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Kap. 12 – The Devil Is in the Details

Kap. 12 – The Devil Is in the Details. How Information Technology Is Conquering the World: Workplace, Private Life, and Society Professor Kai A. Olsen, Universitetet i Bergen og Høgskolen i Molde – i samarbeid med Chief Information Officer (CIO) og professor Jim G. Williams.

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Kap. 12 – The Devil Is in the Details

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  1. Kap. 12 –The Devil Is in the Details How Information Technology Is Conquering the World: Workplace, Private Life, and Society Professor Kai A. Olsen, Universitetet i Bergen og Høgskolen i Molde – i samarbeid med Chief Information Officer (CIO) og professor Jim G. Williams.

  2. Telekommunikasjonsindustrien • Deregulering av telekommunikasjons-industrien i USA i 1996 • Hensikt: • Åpne for nye aktører • Mer konkurranse • Lavere priser • Flere produkter • Utnytte ny teknologi (IP-telefoni, mobil…) • Også deregulering av fly, tog, bussruter, kraft-levering… • Samme idé i Norge

  3. Konkurranse

  4. Deregulering

  5. 1996 • De tradisjonelle selskapene ble tvunget til å åpne sin infrastruktur for nykommere: • Linjer • Sentraler • Programvare • En initial suksess, mange nye selskaper kom på kort tid • Senere viste det seg at dette ikke var så enkelt.

  6. Problemer • Operations and Support Systems (OSS): • Registrere nye kunder • Sette opp samtaler • Fordele inntekter mellom aktører • Svært komplisert • Bare delvis standardisering • Skapte problemer for de nye aktørene

  7. Ikke enkelt • I år 2000 var det mer enn 700 nye teleselskap i USA • 90 % av alle måtte gi opp. • En fikk ikke det konkuranseutsatte markedet en hadde bedt om.

  8. Telekommunikasjon spesielt vanskelig • Basert på en teknologi som ble oppfunnet for 150 år siden • Dominert av store aktører i 130 år • Mesteparten av infrastrukturen er lagt ned over lang tid, til en meget stor kostnad. • Forskningsdrevet, hard konkurranse fra nye løsninger (dataoverføring, streaming, IP telefoni, Skype)

  9. Krevende tjenester • Mens et nytt flyselskap kan nøye seg med å trafikkere noen få strekninger, må teleselskapet akseptere at kundene ringer til hele verden • Teleselskapet må operere under et strengt regelverk (nødsamtaler m.m.) • Det krever samarbeid også med konkurrenter • Mange standarder, store avvik fra standarden • Komplekse prisfastsettings-systemer (verre i USA enn i Norge)

  10. Forutsetter • Gode backoffice systemer • De finnes ikke • Krever stor egeninnsats for å få selv ferdige systemer til å virke • Krever høy egenkompetanse • Vi skal se på en case, et CLEC (Competitive local exchange carrier)

  11. Case: BroadStreet Communication • Et eksempel på et teknologisk oppstartfirma • Et amerikansk firma som forsøkte å utnytte deregulering i telesektoren • Et godt eksempel på et oppstartfirma og de problemer som kan oppstå • Merk at dette firmaet hadde som idé å tilby sin egen teknologi (som Tele2 og Netcom, men ikke som Chess, Ludo, Talkmore… som er rene salgskontor) • Her skal vi se på alt fra forretningsidé, teknologi og tekniske løsninger. • Her presentert av Jim Williams som var CIO (Chief Information Officer) for firmaet • For en mer generell beskrivelse se kap. 12 i læreboken.

  12. Broadstreet - Business Plan • What Offerings (services, products)? • Who and Where are the customers? • Who and Where is the competition? • How will the services be delivered? • What technologies can be utilized? • What is the cost of Selling and delivering service? • What resources are required to deliver and support the services?

