Post on 13-Apr-2018
eTOM Makes Real Business Sense for Cable Operators
TeleManagement World 2004October 12, 2004
Thor Johnson – Managing Director, Telecommunications Vitria Technology Marek Stawinski – Vice President, Architecture & OSSUPC
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More than $60 Billion in cable infrastructure and facility upgrades has recently been invested to deploy a broad range of new services
Plant Upgrade/Build(in billions USD)
Sources: Deutsche Banc Alex Brown, Cable Signals, January 15, 2002
$0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
2000 2002 2004 2006 2008
Revenues by Service Type(in billions USD)
Cable Digital Cable PPV VOD
$0
$15
$30
$45
$60
$75
2000 2001 2002 2003 2004
Deutsche Banc Alex. Brown Cable Industry Outlook & DBS Report
Profiting from the delivery of new services is essential to meeting the future revenue expectations for the business
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New service offerings will drive greater complexity and expense intoorganizations already facing issues with customer satisfaction,
performance reliability and churn
Sources: FCC Cable Services Bureau Annual Reports on Competition in Video Markets, 1992-2002. J.D. Power and Associates, 2004 Cable/Satellite TV Customer Satisfaction Study
Cable companies must develop strategies to minimize operational costs while delivering new services and improving customer service
US Cable/Satellite Customer Satisfaction
DirecTV
Adelphia
Cablevision Systems
Charter Communications
DISH
WOW!
Cox Communications
BrightHouse Networks
Comcast
Insight Communications
Mediacom
RCN
TimeWarner Cable
CustomerService
PerformanceReliability
Overall Satisfaction
Changing Annual Revenue Mix
0
100
200
300
400
500
600
1 2 3 4
Operating Expense
Basic Service Revenues
Advanced Service Revenues
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Standardizing and optimizing critical business processes based on eTOM Framework helps cable companies respond to these challenges
TMF eTOM FrameworkeTOM
Provides a common process framework for telecom service providers
Covers Strategy/Infrastructure/Product, Operations, and Enterprise Management processes
Reflects the input and support of telecom service providers around the world
eTOM enables service providers to
Guide the design and development of business processes
Identify and analyze the cost of business processes
Develop a standard approach to business process design
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Vitria is using the eTOM framework as the foundation for its newproduct, Vitria Order Accelerator
Using the eTOM FrameworkVitria Order Accelerator
Orchestrates enhanced workflow management and automated support of key Order processes, including Selling, Order Handling, and Service Activation
Includes 14 pre-defined business process models from the eTOM Fulfillment framework
Areas of focus include:Selling Order Handling Service Configuration and Activation Resource Provisioning
CustomerAnalytics
EnterpriseReporting
ProductRepository
EnterpriseData
Channels
ProspectCustomer
DealerCSR
Party
Business Systems
ServiceProvisioni
ngM
iddl
ewar
e
Provisioning SubscriberManagement
Billing OrderMgmt.
IRD/STB
OperationalDataStore
Email/Mail/Fax
ContactCenter
Internet/Web
Mobile/Wireless
IVR
POS
FutureChannel
Vitr
ia O
rder
Acc
eler
ator
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Why eTOM?
Using the eTOM Framework
CustomerAnalytics
EnterpriseReporting
ProductRepository
EnterpriseData
Channels
ProspectCustomer
DealerCSR
Party
Business Systems
ServiceProvisioni
ng
Mid
dlew
are
Provisioning SubscriberManagement
Billing OrderMgmt.
IRD/STB
OperationalDataStore
Email/Mail/Fax
ContactCenter
Internet/Web
Mobile/Wireless
IVR
POS
FutureChannel
Vitr
ia O
rder
Acc
eler
ator
• eTOM defines processes to improve the efficiency of telecom companies
• eTOM processes provide a standard, holistic view across applications, functions, and departments
• eTOM processes are created by telecom for telecom
•Vitria Business Ware is the platform used to model and automate these processes
•BusinessWare has strong Business Process Management and integration components to facilitate integration
•BusinessWare and Vitria Order Accelerator assemble these processes to create a telecom solution based on the eTOM framework
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UPC
UPC Broadband 8M subscribers in 11 countries~ 6.6M analog cable subscribers (TV)~ 460K telephony subscribers in 6 countries~ 800K broadband internet subscibers~ 140K digital television customers in five countries
Business Vision:"Our vision is to create shareholder value by providing the most comprehensive and highest quality broadband network services for our residential subscribers and to do so at a lower cost with better service than our competitors."
Order Management Approach: Automate processes for the delivery of all servicesDeliver a single platform for country operations
Order Management Solution:Create a provisioning and order management platform to deliver process and integration across all associated applications
UPC Overview
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UPC
Growth through acquisition results in a highly complex IT environment Redundant, non-standard business processes Multiple legacy systems
Triple-Play product strategy (voice, data, video) required modern IT solution
Implemented new BSS/OSS application, named Derby Initial implementations in Netherlands and France in 2000
Business and IT requirements mandated an evolution towards industry standards (eTOM and NGOSS)
Developing process and IT standards to enable greater reuse of IT components across products and geographies
Presenting business case for the broader application of eTOM and NGOSS based on experience with delivery of Flow Through Provisioning in Poland
UPC Background
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UPC
Achieving Efficiencies Thru eTOMOffers an industry standard process framework
easier to develop and restructure critical business processes
Provides a common foundation decouples common business processes from underlying applicationseasier to integrate, enhance, upgrade, and migrate based on future requirements
Facilitates extension of core capabilities/functions/processes Facilitates expansion across geographies
The case for eTOM at UPC
CustomerAnalytics
EnterpriseReporting
ProductRepository
EnterpriseData
Channels
ProspectCustomer
DealerCSR
Party
Business Systems
ServiceProvisioni
ngM
iddl
ewar
e
Provisioning SubscriberManagement
Billing OrderMgmt.
IRD/STB
OperationalDataStore
Email/Mail/Fax
ContactCenter
Internet/Web
Mobile/Wireless
IVR
POS
FutureChannel
Vitr
ia O
rder
Acc
eler
ator
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UPC
Vitria Order Accelerator
eTOM Processes
CB
Os
Customer Order
Service Order
Resource Specification
Execution Plan
Service
VOA Framework
Vitria BusinessWare
cSPIRE
Application Service
Connector
Transformation
WIZARDDesign GoalsImplement a “Service Oriented Architecture” (SOA)Create re-useable ServicesUse VOA as a “Black-box”
Project ImpactIntegrated Order PlatformSingle View of the Order ProcessPlug & Play ReadyReduced time to deployPrototype for future versions
Application Service
Connector
Transformation
Application Service
Connector
Transformation
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UPC
The benefits of using eTOM at UPC PolandReduced order to cash cycle by approximately 20%
Eliminated manual work stepsEliminated manual error correction processesEliminated re-keying of data across multiple systemsAccelerated troubleshooting activities
Developed a scaleable, transportable platform for order managementInstituted common approach, processes and business vocabulary that can be extended and used across multiple UPC business locations
Created an environment for continued business process improvementsReduced effort required for future application upgrades and migrations
Achieved substantial savings on this and related future order management projects
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UPC
Next steps
Extend functionality to support new business processes and services
Extend solution to new geographies
Continue to improve business process monitoring
Support future migrations to next generation BSS applications