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© Current Analysis Inc. All rights reserved. Follow Current Analysis Washington DC / London / Paris Outsmart Your Competitors February 2012 Presented by: Jason Marcheck Director, Custom Research [email protected] Customer Experience Management Survey: Operator Strategies and Purchase Horizons

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Page 1: Current analysis   cem survey - feb 2012 - final

© Current Analysis Inc. All rights reserved.

Follow Current Analysis Washington DC / London / Paris

Outsmart Your Competitors

February 2012 Presented by:

Jason Marcheck Director, Custom Research [email protected]

Customer Experience Management Survey: Operator Strategies and Purchase Horizons

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Introduction to the Issue and Survey Design

This research was commissioned by Current Analysis to better understand the key considerations of operators in the implementation of CEM solutions and to help infrastructure vendors achieve differentiation in their portfolios and propositions.

Key issues explored:

Clarify operator interest in CEM solutions across North America and Europe

Discover operator strategies, preferences, and barriers for adopting CEM solutions

Assess the level of importance operators have assigned to the adoption of a CEM solution and establish a level-set of current capabilities

Identify product capabilities suppliers should develop to meet customer requirements and exceed competitor capabilities

Identify operator perception of CEM solution vendors

76 interviews were conducted (online and by telephone) during December 2011 and January 2012

Respondents come from a total of 76 distinct service providers

All respondents involved in operations, network technology or marketing

3

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Key Finding #1: Operational Challenges Key to CEM Implementation

5

Respondents cite “organizational challenges” as the most prominent barrier to the successful adoption of a CEM solution.

Yes 45%

No 55%

Is there one person in your company responsible for overseeing CEM?

% of respondents, N=76

3.57

3.45

3.43

3.34

3.32

3.2

Organizational challenges

Cost to replace existing OSS/BSS systems

Uncertain ability of CEM system to gather real-time insights

Difficulty in correlating data from different sources in a timely manner

Multi-vendor solutions create barriers to implementation

Low priority in relation to other upgrades

Rank the following barriers to the adoption of a CEM solution

1=Low Difficulty, 5=High Difficulty Mean Response, N=76

... At the same time nearly half of all respondents say that a single individual in the operator’s organization is responsible for CEM oversight.

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Key Finding #2: Operators View Customer Care as Priority

Operators still consider the resolution of trouble tickets and preventing subscriber churn as the chief objectives of CEM. However, monetization ranked high as a priority, suggesting that while CEM efforts are still focused on “blocking and tackling”, operators do see the value of CEM as a revenue generating tool.

6

4.18

4.07

4.07

4.03

3.79

3.76

3.72

3.71

3.66

Reduce churn/increase …

Improve trouble Call response

Generate new revenue

Identify highest value customers

Track network and service performance

Quickly evaluate effectiveness of new …

Bring TDM predictability to IP …

Track devices using network

What are major objectives of CEM adoption 1=least important; 5=most important

Mean Response; N=76

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Key Finding #3: Inconsistencies Related to Personalized Services

Though operators place a high priority on matching up customers with personalized services...

7

…they don’t view the tools required to deliver that personalization as primary to CEM.

4.21

4.17

3.84

3.72

CEM is about the quick resolution of customer care issues or preventing them

from happening

CEM is primarily about getting the right customers the right services at the right

time

CEM is about gaining knowledge on network conditions and taking action to

resolve issues

A major priority of CEM is to identify your most valuable customers and cater

services to support those customers

Do you Agree or Disagree with following statement?

1=strongly disagree, 5=strongly agree means/responses, N=76

4.30

4.25

4.17

4.09

4.05

3.97

3.82

3.79

3.76

3.74

3.74

3.51

Customer care

Customer relationship management

Billing/Charging

OSS

Subscriber Data Management

Network Management

Policy Control

Service Delivery Platform (SDP)

Applications Management

Device management

Analytics

Deep Packet Inspection

Most important components of CEM solution?

1=least important, 5=most important mean responses, n=76

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Key Finding #4: Fixed-Only Operators Trail Mobile and Converged

In addition to being less aggressive than mobile and converged operators in centralizing CEM oversight...

8

… Fixed operators are not as far along as mobile & converged in assembling CEM solution.

