RA Survey Appendix 1. All questions and answers and Additional insights. TM Forum Revenue Assurance Team TM Forum 1 V2015.4

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1 RA Survey Appendix All questions and answers and Additional insights TM Forum Revenue Assurance Team 06 TM Forum

2 All questions and answers Respondent Profiles Page RA Organizations and Maturity Page 0 Strategy and Change Page 8 Coverage Page 8 Technology Page People and Communication Page 8 Risk Management and Control Page 0 Performance and Reporting Page 7 06 TM Forum

3 Respondent from Operational Company vs. Headquarter function -. What type of Revenue Assurance function do you represent? 6.07%.9% Operational company Revenue Assurance function Headquarter Revenue Assurance function About out of respondents work in an operational company. Remark: The questions of this survey were designed to cover a wide range of strategic and operational aspects. 6 valid responses 06 TM Forum

4 Separate RA department -. Does a separate Revenue Assurance department (organizational unit) exist within your company? 79.% 0.% Yes No have an RA department (org unit). The majority of organizations without an RA department are led in the Finance organization. Others are led business support, quality and process as well as Product Management organizations. All level maturity cases (highest level) have a separate organization unit for Revenue Assurance. 6% of the organizations with a separate RA department have maturity levels - vs. % where no separate organization exists. 0: 9%. 0: 8% 6 valid responses 06 TM Forum

5 Separate RA department Additional insights Location of RA leadership in cases of high maturity (Level ) where not separate RA organization Other Internal Audit Customer Relationship/ Support Business Support Directly under CEO 80 Product Management Risk Management Billing Operations Finance No Yes Almost of the RA functions without a dedicated RA organization are located in Product Management and Billing operations. The majority of these organizations are distributed. 06 TM Forum

6 Years of existence of RA department-. For how long has the Revenue Assurance department been in existence? N/A 7.% longer than 0 years 8.08% 8 to 0 years.8% to 7 years.66% to years 7.% less than years 8.% 0: 7% less than years, 6% -6 years, 6% 7-9 years, 9% over 9 years 6 valid responses 06 TM Forum 6

7 Years of existence of RA department Additional insights Years of existence vs. centralization level of the RA function Widely distributed: Over 7% of the Revenue Assurance tasks are performed outside the Revenue Assurance core function Moderately distributed: 0-7% of the Revenue Assurance tasks are performed by other departments/ are outsourced Moderately centralized: - of the Revenue Assurance tasks are performed by other departments/ are outsourced Mostly centralized: -% of the Revenue Assurance tasks are performed by other departments/ are outsourced Completely centralized: Centralization of Revenue Assurance tasks less than years to years to 7 years 8 to 0 years longer than 0 years N/A Slight correlation of years of existence of the RA function vs. the level of centralization (becoming more centralized with age). However, there are indications of increasing distribution levels starting from years onwards. 06 TM Forum 7

8 Organizational location of RA lead -. Where is the lead of the Revenue Assurance department positioned within your organization? Internal Audit Product Management Business Support Customer Relationship/ Support IT/ Network Directly under CEO Quality Other Risk Management Billing Operations Finance.7%.7%....%.79%.79% 6.6% 6.8% 6.07% 6% of the RA functions are led in the Finance organization. 7 out of 0 of the higher maturity cases (levels -) were reported in Finance and Risk Management functions. Maturity cases are in Finance, Risk Management and directly under CEO level only. The answer option Quality is raising. But such cases where only reported in Africa and Asia. These RA organizations have a lower average maturity level and exist on average for years. 0 survey: 7% in Finance, % in Risk Management rest in others. 0: 7% 6 valid responses 06 TM Forum 8

