Analisys Mason Modern Inventory Systems Jan2014 Samples TOC RMA02
Transcript of Analisys Mason Modern Inventory Systems Jan2014 Samples TOC RMA02
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© Analysys Mason Limited 2014
Modern inventory management systems: market review and pricing models
Research Report
Modern inventory management systems:
pricing models and market review
January 2014
Mark H. Mortensen and John Abraham
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© Analysys Mason Limited 2014
Modern inventory management systems: market review and pricing models
Contents
6. Executive summary
7. Executive summary
8. The modern inventory management systems innovation adoption curve
9. Recommendations
10. Recommendations for CSPs
11. Recommendations for suppliers
12. Market definition
13. Telecoms software market segmentation
14. Service fulfilment sub-segment definitions
15. Inventory management
16. General requirements of modern inventory management systems
17. Traditional fixed service fulfilment information flow
18. Modern service fulfilment information flow
19. Inventory management system transformation projects are phased
20. Specific features and functionality of inventory management systems [1]
21. Specific features and functionality of inventory management systems [2]
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22. Business environment
23. Inventory management systems vendor market shares [1]
24. Inventory management systems vendor market shares [2]
25. The inventory management system market will continue to grow as
federation and transformation projects increase
26. As transformations increase, the inventory system market will shift its
focus towards IP infrastructure, IT-like equipment, and services
27. We include outside plant systems as part of the engineering systems
sub-segment of service fulfilment
28. The business environment in 2012 –2013
29. Regional outlook
30. Pricing models
31. System comparisons and historical pricing models
32. Ericsson is primarily a services and equipment company, but Granite
Inventory is very configurable software
33. Ericsson also acquired the traditional RBOC inventory management and
design systems from Telcordia – these are still in use today
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Contents
34. Amdocs is a BSS powerhouse and gained a strong inventory
management system offering when it acquired Cramer
35. NetCracker operates as a separate division of NEC and is involved in
services work as well
36. Oracle has grown by acquisition and integration
37. Current pricing models in effect and potential changes
38. Methodology and pricing model considerations
39. Pricing models used by most vendors
40. Larger enterprise-level deals, and one of the major vendors structuresits prices according to the number of items in the inventory
41. Another major vendor uses a very complex pricing model
42. New pricing models are beginning to emerge, driven by the move to
‘flow-through’ provisioning
43. Vendor snapshot
44. Amdocs
45. Comarch
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46. Ericsson
47. NEC/NetCracker
48. Oracle
49. Visionael
50. Vendor analysis
51. Vendor analysis summary: geography and service [1]
52. Vendor analysis summary: geography and service [2]
53. Mergers and acquisitions
54. Mergers and acquisitions
55. About the authors and Analysys Mason
56. About the authors
57. About Analysys Mason
58. Research from Analysys Mason
59. Consulting from Analysys Mason
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Modern inventory management systems: market review and pricing models
List of figures
Figure 1: Inventory management systems features’ position on the
innovation adoption curve, worldwideFigure 2: Telecoms software market segments
Figure 3: Definitions of service fulfilment sub-segments
Figure 4: Inventory management system key functions
Figure 5: Traditional fixed service fulfilment information flow
Figure 6: Modern service fulfilment information flow
Figure 7: Typical phased IM system transformation process
Figure 8: Inventory management market shares by revenue, worldwide,
2012
Figure 9: Inventory management system revenue, worldwide, 2012 –2017
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Figure 10: Inventory management system revenue by region, worldwide,
2012 –2017Figure 11: Inventory management system revenue by telecoms service,
worldwide, 2012 –2017
Figure 12: Fixed network planning and optimisation software suppliers’
market share by revenue, worldwide, 2011
Figure 13: Oracle’s BSS/OSS coverage overview
Figure 14: Inventory management system pricing model, a major vendor
Figure 15a –b: Comparison of service fulfilment suppliers by region and
service sector
Figure 16: Key mergers and acquisitions in the service fulfilment market,
2004 –2011
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Modern inventory management systems: market review and pricing models
About this report
Our last report that focused on inventory management (IM) systems was published nearly a decade ago. At that time, IM systems
were just making their way into a market dominated by spreadsheets and home-grown relational database systems. Now, nearly allcommunications service providers (CSPs) have implemented IM systems from commercial vendors for their new services and
many are undergoing transformation projects to consolidate the many legacy IM systems still in use.
This report focuses on:
the functionality of modern IM systems
how IM systems fit into the overall BSS/OSS architecture
how modern IM system transformation projects are implemented
23 vendors in the IM systems market, particularly the top-six in terms of revenue in 2012 – Ericsson, NEC/NetCracker, Amdocs,
Oracle, Visionael and Comarch
the pricing models that leading vendors have adopted.
This report is aimed at:
newcomers to this area, who will find substantial tutorial information and a review of the major players in the IM systems market
all CSPs (fixed and mobile) that are embarking on a transformation project to replace and consolidate their IM systems and seek
to understand more about the advantages and disadvantages of the various strategies
CSPs that wish to know the areas of proven – and speculative – innovations in modern IM systems and understand the best
current practices
software vendors that wish to benchmark their IM systems against an industry maturity curve.
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Modern inventory management systems: market review and pricing models
Modern service fulfilment information flow
Modern service fulfilment architecture blurs the traditional
OSS/BSS lines.
