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IBM Software Group IBM Middleware Solutions for Telecommunications © 2004 IBM Corporation IBM Software Group IBM Middleware Solutions for Telecommunications © 2004 IBM Corporation

IBM Software Group Agenda § Telecommunications Industry Review § IBM and the Telecommunications Industry IBM Software Group Agenda § Telecommunications Industry Review § IBM and the Telecommunications Industry § Industry On-Demand § Telecommunications Industry Middleware § Q&A © 2004 IBM Corporation

IBM Software Group A Challenging Business Environment Especially in the Telecommunications Industry Wireline, Wireless IBM Software Group A Challenging Business Environment Especially in the Telecommunications Industry Wireline, Wireless and Cable carriers competing for same customers Continuous Change Struggling to cut costs, while improving customer service Rigorous Competition Balancing Next Generation Network investment and cash flow Unpredictable Threats Searching for the next new source of revenue Unrelenting Financial Pressures © 2004 IBM Corporation

IBM Software Group IBM: Delivering Industry Middleware Solutions Based on Changing Needs of Customers IBM Software Group IBM: Delivering Industry Middleware Solutions Based on Changing Needs of Customers IBM is set to make a multi-billion dollar bet that there has been a fundamental shift in the way corporations will buy technology. Big Blue Bets on a Coming Revolution The Financial Times, December 1, 2003 “IBM's increased focus on vertical markets reflects the changing needs of customers. . . Rather than purchase general-purpose software, businesses are seeking more specialized tools. ” Analyst Stephen O'Grady, Red. Monk IBM Thinks Vertical with Software Revamp, C/Net, December 1, 2003 “ No other vendor was able to match IBM's mix of technology and services. " Russ Cooke, President, Boston. Coach Information. Week, December 8, 2003 © 2004 IBM Corporation

IBM Software Group IBM: Helping Customers Succeed A History of Accomplishments in Telecommunications 14 IBM Software Group IBM: Helping Customers Succeed A History of Accomplishments in Telecommunications 14 of the world’s 15 largest Telecommunications Service Providers leverage IBM middleware to run their applications Within the last 12 months, 16 of the world’s largest Service Providers leveraged IBM middleware to more effectively integrate their Operational and Business Support Systems (OSS/BSS) IBM led the formation and initiatives of: IBMer Zygmunt Lozinski serves as president of the Parlay Group © 2004 IBM Corporation

IBM Software Group Succeeding in the New Business Era Requires Companies to Become On IBM Software Group Succeeding in the New Business Era Requires Companies to Become On Demand “An on demand business is an enterprise whose business processes – integrated end-to-end across the company and with key partners, suppliers and customers – can respond with speed to any customer demand, market opportunity or external threat. ” © 2004 IBM Corporation

IBM Software Group Becoming an On Demand Enterprise On Demand Operating Environment s. P IBM Software Group Becoming an On Demand Enterprise On Demand Operating Environment s. P es sin Bu Innovative business designs that sharpen focus and accelerate growth roc s es es Business Transformation An IT operating environment optimized for flexibility and resilience Integrated, end-to-end business processes that are built to change © 2004 IBM Corporation

IBM Software Group Key Capabilities Delivered by the On Demand Operating Environment Integration Business IBM Software Group Key Capabilities Delivered by the On Demand Operating Environment Integration Business flexibility through Integration of people, processes and information within and beyond the enterprise IT optimization through managing the infrastructure with Automation and Virtualization of existing and future resources • Access and Collaborate • Business Modeling • Process Transformation • Application & Information Integration • Business Process Management Infrastructure Management Automation • Policy-based Orchestration • Availability • Security • Optimization • Provisioning Virtualization • Server • Storage • Distributed Systems/Grid • Network © 2004 IBM Corporation