9 Level of RA function distribution -. What is the level of distribution of your Revenue Assurance Function within your company? Widely distributed: Over 7% of the Revenue Assurance tasks are performed outside the Revenue Assurance core function 8.% Moderately distributed: 0-7% of the Revenue Assurance tasks are performed by other departments/ are outsourced 8.% Moderately centralized: - of the Revenue Assurance tasks are performed by other departments/ are outsourced.6% Mostly centralized: -% of the Revenue Assurance tasks are performed by other departments/ are outsourced.9% Completely centralized: Centralization of Revenue Assurance tasks 9.7% 7 out of 0 Revenue Assurance functions are mostly or completely centralized. Higher maturity levels were reported in completely centralized, moderately centralized and moderately distributed organizations. Level was reported only in completely and mostly centralized RA organizations. 6 valid responses 06 TM Forum 9

10 Number of FTEs on RA activities - 6. How many people (in FTE - Full Time Equivalent) work on Revenue Assurance activities? N/A.% > 00 FTE 7.% 00 FTE. 0 FTE 7.% 0 FTE.8% 6 0 FTE.66% FTE 6.7% < FTE. RA 0 survey: <, % -, 6-0, % -0, % -0, 8% over 0 0: smaller than 6 valid responses 06 TM Forum 0

11 Other roles performed by the RA function outside primary RA activities 7. What other roles are performed by the Revenue Assurance function that you consider are not primary RA activities? Business partner management.9% Risk management 8.08% Customer/ commercial analytics 0.% Credit control 0.8% Fraud management 7.6% 0 survey: risk management %, fraud, credit control %, business partner management % (customer /commercial analysis: new in 06) 6 valid responses 06 TM Forum

12 Other roles performed by the RA function outside primary RA activities Additional insights Most frequent Role profiles correlated with maturity OVERALL AVERAGE.9 Business partner mgmt. & Customer/ Commercial analytics. Risk mgmt..0 Risk mgmt. & Fraud mgmt. & Credit control.0 Risk mgmt. & Fraud mgmt.. Business partner mgmt. Fraud mgmt. & Credit control Credit control Customer/ Commercial analytics RA only Fraud mgmt. The highest average maturity scores were reported for RA organizations who perform business partner management and customer/ commercial analytics roles in extension to regular RA activities. Average maturity is the lowest for RA role combinations Risk Management and Credit Control and Risk Management and Fraud Management as well as Fraud Management scored the lowest average maturity levels. Remark: Role profile combinations with fewer than occurrences are not displayed. TM Forum Community Comments More mature organizations have RA increasingly involved in non-traditional RA activities such as business partner management and commercial analytics to enable end-to-end business process coverage. 06 TM Forum

13 Other roles performed by the RA function outside primary RA activities Additional insights Most frequent Role profiles correlated KPI set type non financial/ secondary KPIs Leakage identification only Recovery only Leakage identification and recovery Revenue loss prevention Comprehensive KPI set Fraud mgmt RA only Customer/ Commercial analytics TM Forum Community Comments Credit control Fraud mgmt. & Credit control Business partner mgmt. Risk mgmt. & Fraud mgmt. Risk Management focused RA organizations use wider ranges of KPIs with more preventative characteristics. Risk mgmt. & Fraud mgmt. & Credit control Business partner mgmt. & Customer/ Commercial analytics Risk mgmt. 06 TM Forum

14 Region of main operations 8. What is the main geographical region in which your company operates? Australia / Oceania.% Middle East.% Latin America 6.6% North America 6.8% Eastern Europe 7.% Africa 8.9% Asia 9.86% Western Europe.97% 0 survey: Western Europe: 6%, Latin America %, Asia %, Eastern Europe: %, Africa %, North America 7%, Middle east 7%, Australia/ Oceania % 6 valid responses 06 TM Forum

15 Lines of business - 9. What line(s) of business does your company have? ehealth 6.8% Telematics 0.96% Payment solutions 7. Cable.9% TV 6.99% Operator/Wholesale.% Wireline 9.9% Internet 7.% Mobile 80.% Most of the respondent s companies have multiple business lines. Only a handful of companies represent specialized Telcos e.g. in TV or other special/ new service areas. RA survey 0: Wireline %, Mobile 86%, Internet 6%, cable, wireline %, Other % 6 valid responses 06 TM Forum

