The Livewire blog creates the forum for Infosys, Communication Service Providers and Media and Entertainment Companies to discuss and share insights on the key industry challenges, opportunities, trends and solutions.

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March 30, 2010

Billing the Prepaid Services for Web Content Providers

A Telecom Prepaid Scenario is quite well established. There are many players with their scalable COTS products and solutions which cater to Telecom Prepaid Services. If we look into the various applications in this prepaid-billing area, there are the network switches, Service Control Points, Radius/Diameter Protocol governers and the billing systems performing Authentication, Accounting, Balance Management and Call Management.

For service providers managing content online, particularly in web services industry, prepaid services are not completely explored yet.

There can be many different attractive options to be rolled out to the end customers if Web Services industry embraces the Prepaid services heavily. A quick scenario that comes to my mind is the Advertisements that are put up in websites and number of clicks being counted. Advertiser can buy a $50 pack for 5000 Clicks. Every click on the Banner will reduce the balance on his account and the advertisement would cease to show up when the balance becomes 0. A prepaid billing system is best suited to handle such real time requirements. But, how is it going to be connected to the webservers? Who would act as an SCP in this scenario? Some products have built in diameter managers which can be used for meeting certain requirements. Do you know of other best practices for this purpose?

From the CAPEX/OPEX perspective, I presume, it takes a few more years for these prepaid COTS packages to evolve, become less-complex and more suitable for the web content scenario. Since this part of industry cannot be compared straight away to Telecom in annual revenue turnover, it is important that the COTS packages to bridge the gap by becoming more flexible and requirement friendly for this industry.

March 29, 2010

Significance of KPIs in monitoring operation health

In today’s world the biggest challenge in front of the Service Providers is to decide on which business area they should focus more on. There is a dilemma on whether it has to be Operational Excellence, Customer Intimacy or the Product Leadership. Moreover it is very difficult for them to choose and analyze the right sets of Key Performance Indicators (KPIs) for each business area which are not only responsible to drive these processes but also act as a key factor to enhance the business by correlating different business elements within the focused area.


For a successful and sustainable business it is imperative to identify and measure the right Key Performance Indicators (KPIs). Using KPIs, Service Providers will able to measure the health of the system and ensure that all individuals at all levels are “marching in step” to the same goals and strategies defined by them. This will further guarantee a long-term profitability from operations.

Therefore, a robust KPI Management Framework is required to manage and keep the overall hygiene of the organization / unit / department / service / networks / systems. The framework will give service providers a quantifiable means to identify, measure and improve target business areas. KPI Management Framework is governed by simple rules & logics to Identify, Prioritize, Standardize the KPIs.

With the help of KPI Management framework, they will able to maximize their benefits from collected data, by offering a systematic approach consisting of three key steps:

• Identify KPIs for improving efficiency and profitability
• Validate the quality of data used to develop KPI Metrics
• Leverage the KPI metrics to make business decisions

This effective mechanism ensures that any operator, using this mechanism, will able to continuously outperform the competition and deliver high value services to their customers.  Following are the key benefits in using a KPI based measurement system:

• Improved Commited to Delivered Customer Experience
• Optimized processes leading to peak performance
• Abilitiy to identify, measure and improve target business areas
• Campare with the Industry benchmarks on processes
• Highlight pain areas for improvements
• in-line with Industry defined standards and framewors such as eTOM

The availability of such a measurement framework would help service providers calibre and improve their customer experience as well as operationally improve resulting in two fold benefits of customer satisfaction and opeational efficiency.

March 24, 2010

Importance of Billing Dispute management for building trusted brands

As an end customer of a communication service provider I always wish to see my bill as per my expectation. The basic expectation is to be billed correctly only for the services utilized by me.   In all means the bill should not be a shock or a surprise. The impression from the first bill is usually carried by the customer throughout the customer life cycle. Hence it becomes imperative for the first bill to be well explained as suggested in my previous blog and further, to tackle disputes effectively and efficiently for better customer engagement and winning customer trust.   

This expectation is more than often shattered by the billing disputes such as Payment disputes; Rating disputes; Promotion/discount disputes and other disputes for various charges levied. Some of the customer reactions with any of these billing disputes not being resolved would be: 

 Loosing trust on the service provider and churn out when there is no resolution
 Spread a bad word of mouth through different social networking
 Billing default.

 On the other hand, if these disputes are resolved effectively, it would lead to:

 Cross sell and up sell opportunity from a happy customer
 Customer  loyalty

Dispute management depends on how robust the processes are while implementing billing systems. A robust system should be able to tackle either an issue created by the system or an issue that may be due to the processes touching the system. Any implementation needs to take care of both these issues to become a trusted brand.

These are just a few thoughts on importance of billing dispute handling; you are most welcome to add your further thoughts on this.

