Delivering Real-Time Business Value for Telecommunication

Delivering Real-Time Business
Value for Telecommunications
SAP Business Suite Powered by SAP HANA
July 2013 Public

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 2Public
The real-time opportunity
Fierce competition, increasing customer
expectations, and rapidly changing technology
require communication service providers to excel
operationally while innovating like never before.
 Enhance financial process effectiveness
 Optimize management of network assets
 Improve customer experience through better insight

Accelerate and
optimize financial
processes
 Speed financial reconciliation
 Minimize days sales outstanding
 Manage working capital efficiently
Improve asset
management and
operations
 Enhance management of network asset
deployment projects
 Maximize asset uptime
 Efficiently manage asset maintenance schedule
Improve customer
experience through
better insight to
action
 Improve segmentation and targeting through
better customer insight
 Personalize customer interactions to drive better
buying experience and enhance sales
Going beyond telecommunications
Innovate like never before

SAP Business Suite powered by SAP HANA
The next-generation business platform
Real-time business
In-memory
Business
transactions
Digital
connections
Collaborative
business
CloudSocial
Big DataMobile
One platform bringing it all together
Advanced
analytics

Industry value map (IVM) for telecommunications
Market Insight and Service
Innovation
Customer Insight and
Segmentation
Continuous Service Innovation
Service and Offer Definition
Service Platform
Network Asset Lifecycle
Machine-to-Machine
Mobile Commerce
Customer Experience
Management
Sales Force Support
Offer to Fulfill
Charging and Billing for
Telecommunications
Customer Service and Support
Operational Efficiencies
Sales Channel Management
Profitability and
Cost Management
Revenue Management
People and
Talent
Core Human Resources
and Payroll
Talent Management
Time and Attendance
Management
Workforce Planning
and Analytics
Finance
Financial Performance
Management
Accounting and
Financial Close
Treasury and Financial
Risk Management
Collaborative
Finance Operations
Enterprise Risk and
Compliance Management
Procurement
Supplier Discovery and
Lifecycle Management
Strategic Sourcing
and Contracting
Procurement and
Order Collaboration
Collaborative Invoice
to Pay
Commodity Management
IT Management
Application Lifecycle
Management
IT Infrastructure
Management
IT Portfolio and Project
Management
IT Service Management
IT Strategy and
Governance
Technology
Solutions
Analytics Consumer ExperienceData Management Enterprise Mobility
SAP HANA Platform
Application Development
and Integration

Industry value map for telecommunications
Market Insight and Service
Innovation
Customer Insight and
Segmentation
Continuous Service Innovation
Service and Offer Definition
Service Platform
Network Asset Lifecycle
Machine-to-Machine
Mobile Commerce
Customer Experience
Management
Sales Force Support
Offer to Fulfill
Charging and Billing for
Telecommunications
Customer Service and Support
Operational Efficiencies
Sales Channel Management
Profitability and
Cost Management
Revenue Management
People and
Talent
Core Human Resources
and Payroll
Talent Management
Time and Attendance
Management
Workforce Planning
and Analytics
Finance
Financial Performance
Management
Accounting and
Financial Close
Treasury and Financial
Risk Management
Collaborative
Finance Operations
Enterprise Risk and
Compliance Management
Procurement
Supplier Discovery and
Lifecycle Management
Strategic Sourcing
and Contracting
Procurement and
Order Collaboration
Collaborative Invoice
to Pay
Commodity Management
IT Management
Application Lifecycle
Management
IT Infrastructure
Management
IT Portfolio and Project
Management
IT Service Management
IT Strategy and
Governance
Technology
Solutions
Analytics Consumer ExperienceData Management Enterprise Mobility
SAP HANA Platform
Application Development
and Integration
Highest real-time
business value for
telecommunications
1
2
3
5
4 7
6