  13. The Business Plan • What system architecture is required? • What processes, functions, procedures, etc. are needed? • What are the capacities and volumes of the resources needed? • What Financial Resources are Needed? • The Economic Model

  14. Company Background • Competitive Local Exchange Carrier (CLEC)/(Telephone Company) • 3 Venture Capitalists - $62 Million • 1 Finance Company - $120 Million • 16 markets (cities) East Coast USA • 8 Founders • Estimated 400 employees

  15. Company Background • Broadband Services to Businesses • Small to Medium (6 – 50 employees) • Underserved Market by ILECS • DSL (Digital subscriber line) to the Premise (datalinje til kunden, VoIP…) • ATM (Asynchronous Transfer Mode) backbone (tradisjonell telelinje, VoATM) • All Digital Packet Switched Network to the PSTN (Public Switched Telephone Network) • Offices in each city fully staffed • Sales (15), Customer Care(3), Technicians(3) • Management, etc. (4)

  16. Technology Architecture Telephone 4 – 16 port IAD at Customer Premise Fax PC/ Hub/ Router ILEC Central Office Local Loop LSO with a 720 Port DSLAM (Digital Subscriber Line Access Multiplexer) 1Central Office per market PSTN 45 – 155 Mbps Digital Switch Pathstar/5-ESS Voice PSAX ATM Router GR303 ATM 911 Center Data Springtide Router ILEC Central Office LSO NOC Network Alarms and SNMP Packets Other Market PSAX NOC Data Internet

  17. Services • Voice Services • Local • Long Distance • Voice Mail • Features (Call Forward, Caller ID, etc.) • PBX and Keyset Support • Calling Cards • Data Services • Internet Access (386 kbps to 2.3 mbps) • VPN • Email Web Hosting

  18. Other Players • ILEC (Incumbent Local Exchange Carrier) • Own local loops • Own Telephone Numbers • Own the Customer • IXC – Interexchange Carriers (Long Distance) • ITC – Independent Telephone Companies • 911 • Caller ID, Ported Numbers

  19. New York State LATAs LATA - Local access and transport area (US inndeling i teledistrikt)

  20. Svært komplisert • Registrering av kunder • Oppsetting av samtaler mellom mange aktører • Kompleks prissetting • Kompleks fordeling av inntekter (mellom leverandører) • Vi skal se på noe av denne kompleksiteten (detaljene her er ikke pensum)

  21. Call Direction CLEC TO BA (ILEC) LOCAL Fra nytt firma til eksisterende firma lokale samtaler. LOCAL/TOLL TRUNKS CLEC EO BA EO TST or DT • BA Bills CLEC - Usage • Local charges for MOUs • TANDEM • or • END OFFICE • Usage Billing Concept • Reciprocal Compensation • Factors Exchange • Required • CLEC to BA • PLU Factor • BA Bills CLEC - Facilities • Tandem Switched Transport (TST) • Entrance Facility or Cross Connect • Direct Trunked Transport (DT) • Entrance Facility or Cross Connect • Channel Milage (EO to EO) Record Exchange Required NONE

  22. Call Direction CLEC TO BA (ILEC) INTRA LATA TOLL Fra nytt firma til eksisterende mellom teleområder (LATA) LOCAL/TOLL TRUNKS CLEC EO BA EO TST or DT • Usage Billing Concept • Switched Access • Factors Exchange • Required • CLEC to BA • PLU Factor • BA Bills CLEC - Usage • Tandem Connection • Local Switching • Tandem Switching • Tandem Transport • Fixed • Per Mile • RIC • CCL • End Office Connection • Local Switching • RIC • CCL • BA Bills CLEC - Facilities • Tandem Switched Transport (TST) • Entrance Facility or Cross Connect • Direct Trunked Transport (DT) • Entrance Facility or Cross Connect • Channel Milage (EO to EO) Record Exchange Required NONE

  23. Call Direction BA (ILEC) TO CLEC LOCALFra eksisterende til nytt – lokale samtaler. LOCAL/TOLL TRUNKS CLEC EO BA EO TST or DT • CLEC Bills BA - Usage • Local Termination charges • for MOUs in accordance with • CLEC tariff/agreement. • Usage Billing Concept • Reciprocal Compensation • Factors Exchange • Required • BA TO CLEC • PLU Factor • CLEC Bills BA - Facilities • Tandem Switched Transport (TST) • Entrance Facility • Direct Trunked Transport (DT) • Entrance Facility Record Exchange Required NONE

