Comarch Technology Review 1 2012 Preview
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Transcript of Comarch Technology Review 1 2012 Preview
www.comarch.com
The Magazine of Comarch
Telecommunications
Business Unit
no 1/2012[14]
In ThIs IssUe:
In foCUs: Customer experience from the core of the network to the customer
Infrastructure sharing – servCo vs. netCo – the competition shift
Beyond Bss/oss oss/Bss integration – the building block
of the era of “big data” Challenges and opportunities
of multi-market transformations enhancement of roaming
call back user experience
Hot toPIc: Aiming for Perfect Customer Experience6
Comarch Technology review 01/2012
6 In focus: CustoMER ExPERiEnCE
From the core of the network to the customer
HOW OSS ENSURES A SEAMLESS CUSTOMER EXPERIENCE
Arecent stratecast survey of more than 120 Com-
munication service provider (Csp) executives,
worldwide, reveals that 91% believe their “busi-
ness must be fundamentally or substantially transformed
to remain competitive in the future.”
The need for customer focus is resonating with CSPs as
they reinvent themselves as retailers, rather than capacity
plumbers. Customers want a one-stop shop; they want reli-
able products that are delivered quickly and easily. By defin-
ing processes as the customer sees them rather than what
is convenient for the business or what has been used in the
past, CSPs can retain their status as trusted providers and
take advantage of the brand recognition they have worked so
hard to establish. The transformation underway in the com-
munications industry means that CSPs will compete to de-
liver products and quality, not connectivity.
Networks have always been deployed based on customer de-
mand, and as the volume and variety of infrastructure increas-
es, the factors driving CSPs to invest have not changed. What
has changed is the need for CSPs to differentiate themselves
based on the quality of the multitude of products and servic-
es being delivered, while at the same time becoming compet-
itive retailers that are relentless about customer satisfaction.
The challenges are many and this report will focus on four
key OSS functions that, when focused on the customer, de-
liver CSP differentiation while controlling costs:
Fulfillment, from product definition to delivery
Assurance, from the customer to the core of the
network
End-to-end network upgrade
Dynamic capacity management using self-organizing
networks (SON)
While CSPs rotate their businesses to focus on customers,
they must also horizontally align OSS/BSS to work consis-
tently across the business and support multiple products,
services, customers and partners.
Goal #1: eXcellent custoMer eXPerIence
CSPs are trying hard to focus on the customer experience.
That requires a radical shift in thinking about the way that
products are defined, created, delivered, billed for and sup-
ported. The connections, the devices, the features and ap-
plications, as well as billing and customer support functions
must be simple, straightforward and of the highest possi-
ble quality. In order to monetize existing investments in in-
frastructure and OSS/BSS, operations must be responsive
and reliable, while access to OSS/BSS by partners and cus-
tomers must be seamless and automated.
nanCee rUzICka stratecast (a Division
of frost & sullivan)
Director OSS/BSS Strategy
Comarch Technology review 01/2012
7In focus: CustoMER ExPERiEnCE
Figure 1. Customer experience requirements. Source: StratecastHOW OSS ENSURES A SEAMLESS CUSTOMER EXPERIENCE
Customers will buy based on device and application choice
rather than network loyalty, and they will be driven away by
inadequate offerings, inflexible product and pricing plans,
inaccurate activation, poor performance and incompetent
support. CSPs will differentiate themselves by understand-
ing customer needs and accurately translating those needs
into OSS and network infrastructure that can deliver.
Maintaining a positive customer experience requires that CSPs
deliver unique, high-quality products and implement custom-
er-focused processes and OSS/BSS as shown in Figure 1.
If the network is assumed and products are commoditized
then customer experience is the only differentiator relevant
to product development, sales, usability, operational quali-
ty and support when something goes wrong.
The 4 C’s ChaLLenGInG Csps
The Four-C’s: complexity, competition, cost, and customer de-
mand, are taxing every part of CSP operations. This pressure leads
CSPs to rely more heavily on OSS/BSS to simplify operations and
manage costs while rapidly delivering new, high quality services.
complexity
The size and complexity of telecom networks has increased
exponentially and so has the volume and variety of servic-
es being offered by CSPs for dozens of devices that are no
longer restricted to a common access network. CSPs also
have to manage traffic from third party bandwidth and con-
tent providers, as well as the intelligent devices in custom-
er’s hands and homes. And yet, regardless of the source of
a problem, the CSP will be blamed for a failure. As a result,
CSPs are obligated to operate and maintain a rapidly ex-
panding inventory of network elements, applications, serv-
ers, data bases and delivery environments.
competition
CSPs are still vulnerable to direct competition (other telecom
operators), but now computer vendors (Apple), software ven-
dors (Microsoft) and Internet vendors (Google) pose a threat
as well. Those companies are not competing with CSPs at
the network construction or operations level, they are com-
peting strictly at the product level. That very fundamental
difference between CSPs and over-the-top competitors em-
phasizes the need for CSPs that own network infrastructure
to make maximum use of the capabilities of that investment
to deliver products, quality and innovation to their custom-
ers that over-the-top providers cannot.
