Insight
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Executive Briefing Bi-annual Magazine
Key Opportunities and Challenges for Operators in 2016
Roadmap to Success The path to becoming a Digital Service Provider
Redknee Drives Business Transformation for Digitel Venezuela
› page 14
Redknee Unified 2016 Addresses Growing Demand for Monetizing › page 22 Digital Services 7 Attributes Needed to Succeed in IoT
Ovum survey asks 100 CSPs about their progress towards becoming a digital service provider › page 08
› page 32
Edition Apr 2016
In this issue, INSIGHT focuses on the key opportunities and challenges for operators in 2016.
INSIGHT / April 2016
Letter from the Editor
Red Trends
Trends impacting the industry
Red Feature
Redknee celebrates its recent expansion in Lebanon
Customer Story
Redknee transforms Digitel Venezuela
Red Partnerships
Partnerships: Addressing the evolution of the telecommunications industry towards digital transformation services
Red Article
Redknee Unified 2016: Addressing the growing demand for monetizing digital services
Red Perspective
The secret to competing in today’s market: Agility
Red Perspective
Real-time monetization of the digital home
Outside Perspective
The monetization revolution
Beyond the Buzz
Redknee Events
02 06 11 14 18 22 26 30 34 38 42
04 08 12 16 20 24 28 32 36 40
Conversation with the CEO
Thought Leadership
Do you have what it takes to be a digital service provider?
Red Highlights MWC wrap up
Customer Story
Redknee supporting customers around the world
Red Comment
From CSP to DSP: the evolution of the service provider
Red Perspective
Smart Pricing and Unified Product Catalog and Order Management
Awards and Recognition
Outside Perspective 7 attributes needed to succeed in IoT
Red News
Red Locations Rome
Letter from the Editor
02 Welcome to the April edition of INSIGHT Magazine from Redknee.
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merican business icon Jack Welch has long been recognized for giving good business advice. He is quoted with saying, ‘Change before you have to.’ These words seem especially poignant for today’s communication
service providers, many of whom are struggling to quickly redefine themselves in today’s digital ecosystem. In a world where the latest trends last about as long as a Snapchat photo, many service providers are finding it hard to innovate at a pace that can compete with the newer, more agile players in the market. Because they are bogged down with old systems and old ways of doing things, change is especially difficult. But change must happen- communication service providers are evolving to become digital service providers, expanding their services, their customers, their markets and their partnerships to redefine how they do business in a world of connected things.
This edition of INSIGHT Magazine is dedicated to exploring these challenges: identifying advantages, finding solutions and celebrating some early successes in the digital transformation process. To begin our discussion, on page 6 we look at some of the latest trends shaping our industry. From 5G to ‘everything as a service’, the ability to stay one step ahead of the competition requires operators to work with one foot in the future. But where do they begin? On page 14 you can read about how our customer Digitel in Venezuela has been able to remove internal barriers and outdated systems, enabling them to improve operational efficiencies, market more effectively to their subscribers and better prepare them for the new digital landscape.
INSIGHT / April 2016
Digital Services and the Emergence of Telcos as DSPs One of the highlights of the April edition of INSIGHT is the recent industry survey we kicked off with Ovum, which included responses from over 100 service providers on how the need to offer digital services is sparking a telco transformation and reshaping the industry. Go to page 10 to see the report highlights, including some interesting results from the survey. How do you compare? What are the biggest challenges operators face? What new services are they focused on? This report covers these topics and more, providing a peek into what operators are thinking, planning and actually doing to prepare. Along these same lines, Page 32 provides some critical insight by highlighting the ‘Seven Attributes Needed to Succeed in IoT’, as identified by a recent report by Machina Research. These include: scalable, open, real-time, flexible, transparent and secure, agility, and lastly, vertical understanding. Spring is here and another MWC is in the rear view mirror. All this talk about change leads us to Mobile World Congress -the mobile industry’s largest event, and one that is always focused on what lies ahead. This year it was bigger and better than ever, and judging by the buzz in the air, virtualization, 5G and the IoT seemed to be the key themes. If you were in Barcelona, hopefully you stopped by our booth to say hello or caught up with our CEO, Lucas Skoczkowski, when he joined a panel of experts to discuss Designing and Engineering the Industrial Internet. Go to page 12 to see our MWC wrap up report, which includes highlights from the show and our latest product releases, including Redknee Unified 2016.
The IoT has the potential to create new revenue streams across practically every industry, and monetization needs to be part of the planning process at every stage. The ability to create and drive new business and revenue will be what keeps the IoT growing and thriving. Our article ‘The Monetization Revolution’ on page 34 digs a little bit deeper into this important topic. Product Enhancements to Drive Agility Redknee Unified 2016 is again the focus on Page 22, which gives you a close-up look at how our solution is evolving along with our customers. Our latest release is focused on driving agility through automation and improving the customer experience; not just for communication service providers, but for energy companies, automotive manufacturers and more. The importance of agility is further explored in an article on page 26. ‘AGILITY: The Secret to Competition in a New and Competitive Market’ highlights the benefits of cloud and virtualization in BSS and how this added agility can be used to gain a competitive advantage. We hope you enjoy this edition of INSIGHT Magazine and that we see you soon at one of our upcoming events. Take a peek at page 42 for a snapshot of our event calendar to learn more, and drop me a note to share what you’d like to see in our next edition. Sincerely, Michaela Radman, Head of Global Marketing, and Editor of INSIGHT
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At Redknee, our role is enabling successful new business models for service providers and IoT innovators.
INSIGHT / April 2016
Conversation
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with the CEO
edknee has recently participated in Mobile World Congress. As the largest industry event of the year, I always look forward to meeting with customers and partners to share new ideas, as well as catch up with old friends and colleagues in our industry. Over the past few years, there has been a lot of talk around the Internet of Things, network virtualization, and the new digital economy, and as always in our industry lots of hype precedes real value creation / disruptions. This year was different though, and for the first time I can say that the hype is finally on its way to becoming reality, albeit it will be slower than previous forecasts.
There has been a lot of industry change in the areas of devices, connectivity, and M2M. We are now seeing a big shift towards the use of monetization platforms, where CSPs are actually leaving their legacy billing solution behind, and creating entirely new stacks to manage today’s digital IoT services. At Redknee, our role is enabling successful new business models for service providers and
IoT innovators. An example is energy, where smart grids and smart meters are allowing for new payment and consumption models. Energy providers are beginning to think outside the box about how energy is consumed and paid for – and Redknee is helping to make this happen with our prepaid energy solution.
This year, you will see from Redknee a more comprehensive approach. From expanding our service offerings and new product features, such as multi-play capabilities and real-time analytics based smart pricing, to improving the customer experience, to network virtualization and helping our customers manage the huge growth of 4G data services. Redknee believes that 2016 is the year the market is taking a collective deep breath and saying ‘Okay, we’re finally ready for what’s next’. This mindset has led to the creation of digital monetization platforms that virtualize real-time charging, providing operators with the flexibility they need to manage things like multi-country billing deployments via centralized hubs, and the ability to get
new service offerings to the market more quickly.
I believe that Redknee Unified 2016 is the most configurable monetization platform on the market today. It is becoming the real-time cash register for connected businesses. We provide the ability to offer services and products in new and unusual ways, and our analytics and smart pricing capabilities can be used to gain customer insight to help create better value for any business. Today, we partner with market leading companies like Elster, BMW and Bosch, where we apply our cloud-based monetization technology to provide greater flexibility in how they go to market and offer their services in a connected world. We are continuing to look at other alternative markets and how we can support different business models and new customer segments, which in the past were not accessible to us. 2016 is shaping up to be an exciting year, and like our customers, I’m also looking forward to whatever comes next.
