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Comarch Telecommunications Business Unit

no 2/2009 (10)

in focus

Mobile Technologies

>> Behind the Scenes of Mobile Products – Smartphone Operating Systems

>> Loyalty Card Killer!

>> Location-Based Services: New Opportunities for Innovation

>> Smartphone – the Best Tool for Cutting Field Service Costs and Increasing Productivity

marginss/e/f – 4pt – 6p

Change the way you plan and operate your

network with comarch next generationnetwork Planning!If you want to discover how to simplify network planning and optimization, automate network operation and reduce OSS system complexity visit ngnp.comarch.com

Editor-in-Chief: Katarzyna GajewskaDTP&Graphics: Jakub MalickiProofreading: Martin JonesPublisher: Comarch SA, Al. Jana Pawła II 39a, 31-864 KrakówTel. +48 12 64 61 000, Fax: +48 12 64 61 100, e-mail: marketing@comarch.plwww.comarch.euPrint: Skleniarz Printing House, ul. J. Lea 118, 31-033 KrakówCirculation: 1 000

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Since 1993, Comarch’s Telecommunications Business Unit has been specializing in designing, implementing and integrating solutions and services for telecommunication operators. Experience gained during this time, along with its knowledge of the latest industry trends, allows the company to flexibly adapt itself to the needs and expectations of every client.

Worldwide Offices:PolandBelgiumGermanyFranceLithuaniaAustriaPanamaRussiaSwitzerlandSlovakiaCzech RepublicUkraineThe United States of AmericaThe United Arab Emirates

In today’s times, we’re all aware

that the world is mobile.

And it’s not only because people carry mobile handsets

and laptops around with them religiously, but rather

mainly due to the outstanding possibilities offered by

existing services, systems, environments, resources and

communities when mobilized. Mobile devices are simply

enablers. More important, is how each and every solution

should be tailored to the mobile device in order to enrich

the end-user experience and provide the right content at

the right time: “Here and Now”, on demand and without

limits. Business models for mobility will be driven by QoS

and AoS of services, as well as by the interoperability of

voice, data, multimedia and payment services. Telco “dumb

pipes” or “smart pipes” network services will support user

communication, interaction and mobility, entertainment and

professional activities.

In this issue of Technology Review we present various

aspects of mobility as it opens new markets and

opportunities emerging from already existing legacy

solutions in telecommunications, as well as NGN and 4G,

which have vast potential for converging and evolving, and

both of which are enriched by mobile access channels.

From Smartphone technologies, through applications

in LBS, Loyalty and Digital Homes, towards the solutions

in telecommunications providing a third dimension to

Service Assurance and Networking, the excellence of

intelligent networks with mobile assets is presented step-

by-step.

At Comarch, we strongly believe that when the right

approach to mobility is adopted, services can evolve

rapidly, systems can be enriched with network intelligence,

self-tuning and self-adaptation; environments can be

simplified to service delivery platforms; resources can be

managed more easily by All-IP technologies; and unified

processes and communities can grow dynamically. All

these factors will enable positive market segmentation

and lead to highly lucrative business openings in the near

future. Join us in our vision and enjoy reading! <<<Comarch SAPosition: Mobile R&D Department Director

Department: Telecommunications

Business Unit

Piotr Madej

Comarch SAPosition: EVP Professional Services

Department: Telecommunications

Business Unit

Paweł Bieryt

Preface < 3

marginss/e/f – 4pt – 6p

technology review [www.comarch.eu]

Complete integration with existing operator order management, billing and even legacy CRM systems

Business process automation helping to optimize and standardize the processes

Coverage of the entire acquire-grow-retain customer lifecycle, with integrated functional modules

Learn more at:crm-for-telecoms.comarch.com

marginss/e/f – 4pt – 6p

IN FOCUS

6. Behind the Scenes of Mobile Products – Smartphone Operating SystemsDespite the global recession, Smartphone sales

surpassed 40 million units in the second quarter

of 2009, according to Gartner. This is a 27 percent

increase from the same period last year, while over-

all mobile phone sales declined 6 percent. What

kind of factors should you take into account when

planning a mobile product? Is the mobile devel-

opment process for mobiles the same as it is for

desktops? Is it really possible to write one appli-

cation that serves all, or at least the majority of all

devices available on the market?

12. Loyalty Card Killer!Currently, there are loyalty programs for almost

every business on the market: retail, finance, airline,

as well as telecommunications. However, the lat-

ter receives the fewest benefits from these types

of loyalty programs. Frequent Flyer Programs offer

tickets as a highly lucrative reward, while retail

companies facilitate quicker points collection. Is

today’s technology able to change the situation,

reap more profits for mobile operators and grant

them tools which are also desired by loyalty pro-

grams in other industries?

15. Location-Based Services: New Opportunities for InnovationLocalization technologies are becoming an increas-

ingly integral part of our lives and helping to improve

the quality of services we use. Some experts claim

that it is a technology powerful enough to become

a leading component of the IT world in the near

future. According to Gartner, the LBS market is set

to grow from $41 million in 2008 to $95.7 million in

2009. This is likely to be a slightly optimistic fore-

cast, yet it is still quite apparent in today’s world

that the number of services using location-based

technology will increase. This article gives a broad

outline of LBS technology, its present and possible

future applications, and discusses the innovation

trends in the area of LBS.

19. Smartphone – the Best Tool for Cutting Field Service Costs and Increasing ProductivityDoes your field service continuously use up more

and more money? Do your customers appear to be

dissatisfied and are the number of “Where is my

tech?” escalations refusing to decrease? There is

a simple solution: buy gadgets, go with the trends

and become green. Your company will not only save

money, but will also be able to increase revenue.

24. Digital Home – a Dream or a Fact?UPnP is the technology of tomorrow that began the

day before yesterday. The main goal of UPnP tech-

nology is to enable the seamless connectivity of

various devices, forming networks in home or cor-

porate environments and enabling a digital home

experience. Due to its design, adding new devices

or programs to the network should be as easy as

plugging a piece of hardware into a PC. The devices

and programs connected familiarize themselves

with the current network setup due to service dis-

covery and advertisement, and immediately config-

ure themselves accordingly, with regard to already

connected devices. In short: UPnP is a framework

for building networked applications.

OPEraTIONaL ExCELLENCE

27. Towards Self-Organizing NetworksThe current mobile market landscape with dropping

revenues per bit and increasing demand for a diversi-

fied service portfolio forces operators to reduce OPEX,

while investing in new technologies and solutions.

Constantly growing multi-technology and multi-vendor

networks become more complex than ever before, and

significant network planning and management effort

is needed to ensure satisfactory end-user experience.

This effort can be minimized with the implementation

of Self-Organizing Networks (SON), which will enable

operators to simplify network operation and extend

their network via plug & play. In Comarch’s view, net-

work management automation is key and is a crucial

factor for investments in next-generation wireless

technologies such as LTE, and supports SON use

cases with its product portfolio.

32. Service assurance: Bridging the Gap between the Traditional Management SilosEach service provider has their own business model.

One may focus on being the technological leader

delivering the highest possible quality to customers,

while others may find their niche in simple and inex-

pensive services available for a flat rate. Yet they all

face the same problem: the customer will leave if the

services do not work. Throughout the years they have

been mitigating this potential threat with a number of

different fault management tools, which keep the net-

work in a good state of operation. However, business

models have changed and this no longer appears

possible. Today, even simple services have become

dependent on several different platforms, which are

often delivered by business partners. Service provid-

ers must bridge the gap between old tools and new

models. They must shift their operations to the next

level: Service Assurance.

Table of Contents < 5

35. Telco on Demand? Can a telecom provider outsource everything besides the marketing department?Software-as-a-Service (SaaS) is a model of soft-

ware deployment whereby a provider licenses an

application to customers for use as a service on

demand. The SaaS model has become one of the

most popular trends in today’s IT environment.

Software vendors are starting to offer their soft-

ware via the SaaS model for many industries. But

is SaaS already mainstream in telecommunica-

tions? How far can a telecom provider go into SaaS?

Are there any IT or network areas that cannot be

outsourced?

40. Self Tuning OSSAn economic slowdown always pushes market

players to reduce costs and pursue new revenue

sources, which is a more effective strategy than sim-

ply increasing the effort applied to employ the tenet

of efficiency improvements as a continuos cycle. The

article than simply increasing the amount of effot

applied is to employ the tenet of efficiency improve-

ments as a continuous cycle. The article describes

the concept of the OSS system which should not

only promise to add value to CSP, but also contain

self-assessment and self-tuning mechanisms to

measure the system performance in business ori-

ented KPIs and improve performance. See how the

concept of a continuous improvement cycle imple-

mented in the Next Generation Service Management

solution can help CSPs maintain profitability, while

under pressure to reduce time-to-market for new

services. Find out about customer service compo-

sition optimization, as it relates to the notion of Self-

Organizing Networks.

nr 2/2009 (10)

marginss/e/f – 4pt – 6p

Behind the Scenes of Mobile ProductsSmartphone Operating Systems

6 > In Focus

technology review [www.comarch.eu]

marginss/e/f – 4pt – 6p

for one OS), or even choosing a web browser (two main

browsers with around a 90 percent user share). This is

normal, however, since competition drives quality and

innovation, and since users can select what fits their

needs best. On the other hand every possibility must

be researched, and it is far more difficult to make your

product accessible to the majority of users.

Symbian

In 1998, Ericsson, Nokia, Motorola, and Psion founded

a company called Symbian Ltd. “to exploit the con-

vergence between PDAs and mobile phones”. Psion

created the EPOC16 operating system for its pocket

computers, Psion Organisers, in the late 1980s. Part-

nership between the leading phone manufacturers

was most likely to have been driven by fear of losing

the smartphone market to PDA companies. Psion’s

EPOC32 operating system, developed in the mid 1990s,

was primarily used in the Ericsson R380 (November

2000). Later, EPOC32 was renamed Symbian OS, and

was utilized in the Nokia 9210 and Nokia 7650 (2001).

Symbian Ltd’s shareholders have changed over

time (e.g. Siemens, Samsung, Panasonic, Sony Eric-

sson), while the company licensed the Symbian OS

to even more manufacturers (e.g. LG, Arima, Fujitsu,

Lenovo, BenQ, Sharp). On Symbian Ltd’s 10th anniver-

sary Nokia announced that they intended to acquire

and transform it into a non-profit foundation. The Sym-

bian Foundation was founded by Nokia, Sony Ericsson,

NTT DoCoMo, Texas Instruments, Vodafone, Samsung,

ST Ericsson and AT&T hoping to “provide royalty-free

software and accelerate innovation”. Comarch also

contributes to the development of Symbian through

its membership in the Symbian Foundation, sharing

the vision of creating an open and compelling mobile

software platform.

The Symbian Foundation will publish the Symbian

platform under the open source Eclipse Public License

by 2010. This is a fantastic opportunity not only for all

developers interested in writing applications for Sym-

bian and looking to explore the source code while

uncovering Symbian OS secrets, but also for device

manufacturers, who can now equip their own devices

with Symbian OS free of charge. This will likely result

in an easier, faster and more cost-effective creation

of Symbian applications.

Currently, Symbian is the leading smartphone

OS, and with the support of nearly 150 members of

the foundation, including mobile network operators,

semiconductor vendors, software companies, and

phone manufacturers, it probably will be for some

time to come. Although its market share has recently

declined in favor of RIM, iPhone and Android, its posi-

tion remains very strong.

Despite the fact that Symbian is the leading global

smartphone OS, this is quite different in the North Amer-

ica region, likely due to Nokia’s (smaller) market share.

When it comes to application development on the

Symbian platform, it is important to note that it enables

developers to implement almost anything imaginable.

The only limitation is due to the capability model, which

restricts some APIs crucial for maintaining the plat-

form’s integrity. However, before beginning to imple-

ment your solution, you should be aware that the

development of the Symbian system can consume

a lot of time. Symbian’s dialect of the C++ program-

ming language is not particularly straightforward and

experienced developers are necessary, in order to

meet the deadlines and obtain high-quality software.

Nevertheless, when completed, the application is fast,

smooth, user friendly and satisfies even the most fas-

tidious customers.

rIM BlackBerry

The BlackBerry Operating System is produced by

Research In Motion Limited. The first BlackBerry device

was released in 2002 and since then has gained pop-

abstract

Despite the global recession, Smartphone sales sur-

passed 40 million units in the second quarter of 2009,

according to Gartner, which is a 27 percent increase

from the same period last year. In comparison, overall

mobile phone sales declined 6 percent. When this is

considered together with the rapidly growing functional-

ity of these devices (fast CPU, GPS, accelerometer etc.),

and the mobile application stores boom, it comes as no

surprise that more and more companies decide to build

their products for the market, or add mobile functional-

ity to already existing products. Due to the number of

Operating Systems that can be found in smartphones,

the decision regarding which to choose can be crucial.

What kind of factors should you take into account when

planning a mobile product? Is the mobile development

process for mobiles the same as it is for desktops? Is

it really possible to write one application that serves

all, or at least the majority of the devices available on

the market? These are questions that service provid-

ers new to the mobile world may not have answers for.

In this article we try to answer them and give a broad

outline of today’s mobile software landscape.

Key Players

Choosing a Smartphone Operating System is much more

difficult than choosing an OS for a PC (around 90 percent

nr 2/2009 (10)

In Focus < 7

Figure 1. The market share in Q2, 2009 according to Gartner

Please note that these results are based on the number of units sold in Q2, and are not a true representation of

the number of smartphones currently operated by users (a larger share for Symbian OS and Windows Mobile

at the expense of iPhone and Android).

Symbian 51%RIM BlackBerry 19%

iPhoneOS 13%Windows Mobile 9%

Linux 5%

Android 2%

Other 1%

marginss/e/f – 4pt – 6p

by a third party. Application distribution is also far

from satisfactory – the only methods for shipping

are through Apple. However, since the phone itself is

in high demand in the United States and is gaining in

popularity in other parts of the world, it is wise to also

provide an iPhone version of your application.

Windows Mobile

Windows Mobile is Microsoft’s operating system for

smartphones, PDAs, and other devices. The first ver-

sion was released in 2000. Due to Microsoft’s domi-

nant position on the market for operating systems for

PC, office suites and web browsers, many believed

that the impending success of Windows Mobile is

just a matter of time. Indeed, the option to easily

exchange and use documents and emails with a PC

is still a major selling point of the OS.

The most plausible reason for the less sizeable suc-

cess of the Mobile version in comparison to desktop

Windows is likely related to the unwillingness of lead-

ing smartphone manufacturers to integrate it into the

majority of their devices – Windows Mobile is pres-

ent mainly in HTC phones. In 2009, Microsoft signed

an agreement with LG Electronic to license Windows

Mobile. However, with the attention of HTC focused pri-

marily on other platforms (mainly Android), it may not

halt the trend of a decreasing market share.

Following a common theme, Windows Mobile mar-

ket share is also more extensive in North America than

in to other regions.

Development for Windows Mobile-based devices

is similar to development for standard Windows. Third

party developers have several options available to

them when deploying a mobile application, includ-

ing writing a native code with Visual C++, which pro-

vides more comprehensive APIs, or writing a managed

code that works with the .NET Compact Framework,

which is actually a subset of the .NET Framework and

hence shares numerous components with software

development on desktop clients. The resemblance

to desktop Windows and the .NET Compact Frame-

work makes Windows Mobile particularly suitable for

business application implementation, although other

applications can also be created.

ularity mainly in North America. From its very incep-

tion, the key feature of BlackBerry was push email (the

possibility to receive email directly), which attracted

real interest from various companies.

Although BlackBerry has recently increased its

market share, the alliance between Nokia and Micro-

soft announced in August, may bring it to a halt. The

purpose of the agreement is to bring business soft-

ware to smartphones and (officially) pose high-end

competition to companies such as BlackBerry. Nokia

smartphones containing both Microsoft Office and

email programs are likely to be the key development

born from this collaboration.

The usage of Java language makes development for

BlackBerry relatively easy, for instance when compared

to Symbian. It is also easier to find developers who can

start developing for the platform without additional

problems. The range of APIs available is another advan-

tage of the BlackBerry platform, though it may not be as

comprehensive when compared to the Symbian case.

However, with popularity limited to North America this

renders it suitable only for selected solutions.

iPhone OS

The first iPhone was released by Apple Inc. in June 2007.

onsidering the recency of its innovation, the iPhone’s

immense popularity is impressive, and is only continuing

to grow. Although the contribution to its success made

by marketing is still being debated, the iPhone undoubt-

edly has vast influence on all the other platforms.

Similar to the BlackBerry, the iPhone’s popularity is

far greater in North America than in other regions.

Currently, there are only 3 iPhone devices out on

the market: Original, 3G and 3GS, which is potentially

problematic, with regard to wider adoption of the OS.

