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2. Transforming service operations so that CEM becomes
an enabler for improving customer engagement
12th November, 2013
Nick Jotischky
Principal Analyst

3. Understanding the challenges facing telcos: The search for differentiation
Too much competition
and stringent regulation
is putting pressure on my
prices.
My customers are
becoming more
demanding in terms of
service features and
quality.
I have to invest in adding
capacity and upgrading my
networks (to all-IP and LTE)
to satisfy an exploding
demand for data
services.
Operational transformation partners must help CSPs to:
• become more customer-focused
• help CSPs differentiate their propositions (by improving service
quality/ customer experience)
• drive CSP revenue growth
As a consequence, the governance of transformation programs
must have a focus on value creation in addition to network
efficiencies and operational excellence.
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4. What are the biggest challenges facing telcos?
Please rank in order of importance the operational issues that communications service providers must address in
the next three years (starting in 2013)
N: 115 operators
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5. Loyalty, profitability and differentiation are the main drivers for CEM
Business drivers behind deploying a CEM solution?
(important and very important)
System standardisation and rationalisation
Managing network resources/ bandwidth
55%
Operational
focus
62%
Automating processes
65%
Optimising processes
65%
Driving new service launches and adoption
Customer acquisition/ competitive
differentiation
Customer yield management
Driving customer retention and loyalty
Strategic
focus
68%
73%
78%
92%
N: 60 operators
Source: Informa Telecoms & Media
4
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6. Main drivers for adoption of CEM tools
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7. Improving operational efficiency
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8. Improving the customer experience
• Service assurance provides network
and device-based data but does NOT
correlate with other types of customer
and business data.
• Without this linkage MNO cannot
create a dynamic profile of customer or
understand where network or device
problems are affecting customer
experience.
• Network and service quality insights
around coverage and download speed
need a customer context for service
providers to be proactive around issues.
Using CEM portal, Telkomsel bundles together insights from a
range of KPIs into structured modules that provide customercentric reports. Result: A unified view of customer data providing
a single point to view real-time experience metrics.
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• Example: if revenues from an
enterprise customer have dropped off,
MNO needs to link this decline to poor
network performance near that
enterprise’s office.
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9. Processes
Platforms
Business
operations
Revenue generation
People
Operational efficiencies
Network
operations
Service
operations
Customer experience
Customer experience as part of transformation
Governance: Metrics and dashboards
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10. Case study: Tier 1 converged challenger –
CSP establishing a SOC
Drivers/objectives (Why?):
• Improving service quality and customer experience.
• Shift from voice to data, network cost control to unlimited data plans as differentiator.
Transformation project (What?):
• SOC transformation: Establishing/running a service-performance-management center.
• Still working on identifying/defining appropriate metrics, e.g., throughput, data usage over time.
Approach/challenges/best practices (How?):
• SOC planning/management/implementation: Initially used third party, then took it in-house. NOC still
operated by vendor.
• Interfaces for SOC with other parts of organization are critical, essential to communicate benefits.
• Integration of systems was challenge, requires good support from vendors to optimize/customize tools.
• KBOs/KBIs: Speed of network deployment, expansion of footprint (coverage) and better services for
customers, in particular faster data speeds.

11. ITM’s CEM recommendations
Operators must initially focus
on using CEM-analytics
products to achieve quick wins.
It is better to focus initially on
areas that bring immediate
gains in terms of simplifying
customer interactions as well as
consolidating and optimizing
network-related data
management.
Operators need to adopt a
holistic approach that
integrates CEM and datamanagement offerings into a
customer-centric strategy.
Vendors must not forget that it
is their CEM-software
offerings that will contribute
most to operators
repositioning themselves with
a customer-experience focus.
For operators, it
makes most sense
to focus on CEM as
an enabler rather
than a
differentiator.
Vendors should
focus on their
CEM-analytics
offerings rather
than be diverted by
business-consulting
opportunities.
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Operators should
leave new business
models for later.
Vendors must
remember: it’s still
early days for CSPs
and CEM – so one
step at a time.
Operators should focus on
addressing internal data-sharing
problems and data silos before
they attempt more ambitious
data-brokering and monetization
initiatives. If an operator is not
making efficient use of its own
resources, then it is unlikely to
have the expertise to address
broader sharing or brokering
initiatives.
Vendors need to demonstrate
the clear business benefits of
what they can do in the CEM
environment and the ROI their
CEM-software offerings can
deliver. CSPs will buy and
implement CEM technologies if
the products are well targeted
and they can see a clear
business case for them.
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