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BSS Forum Moscow Business Transformation, what for?

BSS Forum Moscow Business Transformation, what for?. Ivan Hlavanda, Senior Business Consultant, GBC BSS Product Line, Huawei G ermany +49 1622 106269 Ivan.Hlavanda@huawei.com. Content. Business Transformation for MNP market. 1. 2. Business Transformation Key aspects. 3. Q & A.

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BSS Forum Moscow Business Transformation, what for?

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  1. BSS Forum MoscowBusiness Transformation, what for? Ivan Hlavanda, Senior Business Consultant, GBC BSS Product Line, Huawei Germany +49 1622 106269 Ivan.Hlavanda@huawei.com

  2. Content Business Transformation for MNP market 1 2 Business Transformation Key aspects 3 Q & A

  3. Car Buying Story Are You interested in VIN number portability? • Owner of the CAR A is willing to buy CAR B unless his VIN number is ported? • Owner of CAR B is refuting to port VIN number from CAR A • Question nr.1: is this situation stopping the deal? • Question nr.2: Why is Telco different?

  4. Overall MNP trends & Impact on European Market Percentage of Numbers Ported over Total Subscribers across Countries Prices declined after the introduction of MNP by 7.9%, on average, main impact on MNP is reduction of price and market concentration ( Source: European Commission 2010, data analysed in 2008 after first year of EU MNP regulations in paper by Cho, Ferreira, Telang in The Impact of Mobile Number Portability on Price, Competition and Consumer Welfare)

  5. MNP Challenges & Expectations • Expectations • Challenges Competitiveness • Regulatory & Market Pressure. Customer Experience • Churn • Retention Regulatory • Cost Common Approach • Declining revenues • Fragmented MNP solution Common Platform Trust Common Rules Bloomberg informs: Russia plans to end so-called “mobile slavery” by introducing mobile number portability from December, according to Telecommunications Minister NikolayNikiforov. The country will at least partially start number portability from Dec.1 as planned despite proposals to delay introduction until April 1, Nikiforov said, according to official government newspaper RossiyskayaGazeta. The ministry expects about three million Russians a year to change operator while keeping their mobile-phone number, Nikiforov told Rossiyskaya. Tele2 Russia and OAO MegaFon (MFON) have already successfully tested number portability, and OAO Mobile TeleSystems (MBT) and VimpelCom Ltd. (VIP) followed last week, the 31-year-old minister said. Russia has a mobile penetration rate of 164 percent, which means there are 1.64 active SIM-cards for each person in its population of 143 million, according to research agency Advanced Communications & Media. About half of Russians are potentially ready to switch mobile operators while retaining their mobile numbers, Nikiforov said.

  6. Successful MNP transformation MUST address challenges People Processes Communication between Regulator & CSPs Communication between CSPs Communication between CSPs & Vendors Communication between CSPs operational unit MNP Requests Channels MNP Provisioning Channels MNP Churn prevention MNP Retention portfolio MNP Fraud Management MNP Transformation Platforms MNP Platform Cost Centralised or distributed BSS & OSS technological constraints

  7. MNP transformation aspects: People • Bi-directional communication between Regulator & CSPs • MNP Approach suitable for all parties in terms of Cost sharing, MNP execution and Market Communication • Internal CSP communication with affected business units like Marketing, Loyalty, Retention, Sales, Fraud , Customer Care • Internal CSP communication with affected IT units like Ordering, Provisioning, Network, Partner Management, Billing • Vendor Communication seeking most suitable solution for given Regulatory & Market Conditions with appropriate cost and desired implementation approach MNP Transformation checklist People

  8. MNP transformation aspects: Process • Design of Common & Shared MNP Processes across transformed Market: Request Rules, Retention Rules, Provisioning Rules, Fraud Rules, Compliance Rules • Design of CSPs processes with regards to Customer Base: MNP Request Channels, MNP fees, Retention offers, Churn prediction, Strengthening of Fraud Prevention, Resource Management • Design of B2B processes between Donors & Recipients in MNP process: Fault Management, Customer Complaint Management, Regulatory Compliance • Design of processes related to Managed/Outsourced Service: Porting In SLA Management, Porting Out SLA Management, Integration to CSPs platforms, Exception & Fault Handling MNP Transformation checklist Process

