Use of eTOM as an Efficient Firm Process Model for ...

NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM

Use of Use of eTOMeTOM as an Efficient Firm Process as an Efficient Firm Process Model for Regulatory Issues Model for Regulatory Issues

NGOSS1 - Wednesday, October 13, 2004 / 9:00 AM - 9:45 AMTelemanagement World, Long Beach

www.telefonicactcchile.cl www.ibm.cl

Andrés Leiva ([email protected])Director, IT Planning & Operations

Jorge Falaha ([email protected])Manager, e-business & Process Management

Jaime Palominos ([email protected])Senior project Engineer

Patricio Fernández([email protected])Senior Consultant – Telecom Industry

NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM - 2 -

Contents

Telefónica CTC Chile and the Chilean telecom Market

The Project

The Results

Other uses of eTOM in T-CTC

Final Conclusions


Chilean Telecom Industry Overview

KEY MARKET TRENDS:Mobile penetration is 2.5 times the penetration of the fixed lines Substitution of mobile mobile tariffs competing with LD and local tariffsLD traffic with a declining trend Internet growth driven by broadband Migration to more efficient technologies in corporate communications2004E expected industry growth: + 3.2 – 3.7%

Local29,6%

LD9,3%

Data10,4%

Mobile44,6%

Internet access6,1%

2003 Total Revenues:

US$ 2,768 million

2003 Total Revenues:

US$ 2,768 million

Note: Reference values made only for this presentation, not official information of Telefónica CTC Chile for Investors or Press


The most competitive market in South America(Estimated Market Share, December 2003)

FixedMobile Cable/

Pay TVData

Services

75%

LD (voice)

TOTAL

ISPDial-up

-

-

----

30%

-

-

-

-

---

-

-

-

-

-

----

39%

-

-

-

-

-

--

-

56%

-

-

-

-

-

--

-

ISPBroadband

37%

-

----

50%

-

-

-

-

-

-

3.229M Lines

7.425M Lines

720M Subs

1.927MM

Minutes

7.075MM

Minutes

363M Subs

288US$MMRevenue

Ex AT&T Chile

Controller

Telefónica

Telecom Italia

Grupo Luksic

Liberty Media Group (UGC)

Capital TrustMetrogas - Rabat

Telmex

CasanuevaEndesa España

Grupo Claro- Liberty Media

TOTAL N° OF OPERATORS 15 308 4 104 6

Note: Estimations and reference values made only for this presentation, not official information of Telefónica CTC Chile for Investors or Press


Telefónica CTC Chile Today

Telefónica CTC Chile is the main Chilean operator in the telecommunication industry. It participates in fixed telephony, long distance, data and broadband among others

The Company generated US$1,369 million of revenues in the year 2003 and US$643 million of EBITDA. During the year 2003 CTC invested US$241 million.

Current ratings: Standard & Poor’s: BBB / Stable OutlookMoody’s: Baa2 / Stable OutlookFitch: BBB+ / Stable Outlook

Ownership Structure at 09.09.04 Market Capitalization: US$ 2,249 million

Telefónica S.A.44,9%

Pension Funds26,0%

Foreign Investment

1,2%

ADRs12,3%

Others15,6%



Telefónica CTC Chile (as of December 2003)

• ILEC, funded in 1930• Provides services all over the country (15 million hab)

• Chile fixed line density: 22 lines/100 hab• T-CTC fixed line density: 15.7 line/100 hab

• Fixed lines in service: 2,400,000• Mobile lines in service 2,300,000• Local Traffic (minutes): 15,178 million

• ADSL subscribers: 125,000

• DLD traffic (minutes) : 647 million• Outgoing ILD voice traffic (minutes): 64 million

• Pay-phones: 11,000

• Total personnel: 4,720

• Revenues subject to tariff regulation: 53%

• ILEC, funded in 1930• Provides services all over the country (15 million hab)

• Chile fixed line density: 22 lines/100 hab• T-CTC fixed line density: 15.7 line/100 hab