Today
KPI improvements are high-level estimates and will have to be validated for each customer situation.
Accounting and financial close
Business value for entity close
Reduce
time to close the
entities’ books by
10%
Reduce
Enhance
cost of finance
1%
compliance and
accuracy
With SAP Business Suite
on SAP HANA
 Long-running processes
 Time-intensive reconciliations
 Limited time for analysis
 Inefficiencies due to manual
processes and low automation
 Missing financial excellence
resulting in higher cost of equity
at the capital markets
 Difficulties in supporting parallel
financial reporting standards on a
global basis and in simulation of
scenarios
 More time for analysis, less overtime,
and earlier publishing of financial
results through faster
period-end processes and better
reconciliations
 Increased efficiency through smarter
reconciliations and reporting,
reducing operating costs and
improving stakeholder satisfaction
 Real-time analytics down to the
lowest level of detail – delivering
quality at source, transparency, and
process efficiencies

Today
Revenue management
Business value for receivables management
on SAP HANA
 More time spent preparing data; less
time for analysis
 Collaboration beyond finance team
hindered by perceived system
complexity
 Limitations in analysis capabilities
and dimensions because of reliance
on finance aggregates
 Large data volumes that lead to
batch processing and reporting
latency
 Difficulty in identifying exceptions in
thousands of pages of reports
 Instant portfolio overview that lets
managers focus team efforts on
tactical wins
 Ability to involve sales executives and
other business partners to accelerate
collections and dispute resolution
 More accurate document-level
calculation of DSO that allows you to
identify root causes of changes to
DSO
 Real-time reporting on all accounts
receivable data including credit,
collections, and disputes
 Anywhere, anytime access to key
receivables status
Increase
cash collections and
accelerate dispute
resolution
Optimize
Gain
working capital
instant and up-to-
date overview of
receivables
portfolio

Today
Offer to fulfill
Business value for efficient sales through contact center
 Data in different data sources
prevents true 360-degree view of the
customer
 One central place for collecting all
customer data from various sources
and tools
 Precision marketing to personalize
every interaction with the customer
Optimize
return on marketing
investments by
2%
Improve
offer win rate
 Difficult to extract actionable
information from the enterprise-wide
customer data to maximize the
chance of a sale
 Minimal insight into buying
preferences of customers in social
data context
 Real-time analysis of Big Data to
better understand buying patterns
 Real-time access and assembly of all
data, including social/sales data
on SAP HANA

Today
Network asset lifecycle management
Business value for maximized asset utilization and uptime
on SAP HANA
Increase
asset utilization and
reduce unplanned
asset downtime by
15%
Maximize
Improve
asset uptime by
12%
scheduling information
on maintenance
operations
 Maintenance scheduling consumes a
great deal of time
 Manual and error-prone process of
preselection of maintenance plans
 Potential to miss necessary objects
for maintenance calls
 High number of maintenance plans
that need to be scheduled frequently
 Accelerated mass transactions
 Instant analysis on top of
transactions
 Preselection of due plans, speeding
up the process significantly
 Real-time analytics on all data,
including machine sensor information
 Scheduling of all maintenance plans
within a specific timeframe
 Planning several times a day (instead
of once a week) results in
up-to-date scheduling information in
maintenance operations
 Faster response times lead to more-
accurate maintenance scheduling

Today
Customer service and support
Business value for contact management with interaction center
on SAP HANA
Decrease
average handling
time by
4%
Improve
Reduce
SLA compliance
service cost by
3%
 To successfully resolve customer
issues, companies need to be able to
quickly locate the right experts or
resources within the organization,
whether those experts work inside
the contact center or elsewhere.
 Managers and supervisors lack
actionable reporting and visibility into
the workload of their teams.
 The high volume of customer records
and interactions results in increased
search times and greater difficulty
locating specific customer records.
 With the new SAP HANA-based
agent inbox, users can more easily
search for relevant experts – whether
in their own team or elsewhere in the
organization – in order to
dispatch/escalate issues to the most
suitable employee roles.
 A new interactive work distribution
dashboard provides supervisors with
actionable insights into the workload
of their teams and employees.
 Searches in the interaction center,
including account searches,
interaction history, and the customer
fact sheet, are significantly faster.

