communications transformation & the oracle communications opportunity matt mcferrin, senior...
TRANSCRIPT
<Insert Picture Here>
Communications Transformation & The Oracle Communications OpportunityMatt McFerrin, Senior Industry DirectorOracle Communications
Communications PrimerQ: How many bell logos where there?Q: How many bell logos where there?
A: A: SixSix
History Of “Bell” Transformation
•1876, when Alexander Graham Bell transmits the first complete message - "Mr. Watson, come here, I want you!“
•July 30, 1878 to April 17, 1880, a series of Massachusetts corporations controlling Mr. Bell's patent rights are organized
•March 3, 1885, the American Telephone and Telegraph Co. (e.g. AT&T) is established as a subsidiary of American Bell Telephone
•On December 30, 1899, AT&T succeeds American Bell as the parent of the Bell System
History Of “Bell” Transformation
•The U.S. Department of Justice files an antitrust suit against AT&T on July 24, 1913.
•Later that year, AT&T Vice President Nathan Kingsbury agrees to provide long-distance connection of Bell System lines to independent phone companies
•The U.S. government runs the telephone system during the only time in American history from July 1, 1918 to June 30, 1919
•President Franklin D. Roosevelt signs the Communications Act on June 19, 1934. The law places interstate telephone business under the regulation of the newly formed Federal Communications Commission (FCC).
History Of “Bell” Transformation
•In 1956, AT&T opens for service TAT-1, the first trans-Atlantic telephone cable
•In 1962, AT&T placed the first commercial communications satellite, Telstar I, in orbit, offering an additional alternative especially suited to international communications.
•AT&T opens TPC-1 in 1964, the first submarine telephone cable across the Pacific. It went from Japan to Hawaii, where it connected to two cables linking Hawaii with the mainland.
•The FCC reaches its Carterfone decision on June 26, 1968
•Largest Corporate Identity Program in the United States of America. Consisted of redesign of 135,000 Bell System fleet vehicles; 22,000 buildings; 1,250,000 phone booths; With, 1,060,000 employees; 80,000,000 customers. It took five years to implement this program - from 1969-1972 - and without the aid of computers!
So, A Quick Quiz
A: It uses the two letters in the Verizon logo that graphically portray speed, A: It uses the two letters in the Verizon logo that graphically portray speed, while also echoing the genesis of the company name : veritas (Latin for while also echoing the genesis of the company name : veritas (Latin for certainty/reliability) and horizon (e.g. forward looking/visionary)certainty/reliability) and horizon (e.g. forward looking/visionary)
Q: What year were Q: What year were Call Waiting, Three-Way Calling, and Call Forwarding introduced?Call Waiting, Three-Way Calling, and Call Forwarding introduced?
Q: What was the Carterfone decision, made on June 26, 1968?Q: What was the Carterfone decision, made on June 26, 1968?
A: A: In 1971, by Illinois BellIn 1971, by Illinois Bell
Q: Why did Verizon select the ticker symbol (Vz)?Q: Why did Verizon select the ticker symbol (Vz)?
A: A: Carter Electronics of Dallas sought to interconnect its two-way radios with the Carter Electronics of Dallas sought to interconnect its two-way radios with the nationwide phone system. The FCC ruling struck down interstate tariffs that nationwide phone system. The FCC ruling struck down interstate tariffs that prohibit attachment or connection of non-Bell System communications equipment prohibit attachment or connection of non-Bell System communications equipment to the public network. And it opens the way for competition.to the public network. And it opens the way for competition.
Q: What is the significance of the date January 1, 1984?Q: What is the significance of the date January 1, 1984?
A: Date A: Date AT&T agreed that it would divest itself of the 22 Bell Operating telephone AT&T agreed that it would divest itself of the 22 Bell Operating telephone companies. As a result of divestiture, the seven RBOCs - Ameritech, Bell Atlantic, companies. As a result of divestiture, the seven RBOCs - Ameritech, Bell Atlantic, BellSouth, NYNEX, Pacific Telesis Group, Southwestern Bell Corp. and US West - BellSouth, NYNEX, Pacific Telesis Group, Southwestern Bell Corp. and US West - become the parents of 22 local Bell companies. Cincinnati Bell and SNET, which become the parents of 22 local Bell companies. Cincinnati Bell and SNET, which were not wholly-owned subsidiaries of AT&T, carry on as distinct firms. were not wholly-owned subsidiaries of AT&T, carry on as distinct firms.
