to online and online to online processing are available. Native load sharing

capabilities. •  Session persistency capabilities, with timeouts. Flexible aggregation criteria. Sessions to disk, in memory

or in geo-redundant in-memory databases •  One to many online outputs, routing control (including session persistent routing) functionalities using

existing agents. Monitoring •  Full monitoring layer, with built-in KPIs (latency, queues…). Rich alert mechanism. •  Overload protection for diameter, with configurable strategies per diameter application


Convergent Charging

“” The flexibility and speed at which we could create and modify price plans was second to none. It is so user friendly that now even non-technical financial managers are able to introduce new tariffs.

Raphaël Bichon, Project Manager, SFR

Accelerate time to market

Designed for use by business users

Configure (not code) price plans, charge plans and bundles for customers and partners

Allocate fees and credits to multiple financial accounts prepaid, postpaid, hybrid

Optimized for maximum performance with low TCO


Charging Modes •  Event Charging: Immediate Event Charging, Event Charging with Unit Reservation •  Session Charging with Unit Reservation

•  Reserve, Confirm, Cancel, Time-to-live, Default Resolution, Inverse Rating, Advice of Charge, Reauthorization Request*, Policy Counter/Spending Limits (Sy)*, Multiple Service Credit Control*

•  Persistency of all data across hardware failures, including transient session data •  Real-time tax determination VAT or US Telco Taxation •  Full rerating capability for postpaid online/offline Account Balance Management •  Subscriber accounts can contain multiple prepaid wallets and postpaid accounts •  Each prepaid wallet has its own lifecycle: active, blocked, locked, closing dates •  Alerts on balance thresholds, lifecycle events •  Hybrid prepaid/postpaid charging: Decision Tree logic to determine which account/wallet to impact for

charges •  Refills/Topups: Decision Tree for which balances/counters to update, which lifecycle dates to change;

threshold-based immediate account refills*

Convergent Charging OCS Capabilities

* Lab Preview


Optimize volumes along the process chain

Analytics/BI

Billing Revenue

Management

Online Rating & Charging

Counting & Balance Mgmt Aggregation,

Detail Filtering

Online Mediation

Filtering, Counting &

Aggregation

Phase 2 Phase 1 Before

System 1

System 2

System 3

System 4

Tier 1 Operator in Western Europe: Record Reduction across BSS systems


Solution Architecture

Convergent Mediation

•  Centralized control logic and distributed execution

•  Increase capacity by adding servers hosting the execution context

Convergent Charging

•  Load-balancing with dispatchers and guiders

•  Separate processes for rating, provisioning, bulkloading and taxation

Common Attributes •  Java-based, no hardware dependencies, commodity hardware, OS, DBs and VMs •  Transaction persistence for stateful data, immediate failover, geo-redundancy through DB

replication and/or multi-site subscriber partitioning •  Dynamic scaling, add/remove nodes or upgrade with zero downtime

Access, O&M, Config UIs

Platform Execution Guiding, Charging


SAP Convergent Mediation Scalable and Reliable

BSS Mediation Tier-2, Europe

BSS Mediation Tier-1, US

LTE, real-time OSS Tier1, APAC

CEM Probe Tier 2, Europe

LTE Real-Time OSS,

Tier 1, US

3G RAN, OSS Tier 1, APAC

Radio Access Monitoring feeding Performance Management systems drives highest volumes today

188 Billions -‐ <250k$ 103 bn

35 bn 39 bn

6 bn 0.2 bn

Data volum

e

(Billions of e

vents/day)

Telco Grade High Availability SAP Aligned Support Geo Redundancy


Convergent Charging scaling and Performance

Requirements: 99.999% HA, <40 ms Latency, 200,000 TPS Common Sizings

Subscribers 1M 10M 25M

Application Blades 7 10 19

300,000 773,000

TPS, with counter update

TPS, with no counter update Mobile subscribers

200 M Benchmark Results


SAP Solution for Predictive Policy Management

Mediation Aggregated Events User plan data traffic logs

SAP HANA

Hana Analytics engine does all analytics work of analyzing all events. Result is returned to Policy

Policy Network control

instruc$ons

Network Analytics

Collect, correlate, aggregate and enrich events from all nodes, keep in-memory and match different event types and produce output.