Today
Continuous service innovation
Business value for portfolio and project management
on SAP HANA
Increase
user productivity by
1%
Reduce
Improve
time for task
confirmation by
1%
Search for
documents and
project elements
 Project members experience long
waiting times when starting the
project and task dashboards. This
reduces user productivity when
working on several projects and on
tasks across projects.
 Updates on multiple tasks are
inefficient and time consuming as
project team members confirm tasks
one-by-one to reduce waiting times.
 Searching for documents across
projects takes a long time for large
portfolios of projects.
 The process of finding projects,
tasks, and phases by responsible
project members is slow.
 Faster access to tasks and projects
 Accelerated access to project, task,
and checklist items dashboards
 Enable project team members to
confirm times, status, and dates and
attach documents for several tasks at
once.
 Increased user productivity
 Accelerated search for documents
 Speed up finding projects or tasks by
responsible project member

Today
Customer insight and segmentation
Business value for marketing
on SAP HANA
Improve
Profitability by
1%
Optimize
Increase
return on marketing
investments by
3%
customer
satisfaction by
2%
 Missed market opportunities due to
lack of visibility and inefficient
processes
 Data explosion, driven by new level
of connectivity of consumers using
mobile devices and social networks
 Data is in disparate data sources,
which prevents true 360-degree view
of the customer
 Agile marketing to respond faster to
changing market dynamics and
opportunities
 New analytical, data mining
functionalities on Big Data (social
media, predictive)
 Near real-time monitoring and
reporting on marketing performance
 One central place for collecting all
customer data, leading to 360-degree
view of customers in real time
 Precision marketing to personalize
every interaction with the customer

Next step
Business scenario recommendation and value discovery workshop
 SAP offers a proven methodology and approach to
discover the customer-specific business
improvement areas and quantify value potential.
 We suggest such a workshop with your
line-of-business and IT experts.
 As starting point, we recommend a performance
and usage analysis of your current system.

© 2013 SAP AG or an SAP affiliate company. All rights reserved.
Thank you

© 2013 SAP AG or an SAP affiliate company. All rights reserved.
Appendix
with detailed customer cases

Reference telecommunications customer ($70B revenue)
Summary validated scenarios (combined findings)
Feasibility
BusinessvalueMedHigh
Med High
Point of sale
on SAP HANA
($38 million)
Real-time offer
management
($71 million)
Fast
financial close
($1 million)
Business
intelligence and
reporting
($7 million)
Infrastructure
use and abuse
monitoring
($10 million)
Social network
mapping
($23 million)
Profitability
analysis
($3 million)
Phase ‒ deployment road map
1 Short term
CRM: POS on SAP HANA: Enables real-time inventory
updates and improved retail outlet performance.
Increase sales; increase operating margin; reduce
shrinkage; reduce fraudulent returns; reduce cost
of ineffective promotions.
SCM: Real-time offer management: Falling profitability
margins per customer as well as general price
point reduction due to new players on the market.
Very high customer churn rate. Technical
challenge is to gather the necessary information
across multiple areas and calculate profitability on
a given package offering.
2 Medium term
FIN: Infrastructure monitoring: Significant bandwidth
issues due to a number of abusive data plan users
can significantly reduce customer experience for
other customers.
FIN: Fast financial close: Finance staff working 16-
hour days to analyze finance data and prepare
for month-end close. Now reduced to five days,
with 25 times faster processing times. Iterations
that took 2.5 hours now completed in 6 minutes.
SAP HANA Platform: customer-specific
SAP HANA products: SAP NetWeaver BW on
SAP HANA, high-performance applications (HPAs),
apps powered by SAP HANA
SAP Business Suite on SAP HANA
Scenario
(business value)
Legend
SAP Business
Suite on
SAP HANA
SAP HANA
applications
SAP HANA
Platform
SAP HANA use cases mapped to
industry value map end-to-end solutions