Unfortunately, developing for the iPhone is not as

easy as using it. Objective C, the language used in

iPhone development is not widely known, and is gen-

erally limited to Apple-related developers. The number

of APIs available is also underwhelming, and there

are numerous features that cannot be implemented

Linux

No royalties or licensing fees and the ability to

freely change virtually anything were likely the main

motives behind the decision of many smartphone

manufacturers to use the Linux kernel as the base for

their own platforms. Platforms produced by Motorola

and DoCoMo gained the most popularity on the Asian

market. Nokia and Google also invested in Linux-based

platforms: Maemo and Android respectively.

The variety of different vendors’ Linux-based

platforms, highlights the fact that many sides are

interested in its growth, yet the lack of compatibil-

ity between them currently makes it impossible to

treat “Mobile Linux” as competition to the platforms

described above. Industry standards or de-facto stan-

dards can alter the situation. An additional opportunity

for Linux on smartphones is the scope for single plat-

form success. These days, Android and Maemo look

the most promising. In fact, media reports surface

nearly every six months, claiming that “undisclosed

Nokia sources” reveal that the company will, in fact,

abandon Symbian in favor of Linux.

android

Following the release of Apple’s iPhone in 2007, many

expected that internet giant Google would release its

own gPhone. Eventually, this turned out not to be the

case, but in November 2007 Google did announce the

early version of the smartphone operating system

‘Android’. The congregation of companies officially

interested in Androids’ success is the Open Handset

Alliance, which consists of mobile operators, software

companies, semiconductor companies and handset

manufacturers (e.g. HTC, LG, Motorola, Samsung Elec-

tronics, Sony Ericsson). The OS is developed as open

source on the Apache License, and is based on the

Linux kernel on the GPL license.

The first Android phone hit the market in October

2008. It was made by HTC and sold as HTC Dream,

but was also branded as T-Mobile G1, Era G1 and Rog-

technology review [www.comarch.eu]

8 > In Focus

marginss/e/f – 4pt – 6p

ers Dream. Android phones did not sell as rapidly as

the iPhone, but this may change with the arrival of

additional phones from alternative manufacturers. For

instance, Google expects 18 Android phones by the end

of the year from 8 manufacturers. Currently, the main

selling point of the OS is the possibility for integration

with Google services, such as GMail and GoogleMaps.

Google provides developers with Java API powerful

enough to satisfy most needs and implement various

types of solutions. Moreover, advanced developers

may implement the native C application and deploy

it within the phone, making it possible to use virtu-

ally all of the telephone’s functions. The development

for Android is not very difficult and finding developers

should not be an issue. Although there aren’t many

devices on the market yet, Android’s popularity is

growing and platform should certainly be considered

when planning a new product.

Maemo

Maemo is a Linux-based OS for mobile devices devel-

oped by Nokia. The first device, Nokia 770, was released

in November 2005, and was classified as an “Internet

Tablet”. Due to the lack of GSM telephony hardware

and a fairly large touchscreen, it was far more effec-

tive as a tool for web browsing than the majority of

alternative phone screens. Various voices claimed that

the device was not intended to challenge Symbian

OS Nokia devices. Finally however, in August of this

year Nokia announced the first Maemo phone – N900,

preceeded by rumors that Maemo will be chosen by

Nokia for their smartphones.

The major advantage of the Maemo platform is that

its development is similar to standard Linux, thereby

making it attractive to Linux enthusiasts, who want to

extend their product range to mobile devices. Due to the

enormous capability of the platform, it is hard to imagine

an application which cannot be implemented to Maemo.

Currently, there is only one smartphone available on

the market, since the previous Maemo-based devices

released by Nokia were not equipped with telephony

features. However, the platform is extremely powerful

and it is likely that it will become more popular in the

future. Thus, it is crucial to take this into account when

planning a long-term project.

Palm webOS

Another Linux-based platform that could become

a major player in the future is the Palm webOS.

Palm Inc., a company with vast experience in the

PDA market, aspires to become the “iPhone killer” and

repeat its success. The first stores selling the device

with the OS (Palm Pre) witnessed long lines, while

favorable reviews in the press highlight its potential.

However, only time will tell.

There is an SKD for WebOS and developers can

consider writing code for the device. However, due to

its current small market share, this device is a less

attractive target for mobile applications, unless the

device is shipped to your customers together with

the software.

Hardware

Smartphones tend to utilize the most advanced hard-

ware currently available on the mobile phone market,

although they often differ from one another. In fact,

significant differences may exist even with devices

based on a single operating system. As a result, the

product developer should know what hardware is

essential for the product, and which particular smart-

phones utilize it.

For some products, CPU speed (e.g. for encryption)

might be key, while others may require advanced ani-

mation effects and hardware graphics acceleration.

The majority of smartphones have a built-in cam-

era, with differences in resolution and the time the

device requires for saving a picture. Many smartphone

products use a camera to obtain information from the

environment or for scanning barcodes.

Today, one can find smartphones with various types

of hardware, which can be used to connect to other

devices. As a result, the smartphone can remotely con-

trol other devices, as well as exchange data.

A WiFi connection enables access to fast, cheap,

and unlimited Internet, and facilitates the operation

of more mobile web scenarios.

An accelerometer and magnetometer are used

to trace the actual motion of the phone, and allow

users to interact with the application in a far more

natural manner.

GPS and information from the GSM network can be

used to retrieve information regarding where a phone

is and enables creating location-based products, such

as Google Latitude or Comarch Mobiloc.

In addition, user interface hardware varies with

different smartphones, although following recent

developments (since iPhone’s success) it appears

that the touchscreen may now be the standard. For

some products, miniature QWERTY keyboards may

be especially useful, while wheels can be used for

certain additional buttons, to improve user interac-

tion with the product.

In addition, the Asian market currently enjoys

smartphones with a number of unusual hardware

features, including ones which alter the phone’s scent,

or check the intoxication level of the user.

Smartphones also differ in screen size. They vary

from fairly small monochromatic versions found in the

older devices to those which are (surprisingly) quite

sizeable: 16 million colors and even 800 x 480 pixels,

such as on the Nokia N900. Handling such a variety

of screen resolutions is not always an easy task from

the programmer’s point of view. Complicating the situ-

ation further, is the orientation, which in some models

changes on the fly, depending on the physical posi-

tion of the device or the location of the keyboard slider.

Additionally, some telephones, such as the Nokia E90

Communicator, have more than one display.

restrictions

One of the biggest traps waiting for those with a lack

of experience in developing mobile products is likely

to be the number of restrictions. Many think that the

smartphone OS will grant them access to everything,

similar to that of an OS on a regular PC.

Symbian includes the Symbian Signed program,

through which a product must go in order to obtain

access to certain phone capabilities. To pass the

program, one has to guarantee that the product has

passed a number of tests and must also pay for the

signing process. There are also capabilities that require

the device manufacturer’s approval, which might be

both difficult and extremely time consuming to achieve.

The official reason for Symbian Signed’s existence is

to prevent the installation of malicious software on

the phone.

In order to develop applications for the BlackBerry

device and use certain features noted as “sensetive”

a fee of $20 is required for signing keys and registering

on the RIM website. This process is used to track the

usage of these sensitive APIs, and does not require

any testing or the RIM’s approval.

Development for the iPhone was originally restricted

to Apple Inc. and several other companies selected

nr 2/2009 (10)

In Focus < 9

marginss/e/f – 4pt – 6p

uses its own dialect in addition to C++ that must be

understood in order to write the most advanced and

efficient programs.

BlackBerry uses two versions of Java, Java

Micro Edition and its own Java API.

Apple decided to create a language entitled Objec-

tive C, also incorporating it into the iPhone. Generally

speaking, this language is only popular within Apple’s

own ecosystem, and there are few developers with

expertise in its field. Although it is worth noting that

its popularity has been growing with the success of

the iPhone.

Android development can be conducted using its

own version of Java.

One to rule them all

Excluding those that are native, some smartphone

OS’s enable writing programs in alternative languages.

Such programming languages are less efficient and

grant more restricted phone access. However, they

are also are more straightforward, and, if supported

on more than one platform, enable users to write a sin-

gle program (single code) for more than one operat-

by Apple. Currently however, there is a public SDK

(Software Development Kit), as well as the option to

create an application for the iPhone after purchas-

ing a Macintosh computer and paying for an iPhone

Development Program membership ($99). It is worth

noting that even this public SDK lacks the API for cer-

tain features only available to Apple.

One of Android’s design bases is that “All Apps are

Created Equal”. The notion is that there should be no

difference in the possibilities available for applications

preinstalled on the phone by the manufacturer and

all 3rd party applications.

Programming Languages

Knowing which programming language is native to a

particular platform is crucial, as this is the key deter-

minant of product development cost and mainte-

nance. The more popular a language, the easier it

is to find developers. The less complicated it is, the

more optimum the speed at which the product can

be developed.

Symbian’s native development is carried out in

C++, which is a popular language. However, Symbian

ing system. Typically, a non-native language can be

useful for relatively simple products that should work

on as many types of devices as possible.

Java Micro Edition (JME) is the language designed

to operate on all low resource devices, and works on

most phones, not just smartphones. However, the

more recently created platforms (iPhone, Android)

lack its native support. Furthermore, various bugs

exist within different implementations of JME on dif-

ferent phones, and the advantages of writing one

code for several platforms are diminished, due to the

necessity of solving a variety of issues specific to

each phone model.

Following Nokia’s acquisition of Trolltech (the com-

pany that developed the Qt Framework) in 2008, there

has been an ongoing effort to provide Qt on Sym-

bian and Maemo phones. When this is completed,

an option to utilize QT for writing a single code for

Symbian, Maemo, desktop Windows, Linux, and Mac

should exist.

The Internet is also a common environment for

all mobile operating systems. There is no access to

smartphone capabilities from a web browser, but for

certain products, for which most logic can be shifted

to the server side, mobile web is also a possibility. For

technology review [www.comarch.eu]

10 > In Focus

marginss/e/f – 4pt – 6p

advanced products there are also web-related technol-

ogies, such as Flash Lite and Mobile Web Widgets.

application Development

When compared to desktop, mobile applications are

far less portable and usually must be written sepa-

rately for all required platforms, as there is no uni-

versal programming language for all mobile devices.

Java Micro edition is sometimes viewed as a univer-

sal language (although not supported on certain plat-

forms), but using it frequently leads to more problems

than solutions. It is not the native language for most

devices, meaning that the application almost never

appears to be native. Moreover, compared to a native,

usually lower level programming language, Java appli-

cations offer inferior performance and are less user-

friendly, which may result in customer reluctance to

use them. An additional disadvantage of Java is the

lack of APIs, which means that only certain features

can be implemented. Thus, inexperienced develop-

ers may not even realize that a feature they plan to

acquire is not actually feasible in Java prior to start-

ing development. This often leads to bitter disappoint-

ment and, what is more important, financial losses.

However, it should be said that some, not very com-

plex applications can be successfully implemented

utilizing Java ME.

When dealing with moblie software, one should

also be aware of the various differences between

devices based on the same platform. Due to the binary

breaks between different versions of the same plat-

form, APIs availability, screen resolutions and hardware

configurations, it is impossible to write an all-in-one

application even on a particular platform, unless it is a

fairly simplistic piece of software. However, going into

specific details of such issues is outside the scope of

this article. Thus if you do encounter similar problems

and do not have experienced staff, it is advisable to

use the services of an experienced company to help

you complete your project.

The required effort is not the same for all plat-

forms, and varies strongly depending on the type

of application to be implemented. Some features

may also be impossible to implement for cer-

tain devices, as described above. A general rule of

thumb is, the lower the level of programming lan-

guage, the longer the development. Therefore, creat-

ing a native Symbian or Linux Maemo application will

usually be more time-consuming than implement-

ing one for Android, BlackBerry or Windows, provid-

ing that you can use the .NET Compact Framework.

Comarch SAPosition: Senior Software Analyst /

R&D Manager

Department: Telecommunications

Professional Services

Info: Grzegorz leads the R&D unit, the main

goal of which is exploring new mobile-rela-

ted technologies, in addition to searching

for new opportunities on the mobile market.

Comarch SAPosition: Senior Software Developer

Department: Telecommunications

Business Unit

Info: Piotr has been developing for Mobile

platforms (mostly Symbian) for 4 years.

Currently located in Helsinki, he supports

one of Comarch’s key clients, and closely

follows changes in the mobile world from

an expert perspective.

Grzegorz Wąchocki

Piotr Janas

However, the iPhone is a completely different story as

the platform is reasonably closed and the first ques-

tion should always be whether the functionality can

be implemented. Following this, if you are certain of

the feasibility and have experienced developers, the

implementation should not take longer than it does

for Android or BlackBerry.

Summary

Without a doubt, choosing a mobile operating system

is case specific – there is no single platform ideal for

every product, and you can make the most informed

decision simply by choosing a platform that best fits

your particular situation.

Usually, the most important factor is popularity of

the platform – the larger the number of devices, the

larger the market for the product. It is important to take

into account the fact that popularity varies by region

(especially North America), and can change drastically

over the product development period (such as in the

recent case of the iPhone). Popularity can rarely be

ignored, if the product can work on devices bought

especially to run it.

Most products have hardware without which they

simply cannot function. In fact, some products can

operate significantly better, using specific types of

hardware. Access to a phone’s hardware is enabled

for programmers in programming languages that have

a major impact on the cost of product development

and its maintenance. It is also important to remem-

ber that there are restrictions that can make some

products impossible, or even unprofitable to create

for a particular operating system.

Finally, creating a comprehensive mobile applica-

tion is not an easy task and some may try to avoid

it altogether. However, the mobile market is growing

quickly, and ignoring this fact is not wise. Thus, if you

do not have sufficient experience, it is recommended

that you select a company that will aid you in repre-

senting yourself in the mobile world. It is important to

note that creating a high-quality multiplatform mobile

service is not impossible and there are people who

can do it for you. <<<

nr 2/2009 (10)

In Focus < 11

marginss/e/f – 4pt – 6p

Loyalty Card Killer!

technology review [www.comarch.eu]

12 > In Focus

marginss/e/f – 4pt – 6p

These days, loyalty programs are

available for almost every busi-

ness on the market: retail, finance, airline, as well as

telecommunications. However, the telco sector like-

ly receives the fewest benefits from these types of

programs. Frequent Flyer Programs offer tickets as

a highly lucrative reward and retail companies facilitate

quicker points collection. Is today’s technology able to

change this situation to reap more profits for mobile

operators and grant them tools that are also desired

by loyalty programs in other industries?

Evolving analytics

One important benefit for retailers that utilize loyalty

programs is the possibility for tracking customer pur-

chases, something almost impossible to achieve with-

out their use. Without a loyalty program, knowledge

about customer behavior is very limited. However,

this problem doesn’t exist in the telecommunications

arena, since customers are identified by SIM cards,

with all their data available for analysis. What’s more,

a loyalty card could be easily lost or forgotten, while

most people usually keep their mobile phone in their

pocket. Usage of the mobile phone as a loyalty iden-

tifier therefore seems to be the perfect solution. The

only problem that needs to be resolved relates to

recognition of the phone by the retailer’s POS sys-

tem. To resolve this, NFC (Near Field Communication)

technology can be employed. Based on well-known

RFID technology, it can be used for activities includ-

ing payments, ticketing, loyalty program operations,

lotteries, entertainment and marketing.

The use of mobile phones as a program member

identifier, as well as payment device could flip the

situation with customer recognition completely on its

head. Every transaction made using an NFC-equipped

mobile will contain the customer ID in the form of an

NFC tag, so, theoretically, a loyalty program would

not even be required to analyze customer behavior.

Because the NFC tag will be homogenous for all cus-

tomer transactions regardless of where they are con-

ducted, companies will be able to exchange this data.

The current legal regulations are most likely to be irrel-

evant to this type of situation: transferred data does

not have to contain personal information. Companies

will be able to identify a customer by his tag, analyze

his activities, and direct a fully customized offer dur-

ing his next visit and ensuing use of his mobile phone.

No personal data collection is required for any of the

coalition partners. NFC and mobile phone payments

can influence promotions, as well as offer selection;

companies with more thorough knowledge of a cus-

tomer’s spending power, habits, hobbies, as well as

periodic and one-off activities, will be more compre-

hensively equipped to target their promotions, select

better selling products and will have the capacity to

more precisely adjust their discounts and prices.

Even though in this example customer identifica-

tion is possible without loyalty program membership,

there are two main factors guaranteeing that loyalty

programs will be prominent on the market for some

time. The first is the use of the NFC device itself. Not

every transaction will be paid using a mobile, as in

today’s world not all customers use their credit cards.

The percentage of people willing to use such new solu-

tions varies between different countries. The second

factor is the appeal of the loyalty program to custom-

ers and its impact on sales. It is crucial for companies

operating in highly competitive markets to search for

and utilize every option available for attracting cus-

tomer attention.