Red Trends
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TRENDS
impacting the industry
INSIGHT / April 2016
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3
4
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The Evolving Telco Provider Increasingly, consumers want customizable plans with personalized amounts of text, voice and data features. In response, operators are adapting their products to procure and retain customers.
5G With the first trials and limited commercial offerings of 5G technology launched, the use of this new standard is set to soar. Initially, operators may be challenged to balance fluctuating bandwidth services, new business models and service offerings. However, 5G services, supported by real-time pricing models, will inevitably be more versatile than current services.
The App Economy Consumers are seeking improved user experience and engagement with their applications. To gain a competitive advantage, operators should consider partnering with providers of over-the-top content to utilize embedded data for insight into consumer behavior, redefine their role in the App market, and provide combined connectivity and digital services.
Connected Ecosystem The scope of connected people, products and devices is continuing to grow and diversify. Apple Carplay and Google Android Auto are two recent market entrants that are enhancing the connected car experience. Entrants can transform existing markets with the introduction of connected devices and sophisticated technologies. As connected devices continue to gain in popularity, the opportunity and number of devices will only increase.
Everything as a Service Business models are shifting from ownership to usage, leasing and service based models. We are set to see new services such as usage based car insurance as well as more sophisticated leasing models in which the value of equipment is determined at certain milestones to optimize reselling opportunities. These innovative solutions are set to become more widespread this year.
Thought Leadership
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Ovum Survey: How the need to offer digital services is sparking a telco transformation and reshaping the industry
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igital service providers (DSPs) have become significant players in the telecoms market, offering Internet-based services, such as IP voice and messaging, and content-related services. The success of these players as alternatives to traditional telco services has put telcos in a precarious position. As the penetration of mobile devices and the use of digital services increase, telcos can no longer ignore the impact of digital services and OTT players on their revenue performance. While some attempt to limit OTT access to telco networks by imposing restrictions on how these digital services are consumed, others have decided to offer these services as a means to retain customers
and enhance revenue performance. As telcos evolve into digital service providers, they must bear in mind that the business and operating models supporting these services must be driven by a strong customer experience strategy. Telcos must also evaluate their current IT capabilities and consider upgrading their existing IT systems in order to successfully deliver digital technologies and provide a comparable customer experience. Earlier this year, Redknee sponsored a survey conducted by research firm Ovum to investigate how telcos are evolving into DSPs. Ovum investigated the digital services currently offered and those that
will be launched over the next five years, the business models currently adopted, and the strategies that need to be in place for telcos to remain successful as they evolve to become DSPs. Survey results were compiled into a report, where 100 telco executives from fixed service providers, mobile network operators (MNOs), mobile virtual network operators (MVNOs), and integrated fixed and mobile service providers across Africa, Asia-Pacific, Europe, Latin America, Middle East, and North America were interviewed to get a better understanding of the transition of telcos into DSPs and identify how prepared they are for this transition.
INSIGHT / April 2016
Figure 1: IP communications, content, and cloud are the digital services currently most offered
Which of the following digital service categories do you currently offer? Communications Digital content and entertainment Cloud-based services Education Healthcare Mobile payments and commerce Automobile Privacy, trust and security Transportation 0%
of these digital services, with the revenue-share model being the business model of choice for telcos. 5. Existing telco IT systems are unable
to support revenue-share business models; both revenue management and partner management systems will need upgrades to support the complexities of these models, however 87% of telcos are not ready. (see figures 2* and 3*) 6. When developing digital
Key messages:
transformation strategies, telcos should learn from other markets, including Internet players, to
25%
50%
Figure 2: The majority of telcos will upgrade IT systems to support digital services
Over the next 18 months, will you be upgrading your IT systems to support the delivery of digital services? Yes, will enhance with minor modifications
55%
Yes, will transform with major modifications No, will maintain in current state
32% 9% 4%
Yes, will install new or completely replace systemt(s)
1. Telcos understand that digital
services are here to stay and that they need to take advantage of these services to grow their revenues. 2. Key factors driving the adoption of
these services include the increasing penetration of smartphones and other connected devices, and the transformation of customers’ consumption patterns over time.
Figure 3: Most telcos are either in the early to mid stages of their digital transformation
How would you rate your business’s progress towards digital transformation?
57% 28%
3. The top three digital services
currently offered by telcos are IP voice and messaging services, digital content, and cloud-based services. (see figure 1*) 4. Third-party partnerships are crucial
to the development and delivery
further develop digital sales, product portfolios, and customer engagement strategies. 7. Telcos’ digital transformation
strategies must include customercentricity, having a phased approach to digital transformation, and ensuring that innovation remains an ongoing priority. 8. To be successful, telcos must adapt
2% 13% In progress
Well advanced
Early stages
Not started
and meet customers’ demand for an optimum experience. Big data and real-time monetization platforms, in addition to unified catalog-driven systems, will be critical to telcos’ digital transformation agendas. *Source: Ovum
Contact us T +44 (0)20 7017 6970 E crmgroup@ovum.com W Ovum.com
Contact us T +1 905 625 2622 E contact@redknee.com W redknee.com
OvumICT Ovum
redkneeRKN redknee
DIGITAL SERVICES AND THE EMERGENCE OF TELCOS AS DSPS
Fierce competition from OTT players is forcing telcos to transform themselves into digital service provider (DSPs). Ovum, in partnership with Redknee, has conducted a survey where 100 C-level telco executives were interviewed to investigate telcos’ priorities when making the transition to DSPs.
Telcos look to digital services as new revenue opportunities beyond their traditional services
Telcos find value in OTT based services, as these services top telcos’ current digital offerings
67%
IP, content and cloud based services are the most popular digital services currently offered by 42% of telcos today
In the next five years, IoT, M2M, and industry specific offerings will dominate telcos’ digital service offerings
Telcos will adopt the revenue share model as partnerships with third-party companies will be critical to the development of these digital services 71% of telcos will work with third-party organizations like OTT players and technology start-ups to develop, deliver and support these new services
71%
34% of telcos plan to use a revenue share model to support their partner strategy
However, existing legacy telco IT systems are impeding telcos ability to deliver the support and experience demanded by these digital services and business model 55% of telcos will make minor changes to their IT systems
…while 36% will undergo major IT transformations
42%
All telcos agree that digital transformation strategies are essential to the delivery of digital services, however timing is critical
72%
of telcos believe that digital transformation must occur before launching digital services
However, only 13% of telcos say they are ‘well advanced’ in the digital transformation process and none have completed their digital transformation projects
As telcos evolve into digital service providers, they must:
1
Bear in mind that the business and operating models supporting these services must be driven by a strong customer experience strategy
2
Evaluate their current IT capabilities and consider upgrading their existing IT systems to successfully deliver digital technologies and provide the necessary customer experience
Read the full report: http://bit.ly/redknee
Data Source: Ovum’s survey on CSP Digital transformation, conducted between November and December 2015
…of telcos rated ‘need to grow revenues through new opportunities’ as one of the top three factors driving their adoption of digital services
Red Feature
INSIGHT / April 2016
Lebanon Redknee celebrates its recent expansion in
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edknee has a long history in the Middle East and has maintained a strong presence in the region for more than a decade. Over this time Redknee has seen the market and technology change and develop across the region, with operators going from 2G to 3G and now 4G/LTE technology. The Middle East has modernized the market to attract competition and has now become one of the most dynamic markets in the world. At the heart of Redknee’s presence in the Middle East is the Beirut office which continues to grow as we expand our presence both within Lebanon and the region.