• Fixed lines in service: 2,400,000• Mobile lines in service 2,300,000• Local Traffic (minutes): 15,178 million

• ADSL subscribers: 125,000

• DLD traffic (minutes) : 647 million• Outgoing ILD voice traffic (minutes): 64 million

• Pay-phones: 11,000

• Total personnel: 4,720

• Revenues subject to tariff regulation: 53%



Regulatory Framework

The Tariff Setting Process- Specific process for each company- Set the tariff for a five-year period (2004-2009)- Defines:

• Tariff Structure (Fixed and variable charges, time-slots , tariff areas)• Tariff Level: maximum prices• Indexation formulas

Based on an “Efficient Firm” model- Attempts to replicate de costs of an entering CLEC in a competitive market- Considers the best technology available in terms of technical and economical criteria- Satisfies the existing demand of services and the growth for the next 5 years- Invests only for the regulated services- Invests only for the tariff setting period

Services subject to tariff regulation (approx. 30)- Local telephone service- Public telephones- Interconnection services (access charges) and related administrative services- Unbundled network services- Line connections


The Tariff Proposal Study

Includes different cost items (CAPEX and OPEX):- Technical Infrastructure (The Telephone Network)- Administrative Infrastructure (Buildings and Real Estate) - IT Infrastructure - Personnel and Salaries- General Goods and Services

Considers projected efficient cost (not historical costs)

Considers the demand projection for the services subject to regulation- Lines in service - Traffic (for each kind and destiny)

Useful lives estimate for each type of investment

WACC estimation


Contents


The Project

The Results


Final Conclusions


The Project

Develop a parametric model for the IT Infrastructure of an Efficient Local Exchange Carrier with an equivalent size of Telefónica CTC Chile, which operates in a competitive market. The model includes both the BSS & OSS applications

Duration: 1 year

Team: 8 people from T-CTC + IBM-BCS consultancy

Objective: Determine the IT costs to be included in the study that supported T-CTC´s tariff proposal for regulated services for the period 2004-2009


Main modelling criteria

Zero-based model

Architecture layers based model

Includes all the configuration items of an IT Infrastructure (SW, HW, IT Network, security elements, etc.)

Includes both BSS and OSS

Best-of-breed standard products and vendors- Application SW, Operating Systems, middleware, hardware, etc.

Includes applications development and maintenance processes

Considers IT infrastructure and systems refresh

High Availability and Disaster Recovery for mission critical applications


Business Process Framework

Solution requirements andapplications architecture

High level generic applications map

Specific applications map (best of breed systems)

IT Capex and Opex cost sub model TI organization

Regulated Services

Vendor prices and

Cost drivers

IT Hw andBase Sw

Network stationsinfrastructure

Connectivityinfrastructure

Requirements

Outsourcing services

Work Breakdown StructureeTOM based deliverables and analysis

Business Process Framework




IT organization

IT Hw andBase Sw


Business Process Framework(eTOM v3)




IT Capex and Opex cost sub model IT organization

Regulated Services

Vendor prices and

Cost drivers

IT Hw andBase Sw



Requirements

Outsourcing services

Business Process Framework(eTOM v3)




IT Capex and Opex cost sub model IT organization

Regulated Services

Vendor prices and

Cost drivers

IT Hw andBase Sw



Requirements

Outsourcing servicesOPEXOPEX

MaintenanceMaintenance

ConnectivityConnectivity

OutsourcingOutsourcing

CAPEXCAPEX

SoftwareSoftware

DeploymentDeployment

HardwareHardware

Model Summary

Expected Results: Annualized CAPEX and OPEXFive-year period Cash Flow Cost / Tx

Expected Results: Annualized CAPEX and OPEXFive-year period Cash Flow Cost / Tx

Gestión de la Empresa

Estrategia, Infraestructura y Producto Operaciones

Cliente

Provisión Aseguramiento FacturaciónGestión delCiclo de vida

de laInfraestructura

Preparación y Apoyo de Operaciones

Estrategia yCompromiso

Gestión delCiclo de vida

delProducto

Gestión de Relación con el Cliente (CRM)Gestión de Marketing y Oferta (M&OM)