IBM Software Group The Telecommunications Industry Business Challenges Exist Across All Processes Commoditized offerings, IBM Software Group The Telecommunications Industry Business Challenges Exist Across All Processes Commoditized offerings, squeezing profit margins Telecom Industry Processes Developing New Products and Markets High customer churn Acquiring and Managing Customers Poor visibility into business and customers Developing and Providing Network Services Managing the Supporting Enterprise Processes Disparate and costly systems Increased competition, leading to poor revenue growth Costly network infrastructure © 2004 IBM Corporation

IBM Software Group IBM Middleware Solutions for Telecommunications Telecom Industry Processes IBM Middleware Solutions IBM Software Group IBM Middleware Solutions for Telecommunications Telecom Industry Processes IBM Middleware Solutions Developing New Products and Markets Partner Content Enabler Acquiring and Managing Customers Contact Center Optimizer Mobile Services Delivery Developing and Providing Network Services Managing the Supporting Enterprise Processes Next Generation Network Services OSS/BSS Optimization Industry Know-How Consulting and Implementation Services ISV Applications Industry-Specific Middleware Core Products deliver the On Demand Operating Environment © 2004 IBM Corporation

IBM Software Group IBM Middleware Solutions for Telecommunications Contact Center Optimizer Next Generation Network IBM Software Group IBM Middleware Solutions for Telecommunications Contact Center Optimizer Next Generation Network Services Mobile Services Delivery OSS/BSS Optimization Business Support Systems Strategic Procurement Supply Chain Customer Care Billing E Commerce Accounting/Finance Partner Content Enabler OSS © 2004 IBM Corporation

IBM Software Group IBM Middleware Solutions for Telecommunications Partner Content Enabler Contact Center Optimizer IBM Software Group IBM Middleware Solutions for Telecommunications Partner Content Enabler Contact Center Optimizer Mobile Services Delivery Next Generation Network Services OSS/BSS Optimization Billing E Commerce Accounting/Finance Strategic Procurement § New revenue. Business Support Systems § Improve § Reduce § Integration of § Reduce time to customer opportunities customer processes market service churn § Enterprise § Optimization § Flexible § Reduce customer § Reduce of assets product Supply Chain support costs focus Operating management § Reduction of Expenses § Lower § Creates value cost § Lower risk, Customer customer added § New revenue increase § Increase churn from Careservice revenue efficiency/fle opportunities personalized xibility IP offerings OSS © 2004 IBM Corporation

IBM Software Group IBM Middleware Solutions for Telecommunications Partner Content Enabler Contact Center Optimizer IBM Software Group IBM Middleware Solutions for Telecommunications Partner Content Enabler Contact Center Optimizer Mobile Services Delivery Next Generation Network Services OSS/BSS Optimization § Meets the challenge of creating new revenue opportunities § Solution provides the ability to manage and automate the new product introduction cycle of sell-through revenue opportunities to the consumer for digital media such as ring tones, games, multimedia content and business applications § Resulting in increased revenue and customer satisfaction © 2004 IBM Corporation

IBM Software Group Partner Content Enabler Complexity in bringing to market 3 rd party IBM Software Group Partner Content Enabler Complexity in bringing to market 3 rd party content Challenges § Long and costly new product introduction cycles § Dwindling revenue sources and margins § High customer churn § Abundance of data capacity with limited applications to drive consumption Traditional Process Content Provider 3 days Product Mgmt 2 days Legal 2 weeks Test 2 days Operations 3 days Web Publishing Accounting © 2004 IBM Corporation

IBM Software Group Partner Content Enabler Sprint Internal Reference Only Business Challenge § Expediting IBM Software Group Partner Content Enabler Sprint Internal Reference Only Business Challenge § Expediting new content introduction cycle § Ensuring complete product introduction process is followed § Extending product introduction process to business partners Solution § Manages third party content (ring tones and games) through unique role-based interfaces from content ingestion through automatic publishing, download management and e-commerce Business Benefits § Reduces time to market by 50% § Creates formalized new product introduction work flow § Common portal framework for development efficiency § Minimal end-to-end integration § Web. Sphere Commerce, Web. Sphere Digital Media Enabler, Web. Sphere Portal, DB 2 Content Manager © 2004 IBM Corporation