  9. MNP transformation aspects: Platforms • Cost Bearing & Cost Sharing: dependent on centralised or distributed approach • MNP Architecture compliant with Regulatory requirements • Multi-directional or Bi-directional transaction flow • Atomic, Shared or Outsourced Fault Management • Disaster & Recovery • Reporting MNP Transformation checklist Platform

  10. MNP Orchestration Sample Billing of Ported SIMs Synchronisation between old and new service provider Retention Window Allowance for donor CSP to retain Customer . Regulatory reporting Compliance Provisioning of Request De/Provisioning of old service Activation of new service Porting Request Porting Out or Porting In? Within Contract and blacklisted? B2B reporting Settlements Compliance to agreed Market Specific regulations & norms

  11. UK MNP process example

  12. Every NO and SP is obliged to implement a MNP desk. The MNP desk is central contact only for other NOs and SPs in case of occurring trouble with a porting request. The MNP desk shall be reachable by German local fixed line phone, by e-mail and by German local fixed line fax. The following time table for availability is mandatory: working days 08:00 to 18:00. Saturdays (except German bank holidays) 08:00 to 12:00 In addition the following reaction times are valid: working days: reception between 0:00 and 11:59 = answer on same day up to 18:00 reception between 12:00 and 0:00 = answer on following day up to 12:00 Saturdays (except German bank holidays): reception between 0:00 Uhr and 11:59 = answer up to 12:00 of next working day German MNP process example

  13. Content Business Transformation to MNP market 1 2 Business Transformation Key aspects 3 Q & A

  14. Business Transformation is affecting entire revenue chain! Budget ERP Collection Billing Provisioning Ordering Customer Acquisition ProductOffer Revenue Management model from Shareholder perspective Contributing Factors Revenue Strategy = Differentiation (OPEX, CAPEX, Revenue, Profit) • Financial targets • Time to Market • Business Process Excellence • Operational Excellence • Risk Management • Wholesale Management • Customer Experience • Project and Change Management • Compliance Product Strategy = Differentiation Think about this domains from future perspective!

  15. An executive management initiative to align the company’s vision and strategy with its Processes, Systems, People, Organization and Marketing Mix. Business Transformation is about change and results. Key results are delivered by people. People run businesses. Businesses are run on platforms (i.e. B/OSS). Platform execute processes. Processes are managed by people. To transform business, we need to transform Process, Platform & People. Business Transformation is Realising Future Now...

  16. Executing Strategy via Business Transformation Market Challenges Operational Challenges Technology Challenges Financial Challenges Know Better, Do Better Maintain Business Momentum Improve Business Results Information Leadership 3 P’s of Business Transformation Process Industry Best-Practice Process (eTOM, ITIL etc.). Ensure E2E . People Organizational Vision, Strategy, Culture, Structure Platform IT Strategy, Modernization, Consolidation, Pro-active Roadmap Planning, Cloud Strategy and Planning, Infrastructure Management Reduce Costs TCO, OPEX Innovative Products Quick TTM, TTR Execute Strategy Maximize Automation Grow New Revenues Personalized Experience Open Tech. Best-of-Breed Increase Shareholder value Improved Partnerships Improved business data Max. Business Performance Maximize Retention Executing strategies by Transformation can maximize the overall benefits, for both Operator & the end users.

  17. Business model disruption by digital economy Smartphone hardly used for calls… UK research shows that making calls is at 5th place out of all activities like web browsing, social networks, gaming & applications. ( Telegraph UK, published June 29th, 2012) Content Commerce Entertainment Media • Consumer Service [B2C] Open API Social Media Connector Payment GW Consumer Service Enablement[B2B2C] M2M Cloud Enterprise Service Infrastructure Enablement[B2B] Voice Message Data Infrastructure 1500 + Telecom Operators Telco

  18. Transformation Trends Standardization Simplification AS-IS TO-BE • Components standardization • Globally Transform • System architecture and basic abilities standardization • Regionally Transform Siloed Cobweb Horizontal Centralization Digitalization OpCo1 Multi Parties OpCo1 OpCo2 OpCo2 • On-demand digital services • Multi-sided business model • Open API • Sales • Distribution • Branding • Sales • Distribution • Branding • Sales • Distribution • Branding • Sales • Distribution • Branding Other members of the KPN group (other countries) One single IT • ) IT IT • • • • … Network Network Network Virtual Networks Network Leveraging all-rounds experience in Transformation projects