Orders from CRM or subscriber management systems are
passed to customer order orchestration systems that
decompose complex, multi-product orders and orchestrate
the overall order.
Sub-orders are passed to multiple service fulfilment
technology stacks for further decomposition, management,
design and assign, and activation. Some sub-orders go to the
systems of partner CSPs or third-party vendors.
Activation systems directly interfaced with customer order
orchestration (or OM) systems when a simple activation is
required.
The BSS and OSS components each need data about the
products and services required in order to fulfil the orders.
This data is stored in multiple product catalogues, federated
or manually synchronised.
Engineering systems have evolved into full systems, withdatabases integrated into inventory and other service
fulfilment OSS systems and processes.
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Figure 6: Modern service fulfilment information flow [Source: Analysys
Mason, 2014]
Customer order orchestration
Activation
Order management Activation
NMS/EMS fortechnology B
Servicedelivery
platforms(SDPs)
Network andelement
managementsystems
(NMS/EMS) fortechnology A
Activation
Order management
Inventory Inventory
CRMSubscriber
management
Partner CSPs,third-partyvendors
Customer care
Servicefulfilment
E n
g i n e e r i n g s y s t e m s
Catalogue
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Modern inventory management systems: market review and pricing models 55
Executive summary
Recommendations
Market definition
Business environment
Pricing models
Vendor snapshot
Vendor analysis
Mergers and acquisitions
About the authors and Analysys Mason
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Modern inventory management systems: market review and pricing models
About the authors
Mark H. Mortensen (Principal Analyst) is the lead analyst for Analysys Mason’s Customer Care and ServiceFulfilment research programmes, which are part of the Telecoms Software research stream. His interest areas
include customer self-care, automation of fulfilment processes, and data and software architecture for agile, real-
time systems. The first 20 years of Mark’s career were spent at Bell Laboratories, where he distinguished himself by
starting software products for new markets and network technologies, and designing the interaction of BSS/OSSs
with the underlying network hardware. Mark was Chief Scientist of Management Systems at Bell Labs, and has also
been president of his own OSS strategy consulting company, CMO at the inventory specialist Granite Systems, VP
of Product Strategy at Telcordia Technologies, and SVP of Marketing at a network planning software vendor. Mark
holds an MPhil and a PhD in physics from Yale University and has received two AT&T Architecture awards for
innovative software solutions. He is also an adjunct professor at UMass Lowell in the Marshall School of
Management, specialising in business strategy.
John Abraham (Analyst) is a member of Analysys Mason’s Telecoms Software research team and contributes to
the Revenue Management , Service Fulfilment and Customer Care programmes. He has more than five years’
experience in the telecoms industry. He has worked for a global OSS vendor and implemented revenue
management solutions for Tier 1 telcos in Europe, India and the Middle East. John joined Analysys Mason in early
2012. He holds a bachelors degree in computer science from Anna University (India) and an MBA from Bradford
University School of Management (UK).
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Modern inventory management systems: market review and pricing models
About Analysys Mason
Knowing what’s going on is one thing. Understanding how to take advantage of events is quite another. Our ability to understand the
complex workings of telecoms, media and technology (TMT) industries and draw practical conclusions, based on the specialistknowledge of our people, is what sets Analysys Mason apart. We deliver our key services via two channels: consulting and research.
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Consulting
Our focus is exclusively on TMT.
We support multi-billion dollar investments, advise clients on
regulatory matters, provide spectrum valuation and auction support,
and advise on operational performance, business planning and strategy.
We have developed rigorous methodologies that deliver tangibleresults for clients around the world.
For more information, please visit www.analysysmason.com/consulting .
Research
We analyse, track and forecast the different services accessed by
consumers and enterprises, as well as the software, infrastructure
and technology delivering those services.
Research clients benefit from regular and timely intelligence inaddition to direct access to our team of expert analysts.
Our dedicated Custom Research team undertakes specialised and
bespoke projects for clients.
For more information, please visit www.analysysmason.com/research .
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Modern inventory management systems: market review and pricing models
Research from Analysys Mason
We provide dedicated coverage of developments in the telecoms, media and technology (TMT) sectors,
through a range of research programmes that focus on different services and regions of the world.
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Alongside our standardised suite of research programmes, our Custom Research team undertakes specialised, bespoke research
projects for clients. The dedicated team offers tailored investigations and answers complex questions on markets, competitors and
services with customised industry intelligence and insights.
To find out more, please visit www.analysysmason.com/research.
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Modern inventory management systems: market review and pricing models
Consulting from Analysys Mason
For more than 25 years, our consultants have
been bringing the benefits of applied intelligence
to enable clients around the world to make
the most of their opportunities.
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Our clients in the telecoms, media and technology (TMT)
sectors operate in dynamic markets where change is
constant. We help shape their understanding of the future
so they can thrive in these demanding conditions. To do
that, we have developed rigorous methodologies that
deliver real results for clients around the world.
Our focus is exclusively on TMT. We advise clients on
regulatory matters, help shape spectrum policy and develop
spectrum strategy, support multi-billion dollar investments,
advise on operational performance and develop new
business strategies. Such projects result in a depth of
knowledge and a range of expertise that sets us apart.
We help clients solve their most pressing problems,
enabling them to go farther, faster and achieve their
commercial objectives.
To find out more, please visit
www.analysysmason.com/consulting .
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Modern inventory management systems: market review and pricing models
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