In a country that enjoys some of the best telecommunications technology and infrastructure in the world, Redknee is able to support the development of this dynamic sector and service key customers such as Touch Lebanon, which is considered a priority for Redknee’s executives, and other valued clients across the region. To celebrate Redknee’s presence and commitment to Lebanon and the region, Redknee’s Beirut office hosted an event with the sponsorship and presence of Redknee’s CEO, Lucas Skoczkowski, along with Her Excellency Mrs. Michelle Cameron, the Canadian Ambassador in Lebanon and other Redknee partners. The event conveyed Redknee’s global experience, strategy and long term vision for the Middle East, while outlining its ambitious expansion and plans to work alongside the Ministry of Telecom in Lebanon to promote the development of this innovative and fast moving market.
Red Highlights
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MWC Wrap Up A
s the communications industry’s most anticipated event, Mobile World Congress 2016 did not disappoint. Redknee’s presence stood out to over 100,000 attendees as a leader in real-time monetization solutions for the unfolding digital economy. Over the course of four days, Redknee met with hundreds of today’s leadingedge service providers to discuss their strategy for embracing the next generation of communications services and how our monetization solutions support their growth ambitions, improve differentiation and the overall customer experience all in real-time.
If you weren’t at MWC16 and want to know what you missed, pleased contact us today at sales@redknee.com
What’s New & in the News? Redknee Unified 2016
The latest release of Redknee’s flagship monetization platform.
Ovum Survey on Digital Transformation
Survey results of over 100 CSPs and their digital journey.
Machina Report on Monetization of the IoT Read about the $1.3 Trillion opportunity.
INSIGHT / April 2016
At MWC 16, Redknee showcased our latest product demo’s:
Smart Pricing Redknee’s Smart Pricing solution delivers contextual, real time upsell opportunities based on extended customer insights derived from both the network and the device. Specifically, the demo highlighted how a CSP can maintain a continuously updated view of the customer based on multiple information feeds, how marketing can define corresponding smart offerings, utilizing the now extended customer insight and real-time context, and how these smart campaigns actually work on a phone in order to show the customer experience perspective.
Digital Customer Journey This demo highlighted Redknee’s approach for launching, selling, delivering and driving upsell of multi-play products across all services and customer segments, helping CSPs to accompany their customers throughout the digital customer journey. Customers saw how a CSP can roll out and drive the sales of multi-play offerings with Redknee Unified’s new product catalog and integrated order management; delivering real time OMNI channel commerce at your fingertips.
IoT Create Internet of Things (IoT) service business models beyond simple monthly subscription pricing. The demo illustrated how online customer engagement can trigger service upsell, create higher customer satisfaction and business optimization as well as monetization opportunities through SmartHome capabilities with online customer engagement.
Click on the video link below to listen to Lucas Skoczkowski, Redknee CEO, as he explains that for communications service providers (CSPs) to evolve into digital service providers (DSPs), it’s all about how they engage and treat their subscribers. This includes making it easier for subscribers to interact with their service provider. http://goo.gl/TfVIqx
Customer Story
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Redknee Transforms Digitel Venezuela
Redknee’s monetization and subscriber management platform enhances the customer experience, creates internal efficiency and cost savings
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s a leading telecommunications provider in Venezuela, Digitel’s strategy is to grow and become the preferred telecommunications provider by continually seeking a better quality of life for its customers. Redknee’s converged billing, charging and customer care solution delivered an agile, flexible and scalable solution which leveraged internal resources to support its ambitious strategy and aggressive growth plans. Using a converged system to create internal efficiency Digitel operates in a competitive environment with strong price pressures which encourage churn, providing an uncertain environment for operators. Prior to installation of Redknee’s converged billing, charging and customer care solution, the company had more than
40 processes in place causing fragmentation of business groups and inefficiency across the business. To effectively compete, Digitel needed to simplify its processes to create greater efficiency from a cost and operational perspective, but also enable the company to quickly communicate with its customers and effectively react to the market. This was only possible with a more efficient internal system. Redknee’s converged billing, charging and customer care solution delivered an agile, flexible and scalable solution which leveraged the power of Digitel’s internal resources to support its ambitious strategy and aggressive growth plans. The platform was able to integrate into existing BSS infrastructure and simplify workflows, resulting in improved efficiency and cost reduction. The Redknee solution also allowed Digitel to communicate with all customers regardless if the customer came from the prepaid,
INSIGHT / April 2016
postpaid or hybrid customer groups, this enabled the company to provide a better and more consistent quality of service to its subscribers. Providing Superior Customer Experiences in Real-Time The implementation of Redknee’s converged billing, charging and customer care solution resulted in almost 6 million subscribers being migrated onto the Redknee platform. Upon implementation of Redknee’s solution, Digitel’s subscribers were able to instantly benefit from the seamless integration, including pre-tested and prepackaged templates that accelerated Digitel’s service
provisioning and allows for the quick launch of more advanced service offerings and customer experience solutions. Digitel is now able to provide an advanced customer experience through bundled services, personalized offers, differentiated cost control, real-time notifications, customer self-care, and instant activation of selected tariff options. Furthermore, customers benefited from the simplicity and transparency of real-time processing, charging and billing of services. By processing all transactions on a single platform, Digitel could communicate offers and improved customer service across all service lines regardless of customer type resulting in more consistent service across the business.
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Customer Story
Venezuela
Mexico
Oman
Tunisia
Charging, billing and customer care support for more than 5 million subscribers
Redknee’s monetization and cloud solution supports new MVNO and MVNE brands in LATAM
Recent launch of new multi-play and payment solutions
Real-time monetization and campaign management enabling tailored campaigns and communications
INSIGHT / April 2016
Redknee supporting customers
around the world
Canada
Philippines
Japan
Italy
Redknee’s platform allowed for the introduction of a loyalty program focusing on social and community support
Redknee’s prepaid energy solution allows for pay-asyou-go energy use
Real-time charging services for a new data focused MVNO
Redknee’s services support one of the largest T1 operators in the country
Red Partnerships
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Partnerships:
Addressing the Evolution of the Telecommunications Industry Towards Digital Services
INSIGHT / April 2016
A
s the world becomes digitally connected, demand for digital services and technologies will continue to advance. Today, we are witnessing unprecedented changes in the telecommunications industry. These changes, driven mainly by consumers, have created massive opportunities for digital services, which has in turn led to industry players proactively seeking ways to better develop, deliver and monetize these advanced services. A way to achieve this is through partnerships to effectively collaborate and provide innovative solutions that enable service providers to maximize the value of current and future business opportunities. Earlier this year, Redknee announced a strategic partnership with Wipro, a leading global information technology, consulting, system integration and business process services company, to provide comprehensive solutions that unlock value for service providers seeking to transform their businesses. “Our partnership with Redknee strengthens our continued commitment to provide business value to customers through cutting-edge end-to-end solutions. We believe that our Open MVNO Telcoin-a-box solution for the digital service provider, along with Redknee product capabilities, offers fundamental key features to enable CSPs to tackle challenges such as faster time-tomarket, explore open standards based architecture and achieve seamless order-to-bill deployment,” said Anil Jain, Senior Vice President and Global Head – Communication Service Provider BU, Wipro Ltd.