Evolving CrM activities

Customized offer presentation directed at the cus-

tomer could also evolve with NFC use. Commonly used

channels such as emails, direct mailing and SMS don’t

provide the required flexibility, so the offer could be

presented, but quickly forgotten. NFC allows for more

sophisticated activities – uploaded during a visit at

the point of sale, the offer could reveal its content at

a certain point in time, or could even offer periodic

reminders for a certain promotion. Transferred data

can contain virtual coupons, lists of the promoted

products with points and discounts, or links to media

content. Calendar entries can automatically inform of

company events, commencement of any promotions,

or offer notifications of any points/coupons expiry

dates. NFC can be also used for collecting customer

feedback. Uploaded questionnaires can be completed

by customers at a time most convenient for them, and

promoted with additional points or discounts.

Coupon promotions are particularly popular on

certain more fully developed markets. Generally, com-

panies use paper coupons, utilizing such distribution

channels as newspapers or direct mail. This limits

the efficiency of such promotions, since customers

often lose their coupons or simply forget about them.

Because coupon implementation is easier now than

ever before, NFC can serve to improve these activi-

ties. The coupon tag will be automatically loaded to

the phone during the transaction and the appropriate

loyalty application will take over displaying the cou-

pon offer to the customer. To use the coupon you only

need to fulfill the coupon conditions, and select the

coupon from the phone menu prior to the transaction.

Following NFC customer identification, all coupon-re-

lated operations can be performed automatically by

the POS, and loyalty systems, discounts or additional

nr 2/2009 (10)

In Focus < 13

marginss/e/f – 4pt – 6p

points can be granted. For a fully interactive solution,

additional customer-facing displays of the POS sys-

tems can also be used, and these are able to present

all coupons and offers that the customer is entitled to.

The coupons will also be transferable between phones,

since sellers generally do not have a preference as to

which customer actually uses the coupon, focusing

instead on the additional profit generated.

Of course NFC also has some limitations. With the

bandwidth limited to 424 kbit/s, it is impossible to

send large volumes of marketing information over

a short connection period. NFC should then be used

as the first point of offer presentation, with customers

receiving more detailed information and audio-video

content via an Internet connection.

Evolving Market

The revolution could also take place in our wallets, as

mobile phones containing built-in NFC technology can

be recognized by numerous different loyalty programs.

This should eliminate loyalty cards from the market,

with their only remaining presence being on the opera-

tor’s company logo on the phone display background.

Joining a new loyalty program will be a very simple

process as well, requiring only minimal application

installation, which can also be sent by a NFC device

or downloaded from the Internet. The installed appli-

cation will primarily collect registration data and take

care of appropriate presentation of the marketing offer,

as well as coupon management.

Like any other type of technology NFC can also

be used for entertainment, which generates profit.

An example of this potential usage is the POS lot-

teries. During the transaction, the loyalty system is

able to select a prize for the customer. This could

be a gift, additional points or even a discount. If the

customer wins, the relevant notification is displayed

on his phone. This lottery concept is already present

in some loyalty systems (a good example would be

Comarch Loyalty Management – CLM), but there are

numerous cases where the necessary device at the

POS (which would inform the customer of the lottery

and the win) is not available. Here, a mobile phone can

act as an additional marketing canvas.

There are also various potential benefits for telco

companies. The first of these is based on basic human

nature. With the increasing role of mobile phones and

the number of services they provide, people are less

eager to switch their phone and the operator. This could

have an impact on the loyalty aspect of mobile compa-

nies, without the need to operate a single loyalty pro-

gram. There are a number of other possibilities as well.

One of them is the usage of NFC-enabled phones as

top up collectors. During cash transactions, there could

be an option for taking mobile top up in exchange for

relinquishing the change.

Summary

As it appears, Near Field Communication technology

can evolve into a highly potent marketing tool for loy-

alty program operators. With the use of NFC, compa-

nies could reap double the rewards. Directing expertly

targeted offers to the relevant customers will increase

sales, and will also bring about a reduction in costs

due to the now extinct requirement for producing

advertising and promotional materials in paper format.

In addition, customers can appreciate additional ser-

vices, faster payments and simplified usage. Further-

more, telecommunication companies can still claim

their share, even if their loyalty programs do not benefit

directly from NFC solutions. Besides, they own a tool

which would most likely bring about a radical change

in loyalty operations in other industries.

An obstacle to the common use of this solution is the

currently limited number of NFC-ready phones, and the

even smaller availability of NFC receivers at the POS. But

the situation is changing, and the prices of the devices

are decreasing successively. According to a report pro-

duced by the UK-based company Juniper Research, NFC

mobile payments will exceed $30 billion in 2012, whilst

the forecast for 2009 is currently at $8 billion*. Also, the

first loyalty programs utilizing NFC technology are already

on the market. A good example is Italian fashion house

Miroglio, which commenced operations this year. <<<

Comarch SAPosition: Product Manager

Department: Business Development Center

Info: Tomasz is responsible for selection,

development and promotion of applications

from the CRM and customer loyalty domain.

Tomasz Dudek

Dictionary

NFC Near Field Communication: a short-range

high frequency wireless communication

technology, enabling the exchange of

data between devices over a very short

distance.

RFID radio-frequency identification: the use of an

object (typically referred to as an RFID tag)

applied to or incorporated into a product,

animal, or person for the purpose of identi-

fication and tracking using radio waves.

* from the “NFC Mobile Payments & Marketing Opportuni-ties: Forecasts & Analysis 2009 – 2014” report by Juniper Research

technology review [www.comarch.eu]

14 > In Focus

marginss/e/f – 4pt – 6p

Location-Based ServicesNew Opportunities for Innovation

Localization technologies are increasingly becoming an integral part

of our lives and help improve the quality of the services

we use. Some claim that this technology is powerful

enough to become a leading component of the infor-

mation technology world in the near future. According to

Gartner, the LBS market is set to grow from $41 million

in 2008 to $95.7 million in 2009 [2]. Though this may

be a slightly optimistic forecast, it is quite apparent in

today’s world that the number of services using loca-

tion-based technology will increase. However, it is dif-

ficult to say what form future LBS applications will take

and what steps should be followed in order to create

a user-friendly, fully localization-enabled and compre-

hensive functionality. This article gives a broad outline

of LBS technology, its present and possible future ap-

plications, and discusses LBS innovation trends.

What is a Location-Based Service?

The Global Positioning System consists of satellites

orbiting the Earth, control and monitoring stations

positioned on Earth itself, and GPS receivers owned

by users. GPS satellites broadcast signals from space

that are used by GPS receivers to provide a three-di-

mensional location.

nr 2/2009 (10)

In Focus < 15

the device is located. The accuracy of the location may

then be improved by combining the cell-id with a tim-

ing advance value, which is an estimation of the RTT

(Round-trip delay time) between base stations and the

terminal. The estimation is then used to determine the

distance between both parties. GPS on the other hand,

is a satellite-based system, with 24 satellites broad-

casting location data. A GPS receiver processes the

signals received from several satellites and calculates

its location basing on the time differences between

those signals. The main disadvantages of GPS location

are the extended time to first fix (TTFF) and poor indoor

coverage. Thus, in order to improve the efficiency of the

system a new technology called “Assisted GPS” was

introduced. This approach combines GPS technology

with various methods of determining position using

cellular network information. In addition to the men-

tioned outdoor positioning systems, indoor types exist

as well. The main difference between them is the target

area. The indoor positioning systems focus on closed

areas. Such systems are mostly based on monitoring

the signal strength characteristics.

Current applications

Today, LBS products are employed within numerous

domains, ranging from mass-market consumers, cus-

tomers in specialties applications, and business cli-

ents, in addition to being used in industrial and corpo-

rate environments, where a vast number of objects and

inventory must be identified and tracked on a map.

Most of all LBS-related demands originate from

mass-market consumers. The majority of their

requests are related to location and navigation que-

ries, including yellow pages listings and business

descriptions in a given geographical area. In fact, all

types of activities that take location into account are

also popular, such as detailed maps and directions,

traffic condition alerts and information regarding ser-

vices such as gas or food. Sports-related applications,

such as running distance or calorie counters, using

which one can track the path traveled or calculate

overall distance, speed, and so on, are also popular

among mass-market consumers. Another group is IM

applications for mobile phones, which enable locat-

ing and chatting with friends who are nearby. Today,

countless standard IM systems add this feature to

their offer. Location-based games in which players

must visit different parts of the city in order to retrieve

information about other users or further game direc-

tions are another example.

Certain multimedia data can also improve location-

aware services. Users prefer listening to audio directions,

rather than reading maps about their current location.

However, not only data-related directions alone may be

of interest in this case. For instance, if someone is rid-

ing a bicycle and using a navigation application, in addi-

tion to receiving directions, that person may also like to

listen to the sounds of the surrounding environment,

such as the trickle of rushing water when approach-

ing a mountain stream. It is also possible to add three

dimensional data, such as models of buildings to a flat

map, or including touch user interface support in order

to increase user experience [1].

Niche consumer applications target limited areas

of the market. These generally tend to be slightly more

sophisticated services and devices tailored for the

most wealthy. For example, golf carts equipped with

computers providing information such as golf course

A location-based service (LBS) is defined by the

Open Geospatial Consortium as a service which deliv-

ers information about a location to people who are

using wireless, position-aware devices, such as cell

phones and PDAs [8]. The LBS can also utilize alterna-

tive information related to users and their devices such

as account context information, user location history

or even personal preferences, in order to improve the

quality of the application and user experience.

Location-based services have a long history. Since

the 1970s, the U.S. Department of Defense has been

operating the global positioning system (GPS), a sat-

ellite-based infrastructure used to determine the posi-

tion of any object on Earth. Initially, GPS was intended

for military use only. However, in the 1980s, the U.S.

government chose to make it available worldwide

to a variety of other industries. Since then, a num-

ber of applications have used location data in order

to enhance their products and services. However,

the boost of LBS in the 1990s was not driven by GPS

technology, but rather by another type of location

technology gaining popularity at that time. Mobile

network operators started using their radio station

infrastructure to obtain the location of a device. This

technology played an essential role in creating the

market for location-based services.

Today there are even more ways of obtaining loca-

tion data (Table 1) using a mobile device. All of these

have pros and cons, and are suitable for different

types of applications.

In cellular networks, the determination of a loca-

tion is carried out through proximity sensing, where

the position of a device is determined using the coor-

dinates of the base stations. Generally speaking, the

mobile network possesses the area number, in which

technology review [www.comarch.eu]

16 > In Focus

Type Methodology Pros Cons Industry application

Cell Identifier (Cell ID) Base station uses radio

frequency signals to

track mobile device

Relatively widespread

infrastructure

Hard to pin down user’s

exact location to within a few

meters

Wireless network providers, police, banking,

government, security, welfare

Global Positioning System

(GPS)

24-satellite network Outdoor precision within

five-meter range

Expensive.

User device must be in direct

line of sight.

Device needs special embed-

ded chips.

Military applications, commercial applica-

tions, such as real estate security, police (not

as successful in consumer settings)

Assisted Global Position-

ing System (AGPS)

GPS enhancement.

Continuously locates

device and coordinates

data flow, unlike GPS.

No “cold starts”

Faster fix on location

Expensive.

User device must be in direct

sight.

Device needs special embed-

ded chips.

Military applications, commercial applica-

tions, such as real estate security, police (not

as successful in consumer settings)

WLAN-based Location

Services

Depends on signal

strength utilization

No additional hardware

infrastructure is needed

Suitable mainly for indoor

positioning

Indoor commercial applications

Table 1. Mobile network platforms for identification [3]

Demand Level Typical Services Typical Business Models

Consumer Demand Location and Navigation Person-

alized Content

Maps, driving directions, yellow pages Subscription-based services, pay-per-view, syndi-

cation, micropayments

Niche Consumer and Business Maps, shopping locator service, coupon discounts,

alerting services

Subscription-based services, advertising, revenue-

sharing, micropayments

Industrial/Corporate Supply chain management, inventory management,

customer relationship management, intelligent

transportations and system infrastructure

Application service provider, consultation services,

infrastructure provider

However, this is not the case when it comes to LBS.

Introducing new features to existing solutions is not

always possible. Furthermore, it typically fails to uti-

lize the intrinsic nature of location. As a result, we are

offered certain sophisticated location-based features

added to a recognized application or service, some-

times leaving us to wonder why we would ever even

need them. Have you ever set an alarm notifying you of

when a friend is within 100 meters, using your Instant

Messenger (IM) client? Companies try to convince us

that location within your IM contact list is a crucial

component, though many users do not agree.

Unlike many other features, such as multimedia

support or local connectivity, location capability within

mobile phones not only adds extra features to the

device, rendering it more attractice, but, most impor-

tantly, opens up new and as yet unkown application

areas. It is difficult to specify what types of services

can be implemented based on location. But it is very

important for these additional services to not be viewed

solely as an answer to customer needs. They are used

to create new markets, revealing services that are yet

unknown, and offering a chance to see the utility of

these products. A good example of this is GPS navi-

gation. A decade ago, noone expected to have a small

box telling them to turn left in approximately 50 meters,

attached to the windshield of their car. There was no

directly expressed need for this product on the market,

simply because people were not even aware that such

a contraption could be created. Location-based services

should be viewed in the same light. Upon introduction

they should make us wonder how we ever survived

without them. That is real innovation.

Here and now – the need is always context spe-

cific, the user wants something at that very moment

and at that very location. We should be able to predict

this need and provide its solution. The users and their

needs take precedence, everything else is irrelevant.

Thus, in order to create an innovative location-based

service, it is crucial to stop thinking about how to improve

our current products with geographical coordinates. It is

essential to give up looking for an application that may

benefit from knowing our friends’ or our own location.

Instead, we should start thinking about what types of

services users may need at their location at that very

moment. It is the “here and now” that really matters. Unfor-

tunately, these services may also be risky investments.

It is impossible to predict whether something will suc-

ceed or end up in utter failure until it is presented to

the customer. Sometimes, such as in the case of the

internet, it is vital that people be taught how and what

the service can be used for. Only then does it begin to

generate revenue.

Another area in need of further progress is middle-

layer support for LBS solutions within the mobile plat-

form. As it stands, there is no recognized, platform-in-

dependent and commonly acceptable standard or API.

Moreover, typical platforms do not tend to have generic

middle-layer LBS support. Certain APIs may be used to

access GPS coordination or cell-id. However, sometimes

a more sophisticated method for finding the coordinates

of the device (using all possible data sources, such as

GPS, cell-id, IP address, etc) to obtain at least an esti-

mation of the coordinates, and guarantee their highest

accuracy given the circumstances, is desired. In these

cases, it is necessary to implement these calculations

yourself. There are countless techniques for calculating

the coordinates of a mobile device, yet it is fairly difficult

to find a ready-made tool which can combine different

location data sources and provide final values, while

also guaranteeing their accuracy. Nor is there a consis-

tent specification of what sort of data is to be provided

to developers. In addition to position, other properties,

such as the speed or direction of movement may be use-

ful. For example, a gas station advertisement on a high-

way should only be displayed to drivers who are able to

move over, or in other words those that are able to move

in a particular direction. The ideal situation would be to

provide developers with reliable APIs for accessing loca-

tion data, to specify what types of data this should be,

and, potentially, a uniform way to handle different loca-

tion data sources on different platforms and program-

ming languages, in order to facilitate the implementation

and migration of LBS applications.

maps or playing tips, or fishing boats equipped with

shoal finders.

Another category is alert services, used during

natural disasters or accidents. During the SARS out-

break in 2003, for instance, Hong Kong mobile phone

operator Sunday launched a service that warned sub-

scribers via SMS (Short Message Service) messages

about buildings where SARS cases where suspected

or confirmed. Such messages were sent to all people

who were within approximately within a one kilometer

radius of the case location.

Business and corporate customers may also ben-

efit from LBS concepts, using it to track goods, people

or even entire projects. There are several technolo-

gies that facilitate enhancing such activities; devices

designed to monitor and control the supply chain,

the amount of materials and their positions. Another

example is the concept of ambient intelligence or

pervasive computing, where almost all materials and

devices contain sensors and form a large network of

intelligent, location-aware devices.

Innovation

Be different. To be successful, your service must be dis-

tinctive, as well as recognized by users amongst millions

of similar products.

Innovation is a great concept, but just what exactly

is innovation in the LBS-related segment of the mar-

ket? The natural way to create new products involves

incorporating new technologies into existing software

as new features complementing their previous function-

ality, as opposed to creating completely new products.

This is a common and simplistic approach to introduc-

ing new technologies onto the market, in addition to

stimulating growth of current services, while they are

enhanced with increasing new functionality in line with

technological development. Additionally, this is a rela-

tively safe way to conduct business, since customers

are already accustomed to the service and do not need

to be taught how to use the new services, or informed

of why they actually need them.