IBM Software Group Partner Content Enabler Core Capabilities & Products Delivering the On Demand IBM Software Group Partner Content Enabler Core Capabilities & Products Delivering the On Demand Operating Environment Integration Access & Collaborate • Allow customers to search, purchase, and download digital content such as ring-tones and games • DB 2 Content Manager • Web. Sphere Business Integration Connect • Web. Sphere Commerce Application and Information Integration • Integrate with 3 rd party content providers managing digital content and billing information in real time all the way through the customer purchasing content • Web. Sphere Digital Media Enabler • Web. Sphere Portal • DB 2 Content Management Video Charger • Lotus Workplace suite • Rational Rapid Developer • Tivoli Identify Manager • Web. Sphere Application Server • Web. Sphere Studio *Core Products in BOLD © 2004 IBM Corporation

IBM Software Group Partner Content Enabler Industry-Specific Middleware § IBM Industry-specific middleware § Web. IBM Software Group Partner Content Enabler Industry-Specific Middleware § IBM Industry-specific middleware § Web. Sphere Business Integration Adapter for SAP § Web. Sphere Business Integration Adapter for People. Soft § Web. Sphere Business Integration Adapter for Oracle § Web. Sphere Commerce Portlets § Industry-specific middleware from Business Partners § Openwave Download Manager § Core Media Digital Rights Management © 2004 IBM Corporation

IBM Software Group Partner Content Enabler ISV Partners Essential Elements of an Integrated Solution IBM Software Group Partner Content Enabler ISV Partners Essential Elements of an Integrated Solution © 2004 IBM Corporation

IBM Software Group Partner Content Enabler Services Capabilities § Business Consulting Services § Portals, IBM Software Group Partner Content Enabler Services Capabilities § Business Consulting Services § Portals, Branding, Design & Innovation services § Wireless Solutions services § SPDE Services § Software Services §Product architecture §Product configuration §Product expertise © 2004 IBM Corporation

IBM Software Group Partner Content Enabler Our Solution reduces partner content introduction cycle by IBM Software Group Partner Content Enabler Our Solution reduces partner content introduction cycle by 50% Improves time to business value by: § Integrating internal and external processes Reduces Risk by: § Creating centralized repository § Guaranteeing approval steps prior to release Commerce, Portal, Subscriber Mgmt 3 rd Party Content Provider Content Management / Publishing Content Delivery Digital Rights Management Network Infrastructure § Optimizing new product introduction/ modification Transformed Process Billing, Operations, CRM Increase market responsiveness through a centralized process © 2004 IBM Corporation

IBM Software Group IBM Middleware Solutions for Telecommunications Contact Center Optimizer Partner Content Enabler IBM Software Group IBM Middleware Solutions for Telecommunications Contact Center Optimizer Partner Content Enabler Contact Center Optimizer Mobile Services Delivery Next Generation Network Services OSS/BSS Optimization § Meets the challenge of lowering customer churn § Solution provides the end customer the ability to choose their communication medium of choice (phone, IVR, voice, mobile, web, e-mail) for account self-service. § Resulting in lower customer support costs and increased customer satisfaction. © 2004 IBM Corporation

IBM Software Group Contact Center Optimizer Complexity in Today’s Policy Administration Process Challenges Traditional IBM Software Group Contact Center Optimizer Complexity in Today’s Policy Administration Process Challenges Traditional Process § Rising customer support costs § Decreasing customer loyalty § High customer churn § Give customer access to WHAT they want, WHEN they want it, HOW they want it © 2004 IBM Corporation

IBM Software Group Contact Center Optimizer belgacom Business Challenge § Integrating data from multiple IBM Software Group Contact Center Optimizer belgacom Business Challenge § Integrating data from multiple disparate legacy systems § Increasing customer and IT support costs § Complex internal infrastructure and processes proved costly to implement changes Solution § Leveraged portal as integration infrastructure supporting customer selfservice applications and B 2 B transactions § Web. Sphere Portal Extend, Web. Sphere Business Benefits § Increased sales though improved online cross-selling incorporating personalization § Increased customer satisfaction and employee productivity § Supports more than 1 million households in Belgium § Supports over 2, 000 business partners Application Server, Web. Sphere Studio © 2004 IBM Corporation

