Constraints & Bottlenecks in Service Provisioning

1. Constraints & Bottlenecks in Service Provisioning

2. Order to Activation (O2A) The entire process of traditional order-to-activation has become complex because of humongous increase in number of new services, applications and devices storming the ecosystem Bundling of voice, data, video on demand, gaming, location based services, enterprise integration with heterogeneous devices are opening fresh revenue streams but at the same time are threatening customer satisfaction levels and customer retention. Prodapt as a thought leader in the global telecom market, has come up with a capability for streamlining the O2A process for a customer provisioning system by removing its bottlenecks and reduced the constraints by reducing huge manual activity. Order to activation is the end to end process which starts with capturing of order and ends at billing of services offered. It goes through the steps of Service design, Service activation and Verification. Prodapt is currently working with TIER1/TIER 2 customers based out of North America region for optimizing their customers O2A process for improved Order Management Systems Copyright © Prodapt Solutions 2 Confidential & Restricted

3. Why traditional O2A approach is not optimized? Business Objectives Affected By O2A Process No Single Point Of View Revenue leakage prevention 82% O2A process impacts the CSP’s line, as customer experience bottom well Improved Customer Care 82% Improve OPEX of manual handling 67% Of service providers agree that the end to end view of the O2A process is very important. But it remains very fragmented and complex 82% as 40% of CPS have both more than five direct, and more than five indirect channels involved in the O2A process as well as at least five internal departments High Level Of Manual Touch KPI’s Are Not Measured In Real Time No Automation within the O2A process 52% Not measured in the real time / near real time Yes 48% 0-20% 80 – 100% Indicated only 0-20% of automation within the O2A process Indicated only 80-100% of automation 28% 13% A high level of manual touch points A high level of error and faults Negative impact on revenue and customer satisfaction Low levels of automation 52% Copyright © Prodapt Solutions 3 Confidential & Restricted

4. “Known & Unknown” constraints Unknown constraints, solution needs to be identified Known constraint, solution requires innovation Fallout Handling Fragile Systems Lengthy Installation Dis- Dependency on Third- party-carrier Cross Network Orders Inaccurate Product Catalogue connected swivel-chair systems Need Solution Known constraint, solution requires additional expertise & action Revenue Mgt/ Cost Control Custom code to adopt to change Advance Infrastructure & Technology Multiple Legacy Applications Order Inaccuracy Delayed Due Dates Data Quality Fragmented Process Copyright © Prodapt Solutions 4

5. The attempts being made by TELCO operators… INEFFICIENT ORDER-TO-ACTIVATE CHAIN Market Study Customer Customer Order Configure and Entry CSP's have been attempting to address the challenges in the O2A process for long time now with a short term view. Factory Order(s) Provision Activate Channel Web Some of the ways that CSP’s have tried to address the challenges are as below Speech Sell/ Contract/ Account Setup Mail Eliminating manual components to improve efficiency and reduce errors Replacing their legacy technology with hardware and software Some have even got the process optimization, in order to eliminate redundant sub process. Enable Validate E-Mail Sales Process Chat Customer Kiosk Invoice Collect Cash Every CSPs have consciously attempted to improve their order-to- activate process. But the outcomes have been short of expectation, even disappointing. As customers have become more demanding and services more complex, operators are discovering that the traditional approach to fulfilling subscriber orders isn’t good enough anymore. To enable product differentiation, and gain the agility needed to succeed against competitors, the service providers need to implement an optimal waiting time & less activation time to address their lead-to-activate issues. O2A affects the key business objectives of every Service Provider today: revenue and customer satisfaction This document is targeted at CSPs who have inefficient O2A process which needs optimization in terms of end to end processing time and help them to achieve the fast time to market. *Source: Ovum 2014 Copyright © Prodapt Solutions 5

6. Sub-systems involved in O2A Lead Quote- Purchase Order/BQ Order Opportunities in funnel Provisioning sub-system Activation sub-system Revenue Management Management System Management sub-system L2Q - Lead to Quote O2A - Order to Activate Pre-billing 15% 20% 65% * Percentage of average time spent in each system WHY PROVISIONING ALONE TAKES MORE TIME IN O2A PROCESS TECHNO-FUNCTIONAL GLITCHES NO STANDARD PROCESS MORE REDUNDANT STEPS Copyright © Prodapt Solutions

