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OSS – A BUSINESS PERSPECTIVE
FINANCIAL
CUSTOMER
PRODUCTION
REVENUESTRATEGY
PRODUCTION STRATEGY
PROCESS
REVENUE STRATEGY:
2. ARPU OF EXISTING SUBS
3. NEW SUBCRIBER ADDED
PRODUCTION STRATEGY:
6. COST OF OPERATIONS
7. COST OF MAINTENANCE
COMMON REVENUE STRATEGYFACTORS AFFECTING REVENUE
STRATEGY:
3. ADDRESSABLE MARKET4. NETWORK COVERAGE5. DEMAND FOR VAS6. LIMITATIONS DUE TO
REGULATION7. STANDARDIZED EQUIPMENTS
EXISTING TARGET MARKET
SERVICE PROVIDER A
SERVICE PROVIDER B
SERVICE PROVIDER C
OPERATIONS A
OPERATIONS B
OPEARTIONS C
THE REVENUE STRATEGY IS DETERMINED BY THE EXTERNAL ENVIORNMENT AND HENCE POTRAYS A COMMON FIELD FOR ALL SERVICE PROVIDERS.
WHERE IS THE DIFFERENTIATION ?• CUSTOMER SUPPORT.• SCALABLE NETWORK.• QUALITY OF SERVICE.• LAUNCH OF VIABLE VAS.• ACCURATE AND CUSTOMIZED
BILLLING.• EFFICIENT TROUBLESHOOTING
AND PROBLEM MANAGEMENT.• REDUCED TIME LAG.• PROACTIVE NETWORK
MANAGEMENT.• COMPETITIVE PRICING.• REDUCING TCO OF THE NETWORK.• REDUCING COST OF OPERATIONS.
BUSINESS MANAGEMENT
SERVICE MANAGEMENT
NETWORK MANAGEMENT
ELEMENT MANAGEMENT
ELEMENTS
LEVELS OF DIFFRENTIATION.
W H E R E T O D I F F E R E N T I A T E ?
N E W S E R V I C E L A U N C HC O M P E T I T I V E P R I C I N G
S C O P E O F T H E N E T W O R K
B U S I N E S S L E V E LD I F F E R E N T I A T I O N
O R D E R P R O C E S S I N GS E R V I C E A C T I V A T I O N
S E R V I C E D E L I V E R YC U S T O M E R S U P P O R T
I N V E N T O R Y M G M TS E R V I C E P R O V I S I O N I N GT R O U B L E T I C K E T M G M T
S E R V I C E L E V E LD I F F E R E N T I A T I O N
N E T W O R K C O V E R A G ET R O U B L E S H O O T I N G
P R O B L E M M A N A G E M E N TN E T W O R K M A I N T A I N E N C E
N E T W O R K L E V E LD I F F E R E N T I A T I O N
L E V E L
EXAMPLE : DETERMINING QOS REQUIREMENTS
DELIVERING QOS FOR A NEW SERVICE
• DETERMINE LEVEL OF QOS REQUIRED FOR COMMERCIAL LAUNCH.
• PLAN FOR THE HARDWARE & SOFTWARE REQUIRED FOR ATTAINING THE DESIRED LEVEL OF QOS.
• MONITORING THE LEVEL OF QOS ACHIEVED AFTER SERVICE ACTIVATION.
• BALANCING THE ACHIEVED LEVEL OF QOS WITH THE COMMERCIALLY VIABLE LEVEL AS DESIRED BY THE CUSTOMER.