The combination of Wipro’s BSS solution and consultancy services with Redknee’s award winning monetization platform, Redknee Unified, will create a differentiated solution to support the evolving telco to digital landscape. Redknee unified billing will be a key component of Wipro’s digital BSS framework named RAPIDS. RAPIDS is a complete pre-integrated digital BSS offering from Wipro for telco embracing the digital transformation.
“We will capitalize on each other’s expertise to ensure that the customers get the best solution in the market. This is a mutually beneficial partnership wherein we support Redknee in their product direction while Redknee supports us in the solution and integration areas. We will jointly explore untapped market opportunities,” said Viswanathan Ramaswamy, Vice President and Global head of technology practice for Communications Service Provider BU, Wipro Ltd.
The Wipro-Redknee ‘Digital BSS Solution’ addresses industry trends and initiatives relating to social, mobility, analytics, Cloud and IoT. Together these services can help service providers implement innovative solutions, tap new revenue segments, enhance the customer experience by empowering customers with real-time self-care and account information, while simplifying and optimizing operating and IT expenses.
As customers shift towards the use of digital services, traditional revenues that service providers relied on for decades such as voice and SMS, are no longer as profitable as they once were. With OTT providers and other third party apps providers monetizing services and generating revenue from this connected, mobile and digital world, it’s clear that service providers need to evaluate their current IT capabilities, business and operating models, and consider upgrading or transforming their existing IT systems in order to successfully deliver digital services, monetize their services and provide a superior customer experience.
Together, Redknee and Wipro are working as strategic and preferred partners for customer engagements across the globe, enhancing the value to existing and new customers; and co-development of digital BSS solutions, which continuously address the rapid changes and expectations of the digital customer. The joint solution pre-integrates the Redknee BSS portfolio into the Wipro RAPIDS suite, and builds and aligns the Redknee and Wipro product and service roadmaps to ultimately provide clients with solutions that address the changing market and future customer needs.
This is an exciting time for the telecommunications industry and by bringing the best-of-breed of technologies and consulting, system integration services from Wipro and Redknee to the market, service providers are assured to receive best support and partnership to unlock value and transform their business now and in the future.
‘‘
Redknee continues to look beyond the traditional boundaries of telecommunications. As CSPs continue to transform and take advantage of the digital and connected world in which we live, Redknee is excited to announce its new partnership with Wipro to help our clients with market leading solutions that transform their business, while supporting future growth opportunities and efficient operating strategies. -Lucas Skoczkowski, Redknee’s CEO
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Redknee and Wipro sign a Memorandum of Understanding at Mobile World Congress, 2016 to support service providers to monetize services faster and better serve customers throughout the digital transformation.
Red Comment
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From CSP to DSP
An interview with Redknee Chief Marketing Officer, Chris Newton-Smith
the evolution of the service provider
C
hris Newton-Smith is the Chief Marketing Officer of Redknee. He was recently interviewed by George Malim, Editor of Vanilla Plus Magazine. Here he tells George how, as communications service providers (CSPs) transform to become digital service providers (DSPs), they are entering new markets, bundling propositions with new partners which are putting significant stresses on BSS. Newton-Smith warns that a slick front end is only part of the answer; CSPs must do the hard work of connecting their BSS infrastructure if they want the flexibility and time to market required to compete in the digital services market. VanillaPlus: There has been a lot of talk about the need for communication service providers to become digital service providers. What do you feel a DSP is, and have you seen evidence of this change within your CSP customer base? Chris Newton-Smith: From Redknee’s perspective, there are several changes that we are seeing in the market due to the CSP to DSP transformation. First, within the telecoms business, CSPs are still selling minutes and data, but how they engage with their customers has changed. They engage their customers in multiple ways, including the use of online access, apps, social media, customer care and more. Today’s customer engagement expectations are being set by businesses that provide various selfservice options – like Amazon and others. They deliver consistency throughout all their channels, and are focused on making it easier for customers to discover new services. CSPs are working to replicate these best practices for communicating with their subscribers.
The second set of changes we see are that some CSPs want to bundle and offer existing telecoms and new, nontelecoms services together. They might bundle retail energy with voice and data minutes, or offer home security with more traditional telecoms offers, while using the same provisioning or order management systems to create these new offers. The front end can be improved by providing a better app that is easy-to-use, but CSPs also need to do the hard work of connecting the back-end infrastructure especially when it comes to offering new services. Our customers are moving in this direction but it’s not something everyone is doing yet. The types of new digital services we see are varied. There is no common approach that I’m seeing in terms of how service providers are moving from CSP to DSP, it varies based on the CSP’s market and IT infrastructure. VP: What types of digital services are your CSP customers supporting today? CNS: I’m seeing some really exciting offerings, like buying and managing home energy services through a mobile phone, or services where CSPs bundle together different devices, such as offering home security features or bundling IP services on the enterprise side. Vodacom Business has created a successful offering where it is reselling enterprise services such as Microsoft Office 365 and bundling these with connectivity and IT services. Most CSPs are rolling out M2M offerings – providing the bandwidth and device management piece for M2M modules. We have a number of customers who are providing an MVNE solution to enable
new partners and brands that want to launch MVNOs. Often these brands are coming from outside the telecoms industry, and want to utilize the expertise and MVNE capabilities of a CSP to launch quickly into the market and to outsource the telecoms piece. For CSPs this can be a twist on their wholesale business, reselling billing and IT as a cloud service for MVNOs along with wholesale minutes and data. Most MVNOs today are looking at new offerings, such as retailers that are using mobile minutes and loyalty points combined with their retail offers, or integrating with banks, and other types of co-branded business models. VP: What do you believe are some of the key challenges service providers are facing in making this transition? CNS: Organizationally, we see that CSPs are working to simplify how they roll out new IT services and offers. Some have set up standalone business units, and are combining IT and technology organizations to help them roll out new services. Some are looking at outsourcing with companies like Redknee. For the larger CSPs, the question becomes, how to advance with a disparate IT infrastructure. Some CSPs will want to build an entirely new stack, and some CSPs are taking this approach. For the MVNE market, they typically will want to build a new stack to support their MVNO clients. Whether it’s a new stack or transforming the existing IT infrastructure, it is a challenge that involves not just technology but also managing change throughout an organization. CSPs need to ensure that they have the right partner or set of partners to make these projects successful.
