accenture at oracle openworld · accenture at oracle openworld october 25—29, ... telco case...

Accenture at Oracle OpenWorldOctober 25—29, 2015

Migrating to Digital, migrating to a software-defined world

2Copyright © 2015 Accenture All rights reserved.

Discovery & Information Communication Physical Commerce Devices

Apps & Cloud 2 Sided Markets Digital Media & Commerce

News Weather Entertainment

Autos Sports Health

Digital Assistant Finance Maps

Messaging Voice

Social Feed Access

Video Email

1st Party Store

3rd PartyMarketplace Rentals

Wishlist &Registry

Physical Retail & Delivery

Point

Support & Repair

Local & Fresh Auctions Trade In

Storage OS Music

Security Updates Browser

Photos & Video Docs Fitness &

Health

Creativity Productivity Collaboration

Events / Meet Up Transport

SelfPublishing Crowdfunding

Dating Accomm-odation

Ratings &Reviews

Home Services

Digital Books & Magazines Video Music

Apps Games Ratings & Recommend.

Content Curation Digital Store Payments

Gift Cards Offers Subscriptions

Phones Tablets

TV STB & Sticks

Automotive IOT

PC

Watch

Mobile Accessories

Video CommsDevices

eReaders

Home IOT

CommercialIOT

Games Consoles

Headsets &Speakers

PC Accessories

MP3 Players

AR/VR

The scale & scope of digital giants (internet & social companies) is a threat to many industry verticals including telecom operators…


Source: Accenture Digital Consumer Survey 2014

“If the following services were available from all of these providers, which providers

would you consider using for each service?”

…as these digital giants are increasingly being considered by consumers as alternative to operatorsDigital Giants Perceived as Alternative to Telco Operators


Today’s customers are not “owned,” but shared. Digital has fragmented consumers across multiple services, many of which are disrupting core operator offerings

Shared Customers

The average smartphone user splits 30.25 hours per month among 26.8 apps

Traditional Operator Offerings Being Disrupted by Digital

Text Messaging

Voice Calling

Data Connectivity

Yellow Pages

Maps & dedicated GPS devices

Television

Location Based Services


Data from this Western European country identifies Telecom Operators have low Digital Traction when compared against digital disruptors…‘Traction Metrics’ for digital disruptors vs. Telecom Operators [March 2015]

Digital Traction = Scale X Active Usage X Engagement

Total time spent on the app by active users in a day

[‘000 minutes]

=Total Unique

Visitors[000s]

XAverage Daily VisitorsTotal Unique Visitors

[%]X

Average Usage per day per user

[Minutes]

Social Apps

Utility Apps

Operators6

15

16

Telco 1

Telco 2

422,538

49,648

46,670

45,363

22,493

6,274

5,337

177

9%

0.3

0.4

0.4

4.4

4.6

7.8

6.3

9.6

8.4

0.6

21,381

14,323

17,236

17,431

6,099

5,180

3,511

3,345

395

250

118

71%

41%

28%

42%

47%

26%

34%

12%

10%

18%

Source: Comscore; Accenture Value Lab Analysis


OTT players are putting traditional telcos business model under assault…

Operators have increasingly been losing revenues to OTT players over the past years

…while industry profit pools are drying up

Average EALA Cellular

EBITDA ROIC

2008 37.0% 10.7%

2013 31.0% 7.8%

Growth -16.0% -27.1%Source: Consumer Reports, FCC, Capital IQ, Accenture Analysis

Operators are seeing a rapid decline in their profitability

The operators’ traditional business model, founded on revenue from voice, messaging and broadband, continues to be under assault…


Operators continue to have a powerful set of assets, including trusted brands, unique locality, established billing relationships, unique user and usage data and robust networks, positioning them at the center of the digital ecosystem

Consumers perceive their telecom operators as a trustable business counterpart…

Which of the following companies do you trust the most with your personal data?