Gestión y Operaciones de Servicio (SM&O)Desarrollo y Gestión de Servicio (SD&M)

Gestión y Operaciones de Recursos (RM&O)(Aplicaciones, Computación y Redes)

Desarrollo y Gestión de Recursos (RD&M)(Aplicaciones, Computación y Redes)

Gestión de Relación con Proveedores y Partners (S/PRM)

Desarrollo y Gestión de Cadena de Abastecimiento (SCD&M)

PlanificaciónEstratégica

y de la Empresa

GestiónFinanciera

y de Activos

Gestión de Marca,Investigación de

Mercado yPublicidad

Gestión deRecursosHumanos

Gestión de Relacióncon Agentes Externos

Investigación yDesarrollo,

Adquisición deTecnología

Gestión de Recuperación ante

Desastres, Seguridad y Fraudes

Gestión de Calidad de laEmpresa, Planificación

Y Arquitectura de Procesos e IT



Estrategia, Infraestructura y ProductoEstrategia, Infraestructura y Producto OperacionesOperacionesOperaciones

ClienteCliente

Provisión Aseguramiento FacturaciónProvisión Aseguramiento FacturaciónProvisión Aseguramiento FacturaciónGestión delCiclo de vida







Estrategia yCompromisoEstrategia yCompromiso


delProducto


delProducto

Gestión de Relación con el Cliente (CRM)Gestión de Marketing y Oferta (M&OM) Gestión de Relación con el Cliente (CRM)Gestión de Marketing y Oferta (M&OM) Gestión de Relación con el Cliente (CRM)Gestión de Relación con el Cliente (CRM)Gestión de Marketing y Oferta (M&OM)Gestión de Marketing y Oferta (M&OM)Gestión de Marketing y Oferta (M&OM)

Gestión y Operaciones de Servicio (SM&O)Desarrollo y Gestión de Servicio (SD&M) Gestión y Operaciones de Servicio (SM&O)Desarrollo y Gestión de Servicio (SD&M) Gestión y Operaciones de Servicio (SM&O)Gestión y Operaciones de Servicio (SM&O)Desarrollo y Gestión de Servicio (SD&M)Desarrollo y Gestión de Servicio (SD&M)Desarrollo y Gestión de Servicio (SD&M)















Gestión de Relación con Proveedores y Partners (S/PRM)Gestión de Relación con Proveedores y Partners (S/PRM)

Desarrollo y Gestión de Cadena de Abastecimiento (SCD&M)Desarrollo y Gestión de Cadena de Abastecimiento (SCD&M)Desarrollo y Gestión de Cadena de Abastecimiento (SCD&M)


y de la Empresa

GestiónFinanciera

y de Activos


Mercado yPublicidad










y de la Empresa

GestiónFinanciera

y de Activos


Mercado yPublicidad










What were we looking for?

Non auto-referring modelNot referred to the legacy applications of the CompanyBest-of-breed IT products (hardware, software and package systems)Reference market prices Business process framework

- Internationally accepted- Telecommunications industry specific solution - Neutral referring- Process structure, decompositions, flows and dynamics included- Consolidated - Acceptable by the Regulator

