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Customer Snapshot: Overview

More than 400 million customers in more than 30 countries

Throughout the business transformation they call Evolution Vodafone (EVO), Vodafone Group Plc has partnered with SAP to update and improve business processes. Departments ranging from procurement and human resources, to finance and marketing are saving time and money while improving customer service with powerful, integrated SAP solutions.

Company
Vodafone Group Plc

Revenue
€57 billion

Number of Employees
86,000

Industry
Telecommunications

Partners

Accenture

Visionary Themes

Run Live, Run Simple

Headquarters
Newbury, United Kingdom

Customer Website
www.vodafone.co.uk/

Line of Business
Finance, Human Resources, Sourcing and Procurement

SAP Solutions
SAP Afaria, SAP BusinessObjects business intelligence (BI) solutions, SAP Customer Relationship Management (SAP CRM), SAP ERP, SAP HANA, SAP InfiniteInsight, SAP MaxAttention, SAP Mobile Platform, SAP NetWeaver Master Data Management, SAP Solution Manager, SAP Spend Performance Management

 

Partnering with SAP Labs, Vodafone is helping to move SAP HANA forward.

Customer Snapshot: History

Customer Snapshot: Business Model

The Freedom to Work or Play Anywhere

The world’s largest mobile telecommunications company keeps more than 400 million consumer and enterprise customers connected by providing the latest, greatest, and fastest mobile networks and technology, superior services, and an ongoing commitment to their needs.

Customer Snapshot: Success Strategy

The Transformation to One Platform
 

Since 2006, the EVO program has encouraged Vodafone to pursue best practices in every aspect of what it does. Using SAP ERP and associated applications as the single, integrated platform for their business, Vodafone has been able to pinpoint where they spend money, share data across the organization, and implement mobile solutions to improve productivity.

Planning ahead…

The Challenge

Achieving Internal and External Excellence

The focus on best practices prompts Vodafone to continually seek areas for improvement. Month-end closing is a critical process that also happens to be highly visible. The availability of financial information is critical to managers who need it to respond to changing business conditions. Timely information supports timely decision making, so Vodafone set the goal of reducing their month-end closing process.

Another goal of Vodafone Group is to maximize savings while minimizing risk. This requires visibility into spending that helps proactively identify savings opportunities and control supplier risk.

 

Customer churn is another key issue Vodafone sought to address. Since there is no single characteristic that can identify a customer who is likely to change mobile providers, Vodafone Netherlands wanted to figure out a way to make the most of their scarce analytics resources and apply findings to minimize customer turnover.

Automation with full control and accuracy.

 

The biggest benefit…

Enter SAP

Trusted Partner and Preferred Supplier

The largest IT transformation in Vodafone’s history began in 2006, when Accenture and SAP collaborated to deliver a single platform for finance, HR, and supply chain across 20 operating companies. Over the years, this has meant addressing considerable challenges of scale and complexity. As Vodafone’s global delivery partner, Accenture has worked side by side with Vodafone to design and deliver the overall solution in all locations.

Several years ago, Vodaphone embarked on a journey of three key global implementations:

ERP

to standardize and globalize core processes

Business Intelligence

360° understanding of procurement expenditures, negotiate better prices, and service with suppliers

Mobility

to empower employees with access to core systems via mobile devices

 

Accenture has focused on maximizing the reuse of assets, making best use of and optimizing Vodafone’s mix of offshore and specialist resources, and deploying a comprehensive suite of tools to achieve high levels of automation. By adopting an industrialized approach, Accenture was able to drive major cost savings and realize the value that Vodafone had set for the program.

Handling the heavy lifting behind the scenes.

Enter SAP: The SAP Experience

Technology and Experience to Accelerate Business

SAP, Accenture, and Vodafone have worked closely to deliver meaningful results as part of the EVO program. The SAP HANA implementation was completed within one month-end closing period. SAP Spend Performance Management software has delivered comprehensive reporting and process functionality to power smarter purchasing decisions throughout Vodafone Group. Now using SAP InfiniteInsight, Vodafone Netherlands is developing analytical models to identify customers who may cancel service and opportunities for cross-selling and upselling.