INSIGHT / April 2016
VP: How are CSPs preparing to handle billing complexity as they transition from being traditional CSPs to becoming digital services providers (DSPs) and what are their primary needs? CNS: We’ve seen that CSPs are looking to simplify their software stack, and are looking for their partners and suppliers to take on more of an execution role. This is a trend we are seeing more and more. They are working to simplify their offers and how they go to market, and making corresponding changes to their IT and BSS systems. CSPs need to be able to design and launch new products and services quickly, they need to provide great customer service through multiple channels, and do this while reducing their overall spend to improve profitability. CSPs are also looking for software solutions that are proven, well packaged and pre-integrated; to minimize integration risk and enable fast time to market. There is also a push to offer new OTT services to market, and to do this properly they need to be able to support partnerships. This requires having the IT tools that allow them to bring on new partners, manage them more easily, and handle complex revenue settlement that can involve multiple partners in the value chain. VP: What are the implications of multiparty – or B2B2X – business models? CNS: The answer to this question depends on what role the CSP is playing and what the business model is. If the role of the CSP is to resell and create new offers as a channel for new B2B partner services, they need a way to manage these commercial relationships. They need to measure if they are meeting their SLAs. If they are billing on behalf of other parties, they also need to figure out who gets what from the value chain. In some cases the CSP is acting more as an IT enabler. In this scenario they are providing a platform where there is a common set of BSS services that they want to offer to potential IoT application developers and enterprise
customers. With a CSP platform offering, the question then becomes, how do they modularize their capabilities and potentially resell them as services? How do I take my BSS infrastructure and make it easier to use? In this instance, the CSP is not selling the services themselves, but instead they are helping their customers take their services to market. VP: With digital services, the number of services provided by CSPs will proliferate, and it will also create accelerated service lifecycles. What stresses to launch and support for new digital services will this put on existing BSS infrastructure? CNS: In terms of the lifecycle of a service, a CSP needs to be able to quickly provision and set up the new digital service within its infrastructure. As a CSP, you have to be able to set the new digital service up in your product catalogue and BSS infrastructure, including linking it into your order management and provisioning systems to automate the delivery of the service. A new customer will have an expectation of near instantaneous delivery of the service and the IT infrastructure needs to be able to deliver this. And of course, a CSP also needs to be able to quickly troubleshoot if something goes wrong with the delivery of the new service. As a service provider, I also want to communicate in a more proactive way with my customers – in real-time. I will also want to be able to promote multiple offers with promotions that mix new and existing services. Once the service is up and running, I then need a way to support the customer. They might call in to a helpdesk or they might raise a question on social media. As a CSP I need a way to support them in a way that works best for them. I need to provide an omni-channel customer service approach where the user experience is consistent across channels. This often stresses current BSS systems. VP: A key new service area for CSPs will be IoT. How are the requirements of IoT different? Are CSPs’ current BSS infrastructure fit to serve the high
volume, but relatively simple demands, of M2M services? CNS: For anyone providing an M2M service today, it typically requires mobile wireless access, which is supplied by the CSP. M2M is a building block of IoT applications, and the M2M business model can be a lot simpler. With M2M, the CSP needs to be able to distribute and dynamically provision SIMs as part of an application, provide 3G or 4G connectivity to these SIMs, and manage the devices, determining what’s online and what isn’t, they then need to aggregate the data traffic and provide a bill at the end of the day. This is a clearly defined typical M2M offering and most CSPs are in this business today. Sometimes the CSP has to modify or add to their IT stack to deliver M2M services, but it is in-line with what they do today for voice and data. IoT applications have different monetization requirements, which vary a lot depending on the application and the business model. Redknee is working with a number of IoT application developers, and specifically on monetizing IoT applications that have high volumes of transactions and real-time customer engagement. VP: Finally, how would you sum up the key attributes now required of BSS to support new digital services, multi-party business models and IoT? CNS: It really comes down to having systems in place that can provide flexibility and agility to support whatever comes down the path. The future of the IoT is still unfolding, and CSPs need to build and plan for that uncertainty in their infrastructure. In effect, they need to plan for what they don’t know. CSPs may not be able to map out the future in detail, but what they do know is that they will need to be responsive to their customers, they will need to be adaptable to market demands, and they will need to be fast. If they can get their infrastructure to support these three key requirements, the rest will be a lot easier. (Reprinted from the Feb/Mar 2016 issue of Vanilla Plus)
Red Article
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Redknee Unified 2016: Addressing the growing demand for monetizing digital services By: Chris Newton-Smith, Chief Marketing Officer, Redknee
I
n February 2016, Redknee announced the launch of Redknee Unified 2016, the latest release of our end-toend real-time monetization software solution. The launch of Unified 2016 comes at a time when the communications industry is undergoing a significant transformation, with communication service providers (Service providers) evolving into digital service providers (DSP’s) that are entering new markets and launching new services. Redknee Unified 2016 gives today’s digital service provider a single, end-to-end converged billing solution for monetizing the entire digital economy – no matter the type of service, customer or business model. Its centralized product catalog drives multi-channel selling, order entry, customer order delivery and billing while the solution’s comprehensive order management and workflow capabilities ensure efficient and accurate order delivery and immediate real-time fulfillment and tracking.
Monetizing any Service, any Market and any Device Redknee Unified 2016 is a next generation billing solution that empowers service providers to monetize digital services across any line of business as they transform themselves into digital service providers (DSPs). Unified 2016 allows for innovative cross-service bundles, real-time rewards and campaigns no matter the type of service, customer or business model.
Creating a More Powerful, More Connected Customer Experience Today’s customers demand access to the same services and products regardless of where they purchase them, whether through a website, a smartphone, a retail store or a call center. Unified 2016 includes a pre-integrated product catalogue and order management that enables a multichannel customer experience, allowing service providers to offer a consistent and compelling connected customer experience across activation, marketing, retail, self-care and customer service. This reduces costs, improves speed of delivery and increases customer satisfaction at every touch point.
Reducing Customer Churn through Automated Promotions Today’s subscribers respond more favorably to personalized offers. Unified 2016 includes a Smart Pricing module that leverages analytics-driven insights to help identify potential churn candidates. Service providers can now deliver targeted, automated marketing promotions triggered by each subscriber’s unique digital experience, sending customized and relevant offers designed to promote customer loyalty and reduce churn. In addition, service providers can use this as a tool to market new services, by providing offers for what subscribers want, when they want it.
INSIGHT / April 2016
Redknee Unified 2016 Powering the Digital Service Provider Marketing/ Promotions
Proven
Analytics/ Reporting
Processing billions of transactions, every hour of every day
Flexible
Self care
CRM
Dealer care
Order Management
Product Catalog
Wholesale Settlement
Modular, cloud based, SaaS, or on premise
Agile
Any service, any device, any type of digital transaction
Global
Payments
Multi-tenant, multi-language, multi-currency
Billing
Real-Time Charging & Policy
Fast
Real-time monetization platform engineered to deliver
Cloud/ NFV Ready To gain agility and scalability, service providers are moving to the cloud and virtualizing both IT and core network services. Unified 2016 offers increased scalability in cloud environments, regardless of the architecture, and brings to the market real-time charging and policy applications as virtual network functions (VNFs).
Automated Operations As service providers look to simplify operations, Unified 2016 offers improved scaling in and out for farms within a virtualized environment. This, coupled with automated testing and robust configuration management, greatly simplifies operational complexity and accelerated time to market.
Monetizing the Internet of Things Monetization is a critical component to leveraging the full potential of the IoT, with a recent Machina Report estimating the value at $1.3 trillion. Redknee’s monetization and subscriber management platform addresses seven key capabilities to support IoT monetization: scalability, openness, real-time flexibility, transparency, security, agility and vertical enhancements.
To learn more about Redknee Unified 2016, please contact your Redknee sales representative today or email sales@redknee.com.
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Red Perspective
Smart Pricing
Contextual, personalized offers and promotions in real-time
R
edknee’s Smart Pricing solution empowers service providers to deliver their most influential, contextual, upsell opportunities yet. Redknee’s solution goes beyond generic cross- and upselling initiatives based on physical or virtual customer touch points by using insight derived from both the network and the device. Marketing and sales teams can now deliver personalized offerings based on contextual demand of the customer. For example, an offer can be triggered based on changes in the customer’s technical infrastructure. With Redknee’s Smart Pricing solution, CSPs can motivate customers towards more valuable service usage and spending – intelligently pricing offerings and services in ways that are meaningful and attractive to the customer.
