BEST PRACTICES RESEARCH

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1 Frost & Sullivan We Accelerate Growth

2 Contents Background and Company Performance... 3 Industry Challenges... 3 Product Family Attributes and Business Impact... 3 Conclusion... 6 Significance of Product Leadership... 7 Understanding Product Leadership... 7 Key Benchmarking Criteria... 8 Best Practice Award Analysis for Accanto Systems... 8 Decision Support Scorecard... 8 Product Family Attributes... 9 Business Impact... 9 Decision Support Matrix The Intersection between 360-Degree Research and Best Practices Awards Research Methodology Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices About Frost & Sullivan Frost & Sullivan We Accelerate Growth

3 Background and Company Performance Industry Challenges With the increase in data traffic across network infrastructure, operators are facing an uphill struggle in deploying an adequate number of network probes, on top of their network plane, to monitor quality of experience (QoE) and quality of service (QoS) from the customer s perspective. Network operators can monitor such metrics through probe-agnostic tools and can optimize the quality of the network, which is gaining more relevance, particularly with the advent of the virtualization of network functions. Probe-agnostic and probe-based network monitoring tools give a comprehensive and holistic view of key performance indicators (KPI) and help network operators gauge the overall radio access network. However, as KPIs are not gauged from an individual perspective, network operators could possibly overlook customers of high value, despite the fact that generic network metrics look normal. Network operators require a cost-effective solution that can monitor customer satisfaction and rank individually based on urgency, thereby providing a more holistic approach to end-user monitoring. The urgency of such a cost-effective solution cannot be stressed enough, especially with the implementation of small cells and the advent of self-organizing networks (SON) and cloudbased radio access networks (CRAN). The complexity of the network infrastructure is growing at a high rate and is further enhanced by long-term evolution (LTE) deployments, on top of legacy-based 2G and 3G networks. Network visibility can be reduced substantially, and a simple anomaly that could come from anywhere can have a detrimental effect on network quality. Network operators need to be proactive in neutralizing these anomalies when they appear. As network complexity grows, the time when an anomaly is detected to the moment it has been resolved should become closer to real-time conditions. Product Family Attributes and Business Impact Match to Needs Accanto Systems intelligent Customer Experience Management (icem) product is a comprehensive set of tools that are connected to a number of probe-based and probeagnostic network monitoring and analysis systems. Network operators leverage this product to understand actual QoE perceived by the end user by measuring KPIs from a minimum of 5 data sources which include the core network, the radio network, the service itself, the end user, and the end user s device. The individual QoE metrics are then fed into the system s algorithm, which computes technical promoter scores (TPS) for those individuals. TPS is a numeric value representing the actual network quality that is near real time, which is compared with the net promoter scores (NPS) obtained through surveys dispatched to end users. NPS values are calculated by determining the number of satisfied and dissatisfied customers on the ground. The correlation between NPS and TPS is observed and the difference in values, if any, needs to be numerically brought to a minimum. This process is Frost & Sullivan We Accelerate Growth