Policy collects results from Hana, Transforms that to instructions to network, Controls network according to those

Usage habits

Charging CRM Billing

Lifetime value, credit score

Loyalty, purchase habits

Usage Debts, financial scoring…

PredicPve Analysis


Telus Mobile Prepaid Data Use Case

Convergent Mediation from DigitalRoute

TELUS Network GGSN PGW

Diameter Protocol (Gy)


SAP CC API

Balance Management

System (Alcatel- Lucent)

Diameter

MMSC SMSC

1.  Request from Network is received over Diameter (for Data, SMS…)

2.  The Mediation solution checks if it needs to forward it to SAP CC or another system

3.  The Mediation solution asks SAP CC to compute a price, update counters and for any notifications

4.  The Mediation solution asks the Balance Management System for an authorization for balance updates

5.  The answer is sent back to the network element (allow/block) as well as notification orders


Real time control of data consumption for subscribers

Alignment with BSS transformation strategy

PCRF for multi vendor network able to support strategic requirements

Large Nordic Telco Operator

GGSN / PGW (NSN Flexi ISN & Ericsson M120)

PCRF

PCC (”Gx”)

DCCA (”Gy”)

Ac$ve Media$on

Offline Charging (ASCII / batch)

OFCS

AF (Acme)

Rx

IT Online

SOAP (Prov, query,

noP) ASCII/batch (Provisioning)

OCS

Gy

DigitalRoute

Ericcson, NSN

First phase deployed in 3 months:

•  Fixed price for mobile data in selected countries

•  Subscribe through SMS or customer service

•  Multiple packages valid for 24h

•  Activation on first use, automatic renewal offer

•  Low quota warning via SMS, SMS balance enquiry

Requirements

Results


IPKO: Convergent Charging Architecture

SAP CC


Summary & Next Steps

Potential Next Steps

•  Deep dive workshop and demo

•  SAP Telco Challenge: we configure your most challenging scenarios

•  Value Engineering: explore business value drivers for OCS

Massive Scalability

One Solution, Multiple Scenarios

Product-based Solution, Low TCO


Telecommunications Internal Community https://jam4.sapjam.com/#wiki/show/68904 Complementing SAP Sales Portfolio and Solution Explorer via social collaboration capabilities among cross-functional stakeholders SAP for Telecoms iPad App https://ipad.mediaspectrum.net/SAP/index.html App that includes all of the assets, sales tools, recent news and announcements in the industry Telecommunications Flipboard Channel https://flipboard.com/section/beyond-telco-b3hBWT Magazine and community sharing relevant stories in the Telecoms industry Social Media Channels

SAP.com: SAP for Telecoms Twitter: SAP for Telecoms YouTube: SAP for Telecoms Facebook: SAP for Telecoms

Telecoms Internal Community

SAP for Telecommunications Providing the Tools that You Need!


Visit Us Online to Learn More

https://twitter.com/SAPBRIM

www.linkedin.com/groups/SAP-Billing-Revenue-Innovation-Management-4471112

www.youtube.com/playlist?list=PLEA13AE5BFA022836

http://scn.sap.com/community/crm/sales


No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation.

IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System z10, System z9, z10, z9, iSeries, pSeries, xSeries, zSeries, eServer, z/VM, z/OS, i5/OS, S/390, OS/390, OS/400, AS/400, S/390 Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6, POWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes, BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex, MVS/ESA, AIX, Intelligent Miner, WebSphere, Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM Corporation. Linux is the registered trademark of Linus Torvalds in the U.S. and other countries.

Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other countries.

Oracle and Java are registered trademarks of Oracle and/or its affiliates. UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.

Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc.

HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachusetts Institute of Technology.

© 2013 SAP AG. All rights reserved.

SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries.

Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects is an SAP company.

Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase, Inc. Sybase is an SAP company.

All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.

The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior written permission of SAP AG.

brim enablement telecommunications

Documents

sap ag

sap billing

permission of sap

public mobile subscriptions

public china

public europe

public social messaging

prior year source