CUSTOMERREQUIREMENT
CUSTOMER’S PERCEPTION
QOSACHIEVED
QOSOFFEREDNEED GAP
EXECUTIONGAP
PERCEPTION GAP
VALUE GAP
QUALITY CYCLE
HERE IS WHERE THE DIFFERENTIATION EXISTS…
CUSTOMERREQUIREMENT
CUSTOMER’S PERCEPTION
QOSACHIEVED
QOSOFFEREDNEED GAP
EXECUTIONGAP
PERCEPTION GAP
VALUE GAP
BUSINESS LEVEL DIFFERENTIATION
ELEMENT LEVEL DIFFERENTIATION
&
SERVICE LEVEL DIFFERENTIATION &
NETWORK LEVEL DIFFERENTIATION
NETWORK LEVEL DIFFERENTIATION
QUALITYCYCLE
OSS HELP THE SERVICE PROVIDERS TO QUALITATIVELY AND QUANTITAIVELY UNDERSTAND & REDUCE THE GAPS AND HENCE ALLOW THEM TO PLAN AND DELIVER THEIR SERVICE VALUE PROPOSITIONS WITH MUCH MORE EFFICIENCY.
PLANNING TOWARDS DIFFERENTIATION
The planning for differentiation would have to start from the element management layer and extend up to the business logic layer.
Factors determining differentiation would be:
• The ability of the service provider to roll out new services on demand. • The ability of the service provider to reduce time lag between the service
ordering to service provisioning.• The ability of the service provider to provide quick and efficient fault
management , trouble ticket management.• The ability of the service provider to provide the customer accurate and
customized billing.• The ability of the service provider to maintain inventory check to avoid over
expenditure. • The ability of the service provider to monitor his network proactively, and
maintain desired levels of parameters governing the commercial success of the service.
A REVENUE MODEL
B U S I N E S SV I A B I L I T YA N A L Y S I S
S E R V I C ED I F F E R E N T I A T I O N
P A R A M E T E R S
N E T W O R KM A N A G E M E N T
( P R O A C T I V E )
E L E M E N TM A N A G E M E N T
D A T AM I N I N G
& T R E N DA N A L Y S I S
O P E R A T I O N S
PHYSICAL NETWORKS
MAXIMIZING SHAREHOLDER WEALTH
CUST. ACQUISITIONCUST. RETENTION
C
O
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T
O
F
S
E
R
V
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C
E
C
O
S
T
O
F
S
E
R
V
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C
E
S
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R
V
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C
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G
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T
E
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OSS – SPEAKING OF HISTORY• OPERATION SUPPORT SUBSYSTEM WAS
INITIALLY THOUGHT OF AS A MAINFRAME SYSTEM , WHICH WOULD BE USED TO SUPPORT THE DAILY OPERATIONS OF A SERVICE PROVIDER
• TODAY, OSS HAS BEEN GRADUATED FROM JUST A SUPPORT SYSTEM TO A LIFE LINE FOR THE SERVICE PROVIDERS TO DEVELOP COST EFFICIENT PROCESSES FOR SERVICE DESIGN AND DELIVERY THEREBY REDUCING SUBSCRIBER ACQUISITION COST AND SUBSCRIBER CHURN.
AHA ! THOUGHT IT WAS
OPEN SOURCE SYSTEM !
FUNCTIONAL DECOMPOSITION DIAGRAM
OPERATIONS
ORDER ACCEPTANCE
ACTIVATIONENGINEERING FAULT MANAGEMENT
REPORTS
ORDERSPECIFICS
INVENTORY
IMPLEMENTATION
DESIGNBILLING
PROVISIONING
ELEMENTMGMT
TROUBLE TICKETMANAGEMENT
AUDIT
TRAFFIC
MIS
FIG: SHOWS AN EXAMPLE OF A FUNCTIONAL DECOMPOSITION DIAGRAM FOR SERVICE LEVEL MANAGEMENT
INFORMATION & PROCESS INTEGRATION
WORK FLOWENGINE
ORDER PROCESSING
CUSTOMER SUPPORT
MARKETING & PROMOTIONS
DESIGN & INVENTORY
INVENTORY MANAGEMENT
BILLING
NETWORK MANAGEMENT
PROVISIONING
OSS products streamlines operations by maintaining a central database and a workflow engine which would be responsible for interacting with the process modules giving the service provider one point of view of its entire operations helping him to analyze his cost and profit centers.
Design Principles- Industry Standards
• Design -NGOSS compliant.
• System definitions & design based
on SID principles.
