Product and Service Bundling and how to Monetize Data Lessons Learnt from the Telco Industry Gerhard Greiner, Infonova GmbH Graz, Oct. 18 th 2016 1
ABOUT INFONOVA Unterpremstätten/Graz HQ in Graz, Offices Graz & Vienna, >400 employees Subsidiary of BearingPoint (European Business & Technology Consulting firm) Long established Comms & Media client relationships Austrian Leading Companies Award Top 10 to Watch Company" 2015 Vienna, Lassallestraße INFONOVA R6 Product Management Development Center Integration, Innovation, Testing Centre ADVISORY & SOLUTION ENGINEERING Digital Strategy & Digital Transformation Enterprise Architecture & Solution Design Solution Delivery & Operations OPERATIONS AND SUPPORT SERVICES 24x7 global Operations and Maintenance Support Centre Certified Database, Storage and Server, Network services Network and Security, IT and Servicedesk experts 2
http://www.visualcapitalist.com/chart-largest-companies-market-cap-15-years/
Platform is the winning business model in the digital economy Digital Ecosystem Management (DEM) is the new enterprise discipline 40% of the world s top 30 brands are digital ecosystem managers, + 70% of the $1bn+ Unicorns; $4 trillion total market value today 6
DIGITAL ECOSYSTEM MANAGEMENT Key roles involved in a digital ecosystem SERVICE SELLER Combines services from the platform into cross-industry bundles, sells them to its target market segments and manages the customers Provides the platform for connecting service producers with service consumers and participates in the revenues generated on the platform PLATFORM PROVIDER SERVICE PROVIDER Connects services to the ecosystem, makes them available for resale and gets compensated for the consumption of the services 7
Cyber Physical Systems and Digital Moments GmbH 8
Physical World Cyber World 9
Physical World Cyber World Digital Moment 11
TENANT INFONOVA R6 MULTI-TENANCY Retail Product Catalogue Customer Information Management Order Capture Billing Data Mediation Receivables Management Wholesale Product Catalogue Case Management Order Management Convergent Charging & Rating Dispute & Adjustment Management Service Catalogue Product & Service Inventory Service and Resource Fulfilment Bill Calculation/ Invoicing/ Formatting Collection Management 12
TENANT INFONOVA R6 - DIGITAL BUSINESS ENABLEMENT CAPABILITIES Each tenant can sell retail offers to end customers Retail offers can be based on the tenant s own services or wholesale offers from other tenants Each tenant can sell wholesale offers to other tenants Wholesale offers can be based on the tenant s own services or wholesale offers from other tenants PRODUCTS CUSTOMERS ORDERS BILLING FINANCE Each tenant can directly onboard and manage its own internal services Each tenant can purchase external services from other tenants 13
SERVICE SELLER FUNCTIONALITY FOR SERVICE SELLERS GmbH 14
SUMMARY OF KEY FUNCTIONALITY provided by Infonova R6 for Service Sellers SERVICE SELLER PRODUCTS CUSTOMERS ORDERS BILLING FINANCE Benefit from the pre-integrated end-2-end functionality for an effective management of a multi-service business Configure and define new propositions from the services available in the digital ecosystem Focus on the business rather then technology by reusing the infrastructure and integration provided by the platform 15
FUNCTIONAL OVERVIEW for Service Sellers SERVICE SELLER PRODUCTS CUSTOMERS ORDERS BILLING FINANCE Create multi-service bundles from different service providers and define the consumption and monetization model OFFER & SERVICE FEATURES USAGE CHARGES PROMOTIONS RULES OTHER RECURRING INSTALMENT ONCE ONLY CONTRACTS EVENT BASED TIME BASED DISCOUNTS OVERRIDES DOWNGRADE RISK GRADE LOYALTY POINTS LIMIT DEPOSITS ALLOWANCES MINIMUM CONSUMPTION VOLUME BASED CREDITS CUSTOMER TYPE TOPUPS 16
FUNCTIONAL OVERVIEW for Service Sellers SERVICE SELLER PRODUCTS CUSTOMERS ORDERS BILLING FINANCE Charge for the consumption of the services and bill your customers MEDIATION RATING BILL CALCULATION BILL FORMATTING MONTHLY RECURRING CHARGE ONCE-ONLY CHARGES DISCOUNTS 19
PLATFORM PROVIDER FUNCTIONALITY FOR THE PLATFORM PROVIDER GmbH 21
TENANT TENANT TENANT FUNCTIONAL OVERVIEW for the Platform Provider PLATFORM PROVIDER PRODUCTS CUSTOMERS ORDERS BILLING FINANCE Operate the platform infrastructure and provide tenants for service providers and service sellers CUSTOMERS CUSTOMERS PRODUCTS CUSTOMERS ORDERS BILLING FINANCE 22
FUNCTIONAL OVERVIEW for the Platform Provider PRODUCTS CUSTOMERS ORDERS BILLING FINANCE PLATFORM PROVIDER Participate in the revenues generated on the platform Revenue shares from service sellers and service providers Charges for platform services and infrastructure Service fees for operations and support 23