eTOM processes framework(enhanced Telecom Operations Map ®) version 3.0

eTOM processes framework(enhanced Telecom Operations Map ®) version 3.0


Contents


The Project

The Results


Final Conclusions


Operations

Fulfillment Assurance BillingOperations Support & Readiness

Resource Management & Operations

Customer Relationship Management

Service Management & Operations

Supplier/Partner Relationship Management

Infrastructure Lifecycle Mgmt

Product Lifecycle Mgmt

Strategy and Commit

Strategy, Infrastructure and Product

Service Development & Management

Resource Development & Management

Supply Chain Development & Management

Marketing and Offer Management

Disaster Recovery, Security & Fraud Management

Human Resource Management

Enterprise Quality Mgmt, Process & IT Planning & Architecture

Research & Development & Technology Acquisition

Enterprise ManagementStrategic & Enterprise Planning

Financial & Asset Management Stakeholder & External Relations Management

Brand Mgmt, Market Research & Advertising

Generic Applications Map over eTOM

CRM -SalesCRM -Sales

CRM – Sales & e-SalesCRM – Sales & e-Sales

CRM - MarketingCRM - Marketing

Interactive SalesInteractive Sales

Market AnalysisMarket Analysis


Network InventoryNetwork InventoryNetwork InventoryNetwork Inventory

Activ

ity B

ased

Cos

ting

Activ

ity B

ased

Cos

ting

DataWareHouse / DataminingDataWareHouse / Datamining

Dat

aWar

eHou

seD

ataW

areH

ouse

ERPMaterial Management


Network PlanningNetwork Planning

Computer Telephony Integration (CTI)


Workforce ManagementWorkforce ManagementSLA

Management SLA

Management

CollectionsCollections

Billin

gBi

lling

Corporate Web PortalCorporate Web Portal

EBPPInternet Payment


Pro

blem

Man

agem

ent

Pro

blem

Man

agem

ent

Computer Telephony Integration (CTI)Computer Telephony Integration (CTI)

GISGIS

Aut

omat

icAc

tivat

ion

Aut

omat

icAc

tivat

ion

Wor

kfor

ce M

anag

emen

tW

orkf

orce

Man

agem

ent

Con

figur

atio

n M

anag

emen

tC

onfig

urat

ion

Man

agem

ent

TestingManagement

TestingManagement

Mediation System

Mediation System



Strategic PlanningStrategic Planning

ERPAccounting, Treasure,Finance, Controlling


Workforce MgmtWorkforce Mgmt Fraud Management

Fraud Management IT SecurityIT Security

Alar

m m

anag

emen

tAl

arm

man

agem

entAlarm

ManagementAlarm

Management

Order ManagerOrder Manager

Strategic PlanningStrategic Planning Strategic PlanningStrategic Planning


Strategic Planning

Strategic Planning


Strategic PlanningStrategic PlanningAssistanceAssistanceRevenue AssuranceRevenue Assurance

Building Asset ManagerBuilding Asset Manager

Mar

ket I

nfor

mat

ion

Rep

osito

ryM

arke

t Inf

orm

atio

n R

epos

itory

Intern AuditIntern AuditHuman Resource MgmtHuman Resource Mgmt

e-Learninge-Learning

IT Asset MgmtIT Asset Mgmt

IT Project MgmtIT Project MgmtProcess ModellerProcess ModellerMiddlewareMiddleware e-maile-mail

Legal ManagementLegal Management

ProvisioningWorkflow


ProblemManagement

ProblemManagement

ERPMaintenance

ERPMaintenance

ERPAccounting and

Payments

ERPAccounting and

Payments

Version ControlVersion Control

IT SecurityIT Security


Traf

fic M

anag

emen

tTr

affic

Man

agem

ent

Con

figur

atio

n M

anag

emen

tC

onfig

urat

ion

Man

agem

ent

Network Capacity ManagementNetwork Capacity Management

Test

ing

Man

agem

ent

Test

ing

Man

agem

ent

Testing Management

Testing Management

SS7

SS7

Per

form

ance

Man

agem

ent

Per

form

ance

Man

agem

ent

Enterprise QualityEnterprise Quality

ERPSupplier Payment

ERPSupplier Payment

ERPProject Management



Specific Applications and IT Products Map over eTOM(Best-of-Breed)

Generic Application or Product

Generic Application or Product

• Experience of IBM-BCS in other Telcos• Studies of IT Research Companies

(e.g.: Metagroup, Gartner, Telestrategies, etc.)