16 Number of customers (subscriptions) - 0. How many customers (in millions) does your company have for subscription based services? > 0 million 0.96% 0 to 0 million.7% 0 to 0 million 0.7% to 0 million 7.8%. to million.% 0. to. million.6% < 0. million.% About half of the participating companies have above million customers. There is a slight correlation of maturity with the number of subscriptions. The majority of Level maturity cases have been reported for 0M and more subscriptions. 6 valid responses 06 TM Forum 6

17 Number of customers (subscriptions) Additional insights Operator size (number of subscription customers) vs. level of organizational distribution of RA function 0 < 0. million 0. to. million to million to 0 million 0 to 0 million 0 to 0 million > 0 million Widely distributed: Over 7% of the Revenue Assurance tasks are performed outside the Revenue Assurance core function Moderately distributed: 0-7% of the Revenue Assurance tasks are performed by other departments/ are outsourced Moderately centralized: - of the Revenue Assurance tasks are performed by other departments/ are outsourced Mostly centralized: -% of the Revenue Assurance tasks are performed by other departments/ are outsourced Completely centralized: Centralization of Revenue Assurance tasks There is a slight correlation of the number of subscription customers vs. the level of centralization (becoming more centralized with size). 6 valid responses TM Forum Community Comments There are two main causes for RA decentralization.. Very low RA maturity, in this case RA activities are done by solitary heroes distributed across the organization.. Very high maturity in which RA is intentionally distributed across the organization. High decentralization of RA in small operators could be an indicator that the mature, highly decentralized RA vison has not yet become practice. 06 TM Forum 7

18 Annual revenues -. What is the annual revenue (in million US$) of your company? > 0000 million US$.07% 000 to 0000 million US$ 7.% 000 to 000 million US$.9% 0 to 000 million US$.66% 0 to 0 million US$ 8.9% < 0 million US$ 0.96% About half of the participating companies reported revenues above 000 M$. There is a slight correlation of the amount of revenues with maturity. Level maturity cases have been noticed in several of the revenue groups. 6 valid responses 06 TM Forum 8

19 Respondent s position-. What is your position in your company? Head or Executive which includes Revenue Assurance as a responsibility.79% Other 9.8% RA Manager. RA Practitioner.9% Head of RA department or functional head 0.% 6 valid responses 06 TM Forum 9

20 RA maturity scores. What is your overall RAMM maturity score?.% 8.77% 0.8% 0.% 6.% RA survey 0 average score:, (0:.). Level : +9% (9% higher this year); Level : + %; Level : same; Level : -8%; Level : -% Remark: For maturity correlation purposes the detailed scores were rounded down to the next level e.g..8 is rounded down to level i.e. level achieved. In appendix (light benchmarking) the detailed scores were used. The rounding down effect is 0. points on average for the 7 affected respondents. 6 valid responses TM Forum Community Comments As compared to the 0 and 0 RA surveys participants stated on average more conservative overall maturity levels. Overall the change could be explained that the RA community is seeking better understanding of the key elements that drive business value and to increase maturity in a more strategic way. I.e. due to the exposure to the Revenue Assurance Maturity Model: RAMM v was provided for free for the assessment. 06 TM Forum 0

21 RA maturity scores Additional insights Percentage of participants who performed the RAMM assessment for maturity Region independent average 6.% Western Europe.9% North America 0.0 Middle East.% Latin America.% Eastern Europe.0 Asia.% Africa 8.% out of globally used the detailed RAMM assessment for the evaluation of maturity (max digits after the comma). The RAMM assessment was made use of most in Western Europe, Latin America and the Middle East. 06 TM Forum