Reference telecommunications customer
SAP HANA Platform
-150
38 39
71 81
23
-200
-150
-100
-50
0
50
100
150
200
2013 Phase 1 Phase 2
Costs SoH Applications Platform
$ In million USD
More information: Stephen Hollier; Daniel Ptaszynski
Annual revenue: US$70 billion
Based on actual SAP
customer engagements
Annual benefits, SAP HANA
Platform: US$23 million
Annual benefits, applications
powered by SAP HANA: US$81 million
Annual benefits, SAP Business Suite
on SAP HANA: US$39 million
Estimated deployment costs
Total transition cost: US$150 million (est.)
SAP HANA Platform: Anything built on the platform that is customer-specific – new business processes and business models
SAP HANA products: SAP NetWeaver BW powered by SAP HANA; high-performance apps (HPAs); applications – mapped to
inventory value map (IVM) end-to-end (E2E) solutions
Currently available functionality (SP0, 1, 2) – 23 scenarios mapped to IVM E2E solutions, and planned functionality (All of the
E2E solutions on the IVM are in scope.)
SAP HANA Platform
SAP HANA products
SAP Business Suite
on SAP HANA

Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation
sessions and may not be completely validated.
Real-time offer management
Telecommunications
Innovation scope
SAP HANA platform (customer specific)
End-to-end (E2E) solution
Telecommunications – service and offer
definition
Value potential 5
Feasibility 5
Low High
1 5
Low High
1 5
Business context and goals
 Currently, the company is experiencing significant competition in all areas of telephony/Internet -
elated activities (fixed, mobile, Internet, cable). Profitability margins per customer are falling as
well as general price point reduction due to new players on the market. Very high customer
churn rate. In order to maintain current profitability, significant value add activities need to be
provided throughout the customer value chain. This begins with the customer offer for new
customers or for existing customers that are contemplating switching to other providers.
Business challenges
 To truly provide a profitable option for the company that at the same time provides a positive
value proposition to the specific customer...and do it quickly, on the spot! The technical
challenge is to gather the necessary information across multiple areas and calculate quickly
profitability for the company on a given package offering.
Process innovations
 SAP HANA can be used for on-the-fly evaluation of unique customer-tailored packages that
incorporate customer preferences and internal profitability potential, as well as exogenous
elements such as competitor offerings/price points
Contribution of SAP HANA
 Speed, agility, and responsiveness to determine the "best" telecommunications package offering
for the customer while ensuring a desired level of profitability for the firm.
Value drivers/KPIs
 Increased customer profitability; reduced customer churn; increased overall revenue

SAP CO-PA Accelerator report, drilldown
Telecommunications
 Understand customer profitability and overall customer analysis of revenue and operations to
better understand profitability drivers and make strategic decisions concerning lifetime value of
current/potential customers
Business challenges
 No clear view of profitability/true lifetime value of customer
Process innovations
 Visibility of profitability drivers and evaluation of lifetime customer value
 Speed and granularity
Value drivers/KPIs
 Improved profitability and finance efficiency
Innovation scope
SAP HANA products (HPAs, apps)
Telecommunications – financial performance
management
Value potential 3
Feasibility 5
Low High
1 5
Low High
1 5

Business intelligence and reporting
Telecommunications
 Increased access and performance of business analytics. The more informed, faster, and
granular reporting data provides business users with greater insights to make faster and more
impactful decisions. Apart from this business value, significant TCO implications and IT reporting
support can be realized.
Business challenges
 Slow and aggregated level reports that do not provide quick access to necessary data/insights.
Business users consequently react slowly and decisions are not based on timely and complete
information
Process innovations
 Faster and more informed decision making by business users that no longer have to significantly
rely on IT reporting support to develop new reports
 Performance, granularity of data, and greater end-user accessibility of unique reporting and
query needs
Value drivers/KPIs
 Improved IT reporting productivity; increased self-service usage by business end-users;
increased reporting efficiency
Innovation scope
Telecommunications – analytics
Value potential 3
Feasibility 5
Low High
1 5
Low High
1 5