March 23, 2010

Billing Transformation Programme – Part 2: Implementation Strategies

While embarking on billing transformation, business support for live customers needs to be continued with minimal disruptions. Also, it becomes essential to simultaneously provide support to on-going market promotions.  Thus, transformation journeys for billing systems is a complex and daunting task for any CSP’s as discussed in my previous blog: “Billing Transformation Programme – Part 1: Key Challenges”.

Now let us look at the implementation strategies: Big Bang approach and Phased approach. Depending upon active customer base, market segments, product lines and business needs (continuity) on legacy stack – Big Bang or Phased/Iterative Migration Strategies can be decided. Each of them has its own pros & cons.

Before embarking on implementation strategy, following factors need to be evaluated:
§  What customer data and by when it needs to migrated
§  List of products, services and promotions offered for different customer markets
§  Volume and complexity of customer migration data
§  Extract Transform & Load Tools to be used
§  Data Cleanse Strategy – to remove customer data anomalies
§  Products rationalisation & withdrawals i.e. what products or services to be provided on new stack and what needs to be withdrawn during transformations
§  Planning  parallel bills runs & trial test
§  Re-fitment of existing business processes

Big Bang Approach:

This kind of transformation approach has smaller rollout time periods as compared to phased approach and hence is most suitable for Tier 3 operators where customer base are less, products are much simplified & already rationalized on legacy stack. Customer, account and billing data can be extracted, transformed and loaded into new stack without segmenting customer data based on market segment or product lines or customer types. During migrations, parallel bill runs on old billing & new billing systems can be continued till trial bills from new stack are error free and good to go for customer.. You can switch-off billing in old stack for such accounts.

It is not suitable for large communication service providers who have complex customer & billing data to be migrated. Also its not suitable for service providers whose customers are spread across multiple geographies within or outside country each of them having distinct segmentation of service offerings, billing requirements, tax & regulatory requirements.

Phased/Iterative Approach:

Most widely and preferred approach for any kind of CRM or billing systems’ transformations programme by Tier 1 & Tier 2 Service providers. This will have longer transformation window.

Entire billing transformation journey is split into multiple waves of transformation programme with intermediate milestones.. Phased approach can be done along customer types, product lines and market segments and geographies. During phased approach, initially a new billing system can be set-up, configured, customized and integrated to meet basic customer requirements and simpler products & service offerings. After initial success, more complex functionalities can be built before embarking on next wave of transformation journey. This will be an iterative cycle for each transformation wave till the new billing system is fully built, configured & integrated to meet all business &  customer requirements  and all the transformation waves are completed. Within each wave we can have initially low volume migrations before embarking on mass migrations. During low volume migrations, live verification of customer data and test bills can be carried out e2e from customer order journey experience till billing and financial journals posting. This ensures that there is minimal impact on customer experience due to any transformation issues. Also parallel and trail bills runs required before moving to next wave.

Thus this approach will be most suitable for global rollouts and complex customer, market and product segmentation. This requires robust change and risk management’s mechanism to be put in place.

To summarize, Big Bang approach is suitable for smaller transformation programmes where there is no complexity involved in customer or product or market segments, while Phased/Iterative approach is best & widely adopted approach for medium/large service providers.

Right choice of New Billing solution & technology, ETL Tools and Migrations Strategies decides success Story for any Billing Transformation Programmes

Parallel runs for addressing billing migration challenges

In my previous blog, I have discussed how to address telecom billing migration challenges. In this blog, I shall try and elaborate on parallel runs based on my experience.

Parallel run is nothing but running the rating and billing processes in parallel to generate bills and associated reports in both legacy and new stack followed by a comparison cycle to check whether the new system behaves as expected for a given input data.

There are two key steps involved w.r.t inputs –

 

 1) Customer Account attributes like customer account status, products/subscription details etc. For example, if we want to check proration of charges, then the termination date has to be same in both the legacy and the new stack.

 

 2) Same usage data for legacy and the new stack like date (holiday or non holiday), time of the call (peak or half peak), duration of the call and type of the call (Voice, SMS, Data etc).

 

One of the complex scenarios where parallel runs help is - shortening and lengthening of the bill cycle duration due to change of bill date as per the customer request.  This scenario involves proration of charges, applicability of usage bundles and monthly packs due to change in duration of bill cycle where it includes complex calculations and presentation changes on the bill. Thus it is very difficult in coming to a conclusion based on the output generated by new system.

 

Parallel runs can be implemented either only in User acceptance testing (UAT) phase or in both UAT and production (at least for one bill run). To minimize the cost of environment and testing – parallel runs testing can be limited to UAT phase only. However, this decision depends on the number of defects discovered in the earlier testing phases and mainly the regression issues.  If the defects discovered during the system testing are more than the normal trend then definitely it qualifies for parallel run in production as well to avoid issues in customer experience.