• Business Analysis & design based
on e-TOM definitions
Syste
ms
Syste
ms
Analys
is &
Analys
is &
Desig
n
Desig
nSh
ared
Info
rmat
ion
& Dat
a
Model
(SID
)
Business
Business
Process Analysis
Process Analysis
& Design
& Design
Business
Process Map
(eTOM)
OSS/BSSOSS/BSSSolutionSolution
NGOSSNGOSSCOMPLIANCECOMPLIANCE
THE PRODUCT ISSUES• SELECTION & SELF ACTIVATION • FLEXIBLE AND EASILY CUSTOMISABLE.• API’S FOR INTEGRATION WITH BILLING & CUSTOMER CARE
SYSTEMS.• HIDING PHYSICAL LEVEL & BUSINESS LEVEL COMPLEXITIES.• ENABLING SERVICE ASSURANCE & MAINTAINENCE.• PLATFORM & HARDWARE INDEPENDENT.• 3-TIER MODULAR CLIENT SERVER ARCHITECTURE.• ROI PERSPECTIVE.• DEFINED PARAMETERS REPORTED TO ASCERTAIN USAGE AND
BENEFITS. VALUE SHOULD BE DEFINES IN QUANTIFIABLE TERMS.
GROWING SYSTEM INTEGRATION CONCERNS
• DEMAND FOR PLUG AND PLAY INTEGRATION.
• USE OF JAVA API’S AS A PART OF OSS THROUGH JAVA INITIATIVE.
• OFF THE SHELF OR MODULAR APPROACH TO INTEGRATION.
• ABILITY TO SEAMLESSLY INTEGRATE WITH LEGACY SYSTEMS AND OTHER OSS MODULES FROM DIFFERENT VENDORS.
• EASE OF DATA MIGRATION & IMPROVED DATA VISIBILITY.
• OPEN SYSTEMS CONNECTIVITY.
• ABILITY TO INTEGRATE WITH CUSTOMIZED AND HETEROGENOUS SYSTEMS.
INTEGRATION APPROACH
ACTION SCHEDULER
BUSINESS RULEREPOSITORY
TECHNOLOGY PLATFORM FOR INTEGRATION( EAI, OSS/J,. NET )
PROCESS LEVELINTEGRATION
SEMANTIC LEVELINTEGRATION
DATA LEVELINTEGRATION
ACTION MODELLER
INTER MODULE JAVA API
PROCESS
MODELLER
WORK FLOW
ENGINE
AN INTEGRATION APPROACH
DATABASE (RDBMS)
BUSINESS RULES ACTION MODELLER SCHEDULER
TRANSACTION PROCESSER
BUSINESS PARAMETERSBUSINESS PARAMETERS
SERVICE PARAMETERS
CHANNEL PARTNERS WEB
LEGACY SYSTEMS
CONFIGURATOR&
ACTIVATION ENGINE
INTEGRATION FEATURES REQD.
APPLICATION
PREDEFINED PROCESS
PARAMETERSBILLINGSYSTEM
SUBSCRIBER MGMT
ORDERMGMT
N/WACTIVATION &
MGMT
SYS
ACTIVITY ASSIGNMENT, SCHEDULING & REPORTING SYSTEMSFOR FIELD TECHNICIANS
WORKFLOW
D
A
T
A
AN INTEGRATION EXAMPLE
INTERNET
WEBSERVER
APPNSERVER
DATA
DATA
ORDER MANAGEMENT
SYSTEM
ACCEPTOR
WORKFLOWENGINE /PROCESS
MODELLER
ACCEPTOR RESPONSE
BSNL
DOCUMENT FOR COMMISIONINGDOT LINE
ACCEPTOR
RESPONSE
IP ADDRESSASSIGNMENT
SYSTEMSERVICE
PROVISIONINGAND
ACTIVATIONSYSTEM
ACCEPTOR
RESPONSE
SLA ENGINE
N/WMGMT
&REPORTING
TOOL
INVENTORYMGMT SYSTEM
RESPONSE
DATA
SUMMARY OF OPERATIONAL CAPABILITIES
• PROVISION NEW SERVICES ON DEMAND• ADD AND MONITOR CAPACITY PROACTIVELY.• BILL INDEPENDENTLY FOR SERVICES &
CONTENT.• PREVENT REVENUE LEAKAGES & GENERATE
REVENUE CAPTURE AREAS• MAINTAIN QOA AND SLA CONFORMANCE• PROACTIVE AUDITS TO MEET NEW DEMANDS.• INTEGRAL PARTNER IN SERVICE INNOVATION,
CUSTOMER ACQUISITION & RETENTION.