22 RAMM topic maturity scores (/) -II. What are your RAMM Topic Level scores?. Skill Set Of RA Team Overall Average of profile.0..6 Business Knowledge.9 Coverage of RA Technology.0.8 Staffing Levels..8 Degree Of Automation.6 Use Of RA Technology Communications. Use Of Risk Management Techniques. Access To Information. Change Management Involvement & Sign-off. Functionality of RA Toolset.8 RA Control Effectiveness. Risk Mitigation.8 Correction Of Identified Issues. Measurement Framework Remarks: Results of this question are represented in the light benchmark report for typical RA organization profiles (Appendix ) 7 valid responses 06 TM Forum

23 RAMM topic maturity scores (/) Topic area Average Median Min Max. Skill Set Of RA Team,,8.6 Business Knowledge,6,.8 Staffing Levels,6,0.9 Communications,8,00. Use Of Risk Management Techniques,09,07. Change Management Involvement and Sign-off,77,00.8 Correction Of Identified Issues,9,0. Measurement Framework,6,06. Risk Mitigation,09,00.8 RA Control Effectiveness,,00. Functionality of RA Toolset,,0. Access To Information,6,00,7.6 Use Of RA Technology,96,00.8 Degree Of Automation,0,00,89.9 Coverage of RA Technology,9,00, 06 TM Forum

24 Maturity accelerators. In your company, what describes best the factors that accelerated Revenue Assurance maturity improvements in the last year? (max answers) Increase in resources allocated to RA activities 6.7% Use of outside experience 6.7% Operating in a cross functional mode 7.6% Formalization of the RA function 0.% Increased visibility/ acknowledgment of RA accomplishments.9% Organizational empowerment of the RA function.7% Experience of the RA team 8.6% Use of technology e.g. data analytics 0. Survey 0 (single answers only): % Experience of team, Use of tools % org empowerment, % Org formalization, % increased visibility, % working cross functionally, % increase in allocated resources, % use of outside experience valid responses 06 TM Forum

25 Main Accelerators of Maturity Additional insights Use of Technology by region Global 0. Western Europe 0.0 North America 88.89% Middle East 0.0 Latin America. Eastern Europe.% Australia / Oceania 60.0 Asia 8.6% Africa.0 In North America, of the survey participants reported Use of Technology as a main maturity accelerator. Latin America and Africa have chosen the technology accelerator rarely (e.g. one out of 0). TM Forum Community Comments In North America technology tends to be adapted earlier to drive standardization and automation of procedures and processes. 06 TM Forum

26 Main Accelerators of Maturity Additional insights Experience of the RA team by region Global 8.6% Western Europe 7. North America.% Middle East 0.0 Latin America 7. Eastern Europe 0.8% Australia / Oceania 0.0 Asia 0.77% Africa.0 Australia, Western Europe and Latin America have reported the maturity accelerator Experience of the RA team most frequently (about out of 0). None from the Middle East selected this accelerator of maturity which was chosen second but most globally. TM Forum Community Comments As compared to the top maturity accelerator Use of Technology, Experience of the RA team was selected more frequently in regions such as Latin America, Asia and Africa where technology is less frequently recognized as a maturity accelerator. 06 TM Forum 6

27 Main Accelerators of Maturity Additional insights Organizational Empowerment by region Global.7% Western Europe 8.7% North America.% Middle East 60.0 Latin America.0 Eastern Europe 7. Australia / Oceania 0.0 Asia 0.77% Africa 0.0 The maturity accelerator Organizational Empowerment was most frequently selected in the Middle east (by of the respondents) followed by Eastern Europe and Asia. TM Forum Community Comments The participants from the Middle East reported Organizational Empowerment as a main maturity accelerator whereas technology and experience where not mentioned frequently. This could be explained by a different management culture. 06 TM Forum 7

28 Purpose of RA function. How would you characterize the main purpose(s) of your revenue assurance function? (max answers) Improve customer satisfaction/ experience.8% Avoid high impact errors related to changes.96% Find money.96% Automate controls and improve revenue flow visibility 7.% Risk management and control monitoring 9.% Perform RA controls 0.7% Improve business processes and controls. Correct errors and recover lost revenues 6.% Survey 0 (single answers only): % monitor controls, % find money, 8% identify problems and root causes, 7% perform RA controls, % improve revenue flow visibility, % define/ improve controls, % improve business processes, % recovery of lost revenues, % Correction of billing errors 7 valid responses 06 TM Forum 8