cost
The ability of a CSP to monetize its network lies in thecapa-
bilities of its OSS. Network infrastructure is a large capital in-
idEAs in bRiEf:
4 OSS functions that will influence change in CSPs customer experience
The most critical business priorities in CSPs assurance strategy
The benefits of including customer data in the network planning, engineering and design processes
In focus: bss/oss tRAnsfoRMAtion10
Comarch Technology review 01/2012
the role of oss in customer experience improve-
ment has been the subject of many articles pub-
lished in the Technology review magazine. Most
articles tackle the problem from the customer service qual-
ity perspective, emphasizing the role of oss assuring that
customer services work anywhere and anytime significant-
ly contributing to customer satisfaction. But can oss sys-
tems also improve customer experience in the most tradi-
tional aspect of customer - provider relations and in particular
in interaction?
The answer seems obvious, better customer QoS means
more customers are satisfied and so CSP is perceived bet-
ter. This contributes to more intangible flavours of CE which
is about human aspects and thus beyond just measurable
QoS. But can OSS systems improve these „human aspects”
which are traditionally tackled at the BSS domain by Cus-
tomer Relation Management (CRM) systems?
The answer is yes, and it is not about OSS intruding the BSS
layer but rather about seamless BSS/OSS integration. The
idea is to provide, at the CRM level, a complete insight into
all the issues that impact customer services and thus the
customer itself, and originate from network problems. Hav-
ing this insight is supposed to improve the „human aspect”.
A scenario which demonstrates this is when a customer
contacts the operator issuing a complaint about its servic-
es. When a CRM system has insight into customer service
issues, the customer can be informed that the referred to is-
sues have been detected, the root cause is known, and the
resolution process has begun. If the customer can be provid-
ed with an estimated time of problem resolution then that’s
even better. This means the ability to alleviate initial customer
dissatisfaction caused by the experienced service problem.
sceptics may say, that nowadays customers do not com-
plain, they just churn. This is why pro-activeness capabilities
are so important. Pro-activeness has two aspects.
The first aspect is the ability to prevent the customer from
experiencing problems with services. In a nutshell , this re-
quires OSS systems to be able to monitor the network, detect
network problems and translate them into customer services
impact. When customer services detect a network problem,
the problem resolution process may begin, prior to the cus-
tomer issuing the complaint. What is important is that cus-
tomer impact serves as the priority gauge for the network/
resource resolution process.
The second aspect of pro-activeness is that the lack of cus-
tomer complaints does not necessary mean that the cus-
tomer is happy.
The OSS system provides insight into customer service is-
sues to CRM and enables to pro-actively contact the cus-
CRM - the role of OSS for improving customer experience
ŁUkasz MenDyk Comarch sa
OSS Product Manager,
Telecommunications
Business Unit
Sceptics may say, that nowadays customers do not complain, they just churn. This is why pro-activeness capabilities are so important.
10 In focus: CustoMER ExPERiEnCE
11
Comarch Technology review 01/2012
tomer. The idea is that instead of waiting for customer com-
plaints, it is better to contact the customer and inform him
about a detected problem and provide him with detailed
information about the action being undertaken. Someone
may argue that this may be a risky strategy to contact the
customer without been 100% sure that he really is experi-
encing problems. Leaving aside the discussion whether it
is better to unnecessarily contact 10 customers than risk
losing one unhappy customer, the role of OSS is to provide
precise information about customer service issues while
avoiding unnecessary alarms. Moreover, OSS can provide
detailed information about what the technical issue is. Al-
though customers may not understand technical details,
providing precise information when contacting a custom-
er can be appreciated by the customer as proof that con-
tact is not purely a marketing spam. This in return proves
that CSP really makes an effort to provide the customer with
the possible service.
The presented capabilities can be a source of significant
competitive advantage over other communication service
providers. Customer experience surveys show that many
customers are still disappointed with service providers
who are very passive, and wait for customers to complain.
And even when registering a customer complaint, it is not
rare that customers are asked very difficult detailed ques-
tions that are hard to answer. Yet another role of the OSS
system is to provide all necessary data to CRM in order to
avoid asking the customer technical questions. These de-
tailed questions are sometimes perceived by the custom-
er as a method to discourage him from issuing a complaint
and thus avoid the cost of compensation for the poor QoS.
This may seriously damage CSP’s image and cause sig-
nificant churn.
Details on how to achieve necessary CRM-OSS integration
can be found in the Comarch whitepaper entitled „Moving
from network assurance to customer service assurance”.
In a nutshell, the idea is to employ the Product-Custom-
er Facing Service (CFS) – Resource Facing Service – Re-
source model with CFS as the „uniting element” between
BSS and OSS systems. All issues detected by OSS systems,
which have impact on the customer, are reported on Cus-
tomer Facing Service (CFS) which the CRM system should
have insight to.