  19. Time to Market Factor – what it is really? It is more than Your BSS platform exchange TTM = Product(Product Catalogue)+ Order (CRM)+ Huawei (CBS) + Network(Provisioning)+Legacy(Change Management)+ Legacy ( Manage Service - Change Management) • One product Configuration deployed to One CRM and One Convergent Billing System • One Data source for Settlements and Partner Management • Efficient and embedded Reconciliation & Data monitoring Surrounding Systems • Internal ESB with predefined SOA/API communication • Legacy systems integration as an integral part of OOTB Process design • 3rd party Vendor Management included via E2E Managed Service competence All Processes & Contributing Factors • Roles and Responsibilties as a part of Target Operational Model Design • Business Architecture & Business Readiness Support for succesful BSS deployment

  20. Huawei Business Transformation Library Non Huawei Systems Huawei system Online Mediation End-2-End BSS & OSS Eg.: China Mobile Hebei, KPNI Magnum, … CRM Billing Rating & Charging BI OSS Offline Mediation NGBSS Solution Eg.: KPN Netherland, e-Plus Germany Online Mediation CRM Billing Rating & Charging BI OSS Offline Mediation CBS with 3rd Party CRM Eg.: Safaricom Kenya, NTS Malaysia , VIVA Bahrain ... Online Mediation CRM Billing Rating & Charging BI OSS Offline Mediation Online Charging System Eg.: China Mobile Guangdong, EtisalatNigeria, BrT Brazil, AIS Thailand, STC Kuwait… Online Mediation CRM Billing Rating & Charging BI OSS Offline Mediation Convergent Rating Engine Eg.: Celcom Malaysia, VDF-ES Online Mediation CRM Charging &Billing Rating BI OSS Offline Mediation Service Controller Eg.: China Mobile Beijing, Telkomsel Indonesia Online Mediation CRM Billing Rating & Charging BI OSS Offline Mediation

  21. UK Operator Case Study Challenge Scope Huawei partnered with UK Operator to deliver an E2E Business Transformation & replace the heavily customised, end of life, legacy IT systems with Huawei “Best of Suite” NGBSS solution in order to meet their growing challenges and support future growth plans. • End–to-end business process transformation based on OOT BPs and eTOM • Best of suite NGBSS platform • Complete business transformation including Target Operating Model & Business Change Management • Approx 3+ Mil pre & post customers • Heavily customised legacy systems were reaching end of life driving high maintenance cost • Disparate processes resulted in slow TTM and high operational costs • Different processes & systems for Fix and Mobile prevented product innovation and FMC capabilities Approach • Business Process Driven Gap analysis based on the Huawei OOTB Business Processes. Gaps decomposed into detailed requirements. • E2E Customer Journeys used to validate the process scope. • Detail Design based on designed To-Be Business Processes and detailed requirements. • Change Management, Business Readiness & E2E testing led by Huawei • Accelerated and efficient To-Be process design • Reduced number of tarrifs & products X4 • Automated and standardized multiple processes across multiple channels • Delivered best in class process capabilities to enhance customer experience and improve operational efficiencies

  22. NL Operator Case Study Challenge Scope Huawei partnered with NL Operator to deliver an E2E Business Transformation & migrate legacy IT landscape to advanced Huawei “Best of Suite” NGBSS platform in order to reduce TCO, shorten TTM and improve customer experience • End–to-end business process transformation based on OOT BPs and eTOM • Complete business transformation • Wire line and wireless telephony, internet and TV • Approx 40+ Mil Customers: Wholesale, Corporate, SME and Consumer • Over 80 BSS systems of which 75 % were out dated & unstable driving high maintenance costs • Complex processes, which lead to inefficient business operations and poor customer experience • Limited innovation capabilities and Long TTM was a recipe for churn Approach • Established a strategic & trustworthy partnership between CSP & Huawei • Business Driven programme and supported by IT • Completely re-design and rationalize the commercial Propositions and re-engineer Business processes • Leveraged Best Practice & Lessons Learned from previous KPN projects • Mobilised & communicated comprehensively and widely with all relevant stakeholders • Accelerated and efficient To-Be process design . • Complete immediate view of the customer improving CX • Automated and standardized multiple processes across multiple channels • Successful partnership and