Putting It Together – Why We Are Here Today
Q: Who in here is focused on (yes I am talking Q: Who in here is focused on (yes I am talking compensation) the communications industry?compensation) the communications industry?
Q: Anybody work with/for one of the seven RBOCs - Q: Anybody work with/for one of the seven RBOCs - Ameritech, Bell Atlantic, BellSouth, NYNEX, Pacific Ameritech, Bell Atlantic, BellSouth, NYNEX, Pacific Telesis Group, Southwestern Bell Corp. or US West ?Telesis Group, Southwestern Bell Corp. or US West ?
Oracle Internal8
1-YEAR REVENUE GROWTH
Percent
REVENUE / EMPLOYEE
($)
Source: OneSource Data as of 04/20/2009
Quick look at Transformation Drivers1-Year Revenue Growth & Revenue / Employee
Oracle Internal9
Quick look at Transformation Drivers Net Profit Margin & Operating Profit Margin
NET PROFIT MARGIN
Percent
OPERATING PROFIT MARGIN
Percent
Source: OneSource Data as of 04/20/2009
Oracle Internal10
Regardless of their physical location, consumers' access to content and applications will affect all service sectors.
Image source: Flickr
Connect to Everything from Anywhere
11
Word of the Day : Transformation
Main entry : trans·for·ma·tion
Pronunciation: – \ˌtran(t)s-fər-ˈmā-shən, -for-\
1: an act, process, or instance of transforming or being transformed
2: false hair worn, especially by a woman, to replace or supplement natural hair
3: the operation of changing one configuration or expression into another in accordance with a mathematical rule ; especially : a change of variables or coordinates in which a function of new variables or coordinates is substituted for each original variable or coordinate
Q: Who in here has discussed “transformation” Q: Who in here has discussed “transformation” with a carrier in the past year?with a carrier in the past year?
*As defined by Merriam-Webster
12
Transformation FocusBy Operator Type
Fixed network operators - next-generation network transformation and organizational restructuring
Alternative fixed network operators - actively seek new customers and quickly launch new services via next gen OSS / BSS and channel focus
Mobile operators - need to transform to quickly launch new services, to deliver feature-rich content messaging services and provide advanced, real-time customer intelligence
Cable operators – Leverage applications and services offered over a converged network, esp in commercials space
Customer Strategy…Oracle Vision (example)
Vision Tactics
Consolidated Supply Chain
Wireless Self-Service
Demand Planning
Unified Customer Data
Consolidated SFA
Intelligence Everywhere
Provisioning POC
Transportation Mgmt
• Real-time Provisioning
• Integrated Service Delivery
• Optimized B2B Sales
• Customer Foundation
• Enhanced Fleet Operations
• SOA Transformation
• Enhanced retail channel
• Optimize network operations Retail inventory Mgmt
Network Capacity Planning
Order & Svc Mgmt
Retail & Network Evolution
Service DeliveryTransformation
Improve Customer Experience
OperationalEfficiency Business Process Mgmt
Customer Strategy…Oracle Vision (example)
Loyalty program
Demand Planning
Procurement Automation
Service Delivery Platform
Grid infrastructure
• Retail Transformation
• Demand Driven Supply Chain
• Total Customer Management
• Talent Management
• Enterprise performance management
• Content Value Chain
Improving The Customer Experience
Strengthening Our Brand
Enhancing Profitability
Retail Site Mgmt
Campaign Management
Next Best Treatment
Transportation Mgmt
Risk and Compliance
Atlas Replacement
Profitability analytics
Product Life Cycle Mgmt
PSFT HR upgrade
Customer modeling
TacticsVision
Enabling the Shift to Platforms and Software
Services
Transport, Switching & Access Networks
Services
Legacy ApproachVertical Networks (single service)
Platform ApproachHorizontal Network (multi-services)
Oracle Communications Footprint (2004)