• International Qualifications and Awards• Number of Telcos that use the product• Books and research papers• Other Elements

Specific Application or Product Selected

Specific Application or Product Selected

Once the generic applications required to support the processes of the Efficient Telecom Provider were identified, we proceeded to select the Best-of-breed products available in the market


Selection of Best-of-breed IT ProductsOperations










Network InventoryNetwork Inventory




Management SLA

Management


Billin

gBi

lling




Pro

blem

Man

agem

ent

Pro

blem

Man

agem

ent


GISGIS

Aut

omat

icAc

tivat

ion

Aut

omat

icAc

tivat

ion

Wor

kfor

ce M

anag

emen

tW

orkf

orce

Man

agem

ent

Con

figur

atio

n M

anag

emen

tC

onfig

urat

ion

Man

agem

ent

TestingManagement

TestingManagement

Mediation System

Mediation System



Alar

m m

anag

emen

tAl

arm

man

agem

entAlarm

ManagementAlarm

Management




ProblemManagement

ProblemManagement

Traf

fic M

anag

emen

tTr

affic

Man

agem

ent

Con

figur

atio

n M

anag

emen

tC

onfig

urat

ion

Man

agem

ent


Test

ing

Man

agem

ent

Test

ing

Man

agem

ent

Testing Management

Testing Management

SS7

SS7

Per

form

ance

Man

agem

ent

Per

form

ance

Man

agem

ent

ERPSupplier Payment

ERPSupplier Payment

Application Software

• For each generic application a best-of-breed product was selected

• The solution was dimensioned and quoted with the providers according to the specific drivers of each application (e.g.: lines, traffic, users, etc)

Additional Software

• The additional SW required for the operation was dimensioned and selected (e.g.: DB, OS, Middleware etc.)


Selection of Best-of-breed IT ProductsOperations










Network InventoryNetwork Inventory




Management SLA

Management


Billin

gBi

lling




Pro

blem

Man

agem

ent

Pro

blem

Man

agem

ent


GISGIS

Aut

omat

icAc

tivat

ion

Aut

omat

icAc

tivat

ion

Wor

kfor

ce M

anag

emen

tW

orkf

orce

Man

agem

ent

Con

figur

atio

n M

anag

emen

tC

onfig

urat

ion

Man

agem

ent

TestingManagement

TestingManagement

Mediation System

Mediation System



Alar

m m

anag

emen

tAl

arm

man

agem

entAlarm

ManagementAlarm

Management




ProblemManagement

ProblemManagement

Traf

fic M

anag

emen

tTr

affic

Man

agem

ent

Con

figur

atio

n M

anag

emen

tC

onfig

urat

ion

Man

agem

ent


Test

ing

Man

agem

ent

Test

ing

Man

agem

ent

Testing Management

Testing Management

SS7

SS7

Per

form

ance

Man

agem

ent

Per

form

ance

Man

agem

ent

ERPSupplier Payment

ERPSupplier Payment

Hardware

• The HW requirements of the best-of-breed products were grouped and consolidated in specific HW platforms

• High Availability and Disaster Recovery was considered for the mission critical applications