  24. Call Direction BA (ILEC) TO CLEC INTRA LATA TOLLFra eksisterende til nytt mellom områder (LATA) LOCAL/TOLL TRUNKS CLEC EO BA EO TST or DT • CLEC Bills BA - Usage • Switched Access Charges • for MOUs in accordance • with CLEC Tariff/Agreement. • Usage Billing Concept • Switched Access • Factors Exchange • Required • BA to CLEC • PLU Factor • CLEC Bills BA - Facilities • Tandem Switched Transport (TST) • Entrance Facility • Direct Trunked Transport (DT) • Entrance Facility Record Exchange Required NONE

  25. Call Direction CLEC TO AN IXC (ATT, MCI, SPRINT)Fra nytt til langdistanse-selskap. IXC SUBTENDING OZZ/CIC FGD/B (Group) CLEC EO • Usage Billing Concept • Switched Access • Meet Point Billing • Multiple Bill/Multiple Tariff Factors Exchange Required IXC to CLEC - FGD Factors • BA Bills IXC - Usage • Tandem Switching • Portion of Transport • CLEC Bills IXC - Usage • Switched Access Charges • for MOUs in accordance • with CLEC tariff/agreement. • CLEC Bills BA - Usage • Not Applicable • Record Exchange • Required • CLEC makes originating • record • CLEC to BA • EMR 115002 • (Exchange Message Record) • BA Bills CLEC - Facilities • Tandem Switched Transport (TST) • Entrance Facility or Cross Connect

  26. Call Direction IXC TO A CLECFra langdistanseselskap til nytt. IXC SUBTENDING OZZ/CIC FGD/B CLEC EO • Usage Billing Concept • Switched Access • Meet Point Billing • Multiple Bill/Multiple Tariff Factors Exchange Required IXC to CLEC - FGD Factors • BA Bills IXC - Usage • Tandem Switching • Portion of Transport • CLEC Bills IXC - Usage • Switched Access Charges • for MOUs in accordance with • CLEC tariff/agreement. • CLEC Bills BA - Usage • Not Applicable • Record Exchange • Required • BA to CLEC • EMR 110101 (Exchange Message Record) • CLEC to BA • EMR 115002 • BA Bills CLEC - Facilities • Tandem Switched Transport (TST) • Entrance Facility or Cross Connect

  27. Call Direction CLEC TO CLEC LOCALFra nytt til nytt lokalsamtaler. LOCAL/TOLL TRUNKS (Originating) (Terminating) CLEC EO CLEC EO • BA Bills Originating CLEC - Usage • Transit Service Charges • Recovery of Local Termination charges • for MOUs paid by BA to Terminating CLEC. • Terminating CLEC Bills BA - Usage • Local Termination charges • for MOUs in accordance with • Terminating CLEC tariff/agreement • Usage Billing Concept • Transit Service Factors Exchange Required Record Exchange Required 11-01-01 to NYSP NYSP bills Originating CLEC for Transit Service Charges

  28. Call Direction CLEC TO ITC LOCAL/INTRA LATAFra nytt til langdistanseselskap lokalt eller innen området (LATA) FGC-LIKE TRUNKS LOCAL/TOLL TRUNKS ITC EO CLEC EO MP Factors Exchange Required NONE • Usage Billing Concept • Transit Service • Meet Point Billing • BA Bills CLEC - Usage • Tandem Switching • Tandem Transport • - Fixed • - Per mile from SWC to MP • Independent Bills CLEC - Usage • Charges for MOUs in accordance • with tariff/agreement. • Record Exchange • Required • BA to ITC • - 110101 • ITC to BA • - 115002 CLEC and Independent must have billing agreement. ITC subtends a BA Access Tandem

  29. Billing (Arbor/BP) Pre-Sale System (BroadStreet) Order Management System (Arbor/OM) Provisioning (Dset, BA) Customer Care (Arbor/BP) Financial Accounting System Internet, Intranet, Extranet E911, PIC/CARE Number Portability Other Interfaces (Arbor/BP) Payroll (Payroll One) Web Site Human Resource System (Employease) Help Desk Trouble Ticket (Remedy) System Components

  30. Build or Buy Decision • Time to Build vs. Time to Implement • Cost to Build vs. Buy Cost • Maintenance/Support Costs • Internal Resources to Operate • Control over Changes • Quality of Support • Functionality • Openness to Integration