Table 2. Business opportunities in LBS [3]

nr 2/2009 (10)

In Focus < 17

marginss/e/f – 4pt – 6p

Comarch SAPosition: Team Leader

Department: Mobile Software R&D

Info: Marek is currently responsible for

leading and coordinating test teams in Pro-

duct Testing projects for portable devices..

Making Money

New revenue streams are great when they are mak-

ing money. But can you predict the earning potential

of these same services in 10 years?

Taking profitability into consideration, there are numer-

ous ways of making money on a mobile service. However,

since users do not want to pay directly for the services

they use, it seems that advertising is taking the lead.

The key to success in mobile advertising is making the

advertisement truly context dependent and not explic-

itly visible to the user. An advertising model based on

texts and banner ads used by popular web browsers

may serve as a good example: users are given not ads,

but additional links to sites they are already searching

for. Mobile advertising should and can be enhanced to

contain similar features. It is vital that mobile applications

and services are highly context dependent. This means

that the system must be able to predict what types of

services the user might need at that very moment, and

the device should be ready to offer those services to the

user. Predicting what a user wants and when the technol-

ogy is capable of doing it is not easy. However, we can

be sure that the location of the device will play a crucial

role in making the application context-aware. As such,

we believe that the location is the most important and

powerful context-related factor imaginable.

Many of today’s users are fed up with the amount

of services, applications, information and advertising

presented to them in the virtual world, and are look-

ing for a higher level of specification. No one wants to

hear about a new tariff promotion when sitting in a res-

taurant, and this is something the software should be

able to predict. Numerous things can be inferred from

the device position, speed, direction, average move-

ment or the area where the user spends the majority

of working hours. When at work, users are likely to be

more interested in services such as a new option for

dinner or a new parking service. Conversely, during

their first visit to a city, a person may want to know

the three most important historical monuments to

see during a single day trip. Then, a few days later,

a shopping center available nearby serves as a new

point of interest.

With the exception of advertising, we are not

aware of many other ways of effectively profiting

from the popularity of a service. Thus arises the

question of advertising’s dominance over alternative

methods for creating profit from LBS in the future. Are

there any other possibilities? What will be the main

source of funds for LBS creators in 10 years? We do

not know the answer, but we are certain that every-

body expects the mobile services being provided

to be free. The free-of-charge model fosters inter-

est in the application among customers. Thus, LBS

applications should also be free, in order to gener-

ate popularity and guarantee that their designers

achieve success in the market. However, noone has

yet been able to provide a truly free, comprehensive

location-based service, that has not also incorpo-

rated advertisng. Why? The answer may be as simple

as this: we do not know how to generate profit from

a service without either selling the service itself to

the customers or selling advertising space. Thus, we

believe the monetizing of mobile services is a good

place for innovation. If someone finds a novel, effi-

cient way of making money from a service, which

is free for the user and does not involve bombard-

ing customers with more ads, it would be a ground-

breaking invention.

Conclusions

Localization-based services combine vast numbers

of formerly separated technologies into one location-

aware platform. LBS have been treated as an addition

to what is already available within the device. However,

we believe it is powerful enough to evolve into the heart

of mobile platforms and mobility itself in the future. It

is highly likely that future mobile applications and ser-

viceswill be driven by knowledge of where the device

is currently, and what is the most necessary service

at that time. The handset should determine what is

needed at that moment and how this should be made

available to the user. This constitutes the road to pro-

viding a reliable service, fulfilling customer needs and

guaranteeing revenues.

Marek Konieczny

references

1 Magnusson, C., Tollmar, K., Brewster, S., Sarjakoski, T., Sarjakoski, T., and Roselier, S. 2009. Exploring

future challenges for haptic, audio and visual interfaces for mobile maps and location based services.

In Proceedings of the 2nd international Workshop on Location and the Web (Boston, Massachusetts,

April 04 – 04, 2009). LOCWEB ‘09, vol. 370. ACM, New York, NY, 1-4.

2 Dataquest Insight: Consumer Location-Based Services, Subscribers and Revenue Forecast, 2007-2013,

http://www.gartner.com/DisplayDocument?ref=g_search&id=1035015&subref=simplesearch

3 Rao, B. and Minakakis, L. 2003. Evolution of mobile location-based services. Commun. ACM 46, 12 (Dec.

2003), 61-65.

Comarch SAPosition: Senior Software Analyst /

R&D Manager

Department: Telecommunications

Professional Services

Info: Grzegorz leads the R&D unit, the main

goal of which is exploring new mobile-rela-

ted technologies, in addition to searching

for new opportunities on the mobile market.

Grzegorz Wąchocki

technology review [www.comarch.eu]

18 > In Focus

marginss/e/f – 4pt – 6p

Smartphone: The Best Tool for Cutting Field Service Costs and Increasing Productivity

nr 2/2009 (10)

Does your field service continually require more and more funds? Do your customers seem to be dissatisfied, and

are the number of “Where is my tech?” escalations refusing to decrease? There is a simple solution: buy gadgets, go

with the trends and be green. Your company will not only save money, but will enjoy increased revenues as well.

nr 2/2009 (10)

marginss/e/f – 4pt – 6p

technology review [www.comarch.eu]

An attractive offering, high quality of prod-

ucts and satisfied customers are factors

that may contribute to a telecom operator’s success

on the market. Two of these factors are clearly related

to the work of field staff. Field employees are respon-

sible for the high quality of services, as they maintain

the operator’s network infrastructure to ensure ac-

cess to all services adhering to contracted service

level agreements (SLA). For customers, field forces

are also company representatives. If a company uses

self service solutions, they may even be the only rep-

resentatives who are in contact with the customers.

This shows that quality work of field service staff is

the key element for an operator’s success.

As a result of the recent economic downturn, the

cost of telecom services has become the main focal

point for providers. Operator business costs have

a great impact on product prices, and telecoms have

used methods of improving productivity and rational-

izing customer field service costs for a long time. Con-

sequently, field service management (FSM) and opti-

mization systems should be planned by the majority

of service providers. Not only do FSM systems allow

automated scheduling and effective resource man-

agement, but they can also support work order dis-

patching and fulfillment of field work orders. This brings

real benefits to network maintenance and customer

service departments. But perhaps operators can do

even more?

To affirmatively answer this question, vendors of

FSM systems extend their product portfolio with solu-

tions based on mobile technologies. Mobile software

and hardware available on the market today ensure the

following:

> Possibility of building ergonomic and high-usability-

focused mobile systems

> Hardware parameters enabling advanced, elaborate

mobile application functionalities

> Moderate costs

The elements of operator strategy that can be sup-

ported by mobile technologies include high quality

field service, higher level of field staff control, as well

as simplified fulfillment of work orders. This article will

consider how mobile technology support in the field

service management domain enables rationalizing

costs and productivity. Is investment in mobile soft-

ware and hardware cost-effective? If the answer is

yes, as advocated by research conducted by Aberdeen

Group for instance, then which mobile functionalities

and features can help in reducing costs and increas-

ing productivity in field service departments?

Optimization in Practice

Because customer service and network maintenance

are usually the main components of a service provider’s

operational costs, methods and technologies respon-

sible for their improvement and optimization have been

used for many years. They allow optimizing staff and

equipment use, dispatching cost and efficiency, as well

as all additional costs related to services, such as phone

calls, drive costs, paper usage, etc. The most popular

methods of field workforce optimization are:

> Scheduling with intelligent mechanisms of optimi-

zation

> Dedicated task lists for field employees

> Dispatching based on a wide range of criteria, tak-

ing into consideration the availability of employees,

locations and competences

These mechanisms, which in theory bring many oppor-

tunities for an increase in productivity and rationaliza-

tion of service costs, are blocked or limited because

of general organizational problems, namely:

> Minimal possibility for real-time dispatching

> Schedules based only on estimation of task dura-

tion without determination of actual task duration

> Limited possibilities for rapid task reassignment

(employees often spend their mornings on mak-

ing to-do lists)

> Limited possibilities for real-time task completion

reporting, and updating of business processes (task

reports are usually filled in after all daily field tasks

are completed)

> Absence of exact knowledge regarding current

pending assigned field work and no possibility for

assigned the best resources to urgent tasks

20 > In Focus

Figure 1. The main cost drivers in field service and average improvements from mobile support.

Cost Drivers Increase Focus On Mobility Average Performance Improvements | From Mobile Field Service

Increasing service-related costs (workforce, fuel,parts,fleet, vehi-cles, etc.)

Customer demand for faster and improved service issue resolution

Need for improved data capture and information form management insight

Shrinking product margins placing more pressure on service revenue contribution

Source: Aberdeen Group, 2008 Source: Aberdeen Group, 2008

% Of All Respondents

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

61%

44%

40%

20%

Performance Category average Improvement

Mean time to repair - 21%

Overtime costs - 13%

Service profitability + 17%

Workforce productivity + 22%

marginss/e/f – 4pt – 6p

Comarch FSM Mobile, all information regarding field work on the handset screen.

nr 2/2009 (10)

Mainly, the problem is the lack of current knowledge

and shortage of tools for rapid operational activi-

ties.

However, mobile technologies may help, since they

allow putting the right strategy, such as optimization,

on the front line of field service. Due to mobile features,

front line staff are drawn closer to the dispatcher/

scheduler. Mobile solution functionalities that resolve

this basic problem of optimization include:

> Current status of planned work – employees don’t

have to complete a report at the end of the day.

Instead, they fill in task completion reports online,

right after completing their work. Optimization mech-

anisms are able to update schedules in real-time

and fit plans more efficiently for real field staff work.

Another benefit is that business processes related

to field staff work may be updated automatically in

real-time. For example, installation of new services

can be reported as finished on-line, and service time

of activation is shortened, raising customer satis-

faction.

> real locations – Today, GPS tracking is a common

element of mobile equipment. It sends location data

from the field and allows next step planning of the

field service department by a dispatcher. For exam-

ple, in urgent cases (emergency orders), it allows for

the dispatch of whichever employee can reach the

location the quickest.

> real-time schedule changes – this is done auto-

matically by sending information to a field employ-

ee’s handset, without the necessity of looking for the

employee telephone number in the database, or for

calling the employee back to the office for new print-

outs with an updated task list.

> Fast and accurate documentation – smartphones

come with standard multimedia tools, such as

a camera and a dictaphone. This allows for quick

and full document intervention, as well as for add-

ing file attachments in real-time. This is vital in emer-

gency situations and is useful for sequence tasks

on the same site where complete documentation is

immediately accessible for consecutive activities.

Mobile applications in the hands of field staff become

a tool similar to a remote control in real-time, leading

to increased productivity and efficiency of any opti-

mization mechanisms. This shows synergy between

field service management modules (mobility and opti-

mization), which is a great advantage.

A number of areas can be optimized by using

mobile technologies. We will focus on several of these

in this article:

> Fuel and drive time

> Papers, calls and resulting mistakes

> First-time fix rate

> Optimizing usage of up-sell opportunities

Fuel and Drive Time

When discussing cutting costs and increasing produc-

tivity, the cost of a particular field intervention and its

average duration should be taken into consideration.

Fuel consumption and vehicle utilization are easy to

calculate and important for every intervention cost.

Both of these are simple driving distance functions.

Mobile technologies and applications can support the

service provider in several ways in this regard.

One such supporting solution is the aforemen-

tioned synergy between optimization mechanisms

and mobile solutions. The field work optimization sys-

tem, which is responsible for calculating the shortest

and easiest route between work order locations, is

able to send this optimal work orders list in the right

order, to the right technician in field, provided they use

a mobile application. As a result, the field technician

knows exactly how the work should be organized in

order to optimize driving time and distance.

Distance-effective field service management may

be achieved by integration with mobile navigation

systems. Customers and network elements may be

placed in various locations. Being on time and using

the easiest and shortest route is certainly very impor-

tant. Field service management systems with mobile

applications support field staff by sending locations

of work orders to navigation systems, as a ‘Point of

In Focus < 21

marginss/e/f – 4pt – 6p

Interest’ on the planned route. Thus, the field employee

is relaxed due to the optimization of his route and no

subsequent waste of time and fuel. Additionally, he

also knows his exact destination and is able to go

there directly.

Another important aspect that should be consid-

ered when discussing cutting driving costs is the

immediate handling of emergency orders. Due to real-

time employee location monitoring (GPS data from

mobile devices), this type of order may be fulfilled

by employees who are in the nearest physical prox-

imity. Thus, the intervention occurs as soon as pos-

sible, while also cutting down costs, due to a reduc-

tion in distance.

Time is money – this common saying proves very

true in relation to field service. Faster order fulfillment

lowers costs of order execution and can help increase

the number of completed work orders per day. The use

of mobile applications by technicians, effective route

planning and mobile navigation all lead to the afore-

mentioned cost-effectiveness. This results in a time

savings as well. One of the many reasons is that an

employee no longer needs to go to the office to print

all of his daily tasks. Because he has a detailed task

list on his mobile, he may go to the first order in the

field directly from his house. If he does need to print

something, he can do it with his smartphone as well.

The employee may not only begin his work at his home,

but also finish it there. Field staff aren’t required to go

to the office to complete reports about executed tasks;

this may be done online using their handsets.

Papers, Calls and Mistakes

The evolution of IT technology has created more pos-

sibilities for performing various activities on a com-

puter screen, including reading books, contacting other

people, watching movies, drawing pictures, etc. With

the evolution of mobile technology and devices, more

and more people are using IT technology functionalities

on the go. Similarly, the use of mobile technology for

business purposes is become more frequent as well.

Another significant benefit of electronic technologies is

that knowledge, documents, agreements and pictures

no longer have to be printed on paper. This not only

saves money (paper cost) but most importantly helps

protect the environment. Mobile technology allows for

an entire office to exist within a single handset, aiding

the user in becoming truly ‘green’.

Paper printouts in field service management unsup-

ported by mobile technologies are used as basic doc-

uments, with information regarding schedules, task

details and execution reports. All of this data may be

accessible via a mobile application, and the com-

pany doesn’t have to invest in and waste a significant

amount of paper to perform field service department

tasks. At the same time, back office employees don’t

have to waste their time copying data from paper to

electronic forms, because all important information is

instantly placed in the right database.

The situation is quite similar when it comes to

phone calls. In field service departments without any

22 > In Focus

technology review [www.comarch.eu]

Figure 2. Field order fulfillment – both with and without mobile application support

Fiel

d o

rder

fu

lfill

men

t (w

ith

out

adva

nce

d m

obile

su

pp

ort)

Cos

ts fo

r op

tim

izat

ion

Fiel

d o

rder

fu

lfill

men

t (m

obile

su

pp

ort)

Fiel

d o

rder

fu

lfill

men

t (m

obile

su

pp

ort)

Technician calls

dispatcher to change

order status

Technician

fulfills an order

Technician

drives to order

site

Back office

copies data

from paper to

electronic forms

Technician takes

printouts with list

of tasks from his

office

Technician time,

Printing costs

Real time schedule,

Optimal route

Navigation

On-line access to order data,

On-line completion reports,

e-documents and e-signatures

Fuel, Vehicle

utilizationPhone calls,

Dispatcher timeTechnician time

Back office

employees time

Technician

goes back to

the office to

leave protocols,

paper

agreements Technician calls

Dispatcher for order

details

Technician drives

to order site

Technician

fulfills an order

marginss/e/f – 4pt – 6p

Comarch SAPosition: Telco Consultant

Department: Telecommunications

Business Unit

Info: Szymon is currently responsible for

the Comarch Field Service Management

solution for telecom service providers.

Szymon Uczciwek

nr 2/2009 (10)

support of mobile technology, the dispatcher’s job is

mainly to speak on the phone. He not only notifies

field employees about schedule changes over the

phone, but also uses it to report task completion or

status changes, and inquire about task details. The

cost of calls and the dispatcher’s work is clear, but

there is an additional cost – mistakes and their con-

sequences. Mistakes are caused mainly by providing

imprecise information over the phone. Mobile solu-

tions for field staff enable access to detailed data

regarding tasks and current schedules in real-time,

without making any phone calls. They make it possi-

ble to fill the task completion data online with memo-

rized facts, without any misunderstandings or prob-

lems. This also decreases the dispatcher’s workload,

enabling him to perform more orders and cooperate

with more technicians. Because the range of dis-

patchers’ responsibilities is lowered, people working

in this position wouldn’t be expected to have exten-

sive qualifications, further lowering HR costs.

First-time Fix rate

An increase in the first-time fix rate is always a key for

the telecommunication operator. The higher its value,

the higher the productivity and the greater the cus-

tomer satisfaction (there is nothing worse for a cus-

tomer than not having the problem solved on the first

attempt). This indicator is also important in the context

of cost-effective management. Every field interven-

tion creates costs. If there are more field interventions

associated with a given work order, its cost becomes

much higher. There are also other expenses related to

multi-intervention orders, for instance those related to

lower indicators of task realization per day.