Concluding, the role of OSS in improving Customer Expe-
rience is not only limited to assuring good customer ser-
vice quality but also to help traditional CRM systems be
pro-active in customer interactions. By providing insight
into customer issues which originate from a network prob-
lem, the OSS system enables via CRM systems to create
an image of the provider who really makes an effort to im-
prove customer satisfaction. OSS can help make commu-
nication with the customer be perceived not just as a mar-
keting spam.
idEAs in bRiEf:
CRM needs insight into all customer service issues originating from the network
Pro-activeness - ability to contact the customer before he churns
CRM-OSS integration is a must
11In focus: CustoMER ExPERiEnCE
In focus: bss/oss tRAnsfoRMAtion12
Comarch Technology review 01/2012
12 In focus: CustoMER ExPERiEnCE12 In focus: CustoMER ExPERiEnCE
Planning and deploying a mobile network is one of
the key cost generators for operators. When an
operator chooses a multi-vendor strategy, the
number of platforms and systems used to transfer the need of
a site into a running network element is particularly
significant. In this article I will discuss the way to integrate
and rearrange the IT landscape, together with corresponding
business process reengineering.
Introduction
A typical IT landscape of multi-vendor mobile operators con-
sists of a number of different tools:
Network inventories with site lifecycle milestones
Radio planning tools
Configuration management tools.
Such an architecture also requires a number of various in-
ternal interfaces, which can either be automatic or based on
manual export/import features. Any of the business process-
es introduced to manage the planning and rollout of the net-
work contain a number of steps, needed to ensure that cer-
tain data is properly recorded in a given system.
Additionally, in most cases a lot of these systems (especial-
ly related to inventories and lifecycle management) are leg-
acy, homemade tools. This is caused by the fact that many
operators perceive their network management processes as
unique and ones that require dedicated tools (or in the case of
commercially available products, require huge customization).
Configuration management systems, on the other hand, must
cope with very closed and complex Network Management
Systems (NMS) delivered by network vendors. Special fea-
tures in the network caused these systems to be custom-
ized and, in many cases, hard to upgrade. Additionally, many
of the older systems do not have an up-to-date picture of
the network in their databases.
All of these problems turned network planning and rollout into
a very complex process, with hundreds of workarounds for
simple operations, not supported by tools already in use. On
the one hand, using these landscapes lowers the efficien-
cy of network delivery departments, on the other hand, even
when they produce configuration, it very often contains a
number of errors and is not optimal.
Optimization of network planning processes as a key solution for increasing efficiency
JakUB zaŁUskI-kapUsTa
Comarch sa
Telco Consulting Manager,
Telecommunications
Business Unit
12 In focus: CustoMER ExPERiEnCE
Comarch Technology review 01/2012
13In focus: CustoMER ExPERiEnCE
Figure 1. Example of a business view of a process
process redesign
In order to start thinking about lean, smooth and efficient
processes, mobile operators have to stop thinking about
applications. The most crucial step is to start the OSS trans-
formation program with identifying the most important pro-
cesses in a radio network, like a new site, a system swap
or an integration process. At the beginning, a decent tool for
process documentation should be selected. Still, it is quite
common to use MS Visio diagrams, or MS Excel files to doc-
ument work. Proper tools should allow to draw processes on
different levels of detail, mapping them onto applications, in-
terfaces and data models.
The next step is to document the radio process, as it should
be, without any applications working in the background.
Such an approach allows to focus on important steps, with-
out all the legacy steps, introduced to overcome the lack of
functionalities.
Fig. 1 presents a business view of a process without any ap-
plication background. In order to get all the necessary op-
erations, only the most crucial processes need to be mod-
eled. Many other processes will just use the same business
activities as crucial ones. When remodeling those process-
es, it is also important to remember about changes in the
organization. User roles should be defined within the pro-
cesses, without looking back at the existing organization-
al structure. Necessary mapping or changes can be carried
out later, when implementing new processes in the mobile
operator’s organization.
Reassigning users to new roles is not an easy task. Of course,
existing engineers will be strongly inclined to follow the ex-
isting processes. It is therefore required to introduce a real
mind change regarding process reengineering, with the use
of external experts if necessary.
example of process reengineering – the network integration process
One of the most crucial processes for a mobile operator is
the network integration process. Efficiency of an operator
and network quality result from this process.
a typical process
Most operators still use the so called ‘Turn On Cycle’ (TOC) pro-
cess to orchestrate changes. This process defines a number
idEAs in bRiEf:
Reengineering your planning and configuration processes
Work and network under control - process-driven planning and execution
ElaborateConfigurationProposal for
Radio NE
ExecuteFrequencyApproval
Radio
ComercialOrder
ElaborateTechnicalProposal
Execute LOSTesting
Negotiate Lease Contract
ModifyInfrastructure
Build NetworkElement/Antenna
EstablishConnection to
NE
Send NoticeBeginning of
Operation
Radio PlanParameters
Plan BSSParameters
Plan TransportConnection
Plan TransportConnection
Acceptance
SIP
Radio
Transport
Core
Rollout
Operations
Comarch Technology review 01/2012
Customer experience (Ce) has become the main
battleground for communication service provid-
ers (Csps) and a concept that defines today’s
Bss/oss systems. and, as quality of service (Qos) is one of
the essential factors for achieving customer satisfaction,
assurance systems gain importance. This all may sound like
an obvious thing to say, but what is not so obvious is how
(network) assurance can be turned into a measure of Ce.