  31. Customer Inquiry Customer Account Maintenance Prospects, LSOs, Employees, Inventory, Maps, Regulatory, Competition, etc. ILEC, IXC Revenue and Payments GL, AR, AP, Assets, Purchasing, etc. Payroll Arbor/BP Customer Care Analysis Pre-Sale System Financial Accounting System Services Rates Discounts Formats Human Resources Sales System Order Data Network Monitoring Fault Management Arbor//BP Billing Customer Intelligence Arbor/OM Commissions Databases Contract, Letter Arbor/OM Remedy Trouble Ticket ILECs, CLECS, IXCs Installation Configuration Provision E-Bonding Maintenance Tools LoopCare Charges, Inventory, Times BillDats Software Notifications Customer, Sales Customer Usage Back Office System Flow 03/16/2000 ILEC, IXC

  32. BackOffice Software Architecture Trading Partners System Interface (EDI, CORBA) Software Architecture Validation Quintessent ILEC Provisioning ILEC & Quintessent Informix DBMS SUN SOLARIS O.S. HPUX O.S. iPlanet Network Fault Management (NFM) Web Server OM Arbor/BP LoopCare Presale & Sales BillDats Sybase DB Remedy Trouble Ticketing Oracle DBMS Oracle DBMS DSL line Qualification Remedy Help Desk Windows 2000 O.S. Web Server (IIS) Financial & Asset Management Mail Server (Exchange) Desktop Applications SQLServer GIS System Public BroadStreet Employees BroadStreet Customers

  33. BackOffice Support Architecture 5ESS Switches Sprint LD 3COM Messaging CMDS ILEC/LSR PIC/Care Pre-Order Gateway Server Mediation Servers Remote Network Devices DBMS Customer Care Arbor/OM and Arbor/BP Servers Invoicing Cajun View NOC and Provisioning Servers Remedy Trouble Ticket Order Entry Payments Navis Product Configuration Oracle DBMS Journals LoopCare Oracle DBMS NFM Ordering and Provisioning Data Capture 911 Service Requests ILECs Verizon, Etc. Financials Windows 2000 Servers E911 MSAG Data Updates Desk Top Apps Remedy Help Desk Sprint Mgt Inventory IPs, Tele No. IADs, Stinger Web Server SQL Server DBMS Mail Server LNP Internet Intranet Extranet LIDB Circuits

  34. Critical Factors for Success • In real estate the 3 critical factors are: • Location, Location, and Location • In Telecommunications the 3 critical factors are: • Execute, Execute, and Execute

  35. Issues • Many standard systems were inadequate • Sales Force Automation on Laptops was hard to control (Sales People) • Marketing was constantly dreaming up new plans • Electronic Billing format standards were not followed by the ILECS and IXCs. • ILECS were not very cooperative

  36. Konkurranseutsetting • Deregulering fører ikke nødvendigvis til en god konkurransesituasjon • Selv om en med telekommunikasjon forsøkte å imøtekomme alle krav fikk en ikke den konkurransen en håpet på. Kompleksiteten i å sette opp samtaler og i betalingssystemene gjorde det vanskelig for nye aktører • I andre sektorer kan en møte andre problemer: • For få aktører (ferge, jernbane og Hurtigrute i Norge) • Samarbeid mellom aktører (asfalt m.m.) • For store samfunnsmessige konsekvenser ved å miste aktører (bank og forsikring) • Problemet er selvfølgelig at de eksisterende bedriftene ikke er interessert i konkurranse.

  37. Konklusjon • En mengde detaljer kan drepe et datasystem, et prosjekt eller en foretningsidè. • I vårt eksempel var problemet svak standardisering i infrastrukturen og en mangel på adekvat programvare. • Ellers er suksessen til et prosjekt ofte avhengig av at vi kan sette realistiske mål • og unngå ”nice-to-have” funksjoner. Dvs. at vi konsentrere oss kun om det viktigste (i hvertfall i første fase).

  38. Felles prosjekt: Et universitetssystem • La oss anta at universitetsledelsen vil ha et system som: • Lager timeplan ut fra søkning til fag • Unngår kollisjoner og fordeler forelesningene for hver student jevnt over hele arbeidsuken • Fordeler fag på rom, ut fra kravene fra hver enkelt foreleser • Slik at rommene er utnyttet best mulig, og slik at studentene har muligheter for å komme fra en forelesning til den neste innen 15 minutter • Er dette greit å få til? Ved UiB? Ved Høgskolen i Molde? • Vil det være enklere ved et nytt universitet?

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