Source: Accenture Digital Consumer Survey 2015 - Sample base (n=24,000)

…Operators are strongly positioned to extract value out of the digital ecosystem


Building the Digital Operator

Operators must strive to reinvent themselves as Integrated Digital Service Providers (IDSPs), standing up core capabilities—both their own and third-party services—to become a platform for all things digital

IDSPs, or Digital Operators, are focused on four fronts:

Digital Infrastructure Core

• Network 3.0• Cloud• Multi-Speed IT Architecture

Digital Operations • Data in action• Digital Business Operations• Partnership

Digital Services • Video & Content• Industrial IoT• Security

Digital Engagement • Multi-channel Customer Engagement• Differentiated Customer Experience


Devices

Applications

Control Functions

Elastic Core

Access

SDK & APLs Exposure

Products & Applications

Service Platforms, OSS & Analytics

Network, Storage & Computer

HW & SW

Software

Hardware & Software

APs

SDK

• Allows intelligence to be distributed throughout the network and accessible by partners (e.g., collect relevant network activity at each node and externalize)

• Creates a modular network design to support myriads of delivery models and topologies (e.g., a scalable, virtualized network optimized for IoT)

• Creates interconnectivity and federation for both internal and external collaboration (e.g., self-provisioning of services)

• Focuses on real time / near real time

The modernized, software-based network will allow the Digital Operator to help deliver high-quality services in a more efficient cost modelNetwork 3.0


A large technical transformation to be done…

SDN / NFV


…but even bigger business/operational transformation is requiredTechnology Strategy

Operating Model

Financial Model • Revamping vendor networking pricing structures; moving from h/w to s/w• Changing to per-seat pricing for enterprise customers

• Selling application delivery versus network products

• Migrating legacy products, customers and network, first to IP and then to SDN/NFV• Acclimatizing to the very fast technology changes

• Transforming focus from Network to Service performance• Setting interoperability & certification standards• From working with a few hard-wired vendors, to creating an open environment, with

multiple partners and that can even be rapidly extended into new industries

Talent Management • Collapsing IT & network into a single technology organization• Transforming and upskilling Engineering from circuits to software• A workforce that collaborates and innovates, not ‘just’ maintains


Telco Case study

Migrating legacy products, customers and network, first to IPand then to SDN/NFVTechnology Strategy

Copyright©2015Accenture.Allrightsreserved.Confidential.Copyright©2015Accenture.Allrightsreserved.Confidential.Copyright©2015Accenture.Allrightsreserved.Confidential.

2

GlobalTier1MNO

Copyright©2015Accenture.Allrightsreserved.Confidential. 13

• Designoftheneworganizationgroupvirtualisation program• Assessanddesignprocessestodrivevirtualisation accordingto

eTOM /iTIL schemasforNFV/SDN• EnableregionalizationandpermanentfocusonToC initiatives

acrossEngineeringEUregion• ForeachOpCo,assessinitiatives,adoptedarchitecturesand

technologiesandidentification ofgapsagainsttheToC Blueprint• RoadmapdefinitionalignedtoBlueprint• SupportingNFVengineeredgrouptostartfirstVoiceCore

onboardinginitiativesoncommonTelcoOverCloudInfrastructure(BCvalidation,TechnicalfusibilityandsizingandSolutionHighLevelDesign).

• WithintheEuroperegion, ourclient isaimingtodefineastrategytosupport“TelCo overCloud”initiatives,harmonizingeffortsandneedsacrossEuropeorganizationandtechnologysolutionsfollowingaphasedapproach

• Acomplexstreamliningofprocessesandpeopleorganizationisinprogressinparalleltotechnologydeploymentfollowingauniqueblueprintandguidelines

AccentureRole

Ongoing ProjectTechnology Strategy

Migrating legacy products, customers and network, first to IP and then to SDN/NFV (1/2)

Copyright©2015Accenture.Allrightsreserved.Confidential.Copyright©2015Accenture.Allrightsreserved.Confidential.Copyright©2015Accenture.Allrightsreserved.Confidential.