BUILDING A BUSINESS CASE - I
BUSINESS OPPORTUNITY
A typical telecom service provider spends about Rs 150 on telecommunications and equipment costs for every Rs 5000/- it brings in from a dial-up customer. By contrast, it spends about Rs 4000/- for every Rs 5000/- it brings in from a Rs2500/month customer. Added to this is the cost of time delay approximately for commissioning leased line would typically range from 50 to 60days. With the cost of subscriber acquisition reaching to about Rs 6250/- and the industry already burdened with accumulated losses of over Rs 12,000 cr a service provider can ill afford to ignore the efficiency brought in by an intelligent OSS integration.
THE VALUE CHAIN
VENDOR
NETWORK INTEGRATOR
SERVICE PROVIDER
ENDUSER
OSS PRODUCT
VENDOR
SYSTEM INTEGRATOR
BILLING SOLUTION PROVIDER
ISV
I II
III
IV V
MARKET SEGMENTATION
D A T AV O I C E
( I P B A S E D )
I S PN S PM S P
N L DI L D
( T D M B A S E D )
B S PB A S I C S P
M S PM O B I L E S P
T A R G E TM A R K E T
S E G M E N T
THE OSS VENDORS AND INTEGRATORS NEED TO UNDERSTAND THE OPERATIONAL LEVEL OR THE SERVICE LEVEL DIFFERENCES BETWEEN THE SEGMENTED MARKETS TO POSITION THE PRODUCT MORE EFFECTIVELY , CATERING TO INDIVIDUAL TOUCH POINTS & PAIN AREAS FOR THE SERVICE PROVIDER.
TYPICAL SCENARIO FOR TARGET SEGMENT
SERVICEOFFERRINGS
NETWORK SERVICES
APPLICATION SERVICES
MANAGED SERVICES
WEBBASED
SERVICES
ITENABLED SERVICES
CORE BACKBONE
ISSUES IN OSS PRODUCT MARKETING
• DEVELOP NEED FOR OSS SOLUTION ITSELF.
• DEVELOP NEED FOR THE OSS PRODUCT.
• DEVELOP NEED WITHIN A COST SENSITIVE & TURBULENT ECONOMIC SCENARIO.
• QUANTIFY BENEFITS AND ROI PERSPECTIVES.
OHO!I SEE ITS NOT OPEN SOURCE
SOFTWARE
CHALLENGES
OSS VENDORS
ISSUES SURROUNDING
VENDORS
TIME TO MARKET V/S
TIME TO ROI
LEADING
ERP
VNDORS
SAP
LEADING
BSS
VNDORS
SEIBEL
NEED FOR PROVEN SOLUTION
LEGACY SYSTEM MIGRATION, LEGACY SYSTEM DATABASES &
TECHNOLOGY SCALABILITY SYSTEMS
COST OF OWNERSHIP ISSUES
TRANSACTION TIME
THROUGHPUT
&
RESPONSE TIME
SERVICE PROVIDERDESCISION FILTERS
SOLUTION SALES CYCLE
COST BENEFIT ANALYSIS
QUANTITATIVEROI
INDICATION
SOLUTION DESIGN
SOLUTIONDEPLOYMENT
RISKANALYSIS
CORE PRODUCT
AUGMENTED VALUE ADDED PRODUCT
INTEGRATED SOLUTION ADDRESSING PAIN AREAS
NEEDUNDERSTANDING
REAL NEEDGENERATION
REAL NEEDINCUBATION
NEED ANALYSIS• DOMAIN LEVEL UNDERSTANDING OF
THE INDUSTRY• OPERATIONAL & BUSINESS LEVEL
UNDERSTANDING OF THE SERVICE PROVIDER.