IBM Software Group Contact Center Optimizer Nextel Business Challenge § Customer turnover (churn) § IBM Software Group Contact Center Optimizer Nextel Business Challenge § Customer turnover (churn) § Increasing customer and IT support costs § Flexible systems able to support rapidly changing packaging and services requirements Solution § Integrated customer self-service platform supporting both internet and voice § Web. Sphere Portal Extend, Web. Sphere Application Server, Web. Sphere Voice Business Benefits § Increased sales though improved online cross-selling incorporating personalization § Increased customer satisfaction and employee productivity § Supports more than 1 million households in Belgium § Supports over 2, 000 business partners © 2004 IBM Corporation

IBM Software Group Contact Center Optimizer Core Capabilities Delivering the On Demand Operating Environment IBM Software Group Contact Center Optimizer Core Capabilities Delivering the On Demand Operating Environment Integration Access and Collaborate • Interact with customers through a personalized interface via telephone, world wide web, PDA or cellular phone to quickly and cost effectively address their needs Application and Information Integration • Manage customers’ account information across multiple product lines and operating units, utilizing the information you need, when you need it • DB 2 Universal Database • DB 2 Information Integrator for Content • Lotus Workplace for Team Collaboration • Rational Clear. Case Change Management Solution • Rational Rapid Developer • Web. Sphere Everyplace Access • Web. Sphere Portal • Web. Sphere Voice Server • Web. Sphere Voice Response • DB 2 Business Intelligence • DB 2 Content Manager • DB 2 Telco Data Warehouse • Lotus Workplace Family • Rational Suite Enterprise • Tivoli Identity Manager • Web. Sphere Application Server family *Core Products in BOLD © 2004 IBM Corporation

IBM Software Group Contact Center Optimizer Industry-Specific Middleware § IBM industry-specific middleware § DB IBM Software Group Contact Center Optimizer Industry-Specific Middleware § IBM industry-specific middleware § DB 2 Telco Data Warehouse § Web. Sphere Business Integration Adapter for Siebel Software § e. Docs Customer Self-Service and e-billing portlet § Industry-specific middleware from Business Partners § e-piphany E. 6 suite § edocs application suite for Telecommunications § Genesys Suite 6 § Kana Contact Center and Response © 2004 IBM Corporation

IBM Software Group Contact Center Optimizer ISV Partners Essential Elements of an Integrated Solution IBM Software Group Contact Center Optimizer ISV Partners Essential Elements of an Integrated Solution © 2004 IBM Corporation

IBM Software Group Contact Center Optimizer Services Capabilities § Business Consulting Services § Customer IBM Software Group Contact Center Optimizer Services Capabilities § Business Consulting Services § Customer Care services § Portals, Branding, Design & Innovation services § Data integration services § Software Services §Product architecture §Product configuration §Product expertise © 2004 IBM Corporation

IBM Software Group Contact Center Optimizer Our Solution reduces customer support costs by as IBM Software Group Contact Center Optimizer Our Solution reduces customer support costs by as much as $1. 5 million and improves customer churn by 13% Improves time to business value by: § Leveraging information in existing systems § Raising customer satisfaction, lowering customer churn § Reaching multiple device types, more customers, through a single source Reduces Risk by: § Delivering consistent information § Putting control in customer’s hands Transformed Process Voice Web e. Mail Mobile Integrated Touchpoint Infrastructure Portals CRM Mobile Contact Center Mail Fax Self Service WEB IVR Process Integration Business Intelligence BSS / OSS Systems Supply Chain Integration Collaborative Operational Analytical Single source of consistent information with multiple device support © 2004 IBM Corporation