Operations






Infrastructure Lifecycle Mgmt Product Lifecycle

MgmtStrategy and

Commit

Strategy, Infrastructure and Product

Service Development & Management

Resource Development & Management

Supply Chain Development & Management

Marketing and Offer Management








CRM -SalesCRM -Sales



Interactiv e SalesInteractiv e Sales

Market Analy sisMarket Analy sis


Network Inv entoryNetwork Inv entoryNetwork Inv entoryNetwork Inv entory

Activ

ity B

ased

Cos

ting

Act

ivity

Bas

ed C

ostin

g

DataWareHouse / DataminingDataWareHouse / Datamining

Dat

aWar

eHou

seD

ataW

areH

ouse






Workf orce ManagementWorkf orce ManagementSLA

Management SLA

Management


Billin

gBi

lling


EBPPInternet Pay ment

EBPPInternet Pay ment

Pro

blem

Man

agem

ent

Pro

blem

Man

agem

ent


GISGIS

Aut

omat

icAc

tivat

ion

Aut

omat

icA

ctiv

atio

n

Wor

kfor

ce M

anag

emen

tW

orkf

orce

Man

agem

ent

Con

figur

atio

n M

anag

emen

tC

onfi

gura

tion

Man

agem

ent

TestingManagement

TestingManagement

Mediation System

Mediation System






Workf orce MgmtWorkf orce Mgmt Fraud Management


Ala

rm m

anag

emen

tAl

arm

man

agem

entAlarm

ManagementAlarm

Management




Strategic Planning

Strategic Planning



Building Asset ManagerBuilding Asset Manager

Mar

ket

Info

rmat

ion

Rep

osito

ryM

arke

t In

form

atio

n R

epos

itory

Intern AuditIntern AuditHuman Resource MgmtHuman Resource Mgmt





Prov isioningWorkf low

Prov isioningWorkf low

ProblemManagement

ProblemManagement

ERPMaintenance

ERPMaintenance

ERPAccounting and

Pay ments

ERPAccounting and

Pay ments

Version C ontr olVersion C ontr ol



Traf

fic M

anag

emen

tTr

affic

Man

agem

ent

Con

figu

ratio

n M

anag

emen

tC

onfi

gura

tion

Man

agem

ent


Test

ing

Man

agem

ent

Test

ing

Man

agem

ent

Testing Management

Testing Management

SS7SS

7

Per

form

ance

Man

agem

ent

Perf

orm

ance

Man

agem

ent

Enter prise QualityEnter prise Quality

ERPSupplier Pay ment

ERPSupplier Pay ment



IT Communications & Network Stations

The total size of the organization (personnel, geographical distribution) determined the IT network dimension and complexity, and the number of PCs, notebooks, printers, among others facilities, required.

Selection of Best-of-breed IT Products


The IT Organization








CRM - MarketingCRM - MarketingStrategic PlanningStrategic Planning



Workforce MgmtWorkforce Mgmt Fraud Management




Building Asset ManagerBuilding Asset ManagerIntern AuditIntern AuditHuman Resource MgmtHuman Resource Mgmt





Version ControlVersion Control


Enterprise QualityEnterprise Quality

IT Organization & Operation

• The IT Organization (personnel, methodology, support Systems, etc.) was dimensioned according to the size of the Company

• The IT support and delivery processes (operations architecture) required were dimensioned

• The relationship between IT and Business areas was included• Certain non-core processes were outsourced


Calculation Model – Inputs / Outputs

Demand

Business Model

Other Elements

eTOM & Functional

requirements

AdministrativeInvestment

ThirdParties

HumanResources

Network

Interconnection (ITX)

• N° of lines• N° of customers• Traffic

• Characteristic of the Services• Geographic coverage• Customer Segmentation

• Topology of the network• Geographic distribution of COs• Service complain rate • Network equipment (kind, N°,

vendor, element managers)

IT SPECIFIC CRITERIA

• Mission Critical applications• Technology definitions• User support SLA• Different Network Stations Profiles• Security policies

• N° of operators • Traffic volume inbound/outbound• Demand of services• Characteristics of the services

ACCOUNTING & FINANCIAL CRITERIA

• WACC• Technology refresh and useful lives• Exchange rates• Tax rates

• N° of users / skills• N° of users / Office• N° of users / application• N° of internal & external users

• N° Suppliers• N° Stakeholders

• Geographic distribution of Administrative Buildings

• Benchmarks (Other Telcos)• Regulatory requirements• Legal requirements

CAPEX

• By line of service (Local, Interconnection, Pay-Phones)