• DETERMINE THE MODE:
4. GROWTH MODE
5. RETENTION MODE
6. EVEN MODE
• DETERMINE THE CORE ASSET & THE MOST CRITICAL FACTOR AFFECTING ITS BUSINESS.
• DEVELOP BUSINESS VIABILITY FOR OSS PRODUCT AROUND THAT FACTOR & QUANTIFY IN REAL TERMS THE BUISNESS IMPACT.
NEEDUNDERSTANDING
REAL NEEDGENERATION
REAL NEEDINCUBATION
NEED ANALYSIS- ICLASSIFIED EXAMPLE : TYPICAL ISP SERVICE DELIVERY
CONSIDERATIONS
ISP
TECHNICAL
OPERATIONS
IP ADDRESSASSIGNMENT
ROUTER PORTSAVAILABLE
SERVICE PROVISIONING
ORDERACCEPTANCE & DELIVERY
BILLING
LINK CAPACITY
SERVICE ACTIVATION
TROUBLE TICKET
MANAGEMENT
ON NET &
OFF- NET INVENTORYSLA
CONFORMANCE
BUSINESS VIABLITY OF SERVICES
H/W OR SERVICEPARTNER
PERFORMANCE
BUSINESSPARTNER
PARTNERSHIP
NEED ANALYSIS II• CLASSIFY EVERY SINGLE OPERATIONAL
FACTOR CONTRIBUTING TO SERVICE FULLFILLMENT.
• IDENTIFY THE EASILY APPROACHABLE CRITICAL FACTORS WHICH ARE CONTRIBUTING TO SERVICE FULLFILLMENT.
EXAMPLE: IP NUMBER ASSIGNMENT, INVENTORY MANAGEMENT.
• RELATE AS TO HOW STANDARDIZING PROCESSES AND OPERATIONS WOULD IMPROVE REVENUE EARNINGS ON HIS CORE ASSET I.e THE NETWORK
• IDENTIFY & HIGHLIGHT THE PAIN AREAS IN THOSE OPERATIONS
EXPANDING HORIZONS BY INDIVIDUAL LEVELANALYSIS
AND CLASSIFYING PAIN AREAS
SERVICEACTIVATION
BILLING
TIME LAG IN ORDER
FULLFILLMENT
IP NO. ASSIGNMENT
INVENTORYMANAGEMENT
NEED INCUBATION• DEMO• SYSTEM INTEGRATOR PREFERRED
PRODUCT VENDOR• LEVERAGING PARTNER TIE UPS FOR
FUTURE UPGRADATIONS OF THE PRODUCT & INTEROPERABILITY ISSUES.
• PROMOTIONAL SEMINARS HIGHLIGHTING PAIN AREA SOLUTIONS.
AHA! YOU SEE I TOLD
YOU ITS NOT OPEN SOURCE
SOFTWARE.
COST BENEFIT ANALYSISCOST
• PRODUCT COST• INTEGRATION COST• DATA MIGRATION COST• SYSTEM DOWNTIME COST• MANHOURS UTILIZED
COST• MISC. COST
BENEFIT2. Quality of Service3. Type of Service4. Service Pricing Sensitivity5. Geographical Coverage6. Reduction in Time lag for Service
Activation & Provisioning7. Service Maintenance 8. Fault Management9. Customer Relationship10. Accurate and Customized billing11. New Service launches
THE MAJOR CHALLENGE IN PROMOTING THE BENEFITS IS QUANTIFYING THE EXPECTED BENEFITS SO AS TO JUSTIFY THE SERVICE PROVIDER’S INVESTMENT IN ITS BALANCE SHEET. THE COST CAN BE QUANTIFIED BUT BENEFITS ARE BASED ON FUTURISTIC EXPECTATIONS.