36% 49%

64% 51%

Fixed Mobile & Converged

Is there one person responsible for CEM oversight? % of respondents

Fixed N=25, Mobile & Converged N=51

No

Yes

52% 67%

48% 33%

Fixed Mobile & Converged

Does your organization possess most of the components of a CEM

solution? % of respondents

Fixed N=25, Mobile & Converged N=51

No

Yes

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Key Finding #5: Operators Plan to Work With Best of Breed Suppliers

Nearly half of all respondents have plans to work with multiple vendors to construct a CEM solution that will be run by an in-house team; similarly only 22% indicate that they wish to work with a single integrator to build their CEM solution.

9

49%

22%

20%

9%

Work with multiple suppliers and build a CEM system in-house

Contract with a single systems integrator to construct a CEM solution

Already have one in place

Outsource construction and operation of a CEM solution to a third party

Which best describes your CEM adoption strategy? % of respondents, N=76

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Demographics: Operator Type and Region

The survey included respondents from fixed (N=25), mobile (N=5) and Converged (N=41) operators. Converged operators are those with both mobile and fixed assets

Due to the small sampling of mobile-only operators, survey findings related to operator type are often presented in two categories, fixed and mobile & converged, which combines respondents from the mobile and converged categories into a single group

11

Fixed operator 33%

Mobile operator

7%

Converged operator

60%

Which of the following best describes your company?

% of respondents, N=76

North America 33%

Europe 67%

Indicate the continent in which your country is located

% of respondents, N=76

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Demographics: Role within Organization

12

Of the 76 respondents, 23 indentified themselves as CEO or president, 14 identified themselves as being part of the technology organization, 16 as being part of the marketing organization, 22 as being part of the operations organization and one as being in procurement

1%

29%

21% 18%

30%

Which best describes your role in the organization

% of respondents, N=76

Network Planning: Procurement

Network Planning: Operations

Corporate Executive: Marketing

Corporate Executive: Technology

Corporte Executive: CEO/President

30%

70%

Which best describes your the functional area of your job

% of respondents, N=76

Network Planning

Corporate Executive

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CEM is Currently Strongly Identified with Network Operations

The selection of Operations by 75% of survey respondents indicates that IT portion of the operator network the value of CEM is still viewed widely as an operational tool

Accordingly, the fact that less than half of all respondents consider marketing organizations as part of a CEM solution indicates a hurdle that vendors need to overcome in conveying a holistic value proposition

Strong association between CEM and Operations/IT could also explain the inclusion of Billing/Charging and customer care by large majorities of respondents as being part of a CEM solution

Operations/IT bias notwithstanding, approximately half of operators see Marketing as a key aspect of its CEM strategy

Fixed

Operators

Mobile &

Converged

Operators

Selected marketing as

being an organization

involved in operator’s

CEM strategy 52% 45%

Key Takeaway As reflected throughout this survey, operators still associate customer satisfaction with service fulfilment, accurate billing and rapid service disruption resolution. The monetization-oriented benefits of CEM, which are related to the operator’s network infrastructure and marketing teams, are not yet obvious to all operators

14

75%

68%

66%

51%

47%

8%

Operations

Billing/Charging

Customer Care

Network

Marketing

Other

Which business units in your organization does your CEM strategy involve?

% of respondents, N=76

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Operators Still See CEM as Providing Problem Resolution Role

That respondents found customer care issues to be the most important outcome of the adoption of a CEM solution is consistent with the general findings of the survey

Respondents also strongly agreed with the statement that CEM was about matching up subscribers with the proper services at the proper time. While other portions of the survey don’t support the view that monetization as a high priority, the concept of CEM as matching services to customers appears to be taking hold

CEM, relative to other functions, surprisingly was not viewed as having value as an identifier of high-value customers

Key Takeaway Respondents envision CEM as primarily a means to help subscribers resolve or avoid service performance issues. Operators see CEM as largely being a vehicle for making sure subscriber problems are resolved rapidly or prevented. It also seems true that while operators see the role that CEM can play in services delivery strategies, CEM suppliers will need to convince operators of the full value CEM can provide with respect to targeting subscribers with attractive service options and personalization.