• By year ( Y0...Y5)• By IT concept (SW, HW,

Implementation, Connectivity)• By Application

OPEX

• By concept• By line of service (Local,

Interconnection, Pay-Phones)• By Application

• Requirements of space, energy, security and air-conditioning for HW and NWS

• Data Centers Location

• Number of IT employees

• CAPEX and OPEX by currency

Main OPEXsub-model

Main Administrative

Investment sub-model

Main HRsub-model

IT Systems &

InfrastructureModel

IT AND PROCESSES MAPS

• Map of BSS Applications• Map of OSS Applications• Technology Alternatives• HW + Base SW• Communications

Indexing sub-model


HARDWAREHARDWARE

SOFTWARESOFTWARE

Network Stations (PCs)Network Stations (PCs)

Connectivity & Data CenterOperations

Connectivity & Data CenterOperations

52 Applications28 Suppliers IBM Applications: 25%

Intel and Unix Servers10,000,000 TpmC40,000 GB Storage

6000 seats (Desktop and Notebook)500 Office Printers, 350 POS, 240 Scanners2 help desks (technical, functional)

260 Commercial Offices, 500 Central Offices and the Corporate Building2 Data CentersCommand center

Calculation Model – Main outputs

Volume Cost Items

Investment (license, deployment)Annual Licenses

InvestmentAnnual Maintenance

Investment (HW & SW)Annual LicensesMaintenance & Operational Outsourcing (cost per call, per movement, etc.)

Set-up feeAnnual licensesMaintenance & Operational Outsourcing (cost per TpmC, GB, etc.)Data network monthly rent


The Results

A comprehensive, complete and easy-to-use IT cost model based on eTOM

The Regulator accepted and used the model

Final costs (at the end of the process):

• Replacement CAPEX = US$ 250 million• Annual OPEX = US$ 60 million• Total Cash Flow = US$ 566 million (5-year period)• The IT costs contributes with more than 20% of the annual income

per line

• Replacement CAPEX = US$ 250 million• Annual OPEX = US$ 60 million• Total Cash Flow = US$ 566 million (5-year period)• The IT costs contributes with more than 20% of the annual income

per line

For more information see the complete study at:

The study that was presented:http://procesostarifarios.subtel.cl/downloads/CTC/ANEXOS/B.05_Informatica/Anexo_B.5_Infraestructura_y_Sistemas_Informaticos_vPU.pdf

The final results (at the end of the process):http://procesostarifarios.subtel.cl/notificaciones/CTC/IS_CTC.pdf


Contents


The Project

The Results


Final Conclusions


Other uses of eTOM in Telefónica CTC Chile

The project ended on march 2004It was the first step to consolidate the use of eTOM in Telefónica CTC Chile

Actual uses of eTOM- Mapping existing processes - Mapping existing applications (Applications Architecture)- Costing models based on the eTOM processes (Financial Management)

• Identifying and analyzing costs of business processes• A structure for Activity Based Costing elements

- Reference for the organizational structure of the VP of Operations- Analysing and Comparing Project proposals for potential overlap- Develop a consolidated view of end-to-end processes

Future uses of eTOM - Guiding the design of new Processes - Framing tactical IT Architectures- Identifying gaps in existing OSS/BSS v/s Commercial OSS/BSS.- Outline for documenting problem scope and requirements- Part of the RFPs of new IT projects, to describe the functional coverage- NGOSS development framework for new IT projects


Contents


The Project

The Results


Final Conclusions


Final Conclusions

By using eTOM the discussion was focused on the prices of the applications, not on the need of the systems (OSS/BSS) that supported the different processes of the Efficient Firm

We established a common language for the different teams - including the business areas - involved in the main study. This helped the definition of functional requirements and applications, a recurrent problem in the relationship between the IT Departments and the Business Units

eTOM provided a comprehensive framework in order to facilitate the relationship and agreements among the different players of the Telecom Industry

The Chilean Regulatory Office used eTOM in the tariff setting processes of the otherLocal Service Providers

The Chilean process is the first in Latin America, so there is a probability that other countries in the region (their Operators and Regulators) might end-up using the eTOMmodel for regulatory issues

(It would be interesting to analyze the inclusion of the “Regulatory Entities” on theeTOM level 1 diagram)

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