Alcatel-Lucent Managed Services Managed Transformation

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1 Alcatel-Lucent Managed Services Managed 1

2 The telecommunication industry is undergoing a massive re-orientation, driven by the challenges faced by telecom operators and changes in business environment. Increased end-user expectations in the service quality, breadth of services, time to market, declining revenue and competition are driving operators to transform their network infrastructure and operations to ensure optimized costs (CapEx & OpEx), flexible and scalable operations, ease of new services introduction and cope with frequent technology change. In parallel operators must maximize the monetization of their legacy networks and optimize the associated operations costs. 2

3 Challenges customers face today Market demand Technology is maturing Competition Demand for IP based products and services Demand for instant innovation and increased personalization Data growth Ultra broadband access Software Defined ing (SDN), Functions Virtualization (NFV) and the evolution of the Cloud convergence Need to claim the value of the network Need to capitalize on customer proximity Measuring UBB % 3rd party Service Lifetime % IP revenue Operating cost penetration content agility value per gigabyte Key objectives and customer evolution Customer objectives: Reduce the cost of operations (TCO and OpEx) Improve the quality of services and end-customer experience End-to-end visibility and accountability of the services performance Significant decrease in time to market Consolidate network and systems De-complexification of networks, processes and systems Future proofing of the customer services operations Optimal utilization of the CapEx (asset utilization) Defensive Position Resond to revenue decline by TCO reduction Wrong place to be Revenue decline and OPEX growth TCO reduction Right place to be Revenue growth and reduced OPEX Offensive position Invest to increase revenue, but TCO increase Service experience Revenue growth 3

4 Driving the need to transform business and operations Well-defined packages minimize risk and ensure clarity of responsibilities split definition Alcatel-Lucent has the optimal blend of solution, competence and experience to support Customers in business innovation and planning and execution. Alcatel-Lucent Managed solution includes helping Customers find the best scenario from a technology, operations and financial aspect; transform network and operations and deliver measurable business results and improved customer experience. Operational advantages of this solution include mid-term optimization, services quality and operational efficiencies. This may also be coupled with a Service Management initiative, which focuses on end-user customer satisfaction and services improvement. Managed is a modular solution with network and operations as key components. Alcatel-Lucent offers The Managed solution in the following three flavors: Managed Solution options End to end network 1 operations outsourcing TCO based 2 outsourcing 3 program management assistance Ops Operate and manage (Continues improvement) Reverse Ops Operate and manage (Continues improvement) Reverse Operate and manage by customer +3 years 3-6 M +3 years 3-6 M 1+ years No network Single/multi technology network Overall program management Single/multi technology network No operations assistance Overall program management responsibility - ALU responsibility - customer Integrated with 4

5 Managed solution attributes TRANSFER TRANSFORMATION ASSISTANCE Process Organization Tools Processes red and aligned to the Alcatel-Lucent Blueprint Organizations is red to Alcatel-Lucent and transformed towards the blueprint Implementation of MS blueprint standard toolset (NETCOOL, REMEDY) Customer tools enhancements (Automation) Rapid tool deployment Processes assistance with the Alcatel-Lucent Expert Team Organization assistance with the expert team Tools as a service (FDM, Proactive care,...) OSS ATM-to-IP Customer experience Fixed Broadband access Legacy SDH migration to nextgen SDH Legacy Ethernet/IP to future IP/MPLS/Ethernet PSTN voice migration to IMS PSTN/ISDN consolidation Integrated network management Close cooperation and partnership during the entire engagement process is the key to success IDENTIFY AND ENGAGE MS PRODUCT ALIGNMENT BENEFIT DEMONSTRATION EXECUTION Customers with Product mapping and Commercial business MS challenge profile for selection case, opex / capex / Process The correct cashflow modelling Scoping Key business objectives product Operational VP, more Due Diligence (KBO) consulting, / solution for the specific opex, quality, Solution assessment and priority customer requirements speed and revenue Negotiations Initial Value Proposition calculations Execution Reversal 5