IBM Software Group IBM Middleware Solutions for Telecommunications Mobile Services Delivery Partner Content Enabler IBM Software Group IBM Middleware Solutions for Telecommunications Mobile Services Delivery Partner Content Enabler Contact Center Optimizer Mobile Services Delivery Next Generation Network Services OSS/BSS Optimization § Meets the challenge of creating new value added service § Solution provides seamless service and unified support to the enterprise, enabling their mobile workforce regardless of geography, access point or device type, while also enabling the enterprise to include customized value added services § Resulting in a more productive and empowered workforce © 2004 IBM Corporation

IBM Software Group Mobile Services Delivery Complexity in creating new revenue opportunities Challenges Traditional IBM Software Group Mobile Services Delivery Complexity in creating new revenue opportunities Challenges Traditional Process § Commoditization amongst service provider offerings § Declining traditional revenue sources § Diminishing profit margin § Enterprise customers demanding more services from single source © 2004 IBM Corporation

IBM Software Group Mobile Services Delivery China Mobile Communications Business Challenge § Maintain connectivity IBM Software Group Mobile Services Delivery China Mobile Communications Business Challenge § Maintain connectivity with remote employees § Rapidly responding to customers § Enable employees across various geographies and connectivity methods Solution § Created secured network gateway, supporting multiple networks including local area networks (LANs), wireless LANs (WLANs), dial-in networks and GPRS allowing employees constant access to enterprise systems Business Benefits § Improved employee efficiency § Improved employee productivity § Potential hosted model to be offered to their enterprise customers § Web. Sphere Everyplace Connection Manager © 2004 IBM Corporation

IBM Software Group Mobile Services Delivery Core Capabilities Delivering the On Demand Operating Environment IBM Software Group Mobile Services Delivery Core Capabilities Delivering the On Demand Operating Environment Integration Access and Collaborate • Empower employees to access and input information at anytime, from anywhere, across any medium, through any device • DB 2 Everyplace • IBM Directory Integrator • Web. Sphere Portal Enable • Web. Sphere Everyplace Service Provider Offering • DB 2 Content Manager • Lotus Workplace family • Tivoli Identity Manager • Rational Suite Enterprise • Web. Sphere Application Server • Web. Sphere MQ Everyplace • Web. Sphere Studio *Core Products in BOLD © 2004 IBM Corporation

IBM Software Group Mobile Services Delivery Industry-Specific Middleware § Industry-specific middleware from Business Partners IBM Software Group Mobile Services Delivery Industry-Specific Middleware § Industry-specific middleware from Business Partners § Openwave Operator Products § Volantis for Service Providers © 2004 IBM Corporation

IBM Software Group Mobile Services Delivery ISV Partners Essential Elements of an Integrated Solution IBM Software Group Mobile Services Delivery ISV Partners Essential Elements of an Integrated Solution © 2004 IBM Corporation

IBM Software Group Mobile Services Delivery Services Capabilities § Business Consulting Services § Wireless IBM Software Group Mobile Services Delivery Services Capabilities § Business Consulting Services § Wireless Solutions services § SPDE Services § Software Services §Product architecture §Product configuration §Product expertise © 2004 IBM Corporation

IBM Software Group Mobile Services Delivery Our solution empowers employees with instant access to IBM Software Group Mobile Services Delivery Our solution empowers employees with instant access to information and increases employee productivity Improves time to business value by: § Giving employees access to information when they need it and want it Transformed Process User and Device Access Network GPRS Network § Enabling employees to become more productive Applications WECM 1 Connection Mgmt DSL/ Cable ‘ Reduces Risk by: § Leveraging existing infrastructure and alliances § Creating “sticky” source of revenue from enterprise clients Enterprise and Internet Service Provider Portal Connection Mgmt ( (( ( Hot Spot Hot ( Spot Point of Presence Corporate Intranet VPN Server & Firewall Strong encryption New enterprise focused “sticky” revenue source © 2004 IBM Corporation

