Preparing your BSS systems for the enterprise market opportunity: trends and challenges

Transcription

1 Webinar Preparing your BSS systems for the enterprise market opportunity: trends and challenges Webinar Preparing your BSS systems for the enterprise market opportunity: trends and challenges 30 January 2013 Larry Goldman, Analysys Mason Johan Norvik, Microsoft Marc Hayden, CHR Solutions Analysys Mason Limited 2013

2 Webinar Preparing your BSS systems for the enterprise market opportunity: trends and challenges Webinar Preparing your BSS systems for the enterprise market opportunity: trends and challenges Larry Goldman Partner, Head of Telecoms Software Research Analysys Mason Limited 2013

3 Number of businesses (logarithmic scale) Webinar Preparing your BSS systems for the enterprise market opportunity: trends and challenges 3 SMEs are by far the biggest opportunity for business services SMEs are micro (0-9 employees), small (10-49 employees) and medium ( employees) sized enterprises. Over 90% businesses in every country are SMEs and they employ between 40-55% of the working population. Micro, small and medium-sized enterprises will account for 27%, 32% and 41% of total worldwide SME ICT service revenue in Figure 2: Number of businesses by size, USA, 2008 [Source: United States Census Bureau, Analysys Mason, 2012] Figure 1: Businesses by size, USA, 2008 [Source: United States Census Bureau, Analysys Mason, 2012] Large 0.3% SME 20.6% Total: 5.8 million 10 Micro 79.1% 1 Micro Small Medium Large Analysys Mason Limited 2013

4 Revenue (USD billion) Growth rate (year-on-year) Webinar Preparing your BSS systems for the enterprise market opportunity: trends and challenges 4 ICT service revenue is a good CSP growth opportunity SME ICT service revenue is forecast to grow at three times the rate of the number of SMEs by Overall SME ICT service revenue will be USD203 billion in 2012 growing to USD226 billion by By 2017, cloud services will account for 3.89% of total SME ICT service revenue worldwide, up from 1.66% in Figure 4: SME ICT service revenue by size of SME, and growth rates for SME numbers and ICT service revenue, worldwide, [Source: Analysys Mason, 2012] % 4% This growth in revenue from cloud services will replace some of the revenue loss from fixed voice and fixed broadband service. Figure 3: SME ICT service revenue by service segment, worldwide, 2017 [Source: Analysys Mason, 2012] Fixed broadband, 16.97% Video services, 2.09% Fixed voice, 18% Mobile voice and data, 59% Cloud services, 3.89% Medium ( employees) Small (10 49 employees) Micro (0 9 employees) Number of SMEs (growth rate) SME ICT revenue (growth rate) 3% 2% 1% 0% Analysys Mason Limited 2013

5 Webinar Preparing your BSS systems for the enterprise market opportunity: trends and challenges 5 SMEs faces ICT challenges that create opportunities for CSPs The ICT related business challenges faced by SMEs are similar to what large enterprises face. However, unlike large enterprises, SMEs have limited resources and therefore are expected to rely heavily on automated and pre-integrated solutions. Figure 5: SME business challenges and buying behaviour [Source: Analysys Mason, 2012] They key challenges center around : Grow and change: necessitating new ways of working because of changes in the size, structure and location of the SME. Simplify: replacing complex, inefficient, legacy systems to save SMEs money and time in the long term. Protect: minimising the inherent risk in SMEs' businesses by protecting against various physical and digital threats. SMEs are unlikely to adopt technologies that: Have a large upfront cost Have long inflexible contracts Are sufficiently complex as to require dedicated IT staff Are unproven Analysys Mason Limited 2013

6 Webinar Preparing your BSS systems for the enterprise market opportunity: trends and challenges 6 CSPs need integrated billing and customer care to economically support SME services The billing and CRM needs of SMEs can be very complex. However since the scale of operations are small, SMEs mostly cannot afford the high cost of customised operations support. Figure 6: Order flow for SMEs [Source: Analysys Mason, 2013] SME What SMEs need is a set of standardised procedures that are backed by substantial automation so that operational efficiency remains high and the cost low. CSPs need to find an economic means of using massdesigned operations to support SMEs. This will require them to invest in advanced automation and self service to manage sales and support. To attract SMEs, CSPs should offer out of the box solutions for services such as web hosting, server hosting, product catalogue and department level billing on a zero capex pay as you go model. Billing Charging Interconnect Mediation CRM Subscriber management Customer Care Self Service Customer order orchestration Service Fulfilment Partner CSPs, third-party vendors Business Only Voice Data Video VPN PL IaaS SaaS IT M2M Analysys Mason Limited 2013

7 Converged Emerging mobile Developed mobile Others Tier 3 and 4 USD Million Percentage of spending Webinar Preparing your BSS systems for the enterprise market opportunity: trends and challenges 7 CSPs are increasing their spending on enterprise-focused OSS/BSS systems mostly to better support SMEs More than 20% of IT spending by all CSP types is on revenue management. Figure 8: CSPs IT spending by CSP type and application, worldwide, 2011 [Source: Analysys Mason, 2012] Customer care software for business services is expected to have a CAGR of 9.1% from 2011 through Business services account for a third of Tier-1 CSPs revenues. For instance SMEs accounted for 37% of Verizon s revenue and 51% for BT. Figure 7: CAGRs for Revenue Management and Customer Care commercial software business services revenue, worldwide, [Source: Analysys Mason, 2012] 1,200 1, % 10% 5% 0% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Generic apps and systems Service assurance Service fulfilment Customer care NMSs SDPs and apps Revenue management Customer Care CC growth rate Revenue Management RM growth rate Analysys Mason Limited 2013