There are many issues on the way to achieving this goal.
Many service providers have not yet implemented auto-
matic diagnosing of customer complaints. Often, when
such a complaint is issued, their network operation depart-
ments claim that the network is operating correctly and
all technical metrics are in green. In these circumstances,
more advanced service assurance that includes pro-ac-
tive customer complaint management (the ability to pre-
vent degradation of customer service quality) becomes
“mission impossible”.
These obstacles may result from the fact that network op-
eration departments have been traditionally more focused
on the network infrastructure than on the customer. But it’s
also an outcome of the increasing complexity of services,
and the fact that various services may have different require-
ments towards the same technical parameters.
This, in turn, changes the expectations towards OSS sys-
tems. The traditional network / resource perspective, typi-
cal for fault and performance management systems, needs
to be shifted. Service providers need to start looking at the
network from the viewpoint of the quality of services, that
are delivered to the end customer. This article will describe
such a transformation from network assurance to custom-
er service assurance.
Towards customer service assurance – where to start?
Traditional network assurance comprises of two complemen-
tary systems: Performance Management (PM) and Fault Man-
agement (FM). The first one deals with network performance
metrics (KPI), and the second one – with network outages.
Performance metrics can have a defined threshold, which
should generate an alarm feed to the FM system, once ex-
Moving from network assurance to customer service assurance
ŁUkasz MenDyk Comarch sa
OSS Product Manager,
Telecommunications
Business Unit
16 In focus: CustoMER ExPERiEnCE
In focus: bss/oss tRAnsfoRMAtion18
Comarch Technology review 01/2012
Mobile and fixed operators face constant challenge
to optimize cost structures. one of the approaches
to realize this goal is to outsource network manage-
ment. This trend already began a few years ago and seems to
be growing constantly. on one hand, outsourcing may dimin-
ish network control, which is still considered by many opera-
tors as a core part of their business. on the other hand, it gives
a chance to transform current relations with the network. This
would give opportunity to adapt to new business design and
concentrate on services delivered to a customer.
The growing interest in outsourcing is caused by many fac-
tors. Mainly, financial improvement, but this is not the only
reason. Next Generation Network evolution, competitive busi-
ness models and new applications have forced operators to
concentrate on an efficient way to use of their network re-
sources. Another advantage of outsourcing is the possibili-
ty to increase network flexibility and adopt new technology
at a lower cost. It also simplifies the ever changing nature
of internal support by transferring it to the outsourcing ser-
vice supplier. In other words, it relieves network topics from
management agendas.
Why outsourcing?
Every operator has its specific rationale to introduce network
outsourcing. However, the general reason depends on the
size and structure of a telecom. Mature operators, especial-
ly in the EMEA region, are driven by decreasing average rev-
enue per user (ARPU). Operators in growing markets look for
a possibility to manage growth and obtain necessary assis-
tance and knowledge. Mid-size companies will benefit from
continuous network and operation optimization, as this area
is usually marginalized on an everyday bases because of
lack of dedicated staff serving that purpose.
Independently of size or structure, outsourcing gives a pos-
sibility to improve the current network operation process. The
very first step, which is a must for every operator willing to
outsource a part of their network operations, is the organiza-
tional aspect. Outsourcing must follow internal improvement
initiatives, especially network management process redesign.
The structure of the area that is to be outsourced must be
clear and transparent. This may be performed by assessing
all areas that are impacted by the outsourcing scheme, so
Outsourcing network management – directions and strategies
szyMon BUCzak Comarch sa
OSS Consultant,
Telecommunications
Business Unit
18 In focus: CustoMER ExPERiEnCE
Comarch Technology review 01/2012
22 In focus: CustoMER ExPERiEnCE
Very interesting changes on the telecommunica-
tion market can be currently observed. Telecom-
munication operators (telcos), who have been
very bitter competitors in the field of the infrastructure, are
starting to cooperate with each other, going even as to cre-
ating a joint venture to realize the idea of infrastructure
sharing. This idea is driven by the need to reduce huge ex-
penses on infrastructure, that result from the fact, that ca-
pacity data services demand more and more capacity. This
is also boosted by market regulators who perceive this as
a natural path from local loop unbounding (known in the
fixed network market) to „network unbounding” and net-
work neutrality ideas. Infrastructure sharing can be de-
scribed as dividing traditional telco into so called servco
and netco. To get an even more complete view of the idea,
it can be said that the complete model consists of sales-
co, servCo and netCo, where salesco is probably only a new
name for the role of e.g. MVno. Infrastructure sharing means
that for example two collaborating telcos decide to create
one netco which is to serve two servCos on an equal
basis.