However, there are a lot of ways that field work can

be improved in this regard, including increasing field

staff competences, assigning tasks to accurate, skilled

employees, etc. Mobile access to field service manage-

ment tools for workforces is a solution that may help

obtain a higher first-time fix rate. The main mobile tools

used to improve the quality of field service, as well as

to decrease unsuccessful interventions are:

> Access to important data related to the task and to

the Trouble Ticket knowledge database

> Access to network elements/inventory data

> Possibility of conducting additional activities related

to work order, such as printing completion protocols,

capturing customer signature, etc.

If a technician has online access from his mobile

device to all tools required for a given task, he can

easily finish his work without having to go back to the

office because he forgot or requires additional infor-

mation regarding the task. Field work is supported by

the mobile application, which, according to particular

purposes, stores and presents the field employee with

data about the customer, work order, tasks, required

activities and equipment. It provides access to net-

work data and enables its update. Additionally, it also

prints documents and captures customer signatures.

A technician’s smartphone can present a very wide

variety of data and have numerous supporting tools.

In field work, the more information about the task is

provided to the filed staff, the more likely the interven-

tion is to bring a positive resolution.

Technician as a Salesman

A mobile handset as a solution to improve first time

fix rate is a fascinating concept, but is it possible to

make this indicator exceed 100%?

If a technician is equipped with accurate data and

appropriate tools, he, in effect, becomes a sales person

for the service proivder. An appointment with a cus-

tomer is a great opportunity to increase the value of

the contract and convince that person to buy other

products or services from the operator. Customers

do not typically favor telemarketing, but they may be

more willing to listen to the technician, who has just

activated a service or quickly solved a technical prob-

lem. To play this role however, the technician must have

tools which will “sell the products for him”. If a telecom

operator wants to benefit from this appointment oppor-

tunity, they should provide the technician with mobile

tools that will work as an extension of ones he already

uses. Applications supporting order fulfillment can

have an additional module for up-selling. Immediately

after the technician has finished his task, he would

report that he has the opportunity to present the cus-

tomer with the company’s offer or fulfill the customer’s

request for additional services. This information would

be presented on his handset screen. If a customer is

interested in a service, or he wants it activated imme-

diately, the technician would have all the tools needed

to prepare a contract, capture a signature on the touch

screen and install additional services. All this may occur

during just one field intervention.

Effective changes in technical service depart-

ment organization and mobile tools to guide techni-

cians through selling, may not only bring productivity

increases and decrease general costs of the company,

but may also have a highly positive impact on sales.

This concept is certainly worth considering, since it

may lead to opening an extra sales channel, and ulti-

mately improving business performance.

Summary

In the competitive telecommunications market, any

activities carried out by a telecommunication com-

pany resulting in cost cutting and improvements in

employee productivity are extremely important. Mobile

technology, by effectively supporting field service

work, meets the challenges and opportunities of the

telecom market. Operators should start looking for

vendors who are able to offer vast support in this

domain, have experience on the market and provide

elaborate solutions, which will help revolutionized field

services grant highly valuable benefits that are very

difficult to achieve by other means. It is important to

consider vendors who are experienced not only in the

field service management area, but in mobile technol-

ogy as well. Mobile solutions have different features

when compared to those of other IT systems. Mobile

equipment for large field service departments results

in significant costs (each technician must be equipped

with a smartphone, which in many cases is highly

professional and fitted precisely to the technician’s

needs). If the service provider deploys a safe, easily

adoptable and stable solution that has an additional

range of functionality, changes in monthly reports

regarding cost, productivity and revenues are sure

to follow. <<<

In Focus < 23

a Dream or a Fact?Digital Home:

UPnP is the technology of tomorrow, which began the day before yesterday. This year, the UPnP Forum

initiative is going to celebrate its 10th anniversary, incorporating almost 900 international leading compa-

nies in computing, printing, networking, consumer electronics, home appliances, automation, control, secu-

rity and mobile products. The main goal of UPnP technology is to enable seamless connectivity of various

devices, forming networks in home or corporate environments, and enabling a Digital Home experience.

Due to its design, adding new devices or programs to the network should be as easy as plugging a piece

of hardware into a PC. The devices and programs connected familiarize themselves with the current net-

work setup due to service discovery and advertisement, and immediately configure themselves accordingly,

with regard to devices already connected. In short: UPnP is a framework for building networked applications.

24 > In Focus

technology review [www.comarch.eu]technology review [www.comarch.eu]

The Dark Side of Living Digitally

At the beginning there were only zeros and ones. All

could use them, but soon it was discovered that each

had their own unique way. Many wanted to be the first

to establish a standardized method of playing with

bits. As a consequence, the darkness of misunder-

standing fell, and people could no longer communi-

cate with each other.

Electronic devices have generally tended to only

be compatible with the same manufacturer’s devices,

without a common language that would enable com-

munication with numerous complementary machines

from other vendors. To extend a home entertainment

system for instance, one has been limited to the ven-

dor of the appliances they had already purchased. But

real trouble was still to come…

Consider a simple, everyday case. Imagine you

want to share pictures taken during your last sum-

mer vacation, showing you standing proudly by the

erupting Strokkur geyser in Iceland. Your friends have

just popped in, the pictures (zeros and ones in this

case), recorded by your mobile phone’s high resolution

digital camera are still sitting snuggly in your pocket,

and your brand new panoramic HD plasma is ready

and waiting in the living room. At your disposal is the

perfect medium to begin the show and make your

friends truly jealous of what a fantastic vacation you

had. All you need to do now is transfer the pictures

from your mobile to a laptop using a USB cable (by the

way, do you happen to have one on hand?), burn the

picture onto a DVD (of course, you have a spare disk

ready, right?), insert the disk (still hot) into your DVD

player and press ‘play’. Here you are; the zeros and

ones are now being transferred from the DVD player

straight to your plasma set. Two questions arise: do

you have the feeling that the fact that your attention

has been focused on trying to manage “zeros and

ones” rather than actually enjoying the pictures is

fundamentally flawed? And secondly, are your friends

still there in the room, waiting patiently to see the final

result following a painstakingly slow ten minutes bat-

tling with raw data?

Trouble-free Solution

Universal Plug and Play saw the light in the late 1990s,

just as networks were growing in popularity. Several

vendors were coming up with solutions to make net-

works and networked applications easier to manage.

One of the earliest attempts was Sun’s ‘Jini’ offer, with

its innovative lookup service concept (continued to

this day within Apache Foundation’s River project),

to which Microsoft quickly responded with their UPnP

model. In October 1999, the UPnP Forum was formed,

as an industry initiative designed to enable simple and

robust connectivity among consumer electronics, intel-

ligent appliances and mobile devices from different

vendors. UPnP technology is a key standard required

for an interoperable network in a digital home, but it

does not specify all aspects of interactions between

devices, defining rather the frame protocol of com-

munication.

Today’s consumers continuously acquire a wide

variety of digital content on their devices. At the same

time, they want to be able to easily and conveniently

manage, use and enjoy this content, wherever they

are and whatever devices they have at hand. In order

to address this need, the Digital Living Network Alli-

ance (DLNA) was established in 2003, with the aim of

creating a generic, interoperable network of compat-

ible devices from various vendors. DLNA guidelines

were created and published to provide manufactur-

ers the opportunity to innovate and differentiate their

products, and to simultaneously satisfy the consum-

ers’ desire for trouble-free access and management

of their content.

Today, a vast number of Home Network, Mobile

Handheld and Home Infrastructure Devices are DLNA

certified, including media servers, renderers, players,

printers, up- and downloaders and controllers from

approximately two hundred vendors, including Alcatel-

Lucent, Canon, Dell, AMD, Hitachi, Lenovo, NEC, Nokia,

BMW or Sony Ericsson.

The Future

After all the devices on the market are DLNA/UPnP cer-

tified, configuration of the home network will be easy

and secure like never before. “One click of the button”

or “Touch and click” slogans will eventually come into

full force and cease to be merely promises. With no

additional configuration, or installation of drivers, you

will be able to interoperate with all home devices in

your network, such as TVs, media storage devices,

laptops, mobile phones, digital cameras and printers.

But more is coming, if you dare to imagine…

Think about sharing your favorite pictures from your

private home collection with your friends, while drink-

ing a beer in a downtown bar. Even if your computer

is shut down, you can wake it up remotely from your

mobile phone and access the content you want.

How about streaming your local team’s hockey

game while in a hotel on another continent? You don’t

want to miss it, but there’s no need for concern: you

can watch it hundreds of miles away, streamed right

nr 2/2009 (10)

In Focus < 25

marginss/e/f – 4pt – 6p

Comarch Competences

Comarch has been engaged in Digital Home tech-

nologies since 2004. With extensive knowledge

of basic DH standards such as TCP/IP, UDP, HTTP,

XML, SOAP, UPnP and DLNA, the Professional Ser-

vices Business Unit highlighted the strength of

its competences within the field. Important mile-

stones include:

> Joining the UPnP Forum as a member

> Contributing several successfully completed proj-

ects, including:

> Extending the UPnP Certification Test Tool

implementation for the UPnP Implementer

Committee. The tool is used for verifying the

conformance of Control Points with UPnP

standards

> Implementation of UPnP/DLNA compatible

stack for Symbian OS-based devices. The com-

ponent is now used in several Nokia smart

phones, including N95, N81, N78, N96 and

N97

> Engagement in commercial projects involv-

ing UPnP: Linux-based tablets, Internet Radio

devices and UPnP Certification Test Tool

Upgrade

> Participating in DLNA Plugfests and interoper-

ability testing UPnP workshops internationally

(2005 – Lihue, Hawaii, USA, 2006 – Sapporo,

Japan, 2006 – Taipei, Taiwan, 2007 – San Diego,

CA, USA, 2007 – Sanya, China, 2007 – Portland,

OR, USA, 2008 – Kobe, Japan, 2008 – Durham, NH,

USA, 2008 – Seoul, Korea)

> Presenting the Digital Home Demo Booth for the

Symbian Smartphone Show 2008.

to your room, thanks to remote access to your home

network. Or perhaps you are not particularly interested

in hockey, but would like to check on how your young

daughter is doing in her room, using an IP camera,

which will send the video image directly to the TV set

in your hotel suite?

Or perhaps, once you have driven into the garage,

you would like your car’s entertainment system to

automatically download a couple of MP3 files, which

your wife has just downloaded to your PC from mys-

pace.com the previous night?

With DLNA and UPnP, the above cases of tomorrow

are already happening today. <<<

Comarch SAPosition: Mobile R&D Department Director

Department: Telecommunications

Business Unit

Info: Piotr is responsible for mobile SW

development for Symbian, mobile Linux,

Android, iPhone and Blackberry.

Piotr Madej

26 > In Focus

technology review [www.comarch.eu]

marginss/e/f – 4pt – 6p

nr 2/2009 (10)

Toward Self-Organizing

The current mobile market landscape

with dropping revenues per bit and

increasing demand for a diversified service portfo-

lio, forces operators to reduce OPEX, while investing

in new technologies and solutions. Constantly grow-

ing multi-technology and multi-vendor networks are

becoming more complex than ever before, and sig-

nificant network planning and management effort

is needed to ensure satisfactory end user experi-

ence. This effort can be minimized with the imple-

mentation of Self-Organizing Networks (SON) which

will enable operators to simplify network operation

and extend their network in a plug & play manner.

Comarch considers network management automa-

tion to be a key requirement, as well as a crucial fac-

tor for investments in next-generation wireless tech-

nologies, such as LTE and supports SON use cases

with its product portfolio.

Networks

Operational Excellence < 27

marginss/e/f – 4pt – 6p

Ideas in brief

> Increasing network complexity and OPEX reduction pressures, causes operators to change the way they

operate their networks

> Self-Organizing Networks (SON) promise to reduce the manual effort needed for network operation, by

making networks capable of self-organization and resource management

> Comarch’s product portfolio supports SON use cases via automated process management and integra-

tion of planning and optimization, configuration management and network provisioning capabilities

28 > Operational Excellence

technology review [www.comarch.eu]

Ideas related to network automation and introduc-

tion of self-organized mechanisms have always been

on operator wish lists. According to Yankee Group, OPEX

related to network operation constitute as much as

20% of the cost and tend to grow as networks mature.

As the number of technologies, vendors and base

stations in a network increases, so does the network

planning and management effort. Time-consuming

manual work is still required in many workflows, such

as parameter planning, optimization and handling of

site failures. On the other hand, the technology and

market dynamics put pressure on faster rollouts and

network upgrades to stay ahead of competition. New

technologies, such as LTE, will increase network com-

plexity, and parallel operation of 2G/3G/HSPA and LTE

networks will be a must for some years ahead. More-

over, potential mass femto-cell deployments will sig-

nificantly increase the number of base stations and

will require a self-organized approach for integration

of new cells with a macro layer.

All of the factors decribed above indicate that we

need to change the way how we operate networks.

The required manual work needs to be significantly

reduced, and the network itself should be capable

to self-configure and continuously self-optimize in

response to network and traffic changes. Operators

will define workflows and policies through which they

will control the network but the hard work will be done

by the network itself.

Principles of Self-Organizing Networks

Self-Organizing Networks are defined as sets of use

cases covering all aspects of network operation, from

network planning to maintenance activities. These

use cases express high-level requirements for future

networks and are based on the paradigm that a net-

work should self-organize and manage its resources,

so that optimal network quality and performance are

achieved. SON use cases can be grouped into func-

tional domains, which are described in the following

paragraphs.

Self-PlanningSel-planning is achieved via self-configuration of ini-

tial parameters and re-computation of parameters

during continuous self-optimization. The amount of

manual pre-planning activities should be reduced

to minimum and cover basic coverage and capacity

planning. As a result, the planning tool will deliver only

a few parameters, such as location, number of sectors

and other basic cell parameters, while the rest will be

derived automatically.

Self-OptimizationThe aim of self-optimization is to fine-tune initial param-

eters and dynamically re-calculate them in case of net-

work and traffic changes. Network optimization should

be based on live measurement data. Self-optimization is

an important improvement area, because current auto-

matic optimization tools focus on small number of radio

parameters and a lot of manual effort is required for opti-

mization activities. The aim is to make following optimi-

zation activities automatic:

> neighbor cell list optimization

> interference control

> handover parameter optimization

> QoS related parameter optimization

> load balancing

> RACH load optimization

> optimization of home base stations

Self-ConfigurationSelf-configuration refers to the plug & play behav-

ior of new network elements. Automatic deployment

of new base stations is key and covers the follow-

ing activities:

> automatic configuration of initial radio/transport

parameters

> automatic data alignment for neighbor nodes (real-

ized for LTE via standardized Automatic Neighbor

Relation (ANR) management)

> automatic connectivity establishment

> self-test

> automatic inventory

> automatic authentication and SW download

Self-HealingFault management should be simplified and automated

via information correlation mechanisms. Operators will

be responsible for the definition of correlation rules and

corrective actions to specific faults, but the fault correc-

tion itself will be autonomous. Self-healing covers use

cases such as cell outage detection and compensa-

tion via automated root cause analysis, and such cor-

rective actions as routing traffic to nearby cells. Another

example is the migration of unit outage based on auto-

matic mechanisms for adaptation and reconfiguration

of hardware.

Figure 1. Self-x capabilities of Self-Organizing Networks

self-configuration

self-healing

self-optimization

Operational Excellence < 29

marginss/e/f – 4pt – 6p

nr 2/2009 (10)

The key to understanding SON is that only part of

SON use cases can be adopted while other remain

manual. This enables gradual introduction of SON

mechanisms and does not require the ‘big bang’

approach.

In order to address inter-operability in multi-vendor

scenarios, SON solutions should be based on stan-

dardized interfaces, however the detailed implemen-

tation of SON functions is vendor specific. Depending

on where SON algorithms will reside, different SON

architectures can be distinguished:

> distributed – SON algorithm(s) will reside in one or

more network elements

> centralized – SON algorithm(s) will reside in existing

NMS or in an additional SON server

> hybrid – SON algorithm(s) will reside is partly in network

elements and partly in the management system

Distributed and centralized SON architectures are pre-

sented in Figure 2.

Current Status of SON activities

The concept of SON was introduced in 3GPP Release

8 specification due to the flattening architecture of

E-UTRAN and the resulting growth in number of nodes

in the network. The main SON use cases, such as the

self-establishment of a new eNodeB and Automatic

Neighbour Relation (ANR) management have been iden-

tified and described. Moreover, Release 8 standardizes

important interfaces from the SON point of view:

> X2 interface between eNodeBs

> S1 interface between eNodeBs and EPC

A strong motivation to increase operational efficiency

caused SON concepts to become one of the key areas

addressed by the operators’ lobby through the Next

Generation Mobile Networks (NGMN) initiative, which

complements the work on future mobile broadband

networks within standardization bodies.

