changing business models are creating new customer value but …

Changing Business Models ARE Creating New Customer Value But …

Does Monetizing New Services Mean Real-Time Systems?

Karl Whitelock – Director Operations & Monetization (O&M) Global Strategy

Stratecast | Frost & Sullivan

Analyst Briefing Presentation11:00 a.m. EDT – August 6, 2014

© 2014 Stratecast | Frost & Sullivan, all rights reserved.

Proprietary and Confidential to Stratecast.

Abstract

�Monetizing Services—charging customers, collecting revenues and compensating partners—containing content or cloud-based functions is not only complex, but magnifies the need for real-time rating & charging, self-care, and partner management. Stratecast will discuss how the combination of these functions enhances the business of life for both consumers and business customers, not just account for gigabytes of data consumed.

�This webinar will help to discover:

• The significance of real-time in support of complex business models involving wholesale business-to-business (B2B) and business-to-consumer (B2C) relationships

• How real-time delivers on the promises of personalization and customer-enabled flexibility

• Through implemented CSP examples, how Over the Top (OTT) providers and network operators are working together to deliver greater customer value

• How some CSPs are using real-time service enablement, operational control and monetization functionality to enhance the customer’s digital experience

• Why real-time functionality is strategic to the future of the digital communications marketplace as 4G mobile and the Internet of Things (IoT) expands customer perceptions and expectations of mobile connectivity.



Today’s Presenter

�One of the original founders of Stratecast—focused on the business strategies of the communications industry—Mr. Whitelock established the Operations & Monetization (OSS/BSS) practice.

�He has authored over 190 publications concerning problems relative to the OSS/BSS marketplace. He covers the BSS functions including mediation, rating & charging, core billing, policy management, interconnect & settlements, content partner management, subscriber data management. Also the monetization functions for Virtual Networks

�Mr. Whitelock helped to establish the Enterprise Business Enablement concept for meeting the needs of Cross-Industry 2.0 Virtual Services.

Karl Whitelock – Director Operations & Monetization Global Strategy Practice




Agenda

�Business Market Drivers and the Strategy of Future Change

�Delivering on Promises (Implemented Examples)

�Changing Business Models and Monetizing Business Value



Communications Industry – Business Model of Yesterday (and Today)

While the network remains important today, the key is using technology and the network to provide customers a positive experience. This means doing business differently than

in the past. It means using customer insight effectively in a new business paradigm.

Our Connected

World

Fixed-Line

MobileIP �Voice�MMS / SMS

�2.5G Data (GPRS/EDGE)�3 G Data (UMTS)�3.5G Data (HSPA)�4G Data (LTE)

Mobile�Routers�Switches�Databases

IP

�Voice�Broadband DSL

�Cable

Fixed-Line

Network TechnologySource: TAM, TMF GB929

Fulfillment Assurance Billing

Customer Management

Service Management

Resource Management

Supplier/Partner Management

Enterprise Management

Product Management

Market/Sales Management

OSS / BSS

• Consumers• Small Medium Business

• Enterprise

• Fixed-line Voice• Mobile

• Broadband Data

Focus on Customers

Focus on Technology



Market Changes Have Created Today’s New Business Reality

Convergence of these drivers and other market changes are creating a completely new business landscape, one that requires a reexamination of the role that the monetization

and customer insight processes play today and for which they will play in the future.



New Business Landscape for Enterprise, Business Customers and Consumers

Today’s New

Business Landscape

People AppsDevices

Machines Cloud

CSPs, Partners, Suppliers and Customers Will Thrive in a Tight Ecosystem Where B2B2C and B2B2B Business Models Collectively Deliver Value.



New Business Models – Real-Time Wholesale and Retail Business Accountability

Wholesale B2BContent Partner1

Retail B2CnContent Partnern

Cloud Services Provider1

●

●

●

Cloud Services Providern

Enterprise (Service Consumption)

SM BusinessRetail B2Bn

Wholesale1 B2Bn

Enterprise(Mobile Solutions)Wholesale2 B2Bn

• CSP and Content Partners (B2Bn)• CSP and Cloud Services Providers (B2Bn)• CSP to each of its millions of end users (B2Cn)

• CSP and its SM Business Customers (B2Bn)• CSP and its Enterprise Customers (B2Bn)• CSP and its Enterprise Mobile Customers (B2Bn)

Network Access and Partner Relationships to be Managed:

Physical Network (RAN 3G, 4G, 4G+)

CSP

Fixed Broadband

Network

User1

User2User3

User4

Consumers



Agenda






AT&T New Business Model Examples

�Sponsored Data (Launched January 2014)

• Healthcare (UnitedHealth)

• Mobile Marketing (Aquto Corp)

• Kony (Apps for Business)

• Hershey (Retail mobile app, powered by Kony)

�Amazon Whispernet – Kindle (with AT&T, start 2009)

�Mobile Share Value Plan - Tiered data plan with free voice and text (present)



SingTel – New Business Model Example

�SingTel DataRoam Saver Plan and SingTel Network Lock (new)

• SGN $15, $20 and $30 per day depending on the countries visited.

− SE Asia = $15/day

− Greater Asia & ME = $20/day

− NA and Europe = $30/day

• Remember these roaming plans are for unlimited data access



T-Mobile – New Business Model

Stop burning data when you stream music

No overages, No data caps, Unlimited streaming



3 Austria – New Business Model

No cost for music streaming.

