increasing market share by addressing customer experience metrics
DESCRIPTION
As confidence builds in telecom suppliers’ ability to manage network operations, service providers are increasingly enlisting them to expand managed services to improve their subscribers’ customer experience. This new opportunity, which can enable participants to increase their share of the more than $20 billion managed services market, will be led by suppliers able to translate their solutions into key business objectives that address customer experience. For managed services suppliers, this means moving beyond key performance indicators that address network quality and applying new and existing tools that address key quality indicators across both the telecom and IT infrastructures of the service providers.TRANSCRIPT
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TECHNOLOGY BUSINESS RESEARCH, INC.
TBR Webinar Managed ServicesIncreasing Market Share by Addressing Customer Experience MetricsApril 11, 2012
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1. Few new networks
2. Retention and margin are the key objectives
3. Managed Services are critical to success
4. Experience metrics are the new levers of value
Increasing Market Share by Addressing Customer Experience Metrics
The Last Build
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Increasing Market Share by Addressing Customer Experience Metrics
• 4 billion mobile phones in use• 3 billion are active SMS users• 1.2 billion active mobile-broadband subscriptions worldwide
• Saturated developed markets
• China already more than 40% penetration
• Churn focus of competition
1. Few new networks
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• Industry spend of more than $300 billion capex in 2012
• Big bets on data services and cloud
• OTT competition• Cable vs. Telco for video • Margin pressure driving
opex reduction
Increasing Market Share by Addressing Customer Experience Metrics
2. Retention and margin are the key objectives
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• An inflection point will be reached in 2012, when managed services spend will become the largest segment of TIS.
• Complexity and efficiency drive service providers to outsource and out-task.
• Industry growth at 9% CAGR 2010-2014
Increasing Market Share by Addressing Customer Experience Metrics
3. Managed Services are critical to success
$14.0 $14.7 $15.6 $16.2 $16.5 $16.0 $16.3 $16.8 $17.5 $18.0 $18.2 $18.0
$22.0 $23.0 $24.4 $25.5 $26.3 $26.7 $20.7 $22.8 $24.6 $26.0 $27.0 $27.5
$0
$20
$40
$60
$80
$100
2010 2011 2012 2013 2014 2015
TIS Addressable Market Segments (BUSD)
Deployment Services Maintenance ServicesProfessional Services Managed Services
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SOURCE: COMPANY DATA AND TBR ESTIMATES
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Increasing Market Share by Addressing Customer Experience Metrics
4. Experience metrics are the new levers of valueA. The Managed Services Landscape – What is the market?
Consulting, Design,
Planning
BUILDIntegrate and
Implement
OPERATEField/Remote Provision &
Support
MANAGECapacity, Upgrade, Optimize
Services: Value Added Services, Content Services, Multimedia, App Store, Portals, Cloud Services, Payment, Customer Experience (Subscriber QOE Management)
Business Support Systems: Billing, Customer Care, Service Assurance and Service Fulfillment, Service Management
Network: Equipment and OSS for Customer Premise Equipment, Outside Plant, Access (Mobile & Fixed), Transmission, Circuit and Packet Core
Shared Network: New and consolidated sites, backhaul and RAN
Full Outsourcing
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Increasing Market Share by Addressing Customer Experience Metrics
4. Experience metrics are the new levers of value
SO – Selective Outsourcing FO – Full Outsourcing MNO – Managed Network Operations MI – Managed InfrastructureBOM – Build, Operate & Manage
SO – Selective Outsourcing FO – Full Outsourcing MNO – Managed Network Operations MI – Managed InfrastructureBOM – Build, Operate & Manage
B. The Managed Services Landscape – Where is the market
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Increasing Market Share by Addressing Customer Experience Metrics
4. Experience metrics are the new levers of value C. Managed Services is evolving to provide higher value via KQI and KBO
• Business model choices: o Continue to address
network operations efficiency based on Key Performance Indicators (KPIs)
o Extend capabilities to address the operator’s customer experience through Key Quality Indicators (KQIs) and Key Business Objectives (KBOs)Low INNOVATION High
Commodity Value Add(KPI-driven) (KQI-KBO-driven)
High
SCALE
Low
FullOutsourcing
Managed Infrastructure
Network OperationsOutsourcing
SelectiveOutsourcing
Build, OperateManage
Managed Services Business Models based on Scale and Innovation
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Increasing Market Share by Addressing Customer Experience Metrics