There are many projects addressing self-organi-

zation issues. As an example, the Socrates project

concentrates on the development of self-organiza-

tion methods for wireless access networks, in par-

ticular related to LTE air interface. The Gandalf project

defined solutions for self-diagnosis, self-testing and

self-tuning in multi-system environments.

Vendors are also active in the field of SON. Recently,

Motorola announced an advanced SON solution, a part

of its LTE offering. Other vendors such as NSN, Erics-

son and Huawei are also working intensively on their

SON solutions.

Our View on Self-Organizing Networks

Like the majority of operators and vendors, we agree that

network management automation is a key technology

requirement and a crucial factor for investments in next-

generation wireless technologies, such as LTE. Therefore,

we designed our products to support process manage-

ment and task automation, and we continuously seek

algorithms and solutions enabling self-organization.

When it comes to adoption of self-organization

concepts in operational networks, we envision that

this process will be gradual. Besides the technical

challenges related to algorithm implementation, such

as coping with ping-pong effects and algorithm con-

vergence issues, there is also a human factor which

cannot be underestimated. For years networks have

been operated manually and time was needed to build

trust in automatic network operation. Initially, planners

may want to view the results of self-x algorithms in

order to be sure that network quality and performance

will not be affected.

Our approach for Supporting SON Use Cases

A high level definition of SON use cases enables the

use of various implementation strategies, ranging from

centralized support of SON functions to fully decen-

tralized solutions. The selection of an implementation

strategy should depend on the problem to be solved.

A centralized apporach is appropriate for SON use

cases related to larger amount of cells such as cov-

erage and capacity optimization. Decentralized solu-

tions are better for solving localized problems, such

as neighbor list management and enable faster reac-

tion times than centralized solutions.

We propose a universal approach to address par-

ticular SON use cases for various wireless access tech-

nologies, rather than concentrating purely on tech-

nologies such as LTE. Although our portfolio enables

a centralized and hybrid approach depending on the

specific SON use cases to be supported, most of our

efforts are concentrated on hybrid solutions in which

SON logic is divided between network management

system and network elements. Distributed use cases

need to be tackled by hardware vendors who are able

Figure 2. SON architectures

networkmanagement

networkmanagement

centralized SON

O&M

network

distributed SON

SON

SON

SON

SON

marginss/e/f – 4pt – 6p

technology review [www.comarch.eu]

to implement particular algorithms directly in the net-

work elements.

The heart of our solution is a Process Driven Inven-

tory with flexible Process Management and Automation

Engine. With Auto-discovery & Reconciliation, Fault Man-

agement; as well as advanced planning and optimization

algorithms, combined with a powerful Network Provision-

ing module, our product portfolio enables automation and

self-organization of network operation activities.

Process ManagementThe Process Management engine allows for the fully

managed and controlled execution of all operational

processes. It can act as a SON coordinator, and

orchestrate various SON workflows and processes.

The freedom of process definition is ensured by the

Process Designer, which provides GUI for process

composition.

auto-discovery & reconciliationWhen applied together, advanced tools such as

Auto-discovery and Reconciliation, gather informa-

tion about the current network status, as well as SON

function configuration and act upon needs. Auto-dis-

covery allows the collection of data from network ele-

ments directly or via systems managing these ele-

ments. Reconciliation enables data to be imported

from external systems, containing information about

network configuration.

Fault ManagementFault management is a complete solution for ongoing

fault issues inside operator networks. It monitors all

mportant elements of the network, and receives, dis-

plays and tracks alarms, allowing management of poten-

tially dangerous network problems. It provides root cause

analysis based on correlation engine and combined

with Process Management enables to automate fault

corrections.

automation EngineThe engine enables the automation of most manual

activities related to network operation. Automated

operations flows can be run by users, or be part of

processes controlled by Process Management mod-

ule. They can also be provided as a web service and

triggered via an external system.

Planning & Optimization ModulesAside from the very few parameters calculated by the

external planning tool, the remaining parameters are

calculated in a self-organized manner by planning

& optimization modules, which are pluggable pieces

of logic utilizing prediction and OSS based data. Exter-

nal algorithms can be integrated with the solution to

address operator specific needs.

Network Provisioning Network Provisioning is an Inventory-driven provision-

ing system capable of configuring all network ele-

ments, while simultaneously reflecting all changes

in the inventory database. Comarch bi-directional OSS

Mediation is used to easily integrate the Network Pro-

visioning system with many network devices in the

multi-vendor environment.

Figure 3 demonstrates how SON use cases can

be achieved with our product portfolio. Operators will

define SON policies and map them to corresponding

processes, which will be automated via the Automa-

tion Engine. Execution of certain processes will be

triggered dynamically based on information from the

network (i.e. configuration changes, alarms, KPIs) or

external events (i.e. request of site rollouts, customer

complaints). Processes will orchestrate the interaction

of various modules, such as Fault Management and

Algorithm modules, providing configuration changes

or new settings for SON functions implemented in net-

work elements via the Network Provisioning module.

Figure 3. SON use cases with Comarch product portfolio

processmanagement

automationengine

SON policies

network informationKPIs alarms

network configuration

SON functions information

SON functions configuration

auto-discovery & reconciliation

network provisioning

planning/optimization module

faultmanagement

30 > Operational Excellence

marginss/e/f – 4pt – 6p

Comarch SAPosition: OSS Product Manager

Department: Telecommunications

Business Unit

Info: Krzysztof is currently responsible for

conceptualization of new OSS solutions

in the area of network planning and opti-

mization, as well as sales and marketing

support of Comarch OSS systems.

Krzysztof Marcisz

references

1 TS 32.500-800 – Self-Organizing Networks (SON); Concepts and requirements, 3GPP

2 TS 32.501-800 – Self Configuration of Network Elements; Concepts and requirements, 3GPP

3 TS 32.511-810 – Automatic Neighbour Relation (ANR) management; Concepts and requirements, 3GPP

4 TR 32.816-800 – Study on management of Evolved Universal Terrestrial Radio Access Network (E-UTRAN)

and Evolved Packet Core (EPC), 3GPP

5 Next Generation Mobile Networks Beyond HSPA & EVDO, NGMN Alliance White Paper

6 NGMN Informative List of SON Use Cases, NGMN Alliance Annex Deliverable

7 NGMN Recommendation on SON and O&M Requirements, NGMN Alliance Requirement Specification

8 NGMN Use Cases related to Self Organising Network, Overall Description, NGMN Alliance Deliverable

9 “SOCRATES: Self-Optimisation and self-ConfiguRATion in wirelESs networks”, J.L. van den Berg, R. Litjens,

A. Eisenblätter, M. Amirijoo, O. Linnell, C. Blondia, T. Kürner, N. Scully, J. Oszmianski & L.C. Schmelz, COST

2100 TD(08)422, Wroclaw, Poland, February 6-8, 2008.

10 Gandalf Project (www.celtic-gandalf.org)

11 Yankee Group research (www.yankeegroup.com)

nr 2/2009 (10)

Sample Use Case: Self-Planning of radio Parameters for a New Base Station

Installation of a new base station requires definition

of an initial set of radio parameters, such as power

settings, frequencies, handover parameters and

neighbor lists. This process should be as automated

as possible, with best practices being the main goal.

Self-planning of initial radio parameters with Comarch

modules has been depicted in Figure 4.

The parameter planning process is initiated by

the request for the integration of a new base sta-

tion. This event triggers the reconciliation task, which

updates information about current network configu-

ration. Next, a set of planning algorithms is launched

in batch mode to calculate basic radio parameters

for new cells. Depending on radio access technol-

ogy, appropriate algorithms are triggered and intra-/

inter- layer parameter dependencies are resolved.

The resulting basic parameter set is enriched based

on predefined templates by configuration manage-

ment logic and provided to the network via the Net-

work Provisioning Module. If an ANR function is avail-

able, neighbor planning can be realized at eNodeBs,

otherwise planning modules will be responsible for

neighbor list generation.

Summary

As network complexity and OPEX reduction pressures

grow, concepts related to Self-Organizing Networks are

regarded by operators as the key technology require-

ment. The manual work associated with network opera-

tion needs to be significantly reduced, and the network

itself should be capable of self-configuring and continu-

ously self-optimizing in response to network and traffic

changes. Comarch’s products are designed to support

automated process management, and we continuously

design algorithms and solutions enabling self-organiza-

tion. With our clients, we develop hybrid SON solutions

and concentrate on the integration of planning and opti-

mization, configuration management and network provi-

sioning capabilities. This allows our customers to quickly

integrate new network elements and implement con-

figuration changes to the network. Many manual activi-

ties can be avioded and operational efficiency can be

increased, through task automation. <<<

Figure 4. Self-planning of initial radio parameters

planning/optimization module

auto-discovery & reconciliation

networkprovisioning

process management & automation engine

1 2 3 4

event, i.e. request for integration

get current network info

generate conf files & provide them to network

auto-calculate parameters

Operational Excellence < 31

marginss/e/f – 4pt – 6p

Traditional Management Silos

Service assurance: Bridging the Gap Between

technology review [www.comarch.eu]

Each service provider has its own busi-

ness model. One may focus on

being the technological leader delivering the high-

est possible quality to customers, while others may

find their niche in simple and inexpensive services

that are available for a flat rate. Yet all of them face

the same problem; the customer will leave if the ser-

vices do not work. Throughout the years they have

been mitigating this potential threat with a number

of different fault management tools, which keep the

network in a good state of operation. However, due

to today’s business models, this no longer seems

possible. Today, even simple services have become

dependent on several different platforms, which are

often delivered by business partners. Service provid-

ers must bridge the gap between old tools and new

models. They must shift their operations to the next

level: Service Assurance.

The Picture Today

Many service providers still use different management

tools for different types of networks. Typically, a new man-

agement system is introduced, with the introduction of

the vendor into the network. It covers only one vendor,

one type of network, with no link to the surroundings.

Even if service providers have an umbrella type of fault

management, the required details can still be found in

the management silos. Service information is scattered

between different systems, such as performance man-

agement, CRM and monitoring tools.

Strategy for Moving Forward

More and more service providers begin different proj-

ects focused on service management. They issue RFIs

looking for different solutions for bringing all service

related information into one place. There are two main

ways for introducing service assurance in operation

departments.

The first approach is to start with service models.

Service providers begin documenting services within

models recording cross-service dependencies, IT assets

and network resources required for service availability.

They then focus on changes in the existing fault man-

agement solutions to allow them to monitor services

based on these models. Constant improvements of the

models trigger constant change requests in the monitor-

32 > Operational Excellence

marginss/e/f – 4pt – 6p

nr 2/2009 (10)

ing solution, which increases their operational costs and

lengthens the time-to-market for new services.

The second approach is to start with dedicated tools

for service assurance. Then, based on functionalities,

a number of different sources of information are inte-

grated with the service assurance solution, with the hope

that all available information will be enough to monitor

the service. Each time a new source of information is

identified, the service models are updated.

Both methods have their advantages, but the best

approach lies somewhere in the middle. Investing in a

solution, which has core capabilities for service assur-

ance, is a must. No single service provider wants to

be a sponsor of a unique, non-COTS solution for ser-

vice monitoring. Solutions which are already available

on the market, have required modules, functionalities

and algorithms for not only service assurance, but

also incident management, root cause analysis or

customer impact analysis. In addition, sound service

documentation, recording all the information pertain-

ing to IT assets, network resources and use cases

of the service is also a must for service assurance.

It is important to remember that service models will

change. Therefore, it is strongly recommended not

only to have a project for documenting the service,

but also such reorganization of the service lifecycle,

which enables the operations department in service

Change Management processes.

The new approach leads to an increase in the effec-

tiveness of the service provider’s operations. Existing

management silos are either no longer needed, or are

incorporated in the service assurance platforms, allow-

ing technicians to use just one solution for investigating

service malfunctions, finding the root cause and fixing the

solution. When determining why a service is not work-

ing, automation saves the most time, which increases

effectiveness, as well as provides an additional benefit

by shortening the service unavailability time. Many of the

corrective actions can be automated in the service assur-

ance solution, as they deliver both correlation engines

and process automation engines. This additionally allows

for solving the potential service incident without the end

customer even noticing it.

Figure 1. Vertical silos architecture vs horizontal architecture

Figure 2. Service models reusage in different departments

Horizontal – Layered ArchVertical – Layered Arch

OSS OSS NGOSSOSS

Network

IP Access Voice Data TV ContentIP Access Data IP

Network Network Network

S

S

S

rr r

CfS

rfS

rfS

S

S

S

rr r

CfS

rfS

rfS

S

S

S

rr r

CfS

rfS

rfSSI&P: servicedefinition

OS&R: service model storage & sharing

Assurance:

> S&R Incident and Problem

Management

> Service impact calculation

Fulfillment:

> Service assembly

& delivery

> Resource allocation

!

!

!

Operational Excellence < 33

marginss/e/f – 4pt – 6p

It’s always about Interfaces

Even if a service provider begins implementation of the

best service assurance solution on the market, a cer-

tain degree of its legacy solution will require mainte-

nance for some time afterwards. There is a possibility

which excludes the need for the big bang approach:

immediate replacement of all IT landscapes. The solu-

tion is reliant upon the definition of an interface, based

on certain standards, in order to handle the legacy sys-

tem as a Resource Facing Service – a component of

the new service model. It is vital that such an interface

provides provides, at a minimum, a functionality that

forwards incidents from the legacy system, passes on

provisioning requests an d enables control of the ser-

vice management process. There is no single standard

on the market today that can be applied. It is there-

fore useful to implement several APIs into the legacy

solution, or to alternatively adopt an API at a unified

level. Although this may entail a significant cost for

integration of the legacy system, in many cases it is

still an worthwhile investment. Solutions such as those

of COTS Service Assurance or Service Management,

and some legacy integration continue to preserve

benefits, such as increases in the effectiveness of

service management, minimized time-to-market for

new services, and most importantly – thorough and

precise service state monitoring.

What about the Service Quality?

Together with service assurance solutions, investing

in Service Quality Management completes the service

picture. In particular, when a service is dependent on a

number of different and constantly changing network

resources, SQM facilitates measurement of the impact of

network degradation and its propagation to the service

models. Additionally, it integrates the numbers of exist-

ing performance management silos into one source of

information regarding state and quality of the service.

Even if SQM is not currently a part of the service assur-

ance projects, it is absolutely on the road map for all

major service providers.

What Happens Next?

Ongoing projects for delivering service assurance will

allow service providers to see the big picture in terms

of the service, in order to measure its state. Once this

information is acquired, new opportunities open up,

and new business models and service offerings can

come into existence.

Typical network operation was oriented to solving

incidents and problems. Using service assurance, pro-

viders can focus on proactive network management.

It’s possible to plan the changes and investments in

the network and optimize them from the service avail-

ability and quality perspective. They can offer the same

services to the mass market, but of a higher standard

and at a different price. Tailored offers can even be intro-

duced for the most important customers, while deliver-

ing and assuring heightened quality in selected areas

or for chosen services.

If service providers integrate service assurance with

CRM or SLA management systems, they can enable cus-

tomer monitoring, as well as network and IT resources

prioritization based on customer impact. If problems

arise, technicians are able to view the real business

value of all resources, and have the capability to plan

workarounds and add a protection mechanism for the

most essential resources.

Existing service providers are no longer autonomous

in service delivery. They have started to share the network

and depend on partners delivering service components.

It is even more important to have a comprehensive ser-

vice assurance solution that will support not only the

service provider itself, but also its partners, with clear

information about the service state and the division of

responsibility regarding service maintenance.

Currently, the telecommunications world is a keen

advocate of measuring customer experience. Service

assurance, in addition to bringing about a unification of

operations and bridging gaps between management

systems, is the first and most crucial step in this pro-

cess. Moreover, automation not only optimizes operations

costs, but also enables new business models. <<<

Comarch SAPosition: OSS Product Manager

Department: Telecommunications

Business Unit

Info: Jakub is currently responsible for sales

support of Comarch OSS systems.

Jakub Zaluski-Kapusta

Figure 3. Interface between systems handling service information

S

S

CfS

rfS

rfS

rfS

> Incidents resulting from

customer problems

> Provisioning/activation

requests

> Process control during the

entire lifecycle

> Incidents resulting from

network problems

> Planned service incidents

(approval)

S

S

technology review [www.comarch.eu]

34 > Operational Excellence

marginss/e/f – 4pt – 6p

Telco on Demand?

Software-as-a-Service (SaaS) is a model of software deployment where a provider licenses an appli-

cation to customers for use as a service on demand. The SaaS model has become one of the most

popular trends in today’s IT environment. Software vendors are starting to offer their software in the

SaaS model for many industries. But is SaaS already mainstream in telecommunications? How far can

a telecom provider go into SaaS? Are there any IT or network areas that cannot be outsourced?

