White Paper Identity Management - boost customer experience and transform business

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1 White Paper Identity Management - boost customer experience and transform business

2 Contents 1 Executive overview The new challenge for operators Market opportunity Join the race with an identity layer Conclusion Executive overview With people increasingly able to access information and communicate wherever they are, the race is on for mobile network operators to play a significant role in the Internet Economy. Never before have so many people across the world had the opportunity to communicate directly with each other. This is creating a new phenomenon - planet Earth as a virtual village of billions of inhabitants. How does this change our behavior? What kind of new business opportunities does it represent? What are the opportunities as well as the threats for individuals? In a 2012 report entitled Subscriber Identity: Telcos Trump Card?, Infonetics states that operators have a near term opportunity to use their unique access to subscriber data to take on the role of the trusted identity provider. The report also says that social networking sites such as Facebook and Twitter are already moving in that direction, allowing subscribers to use their profiles to log in to other web sites. The opportunities for operators far exceed simply providing a portable online identity to their customers. Furthermore, Heavy Readings SDM and Analytics multi-client study from 2011 reveals that Identity Management is ranked as the second highest impact as an ecosystem enabler, after analytics. The same study reports that operators see their number one priority as keeping customers loyal through service personalization. End-users have a similar view. Nokia Siemens Networks annual acquisition and retention study of 2011 showed that heavy users of advanced services, people regarded as high value customers, will become the most prevalent and important subscribers. According to the study, about 45% are willing to pay extra for personalized mobile services, yet their readiness to churn during the next year is 33% above the average in mature markets. To help operators achieve service personalization, Nokia Siemens Networks has pioneered the development of solutions for 2 Identity Management - White Paper

3 Customer Experience Management, achieving leadership in Subscriber Data Management with more than 3.2 billion subscribers and 155 operator customers. Combining telco, IT and web capabilities, Nokia Siemens Networks Identity Management enables true service personalization, simplifies the end-user experience to keep customers and can help Questions: 1. Is your company motivated to look beyond being a mere voice and data bit-pipe? 2. Do you have a plan to enter this new competitive marathon? 3. Do you know what other players are planning? Vision Smartphones everywhere, broadband everywhere, unlimited services and apps but also a large number of predators invading our privacy 2. Operators have transformed their business and are generating new revenue streams, acting as brokers between multiple consumer, government and business segments 3. Operators act as a trusted identity provider as part of an overall customer experience management strategy Identity Management - White Paper 3

4 operators transform their business to monetize the value of subscriber data. Identity Management allows operators to become a Trusted Identity Provider in a world in which the boundaries between the Web and network are becoming increasingly blurred. Operators can generate new revenue streams more quickly and cost effectively by introducing Web service partners, both external and internal, in days rather than months. Many operators have told us that adding a new Web service partner like Google, Microsoft, Yahoo and local Web partners, as well as operator internal services into their trusted circle, can take up to six months due to technical challenges and multiple identity silos. Nokia Siemens Networks Identity Management cross links subscriber and partner identities, reducing this time to days. 2 The new challenge for operators 2.1 Key pain points for operators Operators are finding it too slow and costly to add and maintain trusted relationships with both internal and third party Web services and apps. Both operators and end-users also face a maze of passwords and identities, concerns about identity theft and privacy and complexity across access domains like WiFi, 3G, LTE or fixed broadband. Many operators could also benefit by finding practical and legal ways to monetize customer profile information 2.2 Network demands and revenue profile Between 2011 and 2016, revenue from nonvoice services will almost double from USD 325 Billion to USD 627 Billion (1). However, data traffic is expected to increase almost four fold during the same period, from around 220,000 gigabytes in 2011 to more than 733,000 gigabytes in This means that the revenue obtained from each megabyte of data is expected to decrease by half between 2011 and Operators will be challenged to find new revenue to fill the gap. (1) Informa Telecoms & Media, Mobile content and service forecasts Subscriber expectations Increasingly, information on almost every aspect of our lives employment and personal histories, health and tax records, details of our friends and families is retained across the Internet. Additionally, a variety of personal data from date and place of birth, first school and mother s maiden name to phone numbers, accounts and passport number are held by dozens of different service providers. In fact, a privacy survey of 9,200 interviewees in 14 countries around the globe conducted by the research company Psychonomics for Nokia Siemens Networks reveals that customers are increasingly concerned about the use and misuse of their data. 82% of respondents see privacy as an important topic; 76% are concerned about privacy violations; and 45% of subscribers feel they lack control over their personal data. Only 9% of respondents don t care about data protection in general, whereas 80% of respondents claim to be selective about sharing 4 Identity Management - White Paper