�Spotify on Three Austria does not count against a data usage plan for streaming music, the first six months.

�After this period, Spotify is a flat-rate monthly add on service to any data usage plan. Again, all Spotify data usage does not count.



Sprint – New Business Model

�Sprint and Pogoplugfor cloud data storage

�All Sprint Smartphone users receive 5 GB of cloud storage free or they can upgrade to unlimited storage for $5 per month.

�Unlimited cloud storage to go with the Sprint suite of unlimited talk, text and data service offerings.



T-Mobile – New Business Model (2)



Verizon – New Business Model Example



2014 Global CSP Survey About Value-Based Service Plans

�Global survey of 177 operators from all geographies

�Value-based data plans charge customers for the value of the service provided and not just speed.

Source: Allot Communications 2014 Global CSP Survey

85% of CSPs globally are leveraging OTT apps to attract customers and increase ARPU85% of CSPs globally are leveraging OTT apps to attract customers and increase ARPU



Agenda






Communications Services are at the Center of the Transformation Strategy for All Other Industries

Financial Services

Retail Manufacturing

Public Services

Government

Publishing

Distance Learning

Healthcare Geriatric Care

Agriculture

Transportation and Logistics

Emergency Services

Auto Insurance

Cybersecurity

Utilities

GlobalCommunications

Marketplace

The converging communications marketplace is the most critical enabler of the evolution plans these industries have as they work to provide a better experience for

their customers. At the center lies the data collection and monetization functions.

The converging communications marketplace is the most critical enabler of the evolution plans these industries have as they work to provide a better experience for

their customers. At the center lies the data collection and monetization functions.



Enterprises Want Configurable Offerings and Pricing Plans

Subscribed Pre-Packaged Charges – Collected set of services for a subscribed fee.

Simple Charges – Transactions such as one-time fees or recurring fees tied to a seat license or time-based subscription.

Usage-Based Charges – Charges based on a quantity of consumption, such as volume of data stored, number of times data is accessed, number or complexity of reports, time of day information is obtained, or hours an application was used.

Service Packaging and Pricing Without Restrictions:

- Usage between services or geo locations, usage of security with applications or business management or operations management, usage combinations of …

- Definable pricing terms and discounts by agreed package with adds or changes anytime

- Partner settlements as services are consumed

- Complex pricing based on combinations of any measurable unit from any industry

(Example) Monetization of Managed (Cloud) Services by Various Parameters:

- Unified Communications as a Service (UCaaS), Managed Security as a Service (SECaaS), Disaster Recovery as a Service (DRaaS), Data Backup and Storage as a Service (DBaaS), Software Applications as a Service (SaaS), Network Connectivity as a Service (NCaaS), Business Management as a Service (BMaaS), Operations Management as a Service (OMaaS), …

Pricing Based On:

- Cross application usage and discounting (buy 3 get one free for a set period)

- Cross service pricing (UCaaS then discount DRaaS or discount two by x%)

- Volume pricing and discounts based on commitments and customer longevity (loyalty)

- Customer service configuration with hybrid cloud deployments

- Professional services or usage for a fee , but if not then a rebate

- Multiple other factors and combinations



Evolution from Traditional to a Virtual Network and Operations Business Model

• Servers, Routers• Switches

• Transport Nodes

Traditional Network Elements:

MobileIP

Fixed-Line

Source: TAM, TMF GB929

Fulfillment Assurance Billing

Customer Management

Service Management

Resource Management



Product Management


OSS / BSS

Traditional Network and Operations Virtualized Network and Operations

Legacy OSS / BSS

Virtual Computing Virtual Storage Virtual Network

Virtualization Layer

Computing Hardware Storage Hardware Network Hardware

Physical Hardware Layer

Business Apps(Enterprise Apps, UC, Managed Security, Backup & Recovery)

Monetization and Management Support of Virtual ServicesFulfillment Assurance Billing

Customer Management

Service Management

Resource Management



Product Management


Network Apps(Security, Geo Location,

Identity Management, Traffic Engineering)

Virtualized Control Layer• Common Command and Control

• Location Definition, Policy Control (Enforcement), and Routing

Orchestration



Customers(Business or Consumer)

Utilities (Water)

Utilities (Electric)

Utilities (Gas)

CSP(as a VSO)

Virtual ServicesOperators (VSOs)

(CSP or Others)

Suppliers

Saas Supplier #3

SaaS Supplier #2

SaaS Supplier #1

Concept-to-Cash: Partner Orchestration, Fulfillment, Monetization and ManagementThe CSP is an Enabler of New Virtual Services and Manages the Business Enablement Platform

(Broadband Connectivity Always Assumed)

Others …

Healthcare Supplier #1

Healthcare Supplier #2

Healthcare Provider

CSP

VSO2

. . .VSO3 VSOnand/or

Cross Industry 2.0 Business Collaboration Model

DataStorage

Security

Web Enablement



New Business Models – Real-Time Wholesale and Retail Business Accountability



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Contact Details

Karl M. Whitelock

Director Global Operations & Monetization Strategy


[email protected]

changing business models are creating new customer value but …

Technology

business customers

wholesale business

business strategies

business b2b

business of life

monetizing business

changing business models

agenda business market