The Art of Billing Transformation Pat McCarthy Leader, Global Billing Association FMC/Triple Play...

The Art of BillingTransformation

Pat McCarthyLeader, Global Billing AssociationFMC/Triple Play Initiative November <>, 2005

(and Science)

2

The GBA

www.globalbilling.org © GBA 2005

The GBA provides a variety of platforms where vendors, customers and partners can share ideas about the issues facing the industry as a whole and discuss matters openly and frankly. We help operators fully understand the issues surrounding the implementation of new services and technologies irrespective of payment method, (prepaid, post paid, now pay are all covered), including the impact on the billing, payments and collections processes.

Key Activities:

• International benchmark program, now in 5th successive year

• Dedicated activities in Europe, Asia and North America – Global Events Series

• Program of Global Initiatives including: Triple Play, VoIP, DRM, Revenue Assurance & Fraud, Benchmarking and Payments Strategies

• Driving force behind international industry conferences

•200 operator member and associate member companies

•Sponsor members include: Amdocs, Azure, CSG, Convergys, eServ, Intec, LHS, Portal, Orga Systems, Telcordia & Teradata

For more info see www.globalbilling.org or email [email protected]

3

The GBA FMC/Triple Play Initiative


The GBA Initiative to investigate the opportunities and challenges driving the growth of Fixed Mobile Convergence and Triple Play services.

Key Activities:

• Sharing on experiences with GBA operator members and prioritisation of the top 10 issues

• Speaking at international events to promote discussion on importance billing to the success of fixed mobile convergence and triple play

• Promotion of theme of Transformation with a focus on the Business and Services aspects driving transformation in telco today

• Publication of white papers on topic in GBA and Industry publications

For more info see www.globalbilling.org or email [email protected]

4

n. A marked change, as in appearance or character, usually for the better.

Transformation: (trăns΄fôr mā΄shen) -

5

Lessons from other industries

Airlines Transformation– On-line booking, direct relationships, automate check-in– Low cost carriers, new business model

Banking Transformation– Transition from retail to online banking

Media & High Tech Transformation– Yahoo, eBay, Apple ,,, new business models

WINNERS REDEFINE THE MARKET

6

OSS Vendor Consolidation

Mergers & Acquisitions

3G

2.5G

2G

TechnologyAdvancements

VoIP

MVNO &Cable Plays

DisruptiveTechnologies

The Telecom World is Transforming

Wireless/Wireline Convergence

It’s a Mad, Mad, Mad, Mad World

7

Convenience

Fixed

Local

Price not

an issue

Price is

an issue

Use Restricted Use Anywhere

Fixed

National

Fixed

International

Value

Market DiscontinuityFixed Mobile Convergence

FMC


Use Anywhere

Mobile

SMS

Mobile

National

Mobile

Roaming

Mobile

International

Blackberry

Light Data

Mobile

Broadband

BROADBAND

8

Any service from any network delivered to any device

Personalized

IP

Wireless

Anchoring Truths…

Ultimately, everything that can be … will be …

9

Mobile minutes consumed by caller location

FACT: 40% of all mobile calls made within a few feet of the users’ landline

Source: OfCom, McKinsey 2004, RelevantC Note: Representative of average wireless subscriber in the UK, 2003

Omnia mutantur nos et mutamur in illis“All things change, and we change with them”

Wireline and Mobile revenues grow to $419 billion in FY08, source IDC, 2004

10

Transformation is Challenging

“There is at least one point in the history of any company when you have to change dramatically to rise to the next level of performance. Miss that moment and you start to decline.”

Andy Grove,Intel Co-founder and Chairman

“Despite all the changes in communication, plus all the innovation and productivity that the Internet has already delivered, this revolution has barely begun.”

Larry Babbio, Vice Chairman & President, Verizon

“We are all trying to find ways of reinventing these businesses. This is not a time for the faint of heart.”

Michael Sabia,

CEO, Bell Canada

Jack WelchCEO, General Electric

11

Our investors want to see new value added services that will grow revenue and the subscriber base – while reducing costs with a differentiated quality of service …all at the same time.

A Service Provider’s Perspective

What we really need is

Transformation

12

History of Transformation…

1995 - 2000

Speed was everything

Capital was plentiful

Large scale resystemizations started (few finished)

Legacy systems slated to be replaced

Network organizations dominant

Capital evaporated

Industry retrenched

Projects cancelled / rethought

Legacy systems extended

IT organizations became more dominant

2001 - 2004

13

Future of Transformation…

Today

Industry stabilizing

Winners / losers emerging

Consolidation beginning

Larger initiatives

Increased outsourcing

IT still king – it’s all software!