5 their personal data and why. A further 73% are afraid of their personal data being sold to third parties. Which organizations are best placed to assist customers with the task of protecting their privacy and security while at the same time helping them gain value from their personal attributes and Digital Self? Customers expect service providers to help them glean additional benefits whenever they use Internet services, for example, through personalization and ease of use, in a world where boundaries are dissolving between the living room and the market place, social and professional communities, and fixed and mobile networks. 2.4 Business Transformation Who is best positioned to take care of customers privacy and security? In 2012, the Edelman Trust Barometer indicated that distrust amongst consumers was growing; compared to just a year ago, twice as many countries surveyed are now skeptical and fewer countries are neutral. Faith in the banking sector has fallen spectacularly (this was, however, not the case in emerging economies such as China and India). The survey also found that globally, technology was the single most trusted sector, with 79% of respondents saying that they trusted technology companies to do the right thing. Notably, trust in media has increased, with a majority of this increase coming from the trust in social media. This would seem to pave the way for technology companies to play the role of Trusted Identity Provider. While it is true that companies such as Google and Facebook are dominant in this space, previous attempts, by companies such as Microsoft with its Passport initiative, met with a cool reception by consumers. This has since morphed into Windows Live ID, a service largely confined to Microsoft s own websites. Although no definitive candidate for Trusted Identity Provider has emerged, Nokia Siemens Networks believes that operators have the potential to fulfill this role. So far, level of trust has been driven mostly by operational attributes, but the key to building trust in the future lies in societal attributes and this is where operators can gain through their long and trusted relationships with their customers. Enabling the Digital Self Increasingly, information on almost every aspect of our lives is contained in one or more corners of the Internet. Additionally, a variety of personal data are held by dozens of different service providers. Nokia Siemens Networks describes this comprehensive collection of personal information as the Digital Self - the sum of the digital crumbs, fragmented personal and behavioral information left behind every time an individual interacts with a website, uses a mobile phone or another device via a cable or fixed network. The Digital Self also includes information on personal profiles, desires, experiences, needs and behaviors stored in business and Customer Relationship Management systems. The more complete the picture of a Digital Self, the better and more personalized the services the customer experiences and the greater the value the customer can derive from the experience. Nokia Siemens Networks believes that customers would welcome moves in this direction if it brings them real added value. The Trusted Identity Provider In a digital age characterized by complexity and concerns about privacy and security, customers are increasingly drawn to the idea of a Trusted Identity Provider. Nokia Siemens Networks defines a Trusted Identity Provider as an organization that takes responsibility for protecting customers Digital Self information and for authenticating them to third-party web services without the customer necessarily having to disclose any additional personal information. In the Privacy Study, customers Identity Management - White Paper 5

6 Single Single sign sign on/off on/off and and personalized privacy control personalized privacy control Shared insights per service Black list of services and service provider Digital Self Portal Multiple identities Multiple devices and accesses into the cloud Service subscription and tailoring Preference control NSN Privacy in 2009 of 9000 end users: Approximately two thirds of the surveyed users consider Telecom to be the company providing the personal data management portal were asked whether a portal where you could manage and supervise all the permissions you had given to different parties regarding your personal data was an interesting option for them: 69% said probably or definitely yes. Operators can offer personalized services and privacy The road to personalized services and privacy will be part of a three-phase process. The distinctions between these phases will not be marked by breakthrough technical or legislative events, but by a gradual maturity in the management capabilities of the systems and by the maturity of the markets in which customers live and work. 1. Phase One: The Virtual Doorman A virtual doorman acts as a repository for a customer s personal data and authenticates the customer to the various websites and services they use, as well as providing improved customer care and customized services. This phase is about a radically simplified interaction, including the opportunity for customers to maintain their profile information and manage their identity securely. Example: Single-sign-on, federation, authentication, network to IT account linking. 2 Phase Two: The Virtual Concierge Customers will be offered support according to their needs, just as with concierge services. This involves customers allowing service providers access to certain details of their Digital Self. In return, they will be offered a whole range of different services customized to their preferences, meaning that the Internet will start to properly support customers lifestyles. Customers entrusting their Digital Self to service providers will hold them responsible for the safety and privacy of the Digital Self. Any violation of this pledge will result in negative word of mouth. Example: Personalized tariffs, true locationbased services and attribute brokering. 3. Phase Three: The Virtual Butler The customer will now be a community of one and is provided with a truly individual experience in real-time. Customers in this era will have mastery over their Digital 6 Identity Management - White Paper