7. Provisioning “New” Order – High Level Process Flow Connecting Facility Assignment team works on circuit design Provisioning team acknowledges the FOC from other carrier Sales team submits enriched order Circuit ID team works on the Circuit naming Provisioning team submits service request to other carrier Process flows doesn’t involves other carriers Process flows involves other carriers WT AT PT WT AT PT WT AT PT WT AT PT 4 days 1 days 40 min. 10 days3 days 40 min. 5 days 1 days 20 min. 4 days 2 days 5 min. Testing team obtains ‘circuit status’ from other carrier via Voice auth. Incident/Servi ce Request placed for “Cross Connects” Provisioning team acknowledges the DLR from other carrier Technician works on Cross connects installation Assign & validate for IP Requirement Average Waiting Time WT Average Assigned Time AT WT AT PT WT AT WT AT PT WT AT PT WT AT PT Average Processing Time 1 days 6 days 15 min. 4 days 1 days 1 days 4 days 10 min. 3 days 1 days 15 min. 3 days 4 days 5 min. PT Provisioning team ACK’s the provisioning completion from other carrier - *Prodapt’s Capability on Optimization Testing team validates CKT via loop test Schedule for activation (Hotcut) Validate for assigned pricing Activation of Data & Voice products **FOC- Firm Order Confirmation, DLR- Design Layout Record WT 25 days3 days AT WT 2 days AT PT WT 1 days AT PT WT 41 days3 days AT PT WT 29 days15 days60 min. AT PT 6 days 15 min. 4 days 10 min. 30 min. Copyright © Prodapt Solutions 7

8. Most time consuming process – Deep dive analysis Max. average time spent in each block in Provisioning system Success factors which reduced the delay Block Name Critical Reasons Multiple circuits can't be tested at the same time – Restriction in Testing Scheduling based on Third Party carrier availability WT AT PT Testing team validates CKT via loop test Manual intervention required in Loop testing Technicians appointment Calendar 41 days 3 days 30 min. Dispatching technicians to field Robust application platforms Third party Carrier Dependency Correct product/service at first time WT AT PT Synchronization of applications – System or automation failure Activation of Data & Voice products Effectively capturing the order with clean data 29 days 15 days 60 min. Manual Testing on Ethernet product Auto identification of cross connect feasibility Delay in getting other carrier legs Limited Automation WT AT PT Simplified Product Offering Schedule for activation (Hotcut) Missing/Incorrect Info during design leading to rework Enrichment of missing parts of the order information from surrounding systems 25 days 4 days xx min. Inventory Data quality issue leading to fallout and rework Copyright © Prodapt Solutions 8

9. Key Takeaways: Success factors which reduced the delay Manual follow up of orders falling into Jeopardy Overall processing time of O2A can be optimized by reducing the major time spent in three highlighted blocks which adds to the delay. Our major recommendations are given below Data quality issue leading to fallout Number of manual touch points Complaint calls related to order Goodwill adjustment payment Order cancellation rate Order delay Physical Scheduling 3rd Party Carrier Availability First touch Order Resolution Volume of orders handled in given timeframe - Optimized scheduling based on 3rd party carrier availability for testing and followed by Hot cut - Effectively managing technicians appointment calendar - Completion in 1st truck roll - Uncompromising data accuracy during order capture process makes order fulfilment completes on time as expected Net promoter score increases Right first time completion Order flow through rate Customer satisfaction Activation lead time Copyright © Prodapt Solutions 9

10. Conclusion … Today's telecom industry is shifting from the market share acquisition to customer satisfaction focused strategy. Operators stand to lose major revenue if their order-to-activate processes are not fast, sophisticated, nimble and able to get the job done right the first time. Operators are focused on how to differentiate, target their market segment, and find better ways to understand their customers. The vision of every operator should be having highly automated O2A process more than 70% to achieve the fast time to market. Copyright © Prodapt Solutions 10

11. Amsterdam London New York THANK YOU! Tualatin Dallas Chennai Bengaluru Johannesburg INDIA USA THE NETHERLANDS SOUTH AFRICA UK Prodapt Solutions Europe London: Devonshire House, 60 Goswell Road, EC1M 7AD Ph: +44 (0) 11 8900 1068 Fax: +44 (0) 11 8900 1069 Prodapt Solutions Pvt. Ltd. Chennai: Prodapt North America Tualatin: 7565 SW Mohawk St., Ph: +1 503 636 3737 Fax: +1 503 885 0850 Prodapt Solutions Europe Amsterdam: Zekeringstraat 17A, 1014 BM Ph: +31 (0) 20 4895711 Prodapt SA (Pty) Ltd. Johannesburg: No. 3, 3rd Avenue, Rivonia Ph: +27 (0) 11 259 4000 Fax: +27 (0) 11 259 4111 1. Prince Infocity II, OMR Ph: +91 44 4903 3000 Fax: +91 44 4903 3010 Prodapt Consulting BV Rijswijk: De Bruyn Kopsstraat 14 Ph: +31 (0) 70 4140722 Fax: +31 70 3030047 Dallas: 222 W. Las Colinas Blvd., Irving Ph: +1 972 201 9009 Fax: +1 972 501 9019 2. “Chennai One” SEZ, Thoraipakkam Ph: +91 44 4230 2300 Fax: +91 44 4903 3010 New York: 1 Bridge Street, Irvington Ph: +1 646 403 8158