15

4.21

4.17

3.84

3.72

CEM is about the quick resolution of customer care issues or preventing them

from happening

CEM is primarily about getting the right customers the right services at the right

time

CEM is about gaining knowledge on network conditions and taking action to

resolve issues

A major priority of CEM is to identify your most valuable customers and cater

services to support those customers

Do you Agree or Disagree with following statement?

1=strongly disagree, 5=strongly agree means/responses, N=76

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Constructing a CEM Solution is Not the Top Priority of Operators

Construction of a comprehensive CEM solution finished fourth, in terms of top priorities for operators, beneath reducing OpEx, optimizing OSS and an all-IP transformation

Even though it finished fourth in this particular popularity test, constructing a CEM solution still finds plenty of support, with a mean score of 3.7

CEM as part of a new technology introduction received least interest despite association with high priority technology roll-outs like IMS and LTE

European operators consider CEM more of a priority than North American operators – see below

North

America Europe

Mean score (1-5) when

asked about importance

of constructing CEM

solution 3.32 3.88

Key Takeaway CEM solution providers need to promote the adoption of a CEM solution as being logically concurrent with other major operator agendas, such as OSS optimization. In addition, CEM solution providers should stress the OpEx benefits of CEM.

16

4.08

3.99

3.88

3.70

3.61

Reducing OpEx

Optimizing OSS

All-IP Transformation

Comprehensive CEM Solution

New technology/architecture adoption

Interest in the following major projects? 1=very low, 5=very high mean response, N=76

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Churn Reduction Viewed as Major Objective of CEM Solutions

Given that retaining customers is fundamental to operator survival, churn reduction is seen as the chief objective of CEM solution adoption

Though “generate new revenue” scores high as a major CEM solution objective, other findings – such as identifying high value customers, using CEM as a marketing engine, etc. – that score low indicate that operators recognize the need to generate more revenue, they are still struggling to fully grasp the particulars of the role that CEM can play in enabling increased revenue generation

Given that operators in 2012 will intensify their struggle with OTTs for supremacy as communications service providers, the fact that differentiation from OTT players ranked somewhat low in terms of CEM solution objectives indicates a lack of operator focus on the OTT threat

Key Takeaway The fact that operators recognize the importance of CEM as a driver of new services is encouraging. However, it appears that they lack the understanding of the manner in which CEM can be utilized to increase revenue. This presents a clear challenge and opportunity for vendors to do a better job of articulating the comprehensive value that holistic CEM solutions can bring to the table.

17

4.18

4.07

4.07

4.03

3.79

3.76

3.72

3.71

3.66

Reduce churn/increase loyalty

Improve trouble Call response

Generate new revenue

Identify highest value customers

Track network and service performance

Quickly evaluate effectiveness of new offerings

Differentiate services from competitors/OTT

Bring TDM predictability to IP network

Track devices using network

What are the major objectives of CEM adoption 1=least important; 5=most important

Mean Response; N=76

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Fixed and Converged Operators Have Different CEM Objectives

Although the differences in the CEM objectives of fixed and converged operators were relatively small, the two groups had significantly different views of the importance of identifying high-value customers.

18

4.12 4.08 4.20

3.44

4.52

3.76 3.64 3.64 4.04 4.22 4.06 4.00 3.96 3.78 3.76 3.76 3.67 3.55

What are major objectives of CEM adoption? 1=least important; 5=most important

Mean response; Fixed: N=25, Converged N=51

Fixed

Converged

Key Takeaway Up sell opportunities for services consumed via fixed networks (i.e., higher downlink speeds, premium TV content, etc.) tend to be more subscription oriented than mobile services (i.e. Music downloads, ringtones, etc.). Vendors need to emphasize the value of CEM as a tool for managing transactions to help mobile operators see monetization benefits of CEM solutions

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Organizational Challenges Seen as Biggest Adoption Obstacle

Respondents consider overcoming organizational issues as being the most difficult CEM adoption barrier to hurdle

The fact that the top three barriers seemingly address three different challenges – organizational issues, cost issues, and technology issues – indicates that there is no “silver bullet” for vendors to use that will demonstrate the value proposition for a comprehensive CEM solution

The survey’s findings that respondents do not consider the “Difficultly of correlating data” to be a major barrier may be the result of respondents indicating elsewhere in the survey that they don’t consider this operation to be a major component of CEM

European carriers see organization issues as a bigger barrier to adoption than North American operators – see below.