SAMPLE CASE ANALYSIS
SERVICEPROVIDERBACKBONE
CLIENT
PREMISE
LAST MILE
INTLNETWORK
PROVIDING INTERNET BANDWIDTH
• COMMISIONING & INSTALLATION OF LAST MILE
• DEMAND NOTE GENERATION AS PER ACTUALS FROM BASIC SERVICE PROVIDER
• CPE REQUIREMENT ANALYSIS AND PROCUREMENT
• CONFIGURING ROUTER PORTS FOR BANDWIDTH ALLOCATED.
• IP ADDRESS ASSIGNMENT.
• DOCUMENTING IMPLEMENTATION NOTE
• INVOICE GENERATION AS PER PURCHASE ORDER
• PAYMENT RECIEPT.
• SERVICE ACTIVATION
• NETWORK MONITORING
•FAULT MANAGEMENT
A PROPOSED APPROACH
DEMO PHASED MODULAR INTEGRATION
DEMO DURING A TIME WHICH WOULD BE SUITABLE FOR HIGHLIGHTING PAIN
AREA RESOLVES
CLIENT PREMISE TESTING WITHOUT
DOWNTIME
INTEGRATION SINGLE MODULE INTEGRATION
END USER TRAININGDEMO FOR SECOND LEVEL
IMPLEMENTATION
NEED
PAINAREA
ANALYSIS
1
BENEFIT ANALYSIS
S A L E S&
M A R K E T I N G
N E T W O R KD E P L O Y M E N T
S E R V I C EP L A N N I N G
C U S T O M E RS E R V I C E S
S A M P L EO P E R A T I O N A L
H E A D S
• IDENTIFY TARGET
• DATA MINING
• CUSTOMIZING SERVICE DELIVARABLES AS PER PROSPECT CUSTOMET
• IDENTIFYING SERVICE RENEWAL FROM EXISTING CLIENTS AND SERVICE UPGRADATION PARAMETERS
• EXECUTION OF COMMISIONING TASKS THROUGH WORKFLOW ENGINE RULE SET.
•FASTER END TO END CIRCUIT DESIGN
•ASSET TRACKING
• UTILIZATION TRACKING OF BANDWIDTH
•PLANNING NEW VALUE ADDS TO EXISTING SERVICE
•CONFORMATION TO SLA
• REDUCED TIME LAG BETWEEN ORDER ENTRY & SERVICE ACTIVATION
• EFFICIENT TROUBLE TICKET MANAGEMENT
BALANCING THE COST FRONTIER• JUSTIFYING INITIAL COST
EXPENDITURES• MEASURING AGAINST IN
HOUSE OR ISV SOLUTIONS.• DETERMINING USAGE LEVEL
TO ASCERTAIN SOFTWARE LICENSES.
• QUANTIFY BENEFITS TO JUSTIFY IT ON THE BALANCE SHEET.
• ENTER RELATIONSHIP AS A PARTNER RATHER THAN JUST AN ENABLER.
SAMPLE CASE DEVELOPMENT
THE CASE IS BASED UPON A TYPICAL MOBILE SERVICE PROVIDER OPERATING IN A 2G/2.5G SCENARIO
BUILDING A BUSINESS CASEFINANCIAL PERSPECTIVE:
‘INCREASE SERVICE REVENUE IN THE CURRENT YEAR BY X% ’
REQUIRED OBJECTIVES:6. INCREASE SUBSCRIBER VOLUME7. INCREASE EXISTING SUBSCRIBER RETURNS
REVENUE STRATEGY:• INCREASE ARPU BY A% BY INCREASING MINUTES OF USAGE (MOU) BY M
%.• INCREASE GROSS MARGIN PER TRANSACTION BY B%• INCREASE EVA BY C%
CASE BASED ON PARAMETERS FOR MOBILE WIRELESS SERVICE PROVIDER
ANALYZING THE REVENUE STRATEGY
‘INCREASE ARPU BY A% BY INCREASING MINUTES OF USAGE (MOU) BY M%.’
• Service Portfolio : Voice Based & Low level data based services• Capital Expenditure on Network requirements has already been invested &
infrastructure is already in place.• The market is guided by plummeting prices as competitive strategies is based
on Low Price and is driven by LOW COST business model.