  23. Thank You, any questions?

  24. Back Up Slides

  25. General cancellation / disclaimer porting request X.400 porting request porting request porting confirmation porting confirmation porting date switching order initialisation initialisation zMRDB client- / server- operations switching order enquiry of switching information enquiry of switching information enquiry of switching information operational: information of network operators switching and confirmation switching and confirmation switching and confirmation Porting process – optimum case comm. interface customer SP_rec NO_rec NO_del SP_del other NOs administrative: alignment of modalities NO proprietary interface NO proprietary interface SP_rec: receiving SP NO_rec: receiving NO NO_del: delivering NO SP_del: delivering SP

  26. other service providers service provider Edifact X.400 E-Plus T-Systems EAI X.400 CUG CASS inventory server MNP GbR zMRDB mediation device STP HLR further network T-Mobile Vodafone O2 vistream Switching order for network operator E-Plus internal architecture The E-Plus internal architecture for MNP for service providers is as follows. The guiding system for MNP is the inventory server (IVS). The IVS is maintaining the phone numbers and is performing the outside communication related to MNP.

  27. Implementation MNP process The graphic below details the implementation process for MNP.

  28. Porting order Timelines The window of opportunity for requesting MNP is limited to 123 calendar days before and 31 calendar days after end of contract. Requests outside this time frame will be rejected. With end of contract the customers (old) SIM will be deactivated. There is no claim for an actual porting before end of contract the old SIM staying activated after end of contract. window of opportunity t = deactivation date end of contract 123 cd 31 cd

  29. Private customer MSISDN Old Service Provider Contract end date Surname Given name Date of birth Business customer MSISDN Old Service Provider Contract end date Company name Customer number Porting order Necessary customer information At least the following information will be needed to allow a successful porting negotiation. All data has to be exact as an automatic check will be performed during porting negotiation! Typing mismatches will always result in a rejected request!

  30. Porting negotiation Porting request - timeline 1st: SP_rec sends porting request to SP_del via X.400. 2nd: After max. 3 working days SP_del answers to SP_rec via X.400. 3rdand 4th: This is followed by 1 day buffer to allow SPs to inform their NOs and to allow NOs to prepare the porting. 5th: 2 calendar day before actual switching day the latest switching orders have to be set by NOs. answer to request start porting process porting process send porting order send porting request both SP 3. both NO 4. all NO 5. SP_del 2. SP_rec 1. t/d -6 -3 -2 0 minimum time frame to be considered! PORT 3 wd Buffer 1 wd guard time 2 cd

  31. Porting request There are 2 types of porting requests: Requests for private customers and requests for business customers. We recommend to always request a porting date “asap”. In this case a smooth switch from one NO to the other is ensured. In case more than one MSISDN of a business customer shall be ported it is necessary to request the porting for every single MSISDN. Porting negotiation

  32. Answer to Porting request It is of major importance to analyse the answer to the porting request as it may be rejected due to several issues. The line “status” may contain several values: 0000 confirm 0100 syntax error 0101 telegram type unknown 0102 wrong porting ID 0103 wrong version-ID 0200 unknown MSISDN 0300 wrong contract data 0400 contract not cancelled 0500 double request 0600 already blocked 0700 request to early 0800 request to late 0900 wanted date to early 1000 wanted date to late 1100 wanted date not possible Porting negotiation

  33. Porting negotiation Cancellation of Porting request - timeline 1st: SP_rec sends cancellation of porting request to SP_del via X.400 2 full working days before start of porting guard time the latest. 2nd: After max. 1 working days SP_del answers to SP_rec via X.400. 3rd and 4th: Both SPs are ordering their NOs to cancel the porting. Any request outside this time frame will be rejected. answer to request start cancel process planned porting send cancel order cancelation request both SP 3. both NO 4. all NO 5. SP_del 2. SP_rec 1. t/d -4 -3 -2 0 minimum time frame to be considered! SORT 2 wd guard time 2 cd

  34. Porting negotiation Cancellation request Also answers to cancellation requests have to be checked for their result values. These may be: 0000 confirm 0100 not readable 0101 telegram type unknown 0102 wrong porting ID 0103 wrong version-ID 0200 unknown MSISDN 2000 No request available 2100 no request by SP_rec 2200 to late

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