Huawei Technologies at Smart Data Innovation Lab, KIT

October 2016

Dr. Walter Weigel

VP of European Research Institute

Huawei is a leading ICT company

Carrier : 77% of Huawei's revenue

generated from the carrier network

business; from world's top 50 carriers

Enterprise: Serving more than 100 global

top 500 companies

Consumer : raising the brand awareness

to 65%

Leading global ICT solutions provider

A Fortune Global 500 company, ranking

285 in 2014

Interbrand Top 100 Best Global Brands

170,000+ employees worldwide

45% or 76,000+ employees engaged in

R&D

LinkedIn World's 100 Most InDemand

Employers

Who is Huawei

US$ 60B revenue in 2015

Serving 1/3 of the world's

population

Market Progress

Employees Business Areas

Telecom, a fast changing industry, what will be the future?

1980sVoice

1990sVoice/SMS

2000sData/HTML

2010sVideo

2020sHD/VR/AR

2G

3G

4G 5G

1GGSM

WCDMA

HSPALTE

LTE- Advanced

GPRS2Mbps

10Mbps100Mbps

1Gbps10Gbps

100Kbps

10Kbps

??

IT, a fast changing industry, what will be the future?

1980sMainframes

1990sProcess

Computers

2000sPCs, Servers

2010sCloud

platforms

2020sHPCs

IBM

Evolution HPC &

Flash Memory

SiemensBull DEC

Apple

Nixdorf

HP

Compaq

GigaFLOP (1x109)

1984

TeraFLOP (1x1012 )

1999

PetaFLOP (1x1015 )

2008

ExaFLOP (1x1018 )

2019

ZetaFLOP? (1x1021 )

Beyond 2020

2.5 Tb/cm2

202050 Gb/cm2

20101 Gb/cm2

2000

18 local R&D-sites in 8 countries with 1600 jobs

Ipswich

Dublin & Cork

MunichMilan

Leuven

Paris

Nice

Gent

Nuremburg

Berlin

Gothenburg

Lund

Helsinki

Stockholm

Bristol

Cambridge

Huawei European Research Institute: Structure

Darmstadt

Establishment in Stockholm2000

Dec 2007

Apr 2009

Mar 2009

Dec 2008

Total People in Sweden 50+

Establishment of Bonn CentreMar 2008

Jun 2008 Establishment of Milan Branch

Major Movement from Bonn to Munich

Establishment of Gothenburg branch

Establishment of Belgium Branch

Jan 2012Establishment of UK Branch

Sept 2011 Establishment of Nuremberg Branch

Dec 2012 Establishment of Finland and Ireland branches

Mar 2016

Acquisition of CaliopaAug.2013

Establishment of France BranchOct.,2013

Aestethics research FranceMarch 2015

Quantum Commun. Germany

1600 researchers in Europe at 18 sites

Close to customers, close to industrial partners, close to academic partners

Goal: accelerate ICT innovations of future life and future work for a global market

Huawei European Research Institute: Overview

Telecom

IT

ITS / Mobility

E-/M-Health

Industries 4.0

Smart Grid

Smart City

Wireless Networks

Key Technical InnovationsIndustrial Solutions Fundamental R&D

Cloud and Big Data

Optical System

Terminals and IoT

+ +New Theories

New Algorithms

New Materials

New Components

New Devices

Cooperation landscape in Europe (2015)

3+

5+

0.2+

31+

4+

10+

20+

5+

5+

2+

2+

0.8+

3+

0.7+

Unit: Million in Euros

Note: All projects are Huawei Funded.

Huawei joining SDIL

We are delighted to join the distinguished SDIL members

Intend to be a proactive member of the community, supporting research

Making hardware and the FusionInsight Big Data platform available for projects

Looking forward to working with the SDIL team, board members and with project

teams from corporations and universities, across all industries and areas of

research

Thank you for giving us this opportunity!

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A brief look at the FusionInsight Platform

An example of a recent Huawei project with Big Data

FusionInsight Big Data PlatformHuawei Technologies

Big Data as a foundation for Innovation

HUAWEI Big Data PlatformDB / DW

Credit:

3~5 WeeksOff Line

Historic Breakdown

Structured Data Structured, Semi-Structured, Unstructured Data

Credit

2~5 Seconds

On Line

Historic Breakdown

Possible

AssetsFinancial

Networking

Targeted

Marketing

ServiceInnovation

Traditional service …

FusionInsight Big Data Platform

BI Analysis

network signaling

analysis

CRM historical

data Inquiry

Data Collection

Real time data

BOSS

Stru

cture

d D

ata

CRM

Other System

……

Web log

Un

structu

red

data

DPI

……

Internet

Data Backward

Web crawler

IDE & OM precision

marketing

Multi-tenant

Parallel Data Mining

（Customer Profile）

Streaming

Big Data Platform (FusionInsight)

