Perficient Perspectives

Turn Five Communications Industry Challengesinto Real Competitive Opportunities

Our Speaker

Randy ShillmanDirector, Perficient’s Communications Practice

• Randy has over 17 years of experience in the communications industry. He began his career with Andersen Consulting (Accenture). He later joined Objective Systems where he was instrumental in establishing a Europe, MIddle East and Africa (EMEA) office to deliver communications OSS and NMS solutions to service providers. Randy joined BoldTech Systems (which was later acquired by Perficient) in 1998. At BoldTech, Randy was responsible for growing its Revenue Assurance practice from inception to a multimillion dollar service offering in just over a year, and later assumed practice management responsibilities for the entire communications industry, which comprised over half of BoldTech's annual revenues. In 2007, Randy assumed the role of VP of Operations for the AmberWatch Foundation, a 501(c)(3) nonprofit dedicated to protecting children from predators. He returned to Perficient in 2009 where he now is a director of its Communications Competency Center (C3).

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Physical

Datalink

Network

Transport

Session

Presentation

Application

IP

TCP, UDP

Sockets, RPC

SSL, MPEG

HTTP, SIP, SMTP

Layer Network ProtocolsCommunications service providers (CSPs) have traditionally been strongest down in the network…

The Communications Industry Dilemma In a Nutshell

Unfortunately, revenue growth is happening with rich content, apps and cloud services from “Over the Top” (OTT) providers like Apple and Google….

Ethernet WiFi PPP

DSL CDMA POTS

…and Net Neutrality regulation is making it harder for CSPs to provide differentiated service to these OTTs

…while at the same time these network technologies are converging

…while at the same time the CSPs themselves are converging (e.g. CenturyLink/Qwest, AT&T/T-Mobile, Windstream/PAETEC)

And Still, The Industry is Stronger Than Many Realize…

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Key Industry Statistics (Domestic) 1:

• ROE = 15.9%• Div. Yield % = 5.84% (AT&T and

Verizon are highest yielding on Dow)• Net Profit Margin = 10.4%

Sources:1 Yahoo! Finance2 http://pages.stern.nyu.edu3 http://economictimes.indiatimes.com4 Money Magazine, August 2011

Other Key Industry Statistics :

• The third largest in terms of capital spending, after Petroleum and Automotive2

• CapEx expected to increase at compound rate of 2.4% to 2015 3

• The Third best performer over 1 year on S&P 5004

Comparison of iShares Dow Jones US Telecom (blue) to DJIA (red)1

Competitive Products Require Efficient “Quote to Cash” Process & Data

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App

App

App

Service Design Organization

Designer

Designer

CSR

Customer

OrderEntry

Ordering Provisioning Activation

App

Engi

neer

Engineer

Network

Service Delivery Organization

People – Accurate Introduction, configuration & ordering of complex products through content-driven portals and an integration-oriented approach

Process – Improved order management and provisioning through integration, service-oriented architectures and business process management

Systems/Data – Accurate representation of product, network, service and billing data through network audits, inventory management and revenue assurance.

Order Item

Order Item

Order Item

Order Item

Order Item

Order Item

Ord

erD

ecom

posi

tion

Order Management Organization

Order Management

Engi

neer

ServiceOrder

Compete ThroughInnovation

Survive ThroughOperational Efficiency

Retain Through Intelligence & Assurance

The Trend:

Network convergence - any app ,any device, any place, any time.

Products not just about usage or bandwidth anymore

The Business Problem:

In the rush to get products out faster than the competition…

Program dependencies get missed and timelines slip

Defect management takes a back seat, impacting quality

Ineffective partner management

Inefficient process and change management

Perficient’s Solution Approaches:

Program and Vendor Leadership

Change management and Governance

Process Re-Engineering and Defect Management

Quick Start RulebooksTM and Readiness Dashboards

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Opportunity #1: Exploit Convergence With Accelerated New Product Launches

The Trend:

OTTs are becoming the content providers

CSPs are avoiding being “dumb pipes” with content-driven customer portals, both traditional and as mobile apps.

