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Observations on Convergent Billing

Observations on Convergent Billing. Experiences of a Program Manager Billing. Context. Experiences mainly from Billing Program for the business market in Division Fixed Earlier approach Billing Program was based on large scale migration of all existing billing chains

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Observations on Convergent Billing

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  1. Observations on Convergent Billing Experiences of a Program Manager Billing

  2. Context • Experiences mainly from Billing Program for the business market in Division Fixed • Earlier approach Billing Program was based on large scale migration of all existing billing chains • Using Commercial-off-the-Shelf (COTS) solution • Conducted by an external System Integrator • Project cancelled: too large and too expensive • Current approach Billing Program - runs for 1.5 year now - • Differentiation between traditional and new portfolio • Executing several billing projects with smaller scope and investments • Use of COTS solutions that are already in place (Siebel, Portal Infranet) Observations on Convergent Billing - Peter A. Rake

  3. KPNs approach to convergent billing • Billing program business market runs projects with three goals • Increase customer satisfaction • Improve time-to-market • Lower TCO • From product focus (‘stovepipes’) to customer focus • Convergence in billing chains • for traditional portfolio driven by Operational Excellence • for new (IP based) portfolio driven by customer orientation and revenue growth • Convergence of fixed and mobile billing in initial phase • Electronic bill presentment • Accounts receivable Observations on Convergent Billing - Peter A. Rake

  4. Current billing chains based on portfolio (stovepipes) Order entry Mediation Bill rating/ calculation Bill presentment A/R Bill calcu- lation Bill distri- bution Delivery / provisio- ning Collecting/ Payment mgt Polling, collecting Guiding/ formatting Print and mail Ordering Pricing Rating KPN Mobile: Pre-paid services KPN Mobile: Post-paid services Residential market: ISP (XS4ALL – Planet Internet) Residential market: Traditional Voice Residential market: New services (VoIP – KPN Television) Business market: Traditional Voice Business market: Leased Lines Business market: # Traditional data services (e.g. ATM – Frame Relay – DigiAccess) Business market: PABX services Business market: New IP services (IP VPN – VoIP – Office DSL) Observations on Convergent Billing - Peter A. Rake

  5. Convergence step 1: Rationalization - less chains within each segment Order entry Mediation Bill rating/ calculation Bill presentment A/R Bill calcu- lation Bill distri- bution Delivery / provisio- ning Collecting/ Payment mgt Polling, collecting Guiding/ formatting Print and mail Ordering Pricing Rating KPN Mobile: Pre-paid services KPN Mobile: Post-paid services Residential market: Traditional Voice Residential market: New services (VoIP – KPN Television – ISP) – Triple Play Business market: # Traditional data services Business market: PABX services Business market: New IP services (IP VPN – VoIP – Office DSL) Observations on Convergent Billing - Peter A. Rake

  6. Convergence step 2: Customer Focus - new portfolio concentrated in one chain Order entry Mediation Bill rating/ calculation Bill presentment A/R Bill calcu- lation Bill distri- bution Delivery / provisio- ning Collecting/ Payment mgt Polling, collecting Guiding/ formatting Print and mail Ordering Pricing Rating KPN Mobile: Pre-paid services KPN Mobile: Post-paid services Residential market: Traditional Voice Residential market: New services (VoIP – KPN Television – ISP) – Triple Play Business market: # Traditional data services Business market: PABX services Business market: New IP services (IP VPN – VoIP – Office DSL) Observations on Convergent Billing - Peter A. Rake

  7. Convergence step 3: Customer Focus - shared platform for Bill Presentment and A/R Order entry Mediation Bill rating/ calculation Bill presentment A/R Bill calcu- lation Bill distri- bution Delivery / provisio- ning Collecting/ Payment mgt Polling, collecting Guiding/ formatting Print and mail Ordering Pricing Rating Postbilling Platform for Electronic Bill Presentment Generic tool for A/R Customer oriented KPN Mobile: Pre-paid services KPN Mobile: Post-paid services Residential market: Traditional Voice Residential market: New services (VoIP – KPN Television – ISP) Business market: # Traditional data services Business market: PABX services Business market: New IP services (IP VPN – VoIP – Office DSL) Observations on Convergent Billing - Peter A. Rake

  8. Lessons learned • Contribution billing to revenues should not be exaggerated • Business customers nowadays focus on price and quality of service • Billing is a dissatisfier but not a differentiator for selecting between service providers and operators (especially business market) • Support for large scale billing projects in business is low • Evolution instead of revolution • Commitment to billing projects lasting more than one year is difficult; a steady flow of smaller projects is supported • Product managers and marketeers are not very billing minded • Not only focus on billing systems but also on billing processes Observations on Convergent Billing - Peter A. Rake

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