ISV PartnersISV PartnersOracleOracleOracleOracle
Supply ChainSupply Chain ProcurementProcurement
Investing In Market Leaders
Oracle Communications Footprint (2008)
ISV PartnersISV PartnersOracleOracleOracleOracle
Supply ChainSupply Chain ProcurementProcurement LogisticsLogisticsDemand PlanningDemand Planning
Channel Channel & & macro macro level level processprocess
enablementenablement
Multi-Channel Strategy Consistent AND Unique Customer Experience for all Interactions
IntelligenceIntelligenceEverywhereEverywhere
Billing Supply Chain
Order Management Financials
Customer
Business Intelligence
Real-time decisions
Performance Management
Contact Center Retail Field Web PartnersMobile
Customer Foundation
Enterprise-wide customer platform as foundationEnterprise-wide customer platform as foundation
Integration
Technical AND data integration into back-officeTechnical AND data integration into back-office
SFAStorefront MobileService Self Care
PRMSalesSocial Custom
Custom
CustomSupply
ChainCustom
• SFA & PRM On Demand• Superior analytics w/ trend reporting• Implementation to focus on
seamless transition
432% ROI & payback in 2.4 months Improved access to customer data,
replacing SFDC in just 6 weeksFully integrated front-to-back office in 10
months
Next Best Offer
• Real-time, contextual,targeting of offers to maximize service uptake
• Market flexible bundles to existing customers for increased cross-sell
• Provide Real-time Churn Reduction
10% Uplift in Offer Take Rates40% Reduction in Churn Increased cross-selling revs by 15% Increased avg # prods sold by 24%
Increase revenue per sale by 25%
Marketing
• Single Offer Management system• Extend Siebel Marketing to 100% of
B2B Campaigns• Extend Siebel Marketing, to use more
functionality, align Sales & Marketing
Proven Impact
Example - CRM Initiatives / TacticsExtend Oracle to Improve Customer Experience and Manage Churn
SolutionTactic
815 Campaigns Executed – 894% Increase YOY
405,669,109 Leads Generated – 1,013% Increase YOY
B2B SFA Replacement
BPM
Integrated Service Delivery StrategyCustomer facing + Network Facing + Supply Chain Facing
Order Management
Asset
Product
Customer
Workforce Mgmt
Business Process Mgmt Integration - Ordering Infrastructure - Business Intelligence Data Management
Service Delivery Platform
Multi-Channel Customer Interaction & Order Capture
Contact Center Retail Field Web PartnersMobile
OSS(Availability, Design, Activation, Inventory) Billing Rating & Charging
RetailSupply Chain
Retail Inventory
NetworkSupply Chain
Procurement
Planning
Fin
an
cia
ls
Bus
ines
s In
telli
genc
e
Ensure successful order Ensure successful order capture across all channelscapture across all channels
Impact margins by tying into Impact margins by tying into network and retail supply network and retail supply
chain and inventorychain and inventory
Ensure successful orders with Ensure successful orders with process integration to Order process integration to Order Management, OSS and billingManagement, OSS and billing
Integration and business Integration and business process with proven process with proven
infrastructure foundationinfrastructure foundation
Supply Chain…Value Chain?????
Supply toSupply toDemandDemand
Product to Product to DemandDemand
Product to Product to SupplySupply
A L I G NA L I G NOperations to Operations to
Corporate Corporate ObjectivesObjectives
PREDICTPREDICTMarket DemandMarket Demand
ADAPT ADAPT Sourcing, Inventory, Sourcing, Inventory,
Production, FulfillmentProduction, Fulfillment
INNOVATEINNOVATENew Product DevelopmentNew Product Development
DemandDemand SupplySupply
ProductProduct
• Modular Modular functionsfunctions
• Integrated Integrated ProcessesProcesses
• Business Business needs drivenneeds driven
A L I G NA L I G N
PREDICTPREDICT ADAPT ADAPT
INNOVATEINNOVATE
DemandDemand SupplySupply
ProductProduct
NumetrixNumetrix??????????
