Data Broker & Digital Rights The Need for Dialogue ITU-T, Big Data Workshop Daniel Faulk, SAP AG June 17, 2014, Geneva CH Confidential

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The Telecommunications World Connecting information, people, and things Putting the Customer at the epi-center! Telco Big Data market size in 2020: From $1.95B (2013) to $9.83B (2020) acc to a 2013 study by HeavyReading sponsored by Huawei: Customer Experience Enhancement: Joining all data sources / removing silos (CRM, BSS, OSS,…) into ‘one view’ of the customer and his/her experience -> personlaized dynamic profiling and targteing and segmentation: usage, interests, social influence, churn propensity, clickstream analysis, … Real-time Analysis & Decision Mgmt: Monitor real-tinme events (for nw dynamic congestion control, location based services and personalized advertising), real- time CxO reporting, realtime cybercop / fraud mgmt (pattern matches, abnormal consumption,…), … Operational Efficiency: OPEX normally eats 30-140% of operators revenue – can be reduced signif to 10-15% acc to their research. Intelligent NW planning: incl CRM – based on forecasted service demand, cell site optimization, (4G with consumer contextual info) , NW offload (wifi f ex) Next-gen customer Care, Precise marketing: For personalized and precise offer mgmt (loyalty, packaged offers, dep on traffic, context, …) churn mgmt (multi-SIM, social churn, rotational churn, …) Innovative Business Models: API exposure / data broker -> to f ex retailers, advertising , IoT IoT service provider across industries Internet of content Internet of people Internet of things

Telecommunications world is investing 50 Billion connected devices / people / things by 2020 Big Data investment abounds – 2013 showed substance behind the Hype Source: Gartner 2013 ($BN) Putting the Customer at the epi-center! Telco Big Data market size in 2020: From $1.95B (2013) to $9.83B (2020) acc to a 2013 study by HeavyReading sponsored by Huawei: Customer Experience Enhancement: Joining all data sources / removing silos (CRM, BSS, OSS,…) into ‘one view’ of the customer and his/her experience -> personlaized dynamic profiling and targteing and segmentation: usage, interests, social influence, churn propensity, clickstream analysis, … Real-time Analysis & Decision Mgmt: Monitor real-tinme events (for nw dynamic congestion control, location based services and personalized advertising), real- time CxO reporting, realtime cybercop / fraud mgmt (pattern matches, abnormal consumption,…), … Operational Efficiency: OPEX normally eats 30-140% of operators revenue – can be reduced signif to 10-15% acc to their research. Intelligent NW planning: incl CRM – based on forecasted service demand, cell site optimization, (4G with consumer contextual info) , NW offload (wifi f ex) Next-gen customer Care, Precise marketing: For personalized and precise offer mgmt (loyalty, packaged offers, dep on traffic, context, …) churn mgmt (multi-SIM, social churn, rotational churn, …) Innovative Business Models: API exposure / data broker -> to f ex retailers, advertising , IoT IoT service provider across industries

Big Data & The Internet of People Advertising to the rescue ?! Mobile Operators See diminished revenue Need to find an alternative monetization scheme – the next big thing Attach a multimillion-dollar target to monetize data in the next six months Brand & Agencies Need a single source of truth using real-time data to answer seminal questions – who, what, and where Technology Levers: Predictive Analytics, Database and Technology, Application Innovation Business Levers: Sales force, Telco Relationships, Enterprise Relationships

Big Data & The Internet of Things Asset management to the rescue ?! Mobile Operators See diminished revenue Need to find an alternative monetization scheme – the next big thing Attach a multimillion-dollar target to monetize data in the next six months Asset operators, owners, OEMS Need a single source of truth using real-time data to answer seminal questions – who, what, and where Technology Levers: Predictive Analytics, Database and Technology, Application Innovation Business Levers: Sales force, Telco Relationships, Enterprise Relationships

The Big Data Opportunity The Data Broker De-identification Anonymization Process Data Structure Real-time Platform Big Data Mobile Collaboration Cloud International Legal Compliance Engage Visualize Predict

Data Broker challenges are procedural and regulatory Data Ownership Who is the owner of the data generated ? Can the ‚traditional‘ ownership rights to data continue? Data Custodian In a Cloud scenario, who is a trustful data custodian Where will the data be kept, and which data privacy legislation applies to the data How to avoid access to data for litigation (e.g. US nationals can demand access to foreign-owned data hosted in US data centers) Access rights How do the data owners access the data for IoT commercial scenarios (e.g. for condition monitoring, performance benchmarking) How do operators, manufacturers and the responsible authorities gain access for forensics (or not) Picture Copyright: Bombardier

Summary of SAP position SAP believes that the Data Broker Model is NOT a technical problem SAP believes that there can be additional value for Telcos, owners, operators and manufacturers from real-time data analysis and streaming SAP believes that legal frameworks & standards for data security and privacy need to be established for cloud based solutions which aid forensics SAP is looking to participate in a dialogue and can play multiple roles in forming international legal framework for data broker model Supplier of Software Products Operator of complete solutions – single or multi-tennant Data Custodian in managed or public clouds

Thank You! Daniel Faulk http://www.sap.com/iot @SAP_IoT SAP Internet of Things Daniel Faulk Sr. Product Manager SAP AG daniel.faulk@sap.com

Presenting today’… Daniel Faulk Sr. Product Manager Cross Product Services, Application Innovation SAP AG daniel.faulk@sap.com Short Bio: With SAP since 1999 Experience: 25+ Years of Product, Channel, Bus. Dev. Mngt. Formal Education: MBA International Business, UCONN (Univ. of CT), USA Bilingual English & German