Mr Thomas C. Antunes Convergys Corp. Industry Solutions, Global Vice President United States

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1 International Telecommunication Union Mr Thomas C. Antunes Convergys Corp. Industry Solutions, Global Vice President United States Thomas Antunes is Global Vice President of Industry Solutions at Convergys Corporation and is located in Cincinnati, OH. He is responsible for developing consultative industry vertical expertise in all Convergys markets and will plan the creation of integrated customer care & billing solutions to meet the BSS/OSS needs of next generation service providers. Prior to his current position, Mr. Antunes served as Area Vice President for Lucent Technologies Enterprise Networks Group. Previously, Mr. Antunes spent 16 years with AT&T where he held positions in the customer service, network engineering, marketing and sales fields. By function, he had a broad array of experiences including new product launches, sales program design and contact center management. Mr. Antunes earned his master's degree in business administration from Fairleigh Dickinson University in East Rutherford, New Jersey, and earned his bachelor's of science at Rider University in Lawrenceville, New Jersey. Mr. Antunes has authored Convergys white papers on Converged Networks (August 2001) and Next Generation Wireless Networks (October 2001) and also been published in the Internet Industry Magazine (Fall 2001), Destination CRM TM (November 2002). His recent Key Speaking Engagements include: CTIA 2003 Panelist: Wireless Distribution Strategies and MVNO Telestrategies Billing World 2003 Speaker: Convergent Billing CTIA 2002 Panelist: Customer Service Telestrategies Billing World 2002 Speaker: Content, Commerce & Communications IIR s 3rd Annual WAP Content Congress: Identifying the Key Challenges associated with Billing for WAP over GPRS. London, UK July 2001 IIR s ISP Business Models. Chair Moderator. Cannes, FR. February Frost & Sullivan s 4th Annual Next Generation Internet Conference. Speaker: The Convergence of Wireless Voice & Data Markets. San Diego, CA. February 2001 AN

2 Convergys ITU Telecom 2003 Showcase Presentation Abstract Convergys Enabling Convergent Broadband Services Tom Antunes Global Vice President, Industry Solutions "This multi-media presentation will explore how Convergys - the global leader in integrated billing, employee care and customer care services - enables global communications operator to profitably manage broadband, convergent services through its award-winning BSS products and its integrated employee and customer care solutions. Convergys will demonstrate how its production-proven, Infinys BSS solution drives operator profitability in the mobile, fixed, and cable/broadband sectors by lowering operator costs and risks while maximizing revenue per subscriber.

3 Growing Your Business With Convergent Service Bundles Thomas C. Antunes Vice President, Industry Solutions Christoph Wilfert Vice President, Wireless & Wireline Programmes ITU Telecom 2003 October 13, 2003

4 Agenda Introduction to Convergys Convergent Market Drivers Convergent Business Support Systems Product Customer Fulfillment Revenue Critical Success Factors Closing Remarks and Questions

5 Changes in the Larger Market ENVIRONMENTAL FACTORS Worldwide economic downturn Economic pressure from 3G business case fallout & spectrum auction costs COMPETITION Economic survival of all carriers is threatened New entrants from other segments are competing for the subscribers walletshare MARKET DYNAMICS Convergence of voice, data, video Broadband delivery capability in all market verticals Global reduction in operator CAPEX and OPEX budgets Operators are consolidating in all markets Business processes began independently and remain distinct between verticals Content (value added services) making up an increasing portion of revenue stream Large markets for software, professional services and outsourcing

6 BSS Roadblocks Genesis Multiple Products Multiple BSS Voice Product Mgmt Order Mgmt Provision Mediation Rating + Billing Carrier Data Product Mgmt Order Mgmt Provision Mediation Rating + Billing Broadcast Product Mgmt Order Mgmt Provision Mediation Rating + Billing Single Legacy BSS Multiple BSS Yesterday Today

7 Consumer Market The Evolution of Convergence Convergence Yesterday Voice + Data Example: Voice Roaming & SMS from one wireless carrier Convergence Today Multiple Services + Media Example: One Operator provides, local, long distance, wireless, DSL and ISP services Worldwide Trend