IBM Software Group IBM Middleware Solutions for Telecommunications Next Generation Network Services Partner Content IBM Software Group IBM Middleware Solutions for Telecommunications Next Generation Network Services Partner Content Enabler Contact Center Optimizer Mobile Services Delivery Next Generation Network Services OSS/BSS Optimization § Meets the challenge of creating new value added services § Solution delivers a secure, open, resilient, and autonomic service platform enabling service providers to deliver enhanced voice, messaging, multi-media conferencing and other personalized services faster, and with less ongoing operational expense. § Resulting in a lower cost, higher value network © 2004 IBM Corporation

IBM Software Group Next Generation Network Services Telemar Internal Reference Only Business Challenge § IBM Software Group Next Generation Network Services Telemar Internal Reference Only Business Challenge § Decreasing wireline revenues § Cover costs of transitioning to Next Generation Network Services § Control costs Solution § Provides subscriber management and provisioning of Next Generation Network services, such as video-on-demand, for Brazil’s largest telecom provider with over 18 million wireline subscribers § Web. Sphere Everyplace Subscription Business Benefits § Increases ADSL demand revenue through personalized services § Increases customer satisfaction through value added services § Reduces administration costs through centralized management of subscriptions and accessibility Manager, Web. Sphere Portal © 2004 IBM Corporation

IBM Software Group Next Generation Network Services Complexity in creating new value added services IBM Software Group Next Generation Network Services Complexity in creating new value added services Challenges Traditional Process § Evolution to softswitch network § Financing Next Generation Network transition § Customer defections to nontraditional competitors offering new services § Abundance of data capacity with limited applications to drive consumption Voice Network PSTN C C + Reliable/Available (99. 999%) - Connection Oriented ( wasted BW) - Proprietary hardware - Hard to add VAS C Data Network - Best Effort Reliability + e. Servers + Middleware + Connectionless ( on demand BW) + Easier to add VAS © 2004 IBM Corporation

IBM Software Group Next Generation Network Services Core Capabilities Delivering the On Demand Operating IBM Software Group Next Generation Network Services Core Capabilities Delivering the On Demand Operating Environment Integration Access and Collaborate • Provide customers value added services allowing them to access information and collaborate across geographies with customers, partners and employees • DB 2 Universal Database • Rational Clear. Case Change Management Solution • Rational Rapid Developer • Web. Sphere Application Server for Telecomm (with WAS v 5. Network Deployment) • Web. Sphere Application Developer • Web. Sphere Everyplace Subscription Manager • IBM Unified Messaging for Web. Sphere Voice Response Infrastructure Management Secure • Create a secure next generation infrastructure, assuring your customers the highest level of service through their trusted provider • Tivoli Access Manager • Tivoli Directory Integrator • Tivoli Risk Manager • DB 2 Content Management family • DB 2 Digital Media family • Lotus Workplace family • Rational Suite Enterprise • Web. Sphere Portal *Core Products in BOLD © 2004 IBM Corporation

IBM Software Group Next Generation Network Services Industry-Specific Middleware § IBM industry-specific middleware § IBM Software Group Next Generation Network Services Industry-Specific Middleware § IBM industry-specific middleware § IBM Telecom Toolkit for Web. Sphere Studio § Lotus Workplace web conferencing Portlet § Web. Sphere Everyplace Subscription Manager Portlet § Video on Demand Sample Portlet § Intelligent Advertising Sample Portlet § Web. Sphere Business Integration Adapter for Spirent § Industry-specific middleware from Business Partners § Leapstone’s Communications convergence engine § Sylantro’s IP Centrex solution § Arbor Network’s Peakflow SP § Intelligent Internet Security’s Proventia Series § Netscreen intrusion detection products © 2004 IBM Corporation

IBM Software Group Next Generation Network Services ISV Partners Essential Elements of an Integrated IBM Software Group Next Generation Network Services ISV Partners Essential Elements of an Integrated Solution © 2004 IBM Corporation