The best way to explain the roles of SalesCo, ServCo and Net-
Co is to employ a TMF SID model. Starting from the bottom:
NetCo is to manage resources and provide fine grained
Resource Facing Services (RFS) to ServCo
ServCo’s role is to manage services, which means using
fine-grained RFS to create a Customer Facing Service
(CFS) and fine-grained products that are to be provided
to SalesCo
SalesCo is to create final end customer products,
product bundling and products offerings based on
CFSes and fine grained products delivered by ServCo
Infrastructure sharing relates to a very interesting busi-
ness model and redefining competition between collab-
orating telcos. In this model telcos collaborate at the Net-
Co level, becoming in fact one company which is to serve
the still competing servcos at an equal basis. So what is
the domain of competition between ServCos? It is definite-
ly not infrastructure (network resource management). If we
leave competition on the customer targeting and the pric-
ing level to SalesCos, then the competition between Serv-
Cos is all about how to create and manage customer ser-
vices CFS „better” while using the same network resources.
In other words, this means a competition shift from the net-
work (resource) level to service competition. The word „bet-
ter” can be understood as better usage of the same network
resources to create cheaper and more interesting Custom-
er Facing Services of higher quality and thus providing bet-
ter Customer Experience.
ŁUkasz MenDyk Comarch sa
OSS Product Manager,
Telecommunications
Business Unit
Infrastructure sharing – ServCo vs. NetCo – the competition shift
Comarch Technology review 01/2012
23In focus: CustoMER ExPERiEnCE
idEAs in bRiEf:
Splitting Telco into ServCo and NetCo (and SalesCo)
Infrastructure sharing = common Netco + competition at ServCo (and SalesCo)
Competition: who creates better customer services based on the same network resources (Lego blocks)
OSS for ServCo – managing the service layer (CFS and RFS) in assurance and fulfilment areas
ServCos will compete by creating better CFSs, using the
same building blocks - fine grained RFSs provided by the
same NetCo. The key tool needed by ServCos is the service
catalog which enables to define CFS, built from fine-grained
RFSs, and to drive both fulfilment and assurance process-
es. This means employing next generation OSS which sup-
ports the service domain.
The service fulfilment solution role is to be able to orches-
trate NetCo by ordering low level RFSes and then „assemble”
the customer facing service according to the service cata-
log’s definition of CFS.
Service assurance along with the SQM system is responsible
for translating network related alarms and resource centric
KPIs provided by telco into CFS alarms and CFS Key Quality
Indicators (KQI). Translation is to be done along the same
service model as fulfilment defined in the service catalog.
Concluding: competition between ServCos resembles cre-
ating the best possible structure using the same Lego
blocks. Details concerning the Service Fulfilment solution
can be found in Comarch’s whitepaper entitled „ Fulfilling
the Promise of Component-Based Service Creation”, and
details about Service Assurance in the whitepaper „ Mov-
ing from network assurance to customer service assur-
ance”. Specifics on service management as a whole can
be found in Comarch’s whitepaper entitled „ Comarch Next
Generation Service Management”.
But what about netCo?
In the description provided above, the role of NetCo was
network resource management and providing fine-grained
RFS services for ServCos. But as NetCo is to be a separate
company which needs to earn money. And what is better
is, it does not clash with the previous description based on
TMF SID. The previous description was based on a global
perspective, and on the value chain model. When looking
from the “local perspective”, the NetCo apart of network re-
sources needs to manage CFS and products which are of-
fered to ServCos. This might sound confusing when bear-
ing in mind the previous description, but it simply means
that NetCo’s CFSs and products are just RFSs from the per-
spective of ServCo. It proves that the TMF SID model is use-
ful in describing all kinds of business and what is extreme-
ly important enables to provide both a „local” and „global”
perspective.
As NetCo does sell products, this means that the NetCo
apart of OSS systems, which manages network resources,
also needs a service layer and even a BSS system. The lat-
ter part is a natural consequence of separating NetCo from
ServCo and establishing it as a separate business entity.
What is important is that the role of a BSS system at NetCo
has a significant part to play and is to be used as a control
point that checks whether NetCo serves all ServCos at an
equal basis.
The competition winner among ServCos will be one who can create a better CFS model. Better means choosing the right RFS type provided by telco for the right type of CFS.
The right type of RFS can refer to: less fault prone, delivered faster.