SERVICE PROVIDER FUNCTIONALITY FOR SERVICE PROVIDERS GmbH 24
FUNCTIONAL OVERVIEW for Service Providers SERVICE PROVIDER PRODUCTS CUSTOMERS ORDERS BILLING FINANCE Onboarding a new service into the DEM platform 1. Configure the service specification in the service catalogue 2. Integrate the service activation interfaces for automated fulfilment Service Activation API Service Consumption 3. Integrate usage feed in order to charge for the consumption of the service SERVICE PLATFORM Feature Feature Feature 25
FUNCTIONAL OVERVIEW for Service Providers SERVICE PROVIDER PRODUCTS CUSTOMERS ORDERS BILLING FINANCE SERVICE SELLER SERVICE SELLER SERVICE SELLER Define the consumption and monetization model of the service and make it available to the service sellers of the platform NON-USAGE CHARGES RECURRING INSTALMENT ONCE ONLY CONTRACTS EVENT BASED USAGE CHARGES TIME BASED LIMIT DEPOSITS ALLOWANCES MINIMUM CONSUMPTION VOLUME BASED 26
Reference BT Global Services GmbH 27
BT Global Services is a cutting-edge example of DEM in practice (1/2) Multiple sub-ecosystems co-exist on BT s platform, enabling new forms of innovation Car manufacturer Auto IoT Banks Media Govt Biz Services City Agri Home Work Health Utility Since we adopted BearingPoint s ecosystem approach and solution last year we ve seen hockeystick growth in our business winning more and bigger deals (BT March 2016) 28
BT Global Services is a leading example of DEM in practice (2/2) Powerful multi-party, multi-service orchestration and monetization capabilities enable commercial managers in traditional companies to unleash their creativity Tenant ONLINE RETAIL CALL CENTRE New monetisation methods PRODUCTS CUSTOMER ORDERS BILLING FINANCE BT s CMS is a new type of platform, enabled by R6 and created in partnership with BE Secure, global, scalable; B2B and B2B2x focus; any type of service, app, content or data stream; any offer model; any consumption model; any monetization model; Tenant interoperability 29
Infonova R6 Value Proposition Stratecast Frost & Sullivan has listed Infonova R6 on Top 10 Companies to Watch 2015 for Operations & Monetization. The marketplace is now ripe for large telecom operators to become business enablers and deliverers on the promises of virtual service offerings. Stratecast firmly believes that Infonova is one of a very small number of business enablement suppliers that can deliver on the significant number of new business requirements that both virtual networking and virtual services demand. Link to Stratecast Analysis Karl Whitelock, Director Global OSS BSS Strategy, Stratecast Frost & Sullivan, 2015 [Infonova] brings to the marketplace something that we call a Business Enablement Platform, which is the ability to take the digital insight and capabilities from various industries and bring them together into a common virtual service that can then be delivered to customers [ ]. [They] do it in a manner that creates something that just really didn t exist before Link to K. Whitelock Interview 30
Service Aggregator Service Provider & Service Aggregator Service Provider 35
ROADMAP GmbH 36
ROADMAP THEMES 2016 2017 2018 PRODUCTS CUSTOMERS ORDERS BILLING FINANCE Enhance Best-of-Suite Digital Business Enablement Capabilities Improve the business architecture for B2C, B2B and B2B2X business models Extend the concept-to-cash functionality Expand the ecosystem management capabilities Provide Superior Usability Make the application more efficient to use Make the user interface attractive to look at and fun to work with Extend the available functionality of the UI Optimise Powerful Integration Framework Extend the APIs and reduce system integration efforts Strengthen the robustness and operability of the platform Increase the scalability for large scale global deployments 37
ROADMAP THEMES Key Focus Areas 2016 2017 2018 PRODUCTS CUSTOMERS ORDERS BILLING FINANCE Enhance Best-of-Suite Digital Business Enablement Capabilities Monetization of the ecosystem Provide Superior Usability Platform and tenant operations Optimise Powerful Integration Framework APIs and process orchestration 38
FIXED SERVICE MOBILE SERVICE BUSINESS xvno CONSUMER BUSINESS UK BUSINESS IE ROADMAP - Outlook Version 8 Q1 2017 2016 2017 2018 PRODUCTS CUSTOMERS ORDERS BILLING FINANCE Allow to connect multiple R6 instances Develop, operate and scale independent from each other Collaborate across independent Infonova R6 deployments Meet regulatory requirements for data separation SMB ENTERPRISE GOVERNMENT ONLINE RETAIL CALL CENTER 39