IBM Software Group Next Generation Network Services Capabilities § Business Consulting Services §SPDE services IBM Software Group Next Generation Network Services Capabilities § Business Consulting Services §SPDE services §Security & Privacy services § Software Services §Product architecture §Product configuration §Product expertise © 2004 IBM Corporation

IBM Software Group Next Generation Network Services Our solution increases flexibility to offer new IBM Software Group Next Generation Network Services Our solution increases flexibility to offer new services and lowers the cost of network maintenance Improves time to business value by: § Leveraging existing data network Transformed Process customer premise access network 3 rd party ISP § Creating new enterprise services § Componentized modules Reduces Risk by: § Easily trialing in target markets § Scaling hardware with demand § Cannibalizing own sales before competitors do metro aggregation network enterprise intranet PSTN Internet ATM residential DSLAM subscriber portal, Qo. S provisioning, & device management business mux edge router hotspot Frame relay Web services invocation framework voice integration & unified messaging service platform integration bus service creation tools instant messaging & presence content management services availability & security services New enterprise focused “sticky” revenue source © 2004 IBM Corporation

IBM Software Group IBM Middleware Solutions for Telecommunications OSS/BSS Optimization Partner Content Enabler Contact IBM Software Group IBM Middleware Solutions for Telecommunications OSS/BSS Optimization Partner Content Enabler Contact Center Optimizer Mobile Services Delivery Next Generation Network Services OSS/BSS Optimization § Meets the challenge of integrating and optimizing systems § Solution enables service providers to integrate processes across systems in a cost effective, flexible manner, then continuously optimize those processes and their IT infrastructure, ultimately integrating Business and IT, lowering operational costs while increasing revenue § Resulting in more flexibility, lower costs, and quicker time to market © 2004 IBM Corporation

IBM Software Group OSS/BSS Optimization Complexity of integrating disparate systems and maximizing hardware utilization IBM Software Group OSS/BSS Optimization Complexity of integrating disparate systems and maximizing hardware utilization Challenges § Lack centralized information Traditional Process BSS OSS § Rapidly respond to customer and market demands § Need to do more with less (fast ROI projects) § Maintain high quality of service, while lowering costs § Bridge gap between IT and business Servers © 2004 IBM Corporation

IBM Software Group OSS/BSS Optimization Large Telecomm in Asia/Pacific Business Challenge § Long lead IBM Software Group OSS/BSS Optimization Large Telecomm in Asia/Pacific Business Challenge § Long lead time for services activation § Lack of real time visibility into service order status § Complicated and unnecessary order entries Solution § End-to-End system integration from customer order through fulfillment, including Siebel, Amdocs, Micromuse and Cramer § Web. Sphere Business Integration, Web. Sphere Business Integration Adaptor for Siebel, Web. Sphere Modeler, Web. Sphere Monitor, Web. Sphere Portal Business Benefits § Reduce work order dispatch time from 5 days to 1 day § Reduce sales administration cost for fulfillment by 50% § Identify customer trouble within 5 minutes vs. 30 -40 minutes previously § Can support 6. 8 million transactions per day on 8 -way server § Able to complete medium to complex integrations at a rate of one per week © 2004 IBM Corporation

IBM Software Group OSS/BSS Optimization Telstra Business Challenge § Manage thousands of proposed process IBM Software Group OSS/BSS Optimization Telstra Business Challenge § Manage thousands of proposed process improvement initiatives § Continuously lower operating costs § Quickly react to market demands Solution § Began company-wide continuous process improvement initiative, modeling process changes to prioritize initiatives § Web. Sphere Business Integration Modeler Business Benefits § 20% performance improvement in endto-end solution activation § 23% improvement in cycle time for ADSL activation § Improved customer satisfaction § Line of Business analysts driving processes, reducing number of development iterations © 2004 IBM Corporation