Redknee Smart Pricing Motivate customers towards more valuable service usage and spending by intelligently pricing offerings and services in ways that are meaningful and attractive to the customer. Deliver more meaningful, personalized offerings based on physical or virtual insight derived from both the network and the customer’s device.
Increase customer retention with relevant offerings that are delivered at the right time and at a compelling price point. Create a seamless customer experience using the distributed solution architecture of Redknee Unified Charging, which further accelerates the provisioning process.
To learn more about Redknee’s Smart Pricing and Unified Product Cata
Unified Product Catalog and Order Management INSIGHT / April 2016
T
Simplifying the digital customer journey
oday’s digital economy has spurred an ever-growing portfolio of new products and services for all types of communications customers. Monetizing this new digital economy requires an agile product catalog and order management system that simplifies and speeds up time to market by centralizing every aspect of product definition. Redknee’s catalog-driven BSS solution removes any limitations while opening new opportunities for building, pricing, bundling, commercializing, and delivering today’s most complex product and services across all customer segments. New and innovative offerings can be launched and delivered with the highest efficiency and accuracy with Redknee’s centralized product catalog, driving multi-channel selling, order entry, billing and order delivery. End-to-end integration of corresponding subsystems ensures new products can be launched and utilized through any touch points across the entire customer journey.
Redknee Unified Product Catalog and Order Management Cross-product and cross vertical: build, price, bundle, and launch today’s most complex product and services across all customer segments using a simple and intuitive GUI.
Support any-play offerings across any line of business, helping businesses to accelerate their growth plans and to be equipped for the future.
Cross-channel product exposure: real-time catalog access and sale from all channels, persistent web shopping cart and commerce analytics/ recommendation.
Deliver a more connected customer experience create, deliver and manage services seamlessly across any channel—web, mobile, retail store or via social media.
Increase marketing agility with contextual real-time upsell offerings across all customer touchpoints.
alog and Order Management Solution, email us at sales@redknee.com.
Red Perspective
26
Agility
The secret to competing in today’s market:
By: Chris Newton-Smith
W
hen thinking about the telecommunications sector, transformation and change come to mind. While our world has changed quickly, 2016 will likely bring even more change with technology presenting both new opportunities and challenges. The rapid adoption of new technologies has transformed many traditional markets. The telecommunications market in most countries has changed significantly as traditional players now face competition from non-traditional players, including operators from other countries, MVNO’s, and OTT providers. Consumers have also changed, voting with their wallets and feet in favor of nontraditional telecommunications products, which offer greater flexibility and better suit their individual needs. These changes have meant the traditional business model of Communication Service Providers (CSPs) needs to adapt and focus on creating new products and business models with the level of agility needed to compete. But how can a traditional player compete with these new companies effectively? Companies in the telecommunication sector often have a number of different systems, but by leveraging software
and other technology such as cloud infrastructure and Network Function Virtualization (NFV) a company can create a new agile business line with limited investment or use the technology to improve existing business units. One of the advantages of cloud-based solutions is that a CSP can take a productized, off-the-shelf solution that they can use in their business immediately. For example, to enter a new market, launch a new brand, or enable an MVNO. The solution is ready and available in the cloud, which means the CSP can see how it works before starting the project, and can set up and be in production quickly. Utilizing cloud-based solutions is a progressing trend, as seen in the uptake of our Redknee Cloud offering, where we are supporting more and more MVNO’s and providing MVNE services, especially across the Americas. We recently announced our continued support to a North American Tier 1 operator’s MVNE strategy. With our cloudbased MVNE solution the operator is able to implement its customer engagement strategy, focusing on encouraging online or community based support and reducing the use of more costly traditional customer care solutions. The Redknee cloud-based converged billing and customer care platform provided a leading Tier 1 national operator in the
Americas with the agility to launch a new brand in just five weeks. And, our fully managed cloud-based converged billing and customer care software-as-a-service offering is supporting EcoMobile with the agility of fast time-to-market and a low-risk investment strategy, to increase market share and drive differentiation and innovation in a competitive environment. The benefits of implementing cloud and virtualization technologies allow CSPs to separate application workload from the underlying infrastructure – servers, storage and networks – helping to create additional flexibility. Such a structure enables resources to be reassigned depending on the needs of the business. For example, sporting events, religious festivals or holidays can change consumer behavior, cloud and virtualization technologies can help assign more resources to a particular part of the business for a set period of time to help overcome high demand periods of time – creating greater business agility. Another advantage is the ability to reduce the number of servers and IT infrastructure required to support operations, while limiting the effect of potential server failure resulting in a more reliable service. When we talk of agility it refers to the ability to quickly adapt the business in order to compete, this may include
INSIGHT / April 2016
adopting or evolving certain product or service lines and even the business model, but this is not all. The use of data has become increasingly important and true agility requires the use of data to create insight and competitive advantage. For example, without the use of data it would be impossible for a CSP to accurately target its campaigns for the best results. The ability to use data to tailor marketing campaigns and materials or provide front line customer service staff with the ability to offer customers a ‘special deal’ to encourage loyalty is a game changer for the industry. This elevates and personalizes the level of service received and often creates an important differentiator in a competitive environment. In the future competitive CSPs will continue to face mounting pressures, including infrastructure upgrades, competitive pressures and changing consumer behavior from the adoption of new technology, but CSPs are also well positioned to take advantage of this opportunity. CSPs capture a wealth of information that can be utilized through analytics, cloud and virtualization technologies to modify their business model, products and services and go to market strategy to gain competitive advantage and differentiate themselves against competitors both now and in the future.
Awards and Recognition
28
INSIGHT / April 2016
Redknee Shortlisted for three Smart Energy Awards The Smart Energy UK and Europe Summit’s Smart Energy Awards celebrate achievements in intelligent energy solutions from international utility and service providers. The awards recognize excellence in innovative new technologies and service offerings in the energy sector. In November of 2015, Redknee was shortlisted for 3 out of a total of 11 prestigious awards. Redknee was nominated for the Service Provider Award, the Smart Grid Network and Communication Award, and the Smart Meter Data Management and Solutions Award.
Redknee in the Energy Sector From Papua New Guinea to the Philippines, Redknee’s solutions offer real-time charging and billing for utilities, and are helping the energy sector to become more connected. In Papua New Guinea, Redknee partnered with Digicel to implement “Easipawa Easypay”, a service allowing customers to purchase electricity from their mobile device and make payments in real time. In the Philippines, Redknee worked with Meralco to launch prepaid energy services, enabling customers to purchase energy in the amount that best suits their budget and required use. It also increased access to information, including via a mobile device, which ultimately increased accessibility and transparency. Redknee recognizes the importance of using data and technology in product development and customer care. Redknee’s partnership with Elster created a comprehensive energy solution, combining a prepaid energy product leveraging smart meters with real-time billing and improving customer satisfaction. These are just a few examples of how Redknee’s real-time monetization software and customer care capabilities have created a unique opportunity for energy providers to create dynamic business models, support innovative new products and services and increase profitability, while improving usability and customer satisfaction. Redknee’s solutions will continue to have a defining role in the energy industry in the years to come.