ERP
• Primavera
Supply Chain…Value ChainEnabled By Oracle Strategy
• Modular Modular functionsfunctions
• Integrated Integrated ProcessesProcesses
• Business Business needs drivenneeds driven
24
Travel& TransTravel
& TransAutoAuto Comms& MediaComms& Media
ComplexMfg
ComplexMfg
ConsumerSector
ConsumerSector EnergyEnergy
FinancialServicesFinancialServices
HighTechHighTech
Insurance& Health
Insurance& Health
LifeSciences
LifeSciences
Public SectorPublic Sector
and Other Operational & Analytic SourcesSource adapters:
Sales MarketingProcurement
& Spend
Supply Chain & Order
ManagementFinancials
HumanResources
PipelineAnalysis
ForecastAccuracy
Sales Team Effectiveness
Up-sell/ Cross-sell
Cycle Times
Lead Conversion
Employee Productivity
Compensation
Compliance Reporting
WorkforceProfile
RetentionAnalysis
Return on Human Capital
General Ledger
AccountsReceivable
AccountsPayable
Cash Flow
Profitability
ExpenseManagement
Revenue andBacklog
Inventory
FulfillmentStatus
CustomerStatus
Order Cycle Time
BOM Analysis
Direct / Indirect Spend
Buyer Productivity
Off Contract Purchases
Supplier Performance
Purchase Cycle Time
Employee Expenses
Campaign Effectiveness
CustomerInsight
Product Propensity
Loyalty &Attrition
Market Basket Analysis
Campaign ROI
Service &Contact Center
ServiceEffectiveness
Customer Satisfaction
ResolutionRates
Service RepEfficiency
Service Cost
Churn & Service Trends
Oracle BI Suite Enterprise Edition Plus
Oracle BI ApplicationsComplete, Pre-built, Best Practice Analytics
Application Integration Architecture (AIA)Oracle Communications Focus
BSS & OSS Applications
Billing and Revenue
Management
Front Office Applications
Enterprise Business Services
Financials &Supply Chain
ServiceFulfillment
SiebelCRM
SiebeleBilling
3rd Party
Application Business Connectors
Enterprise Business Objects
• Seamlessly unites best-in-class applications for Communications
• Integrated industry best-practices built on open standards
• Delivered as extensible, productized components; adaptable by partners and Customers
Processes Applications Capabilities1. Order to Activation
& Billing• Sales & Order Capture• Billing• Order Management• Activation & Inventory
• Multi-channel order capture• Complex order fulfillment• Change & error management
2. Self Care and Agent Assisted Billing Care
• Call Center Service• On-Line Self Service• Billing
• Multi-channel bill presentment• Usage & charge inquiry• Payment & Dispute
3. Integrated Revenue Accounting
• Billing• ERP Financials
• Month-end accounting for currency and non-currency resources
4. Comprehensive Master Data Management
• Centralized Product Catalog
• Customer Master
• Central product catalog• Synchronize common
definitions across platform
5. Network Build & Asset Management
• Network Inventory• Network Planning• Oracle Asset Tracking
• Network build planning• Procurement to build
AIA for Communications Planned & Delivered Integrations
27Oracle Internal
Enable Next Generation Services
• Deploy the Network for Next Generation Services
• Automate Order to Fulfillment
• Deliver Any Service or Content to Any Device
• Monetize Next Generation Services and Content
• Improve Customer Satisfaction
• Gain Customer Insight
• Maximize revenue through efficient service delivery
Drive Customer- Centric Business
• Leverage Common Data Across All Systems
• Increase the Agility of Your Business Processes
• Reduce the Costs of Network Infrastructure
Transform Information Architecture
• Accelerate Financial and Regulatory Reporting
• Manage Network Assets Efficiently
• Reduce Back Office Administration Costs
• Monitor & Improve Business Performance In Real Time
Improve Cost Control and Compliance
Oracle Communications Enabling Transformation
28Oracle Internal
AQ&