North

America Europe

Mean score (1-5) when

asked if organizational

issues represented a

major barrier to adoption 3.24 3.73

Key Takeaway Not surprisingly, operators see organizational issues as having the biggest impact on CEM solution adoption. Broadly, operators tend to see CEM as related to IT and operations and see difficulties in extrapolating it across other businesses in the organization.

19

3.57

3.45

3.43

3.34

3.32

3.2

Organizational challenges

Cost to replace existing OSS/BSS systems

Uncertain ability of CEM system to gather real-time insights

Difficulty in correlating data from different sources in a timely manner

Multi-vendor solutions create barriers to implementation

Low priority in relation to other upgrades

Rank the following barriers to the adoption of a CEM solution

1=Low Difficulty, 5=High Difficulty Mean Response, N=76

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Service-Layer Attributes are Surprisingly Ranked Low in Priority

Consistent with the strong association of CEM with operational components of the organization, operators consider customer care and CRM, two traditional IT stalwarts, to be the most important pieces of a CEM solution

Oddly, the CEM components that primarily provide operators with information about users, their devices and the services they are access on the network, rank the lowest in terms of importance to a CEM solution

With a substantial spread between N. American and Europe opinions on and analytics and DPI (see below), operators in N. America appear to be dismissing two rich sources of information about network activity and subscriber preferences

Key Takeaway If the seizing of monetization opportunities defines the second evolutional wave of CEM solutions, operators have yet to embrace that aspect of a CEM solution. Components that are most responsible for providing personalized and targeted services, such as policy control, analytics and DPI equipment, are ranked low by operators. Vendors need to seize the opportunity to educate their customers on these points.

20

4.30

4.25

4.17

4.09

4.05

3.97

3.82

3.79

3.76

3.74

3.74

3.51

Customer care

Customer relationship management

Billing/Charging

OSS

Subscriber Data Management

Network Management

Policy Control

Service Delivery Platform (SDP)

Applications Management

Device management

Analytics

Deep Packet Inspection

Most Important Components of CEM Solution?

1=least important, 5=most important mean responses, n=76

North America Europe

DPI 3.00 3.76

Analytics 3.28 3.96

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Churn Prevention is Key Measurement of CEM Effectiveness

Strangely, operators put a low priority on application and service performance, which appears to contradict the priority placed on churn prevention. Operators apparently see customer satisfaction more as a measure of network performance that the quality of the subscriber experience.

No surprise that most operators believe the most important evidence of a CEM solution’s effectiveness is the retention of customers.

The low ranking of the ability to gauge the effectiveness of a new campaign reinforces findings suggesting a low awareness for the monetization-aspects of CEM among operators.

Importance of campaigns and service performance differ by job position – see below.

Key Takeaway CEM solution vendors still need to educate operators on the importance of ensuring that subscribers have a quality experience with the services and applications that run over their network. Similarly, vendors need to help operators understand that service performance play into churn; customers will be less likely to churn if the network is up and running and all problems are resolved in a timely manner.

21

CEO Technology Marketing Operations

Effectiveness of new

campaigns (mean) 4.13 4.0 4.38 3.5

Application/service

performance (mean) 4.0 4.21 3.81 3.68

4.47

4.21

4.13

3.96

3.96

3.89

Customer retention

Reduction of trouble calls

Ability to access the network

Effectiveness of new campaigns

Service Activation

Application/service performance

Rate the most important KPIs related to CEM

Mean of responses, 1=very low, 5=very high

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Device Data Ranks Near Bottom as Source of Customer Insight

Operators oddly selected billing related information as being the most important source of customer insight

Device information is also oddly at the bottom of the ranking, especially given the impact that the flourishing of smart phones and tablets have had on network performance.

With the exception of contextual data, nearly all other sources of customer insight are ranked similarly, an indication that operators have yet to form conclusive opinions on the relative importance of various information types

The appearance of contextual data at the bottom of the list is indicative of the disassociation that operators apparently hold between CEM and opportunities to seize on revenue-generation events.

Key Takeaway

The generally high ranking of all sources of information support the notion that operators are looking for a comprehensive view of the subscriber experience. This demonstrates an opportunity for CEM solutions vendors to educate operators the value of pre-rollout consulting engagements to demonstrate the relevance of each information source. In doing so, vendors have an opportunity to differentiate their consulting offers.