Future

Service & Network disaggregation

Services explosion – content is critical

Very high automation and customer self service

Marketing & customer service become the king

14

How Will Carriers Do It?

Effectively Manage, Adapt and Profit from the Telecom’s Industry Transformation?

Driveup

servicerevenue

Drivedown

operationalcosts

•Reduce manpower

•Simplify processes

•New ways of doing things

•Selected outsourcing

Driveup

businessagility

Focus on the

Customer Experience

•Customer centric services

•Pre & Post-Pay experience

•Improve quality - ‘Right first time’ serviceSource: Keith Willett TeleManagement Forum Presentation: Transforming Operations The telco of the future

•Service innovation

•Reduce time-market and time-cash

•Fast reactions ‘Turn on a dime’

•Business process automation

•Eliminate systems lock-down

•Real Time Enterprise

15

/

/

/

Transformation Examples

Transformation is not a destination

Complex

Large scale

Products & services

Multi-year vision with quick improvement

16

Execution Considerations

Carrier’s

Dilemma

“It’s not all Technical …”

Internal Politics

RegulatoryIssues

StrategicObjectives &

Priorities

Speed of Change

Managing theCustomer

Experience

Internal ITvs.

Integrators

Labor Force Reaction

Budget / Business Case

Shareholders’Interest

ManagingExpectations

Trusted Advice /Domain Expertise

17

Key Transformation Issues

5 Dimensions every Executive must consider

QUALITY OFSERVICE +

OPERATIONM

AN

AG

ING

RIS

K

PA

RT

NE

RIN

G

DEFINABLE

MEASURABLE

OBJECTIVESSPONSORSHIP

&

COMMITMENT

18



QUALITY OFSERVICE +

OPERATION

MA

NA

GIN

GR

ISK

PA

RT

NE

RIN

G

DEFINABLE

MEASURABLE


&

COMMITMENT

Corporate Sponsorship

- Who is responsible / accountable?

- Organizational blockers to real savings

- Centralized vs. Distributed decision making

- Board / CEO support and oversight

- Clear, articulated vision to all

- Achievable, first step !

19


QUALITY OFSERVICE +

OPERATION

MA

NA

GIN

GR

ISK

PA

RT

NE

RIN

G

DEFINABLE

MEASURABLE


&

COMMITMENT

Have clear goals

– Business Model with Key Performance Indicators (KPIs)

– Process architecture vision

– Interim Milestones / Quick Wins


20


QUALITY OFSERVICE +

OPERATION

MA

NA

GIN

GR

ISK

PA

RT

NE

RIN

G

DEFINABLE

MEASURABLE


&

COMMITMENT

Integration Risk– In-source vs. Outsource

– Managing suppliers effectively

– Complexity management

– Contingency planning

– Executive oversight & follow through


21


QUALITY OFSERVICE +

OPERATION

MA

NA

GIN

GR

ISK

PA

RT

NE

RIN

G

DEFINABLE

MEASURABLE


&

COMMITMENT

Must succeed First Time– Make the tough decisions

early

– Do it once, and do it right

– Continuous improvement

– You are never done

– Operational and Service Metrics


22


QUALITY OFSERVICE +

OPERATION

MA

NA

GIN

GR

ISK

PA

RT

NE

RIN

G

DEFINABLE

MEASURABLE


&

COMMITMENT

Pick the right partners– Real expertise &

experience

– Consider outsourcing the politics

– Consider long-term TCO, not just a project or product

– SIs, Technology Partners, and IT (who’s in charge?)

– Avoid unnecessary upscoping


23

Billing Transformation Examples

Facility Rationalization

Multi-System Billing projects

Multi-Country Billing projects

Customer Operations projects

Order flow-through

Pre and Post pay

Fixed & Mobile

Voice, Value Added Services

24

Complex, Risky, but Necessary

– Corporate survival and success

Pick the right partners to help you

– Domain expertise is critical

– It’s not just about technology

Summary - Focus

– What is often lacking is leadership Joint People, Change Management, Issue

Management

– Plenty of challenges to go around Selection of Project , success works…

– Joint Partnership Customer Management, Users, IT, Vendors, SI’s

The Art of Managed Transformation(and Science)

The Art of Billing Transformation Pat McCarthy Leader, Global Billing Association FMC/Triple Play...

Documents

Transcript of The Art of Billing Transformation Pat McCarthy Leader, Global Billing Association FMC/Triple Play...