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Red Perspective
Real-time Monetization
T
of the Digital
oday, value added services are fast becoming an integral part of the Internet of Things (IoT) ecosystem – especially in the digital home. According to Parks Associates, a leading analyst firm for consumer markets, currently 16% of U.S. households have at least one smart device, such as smart sensors, lighting, and door locks with the trend showing no signs of slowing. As these connected home ecosystems come online and expand beyond entertainment to include areas such as home energy, security, home health and home automation, the conversation about monetization is not far behind.
Monetizing the digital home The digital home ecosystem is comprised of a variety of sensors, devices and applications. As smart home strategies begin to take shape, a key element is the ability to provide customers with a single bill—one that integrates all services, be it traditional or IoT-centric. Redknee’s Connected Suite is a cloud-based platform that enables new revenue while delivering realtime billing for any transaction type— be it subscription-, event- or usagebased—in order to help create value
and a unique differentiator for all types of IoT environments, including the digital home ecosystem. Quickly create innovative pricing models as well as offer incentives and rewards that drive loyalty, retention and new customer engagement. With Redknee’s Connected Suite, end users can subscribe to new services online, receive notifications and access information about subscription, usage and consumption fees, in real-time, using a smartphone or other connected devices.
Use case: real-time billing for intrusion detection Using home security as an example, a home owner receives a notification from her smart home app informing
Home By: Stefan Henss
her that a window has been opened, indicating a possible intrusion. Since the home owner is away on holiday, she is alarmed and uses her smart home app and selects the ‘Security Check’ feature, which immediately notifies a local security company to dispatch an officer to secure the home’s premise. As soon as the ‘Security Check’ feature is selected, the home owner automatically sees a 20€ fee applied to her account. Redknee’s IoT monetization solution works behind the scenes to quickly enable this real time event-based billing scenario while providing the back-office functionality to easily configure product offerings and pricing plans.
Step 1
Home owner receives notification that a window has been opened.
INSIGHT / April 2016
Step 2
Step 3
Home owner uses the security check feature on her smart home application to notify local security company.
Home owner sees a €20 charge automatically added to her bill.
Schedule a demo Redknee’s flexible and scalable IoT Monetization solution helps to quickly monetize digital services and deliver bundled offers and promotions across the entire IoT ecosystem. For more information about Redknee’s Connected Suite solution or to schedule a demo, contact sales@redknee.com.
GUI for Product Configuration
Solution Specs ›› Name: Redknee Connected Suite ›› Description: A single platform with standards-based APIs for integration into any IoT application that delivers real-time rating, charging and billing ›› Features: >> Innovative price plans
>> Partner billing and settlement
>> Subscriber analytics
>> Real-time, dynamic charging
>> Online, integrated billing
>> Customer self-care
Deployment options: on premise, cloud or as-a-Service
Outside Perspective
32 that a monetization platform needs to be flexible and agile to meet the needs of the client while offering the end-user a personalized experience.
Attributes Needed to Succeed in IoT By: Stefan Henss
T
o be successful in IoT it will be important to understand how to monetize this opportunity. For service providers, delivering and evolving new business models to generate revenue will bring more complex monetization requirements. Competitive service providers will need a sophisticated monetization solution to rate, charge and bill for every digital transaction across today’s connected world and then they will also need a system to support the customer throughout the entire experience. Powered by Redknee Unified, the Redknee Connected Suite enables service providers to manage demand and attract customers by offering real-time engagement and interaction that promotes a superior customer experience and supports the monetization of the IoT opportunity. Redknee understands the monetization requirements differ for each organization and product type, and
In a recent paper commissioned by Redknee “Successful Monetization of the IoT will bring a $1.3 Trillion Reward”, Machina Research outlined the substantial opportunity the IoT represents for enterprises to develop new business models and realize new revenue streams, but there is a significant amount at risk from not having the right tools to realize the opportunity. The report identified seven key capabilities needed to support IoT monetization. Redknee’s monetization and subscriber management platform addresses these capabilities:
1. Scalable – The scale of the
Internet of Things will be enormous, with billions of devices performing trillions of events. The network effects of even small numbers of devices in a modest deployment and interacting with numerous other IoT implementations are potentially substantial. As a result, scalability is critical. Any monetization system for the IoT must be proven as highly scalable, which means almost inevitably using a cloud-based software-as-a- service (SaaS) model. Using SaaS-based platforms is increasingly becoming the default for IoT application development and associated functions, simply due to the speed of development and ease of deployment enabled by using these building blocks.
2. Open – No single company can deliver the Internet of Things and cooperation within the ecosystem is essential. Platforms will be multi-tenant, business models will
INSIGHT / April 2016
3. Real-time – The IoT will be real-
time. One of the reasons for tracking remote assets is to be able to act immediately, making real-time rating and billing services critical to any service offering. Certainly there will be a shift from offline and periodical bill cycles to real-time billing. Thinking beyond this, data analysis and communication between devices will result in the ability to react in real-time, with implications for monetization and the nature of new services e.g. dynamic pricing in vending machines, time- based rental of equipment and machinery, or even of public transportation. When you get deeper into the intricacies of the IoT, the real-time requirements become even more pronounced. We may be charging for data based solutions and services but this will depend on how up-to-the minute the data is, making timeliness a critical billing factor. Overall, fully monetizing the IoT requires real-time actions across several steps: >> Reading of devices and processing of events >> Managing and analyzing data >> Acting on data at devices (communicate with end-user) >> Trigger customer interactions or provide intelligence (buy now, share, show results, etc.)
4. Flexible – Any IoT monetization
platform must be able to deal with different models, as well as possible
‘‘
‘‘
be multi-sided, and data sharing between multiple parties is implicit. In this multi party world of the IoT, openness, interoperability and standards will be all-important, including open APIs.
In essence, the IoT is a partner ecosystem that requires sharing data from diverse sources between diverse users.
demand from different sectors. The platform has to be able to cope with constantly evolving business models incorporating any conceivable (and many not-yet-conceivable) subscription, usage-based, behaviorbased and ad-funded models. Monetization approaches to the IoT have tended to focus on established ways of working. But the IoT opens up endless possibilities, many of which are unpredictable today, so the platform needs to be able to cope with all these. Additionally, it needs to be able to deal with a much shortened, if not constant, product development cycle.
5. Transparent and secure –
In essence, the IoT is a partner ecosystem that requires sharing data from diverse sources between diverse users. The interplay between those partners, in terms of multi-sided business models, will be complex. Any monetization model must allow for total partner transparency while ensuring data security.
6. Agility – The IoT will usually
integrate with wider business processes, so any monetization platform will need to handle that integration. Businesses will be increasingly built on servitization models, where the IoT permeates the entire business process, and the way in which monetization occurs is likely to change. For instance, there could be much more substantial integration of settlement occurring during any business process, rather than
having a single transaction at point of completion. Retailers may bid in real-time for manufacturing capacity allocation for their product line rather than simply waiting for the box to emerge from the factory gate. These types of models make for a much more complex challenge.
7. Vertical understanding – All IoT use cases are different (often radically so), so there is no generic one-size-fits-all answer to monetization. As a result, it is critical to have a good understanding of the specifics of the verticals, to ensure the monetization tools are appropriate. While the system should be service agnostic, it’s still valuable to understand the requirements of the verticals to be sure of meeting them most effectively. And it’s not just about understanding, it’s also about being able to plug into verticalspecific back office systems, e.g. Enterprise Resource Planning (ERP). The IoT future ultimately promises billions of devices, trillions of events, everything-as-a-service, real-time data analytics, constant feedback loops from customers, complex data brokering, and completely new business models, amongst other things. In that world, all of the above features are critical parts of an IoT monetization platform. To learn more, go to http://goo.gl/lW2JsL to read the full report “Successful Monetization of the IoT will bring a $1.3 Trillion Reward”.
