Technology Assurance: A Challenge for RAFM in an Evolving Market. Jerusa Verasamy

Transcription

1 Technology Assurance: A Challenge for RAFM in an Evolving Market Jerusa Verasamy

2 Agenda 1. Revenue Assurance and Fraud Management Definition Explanation of Leakage Positioning of RAFM in an organization Roles and Capabilities 2. Technology Assurance The role of TA TA tools Applicability of TA to other industries Benefits of the approach 3. RAFM Frameworks and Standards 4. Why the need for RAFM 5. Challenges based on the market moving to a digital world

3 What is Revenue Assurance and Fraud Management? Revenue Assurance and Fraud Management (RAFM) Revenue Assurance The use of data quality and process improvement methods that improve profits, revenues and cash flows without influencing demand. TM Forum Fraud Management Fraud refers to an intentional or deliberate misuse of services by a subscriber or partner in order to gain an unfair advantage or to avoid payment for services used. Fraud Management is an organizational activity focused on the detection and prevention of fraud.

4 What is Leakage? Both Revenue Assurance and Fraud Management help to identify leakages in the business Loss of revenues due to: The most common type of leakage; failing to charge correctly for a service provided, e.g. Provisioning failures. Revenue Leakage an inability to provide service (e.g. Network downtime) Service delays (e.g. Delays in provisioning) Business decisions not to charge for the service utilised (e.g. How the business rounds duration of calls) Opportunity Loss Total Leakage Cost Leakage Being overcharged by a third party: Dealer commissions Interconnect partner settlements Roaming partner settlements Content partner settlements

5 Board, Executive Committee, Audit Committee How does RAFM fit into an organisation? 1 st Business Operations: Process Owners RISK & CONTROL Primary Control Performance Implement Change Incident Remediation First Line Business operations which should perform day-to-day risk management through their own control environment and ensure RA are informed of incidents. 2 nd Oversight: Revenue Assurance RISK & CONTROL Secondary Control Performance Control Oversight Consolidated Reporting Second Line Revenue Assurance provides oversight and coordination: perform controls, quantify and report incidents, assess control effectiveness and oversee control design. 3 rd Independent Assurance: Internal/External Auditors Independent Assurance Providers RISK & CONTROL Provide Independent Challenge and Assurance Third Line Provide independent scrutiny of the levels of assurance provided by both the process owners and Revenue Assurance

6 What are the RAFM roles? Executive engagement and influencing Stakeholder engagement and influencing Building capabilities across organization to support RAFM Oversight of primary and secondary operations and performance Contributing to and ensuring the implementation of Best Practice Leadership Controls & Process Technical Assurance Operations Measurement

7 Technical Assurance Operations Controls and Process Measurements What are the capabilities within RAFM? Framework design & implementation Control design Change assurance Assessment review Best practice Improvement management Framework design & implementation Reporting and analysis Stakeholder management Assessment measurement Benchmarking Global system template design Technology assurance Vendor selection Control solution design Vendor oversight Operational planning DQ management Control performance Root cause analysis Incident management

8 The role of Technology Assurance Technology Roadmap Definition Architecture Management Delivery Management Strategic Alignment Development Management Transformational Assurance Governance Management Tactical Assertion Configuration Management Data Management Incident Support Operational Monitoring Key Stakeholder Focus: Operating Companies RAFM teams Vendors Technology Unit Business Risk Management Finance and Marketing Units

9 Future Preparedness Low Medium High Technology Assurance Tools Supplier Landscape and Constraints No vendor with market leading position when it comes to future preparedness Machine learning Big data analytics platform Data Science No vendor is risking initiating developments but rather waiting for individual customer requirements Large vendors focused on BI solutions interfacing RAFM databases, niche players focused on cloud solutions etc Basic view on future roadmap with no ongoing research and development activities. Niche players Medium Scale Vendors Large scale Vendors Type of Vendor

10 Business Applicability of TA: The use of Generic OSS/BSS Stack Secondary Controls Our Network Carrier invoice Interconnection Carrier Customer Retail Billing Interconn. Billing Interconn. Billing Retail invoice CDR CDR Reconciliation Control invoice Carrier invoice CDR Network Layer Data from network elements is fed into RA tool for analysis. Controls performed by RAFM are secondary and detective in nature. RA Tool