Map Reduce

…… ……X86 Server Cluster

detailed statement

inquiry

third party Data

Service

Data App

Short storage period, bad Customer satisfaction

High cost by RISC Server and SAN

…… ……

Difficulty with Scale-out

Performance bottleneck in inquiry

Challenges

Customer Service

……

FusionInsight Big Data Platform

TelecomBank

FusionInsight

Enterprise

OceanStor9000

FusionSphereFusionCubeX86 Server

Data insight： Parallel algorithms、Modeling、…

Off-line/Near-line data

In-memory iteration

Real-time Processing

Manager

API API API APIPacking Services

Big data infrastructure

Simple• Life-cycle data management

• User-defined dashboard

• Redevelopment widgets

Reliable• HA components & DR

• Distributed architecture

• N+M data protection

Real-time• Real-time processing

• Industry-leading storage performance

Smart• Deep insight based on full data

• Automated storage tiering

Supports 1000+km Disaster Recovery & Classified Protection of Financial Industry

Telco Transformation with Big DataHuawei Technologies

Overview of Selected Telco Big Data Projects

Page 14

Business Services Objectives Huawei Key Offerings Clients

Churn management Reduce churn Predict churn accurately,

categorize churn reason

and propose solutions

CMCC, China Unicom,

Telkomsel,

Traffic management Increase traffic scale

and value

Drive traffic monetization

thru personalization and user

lifecycle value development

CMCC, China Unicom,

Mobily, Du, Vodafone,

PLDT, S.A. Telkom, …

Internet Operation Smart operation to

optimize, personalize

and monetize content,

services and user

experience

Big data enabled precise

marketing/sales solution to

optimize, personalize and

monetize data services

China Unicom

Intelligent location Monetize data assets B2B/B2B2C business

collaboration and trading

platform

CMCC, Facebook

Churn Management and related Retention Activities

Page 16HUAWEI TECHNOLOGIES CO., LTD.

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Churn Management: Predictive Models for Churn Prevention

Can predict

likely churns

Know your customers.

Develop algorithms to predict behavior.

Staying a step ahead of the/each customer is an important step in preventing churn.

Potential

Churn

CUSTOMER VALUE MODEL

Input Data AlgorithmCustomer

Value (Grade)

CHURN PREDICTION MODEL

PRE-ALARM

INDEX

LIBRABY

Prediction

Algorithm

Pre-

alarm

Model

CHURN

MODEL

Promotion Sensitive

Tariff Sensitive

ProductSensitive

Communication fee promotion

On-net Age Promotion

Entertainment

News

Business

Life associated Service

Tools Service

Toll Discount Preference

Family and Friend

VPN Preference

Package Discount

1 VIP Service Club Score

Characters Segmentation Customer Needs

Amazing ServiceService

Sensitive

Service

Product

Price

Promotion

2

3

4

6

8

7

9

10 11

12 13

14

16

15 Terminal Promotion

Communication5

Insensitive CustomerDo not want to any promotion and service. They used to consume regular tariff and service.

17Sloth

Churn: Customer Insight & Classification is essential

Training Data

Prediction Indexes

Dem

ograp

hics

Acco

un

t In

form

ation

Beh

avior

Info

rmatio

n

Co

ntacts C

ycle

Targeted Customer

Classification Prediction Algorithm

Pre-alarm Model

Build a core customer pre-alarm index library.

Using time window analysis methodand classification algorithm like Logistic regression to generate prediction model

Outcome

•Time•MSISDN•Churn Probability Score•Pre-alarm Level•Churn reason

Execution Prediction

Output the Result

Customer Insight with Predictive Algorithms

Churn reason Churn reason detailsCategory

Solution Category Subcategory

Disappointment

churn

Operators seldom launch promotions. Promotion-sensitive Airtime promotion Top up promotion

Big promotions for new subscribers

rather than old subscribersPromotion-sensitive

Promotion for staying with

operatorsPromotion based on tenure

Cell phone losing and high fare for new

SIM applicationTariff-sensitive XXX Decrease fare for new SIM application

No personalized tariff plan or promotions

for individual users

Tariff-sensitive Low tariff preference Personalized tariff plans

Service-sensitiveSurprised service

preferenceService remaining and customer care

Competition churn Low tariff from competitors Tariff-sensitive Low tariff preferenceLease fare reduction

off-peak tariff reduction

Natural churn

Work location change Promotion-sensitive Airtime promotion Roaming promotions

Subscriber migrate to other place Promotion-sensitivePromotion for staying with

operatorsKeep phone number for a specific period.

Malice churn

Malice arrearage Tariff-sensitiveTariff plan promotion

preference

High call fare remaining and arrearage alarm;

Promotion based on tenure

Agency channels encourage users to

churn and get commissionPromotion-sensitive Airtime promotion Delay commission payment to Agency channels.

Differentiating Reasons and identifying Solutions

Copyright©2016 Huawei Technologies Co., Ltd. All Rights Reserved.

The information in this document may contain predictive statements including, without limitation,

statements regarding the future financial and operating results, future product portfolio, new technology,

etc. There are a number of factors that could cause actual results and developments to differ materially

from those expressed or implied in the predictive statements. Therefore, such information is provided for

reference purpose only and constitutes neither an offer nor an acceptance. Huawei may change the

information at any time without notice.

www.huawei.com

Thank you