8 Webinar Preparing your BSS systems for the enterprise market opportunity: trends and challenges 8 CSPs have new BSS deployment options with SaaS and cloud-based delivery Cloud based deployment is the more attractive choice due to low cost and ease of maintenance and upgrades. BSS/OSS functions offered as software as a service is a small but growing fraction of the market. More vendors, including CHR Solutions, are offering cloud-based BSS solutions, making cloud deployment a more attractive option for CSPs targeting the SME segment. Cloud services will become increasingly important for CSPs and vendors over the next 5 years. Table 1: Comparison between on-premise and cloud based deployment options [Source: Analysys Mason, 2013] Criteria On Premise Cloud based Capex High Low Opex Medium Low Security Expensive Cheaper than on premise Customization Easy Difficult Upgrades Expensive Relatively cheap Dynamic scalability Difficult Cloud makes this easier Redundancy Expensive Cheap Analysys Mason Limited 2013

9 Microsoft s Telecommunications Industry Strategy Johan K. Norvik Industry Solutions Manager

10 Industry Megatrends Mega Trends Paradigm for the Next Decade Agility More Connected More Content More Places Scalability Business Models Partners More Personalization More Devices/M2M Standards, Policy and Regulation

11 Microsoft Empowers the Path to New Possibilities Industry Trends Market Intelligence Microsoft R&D Best Partner Focus Best Cloud Ecosystem Best of Microsoft Standards Collaborat n Platform Innovation Marketing Partnerships

12 Best Partner Focus: Telco Best of Breed Multi-cloud Telco Envinronments Service Delivery, Creation, and Monetization Operational Optimization and Customer Experience Value Chain Shifts Consolidation & New Competitors Improve Multichannel Sales & Support

13 Mashable Ecosystem Recognition Best Ecosystem Recognizing partnerships, ecosystems, and programs that drive innovation Source: Analysys Mason, Telecoms software: worldwide market shares 2011, September

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15 Omnia360 CRM for the Enterprise Services Provider Marc D. Hayden EVP, Sales & Marketing CHR Solutions. All Rights Reserved.

16 Enterprise Buying Behaviors Medium-sized Enterprises Large Enterprises CHR Solutions. All Rights Reserved. 16

17 Challenges for Existing Billing and CRM Systems» Lack of support for multiple levels of hierarchies» Complex order creation and management» Static product catalogue» Disparate systems for customer care, sales, marketing and IT Medium-sized Enterprises Large Enterprises» Enterprise pricing and bundling requirements CHR Solutions. All Rights Reserved. 17

18 Unique Opportunity Enterprise customers are the highest value customers Challenges with the existing billing and CRM systems Lack of support for multiple levels of hierarchies Enterprise pricing and bundling requirements Complex order creation and management Static product catalogue Disparate systems for customer care, sales, marketing and IT CHR Solutions. All Rights Reserved. 18

19 Dynamic Pre-integrated Product Catalogue CSPs are consolidating systems and data, implementing common data models, and setting the stage for seamless, automated endto-end product definition and delivery. Reduced time-to-market Process automation and integration Reuse Customer self-service Data alignment Cost reduction CHR Solutions. All Rights Reserved. 19

20 Marketing Automation for Telcos True 360 Visibility Improved Consistency Greater Marketing Efficiency Improved Measurability End-to-end Integrated Shorten Move visibility marketing campaign cycles marketing ROI into leads, offers, across the by automating from unknown interactions, organization the planning to known by clearly responses and drives cycles and measuring response marketing consistent lessening reliance rates, conversions programs messaging on IT and key metrics and brand CHR Solutions. All Rights Reserved. 20

21 Sales Solution Sales Capabilities Full feature set Sales Workflow Designed for Users Managers Executives CHR Solutions. All Rights Reserved. 21

22 Fast, Productive Sales Management Familiar interface drives user adoption and increased productivity Workflow-driven sales processes ensure consistency and efficiency Full spectrum of sales intelligence capabilities provides insight and accurate forecasts CHR Solutions. All Rights Reserved. 22

23 Sales Automation for Telcos True 360 Visibility Higher Productivity Greater Sales Efficiency Improved Close Rates Improve decisionmaking with 360 visibility into accounts, leads, opportunities and cases across the Spend more time for selling with better collaboration and consistency across the sale organization Shorten sales cycles via enforceable workflows and more accurate customer data Increase revenue by optimizing sales resources and processes via repeatable best practices organization CHR Solutions. All Rights Reserved. 23

24 Omnia360 CRM for the Enterprise Services Provider CHR Solutions. All Rights Reserved. 24

25 On-Premise or On-Demand Traditional IT Pure-Play SaaS On-Premise Billing & CRM Control and ownership Strategic capabilities Customization, compliance On-Demand Billing & CRM Infrastructure TCO External dependencies Time to market CHR Solutions. All Rights Reserved. 25

26 Webinar Preparing your BSS systems for the enterprise market opportunity: trends and challenges 26 Q&A and contact details Please submit your questions for the presenters using the Questions and Chat facilities. Phone: Web: Analysys Mason Limited 2013