Description
what are the business processes where BPM can be applied. It also includes the critical components of implementing BPM.
BPM in Telecom
Agenda
• Telecom Industry Overview – Service Provider – OSS – TOM
• Areas Where BPM Helps
• BPM Implementation
What are business drivers in telecom market?
Measuring against Competition Differentiating Products & Services Reducing Total Cost of Ownership & Integration Costs Making money
Service Provider Ultimate Goal: Reduce Churn and Increase ARPU (Average Revenue Per User)
How to achieve the goal? By streamlining and automating their business process and in turn improve efficiency and effectiveness
Telecom Industry Overview
Service Provider Setup
Customers
Customer Relationship Management Systems
Pre-paid
Post-paid
Dial-up
High Speed Internet
Calling card
Products & Services Wireline Wireless Data
Network
End User Interaction with Service Provider
Interested in a Service
Buys the Service
Uses the Service
Enquires about a new offers or Service
End User
Logs Service related complaints
Pays bill amounts
Logs complaint for discrepancy in bill
Receives bill at regular intervals
A simple view of Telecom Service Provider
Design Service Plan Work
Customers
Receive Order Workflow Provision Service Activate Service Products Portfolio
Service Assurance
Operate Service Inventory Collect Usage Data Bill Service
Operations Support System (OSS) / Business Support System (BSS)
Operations Support Systems (OSS)
• Pre 90’s : – Legacy applications – primarily home grown – Operation centric 1990 - 1995 – 90% of spending is in-house development – Platforms like HP OpenView, Compaq TeMIP ease development pain – Telcordia provides flow through provisioning – MCI Friends and Family – first use of OSS as a competitive advantage 1996-2000 – 75% of spending is in-house development – Equipment vendors develop OSS in response to major service provider demands – Emerging CLECs create a market for applications that can be deployed rapidly - MetaSolv, Micromuse, Remedy and many others respond 2001 – 50% of spending is in-house development – Over 200 OSS vendors provide commercial applications Today – OSS Consolidation continues with focus on revenue /cost saving applications – Customer in focus – Moving toward NGOSS Framework – COTS v/s in-house development dilemma is cyclical
•
Operations Support Systems form the back office infrastructure that gives Service Providers the ability to create, deploy, manage and maintain communication services.
•
•
•
Why OSS/BSS automation?
•
Service Providers rely on the OSS/BSS for – Customer Management – Order Management – Service Provisioning – Inventory Management – Billing – Network Planning – Service Assurance functions – Service Quality Management – Performance Management – Fault Management
•
Benefits of automating the OSS/BSS systems: – Increase the Operational efficiencies – Reduce Operational cost – Time to market – Time to service creation – Retain customers – Gain competitive advantage – Faster realization of ROI
Telecom Operations Map
Customer Customer Interface Management Processes Fulfillment
Sales Order Handling
Assurance
Problem Handling Customer QoS Management
Billing
Invoicing and Collections
Customer Care Processes
Service Planning & Development Service Configuration Service Problem Management Service Quality Management Rating and Discounting
Service Development and Operations Processes
Network Planning and Development Network Provisioning Network Inventory Management Network Maintenance & Restoration Network Data Management
Network and Systems Management Processes Network Element Management Processes Physical Network and Information Technology
Information Systems Management Processes
Service Fulfillment workflow
Application of BPM in Telecom
Target Business Processes
• The top 5 target business process would be: – Order Management & Service Delivery: There is a lot more pressure on service providers to bundle services, but the existing processes and frameworks within companies just can’t keep pace. – Network Provisioning: all the day-to-day activity in managing the network, including inventory and workforce management within and across various groups – The non-standard processes behind the order management such as special billing and service level agreements : These processes often vary from customer to customer and service to service – Reverse Logistics: Repairs & Replacements: especially important to wireless operators, which engage in a lot of device issues, but increasingly in wireline broadband services as well – Exception Management: the business of correcting misguided orders, requests or trouble reports — is not only costly, it is very visible to customers and a source of customer dissatisfaction
