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10964_AI_Business_School_Telefonica_FINAL

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[AI Business School] [Defining an AI strategy Transforming your applications with AI] [What is driving Telefonica's investment in AI capabilities?] In Telefonica we started about three years Ago with a big project internally, a big transformation using data to make decisions. [Chema Alonso | Telefonica, Chief Data Officer] We started to think about Telefonica as a data-centric organization. So we put the data in the core of all of our decisions. When we were doing this, we realized that we wanted to be in full control of all the data our customers generate in our system to our customers. And we needed to create an interface that was easy enough to be managed for all of our customers. We decided to go through artificial intelligence technology to create a cognitive intelligence in which our customers can just talk to Technology, and get things done in real time. That was the first idea. And after that, we decided to create Aura, our digital assistant, our cognitive intelligence inside Telefonica with three powers. We used to say that we created Aura with three different powers to give our customers three new options working with Telefonica. First one is talk to technology and get things done in real time. And this is not an easy thing when you are talking about a company like Telefonica, which is almost 100 years old. The second power that we wanted to give to our customer is full control of all the data because we believe that data can reach your life. But you need to be the owner of your data, You need to have full control of your data. That was the second power that we put in the hands of our customers. And the third power that we wanted to give to our customer is clearness. We believe that being transparent is okay, but we want to be completely clear in frott of our customers. Sometimes terms and conditions, they're agreements that our customers used to sign, are not clear enough to put all the reality in front of our customers. So we wanted to be clear. And we decided to create Aura and put Aura in all our channels. Today, that cognitive intelligence is behaving behind all the digital channels that our customers are monitoring with Telefonica. Aura is in the mobile apps, Aura is in the social network chats, Aura is behind WhatsApp or Google Assistant, et cetera. And, of course, we created a smart device that is part of our strategy in the smart home, which we call Movistar Home, in which Aura is living at home. We put Aura in the front line of all interactions that Telefonica has today with the customers, and it's part of our key strategy to deal with our future. [What benefits did you gain by transforming your business with AI?] In our case, when we are talking about Aura, we changed completely the way that we interact with our customers. We got into a new world in which customers talk to Telefonica to get things done. And for us, it was a win-win because before that, our customers needed to use different channels that were completely unconnected, receiving different answers and having different capabilities. Right now, we have one single technology, which is Aura, and they select the channel they want to talk to Aura about. The answer is always the same. And one of the win-wins that we got creating that technology was that we needed to review all our technology behind Aura, data, APIs. And it helped us to kill a lot of system legacy technologies. And on the other hand, we created a new way, a new spirit, in our customers when they were talking to Telefonica. Today, people are talking to Aura naturally, and that's something great. Because before that, we didn't have any interaction with that customer using digital channels. For us, it was wonderful. And of course, we reduced the number of interactions in most expensive channels for Telefonica. We reduced the investment that we needed to have in contact center and other channels, which we were spending a lot of budget. [What advice would you give to other senior decision-makers to help them establish a successful AI strategy?] That's a very good question. For me, I think it's one of the key parts if you want to tackle one of these projects. Because using artificial intelligence today is quite simple. We have Cognitive Services. We got technology to manage different channels, et cetera. But when you go deeper into the organization, you realize that data is completely split out on different silos, that there are not APIs working in all the systems, et cetera. So if you are dealing with an organization like us, like Telefonica, which is, as I said, almost 100 years old, you need to make sure that you have the data and you have the APIs. Every piece of legacy technology in your company is going to stop you, and you are going to face that in the project of creating that artificial intelligence. We created a strategy that was trying to tackle the different areas. We tried to tackle the data management, the data governance in the company. We tried to tackle digitation internally into Telefonica. So we created APIs for the different use cases that we wanted to put into Aura. And of course, we created the artificial intelligence technology to manage relations with our customers. But the most difficult was, for sure, to have all the data in one single piece with a normalization mechanism, et cetera. If you want to do something similar to Aura, you need to start small. Think in the use cases that are most important for you organization. And then review all the APIs and all the data that you need to create that use case. [How have you adjusted your AI strategy over the past few years?] In our case, in the case of Aura and Telefonica, we created a strategy in which we separated the use cases of Aura in three different levels. First one is simplify, was the level in which we wanted to put only the use cases that make life for our customers simpler. The second way is to engage, to create use cases that are going to create new ways of using Telefonica technology for our customer. And the third one is to enrich use cases in which we are going to integrate third party technologies into Aura and Telefonica to create a richer ecosystem. But we started with the most simple use cases. [How do you ensure Telefonica will be an AI-led company moving forward?] That's an interesting question. As I said before, we needed data and APIs to create Aura. But if you don't have a good reason to transform anything, nobody wants to transform anything. We needed to transform the data and the APIs for Aura. So we decided to transform internal applications in the core business of Telefonica, forcing that transformation of the data and the APIs. We put artificial intelligence in a new set of internal apps, like network planning, smart marketing, [INDISCERNIBLE], device recommender, et cetera, that take the most of the artificial intelligence technology to generate better business for Telefonica. At the same time, we transformed the data to the format we needed in Telefonica to create that artificial intelligence platform that then we are using for Aura.

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Posted by: csintl on Jun 18, 2019

10964_AI_Business_School_Telefonica_FINAL

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