4. Experience metrics are the new levers of value D. What are the capabilities?
Evolving metrics require integrated network and service toolsKey Performance Indicator Examples Key Quality Indicator Examples
• Availability and downtime
• Blocked traffic• Facility outage
duration• Transmission failure
rate• Data transmission
speeds
• User-level service availability (downtime)• Network availability (downtime)• Channel change (zap) time• Access device successful power on to default channel• Rate of disturbance (ROD) impact on customers• Rate of disturbance duration• Digital Rights Management (DRM) security breach• Service/content response time• Crashes• Freezing and non-responsive signal• User interface failures• Service operations failures
New kinds of SLAs
Service quality targets based on end-user experience
Availability of end-to-end data analysis
Proactive problem identification and problem resolution based on the end- user experience
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• The largest suppliers are taking different strategies to grow revenue.• Ericsson and Huawei are
remaining competitive across the board.• ALU and NSN are becoming
more selective and promoting customer experience as a core strategy.
Increasing Market Share by Addressing Customer Experience Metrics
4. Experience metrics are the new levers of value E. How are the suppliers stacking up?
IBM
Alcatel-Lucent
NSN Ericsson
HP
Accenture
Amdocs
Huawei
SAP
CSG Systems
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
$- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20
Year
-to-
Year
Rev
enue
Gro
wth
TIS Managed Services Revenue
Ten Largest TIS Suppliers 4Q11 Managed Services Revenue (Billions USD)
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SOURCE: TBR AND COMP ANY DATA
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1. Few new networks
2. Retention and margin are the key objectives
3. Managed Services are critical to success
4. Experience metrics are the new levers of value
Increasing Market Share by Addressing Customer Experience Metrics
Summary: New business models and new measures for managed services
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Questions
Questions?
Michael Sullivan TrainorExecutive Analyst, Networking and Mobility PracticeTechnology Business Research, Inc. (TBR)
Email: [email protected]
Youtube: http://www.youtube.com/user/TBRIChannel?feature=mhee
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Increasing Market Share by Addressing Customer Experience Metrics
TBR’s comprehensive view of the TIS market offers historical and future insight so suppliers can make more informed decisions
The Expanded TIS Quarterly Benchmark is the most in-depth, all-inclusive TIS coverage TBR offers.
The TIS Quarterly Benchmark is at the core of TBR’s TIS coverage.
TBR also provides custom TIS work to meet specific client needs.
Current and Historical View of TIS Market The Future of the TIS Market
TIS Quarterly Benchmarks TIS Addressable Market Forecast (AMF)The Global AMF provides a global view of where the TIS market is headed over the next five years. The North America
AMF provides a deep dive on where the region is headed over the next five years.
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Increasing Market Share by Addressing Customer Experience Metrics
Accenture Telecom Services
Agilent Telecom Services
Alcatel-Lucent Services
Amdocs Telecom Services
Capgemini Telecom Services
Ciena Telecom Services
Cisco Telecom Services
Convergys Telecom Services
CSG Systems Telecom Services
Nokia Siemens Networks Services
Oracle Telecom Services
Samsung Telecom Services
SAP Telecom Services
Tech Mahindra
Telcordia Telecom Services
Wipro Telecom Services
ZTE Telecom Services
Ericsson Global Services
Fujitsu Telecom Services
HP Telecom Services
Huawei Global Technical Services
IBM Global Telecom Services
Juniper Telecom Services
Logica Telecom Services
Microsoft Telecom Services
NEC Telecom Services
Supplier Coverage in the Telecom Infrastructure Services Quarterly Benchmark
Michael Sullivan Trainor at [email protected] or James McIlroy at [email protected]
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TECHNOLOGY BUSINESS RESEARCH, INC.
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