Order Management
Order Entered into CRM System
Order Life Cycle
Customer Billed for Service
Order Flows into Order Management System
Tasks Executed
Resources Allocated
Configure NE
BPM Implementation
BPM Implementation Trends
Existing deployment
New Implementation
Reduction in elapsed time Higher productivity per person Improved quality/reduced errors Reduced number of steps Higher employee satisfaction Fewer people needed Improved coordination Automation of admin. tasks
Improve productivity
5%
5%
Extended enterprise
15%
35%
Reduced cost per transaction Enabling external users
Improved regulatory compliance
25%
40%
Streamline processes
Flex. in processes/bus. agility Data/process integ. Reduced risk
45%
20%
Eliminate paper
Red. waste
55%
70%
85%
75% of all new BPM projects will be centred around improving productivity and streamlining processes
Source: Gartner research, 2003
Critical Components of Implementing BPM
From a Business Perspective PROCESS CONSULTING ? Understand operations strategy, plan and objectives ? Do a detailed mapping of the As-Is process and analyze the same w.r.t ? ? ? ? ? Process Stakeholders Process Efficiency and capability Process Cycle Time Level of Process Automation Non-value added items within the process ? Bottlenecks, delay points ? Use proven process methodologies such as Six Sigma to design a ?To-Be? process which will help in: ? Defect Reduction ? Cycle Time Reduction ? Process efficiency and capability improvement From a Technological Perspective BUILD ? Complete customized Solution ? High Lead Time ? No licensing issues BUY ? Low lead time ? Low maintenance overheads ? Easy upgrades FRAMEWORK ? Reuse existing investments in BPM – Workflow engine, rules engine, reporting tools ? “Plug and Play” framework components can be used instead of ?buying? an entire suite of products or ?building? the same grounds up
Thank You
doc_169792986.pptx
what are the business processes where BPM can be applied. It also includes the critical components of implementing BPM.
BPM in Telecom
Agenda
• Telecom Industry Overview – Service Provider – OSS – TOM
• Areas Where BPM Helps
• BPM Implementation
What are business drivers in telecom market?
Measuring against Competition Differentiating Products & Services Reducing Total Cost of Ownership & Integration Costs Making money
Service Provider Ultimate Goal: Reduce Churn and Increase ARPU (Average Revenue Per User)
How to achieve the goal? By streamlining and automating their business process and in turn improve efficiency and effectiveness
Telecom Industry Overview
Service Provider Setup
Customers
Customer Relationship Management Systems
Pre-paid
Post-paid
Dial-up
High Speed Internet
Calling card
Products & Services Wireline Wireless Data
Network
End User Interaction with Service Provider
Interested in a Service
Buys the Service
Uses the Service
Enquires about a new offers or Service
End User
Logs Service related complaints
Pays bill amounts
Logs complaint for discrepancy in bill
Receives bill at regular intervals
A simple view of Telecom Service Provider
Design Service Plan Work
Customers
Receive Order Workflow Provision Service Activate Service Products Portfolio
Service Assurance
Operate Service Inventory Collect Usage Data Bill Service
Operations Support System (OSS) / Business Support System (BSS)
Operations Support Systems (OSS)
• Pre 90’s : – Legacy applications – primarily home grown – Operation centric 1990 - 1995 – 90% of spending is in-house development – Platforms like HP OpenView, Compaq TeMIP ease development pain – Telcordia provides flow through provisioning – MCI Friends and Family – first use of OSS as a competitive advantage 1996-2000 – 75% of spending is in-house development – Equipment vendors develop OSS in response to major service provider demands – Emerging CLECs create a market for applications that can be deployed rapidly - MetaSolv, Micromuse, Remedy and many others respond 2001 – 50% of spending is in-house development – Over 200 OSS vendors provide commercial applications Today – OSS Consolidation continues with focus on revenue /cost saving applications – Customer in focus – Moving toward NGOSS Framework – COTS v/s in-house development dilemma is cyclical
•
Operations Support Systems form the back office infrastructure that gives Service Providers the ability to create, deploy, manage and maintain communication services.