22

4.22

4.17

4.16

4.08

4.07

4.07

4.05

3.84

3.49

Customer Care Data - Billing Related

Subscriber data

Customer Care Data - Tech Support …

Network performance data

Service data

Payment data

Service ordering and activation data

Device data

Contextual data (location, etc.)

Rate the following sources of customer insight in terms of a CEM solution

mean of responses, 1=least important, 5=most important, N=76

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Operators Value Automation and Timeliness over Holistic Attributes

Of eight characteristics of a CEM solution, operators, by a significant amount, felt “automation” to be the most important.

Interest in Proactive resolution indicates an opportunity for vendors to demonstrate the value that Analytics can bring to a CEM solution

With “seamless” and “holistic” falling at the bottom of the importance ranking, operators apparently understand the value of acting on customer data, but not in viewing that data in a holistic manner.

Key Takeaway Operators seem to have yet to fully buy into the value of some the most recent advances in CEM, which are tied to harnessing the power of information about the user experience. However interest in attributes such as Proactive data indicates that vendors have the opportunity to educate operators on the tangible value to key aspects such as Analytics capabilities.

23

4.26

4.18

4.09

4.04

3.96

3.95

3.93

3.86

Automated

Proactive

Timely (i.e., real-time data)

Cross organizational

Interactive

Predictive

Seamless (i.e., enabling correlation of data)

Holistic

Most important attributes of a CEM solution?

Mean of responses, 1=least important, 5=most important, N=76

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Operators Feel They Possess Most Components of CEM Solution

24

Key Takeaway Presently, most operators hold the view that CEM needs to plug back into the CRM function. The low scores for DPI and policy control are likely to be more indicative of the fact that operators don’t see these elements as being important components of CRM. In turn, vendors need to take the opportunity to articulate the business value of DPI, policy control, etc.

62%

38%

Does your organization possess most of the components of a CEM

solution? % of respondents

N=76

No

Yes

58%

43%

36%

33%

33%

32%

29%

28%

26%

26%

25%

20%

CRM

Customer care

Billing/Charging

OSS

Network Management

Analytics

SDP

Applications Management

Device management

SDM

Deep Packet Inspection

Policy Control

Which CEM components do you need to purchase or update? % of respondents, N=76

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Operators View a Mix of Factors as Key CEM Cost Drivers

Overall, operators expect that the cost of the adopting of a CEM solution will be mix of product, operations and services costs

Per the chart below – and as expected – it seems clear that technology execs are much more focused on product costs than their marketing and operations counterparts

Survey’s lack of procurement respondents limits real insight into this issue

Key Takeaway

The even split in expectations between services and product expenses indicates that operators potentially view both aspects of CEM adoption daunting. If so, then the CEM vendor mandate is to demonstrate how adopting comprehensive CEM solutions product cost synergies that might not be so easily realized via piecemeal introductions of CEM components over time.

25

Technology Marketing Operations

Products represent the

biggest CEM solution

adoption experience. 86% 31% 32%

49% 40%

53%

51% 60%

47%

Overall Fixed Converged

Product costs are the biggest expense associated with adoption of a CEM solution

% of respondents, Overall: N=76, Fixed: N=25, Converged: N=51

FALSE

TRUE

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Operators, Especially N. AM, View CEM Solution as In-House Project

Nearly half of all respondents say they plan to construct a multivendor CEM solution, managing the project internally. This is consistent with views expressed elsewhere in the survey indicating that operators in general believe they already posses most of the components for a CEM solution.

The 22 percent of respondents that plan to work with a single systems integrator represent a sizeable opportunity for CEM solution providers that are capable of overseeing a multi-vendor project.

Key Takeaway These finding indicate that while many of the largest vendors are pitching the value of “end-to-end” CEM capabilities, the reality is that half of operators will be looking to use multiple partners. For smaller vendors, this means ensuring to articulate the interoperability of their solutions. For larger vendors, articulating their SI capabilities will be key to demonstrating the value they can serve in a prime integrator role.