In focus: bss/oss tRAnsfoRMAtion24
Comarch Technology review 01/2012
Figure 1. Correlation between technicians engagement and selected KPIs
After the service Management expo 2011 conference,
held in Birmingham, I realized that currently there
are 3 most important aspects in field service man-
agement (mobile workforce management): field forces mo-
bilization, scheduling optimization and human resources.
Scheduling optimization and technicians mobilization (under-
stood as mobile access to information in the field) are cru-
cial for the optimal utilization of resources and increase of
customer satisfaction. The human aspect is also substan-
tial but very often not noticed by operations or field service
management and is not considered in operations transfor-
mation projects. I have the opportunity to be involved in field
force transformation projects in which at the beginning the
program manager tried to hide all information from the tech-
nicians and assumed that they would simply start working
Win customer experience and transform techs from regular employees to customer advisors
szyMon UCzCIWek Comarch sa
FSM Product Manager,
Telecommunications
Business Unit
Measured engagement of techs in daily work
influenced KPiAverage value of KPis
in context of engagement metric
< 0,7 Customer retention 72 %
> 0,7 Customer retention 87 %
< 0,7 Workforce utilization 56 %
> 0,7 Workforce utilization 69 %
< 0,7 Revenue increase 7%
> 0,7 Revenue increase 8%
24 In focus: CUSTOMER EXPERIENCE
Comarch Technology review 01/2012
Building Customer Loyalty in the Telecom Market
28 cHIcaGo VoIce
inthe wireless industry, a new phone with a 2 year
contract has been the definitive incentive program
for years. The telecom industry, like others is plagued
by churn; in fact the majority of new customers are churn cus-
tomers. It is difficult to understand why most companies have
not moved beyond this weak approach. The consumer has to
choose between a huge amount of competitive products and
services all offering similar incentive packages. Brands need
to move beyond this antiquated method. Through the proper
use of a pervasive loyalty solution, telecoms can begin to pro-
vide a memorable experience in order differentiate their prod-
uct and attract and retain loyal consumers.
The path of the past
In the past, telecom providers have dedicated tremendous
energy and resources to customer and company acquisi-
tion to develop and grow their businesses; this was a suc-
cessful business model at the time. Currently the developed
telecom market must face low GDP growth, stagnating pop-
ulation and high service-saturation levels. Years of pursuing
the same strategy by growing in numbers and acquiring new
companies is no longer a sustainable business model. The
necessity to focus on understanding the customer experi-
ence has proved daunting as most telecoms’ strategy and
information is siloed in unique lines of business; fragment-
ing one customer into many different views.
Data, data and more data
As telecoms began pursuing growth through mergers and
acquisitions, the consequences of such cannibalistic pe-
rusal led them down a path to multiple disparate tech-
nologies. This has caused customer data to be scattered
across multiple customer databases, where data is often
duplicated and inconsistent. Typically, customer informa-
tion is divided in data silos across lines of business with
little integration or transparency amongst them; result-
ing in a single facet of the overall customer profile. For ex-
ample, the wireless division collects informa tion but of-
ten doesn’t share it with the TV cable division. There is no
complete view of a cus tomer across different channels—
stores, websites, call centers. This means that a customer
calling in to speak with a representative may have a com-
pletely different experience depend ing on the department
they speak with. They may receive different information,
offers, or advice. As a result, telecoms at any given mo-
ment have had a fragmented and inconsistent view of an
individual customer.
a unified view
Building an integrated customer data set is the first step to-
ward developing a more detailed and nuanced understand-
ing of customers. The technology and concepts to create a
single, integrated view of the customer have been available
for many years, but very few telecoms have adopted these
methods effectively. Most telecoms have a CRM system with
a “360 degree” view of the customer; however due to data
silos across lines of business and inconsistent sales and
marketing strategies and actions and the customer view is
not truly integrated. Airlines, retailers, hotels, and many oth-
er industries have already recognized the importance of in-
tegrating data from every customer interaction and are con-
tinuously working to improve in the area.
aLIna pyzoWskI Comarch Inc.
Solutions Manager
Enterprise Marketing
Management
Loyalty Business Unit
Comarch Technology review 01/2012
fundamental Challenges faced by Csps
30 beyonD bss/oss
OSS/BSS Integration – The Building Block of the Era of “Big Data”
Comarch Technology review 01/2012
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Figure 1: Key CSP Challenges, 2010. Source: Frost & Sullivan, 2010
f rost & sullivan has witnessed the telecommuni-
cations world change significantly over the last
ten years. The evolution of customer demand, sup-
ported by the broadband development, has led to the emer-
gence of new services such as internet television, video on
demand and voice over Ip. Customers require more com-
plex, tailored packages with high service quality. as a re-
sult, communication service providers (Csps) need to place
greater focus on the overall customer experience and - giv-
en intensifying competition - the speed of bringing new ser-
vices to market. at the end of 2010, frost & sullivan conduct-
ed a survey of global Tier 1 Csps. Based on the results of this
research, figure 1 illustrates the most significant challeng-
es currently faced by leading service providers.