•
•
•
Why OSS/BSS automation?
•
Service Providers rely on the OSS/BSS for – Customer Management – Order Management – Service Provisioning – Inventory Management – Billing – Network Planning – Service Assurance functions – Service Quality Management – Performance Management – Fault Management
•
Benefits of automating the OSS/BSS systems: – Increase the Operational efficiencies – Reduce Operational cost – Time to market – Time to service creation – Retain customers – Gain competitive advantage – Faster realization of ROI
Telecom Operations Map
Customer Customer Interface Management Processes Fulfillment
Sales Order Handling
Assurance
Problem Handling Customer QoS Management
Billing
Invoicing and Collections
Customer Care Processes
Service Planning & Development Service Configuration Service Problem Management Service Quality Management Rating and Discounting
Service Development and Operations Processes
Network Planning and Development Network Provisioning Network Inventory Management Network Maintenance & Restoration Network Data Management
Network and Systems Management Processes Network Element Management Processes Physical Network and Information Technology
Information Systems Management Processes
Service Fulfillment workflow
Application of BPM in Telecom
Target Business Processes
• The top 5 target business process would be: – Order Management & Service Delivery: There is a lot more pressure on service providers to bundle services, but the existing processes and frameworks within companies just can’t keep pace. – Network Provisioning: all the day-to-day activity in managing the network, including inventory and workforce management within and across various groups – The non-standard processes behind the order management such as special billing and service level agreements : These processes often vary from customer to customer and service to service – Reverse Logistics: Repairs & Replacements: especially important to wireless operators, which engage in a lot of device issues, but increasingly in wireline broadband services as well – Exception Management: the business of correcting misguided orders, requests or trouble reports — is not only costly, it is very visible to customers and a source of customer dissatisfaction
Order Management
Order Entered into CRM System
Order Life Cycle
Customer Billed for Service
Order Flows into Order Management System
Tasks Executed
Resources Allocated
Configure NE
BPM Implementation
BPM Implementation Trends
Existing deployment
New Implementation
Reduction in elapsed time Higher productivity per person Improved quality/reduced errors Reduced number of steps Higher employee satisfaction Fewer people needed Improved coordination Automation of admin. tasks
Improve productivity
5%
5%
Extended enterprise
15%
35%
Reduced cost per transaction Enabling external users
Improved regulatory compliance
25%
40%
Streamline processes
Flex. in processes/bus. agility Data/process integ. Reduced risk
45%
20%
Eliminate paper
Red. waste
55%
70%
85%
75% of all new BPM projects will be centred around improving productivity and streamlining processes
Source: Gartner research, 2003
Critical Components of Implementing BPM
From a Business Perspective PROCESS CONSULTING ? Understand operations strategy, plan and objectives ? Do a detailed mapping of the As-Is process and analyze the same w.r.t ? ? ? ? ? Process Stakeholders Process Efficiency and capability Process Cycle Time Level of Process Automation Non-value added items within the process ? Bottlenecks, delay points ? Use proven process methodologies such as Six Sigma to design a ?To-Be? process which will help in: ? Defect Reduction ? Cycle Time Reduction ? Process efficiency and capability improvement From a Technological Perspective BUILD ? Complete customized Solution ? High Lead Time ? No licensing issues BUY ? Low lead time ? Low maintenance overheads ? Easy upgrades FRAMEWORK ? Reuse existing investments in BPM – Workflow engine, rules engine, reporting tools ? “Plug and Play” framework components can be used instead of ?buying? an entire suite of products or ?building? the same grounds up
Thank You
doc_169792986.pptx