26

North

America Europe

In-house construction 72% 37%

Single system integrator 20% 24%

Already have CEM 8% 25%

Outsource to 3rd party 0% 14%

49%

22%

20%

9%

Work with multiple suppliers and build a CEM system in-house

Contract with a single systems integrator to construct a CEM solution

Already have one in place

Outsource construction and operation of a CEM solution to a third party

Which scenario best describes your CEM adoption strategy?

% of respondents, N=76

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CEM Adoption Will be Spread Out Over the Next Few Years

44% of respondents project adoption of a CEM solution in 2012 or 2013

A majority of respondents either don’t know when they will adopt a CEM solution or believe adoption is at least three years away

Fixed operators are more aggressive timing wise in the adoption of a CEM solution

All respondents interviewed for this survey indicated that they have plans to adopt a CEM solution. Therefore, respondents who answered “don’t know” are deliberating over timing, and not whether to adopt a CEM solution.

Key Takeaway

CEM represents both a near term (i.e. 44% of operators expect to invest this year or next year), and a longer term opportunity. As such, vendors need to be sure to speak to near term needs in places that will be investing this year (i.e. Europe), and continuing to educate operators in markets (i.e. N. AM) where operator plans are less concrete.

27

North America Europe

This year/Next year 39% 48%

3+ years/Don’t know 61% 52%

11%

33%

30%

26%

Timing of adoption of CEM solution? % of respondents, Overall: N=61, Fixed: N=22,

Converged: N=39

This Year

Next Year

3+ Years

Don’t Know

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HP and IBM clear favorites as CEM solution providers

Key Takeaway Participants in this survey clearly see companies with the best known system integration expertise as the primary suppliers of CEM solutions. However, Network equipment makers that have demonstrated their own SI capabilities follow fairly closely. Smaller players, best known for products rather than broad SI skills, such as NEC/Netcracker and Amdocs, fall at the bottom of the ranking.

28

3.87

3.70

3.53

3.38

3.22

3.04

2.89

2.72

2.62

2.57

2.49

HP

IBM

Nokia Siemens Networks

Ericsson

Alcatel-Lucent

Huawei

Openet

ZTE

Tekelec

Netcracker

Amdocs

Perception of following vendors as CEM solution providers? 1=very negative, 5=very positive, mean of respondents, N=76

Vendor roster is made up of equipment and software providers that claim to offer a CEM solution

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NSN’s very positive ranking puts it in class with IBM and HP

In the survey, operators were asked to rank vendors on a scale of 1-5, with 5 equalling a very positive opinion of the vendor.

When only very positive responses are considered, NSN attracted the highest percentage of responders, tying it with HP for leadership.

Zero respondents said they had a very negative perception of HP, while only one respondent gave IBM a very negative perception rating.

When viewed from a regional standpoint, vendor perception varied very little between North American and European operators.

Key Takeaway NSN currently enjoys some perception advantages over its immediate rivals in the burgeoning CEM solution market. NSN’s early championing of CEM, as early as a year ahead of rivals, is likely responsible for the company’s positive recognition among operators. This point is reinforced when viewing the substantial difference between NSN and Ericsson. As such, Ericsson, Alcatel-Lucent and Huawei should view NSN’s overt focus on CEM as a substantial threat.

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26%

26%

25%

14%

9%

7%

5%

5%

3%

3%

1%

HP

Nokia Siemens Networks

IBM

Ericsson

Alcatel-Lucent

Huawei

Openet

ZTE

Netcracker

Tekelec

Amdocs

Which vendors do you hold a very positive perspective as CEM solution providers?

% of respondents, N=76

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Conclusions – Overall Theme

Network operators, by and large, still exhibit some confusion with respect to crafting their CEM adoption strategies Many operators see organization issues as the primary obstacle to CEM

adoption • This, despite the fact that more than half of the organizations surveyed indicated that

they have a single person in charge of CEM strategy

Many operators feel that proactive identification of issues is an important role in CEM, but that a holistic CEM system is less of a priority • This, despite the fact that a holistic, cross-organizational CEM system would better

enable proactive identification of all issues that could impact customer experience

Many operators cite “getting the right services to the right customers” as key priority, yet they value service-layer tools – such as DPI, device management, etc. – low relative to other CEM attributes

Taken as a whole, CEM vendors are being challenged to better educate operators about how effectively implemented CEM solutions can mitigate some of these conflicts

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Conclusions – Major Findings

Operators still heavily associate CEM with operations & care Vendor positioning of CEM is that of clearly entering a phase in its development that extends

customer satisfaction beyond traditional measurements, such as adequate service quality, network availability and the quick resolution of deterioration of either quality or availability.