Can a telecom provider outsource everything besides the marketing department?

nr 2/2009 (10)

Operational Excellence < 35

marginss/e/f – 4pt – 6p

technology review [www.comarch.eu]

Figure 1. Differences between on-premise, AsP and saas software delivery modelsO

n-p

rem

ise

aS

PS

aaS

Company a

Company a

Company a

Data Center

Data Center

Data Center

employees

employees

employees

APP A APP B

APP A, B, C

APP C

A’s customers, partners

A’s customers, partners

A’s customers, partners

Company B

Company B

Company B

Data Center

employees

B’s customers partners

B’s customers partners

B’s customers partners

Company C

Company C

Company C

Data Center

employees

C’s customers partners

C’s customers partners

C’s customers partners

employees

employees

employees

employees

36 > Operational Excellence

marginss/e/f – 4pt – 6p

Business Drivers for SaaS

The basic concept of Software-as-a-Service (SaaS)

appeared in the late 90’s. Sometimes called “on-de-

mand software,” and superseding the “ASP model” or

“hosted software,” SaaS has now become one of the

main trends for delivering software in modern IT. The

basic goal of the SaaS model is to reduce investment

costs in software licenses and hardware, by sharing

one instance of software hosted on an application

provider’s infrastructure and on-demand accessed by

many customers, at the same time, remotely.

SaaS applications are developed to leverage web

technologies, such as a web-browser for user-interface

and Web Services for integration purposes. The data

architecture is based on the multi-tenant concept,

with a single instance that enables multiple users to

access a shared data model with the separated data

of each customer.

The following business advantages are the key driv-

ers for the popularization of the SaaS model:

> Low cost of initial investments (CAPEX)

> Responsibility for data, operations and maintenance

shifted to the SaaS provider

> Pay-for-use model (OPEX cost-effectiveness)

> IT staff responsibility limited to integrating (if required)

and extending SaaS platform, both of which are rela-

tively easy

> Short setup time

A low entry cost means reducing the risk associated

with investments in software deployment. A very impor-

tant benefit of SaaS is that a customer can fully test

and verify the functionality of a real instance of the

application, before deciding to buy it. Also, the cus-

tomer does not invest directly in software and hardware

upgrades. Instead, they pay only for the use of the soft-

ware on demand by paying a monthly subscription fee

for access to the system, providing specified param-

eters. All these parameters must be specified before

signing an agreement with the vendor.

In simple applications the setup period on the ven-

dor’s side usually takes minutes or hours. In more

advanced cases, the setup may also require some

additional integration tasks on the customer side.

These tasks may include integration of local systems

with a remote service through an API, integration tests,

etc. SaaS vendors usually provide easy-to-use and

well-documented API with working examples attached.

Thus, the integration process takes less time than it

would when deploying a local instance of the system.

In addition, SaaS makes the Quality Assurance process

simpler than in typical deployment.

A customer usually accesses the application

through the Internet, but it is also possible to set up

a VPN or leased-line between a customer and the ven-

dor. Dedicated network connections may be required

for real-time operations when network link Quality-of-

Service influences the stability of company operations

or revenue-related processes.

SaaS providers generally charge per-user – system

core, additional features, extra bandwidth or storage.

Since the revenue stream for the SaaS vendor is usu-

ally more stable than for a typical software vendor, this

often results in new features that are directly requested

by users. Releases of new features are significantly

more frequent, since all customers can benefit from the

new functionality. The new features are often developed

according to best practices of each industry, because

the vendor has constant input from customers, based

on their everyday experience.

From a technical point of view, SaaS model imple-

mentations are characterized by:

> Multi-tenant architecture

> Centralized upgrades transparent to the customer

> Shared data model

> Application scalability

> Configuration & extensibility

> Web-based access to applications

> Security of data

> Business continuity assurance, often with geograph-

ically separated disaster recovery center

All these features translate directly into business ben-

efits – TCO optimization, flexibility and security.

a Bright or Dim Future for SaaS?

There have been a lot of rumors lately related to the

validity of the SaaS delivery model and the business

models around it. These have been stirred up by SaaS

providers struggling to achieve profitability and the

critical mass required. Certainly the large numbers of

SaaS start-ups are not helping the situation. However,

a tough and uncompromising economy has paradoxi-

cally brought SaaS into the spotlight, as businesses

are looking for ways to improve the bottom line. There

are some indisputable facts indicating that the future

will be more favorable for SaaS initiatives:

> People and companies alike are less inclined to

purchase licenses, hardware and other products

(copiers, cars, office space, etc.), turning instead

to service providers that rent them out; this leads

to subscription-based models that are increas-

ingly better understood by customers and widely

accepted

> Globalization of social networks and businesses

requires tools that are available at anytime, any-

where, including online; while improving internet

connection availability and speed helps on the con-

sumer side

> Availability of utility computing clears the way for

new ideas to evolve into productive innovations; this

leads to faster time-to-market, greater interest from

VC and revitalization of the entire SaaS sector

> Narrowly focused SaaS startups begin to combine

and form partnerships, creating entire value chains

for their customers, as well as up-sell and cross-sell

channels for themselves (as they cannot afford tra-

ditional types); this leads to mashups that can func-

tionally match best-of-breed software suits

> Even the market leaders can no longer turn their

back on SaaS. As an example, SAP, initially directing

their SaaS initiative solely towards the SMB market

(fearing cannibalization of their license and main-

tenance revenues), announced recently that they

intend to promote their on-demand offering to their

entire installed customer base.

The analysts’ predictions are also favorable. The SaaS

market is forecasted to grow at least twice as fast as

the general software market, reaching $13B in 2009,

and more than $20B in 2011. Some regions, such as

India or China, may see a compound annual growth

rate of up to 76% thru 2011. The market is also divided

into functional areas. While it began in CRM and HCM

(Human Capital Management), it has since spread into

web conferencing, collaboration, IT Services Manage-

ment and security.

One of the consequences of the SaaS boom has

been the growing demand for tools that would sup-

port billing processes for all these subscription-based

services; naturally, SaaS tools. This has proven to be

relatively easy, and such applications are already

available. But if a telco startup tried to use them, they

would clearly see that those tools are well-suited for

newspaper subscriptions or private wallet manage-

ment services. To bill a telco operator’s customers you

need something much more advanced, especially

if you have prepaid customers and want to charge

them in real time. That’s when you turn to a telco bill-

ing specialist.

Comarch Billing on Demand

Comarch has been involved in the on-demand mar-

ket since 2001 with our ERP package. Recently we’ve

expanded our SaaS offer by providing the Comarch

Billing SaaS service - a telecom-grade compact billing

system available in the SaaS model. The service sup-

ports typical business processes, including customer

management, product management, rating, invoic-

ing, dispatching, partner management processes

and customer self-care. Special care has been taken

to ensure user acceptance, with video trainings and

extensive documentation.

nr 2/2009 (10)

Operational Excellence < 37

Figure 2. Comarch Billing SaaS – GUI

Comarch’s solution supports billing processes ded-

icated to small/medium sized service and network

operators, with up to one hundred thousand subscrib-

ers activated in post-paid or pre-paid mode, in particu-

lar: ISPs, VOIP, IPTV and WIMAX operators.

Comarch provides a billing solution in the Soft-

ware-as-a-Service (SaaS) model, hosted at farms of

our own servers located at the Comarch Data Center

(CDC). The service can be accessed through the Inter-

net, a VPN or a leased line.

The service provides the following functionalities

to an operator:

> Offline Charging of the services that a customer

would like to pay after the service has been deliv-

ered (in post-paid mode). In the post-paid mode the

system charges sessions and provides rated CDRs

to the built-in invoicing module.

> Online Charging of the services that a customer

would like to pay in advance (pre-paid mode). For

pre-paid mode the system controls the customer

balance in real-time.

> Billing/Invoicing of the services in post-paid mode.

The system provides the following functionalities:

discounts and promotions, invoice creation, pay-

ment collection functionality, dunning scenarios

(reporting and actions such as account blocking).

> reporting and analysis Tool for analyzing business

data directly within edited documents. Users who are

not familiar with database technologies should be

able to use the analysis tool to conduct advanced

data analysis and present the results in the form of

a professional, presentation-ready report.

> Customer Care – a CRM tool that supports processes

necessary in everyday customer management: cus-

tomer management, order management and trouble

ticketing; regardless of whether the actual CC user

interface is used in the call center, front office or

back office.

The service can also be delivered with the following

additional modules:

> Top-Up and Voucher Management that can be

configured to deliver various methods of recharg-

ing and payments. It generates and validates PIN

codes that can, after some integration, be used

by customers via IVR, scratch cards, web pages,

ATM, etc.

> Self Care – telco consumer web-based interface for

self-management of accounts, contracted services

and personal data.

The broad competences of Comarch, active in various

sectors of the economy, allow us to bring even more

value to our customers. Comarch Billing SaaS is not

the only on-demand initiative, and soon we will be able

to offer additional services, preintegrated into a single

Telco as a Service platform, enabling our customers to

outsource virtually all their IT requirements:

> ErP – online application for all ERP needs, the first

Comarch on-demand offering

> IP PaBx – phone switch to provide all internal and

external phone communication, conferencing and

other advanced services

> Call Center – Call Center as a Service (called C2aS)

allows operators to distribute their Customer Ser-

vice Representatives, who use a supplied IP phone

with embedded VPN software to connect to the Call

Center application

> IP VPN – makes it easy to use distributed IP-enabled

devices in one virtual office network

> VoIP operator – with the addition of interconnection

to wholesale telco providers the platform can run the

VoIP provider operations

> Campaigns – from simple mailing to advanced loy-

alty program, we can support every initiative of the

Marketing Department, or even be one for our cus-

tomers

> Online Backup – provides a secure vault for docu-

ments and other files for the operator’s peace of

mind and regulatory compliance

> IPTV VoD – enables smaller IP operators to provide

their customers with a high-end VoD service.

This way, service providers will be able to outsource to

Comarch everything except for product management,

marketing communication and customer support; focus-

ing instead on core competences that will allow them to

differentiate their offering from their competition.

Conclusion

Deciding whether to use SaaS should be preceded by

a thorough analysis of service functionality, specifica-

tion of customer requirements and potential risks of

using on-demand software in the customer business.

However, for many medium-sized operators the answer

is already known, as Software as a Service is already

‘mainstream’. The benefits of using SaaS are not only

reducing CAPEX and OPEX costs, but sometimes even

shifting the full responsibility of a specified business

process to the service provider. Since, depending on

the application type, a potential failure on the vendor

side or network interruption can result in propagation

to the customer and its core business operations, the

customer should carefully verify how stable the service

provider is, not only from the technical, but principally

from the business point of view.

We are positive that Comarch is the right choice

as the billing SaaS provider, due to its global reach,

solid business foundations and extensive on-prem-

ise and on-demand experience. Basing the service

on our stable products, we can guarantee business

continuity, both short and long-term, with virtually no

limits in functionality or capacity. Ultimately, when an

operator’s business comes out of the nascent phase,

migrating the data and processes to their own on-

premise deployment is very easy. <<<

technology review [www.comarch.com]

38 > Operational Excellence

Comarch SAPosition: Product Manager

Department: Telecommunications

Business Unit

Info: Lukasz is currently responsible for

Billing in SaaS area, Comarch NGTV and CDS

in VAS area.

Comarch SAPosition: Senior Consultant

Department: Telecommunications

Business Unit

Info: Grzegorz is currently responsible for

presales consulting in the areas of sales

channel support, outsourcing/SaaS and

Comarch’s VAS offering.

Lukasz LuzarGrzegorz Kot

Comarch Billing on Demand

The solution is offered in the Software-as-a-Service

model, allowing an operator to use this fully func-

tional, powerful and modern billing system without

the need to purchase any licenses. An operator

can start their business without initial investment

in on-premise software and hardware. In the SaaS

model the operator only pays for setup and use of

the service. Our solution minimizes risk of invest-

ment (CAPEX) and maintenance costs (OPEX).

Top features:

> Provides a telco-grade billing solution from

a leading BSS vendor, in the SaaS model

> Supplies post-paid and pre-paid billing capabili-

ties

> Enables easy integration with open API

> Reduces investment (CAPEX) and operating costs

(OPEX)

> Offers Pay-Per-Use & Subscription pricing models

> Provides white-labeling capabilities of Customer

Self Care

> Facilitates easy migration to “on-premise”

model

> Guarantees constant innovation by reusing expe-

rience from Comarch on-premise deployments

nr 2/2009 (10)

Figure 3. Comarch Billing SaaS - Deployment

Network operator ComarchBilling SaaS

Network Billing System

Clearing-houses, other billers etc.

Customer Care

Self Care(white-label

product)

admin

End user

access toCustomer Care

access toSelf Care

Involces

EDrs

Invoices

Operational Excellence < 39

marginss/e/f – 4pt – 6p

technology review [www.comarch.eu]

Support System

An economic slowdown always pushes market players to reduce costs and pursue new revenue sources.

However, a more effective strategy is to employ the tenet of efficiency improvements as a continuous

cycle. The article describes the concept of the OSS system, which should not only promise to add value

to CSP, but also contain self-assessment and self-tuning mechanisms that can measure system per-

formance in business oriented KPIs and improve its performance. See how the concept of a continu-

ous improvement cycle implemented in the Next Generation Service Management solution can help CSPs

maintain profitability while under pressure to reduce time-to-market for new services. Find out about cus-

tomer service composition optimization, which aligns with the notion of Self-Organizing Networks.

Continuous business efficiency improvements within your operations

Self-tuning Operations

40 > Operational Excellence

marginss/e/f – 4pt – 6p

nr 2/2009 (10)

A period of economic slowdown

or even recession has

always been a time in which all market players try to

improve the efficiency of their business. All are seek-

ing new ways to reduce operation costs and maxi-

mize revenue. Tough times simply force every player

to fight for better efficiency. It is a game of survival.

However, it seems that improving business should be

a constant driver. The reality is that we need a painful

incentive to make the effort. Some experts even con-

sider a slowdown or a recession necessary therapy,

which, though painful, helps to heal the economy. This

is likely simply human nature, that during the period

of prosperity when the revenue stream is wide, we

don’t pay attention to small enhancements that do

not cause double digit revenue growth. We forget that

small enhancements carried out systematically and

methodically can bring a significant business improve-

ment. On a global scale, a continuous fight for effi-

ciency even during a period of prosperity might help

prevent a recession, or at least lessen the impact of

a slowdown. The next question is why we don’t actually

do something that seems so reasonable. The answer

is probably not only human nature, but also the fact

that efficiency improvements cost money. This is espe-

cially true for businesses that rely on complex systems

like telecommunication infrastructure. The answer to

this problem could be applying the IT technology that

not only supports operations, but also contains self-

tuning mechanisms.

The traditional approach to business optimiza-

tion is to apply business intelligence (BI) technology,

which works in the following way. First, it gathers data

from as many existing operations support systems as

possible and places it in a corporate data warehouse.

The purpose of the data warehouse is to give the data

business meaning, which involves OLAP (Online Ana-

lytical Processing) techniques. The business meaning

is expressed through KPIs (Key Performance Indica-

tors), which is the language understood by business

executives. KPIs measure how the business is run-

ning. Business measuring is a prerequisite for any

methodical optimization and the term KPI-driven busi-

ness captures that idea. KPIs that fall below expecta-

tions highlight highlight inefficiencies and optimiza-

tion opportunities.

The problem with the described business optimiza-

tion is that this process is rather slow. This is because

corporate BI systems are disjointed from operations

systems. It derives from the nature of the corporate

data warehouse, whose main goal is to shift from raw

technical data gathered from OSS systems, to the black

box business view. It means that there is no automatic

loop-back mechanism. Once inefficiency is detected

by examining KPIs, the corrective actions need to go

through the live decision flow process, rather than an

automatic loop back to the underlying OSS systems.

This means that the optimization cycle is slow.

The answer to this problem is applying a self-tun-

ing Operations Support System. A self-tuning system

can self-assess its added value and close the loop by

supporting the corrective actions in the case of dis-

covered inefficiency. The system self-assessment is

expressed through KPIs, which measure the business

performance of the process supported by the system.

The corrective action support includes identification

of the system configuration that needs to be ehanced

in order to improve business performance.

The need for self-tuning Operations Support sys-

tems becomes critical in times where Communication

Service Providers strive to shorten time-to-market for

new service introduction. However, fast often means

inefficient. The self-tuning platforms can answer this

problem by introducing optimization into the service

lifecycle.

reducing Time-to-Market and Maintaining Profitability

After the Internet and mobile revolution, Communica-

tion Service Providers (CSP) are forced to quickly pro-

vide composite services, combining fixed, mobile net-

work access with content based services. The winner

in this highly competitive environment is whoever can

provide compelling services to customers the fast-

est. However, the fight for new customers should be

balanced with profitability concerns. This problem is

highlighted in the recent industry report [1] published

by TMF Business Benchmarking. The report warns that

exciting new services can bring a Pandora’s Box of

additional complexity that can eat up profit.

