Embedded Customer-centric Technology

Nokia Siemens Networks (News - Alert), or “NSN,” has articulated a vision that takes in virtually every aspect of networking. Called the “Network of One”, the new system paints a very big picture that has six categories:

This article takes a look at the third category. The basic proposition is that it “puts the customer in the center”.   That’s been a marketing mantra for decades, but in this case there’s significant difference. NSN is pitching an approach that unifies the view of all the customer data that network operators hold and allows them to develop deeper customer knowledge in order to deliver services that enhance the customer experience. 

A common repository

The process of consolidation creates a common repository for subscriber information such as access authentication and number portability, which are silo applications in today’s networks, i.e. the data is application specific. In future all data-reliant applications will interface to this database.

Note that, while it is possible to physically consolidate network centric subscriber data, it is not feasible across both the network and IT domains. This means that the operators need to go beyond consolidation to unify the different views of customer information held across various enterprise domains to form a common data view. 

The relevant technology enablers include the TMF Standard Shared Information/Data model SID, which needs to be augmented with network related (SDM) data models and SOA, which is the basis for integrating data/information from various different sources.

There are also challenges to overcome within the operator’s organization, given the cross-enterprise distribution of this customer data and the challenges typically encountered in working across organizational boundaries. Therefore business and operational process transformation will be needed.

NSN’s acquisition of Apertio in 2008 added subscriber data consolidation capabilities, in the form of the One-NDS (News - Alert) solution, which provides a common repository of network subscriber data that any application can access.  

Customer data is coming from many different sources: from the network, the devices, charging systems, CRM, billing, etc. When raw, real-time and historical data are consolidated for exposure to applications it provides a unique view of customers, it becomes information. But the amount of customer information being generated is massive. 
 

 

Evolving the subscriber data management infrastructure to support a unified view of customer data across an operator’s organization provides customer insights on which concrete real-time and elapsed actions can be based.

By getting the right data to the right audience in the right format and time, different departments can efficiently and accurately analyze, profile and segment customers and thus gain the insights required for customer centric actions across multiple touch points.

NSN advocates the use of “telco metadata” to downsize customer information, simplify data processing and save costs. Additionally, in order to enable different applications to share the data in a flexible and efficient way, the Shared Information Data model can be used to help define Common Data Models for application interoperability. 

A key NSN offering in this space is the Customer Insight Solution Framework, which provides near real-time customer insight, such as subscription data, service usage, charging and billing, devices, perceptions, and automated actions based on the insights.

Unified views and individual experiences

Realizing a unified view starts by consolidating the multiple, application-specific data silos, a development that yields OPEX (News - Alert) and CAPEX savings. In this way operators should be able to balance the need for better customer experience with that of generating a positive ROI. 

A unified view of the customer can be used to share and monetize customer data and create new business models. However, the ultimate objective is to go beyond the management of subscriber data and to enable the creation of individual experiences. 

For example, documented insights into customer behavior can be used to anticipate the possibility of churn, which could be prevented by offering an alternative plan that is better suited to the customer’s needs. Customers respond well to this kind of proactive response; it shows that they are appreciated, that they are not a mere subscriber.   

Insights can be used to up sell and cross sell services. The data can also be used in new, innovative ways. For example, the fact that a new-ish service such as MMS is not working properly for an individual customer can be detected and in some cases the phone’s settings can be adjusted over-the-air. Alternatively this information can be given to a customer care agent who contacts that individual and tells him/her what changes to make.   

The requisite technology has been developed and it is being deployed, but it has to be accompanied by a next-generation mindset. Operators need to take a proactive, sustainable role in the evolution of networks that are built around the individual. In a nutshell they need to transition to the social network, my portal, Internet model. That is the way ahead; failure to realize it will reduce their role to that of a utility, a mere transporter of bits and bytes.

Identity management

There is a compelling need for identity management solutions in the Telco 2.0 world. Individual experiences can be enhanced through single sign-on and identity federation, while at the same time addressing user concerns about privacy and safety on the Net. This represents a new opportunity for network operators, one that allows them to become an identity and trust provider.

In user centric ID management the operator acts as a central ID provider towards various service providers. The solution verifies users in context of their network identity, network access sessions and networked device and transparently links this information to the identities and service sessions known to the service providers. 

The customer’s perspective

NSN foresees active and sustainable participation coming via ‘Telco2Web’ services and business offers that share customer insights with other service providers and give the end user more in control of their data. In this model the end-users have digital personalities — a Digital Self, which can be better managed and thereby enhance the customer experience. This concept is much broader and deeper than that of the mere unification of a few network sites: it would be a consistent backdrop for every online activity. 

The Digital Self is defined as the sum of the fragmented personal and behavioral data left behind every time an end-user interacts with or visits a website, as well as uses a mobile phone or another device via a cable or fixed network. It also includes the information on personal desires, experiences, needs and behaviors – that lies with various business and CRM systems. 

The more complete the picture that operators have of their customer’s Digital Self, the better and more personalized is the customer experience they can offer and the greater the value that can be derived from the resulting experience. 

In other words, the concept indicates that the telecommunications market has potential for significant growth if personalized services for end-users are developed in conjunction with networks, handsets, and third party providers. And to realize that potential operators must establish themselves as an integral part of the Internet service value chain. They can then become the trusted broker between their customers and third party companies, such as developers, retailers, the government, institutions and media companies.

 

Conclusions

Faced with a scenario where revenues from communication services are flattening, and where innovation is predominantly coming from Internet based services, network operators are increasingly under pressure to find ways to add value beyond the pure connectivity business and find additional growth and revenue.

Customer insights and identity management can be leveraged to enhance the user experience, improve service quality and broaden the range of service innovation. Operators have a distressingly poor record on the innovation front, but this information has a high value to 3rd parties, e.g. ISPs. Therefore they can, given a change of mindset, monetize this information and thereby create the so-called Telco 2.0 model. 

Whether this will eventuate or not remains to be seen, but their role as an identity and trust provider should be a winner. It represents a core competence and it matches the market need to authenticate and verify Customers, e.g. leveraging SIM-based authentication, and also the pre-existing payment relationship that operators have with their customers.