In order to keep pace with market evolution, CSPs have been
prompted to redefine their strategies.
The majority have transformed themselves from basic net-
work access providers to service aggregators, providing net-
work access as a medium for delivering content and other
value-added services.
The implementation of new strategies is a lengthy process,
requiring the engagement of a broad range of a service pro-
vider’s resources as well as a change of mindset and tech-
nical improvements: CSPs need to ensure comprehensive
integration of their operational support systems (OSS) and
their business support systems (BSS).
oss/Bss Convergence as an answer to operator Challenges
Historically, CSPs tend to purchase best-of-breed applica-
tions for specific functional areas and they have a long tra-
dition for in-house software development. In consequence,
many proprietary or highly customized OSS/BSS systems re-
main in operation. This strategy was justified when their port-
folios only contained a few services. However, with multiple
new services and growing complexity of the CSP architec-
ture, this approach has become untenable. Mergers and ac-
quisitions have further complicated the back office of many
CSPs. Many providers have added new systems to their IT
architecture from companies that they had acquired, with
Dealing with regulatory issues
Network congestion
Sustaining profitable growth
Keeping pace with new technology trends
Reducing complexity of the company’s structure
Reduced time-to-market
Growing customer expectations
Efficiency improvement
Dealing with regulatory issues
Network congestion
Sustaining profitable growth
Keeping pace with new technology trends
Reducing complexity of the company’s structure
Reduced time-to-market
Growing customer expectations
Efficiency improvement
Intesifing competition
Figure 1: Key CSP Challenges, 2010. Source: Frost & Sullivan, 2010
7%
0% 10% 20% 30% 40% 50% 60%
13%
20%
20%
30%
30%
37%
40%
57%
End-to-EndSolutions
CommonProcesses
Point Solutions
Best-of-Breed
Best-of-PlatformCustomizedSolutions forSingle Provider
No Integration After-Market Integration Pre-Integration
GeneralSolutions forMultiple Providers
CustomizedProcesses
In-houseDevelopment
CustomizedProcesses
intesifing competition
7%
0% 10% 20% 30% 40% 50% 60%
13%
20%
20%
30%
30%
37%
40%
57%
frost & sullivan
is actively engaged in
identifying, researching,
and developing
opportunities, growth
models, and strategies
that enable clients to
accelerate growth.
For more info please visit:
www.frost.com
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Comarch Technology review 01/2012
the User Interface (UI) of a technical device of any
kind, including computer applications, is the only
way a human can tell a device what to do, pro-
vide data and get feedback from the device. In a nutshell,
it is the only way to speak to soulless machinery. There is,
however, a huge difference between an interface allow-
ing a person just to communicate with a device and one
which makes communication convenient and effective.
so how to achieve the latter?
One thing that comes to mind is data bandwidth. A good user
interface must enable parties to transfer a number of mes-
sages big enough not to introduce any unnecessary delays
in the performed operation. Thus, the faster the messages
pass through the interface, the better it is usually consid-
ered to be. Another feature which contributes to the quality
of a user interface is the time an inexperienced user must
spend to learn how to get the machine to do what he wants
it to do. Unsurprising is the fact that the shortest possible
time for learning a new interface is the one most optimally
desired in this case. Ideally, a user interface should be so
intuitive that anyone can make the device work right away
without the necessity to read a manual or learn beforehand.
Before we begin discussing mobile applications let us brief-
ly consider PC (Personal Computer) applications, which first
brought user interfaces, and have shaped our thinking about
them. A typical computer cannot understand what people
think, recognize gestures nor read human moods. The first
computers could not be communicated to through the same
senses people communicate, so new methods had to be in-
vented. This is why today we have the keyboard, the mouse
and the monitor. But let’s not go too deep into history, this
is not the point here. These means enabled people to co-
operate with a computer application but in terms of our UI
quality criteria, would not be highly graded. For a newbie,
a keyboard and a mouse were not very natural means of
thought expression, which led to a very limited amount of
data people could send to an application in a unit of time.
There can also be no doubt that a PC interface was not in-
tuitive for someone who didn’t use computers before and
it required a lot of learning in order to be used efficiently.
In terms of today’s criteria the UI of an ordinary PC was far
from being convenient and effective. There were not too
many alternatives in those times so people had to accept
the fact that they have to spend a significant amount of
time in order to efficiently use computers. As a result, more
and more people got used to PC interface tools and in result
they became quite popular over time, and currently most
people can use them efficiently. However, this was not the
case with mobile devices because, nowadays, people do
not want to take on the burden of interface limitations and
spend time to learn how to use it. In comparison to PC be-
ginnings, expectations regarding the intuitiveness and eas-
iness of the device interfaces are much higher now espe-
cially that mobile solutions are entering virtually all areas
of our private and business lives.
