Digital Operations:

Rise of a New Species?

Sponsored by

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July 17, 2019
 Today’s Speakers

James Crawshaw Andrew Burrell

Senior Analyst Head of Marketing, Digital Operations

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Agenda

• Introduction
• Survival of the fittest: why change is needed
• The rise of a new species: Nokia’s solution
• Key takeaways
• Audience Q&A

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Introduction: Network and service operations

Network & service operations

Monitoring Analytics Automation

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Introduction: Monitoring

• BT examples

• Better monitoring is key to delivering a cloud-like experience

• 100s of monitoring systems
• Current needs driving in-house development

• Telemetry is key to improving customer experience

• Detect home router problems
• Aggregation and CDN network
• Enterprise services including cloud

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Introduction: Analytics

• CenturyLink - from visualization to prediction

• Self-healing network
• Embed AI in all processes from quote to cash

• BT – from big data to AI

• BDA led to better resource allocation and customer experience
• AI techniques help overcome poor inventory data quality
• AI for alarm management and anomaly detection

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Introduction: Automation
• AT&T: AI for Hyper-Automation
• Dispatch trucks
• RCA

• CenturyLink: business-owned automation

& enhancing RPA with AI
• Business units leverage a common CoE
• 300 RPA bots

• Epsilon: Automation for Scalability

• Provisioning, monitoring, inventory, service management

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Poll question #1

How are you currently using AI and automation in your operations?

A. Low level of basic automation (no AI)

B. Investigating automation using AI
C. Trialling automation using AI in a few areas
D. Automation using AI is applied broadly across operations

8 © Nokia 2019
 Survival of the
fittest: why
change is needed
“It’s not the strongest that survives but the
species that is able to adapt and adjust to
the changing environment.”
– Charles Darwin, Origin of Species

9 © Nokia 2019
Today’s reality
A harsh business environment for Telcos

52%
Of the Fortune 500
logos have disappeared
since 2000

10 © Nokia 2019
Tomorrow’s promise …
The Trillion dollar opportunity …

Increase in revenue opportunity Vertical market forecast ($B, 2025)

Low estimate High estimate

Factories 1210 3700

4x
160
Worksites 930

Cities 930 1660

850
Logistics & Transport 56
0
170
Source Bell Labs Consulting Health 1590

“Who will capture the new value in 5G Future X network era?” “Value creation potential of the IoT”
– Bell Labs Consulting (2019) – McKinsey Global Institute (2018)

11 © Nokia 2019
Telco operations facing a perfect storm …
Complexity, new demands from 5G use cases
Today 2020-25 Use cases

Users 10M people +100M ‘things’

Smart homes Gaming
Sites 10K +100K

New service 100 days 10 minutes

Industry 4.0 Connected cars

Service level Best effort for all Committed SLAs

Logical networks 1 Many (slices) Drones Digital health

12 © Nokia 2019 *Illustrative figures for an operator with 10 million subscribers.

Poll question #2

Where do you see the majority of new revenues over the next five years?

A. New consumer services (AR/VR, gaming, stadium...)

B. Industry automation
C. Public sector (public safety, smart cities, e-health...)

13 © Nokia 2019
 The rise of a new species:
Digital Operations

14 © Nokia 2019
 Monolithic
The Telco Biosphere…

Current mode of operations Future mode of operations

Manual Automated

Human Augmented

Monolithic Modular

15 © Nokia 2019
Digital Operations: The rise of a new species or an entire ecosystem?
Connecting the network to the business

Drones Digital health Connected cars Smart homes Industry 4.0 Gaming
Single pane of glass

API management

Digital Ecosystem Digital platform & market place curation

Operations Business solutions & commercial management
PaaS
API management

Digital Network
Operations Data driven closed loop automation
Managed Service

16 © Nokia 2019
Automated – Indian operator sets a new benchmark 3 teams
Robotic Process Automation of routine operations tasks

Challenge Solution Results

Software release
availability
15,023 sites upgraded*
Software download

Multiple technologies Pre-checks 99.9% right 1st time

Software activation
steps
Assure service for Digitized procedures
20M subscribers Post-checks

*In a single maintenance window

17 © Nokia 2019
Augmented - Hutchison 3 Indonesia tap AI
Improved decision making & increased efficiency

v
v

Nokia
AVA
17 %
60%
Colossal device* Enriched by Granular insights & Increase in Faster optimization
& network data machine learning auto. recommendations Spectral Efficiency through automation

“AI will help us manage increasing complexity and make smarter

decisions – to improve network performance for our subscribers”
– Desmond Cheung, CTO, Hutchison 3 Indonesia

18 © Nokia 2019 * MDT (Minimization of Drive Test) data, 3GPP standardized feature
Modular – Hamburg Port Authority
Industrial, productivity gain with deep slicing, as-a-service

Diverse use cases Example: Harbor with 10 slices

EUR 250 million annual savings

250
241
232
223
200

Port savings
205
183
150 157

132
100 102

62
50
30

CAPEX
2020 21 22 23 24 25 26 27 28 29
-50
Source: Nokia
• Single infrastructure
Reliable Secure Automated Integrated
• Complex ecosystem
• Sustainable
Six9’s

19 © Nokia 2019
Poll question #3

In your opinion, what are the main challenges in applying AI

and automation to operations?

A. Processes, skills, change management

B. Technical complexity and integration
C. Having a clear strategy and top management support

20 © Nokia 2019
 Key takeaways

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21 © Nokia 2019
 Monolithic
The Telco Biosphere…

Current mode of operations Future mode of operations

Manual Automated

Human Augmented

Monolithic Modular

22 © Nokia 2019
Digital Operations: The rise of a new species or an entire ecosystem?
Connecting the network to the business

Drones Digital health Connected cars Smart homes Industry 4.0 Gaming
Single pane of glass

API management

Digital Ecosystem Digital platform & market place curation

Operations Business solutions & commercial management
PaaS
API management

Digital Network
Operations Data driven closed loop automation
Managed Service

23 © Nokia 2019
Why Nokia for Digital Operations?

5G #1 #1
future X architecture in AI & analytics in Network Performance Optimization
& ecosystem

>1BN 64 66%
subscribers in networks countries with managed of deliveries are multi-vendor
managed by Nokia services operations

24 © Nokia 2019
 Today’s Speakers

James Crawshaw Andrew Burrell

Senior Analyst Head of Marketing, Digital Operations

25