 

Using this tool like a black box…

Better Business

Closing Books and Opening Opportunities

Month-end closing has been improved at Vodafone through a combination of system and process improvements. After implementing SAP HANA, Vodafone cut an entire day out of their closing process.

 

Vodafone had been using SAP Business Warehouse in the data flow, but using the reporting application for operations was a time-consuming process of iterative extract-transform-load (ETL) database cycles. With SAP HANA, Vodafone can analyze large amounts of data in local memory, eliminating the need for multiple ETLs.

Analyzing exactly how money is getting spent.

Vodafone is able to integrate spending data with other key information and keep it within a secure loop of sourcing and spend management that helps identify risks, such as single-supplier dependencies, while helping control spending through accurate information and performance targets.

In the Netherlands, Vodafone is using SAP InfiniteInsight to develop models that seek ways to save customers money. With the ability to quickly develop models, Vodafone Netherlands is looking forward to further ingenuity and experimentation.

 

Huge analytic benefit…

For instance, the telecommunications company is profiling winter sports enthusiasts to identify who may be interested in a mobile roaming product that makes it easy for them to use their phones in the mountains.

Better Business: Benefits

Higher Speed, Lower Cost, Satisfied Workers, Happier Customers
 

Vodafone workers now get back one day each month thanks to SAP InfiniteInsight. ETL cycles that used to take up to two-and-a-half hours are now completed in six minutes. This 96% reduction in process times means Vodafone can save approximately €500,000 in labor costs over the next four years. SAP Spend Performance Management is helping Vodafone optimize their spending strategies with features including what-if simulations, which can help the company set and manage higher goals for spend under management.

Closing the knowledge gap.

 

Predictive analytics powered by SAP InfiniteInsight helps Vodafone optimize their marketing spend by identifying the relevant offers for different customers. Vodafone Netherlands creates predictive models in SAP InfiniteInsight that help identify patterns in the spectrum of behaviors among customers. With an indication of customers’ predispositions to changing providers, Vodafone can develop offers and campaigns to retain them.

What determines customer churn?

Better Business: Run Simple

Time on Their Hands Is Money in the Bank

Now in production, the new month-end close process is giving Vodafone greater flexibility than ever. Data extract, transform, and load cycles are 25 times faster, ending the dreaded 16-hour days that workers faced during the old process. Employees are now free to contribute at higher levels, resulting in higher job satisfaction and greater business innovation. Data analysts and business decision makers are also more productive because they have the information they need much sooner.

Modeling that would have taken weeks to produce by a team of statisticians can now be completed in only two days by one or two experienced analysts at Vodafone Netherlands. The analysis can also be presented in formats that can direct the actions of marketers, such as when to contact customers with a certain message, and when not to over-contact customers.

Journey Ahead

Promoting the Internal Success Story
 

Vodafone is now refining its month-end closing process. For example, they have introduced a set of preliminary reports using the SAP HANA data. These reports can provide advance notice of approximate results, allowing stakeholders to prepare accordingly for final results. In addition, Vodafone has several potential plans for broadening the applicability of SAP HANA to their business needs in business functions outside finance.

Looking ahead to gaining more insight across all aspects of business.

Meanwhile, SAP Spend Performance Management continues to help Vodafone uncover new ways to save money and mitigate risk through consolidated analysis.

Similarly, Vodafone Netherlands is continuing to develop programs around predictive analytics using SAP InfiniteInsight. Their goal is to use analytics to optimize processes according to customer requirements. In a rapidly changing business such as mobile telecommunications, Vodafone clearly sees the value of transitioning away from tactical insights to predictive and prescriptive analytics.

Now that we have proven the value of SAP HANA, we’re telling the rest of the company that we have a new addition to the analysis tools from SAP that we have been making available for years – one that offers incredible acceleration for any application where speed is important. –Valentina Del Frate, Innovation Manager and SAP HANA Project Manager, Vodafone Group Plc
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