Social network mapping
Telecommunications
Innovation scope
Telecommunications - customer insight and
segmentation
Value potential 4
Feasibility 3
Low High
1 5
Low High
1 5
 With the explosion of social media and "constantly on" communication, firms that have the ability
to make connections among sentiment analysis, customer behavior, geospatial information, and
other unstructured information can gain lucrative marketing information. That marketing
information can be subsequently used to make better offer management, cross-sell, and up-sell
opportunities.
Business challenges
 Gathering, analyzing, and predicting customer behavior patterns with so much unstructured data
creates a significant roadblock to effectively using all of this Big Data around us.
Process innovations
 Analysis and correlation of unstructured and structured data to help improve marketing
effectiveness.
 Ability to analyze Big Data
Value drivers/KPIs
 Increased profitability; increased revenue through cross-selling/up-selling/tailored offerings

Customer case: leading telecommunications provider in Poland
Summary validated scenarios
Feasibility
Businessvalue
Legend
LowHigh
Low High
SAP Business
Suite on SAP
HANA
SAP HANA
applications
SAP HANA
Platform
Predictive analytics
(2 million PLN)
Service and offer
definition
(21 million PLN)
Network asset
lifecycle
(3 million PLN)
Customer insight
and segmentation
(7 million PLN)
Financial
performance
management
(1 million PLN)
Phase ‒ deployment road map
Annual revenue: 14 billion PLN
1 Short term
Service and offer definition: Increased
customer profitability; reduced customer churn;
increased overall revenue
2 Medium term
Financial performance management:
Improved profitability, improved finance
efficiency
Predictive analytics: Increased self-service
usage by business end-users; increased
reporting efficiency
3 Long term
Network asset lifecycle: Reduced
excessive/abusive use beyond contract
stipulations; increased revenue opportunity
Customer insight and segmentation:
Increased profitability; increased revenue
through cross-selling/up-selling/tailored offerings
SAP HANA Platform: customer-specific
SAP HANA products: SAP NetWeaver BW on
SAP HANA, high-performance applications (HPAs),
apps powered by SAP HANA
SAP Business Suite on SAP HANA
Scenario
(business value)
SAP HANA use cases mapped to
industry value map end-to-end solutions

Customer case: leading telecommunications provider in Poland
SAP HANA Platform
21000 22000
32000
2000
2000
0
5000
10000
15000
20000
25000
30000
35000
40000
2013 Phase 1 Phase 2 Phase 3
Costs SoH Applications Platform
PLN
SAP HANA Platform: Anything built on the platform that is customer-specific – new business processes and business models
SAP HANA products: SAP NetWeaver BW powered by SAP HANA; high-performance apps (HPAs); applications – mapped to
inventory value map (IVM) end-to-end (E2E) solutions
Currently available functionality (SP0, 1, 2) – 23 scenarios mapped to IVM E2E solutions, and planned functionality (all of the
E2E solutions on the IVM are in scope)
SAP HANA Platform
SAP HANA products
SAP Business Suite
on SAP HANA
SoH = SAP Business Suite on SAP HANA
Based on actual SAP
customer engagements
Annual benefits, SAP HANA
Platform
Annual benefits, applications
powered by SAP HANA: 2M PLN
Annual benefits, SAP Business
Suite on SAP HANA: 32M PLN
Estimated deployment costs
Total transition cost

Innovation scope
Telecommunications - network asset lifecycle
Value potential 3
Feasibility 4
Low High
1 5
Low High
1 5
Infrastructure use and abuse monitoring
Telecommunications
 Significant bandwidth issues due to a number of abusive data plan users can significantly reduce
customer experience for other customers. Ultimately, this also means lost potential revenue ‒ the
abusers are not paying for their excessive use. Identifying these users is a first step toward
reducing this abuse; execution of policy is the second stage. Potential revenue increase can be
created by creating special plans to support such excessive data plan usage.
Business challenges
 Identification of the abusive customers and related customer data plan usage
Process innovations
 Identification of abusive behavior for data plans
 Ability to identify and review large amounts of data
Value drivers/KPIs
 Reduced excessive/abusive use beyond contract stipulations; increased revenue opportunity

Delivering Real-Time Business Value for Telecommunication

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