11 Operations Alignment Key Performance Areas Business Applicability of TA: The influence on Primary Controls Business Strategy Technology Strategy Minimizing leakages Proactive assurance policies Transforming Operating model Service Model to enable Economies of Scale Digital Strategy Consolidation of Technology across the organisation RAFM Strategy Financial Improvement Best practices for RAFM Capability maturity Enabling the future state RAFM Technology Assurance Strategy Enabling Technology and RAFM strategy Common model for technology rollouts Vendor Management Programs and Projects Project selection demand management Communication and participation across teams Governance inclusive of relevant stakeholders Collation of RAFM best practices Operations Common model for consolidation of technology Knowledge management and training Enablement of RAFM impacting projects across organisation

12 Benefits of Technology Assurance General Controls Entity level controls Service Management Automation/Architecture and workflows Business resilience and continuity Primary Controls (Proactive + Preventative Controls) Configuration Reviews Contract Frameworks Governance and Compliance Legal and Regulatory Secondary Controls (Detective + Reactive Controls) XDR Reconciliations XDR Rate Verifications Usage Analysis Trending Analysis End to end improvement in control coverage and quality.

13 RAFM Frameworks and Standards The Revenue Assurance Maturity Model Optimizing RAMM - Was built with similar principles and goals as the CMMI, focusing on RA processes and business targets. The TM Forum published RAMM V1.0. in Since that time it has become a recognized industry standard for assessing the maturity of revenue assurance operations. Dependent Ad-hoc, chaotic. Dependant on individual heroics. Repeatable Basic project/ process management. Repeatable tasks. Defined Standardized approach developed. Designing-in control commences. Managed Leakage quantitatively understood and controlled. Continuous improvement via feedback. Decentralized ownership and holistic control

14 Organization Process Measurement Technology The Revenue Assurance Maturity Model Provides a method to assess the maturity of business activities that should deliver revenue assurance objectives based on a quantitative maturity model Maturity Model Assessment Areas: RA strategy RA objectives, goals & incentives Organizational fit Sponsorship, ownership, accountability and responsibility of RA Skill set of RA team Business knowledge Relationship with other departments Staffing levels Communications RA planning & review Use of risk management techniques Change management involvement & sign-off In-life product reviews Operation of primary controls Operation of secondary controls Investigation of discrepancies Correction of identified issues RA reporting Adoption & sharing of industry best practice. Measurement framework RA control structure Risk mitigation RA control coverage & data quality Leakage & benefits RA control efficiency RA control effectiveness RA productivity metrics Unmeasured leakage Technology strategy Technology acquisition Functionality of RA tool set Access to information Data analysis Use of RA technology Ease of use Degree of automation Revenue coverage Supplier management

15 Other RAFM Standards

16 Why the need for RAFM? Fraud Experts agree that most CSPs are losing 3 to 10 percent of their income to fraud, and the numbers are growing every year Experts estimate that annual fraud losses in 2015 = US$ 38.1 billion Leakage More than 50% of CSPs across the Middle East & Africa face revenue leakage up to 1.5% of their total revenue 40% of CSPs recover up to 10% of leaked revenue from subscribers and partners Skills and Tools Significant number of RAFM teams across CSPs do not possess the analytical and technical skills required. 79% of Telcos use RA / FM tools (includes partial automation) Emerging markets, where new products and services are being introduced rapidly, are prone to higher leakage. Maturity RAFM maturity in the Middle East and Africa region ranks lower than its Asia-Pacific and American counterparts Sources: KPMG Global Revenue Assurance Survey TM Forum RA Survey CFCA Global Fraud Survey

17 What are the challenges moving forward Non availability of skill sets Lack of Robust Technology Challenges The transition into Digital Forces a change in the current view of controls, frameworks and quantification of revenue and leakage. Demands realtime measurement and mitigations. Shift in the skillset requirements that are already in shortage. New Product Offerings Outdated Frameworks and Standards Limited Time to Market for Products

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