Thus to obtain the desired objective the service provider would have to provide Value Added Services like Wireless Content, Location Based Services etc.
Thus to implement the Revenue Strategy: “INCREASING THE MOU BY EXPANDING SERVICE PORTFOLIO BASED ON
WIRELESS CONTENT.”
ANALYZING THE REVENUE STRATEGY
SERVICE PROVIDER
ENDUSER
CONTENT DEVELOPERS
CONTENT PUBLISHERS
CONTENT AGGREGATORS
INCREASE GROSS MARGIN PER TRANSACTION BY B%
CHANGING VALUE CHAIN
• PRICING MODELS ACROSS THE VALUE CHAIN IS NOT CONSTANT
• CONTENT BASED SERVICE TRANSACTION HAS A QUANTIFIABLE MARGINAL COST TO THE SERVICE PROVIDER.
• THUS COMPETITIVE STRATEGIES CANNOT BE BASED JUST ON LOW PRICE BUT WOULD BE BASED ON DIFFERENTIATED VALUE ADDS.
•IT IS THIS DIFFERNTIATION COUPLED WITH THE EFFICIENT OPERATIONS (DESIGN ASSIGN & MAINTAIN) WHICH WOULD HELP IN INCREASING THE GROSS MARGIN PER CONTENT BASED SERVICE TRANSACTION.
ANALYZING THE REVENUE STRATEGY INCREASE EVA BY C%
COST OF CAPITAL for mobile network services would be compared with
• RETURN ON CAPITAL: Earnings generated by the Capital
• RETURN OF CAPITAL: Depreciation
Other factors that would be acting as indicators are:
6. Pricing of Equity
• Capital Asset Pricing Model
• Cost of Equity Capital (Calculating BETA Factor)
9. Pricing Debt
• Cost of Debt
THE OSS/BSS INITIATIVE
• Perception of Value to be backed by Reality.
• Utilizing the importance of lower Subscriber Acquisition cost and demonstrating initiatives to achieve it.
• Demonstrating importance of OSS solutions in increasing the Return on Capital.
Data Points for understanding Subscriber Acquisition Cost
No. of Subscribers for year X before OSS ImplementationNo. of Subscribers for year X+1 after OSS Implementation
Sales General & Administrative Expenses in Year XSales General & Administrative Expenses in Year X+1
Capex in Year XCapex in Year X+1
Sales General & Administrative Expenses per customer in Year XSales General & Administrative Expenses per customer in Year X+1
Capex per customer in Year XCapex per customer in Year X + 1
QUANTIFYING BENEFIT PARAMETERS• ESTIMATING AMOUNT OF CAPITAL EXPENDITURE REDUCED THROUGH
BETTER UTILIZATION OF EXISTING CAPACITY.• ESTIMATING INCREASED SERVICE ORDER RENEWALS PER YEAR
THROUGH EFFICIENT CUSTOMER SERVICES, PROACTIVE FAULT MANAGEMENT & CONFORMANCE TO SLA GUIDELINES.
• ESTIMATING GROWTH IN REVENUE FROM THE PREVIOUS YEAR DUE TO IMPROVEMENTS IN QUALITY OF SERVICE DELIVARABLES
• ESTIMATING AMOUNT RECURRING EXPENDITURE REDUCTION THROUGH EFFICIENT PROCESS STREAMLINING AND REDUCTION OF LABOR COSTS.
• ESTIMATING CUSTOMER ACQUISITION NUMBER DUE TO REDUCTION IN SERVICE DELIVERY INTERVALS.
• ESTIMATING COST REDUCTION DUE TO REDUCTION IN BOTH LABOR AND CAPITAL RELATED SUPPLIES.
