eTOM Makes Real Business Sense for Cable Operators

TeleManagement World 2004October 12, 2004

Thor Johnson – Managing Director, Telecommunications Vitria Technology Marek Stawinski – Vice President, Architecture & OSSUPC

2

More than $60 Billion in cable infrastructure and facility upgrades has recently been invested to deploy a broad range of new services

Plant Upgrade/Build(in billions USD)

Sources: Deutsche Banc Alex Brown, Cable Signals, January 15, 2002

$0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

2000 2002 2004 2006 2008

Revenues by Service Type(in billions USD)

Cable Digital Cable PPV VOD

$0

$15

$30

$45

$60

$75

2000 2001 2002 2003 2004

Deutsche Banc Alex. Brown Cable Industry Outlook & DBS Report

Profiting from the delivery of new services is essential to meeting the future revenue expectations for the business

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New service offerings will drive greater complexity and expense intoorganizations already facing issues with customer satisfaction,

performance reliability and churn

Sources: FCC Cable Services Bureau Annual Reports on Competition in Video Markets, 1992-2002. J.D. Power and Associates, 2004 Cable/Satellite TV Customer Satisfaction Study

Cable companies must develop strategies to minimize operational costs while delivering new services and improving customer service

US Cable/Satellite Customer Satisfaction

DirecTV

Adelphia

Cablevision Systems

Charter Communications

DISH

WOW!

Cox Communications

BrightHouse Networks

Comcast

Insight Communications

Mediacom

RCN

TimeWarner Cable

CustomerService

PerformanceReliability

Overall Satisfaction

Changing Annual Revenue Mix

0

100

200

300

400

500

600

1 2 3 4

Operating Expense

Basic Service Revenues

Advanced Service Revenues

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Standardizing and optimizing critical business processes based on eTOM Framework helps cable companies respond to these challenges

TMF eTOM FrameworkeTOM

Provides a common process framework for telecom service providers

Covers Strategy/Infrastructure/Product, Operations, and Enterprise Management processes

Reflects the input and support of telecom service providers around the world

eTOM enables service providers to

Guide the design and development of business processes

Identify and analyze the cost of business processes

Develop a standard approach to business process design

5

Vitria is using the eTOM framework as the foundation for its newproduct, Vitria Order Accelerator

Using the eTOM FrameworkVitria Order Accelerator

Orchestrates enhanced workflow management and automated support of key Order processes, including Selling, Order Handling, and Service Activation

Includes 14 pre-defined business process models from the eTOM Fulfillment framework

Areas of focus include:Selling Order Handling Service Configuration and Activation Resource Provisioning

CustomerAnalytics

EnterpriseReporting

ProductRepository

EnterpriseData

Channels

ProspectCustomer

DealerCSR

Party

Business Systems

ServiceProvisioni

ngM

iddl

ewar

e

Provisioning SubscriberManagement

Billing OrderMgmt.

IRD/STB

OperationalDataStore

Email/Mail/Fax

ContactCenter

Internet/Web

Mobile/Wireless

IVR

POS

FutureChannel

Vitr

ia O

rder

Acc

eler

ator

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Why eTOM?

Using the eTOM Framework

CustomerAnalytics

EnterpriseReporting

ProductRepository

EnterpriseData

Channels

ProspectCustomer

DealerCSR

Party

Business Systems

ServiceProvisioni

ng

Mid

dlew

are

Provisioning SubscriberManagement

Billing OrderMgmt.

IRD/STB

OperationalDataStore

Email/Mail/Fax

ContactCenter

Internet/Web

Mobile/Wireless

IVR

POS

FutureChannel

Vitr

ia O

rder

Acc

eler

ator

• eTOM defines processes to improve the efficiency of telecom companies

• eTOM processes provide a standard, holistic view across applications, functions, and departments

• eTOM processes are created by telecom for telecom

•Vitria Business Ware is the platform used to model and automate these processes

•BusinessWare has strong Business Process Management and integration components to facilitate integration

•BusinessWare and Vitria Order Accelerator assemble these processes to create a telecom solution based on the eTOM framework

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UPC

UPC Broadband 8M subscribers in 11 countries~ 6.6M analog cable subscribers (TV)~ 460K telephony subscribers in 6 countries~ 800K broadband internet subscibers~ 140K digital television customers in five countries

Business Vision:"Our vision is to create shareholder value by providing the most comprehensive and highest quality broadband network services for our residential subscribers and to do so at a lower cost with better service than our competitors."

Order Management Approach: Automate processes for the delivery of all servicesDeliver a single platform for country operations

Order Management Solution:Create a provisioning and order management platform to deliver process and integration across all associated applications

UPC Overview

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UPC

Growth through acquisition results in a highly complex IT environment Redundant, non-standard business processes Multiple legacy systems

Triple-Play product strategy (voice, data, video) required modern IT solution

Implemented new BSS/OSS application, named Derby Initial implementations in Netherlands and France in 2000

Business and IT requirements mandated an evolution towards industry standards (eTOM and NGOSS)

Developing process and IT standards to enable greater reuse of IT components across products and geographies

Presenting business case for the broader application of eTOM and NGOSS based on experience with delivery of Flow Through Provisioning in Poland

UPC Background

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UPC

Achieving Efficiencies Thru eTOMOffers an industry standard process framework

easier to develop and restructure critical business processes

Provides a common foundation decouples common business processes from underlying applicationseasier to integrate, enhance, upgrade, and migrate based on future requirements

Facilitates extension of core capabilities/functions/processes Facilitates expansion across geographies

The case for eTOM at UPC

CustomerAnalytics

EnterpriseReporting

ProductRepository

EnterpriseData

Channels

ProspectCustomer

DealerCSR

Party

Business Systems

ServiceProvisioni

ngM

iddl

ewar

e

Provisioning SubscriberManagement

Billing OrderMgmt.

IRD/STB

OperationalDataStore

Email/Mail/Fax

ContactCenter

Internet/Web

Mobile/Wireless

IVR

POS

FutureChannel

Vitr

ia O

rder

Acc

eler

ator

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UPC

Vitria Order Accelerator

eTOM Processes

CB

Os

Customer Order

Service Order

Resource Specification

Execution Plan

Service

VOA Framework

Vitria BusinessWare

cSPIRE

Application Service

Connector

Transformation

WIZARDDesign GoalsImplement a “Service Oriented Architecture” (SOA)Create re-useable ServicesUse VOA as a “Black-box”

Project ImpactIntegrated Order PlatformSingle View of the Order ProcessPlug & Play ReadyReduced time to deployPrototype for future versions

Application Service

Connector

Transformation

Application Service

Connector

Transformation

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UPC

The benefits of using eTOM at UPC PolandReduced order to cash cycle by approximately 20%

Eliminated manual work stepsEliminated manual error correction processesEliminated re-keying of data across multiple systemsAccelerated troubleshooting activities

Developed a scaleable, transportable platform for order managementInstituted common approach, processes and business vocabulary that can be extended and used across multiple UPC business locations

Created an environment for continued business process improvementsReduced effort required for future application upgrades and migrations

Achieved substantial savings on this and related future order management projects

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UPC

Next steps

Extend functionality to support new business processes and services

Extend solution to new geographies

Continue to improve business process monitoring

Support future migrations to next generation BSS applications

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Questions?

Thor Johnson – Managing Director, Telecommunications

tjohnson@vitria.com

Marek Stawinski – VP, Architecture and OSS

mstawinski@upccorp.com