8 Enterprise Market The Evolution of Convergence The Enterprise Demands Scalability Supporting complex hierarchies With self-care and EBPP Flexible tariffing Enhanced care in return for loyalty Examples:

9 Industry Perspective Example of a Converged Services User Fortune 200 Network User bills / month 50+ locations worldwide 32,000+ workstations 48,000+ lines 1.5 billion minutes annual voice traffic days to get service (USA) Up to 2 years to resolve billing disputes Our CTO Wants More reliable information on price and availability of products Consistent information across all interaction points with operator Improve service provisioning lead times Improve billing accuracy & proactive bill reconciliation Consolidate number of bills More hierarchical statementing

10 Four Pillars of Convergent BSS Revenue Assurance Accelerate Roll-Out Service Definition Product Catalog Synchronization Bundled Offerings Product Customer Customer Service Self-Care Partner Convergent Mediation Carrier-Grade Rating and Billing Partner Settlement Revenue Fulfillment Order Inventory Service Activation Streamline Workflow Service Fulfillment

11 Product Service Definition Product Catalog Synchronization Bundled Offerings Product Customer Revenue Fulfillment

12 Issue : Old World Approach Point-to-Point Product Definition Frame Relay Legacy Ordering DSL Legacy Ordering IP VPN Legacy Ordering Barriers to Success Manual linkage between functional components Slow time to market Limits bundling Discrete product line management Point-to-point functional links Inventory Provisioning Billing High Deployment & Maintenance Costs

13 Solution : New World Approach Rules Driven Product Definition Frame Relay Legacy Ordering Process DSL Legacy Ordering Logical Common Product Model IP VPN Legacy Ordering Solution Characteristics Common process for product definition Define downstream workflow Less costly error correction Promotes bundling Inventory Provisioning Billing Time to Market Advantage

14 Product Conclusions Challenges Convergent BSS Operator Benefits Lengthy Product Rollout Rules driven product definition Pre-configured service models Accelerated Service Deployment Broadband provider reduced service rollout cycle time by 35% Multiple Disparate BSS Catalog coexistence with data synchronization Logically centralized product definition Single View of Products Tier 1 operator improved product provisioning rate by 15% Inflexible Product Bundling Loyalty-Inspiring Bundles Define bundles - cross-product discounting Service-specific workflows with business rules Support Convergent Bundles Product bundles reduce customer churn by 25%

15 Customer Product Customer Customer Service Self-Care Partner Revenue Fulfillment

16 Issue : Old World Approach Customer Care Barriers to Success Multiple: systems, interfaces, CSRs, transfers Long calls and transfers between agents No common view of customer or their complaint history Dependent on CSR product knowledge High Subscriber Churn

17 Solution : New World Approach 24x7 Web-Based Self Care Solution Characteristics Digerati expect instant information Improve satisfaction & longevity, reduced churn Create a Commerce center not info booth Improve cross-sell Increase ability to test market new services quickly Improve upsell Improve CSR productivity Reduce costs Improve Lifetime Value of Subscriber

18 Customer Conclusions Challenges Convergent BSS Operator Benefits Multiple: Systems, Interfaces, CSRs, Transfers Consolidated front-end across enterprise solutions Convergent view of customer across products, segments & channels Reduced Cost of Care Decreased CSR training effort by 7 days High Care Costs: Long Calls And Transfers Between Agents 24 x 7 web-based self-care Subscriber self provisioning Improved Customer Loyalty Leading IXC moved 10,000 orders/month to self-care channel Inefficient Partner Partner relationship management Automated settlement for partners Increase Customer Walletshare GSM operator improved ARPU with new content business models

19 Fulfillment Product Customer Revenue Fulfillment Order Inventory Service Activation

20 Issue : Old World Approach Order Fallout SoHo Service Bundle Root causes Manual & paper-based processes to manage interface gaps POTS Legacy Ordering Business DSL Legacy Ordering IP VPN Legacy Ordering Lack of validation since product rules are spread across disparate back-office systems Duplicative data entry in multiple ordering systems Syntax and service order omissions due to entry edit errors Inventory Provisioning Billing Billing & Provisioning Out Of Synch