4 done through network planning and optimization methods that include enhanced customer experience analytics, root cause analysis, and recommendations that will enhance QoE and QoS metrics. Each customer is graded based on various parameters such as whether or not the end user is part of an enterprise or if the network operator s customer has a degree of importance over others. Basically, the entire end-user group is prioritized based on the average revenue generated per person. The icem product is essentially a network management system that proactively neutralizes anomalies that could creep up in the network. The solution significantly reduces the degree of discontent that could permeate the customer base, particularly among customers who have a high degree of importance from a revenue generation perspective. Design The user interface incorporated into the icem product provides its engineers with a one-stop comprehensive view of the network s performance. The geo-location interface provides a schematic representation of customer experience in real time within a particular geographic location. The degree of importance associated with each customer is color coded. For instance, red pixels represent VIP customers who are experiencing significant issues with their network quality, ensuring that those issues are not easily overlooked by network operators. KPIs associated with each customer can be brought up with a click of a button. By comparing network data with historic information, network engineers can create a pattern and predict future events on the network with a higher rate of accuracy. In addition, probable causes for disruption in normal situations are listed automatically, along with the degree of impact they might have on the network. The sleek design of the icem user interface enables the network engineer to identify a dissatisfied customer of potentially high importance, select that customer, and incorporate the necessary changes by comparing historic data trends and active issues based on recommendations generated automatically by the system. Product/Service Value In 2013, Accanto Systems partnered with Actian Corporation, a specialist in Big Data analytics. By successfully leveraging the Actian Vector into its own icem product, Accanto Systems provided its end users with an enhanced database and number crunching capabilities, compared to what was offered by its competitors. With the capability of generating over 1.4 million measurements per second through a single server, the system significantly reduces the amount of hardware required and, hence, the capital investment associated with procuring such hardware. Actian s Vector solution is one of many other solutions from various third-party vendors that have successfully integrated into the icem product suite. By leveraging Big Data Frost & Sullivan We Accelerate Growth

5 technologies into its own solution, Accanto Systems can offer its end users a degree of scalability that is unparalleled to any other solution offered in the market today. Partnerships with specialists from other verticals enhance an open eco system in which end users can operate. Partnerships with network monitoring participants such as NetScout Systems enable the operator to assimilate information using NetScout probes and feed it into the icem solution for further processing. By assimilating information from the network infrastructure by means of probes as well as from the operations support system (OSS), the icem product can compute a QoE that has a higher degree of accuracy than any other. Human Capital An organization s degree of success is measured by the ingenuity of its engineers. Since its establishment in 1996, Accanto Systems has witnessed a high rate of year-on-year (YOY) growth, which was primarily achieved through the acquisition of highly skilled talent from a broad range of spectrums across the mobile and telecommunications industry. The degree of cross domain expertise enables the company to assist its end users who are typically from a broad range of telecommunications background worldwide. A trend that is gaining more relevance YOY is the shift from traditional customer relationships to one built upon mutual partnerships. End users prefer that network testing vendors take an equal share of responsibility during pre-deployment of the network infrastructure. The high degree of versatility associated with each engineer at Accanto Systems, in addition to the high degree of cross domain expertise that cumulatively represents over 60 years of industry know-how, enables Accanto Systems to assist its end users better and ensure they obtain the most out of its product. Growth Potential Based out of Finland, Accanto Systems was founded through the merger of LTE innovation and Sunrise Telecom s Protocol Product Group (PPG). Since its inception in 1996, the company has been a specialist in protocol analyzers and network monitoring systems. The organization witnessed restructuring after the sale of its probe-based network monitoring business unit to NetScout Systems in 2012 and the acquisition of InstantCEM in October These events helped the organization shift its focus to and re-enforce its commitment in the area of customer experience management. Today, the organization is an established provider and a sought after consultant in its area of specialization. Unlike most other market participants, the company s success is attributed to its focus on inherent problems that its end users face on a daily basis, rather than provide a product with a wide scope. Over the years, Accanto Systems success has been recognized through many accolades, and the company has witnessed an acquisition rate of 2 network operators YOY. At present, Accanto Systems caters to a number of Tier I network operators, including Elisa, the Vodafone Group, and Orange. With its unwavering ability to offer superior customer experience enhancement solutions to its end users, the potential list Frost & Sullivan We Accelerate Growth

6 of network operators is bound to increase through the years. Conclusion Accanto Systems icem is an innovative customer experience enhancement product that improves customers QoE on a network. The icem algorithm, which forms the backbone of the product, proactively monitors and analyses the network infrastructure. It provides the network operator with a greater degree of visibility into its network, thereby providing QoE and QoS metrics that have a higher degree of accuracy and substantially reducing the degree of discontent experienced by its customers. With the proliferation of CRAN expected to grow at the high rate of 40% YOY, the urgency of such solutions among network operators is expected to change in direct correlation. Frost & Sullivan is proud to bestow the 2015 Product Leadership award to Accanto Systems. Frost & Sullivan We Accelerate Growth