The Business Problem:

Fragmented and inflexible web infrastructures – lack business agility

New protocols/technologies (e.g. XMPP, Jingle, SIP) are still arcane

Uncertain product cannibalization impacts

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Opportunity #2: Focus On Rich Content Delivery with Content-Driven Portals

Perficient’s Solution Approaches:

Web Architecture Modernization

CSP Content-driven Customer Portals

Self-Care Portals

Near-Real-Time Web content management

The Trend:

Web services in the “Cloud” is enabling collaborative services

Carriers are opting for SOA vs. COTS for operational efficiency

SOA becoming an enabler for BPM rather than just IT cost control

The Business Problem:

Silo’ed COTS OSS with limited integration ability and in the Cloud

Entrenched manual swivel-chair ordering

Lack of common information models exacerbates order fallout

Perficient’s Solution Approaches:

Web Service Integration with BSS/OSS and Partners

SOA for Complex Product Catalogs

Extending SOA for Business Process Management

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Opportunity #3: Streamline “Quote to Cash” with SOA/BPM Instead of COTS Silos

The Trend:

M&A (e.g. CenturyLink/Qwest, AT&T/T-Mobile) is resulting in disparate BSS/OSS with disparate data

Exponential growth of data volume generated by customers

The Business Problem:

Brittle ETL results in slow performance and operational deployment and troubleshooting inefficiencies.

Inability to trace data through the infrastructure results in long delays in accessing data and stale reporting

Inconsistent data architecture and data governance lead to inflexibility and data quality issues

Perficient’s Solution Approaches:

Data Inventory Tools, Assessments and Roadmaps

ETL/Data Warehouse Infrastructure Reverse Engineering

Data Virtualization/Federation Solutions

Business intelligence and Enterprise Performance Management

Revenue Assurance9

Opportunity #4: Address M&A Data Woes with Effective Data Management

The Trend:

Communications markets are mostly saturated

ARPU is often flat (e.g. declining voice revenues)

Customer retention through inbound promotions

The Business Problem:

Defining retention (and customers) in non-contract models

What to do with the bandwidth hogs?

Lack of 360 degree views of customer

Too much focus on outbound instead of inbound marketing

Poor customer service on network issues

Perficient’s Solution Approaches:

Real-Time Inbound Customer Promotion Management

Predictive Customer Analytics

Capability roadmaps

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Opportunity #5: Improve Customer Retention with Real-time PRM

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• Serving 35+ communications clients since 1997• Communications domain subject matter specialists each with an average of over 15 years of cable

and telecommunication industry experience• Reusable industry-specific intellectual property• Assessments/roadmaps leading to multimillion-dollar revenue and expense improvements• Expertise across full lifecycle (Design, Develop, Test, Implement, Operate)• Integration with many legacy and leading modern OSS/BSS systems• Deep experience with market leading technologies– IBM, Oracle, TIBCO, Microsoft• Custom Tailored Global Delivery Solutions

About Perficient

Perficient is a leading information technology consulting firm serving

clients throughout North America.

We help clients implement business-driven technology solutions that

integrate business processes, improve worker productivity, increase

customer loyalty and create a more agile enterprise to better

respond to new business opportunities.

PRFT Profile

Founded in 1997

Public, NASDAQ: PRFT

2010 Revenue of $215 million

20 major market locations throughout North America— Atlanta, Austin, Charlotte, Chicago, Cincinnati, Cleveland,

Columbus, Dallas, Denver, Detroit, Fairfax, Houston, Indianapolis, Minneapolis, New Orleans, Philadelphia, San Francisco, San Jose, St. Louis and Toronto

1,500+ colleagues

Dedicated solution practices

500+ enterprise clients (2010) and 85% repeat business rate

Alliance partnerships with major technology vendors

Multiple vendor/industry technology and growth awards

Perficient brings deep solutions expertise and offers a complete set of flexible services to help clients implement business-driven IT solutions

Our Solutions Expertise & Services

Business-Driven Solutions• Enterprise Portals• SOA and Business Process

Management• Business Intelligence• User-Centered Custom Applications• CRM Solutions• Enterprise Performance

Management• Customer Self-Service• eCommerce & Product Information

Management• Enterprise Content Management• Industry-Specific Solutions• Mobile Technology• Security Assessments

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Perficient Services End-to-End Solution Delivery IT Strategic Consulting IT Architecture Planning Business Process & Workflow

Consulting Usability and UI Consulting Custom Application Development Offshore Development Package Selection, Implementation

and Integration Architecture & Application Migrations Education

Daily unique content about content management, user experience, portals and other enterprise information technology solutions across a variety of industries.

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