Infrastructure Layer

ApplicationLayer

ServiceLayer

TA1 TAnTA2

• Other Applicationsasking forresources assignment• NWAnalyticsproviding service/customer infoneeded to

brokerbusinessrules forresource management• Other datasources (additional dataretrieved bybroker

todecided resource assignment)

CMS

TCSONWOSS/BSS

Compute Storage Network

vCompute vStorage vNetwork

Virtualisation Layer

….VM1

VMm

….

VM1

VMm

….

VM1

VMm

….

EMS1

EMS2

EMSn

….

*VNFM is Additional softwaremodule of the EMS**VIMis defined as CMS

ETSIVNFM*

ETSIVIM**

Copyright©2015Accenture.Allrightsreserved.Confidential. 14

Technology Strategy

Migrating legacy products, customers and network, first to IP and then to SDN/NFV (2/2)


Network Capacity Investment insights creation, based on Analytics Traffic Forecasting model, able to balance network saturation and customer value

Transforming focus from Network to Service performanceOperating Model


Transforming focus from Network to Service performance (1/2)Operating Model Key Results

§1 to 80 ratio for ‘SOC’ events from old ‘NOC’ events

§Escalation trouble ticket reduction 70%§20% service availability increase (average per cells)

§NPS increase (not disclosed)

Network and other technology enablers

Pre-SOC:focus on resource

Post-SOC:focus on service

Issue may or may not be reported by customer

Customer Ops Marketing& Sales

Marketing& Sales

SOC NOCNetworkPlanning

Network Engineering

NOC domain #2

22domain #1

Ntwk Trouble-shooting

Ntwk Surveillance

1

Ntwk. alarms

Ntwk.perf. measures

3 31

Service degradation

Network and other technology enablers

Network fix / tuning

Network Engineering

NetworkPlanning

Network KPIs;NE re-config / re-planning recommendation

Srv. Surveillance

Service perf. and QoE surveillance

1

Ntwk. alarmsNtwk.

perf. measuresCDRsUsage

CTTs

CC teleph.queues

Social media complaints

Notification on customer impact and Estimated. Restoration Time

2Service expert

Single accountability for service performanceü

RCA------3

Ntwk. Perform. mgmt

Ntwk. Troubleshoot.

Off-line flowNetwork and service KPIs; NE and service re-config / re-planning recommendation

üRight first time

Service performance degradation resolution

35

Domain expertDomain expert

No accountability for service perf., multiple

isolated actions

Customer Ops


Transforming focus from Network to Service performance (2/2)Operating ModelI. Service models II. Data Governance III. Technology & Analytics

Service model management

Naming lookup Network relationships

Network-service relationships

Geo references

Inventory engine

PM system

Element managers

FM system

Inventory

Monitoring of SM effectiveness

Service model enhancement and tuning

Dashboard Sqm / cem Data navigation

DataLayer

RDBMS BIG DATA

100+ 5 to 60 min

Data sources

‘TOP LEVEL SERVICES’• xDSL• IPTV (broadcast and VoD)• IP-VPN / eLine / Leased Lines• 2G – 3G voice and MBB• LTE• SMS-MMS• MVNO Voice, MBB, SMS-MMS• Roaming

Continuous management and improvement of service models

Multi speed architecture with two layered data staging for RDBMS and BIG DATA


Next Generation Operations—Transformation levers adopted

Transforming and upskilling the work force from circuits to software, to great collaboration and innovation, not ‘just’ maintenanceTalent Management

1

2

3

Organization, processes and management tools

Network Academy

Insourcing resources on Core Platforms/Services

S & HD

CC CC

S S S

HD HD HD

CC CC CC

AS IS► Optimization of internal organization and

processes with an integrated and multi skill approach generating efficiency equivalent to ~100 HC

Training on the job

Academy

Re-allocation

Skill Assessment

Network Academy

Core NoCoreAS IS TO BE

NoCoreCore ► Insourcing of strategic and Core activities and identification of a unique partner for the operations on No Core (~200 HC to re-allocate)

► Training of resources on new platforms, processes and tools: ~300 internal headcount involved

SurveillanceS HD Help Desk CC Competence Center Third parties / Vendor headcount Internal headcount

accenture at oracle openworld · accenture at oracle openworld october 25—29, ... telco case...

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