7 Significance of Product Leadership Ultimately, growth in any organization depends upon customers purchasing from your company, and then making the decision to return time and again. A comprehensive product line, filled with high-quality, value-driven options, is the key to building an engaged customer base. To achieve and maintain product excellence, an organization must strive to be best-in-class in three key areas: understanding demand, nurturing the brand, and differentiating from the competition. Understanding Product Leadership Demand forecasting, branding, and differentiation all play a critical role in finding growth opportunities for your product line. This three-fold focus, however, must be complemented by an equally rigorous focus on pursuing those opportunities to a best-in-class standard. Customer communications, customer feedback, pricing, and competitor actions must all be managed and monitored for ongoing success. If an organization can successfully parlay product excellence into positive business impact, increased market share will inevitably follow over time. Frost & Sullivan We Accelerate Growth

8 Key Benchmarking Criteria For the Product Leadership Award, Frost & Sullivan analysts independently evaluated two key factors Product Family Attributes and Business Impact according to the criteria identified below. Product Family Attributes Criterion 1: Match to Needs Criterion 2: Reliability and Quality Criterion 3: Product/Service Value Criterion 4: Positioning Criterion 5: Design Business Impact Criterion 1: Financial Performance Criterion 2: Customer Acquisition Criterion 3: Operational Efficiency Criterion 4: Growth Potential Criterion 5: Human Capital Best Practice Award Analysis for Accanto Systems Decision Support Scorecard To support its evaluation of best practices across multiple business performance categories, Frost & Sullivan employs a customized Decision Support Scorecard. This tool allows our research and consulting teams to objectively analyze performance, according to the key benchmarking criteria listed in the previous section, and to assign ratings on that basis. The tool follows a 10-point scale that allows for nuances in performance evaluation; ratings guidelines are illustrated below. RATINGS GUIDELINES The Decision Support Scorecard is organized by Product Family Attributes and Business Impact (i.e., the overarching categories for all 10 benchmarking criteria; the definitions for each criteria are provided beneath the scorecard). The research team confirms the veracity of this weighted scorecard through sensitivity analysis, which confirms that small changes to the ratings for a specific criterion do not lead to a significant change in the overall relative rankings of the companies. Frost & Sullivan We Accelerate Growth

9 The results of this analysis are shown below. To remain unbiased and to protect the interests of all organizations reviewed, we have chosen to refer to the other key players as Competitor 2 and Competitor 3. DECISION SUPPORT SCORECARD FOR PRODUCT LEADERSHIP AWARD Measurement of 1 10 (1 = poor; 10 = excellent) Product Leadership Product Family Attributes Business Impact Average Rating Accanto Systems Competitor Competitor Product Family Attributes Criterion 1: Match to Needs Requirement: Customer needs directly influence and inspire the design and positioning of the product family Criterion 2: Reliability and Quality Requirement: Products consistently meet or exceed customer expectations for performance and length of service Criterion 3: Product/Service Value Requirement: Products or services offer the best value for the price, compared to similar offerings in the market Criterion 4: Positioning Requirement: Products or services unique, unmet need that competitors cannot easily replicate or replace Criterion 5: Design Requirement: The product features an innovative design, enhancing both visual appeal and ease of use Business Impact Criterion 1: Financial Performance Requirement: Strong overall financial performance in terms of revenues, revenue growth, operating margin and other key financial metrics Criterion 2: Customer Acquisition Requirement: Product strength enables acquisition of new customers, even as it enhances retention of current customers Criterion 3: Operational Efficiency Requirement: Staff is able to perform assigned tasks productively, quickly, and to a high quality standard Frost & Sullivan We Accelerate Growth