7 Self: full control over what they choose to reveal to whom. This mastery allows customers to have a comprehensive lifestyle support system, equal to a full-service virtual butler. Any violation of privacy and security rights will be instantly recognized by monitoring tools employed by the customer and, by the connectedness of the customer, and will be reported across the Internet within seconds. Example: Customers will receive pro-active assistance from service providers, such as reminders of a forthcoming wedding anniversary and a list of suitable gifts, occasions or weekend breaks. The good news is that while progressing through the above phases, operators with today s technology can make a substantial contribution to protecting enduser privacy. 3 Market Opportunity 3.1 Consumer market opportunity Based on the survey results, respondents fall into three sub-groups: The Afraid, who seek to protect their Digital Self data by minimizing the disclosure of this information. The Selective, a pragmatic group that is generally more willing to embrace the risks to privacy in return for the value they receive from doing so. The Uninvolved who tend to be younger, less likely to own a credit card and who lack awareness of privacy issues. There are significant variations in the proportion of each sub-group within regional samples, with developed countries such as Germany, Australia and Canada generally having the highest proportion of the Afraid (49-44%) and China and Taiwan having the least (23-24%). The survey also found that 52% of respondents claim to be very selective with whom they share information. Yet, their behavior in revealing personal data on social networking sites was largely identical to that of the group as a whole, suggesting a discrepancy between their stated and actual behavior. Respondents were also asked about a number of service scenarios, for example, a secure payment system in which all online payments could be made through the service provider. They were asked to rate the value of such a service before and after being told that personal information would have to be disclosed for it to operate effectively. Interest in all the service scenarios declined after the need for disclosure was made clear. However, in the secure payments example above, interest remained unchanged for 48% of respondents and actually increased for 8%. The survey also found that Selectives were more receptive and that the clearer and more concrete and measurable a service s benefits are, the more sustainable was the interest in it. This suggests operators should identify and target new services at Selectives and create a value proposition for any new service. Identity Management - White Paper 7

8 IDM Feature End user benefits Web 2.0 party benefits Operator benefits Single Sign On/Off Improved service experience through simplified sign-on (less admin time) Fewer barriers (time and sign-on) to use of new apps/services Improved security and privacy Higher app/service adoption by removing time/log-in barriers Increased pool of new customers Up to doubled usage and offload via public Internet i.e. WiFi like VoIP as a service Greater pull from Web parties to join operator s circle of trust for more revenue opportunities Improved customer satisfaction with smooth and rich data experience Digital self portrait More control of shared personal data with parties involved via single portal (eg personal, work etc) Less fear of exploring new services Ability to flag desired personal services to range of Web 2.0 parties Extend reach to end users previously afraid of privacy or identity violations over the Web Target end users according to direct requests for personal services Increased customer security builds trust in operator and more use of services Greater pull from web parties to join operator s circle of trust for more revenue sharing opportunities Attribute query More personalized services from Web providers (quick and easy access to chosen services) More relevant advertisements (less spam) Fewer barriers (time and sign-on) to using new, desirable apps/ services requiring validation (eg. Gambling) Increased hit rate with more relevant advertising (up to 75%) Lower marketing costs with targeting specific to profile/ location/age etc Faster time to market for own services to new customer pool Offer personalized higher value services based on queried information Revenue stream from advertisers for shared data Revenue stream from Web 2.0 parties for valuable attributes like legal age to activate a service Less lead time to add third party services, for faster revenue collection Enhanced access via IDM to other identity providers (eg. government certification) Authorization / authentication Trusted or strong authentication of end user needs (eg. mobile payments) Control of unauthorized activity (eg. parental control or child location) Faster activation of service with fewer barriers to use of new apps/services Reduced revenue leakage due to less identity theft Increased customer pool for new services (eg. mpayments to banks) Faster and lower cost of activation or enablement of services (eg. legal age) Revenue stream for providing authentication (eg. legal age verification) Improved customer service with convenience of additional services (eg. mpayments) Identification and statistics Flexibility to use any of multiple identitites to achieve customer needs Protection of identity from cyber-attack Ability to make anonymous purchases Guaranteed identity to provide respective services Extend reach to end users previously afraid of privacy or identity violations over the Web Usage feedback to fine-tune targeting and marketing campaigns Greater pull from Web parties to join operator s circle of trust given stong identification Maximum visibility of end users through their multiple identities Building status as trusted identity partner for end users Revenue for identity usage statistics reports IDM brings real value to all parties 8 Identity Management - White Paper