GrzeGorz WĄChoCkI Comarch sa
R&D Department Manager,
Telecommunications
Business Unit
beyonD bss/oss42
What makes a good user interface for a mobile application
beyonD bss/oss46
Comarch Technology review 01/2012
Cloud Computing – In its broadest usage, the
term refers to the delivery of scalable IT servic-
es over the Internet. Those resources include
application services and the infrastructure on which they
operate. an organization can purchase these resources
on an as-needed basis and avoid capital costs of soft-
ware and hardware.
The Comarch Data Center experience in hosting servic-
es shows that the most important element for clients is
a service which fulfills business requirements (KPI pa-
rameters, i.e. number of users, transactions, etc.) with
needed availability (defined in SLA, i.e. 99.9% at 24/7/365
mode), security and scalability (warranty of fast upgrades
in case of business growth). The service provider is ful-
ly responsible for ensuring and maintaining proper hard-
ware configuration. These client demands are fulfilled by
CDC Private Cloud dedicated to Comarch’s and third par-
ty applications. A shared environment in the PaaS mod-
el decreases installation costs and shortens service de-
livery time (eliminating problems with hardware delivery).
Why Cloud Computing?
It’s about economics:
faster – applications are ready to use a lot faster than
in the standard way of implementation
simpler – applications can be accessed from anywhere,
anytime and are maintained by the outsourcing
company
Cheaper – to use cloud apps, it’s easier for application
vendors to reach new customers and reduce the cost
of delivery and of the supporting applications. Ability
to drive down data center operational costs. There is
no upfront capital required for servers and storage
because applications are installed on the shared
hardware (storage and server). There are no ongoing
operational expenses for running a data center
Cloud computing models
software as a service (saas) – organizations do not
buy software, they simply use their browser to access
the software as it is provided over the Internet (software
provided as a service). More and more organizations
are consciously going for selected applications to be
operated on Software as a Service. Customer Relationship
Management (CRM) was one of the first areas where
SaaS became a common solution due to software
utilization without extended implementation time frames,
software modification without IT bottlenecks, world class
infrastructure without capital expenditures and 24 by 7
uptime without round-the-clock staffing
Platform as a service (Paas) – is a software
development environment that allows developers to
create software applications they can offer as a service
to their customers or users. The PaaS provider takes
care of hosting the created services, for an agreed
price. Because PaaS providers can share data center
expenses between their clients and offer a better price
for the same standalone solution
pIoTr pIĄTkoWskI Comarch sa
Business Solution Manager,
Data Center Business Unit
paWeŁ DyL Comarch sa
Business Solution Manager,
Data Center Business Unit
beyonD bss/oss46
Comarch Private Cloud
Computing
Comarch Technology review 01/2012
being that the mobile VoIp services market has
advanced, fring designed an innovative product
that allows making phone calls from their
application to mobile and landline phone networks. The
Comarch Billing Cloud solution was selected in order to
provide rating, charging and billing of services of this
revolutionary business idea in real-time.
Business needs
fring already provides a smartphone application that
enables users to make voice/video calls and text chat for
free in the fring network. As the next step it was decided
to allow to make calls to mobile and landline phone users
– the new service was called fringOut. fring planned to
enable its subscribers to make phone calls from 1¢/minute
to any country. To launch this service, fring needed a
billing software for support. fringOut was to be built from
scratch, with no guaranteed success, yet with a solid
potential customer base of 10’s of millions of fringsters. The
supporting software was expected to be flexible – start
small and then grow with business while maintaining telco-
grade robustness. After reviewing several vendors, Comarch
Billing Cloud was chosen as the solution that best fits fring
needs.
The solution
Comarch Billing Cloud is a modern solution, perfectly suited
for start-ups because of its flexibility and short deployment
time. It comes in a variety of business and licensing models
including “pay-as-you-grow”. The final solution can be
developed in an agile way, allowing required customizations
to be delivered dynamically.
The service provides real-time charging, balance control and
replenishment functionalities. The customer care module
supports system operations, such as product catalog, user
management or report generation. Every user can review
their account history, credit and settings, using Web or a
mobile self-care interface. The highly available Comarch
Billing Cloud ensures expected performance and scalability.
Real-time session control, necessary in the prepaid
business model, is supported by a RADIUS server.
User registration is carried out online. The solution also
provides integration with external business partners such
as PayPal and G2S (gate2shop). Comarch Billing Cloud is
hosted in the Comarch Data Center and is made available to
fring via a Virtual Private Network (VPN), connecting over 20
fring data centers around the world.
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Comarch’s flexibility, both technical and commercial was exactly what we werelooking for in our billing provider. The Comarch Billing Cloud enabled fringOut to grow from zero to millions of users, without compromising the quality of service. Thanks to Comarch we were able to launch the service very fast and can easily adjust it as the business evolves.
Alex Nerst – CTO, fring
The Comarch Billing Cloud enabled fringOut to grow from zero to millions of users
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