6 Services, Elements Monitoring Provisioning and Surveillance Capacity Incident Restoration & Mgmt.. Problem Resolution Incident Restoration Change Problem Resolution Management Preventive Access and Maintenance. Security Engineering Optimization GSD/DC Incident Restoration Problem Resolution Customer Service Desk Customer interface Overall delivery coordination Continuous Improvement RBC/CAL Customer NOC Field Force Management Corrective and Preventive maintenance Provisioning EHS Service Request Mgmt. Customer Regional Logistics Center RESO Adv. Exchange & Repair Customer Inventory Management FSO GWC TEC/ R&D Well defined execution process Scoping (1-2 months) Understanding of challenges and KBO that stand behind the initiative Definition of candidate targets Framing the contractual scope Time for Customer and Alcatel-Lucent to prepare for DD Solution is being defined progressively as the Due Diligence data are made available Due Diligence (DD) (1-2 months) Solution finetuning thanks to the feedback from Negotiations Cost model understanding and costs quantification Processes, organization, tools & network inventory Operational & Performance assessment Selected domains analysis (HR, security, IT services, BC/DR, EH&S ) Solution Design (1-2 months) model definition Domain solutions definition (processes, organization, tools, network) Performance measurement proposal Contract Negotiations (1-3 months) Engagement commitment Dedicated organization Contract Award Template-based Escalation management/governance Delivery: Kick Off journey CMO Current starting Mode point: of starting point: Organization silos Geographical proliferation Future FMO Mode target: of target: Standard Standard Delivery Delivery Model Model (SDM) (SDM) MANAGED SERVICES TRANSFORMATION Customers Alcatel-Lucent Global Service Delivery Managed Services Customer Assurance Leader Field Maintenance Services Global Welcome Center Repair & Exchange Services ORGANIZATION Organization Technical Assistance centers, Technical Engineering Center, R&D for all Alcatel-Lucent technologies Job and skills Harmonization Standard Standard tools tools architecture T2R/L2C process map Standard Measurements KPIs/SLAs/OLAs Alcatel-Lucent Managed Services Managed Solution provides value to the customer in line with their KBOs. Following is the linkage of Customer KBOs with the Delivery Model Enablers EXPECTED CUSTOMER BUSINESS BENEFITS CUSTOMER FINANCIAL/ /OPERATIONAL BENEFITS BENEFITS DELIVERY MODEL MODEL IMPACT IMPACT DELIVERY DELIVERY MODEL MODEL ENABLERS ENABLERS Create new revenue New Business & Asset Monetization Streams 6 Increase ARPU Reduction of Incidents Reduction of Problem Tickets Service Impacting Events Alarm Filtering, Correlation and Auto-Ticketing End-to-End Ticket Management & Follow-up Proactive Problem and Knowledge Management

7 Managed Services operating model reduces the cost and the risk Current Mode of Flatter ALU Mode of Cap the OPEX Ideal transition OPEX ($) Reduce the standard delivery time Shorter Time Present Legacy / Operation Transition Hybrid / Operation Future Converged / Operation Alcatel-Lucent is engaged with multiple customers covering multi-technology and multi-vendor environments. This experience adds significant value in the delivery of operational and business processes TECHNOLOGY INNOVATE TRANSFO RM CARE Market-leading technology profile- Unmatched innovation UBB platform and optical / routing and technology E2E operations ownership NW and / operations PSTN Vendor, technology and services expertise EXPERTISE INNOVATE TRANSFO RM CARE Advance service delivery model- Proven tools & processes 64% improvement in MTBF 16-20% TCO optimization 25% OpEx optimization 25% decrease in tickets 50% reduction in MTTR EXPERIENCE INNOVATE TRANSFO RM CARE Real-world experience in and Managed +10 yrs of experience in projects +300K multi-vendor network elements managed +20 yrs of experience in Managed Services Alcatel, Lucent, Alcatel-Lucent and the Alcatel-Lucent logo are trademarks of Alcatel-Lucent. All other trademarks are the property of their respective owners. The information presented is subject to change without notice. Alcatel-Lucent assumes no responsibility for inaccuracies contained herein. Alcatel-Lucent Copyright 2015 Managed Alcatel-Lucent. Services All rights - Managed reserved. PR EN 7

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