9 3.2 Enterprise Market opportunity Operators can access similar opportunities in enterprises to those in the consumer sector. Providing facilities such as Single Sign On, and more personalized services that suit the company and its employees could help operators make major inroads in the enterprise sector. 3.3 The road to new revenue streams What value does identity bring to the operator? How can we go from features to benefits to monetization? The table below examines the typical features of a telco identity management that provides SSO, Digital Self (privacy) portal, attribute query, authorization, authentication, identification, and statistics. 3.4 Identity Management business analysis It is possible to roughly estimate how much revenue an operator could expect to generate with the help of an Identity Management system to leverage subscriber assets such as dynamic and static profile. The figure below is a simulation of the revenue that can be generated in six years based on the following assumptions. The operator has 10,000,000 subscribers in year 1 with a growth rate of 2% per year. The number of subscribers that use web-based services starts at 10% and grows to 50% by year 6. These web services can be assessed by the most popular web browsers using http(s). Then, by assigning values to the section Services based on web subs, we see that the cumulative revenue over six years is approximately 161 million. The model shown below takes into account revenue generated from a number of basic use cases such as: Web/app simplified sign-on/off User attribute verification and sharing Personalized Digital Self Management Strong authentication service Web/app service provider portal Targeted advertising enhancement The number of use cases that can be enabled is limited only by the imagination. Nokia Siemens Networks Identity Management is based on our industry-leading Subscriber Data Management. At its heart is an open, real-time directory server that provides a unified, real-time view of subscriber data, which can be shared easily with partners. For end-users, Identity Management provides a vastly improved experience with: Web-based single sign-on, one entry point over multiple devices, accesses and services. Personalized web pages Anonymous account provisioning, on-demand Anonymous federation and queries (optimizes content delivery to end-user devices) Click2call from social networking sites without revealing real phone number Nokia NSN Identity Siemens Management Neworks Identity Business Management Analysis Business Analysis IDM services subs 6,000,000 12,000,000 Market/Subscribers Cumulative revenues (Millions) ,000,000 10,000, active subs web subs 4,000,000 8,000,000 Simplified sign on User Attribute Verification ,000,000 6,000,000 Digital Self Management Parental Control Child Locator ,000,000 4,000,000 Privacy Enhancement 60.0 Strong Authentication 1,000,000 2,000,000 Service Provider Portal 40.0 Targeted Advertising Enh Targ.Adv. Enh. (campaign) Cum Y1-Y6 active mobile / IDM subs Revenue Simplified sign on User Attribute Verification Digital Self Management Parental Control Child Locator Privacy Enhancement Strong Authentication Service Provider Portal Targeted Advertising Enh. Targ.Adv. Enh. (campaign) Identity Management - White Paper 9