Outside Perspective
34
INSIGHT / April 2016
The Monetization M
Revolution
onetization is important for every business, without the ability to monetize businesses would not be able to bill, charge and collect revenues for their products and services. In the age of connectivity, connected devices offer significant opportunity prompting many businesses to look at new ways of generating improved services and revenues, while creating greater value for the customer. The connected world, and the Internet of Things, is bound to change our world for this very reason. Companies will increasingly use data in more advanced ways, including the tailoring of services across their customer base to increase customer satisfaction, business value and brand equity. As consumers adapt to a world of connectivity, this is bound to lead to fierce competition amongst providers especially as non-traditional players enter traditional markets or create new markets all together. In the fact of strong competition, service providers with the ability to offer products that make life easier and more efficient for customers will win – but only if they can be monetized. As connectivity brings greater connections between consumers and companies, many new offerings will be based on alliances that use third-party services to complement their own services. To monetize such service offerings, providers will require a strong, agile and flexible monetization platform. This will be critical for those wanting to grow their business in the connected world.
To accommodate new and innovative service offerings, companies require a monetization solution that is flexible and agile enough to monetize any number of service combinations and a platform that can be easily scaled to the size of the customer base. It will be important to learn from those in other sectors so they can implement the best possible solutions and quickly adapt to market conditions. For example, Redknee has experience serving the telecommunications sector - a fast paced industry that has long required significant scalability and flexibility in its monetization platforms to a vast array of services and offerings for different subscriber groups and even individuals. Redknee clients have already benefited from this experience with many now looking to monetize new, innovative and next generation services. Examples of this can be seen across different sectors, including in the automotive sector where Redknee supports BMW with the monetization of services as part of its Connected Drive platform. In the energy sector, Redknee is helping support new business models based on prepaid energy and more flexible billing solutions for energy customers which has revolutionized and increased energy accessibility in the Philippines. As other companies increasingly create new and innovative service offerings for their customer base, the monetization platform installed will be critical in defining success both now and in the future. This will ultimately become the monetization revolution.
Red News
36
Redknee and Wipro Enter Strategic Partnership to Address the Digital Telco Evolution Redknee and Wipro signed a Memorandum of Understanding (MoU) to help service providers unlock the value of their business toward digital transformation services, the connected world and the Internet of Things (“IoT”). The partnership includes co-development of digital BSS solutions starting with the pre-integration of the Redknee BSS portfolio into the Wipro RAPIDS suite.
Redknee Awarded a Multi-Year Contract to Support Turk Telekom with the Launch of New Services Redknee announced the signing of a new multiyear expansion of services contract, including licenses, support and other consulting services, with Turk Telekom, a leading mobile operator in Turkey with over 17 million subscribers. Leveraging Redknee’s real-time monetization and subscriber management software, Turk Telekom is supported to launch new LTE services over the coming months.
Redknee inaugurates its Bangalore Office On 23 March 2016, Redknee inaugurated its office in Bangalore, India. The new office in Bangalore offers a larger and more modern work space for Redknee employees and a convenient and more comfortable location from which we can serve our customers.
INSIGHT / April 2016
Redknee Launches Latest Release of Redknee Unified At Mobile World Congress 2016, Redknee announced the launch of Redknee Unified 2016, the latest release of its end-to-end real-time monetization software solution. Coinciding with the transforming Telco industry where CSPs are evolving into DSPs, new features of Redknee Unified 2016 include, monetizing anyplay services, creating a more seamless customer experience, Cloud / NFV ready, automated operations, monetizing the Internet of Things, and more.
Dutch National Railway Increases Reliability in Network Communications with Redknee GSM-R Solution ProRail, the Dutch railway infrastructure operator has launched the latest version of Redknee’s Intelligent Network (IN) solution for GSM-Railway (GSM-R). The next generation Intelligent Network (ngIN) solution integrates seamlessly into the network infrastructure, delivering value-added (VAS) capabilities and providing Railway Network Operators’ (RNOs) with enhanced operational safety, ease of use and the flexibility to deliver a high quality railway communications system.
Redknee Connected Suite Addresses $1.3 Trillion Opportunity for Monetizing the Internet of Things The launch of the Redknee Connected Suite, a software platform designed to help businesses capitalize on the monetization opportunities related to the Internet of Things (IoT), addresses the USD $1.3 trillion opportunity highlighted in a recent whitepaper by Machina Research. The paper emphasizes that companies can generate revenue if they have sophisticated monetization capabilities like those provided by Redknee’s Connected Suite.
Beyond the Buzz
38
Conversational Interfaces
Powerful speech technology from China’s leading Internet company makes it much easier to use a smartphone.
TechnologyReview https://goo.gl/0n1gBy
Bosh looking to smart devices to get ahead in the cloud Bosh is taking on U.S. technology rivals by launching its own “cloud” computing network to connect up anything from cars to dishwashers via the Internet.
Reuters http://goo.gl/X97zcS
INSIGHT / April 2016
Google Maps goes beyond Uber, adds Ola, Hailo and more car services to its app Google reportedly is working on building its own Uber competitor, and some believe this will come in the form of a fleet of autonomous cars.
TechCrunch http://goo.gl/CpgYhW
Hospitals Use Cloud Computing Technique to Fight Infectious Diseases Providers have volumes of data in electronic health records, but struggle with how to bring that information to bear to improve patient care.
Health Data Management http://goo.gl/FcYm0H
Red Locations
40
ROME
INSIGHT / April 2016
K
nown as the “Eternal City”, Rome is one of the most historic cities in the world, and home to some of the most recognizable landmarks. With plenty of museums, fountains, churches, palaces and monuments, it is one of the most visited places in the world. An exciting and important destination for tourism, Rome is also a major European and international financial, cultural and business center, providing industrial services in areas including technology, IT, aerospace, defense, construction and communications. Rome is part of a vibrant mobile market that is set to receive a multi-million Euro investment to ensure super fast broadband connectivity for all Italians by 2020. As well as Government funding, Telco operators are also investing in and developing 4G and LTE infrastructures and services to benefit all users. The importance of investment, development and innovation are demonstrated by Redknee’s office in Rome, which provides ongoing support, services and software to customers across the region, including one of the largest Tier 1 operators in the country. To learn more about Redknee’s presence in Italy, please visit www.redknee.com
Redknee Events
42
APRIL 2016
5-6
Policy Control Conference Berlin, Germany
APRIL 2016
28
(11 AM ET)
Light Reading Webinar Are You Ready for the Digital Customer Journey? http://goo.gl/4xu5Xk
INSIGHT / April 2016
MAY
2016
9-12 TM Forum Live 2016 Nice, France http://goo.gl/9GscE7
MAY 2016
17-18 MVNO Industry Summit LATAM Mexico City, Mexico http://goo.gl/N2UKXq
Redknee Corporate Headquarters 2560 Matheson Boulevard East Mississauga, Ontario Canada L4W 4Y9 Tel: +1 905 625 2622 Fax: +1 905 625 2773 www.redknee.com