The answer to this potential problem is leveraging

an OSS system with self-tuning mechanisms. The prob-

lem of fast new service introduction into the market is

addressed by hyped Service Delivery Platforms (SDP).

The main promise of this type of OSS system is reduc-

ing time and cost of new service introduction by lever-

aging reusable service components. This concept is

detailed in a separate white paper [2]. From the profit-

ability assurance point of view, it is important that this

kind of system contains the self-tuning mechanism.

First, it means that these systems should self-assess

their business effectiveness. Business effectiveness

should be measured by KPIs. The KPIs are expected to

enable business executives to validate the promise

of SDP, which is reduced time and cost of new ser-

vice introduction. The self-tuning mechanism means

that after identifying KPIs that do not meet business

goals, it is possible to track down the configuration

of the system that needs to be corrected. Examples

include: the ability to identify which service compo-

Operational Excellence < 41

marginss/e/f – 4pt – 6p

technology review [www.comarch.eu]

nents bundling, although deliverable, are not profitable;

and the ability to identify which technology based ser-

vice bundling is most profitable.

Efficiency Improvement as a Continuous Cycle

The introduction of a new Operations Support System

into a communication service provider (CSP) environ-

ment has always been driven by the hope of improv-

ing the efficiency of operations and thus improving

business results. Before any OSS product delivered

as COTS can start adding value, it must be integrated

with the CSP environment. This process involves tun-

ing the OSS product according to CSP requirements.

Traditionally, it was the only time during which the

OSS product was optimized to deliver the best pos-

sible outcome. The assumption was that once the

OSS product was configured, it should work without

a need for further tuning. Even throughout the period

in which the competitive environment did not force

rapid innovation rates, this approach lead to ineffi-

ciency, as improvement is innately an iterative pro-

cess. From a practical viewpoint, efficiency cannot be

achieved as a one off task. Instead, it should be done

step by step, with each optimization cycle ending by

assessing the improvement of KPI’s. This concept is

depicted below.

If the result is still not satisfactory, a further opti-

mization cycle can be started. The iterative approach

is cheaper and can lead to better results. The first

statement is true because it allows the CSP to start

with optimization that is easiest to implement. Prior to

further investment in optimization, the results of the

previous enhancement cycle can be measured. If the

KPI’s improvements are satisfactory, further improve-

ments can be delayed until new business goals are

set. The better results of the iterative improvements

derive from the “measure first” strategy, meaning that

the iteration is preceded by KPI assessment which

leads to fine tuning.

Self-assessment: a Way to Keep the Promise

All OSS systems claim to add value to the CSP environ-

ment, either by reducing costs of operation or extend-

ing CSP capabilities. But do they really do that? How

can it be checked? A good answer to this problem

can be found in the self-assessment mechanism that

should be provided by OSS products. The self-assess-

ment mechanism is a materialization of the “measure

first” concept introduced in the previous chapter, enti-

tled ‘Efficiency improvement as a continuous cycle’.

The provision of such mechanisms by OSS products

should be beneficial for both sides: OSS vendors and

CSPs. For an OSS vendor, the self-assessment mech-

anism can be the perfect way to highlight the ben-

efits of the solution. It may be an effective way to

convince a CSP to spend its hard earned money on a

truly valuable product. For a CSP, the self-assessment

mechanism provides a tool for validating promises

of the OSS vendor. Checking KPIs provides a method

for comparing the OSS vendors marketing materials

with real product performance. The ideal situation

from a CSP point of view is the possibility to organize

a “Proof of Concept” stage where vendors demon-

strate their products. Ability to compare the products

using hard metrics should make choosing the prod-

uct much easier.

The self-assessment mechanism of an OSS product

is not only a way for a CSP to validate vendor prom-

ises, but also is expected to facilitate the business

decisions process. Having OSS product performance

expressed in KPIs with business meaning should

enable the less technically oriented business execu-

tives to make more rational decisions. OSS KPIs are

Figure 1. Continuous improvement lifecycle

Improvement lifecycle

42 > Operational Excellence

marginss/e/f – 4pt – 6p

nr 2/2009 (10)

expected to bridge the gap between the technical

characteristics of an OSS system and the business

impact of the system.

Service Fulfillment KPIs

As the key benefit, hyped Service Delivery Platforms

reduce time-to-market for new customer services. Once

a new service is ready to be delivered to the customer,

the SDP should also reduce the time and costs of ser-

vice order fulfillment. It is important that this rapid service

introduction does not result in poor customer experience.

To be able to verify whether an SDP keeps its promises,

the appropriate KPIs must be defined.

Time-to-market is one of the basic KPIs that can

be used to verify the performance of any SDP prod-

uct. One way of measuring this KPI is registering the

time between introducing a new service into the ser-

vice catalog and the time the first customer order

can be fulfilled.

The ‘average time to fulfill the service order’ KPI is

a metric that can be easily traced, assuming that the

SDP exploits the order management solution.

The ‘average cost of fulfilling a service order’ KPI is

harder to measure using the OSS system unless the cost

metrics are defined per order fulfillment process step. As

an alternative, KPIs measuring the automation rate of

the fulfillment can be used. This is easier to measure in

the OSS system and has a more direct relationship with

the self-tuning mechanism. For example, KPIs express-

ing the number of manual steps vs. automatic steps of

service management can be used.

The quality of the fulfillment process can be mea-

sured using the percentage of service orders that

resulted in service incidents.

A useful insight can be gained by combining the

above KPIs with the network technology used to imple-

ment customer facing services.

The ability to measure SDP performance is useful,

but the ability to tune the system to improve the per-

formance is even more desirable. As the tuning mecha-

nism is related to the mechanism employed within the

solution, the self-tuning capabilities are described in

the subsequent chapter regarding the Comarch Next

Generation Service Delivery Platform.

Service assurance KPIs

Employing an OSS system in Service Assurance prom-

ises to reduce the time and costs needed to resolve

service incidents. An equally important benefit of this

solution is early service problem detection, which

means proactive capabilities. Network related prob-

lems that impact services can start to be resolved

before a customer experiences the problem.

Examples of KPIs that can be used to measure the

OSS performance in relation to fulfilling the described

benefits are: Average Incident Resolution Time (AIRT),

Average Incident Resolution Costs (AIRC) and percent-

age of problems by cause type. The proactive capa-

bility can be measured using the number of network

faults that affected customer service but had been

resolved prior to a customer issuing a complaint.

The AIRT is the easiest to measure, assuming that

OSS employs a BPM platform for managing incident

resolution processes.

The AIRC is more difficult to measure using the OSS

system unless there are cost metrics defined per inci-

dent resolution step. However, a good alternative is

introducing KPIs that measure the automation ratio.

These KPIs are easier to measure using the OSS sys-

tem and have a more direct relationship with the self-

tuning mechanism. Good examples of such KPIs are:

number of service incidents reported by a customer

which required manual root cause analysis, number of

network faults detected by the network which resulted

in manual correlation with other network faults.

The KPI percentage of ‘problem by cause type’ can

be even further detailed to identify which network tech-

nologies used to implement customer facing services

are the most fault prone.

The ability to measure service assurance KPIs is

half the story. The other half is the ability to tune the

solution to improve KPIs. The self-tuning capabilities

heavily depend on mechanisms employed within the

solution and this is why they are described in the sub-

sequent chapter regarding Comarch Next Generation

Service Assurance.

Service Fulfillment Tuning in NGSDP

Service Fulfillment is implemented in the Comarch

solution using the Next Generation Service Delivery

Platform (NGSDP). The main premise of this solution

is fast and cost effective introduction of new cus-

tomer services to the market. New service introduction

refers to the ability to deliver the services to custom-

ers. NGSDP also promises to reduce time and costs

of service order fulfillment.

The NGSDP provides a self-assessment mecha-

nism which can be used to verify how the solution

keeps its promises. The self-assessment mechanism

is based on KPIs provided by the NGSDP, which are

described in the previous chapter ‘Service Fulfillment

KPIs’. To describe tuning capabilities, some details on

the NGSDP must be provided.

The main concept is based on the premise that

customer services are not monolithic services, but, on

the contrary, are composed of service components.

The service composition is based on the SID model,

which assumes that Customer Facing Services can

be composed of Resource Facing Services.

The benefit of reducing time-to-market is real-

ized by leveraging the concept where new Customer

Facing Services (CFS) can be built up from reusable

service components represented by Resource Fac-

ing Services. Once the new CFS is defined in the ser-

vice catalog its decomposition to RFS is interpreted

by the service assembly process as a skeleton for

the delivery process. The whole idea is depicted in

the dedicated NGSDP whitepaper [2]. From the tuning

mechanism perspective it is interesting to analyze

the RFS interpretation. A Resource Facing Service

is also understood as a technical service encapsu-

lating the technology used to implement services.

This may lead to tuning which aims to identify the

most effective technology for customer facing ser-

vices implementation. For example, the Broadband

IP CFS can be leveraged for the second mile techni-

cal service and the Ethernet Aggregation RFS. As an

alternative technology, ATM Aggregation may exist.

The NGSDP provides KPIs defined per RFS. These

statistics enable the discovery of which technol-

ogy is better. For example, if the Average Time to

Fulfill a Service Order is higher for services based on

the ATM Aggregation RFS than those based on the

Ethernet Aggregation RFS, this may give a hint that

the Ethernet Aggregation is the more time effective

option. The higher the fulfillment order failures, KPIs

for the Ethernet Aggregation may indicate that this

technology is more fault prone. This type of interest-

ing analysis can also be conducted using the Ser-

vice Assurance KPI per RFS. This can indicate which

technology is optimal for Customer Facing Services

from the assurance point of view. Details regarding

assurance based KPIs tuning are provided in the

subsequent chapter.

The notion of discovering the best technology for

implementing Customer Facing Services means cus-

tomer service composition optimization is controlled

from the service catalog. The service composition

optimization and self-tuning capabilities align with

the ideas of Next Generation Networks (NGN), and

with Self-Organizing and Optimizing Networks (SON)

in particular. The SON idea can be perceived as opti-

mization within technical service components (RFSs),

with NGSM providing the service composition optimi-

zation. The service composition optimization is envi-

sioned as a way to bring the value of network opti-

mization to customers via Customer Facing Service

composition optimization.

Operational Excellence < 43

marginss/e/f – 4pt – 6p

technology review [www.comarch.eu]

Service assurance Tuning in NGSa

Service Assurance is implemented into the Comarch

solution using the Next Generation Service Assurance

(NGSA) model. The main premise of the product is time

and cost reductions for customer service assurance.

Additionally, the product aims to provide a proactive

solution, enabling issue resolution prior to a customer

experiencing a problem with the service. NGSA not

only promises to bring benefits, but also provides

self-assessment and self-tuning mechanisms. The

self-assessment functionality enables you to mea-

sure the performance of the solution and express

it using KPIs, allowing you to validate the business

value of the solution.

To describe the self-tuning mechanism, some

details of the NGSA must be provided. NGSA provides

a service meaning to the network related alarms col-

lected from the network. This “bottom-up” process is

accompanied by the “top-down” method, used to pro-

vide service incident resolution support when a cus-

tomer reports a complaint. The bottom-up process

means that network related alarms are translated into

the customer service impact. The top-down process

enables you to trace the customer complaint down

to root cause network resources. The idea of provid-

ing the service assurance meaning to the network

related data is depicted below.

The mechanism providing customer service mean-

ing to network related data is leveraged in the process

layer realized by the ITIL based library of processes.

The ITIL library implemented in NGSA provides service

incident and problem management processes, which

are the core assurance processes. The ITIL processes

operate using knowledge that gives service meaning

Figure 2. Service catalog’s CFS-rFS model as a skeleton for service composition

NGSDP

Other business unit Third Party Component

Service Layer

CFSIP

CFSIP

CFSIP

RFSIP

CFSTV

RFSTV

RFSIPRFS

FFTH

CFS

CFSTV Channel

RFSContent

Service LayerUser

TVIP

Program TV

44 > Operational Excellence

marginss/e/f – 4pt – 6p

nr 2/2009 (10)

to network related data and ensures efficient utiliza-

tion of this knowledge. The self-tuning mechanism

is based on identifying the gaps in this knowledge.

The knowledge is organized along the service cat-

alog TMF SID model, which decomposes Customer

Facing Services (CFS) through Resource Facing Ser-

vices (RFS) down to Resources (R). The basic SID CFS-

RFS-R model is augmented with assurance manage-

ment data. The most essential extension to the SID

CFS-RFS-R model is the alarm propagation model,

which captures the knowledge regarding translating

resource related events up to the customer facing

service impact. More details about the NGSA can be

found in the dedicated white paper [3].

The self-tuning mechanism is based on the most

detailed KPIs measuring the automation ratio. The KPI:

the number of service incidents reported by a cus-

tomer that required manual root cause analysis has

a direct relationship with the tuning mechanism.

A high value of this KPI may indicate that knowledge

defined along the CFS-RFS-R model is incomplete.

First in the tunning process, a customer facing ser-

vice (for which there are numerous customer com-

plaints whose root cause analyses involves manual

steps) must be identified.

Second, the resource type most frequently man-

ually indicated as the cause of the service incident

can be identified. Once it is determined, the knowl-

edge defined along the SID CFS-RFS-R model should

be updated. For example, it may be discovered that

the BlackBerry CFS is not mapped on the Authenti-

cation Service, whose outage impacts the customer

service. This tuning is intended to improve the auto-

mation rate, so it has an impact on more business

related KPIs, such as Average Incident Resolution

Time (AIRT) and Average Incident Resolution Costs

(AIRC). This tuning also improves proactivity levels.

Ability to better translate network related faults into

service impacts means early service issues detec-

tion. This means that service issues can start to

be resolved even before a customer experiences

a problem. This impact can be assessed by analyzing

improvements in KPIs describing the total number of

customer complaints. Early service issues detection

and proactiveness should result in a decrease in the

total number of customer complaints.

Figure 3. Providing the customer service meaning to network alarms

Customer Facing Services

Intermediate Services

Resource Facing Services

Network Resources

BlackBerry RIM Platform

Auth Server

BB for BusinessBB Prosumer

BSC

Customer BB

BB Instance

UTRAN

...

GERANSpecific BB Mechanism

Generic BB Mechanism

TransportBB Mechanism

BTS BTS BTS BTS BTS

t

Operational Excellence < 45

marginss/e/f – 4pt – 6p

Comarch SAPosition: OSS Product Manager

Department: Telecommunications

Business Unit

Info: Lukasz is currently responsible for the

Next Generation Service Management solu-

tion, specializing in service fulfillment.

Lukasz Mendyk

Further reading

1 “Next Generation Service Delivery Platform.

Integrated Service Fulfillment”, Comarch white

paper.

2 “How to move Service Assurance to the Next

Level”, Comarch white paper.

references

1 “Winning in a Shrinking World: Points to Con-

sider”, TMF Business Benchmarking, industry

update report.

2 “Next Generation Service Delivery Platform.

Integrated Service Fulfillment”, Comarch white

paper.

3 “How to move Service Assurance to the Next

Level”, Comarch white paper.

technology review [www.comarch.eu]

Conclusions

Comarch Next Generation Service Management not

only promises to reduce time and costs of introducing

new services to market, but also contains a mecha-

nism which allows CSPs to validate these benefits

and implement efficiency improvement as a contin-

uous cycle. NGSM can measure its performance by

means of business related KPIs, allowing a CSP to gain

insight into its operational efficiency. NGSM realizes

the measure first tenet, which is leveraged to imple-

ment efficiency improvements as a continuous cycle.

This feature appears extremely important as CSPs

are forced to shorten service innovation cycles. Fast

service introduction may lead to inefficiency, which

may eat up profits. Optimization organized in cycles

aligned with new service introduction cycles should

resolve this problem. NGSM covers both service ful-

fillment and service assurance, guaranteeing that

fast service introduction is not achieved at the cost

of degraded customer experience. NGSM provides

interesting optimization capabilities that enable us to

analyze which network technology is most effective

for customer service implementation. These analyses

enable us to optimize the service catalog built accord-

ing to the SID CFS-RFS-R model. The CSP can discover

which technology represented by the Resource Fac-

ing Service (RFS) is better suited for Customer Fac-

ing Service implementation. NGSM leverages the CFS-

RFS-R model as the customer service composition

mechanism which is a skeleton for service fulfillment

and service assurance processes. Optimizing the ser-

vice composition enables rapid improvement of CSP

operations. <<<

46 > Operational Excellence

marginss/e/f – 4pt – 6p

Fulfilling the promise of component-based service creationBoost the value of your network through an open service composer

Comarch Next Generation Service Management

Learn more at:ngsm.comarch.com