10 Online businesses facing the challenges of building up and maintaining a customer base in a profitable way benefit from a single trusted identity federation partner with unique telecommunication authentication capabilities. This allows cost-effective legal age verification, a faster build-out of communities, an alternative charging method, targeted advertising and secure and reliable Identity Management. For operators, there is an opportunity to monetize with several service options. These include legal age/identity verifications and a child locator - cross linking of parent-child accounts allows a parent to identify the child s location. Also possible is banking authentication via mobile with multiple network enhanced methods, co-operative payments, targeted advertising and operator-branded Internet services. 4 Join the race with an identity layer 4.1 Telco identity layer key elements By adding Nokia Siemens Networks Identity Management to a network, operators can introduce carrier grade performance, scalability, reliability and network enhanced authentication to classical enterprise Identity Management solutions. Its scalability supports hundreds of millions of users as compared to enterprise solutions that are designed for a maximum of hundreds of thousands of users. Telco operators benefit by generating additional revenue streams by acting as a Trusted Identity Provider to customers and Web services, multimedia content providers and internal users. Customers benefit by having a simpler, more secure and private way of accessing Web multimedia content and services. Not only is the subscriber experience enhanced externally, but also internally, with simplified access to customer care, billing and other services. The core elements of Nokia Siemens Networks Identity Management include: Single Sign-on for federated services. Different service providers, either internal applications or external partners, form a circle of trust. The user signs in only once and can access all services in that circle. Combined with secure authentication and account linking, the user experiences comfortable, but secure access to online applications Secure authentication via different authentication modes including Two-Factor -authentication: For example the user can be authenticated based on the IP-data session or based on the mobile device ( factor 1, something that the user has ) plus the username and password ( factor 2, something that the user knows. This method better protects the user s privacy, because the telecommunication carrier knows the user s access to the network. Account/identity linking, including identities specific for the telecommunication area. Nokia Siemens Networks Identity Management acts as a carrier-wide translator of identities, both identities known by Internet players and those used by telecommunication carriers, like IMSI, IMPU/IMPI, and MSISDN etc. In this way each online application gets exactly the kind of identity that it knows and understands. By extending classical Internet identities into the telecommunication arena, Nokia Siemens Networks Identity Management is tailored for the needs of telecommunications carriers. End-user profile access and attribute sharing with third parties: Online applications need the particular attributes of the user, for example an IPTV application may need the screen resolution of the user s device. Nokia Siemens Networks Identity Management allows controlled access to such user attributes, respecting the user s privacy and protecting the telecommunication provider s subscriber base against external third-party applications 10 Identity Management - White Paper

11 User- and partner specific Policy Management: Nokia Siemens Networks Identity Management supports policies per service provider, for example policies defining which attributes a federation partner, like the IPTV provider from the example above, is allowed to retrieve and which they are not. 4.2 Benefits of a telco identity layer A telco identity layer can transform a business, enabling it to act as broker to simplify and enhance the customer experience and generate revenue from third parties. It can also allow the operator to quickly add new Web/ App services to the circle of trust in days instead of months, with lower costs, bringing revenue into the brokering chain more rapidly. The operator can also act as Trusted Identity Provider for end users and as part of a larger commercial ecosystem. It also enables end user revenue to be gathered over multiple access methods including WiFi or open Internet, in addition to the operator s own radio or fixed network, thus increasing service usage. End users can also access an operator s internal and partner services via WiFi, allowing off-loading of the network Identity Identity Management Architecture Enables new internet revenue streams for network operator OAuth SAML Operator subscriber profiles unified under SSO and common profile WAP MMSC Stream Operator services One-IDM Common repository for subscriber information Payment One-NDS IMS Policy Server TCO-optimized IDM for multi-access and convergence AAA/BSF HLR HSS WiMAX, WLAN xdsl 3GPP (PS) 3GPP (CS) 5 Conclusion The good news for operators is that it is not too late to join the race. Operators can quickly position themselves for new and exciting opportunities. With their many assets, operators are in a very good position to take a leading position in the Internet value chain. The interests of operators and the interests of online businesses are converging, and opportunity waits at the crossroads. To seize this opportunity, operators will need to transform their businesses, simplify and improve the user experience and monetize the value of subscriber data. Identity Management - White Paper 11

12 Nokia Siemens Networks P.O. Box 1 FI NOKIA SIEMENS NETWORKS Finland Visiting address: Karaportti 3 ESPOO Finland Switchboard (Finland) Switchboard (Germany) Order No. C WP EN Copyright 2012 Nokia Siemens Networks. All rights reserved. Nokia is a registered trademark of Nokia Corporation, Siemens is a registered trademark of Siemens AG. The wave logo is a trademark of Nokia Siemens Networks Oy. Other company and product names mentioned in this document may be trademarks of their respective owners, and they arementioned for identification purposes only. This publication is issued to provide information only and is notto form part of any order or contract. The products and services described herein are subject to availability and change without notice. Copyright 2012 Nokia Siemens Networks. All rights reserved. Nokia is a registered trademark of Nokia Corporation. Siemens is a registered trademark of Siemens AG.

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