• ESTIMATING COST SAVED DUE TO ACCURATE MANAGEMENT OF CONTENT PROVIDER ALLIANCES AND BILLING
THE ENITRE FOCUS OF THIS QUATIZATION WOULD BE TO ESTABLISH
A POSITIVE ECONOMIC VALUE ADDED (EVA) FOR THE SERVICE PROVIDER
KNOW THE TRENDS• SHIFT TOWARDS TIME TO ROI THEORY FROM TIME TO
MARKET THEORY.• TELECOM INDUSTRY MOVING IN ABSOLUTE OR
QUANTITATIVE TERM WHERE AS OSS/BSS VENDORS PROMOTIONS ARE BASED ON FUTURISTIC & QUALITATIVE SERVICE BENEFITS & COST SAVINGS.
• TODAY SERVICE PROVIDERS ARE RATING CONVERGENT BILLING MODULES FOLLOWED BY INVENTORY MANAGEMENT MODULES WITH MORE PRIORITY.
• UNDERSTANDING ALREADY IMPLEMENTED HARDWARE FUNCTIONALITIES & EQUIPMENT VENDOR TRUST THROUGH TIE UPS AS TODAY EQUIPMENT VENDORS ARE THE BIGGEST PARTNERS OF THE SERVICE PROVIDER.
KNOW THE TRENDS• COMPETITION IN THE OPERATIONAL AREAS IS ARISING
FROM LEADING ERP VENDORS LIKE SAP AND IN THE DATABASE AND BSS ARENA THROUGH VENDORS LIKE SEIBEL, ORACLE.
• SERVICE MANAGEMENT & ASSURANCE REQUIREMENTS WOULD PROBABLY BE THE NEXT INFLECTION POINT FOR OSS VENDORS.
• SUCCESSFUL PARTNERSHIPS WITH INTEGRATORS , CONSULTANTS WOULD QUALIFY SERVICE PROVIDER TRUST IN THE PRODUCT.
• ISSUES RELATING TO TOTAL COST OF OWNERSHIP IS OF PRIME CONCERN.
MARKET FACTS & FIGURES
FOR THE ASIA PAC REGION :
Total OSS Market: US $ 8.8 bn for 2002 predicted to rise towards US $ 11.8 bn in 2007
Total Vendor Revenue : US $ 1.98 bn in 2002 predicted to rise towards US $ 5 bn in 2007
System Integrator Revenue: US $ 4.2 bn in 2002 predicted to rise towards US $ 4.8 bn in 2007
Thus Growth for OSS Product Vendors is phenomenal compared to System Integrators and both would be commanding about 48% each from the total pie.
Billing Modules accounted for US $ 3.5 bn in year 2002
Customer Care solutions accounted for US $ 1.42 bn in the same year and Service Fulfillment accounted for US $ 1.05 bn
UNDERSTAND THE BUDGET
FIXED BASE AMOUNT
PRODUCT COSTINTEGRATION
COSTDATA MIGRATION
COSTMISC COST
•INTEGRATOR REL
•LEGACY SYS INTEGRATION API
•PRODUCT SUPPORTING MODULAR INTEGRATION FEATURES
VENDORS WORKING WITH INDEPENDENT CONSULTANTS SO AS TO PROMOTE A
SOLUTION AND NOT A PRODUCT
PROFESSIONAL & CONSULTANCY SERVICES
ACTING ON A PARTNER PLATFORM
CASE TO CASE RATHER THAN SINGLE STATEMENT POLICY• EVERY MARKET SEGMENT HAS ITS OWN PAIN AREAS. ISP, BASIC
SERVICE PROVIDERS, MOBILE SERVICE PROVIDERS, PROVIDERS OPERATING IN THE ACCESS MARKET OR THE CARRIER MARKET HAVE INDEPENDENT AND LARGELY VARYING NEEDS.
• INTEGRATION ISSUES ARE ALSO VASTLY DIFFERENT FOR EACH OF THE SEGMENTS. GREENFIELD OPERATORS WOULD WANT MUCH MORE TECHNOLOGY INDEPENDENT SOLUTIONS COMPARED TO INCUMBENTS.
• TYPE OF DATA FLOWING THROUGH THE SYSTEMS WOULD ALSO BE CONTRASTINGLY DIFFERENT FOR EACH CATEGORY OF SERVICE PROVIDERS THUS VARYING IN PRIORITY, CATEGORY AND SENSITIVITY.
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