IBM Software Group OSS/BSS Optimization Large European Telecomm Provider Business Challenge § Support over IBM Software Group OSS/BSS Optimization Large European Telecomm Provider Business Challenge § Support over 200% (CAGR) growth in application services § Provide lowest cost services to SMB market § Remain flexible to offer new solutions on same platform Solution § Low cost hosted application service § IBM Tivoli Intelligent Thinkdynamic Orchestrator, Web. Sphere Portal, Web. Sphere Everyplace Business Benefits § Save 10% in Service Level Agreement penalties § Save 30% in labor for system deployment § Save 25% in hardware AND software purchases © 2004 IBM Corporation

IBM Software Group OSS/BSS Optimization Core Capabilities Delivering the On Demand Operating Environment Integration IBM Software Group OSS/BSS Optimization Core Capabilities Delivering the On Demand Operating Environment Integration Application and Information Integration • OSS and BSS processes, creating flexible and timely responses to business demands Business Modeling • Model processes before implementing changes to reduce cost/risk while accelerating delivery. Business Process Management • Monitor processes continuously to assess performance and the next cost saving process improvement Infrastructure Management Orchestrate • Align IT resources with Business requirements such as prioritized business processes and customer specific service level agreements Provision • Provision assets from a pool of flexible resources to accelerate the delivery of new services, while also reducing hardware management costs • Web. Sphere Business Integration Server • Web. Sphere Business Integration Collaborations for Telco • Web. Sphere Business Integration Adaptors • Web. Sphere Modeler • Web. Sphere Monitor • Tivoli Intelligent Thinkdynamic Orchestrator • Tivoli Provisioning Manager • Web. Sphere Business Integration Connect • Web. Sphere MQ suite • Tivoli Configuration Manager • Tivoli Enterprise Console • Tivoli Identity Manager • Tivoli Monitoring family *Core Products in BOLD © 2004 IBM Corporation

IBM Software Group OSS/BSS Optimization Industry-Specific Middleware § IBM industry-specific middleware § Web. Sphere IBM Software Group OSS/BSS Optimization Industry-Specific Middleware § IBM industry-specific middleware § Web. Sphere Business Integration Adapter for Clarify § Web. Sphere Business Integration Adapter for Metasolv § Web. Sphere Business Integration Adapter for Micromuse § Web. Sphere Business Integration Adapter for Nightfire § Web. Sphere Business Integration Adapter for People. Soft § Web. Sphere Business Integration Adapter for Portal Infranet § Web. Sphere Business Integration Adapter for Siebel § Web. Sphere Business Integration Adapter for Spirent § Web. Sphere Business Integration Adapter for Telcordia § Web. Sphere Business Integration Collaborations for Telecommunications § Industry-specific middleware from Business Partners § Web. Sphere Business Integration Adapter for Convergys (Cygent) § Web. Sphere Business Integration Adapter for CSG § Web. Sphere Business Integration Adapter for Zvolve © 2004 IBM Corporation

IBM Software Group OSS/BSS Optimization ISV Partners Essential Elements of an Integrated Solution © IBM Software Group OSS/BSS Optimization ISV Partners Essential Elements of an Integrated Solution © 2004 IBM Corporation

IBM Software Group OSS/BSS Optimization Services Capabilities § Business Consulting Services § ERP Development IBM Software Group OSS/BSS Optimization Services Capabilities § Business Consulting Services § ERP Development services § Billing services § IT Business Management services § Software Services § Product architecture § Product configuration § Product expertise © 2004 IBM Corporation

IBM Software Group OSS/BSS Optimization Our solution reduces integration costs by up to 70% IBM Software Group OSS/BSS Optimization Our solution reduces integration costs by up to 70% and can decrease order service delivery time by 50% Improves time to business value by: § Integrating across systems Integration Hub § Optimizing existing processes § Maximizing system utilization Operations Support & Readiness (CRM) Services Management Financial Services Business Processes and Workflow § Aligning business processes with available resources Reduces Risk by: § Simulating process change before implementation other Fulfillment Services Assurance Services Billing Services External Pooling & Orchestrating Hardware/ Software § Prioritizing customers and processes across finite resources Lowering costs and increasing flexibility © 2004 IBM Corporation