 

If the decision is taken very late in the cycle then the preparation for parallel runs will be delayed impacting the overall delivery schedule.

 

Having discussed the importance of parallel runs, there is a lot of debate which is unavoidable - many people say that parallel run is a waste of time and money and many questions arises like, when there is a testing team why do we need parallel run?

 

Finally one should weigh the cost and the risk of impacting the customer experience after going into production rather than treating it as a decision whether parallel run is required or not.

March 19, 2010

Pre-paid Services – Time to join the 21st Century?

For  some time now, we have all been hearing the convergence story, multi services all billed at a single point with discounting and loyalty points multiplied on the basis of cross-product consumption.  However, when we dig a bit deeper, it appears that really this only applies to post-paid services, as the limitations around calculating call/event costs in real-time mean pre-paid services are effectively still stand alone.

There are good business reasons for this, but charging technology and the cost of technology should not be the barrier to enhancing these services. 

So how and where does this get resolved?  Is this a software or hardware issue?  Traditionally the nearer real-time a cost has to be calculated, the less complex the rate plan had to be, as the cost of hardware either as part of an IN or a RADIUS/DIAMETER aware BSS seems to rise exponentially with the volume of calls or the complexity of calculation.  This model isn’t sustainable for operators as they aren’t able to pass the cost onto the consumers of their services.

From some investigation we’ve doing, we see new technologies starting to exist, in-memory databases, increased transaction per minute without building server farms, faster processing algorithms amongst them.  However it’s not clear which innovation will come to dominate. 

I’d be interested to hear other people’s views on this, as it’s always interesting to be on the cusp of changing technologies or business models.

And I haven’t mentioned roaming………………..

March 9, 2010

Telecom convergence and customer centricity

The maxim about the customer being king has never been as relevant as in today’s telecom environment. To win the battle for growth, Communication Services Providers (CSPs) are gearing their cultures toward putting customers’ needs first. CSPs are becoming customer-centric, molding operations to answer client needs and offering an unmatched communications experience to foster loyalty and reduce customer churn. Couple this with the converged landscape of telecom industry, customer centricity in a converged telecom set-up has the potential to be a game changer. Convergence of services is revolutionizing the communications industry, driving the investment of billions of dollars on network and service development efforts by CSPs. Convergence offers CSPs a tremendous business opportunity by allowing them to exceed customer expectations through state-of-the-art, personalized communication services. Thus, the CSPs are keen to grow and retain their customer base and increase average revenue per user (ARPU) by rolling out next-generation products and services.

With customer centricity driving all key activities in the management of a customer’s Life Cycle, what are the key areas the CSPs need to focus on? Here are a few:

·         Understand customer needs better (location, context and situation)

·         Provide the customers the flexibility they require

·         Give them the control to manage the services they use (with a customer-centric view).

The need of the hour is to recognize the strategic imperative of "customer centricity" as it holds the key to unlock the customer lifetime value!

March 5, 2010

Changing billing practices and role of Network edge Billing

Traditionally, service providers relied mainly upon price plan improvement and their core network assets as sources of competitive advantage. However, customer demands and competitive pressures are giving rise to flat-rate plans over complex billing plans. The emergence of IP based networks and services have moved customer expectations from basic requirements such as connectivity, to those provided by device manufacturers, application, and content providers. This is both an opportunity and a threat to the future revenues and has become a challenge to the Service Providers to develop sustainable revenue.

 

The existing pre-paid and post paid billing systems provide a solid foundation but are not capable to provide real time transaction management for large volume data. They are neither agile nor cost affective to support the change in business models and billing practices. Moreover they are inflexible and treat the account management, subscriber interaction and bill presentment processes in a uni - direction way. These systems were primarily architectured and designed for uncompressed voice, to support VPN and freefone to process high volumes of data in batch. The IN platform was re-engineered to suit the prepaid architecture, but it could not perform well for IP- based services due to their bursty nature and high volumes of transactions.
This shortcoming can be resolved by providing a dynamic and responsive interface between network, customer, and accounting data. This can be achieved by augmenting the existing systems with an agile, interactive and highly scalable infrastructure that will increase the intelligence of the application by moving the functions such as account management, subscriber interaction and usage details close to the customer i.e. to the network edge. This will enable them to personalize the services on their own and provide them accurate, current and instant access to the usage data, account balances, service bundles, advice-of-change notice, and promotional offers improving the customer experience. For SPS this will reduce customer care costs by moving these functions from back office to highly dynamic and responsive interface.  This re-modeling will require introducing a new control layer which will touch the network layer and interact with the back office systems to unite the network and subscriber data. For ex: For P2P connection to control the session to manage traffic against an account balance, the capability to manage and control a subscriber session resides at the network edge interacting with devices, routers, and application servers etc. to extract relevant information.

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