21 Solution : New World Approach Automated Order SoHo Service Bundle POTS Business DSL IP VPN Legacy Ordering Enterprise Wide Order Legacy Entry & Ordering Legacy Ordering Solution Characteristics Eliminate manual workarounds and duplicate entry systems Automated order validation managed by single front-end system Reduced data entry for bundles Order entry business edits Reduced training costs Inventory Provisioning Billing Reduced Quote-to- Cash Cycle

22 Fulfillment Conclusions Challenges Convergent BSS Operator Benefits High Order Fallout Poor Order Quality Service-specific workflows Enforced order validation Reduced Order Fallout Tier 1 operator improved provisioning time for on-net OCx services by 3.9 days Inefficiency Managing Network Assets Network auto-discovery reclaims unused network resources Centralized network inventory Automated Quote-to- Cash Process Tier 1 operator reclaimed $3.5M in stranded network assets Manually Intensive Provisioning Streamlined activations process Automation of manual processes Shortened Provisioning Lifecycle Tier 2 client increased workforce efficiency by 67% across ordering activity

23 Revenue Product Customer Convergent Mediation Carrier-Grade Rating and Billing Partner Settlement Revenue Fulfillment

24 Issue : Old World Approach Revenue Leakage $100 Potential Revenue $89 Actual Revenue Ordering Provisioning Network SW Changes Mediation Rating/ Billing Root causes Order fallout Lengthy provisioning cycle High operations costs Poor network usage translation Disparate sources of information Unbilled lines and/or features Customer fraud Orders 20%; Mediation 45%; Billing 25% Profit Margins Are Squeezed

25 Solution : New World Approach Integrated Revenue Assurance $100 Potential Revenue $100 Actual Revenue Ordering Provisioning Network SW Changes Mediation Rating/ Billing Solution Characteristics Order entry business edits Automated order validation Real time event management Automated workflow Convergent Billing & Rating Platform Cross product discounting Revenue Maximization

26 Revenue Conclusions Challenges Convergent BSS Operator Benefits High Revenue Fallout Real-time event management Flexible network independence Accelerated Service Deployment European operator implemented a convergent rating and discounting system Convergent Billing For Service Bundles Cross-product discounting Carrier-grade performance Maximized Revenue GSM operator reduced cost of Convergent Prepaid Services Managing Diverse Business Models and Partnerships Manage complex partnerships Automated settlement for wireless roaming & digital content Enhanced Revenue Capture Highly accurate settlement reduced dispute management costs

27 Critical Success Factors Create converged services bundles Product Automated business rules for product definition Define downstream workflow Empower subscribers via web self care Customer Offer consistent experience across all channels Customer-centric view across convergent bundles Automated order management Fulfillment Order qualification and validation Integrate order management across product lines Enterprise-wide approach to revenue assurance Revenue Real-time event management Integrated quote to cash process

28 What Concerns Operators Ranking Overall Wireless Cable Wireline 1. OPEX Reduction Converged Solutions OSS / BSS Consolidation Revenue Assurance Improved Performance CAPEX Reduction Launch / MGT IP Services Implement E-Commerce Broadband Service Mgt E-Commerce Settlement Converged Pre-Post Paid Other Marion Howard-Healy, Consultant, Qualitative Change, Sept

29 Infinys Convergent Service Benefits OPEX Reduction Eliminates redundant systems, associated staff and inefficient processes Improves Total Cost of Ownership (TCO) Converged Solutions Enables flexible bundled service offerings Accelerates introduction of new services Provides increased wallet share and lifetime value per subscriber BSS Consolidation Single convergent BSS for all services Consistent view of customer across all systems Reduced OPEX and CAPEX Revenue Assurance Shortens quote-to-cash cycles Automated flow-through provisioning streamlines workflow

30 Questions? Booth #5000

31 Thank You! Booth #5000