10 Business Impact BEST PRACTICES RESEARCH Criterion 4: Growth Potential Requirements: Product quality strengthens brand, reinforces customer loyalty and enhances growth potential Criterion 5: Human Capital Requirement: Company culture is characterized by a strong commitment to product quality and customer impact, which in turn enhances employee morale and retention Decision Support Matrix Once all companies have been evaluated according to the Decision Support Scorecard, analysts can then position the candidates on the matrix shown below, enabling them to visualize which companies are truly breakthrough and which ones are not yet operating at best-in-class levels. DECISION SUPPORT MATRIX FOR PRODUCT LEADERSHIP AWARD High Accanto Systems Competitor 2 Competitor 3 Low Low Product Family Attributes High Frost & Sullivan We Accelerate Growth

11 The Intersection between 360-Degree Research and Best Practices Awards Research Methodology Frost & Sullivan s 360-degree research methodology represents the analytical rigor of our research process. It offers a 360-degree-view of industry challenges, trends, and issues by integrating all 7 of Frost & Sullivan's research methodologies. Too often, companies make important growth decisions based on a narrow understanding of their environment, leading to errors of both omission and commission. Successful growth strategies are founded on a thorough understanding of market, technical, economic, financial, customer, best practices, and demographic analyses. The integration of these research disciplines into the 360-degree research methodology provides an evaluation platform for benchmarking industry players and for identifying those performing at bestin-class levels. 360-DEGREE RESEARCH: SEEING ORDER IN THE CHAOS Frost & Sullivan We Accelerate Growth

12 Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices Frost & Sullivan Awards follow a 10-step process to evaluate award candidates and assess their fit with select best practice criteria. The reputation and integrity of the Awards are based on close adherence to this process. STEP OBJECTIVE KEY ACTIVITIES OUTPUT 1 Monitor, target, and screen Identify award recipient candidates from around the globe Conduct in-depth industry research Identify emerging sectors Scan multiple geographies Pipeline of candidates who potentially meet all bestpractice criteria 2 Perform 360-degree research Perform comprehensive, 360-degree research on all candidates in the pipeline Interview thought leaders and industry practitioners Assess candidates fit with best-practice criteria Rank all candidates Matrix positioning all candidates performance relative to one another 3 Invite thought leadership in best practices Perform in-depth examination of all candidates Confirm best-practice criteria Examine eligibility of all candidates Identify any information gaps Detailed profiles of all ranked candidates 4 Initiate research director review Conduct an unbiased evaluation of all candidate profiles Brainstorm ranking options Invite multiple perspectives on candidates performance Update candidate profiles Final prioritization of all eligible candidates and companion best-practice positioning paper 5 Assemble panel of industry experts Present findings to an expert panel of industry thought leaders Share findings Strengthen cases for candidate eligibility Prioritize candidates Refined list of prioritized award candidates 6 Conduct global industry review Build consensus on award candidates eligibility Hold global team meeting to review all candidates Pressure-test fit with criteria Confirm inclusion of all eligible candidates Final list of eligible award candidates, representing success stories worldwide 7 Perform quality check Develop official award consideration materials Perform final performance benchmarking activities Write nominations Perform quality review High-quality, accurate, and creative presentation of nominees successes 8 Reconnect with panel of industry experts Finalize the selection of the best-practice award recipient Review analysis with panel Build consensus Select winner Decision on which company performs best against all best-practice criteria 9 Communicate recognition Inform award recipient of award recognition Present award to the CEO Inspire the organization for continued success Celebrate the recipient s performance Announcement of award and plan for how recipient can use the award to enhance the brand 10 Take strategic action Upon licensing, company may share award news with stakeholders and customers Coordinate media outreach Design a marketing plan Assess award s role in future strategic planning Widespread awareness of recipient s award status among investors, media personnel, and employees Frost & Sullivan We Accelerate Growth

13 About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages almost 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents. To join our Growth Partnership, please visit Frost & Sullivan We Accelerate Growth