Vendors now claim CEM is now equally concerned with more anticipatory issues, such as supplying the subscriber with customized service plans or personalized offerings based on context, such as the device he/she is currently using or the location of the subscriber.

This latest phase in the evolution of CEM, which can be accurately described as assisting operators in further monetizing their networks and differentiating their offerings from OTT provides, is clearly not fully conceptualized by a large percentage of the respondents of this survey.

Operators need to be shown that correlation of customer insight is a crucial component of an effective CEM solution Survey findings that rank “holistic” and “information correlation” as the least important attributes

of a CEM solution indicate that operators have yet to seize on the importance of fully leveraging the information about subscribers that is readily accessible on their networks.

Perhaps owing to an operations bias cited above, respondents in this survey see limited value in acquiring and analysing user-oriented information, such as device information or application usage.

For CEM to develop into an operator discipline that represents a significant revenue opportunity for CEM solution suppliers, operators will need to be better educated on how to harness and utilize this vital information.

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Conclusions – CEM Preferences & Deployment Drivers

Operators are aware of and addressing organizational challenges associated with CEM adoption

Survey respondents cited organization issues as big obstacle to adoption

Nearly half of operators surveyed report that CEM oversight has been assigned to an individual

Operational issues, such as customer care, are widely viewed as a chief objective of a CEM solution

Marketing –related benefits, such as the evaluation of new campaigns, did not rate high

Operators surveyed identified service personalization as an important CEM objective but failed to place a high value on components that are normally associated with enabling operators to deliver personalized services

Policy control, DPI and analytics fell at the bottom of a ranking of the most important CEM solution components

Mobile and converged operators have been more aggressive in adoption of CEM solutions than fixed-only counterparts

Only 36% of fixed have placed CEM oversight with a single entity, compared to 51% for converged

About half of fixed operators believe they have the pieces of a CEM solution, compared to 67% converged

Operators overwhelmingly plan to oversee the construction of a CEM solution through the selection of products and services from multiple suppliers

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Conclusions – CEM Preferences & Deployment Drivers

Construction of a comprehensive CEM solution finished fourth, in terms of the priority place on major operator initiatives

Finished behind reducing OpEx, optimizing OSS and all-IP transformation

Operators do not currently view network infrastructure or marketing organizations as being critical components of a CEM strategy

Operations, billing/charging and customer care get top ranking

Less than half of all respondents indentified marketing as strategic to CEM

Respondents envision CEM as primarily a means to help subscribers resolve or avoid service performance issues

Large majority agree with statement that CEM is primarily about problem prevention or resolution

Operators consider customer care and CRM, two traditional IT stalwarts, to be the most important pieces of a CEM solution

Analytics and deep packet inspection fined at the bottom of the importance ranking

Device data ranks near bottom as source of customer insight

Customer care information and subscriber data were viewed as most important

Operators value automation and timeliness over holistic attributes

Operators view CEM solutions as equal mix of products and services

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Conclusions – Timing and Vendor Perception

A majority of respondents either don’t know when they will adopt a CEM solution or believe adoption is at least three years away

44% of respondents project adoption of a CEM solution in 2012 or 2013

Fixed operators are surprising more aggressive timing wise in the adoption of a CEM solution

Participants in this survey clearly see companies with deep system integration expertise as the primary suppliers of CEM solutions

HP and IBM score highest perception rating among potential CEM solution providers

IT specialists, Amdocs and Netcracker, are at bottom of perception rating

NSN currently enjoys some perception advantages over its immediate rivals in the burgeoning CEM solution market

Finished second behind HP in the percentage of respondents that gave it the highest perception score

Of the 76 respondents surveyed, nearly half mentioned HP as an equipment vendor he/she would consider in the purchase of some or part of a CEM solution

That percentage increases to 65% when only the answers of CEOs completing the survey are considered

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Thank you

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Name: Jason Marcheck Title: Director, Custom Research Email: [email protected] Website: www.currentanalysis.com