29 Purpose of RA function Additional insights Selected RA purposes vs. Location of RA lead 0 Improve customer satisfaction/ experience Finance Billing Operations Risk Management Product Management Quality Other Directly under CEO Customer Relationship/ Support IT/ Network Automate controls and improve revenue flow visibility Other Quality Billing Operations Finance 06 TM Forum 9 Improve business processes and controls Finance Billing Operations Risk Management Quality Other Directly under CEO Customer Relationship/ Support IT/ Network

30 Purpose of RA function Additional insights Maturity correlations (top down) Correct errors and recover lost revenues Automate controls and improve revenue flaw visibility Improve business processes and controls Find money Perform RA controls Avoid high impact errors related to changes 06 TM Forum Risk management and control monitoring Improve customer satisfaction/ experience

31 Purpose of RA function Additional insights Maturity correlation with reactive type purposes Asia - Western Europe - North America - Eastern Europe - Western Europe - Eastern Europe - Directly under CEO - Finance - Finance - Finance Total Correct errors and recover lost revenues correlated with find money Total Correct errors and recover lost revenues correlated with find money and main geographical region in which company operates Total Correct errors and recover lost revenues correlated with find money and where is the lead of RA department positioned within organization 06 TM Forum

32 Purpose of RA function Additional insights Correlation with years of existence for top answers and Finding Money 0 0 Risk management and control monitoring N/A longer than 0 years 8 to 0 years to 7 years to years less than years Improve business processes and controls N/A longer than 0 years 8 to 0 years to 7 years to years less than years 0 Perform RA controls N/A longer than 0 years 8 to 0 years to 7 years to years less than years 0 6 Find money N/A longer than 0 years 8 to 0 years to 7 years to years less than years 06 TM Forum

33 Change process mandate for RA to perform risk/ cost assessments 6. Does the business change process mandate the involvement of RA to perform revenue and cost risk assessments? Yes 7. No Yes 0 9 No Remark: No clear indication of the nature of the companies who have answered level with NO (Correlations tested with all profiling questions). 7 valid responses TM Forum Community Comments On one hand it is surprising that still 7.8% of RA is not mandated to be involved systematically in the change process, on the other hand comparing with the near past, it is amazing and very positive that 6% are already involved in changes processes. 06 TM Forum

34 Primary challenges for RA to overcome regarding New product development 7. Thinking about how Revenue Assurance impacts new products in your company, what are the primary challenges to overcome regarding change management and new product development? Communication issues 7.% Immaturity of change management process 0.7% Process ownership issues/ conflicts of interest 0.7% Lack of cross functional mandate 0.7% Lack of end-to-end business process understanding 7.% Survey 0 (single answers only): 8% lack of cross functional mandate, 7% immaturity of change management process, 6% change information no available, % communication platform missing, 7% lack of end-to-end business process understanding, % communication skills weak. 7 valid responses 06 TM Forum

35 Primary challenges for RA to overcome regarding New product development Additional insights End-to-end business process understanding vs. knowledge levels of business models 0 Minimal Basic 0 Good Very good Expert Level 6 0 Lack of end-to-end business process understanding 06 TM Forum

36 Primary challenges for RA to overcome regarding New product development Additional insights Maturity correlations (top down) Lack of end-to-end business process understanding Immaturity of change management process Lack of cross functional mandate 0 9 Communication issues 06 TM Forum Process ownership issues/ conflicts of interest

37 8. Root cause correction preference vs. fixing of symptoms.%.%.% Yes Partially No Over half of the RA organizations give preference to identifying and correcting root causes. Slightly higher maturity levels were reported for companies who perform root cause analysis systematically. Most companies report that they are focusing on finding root causes of problems. 7 valid responses TM Forum Community Comments RA is increasingly seen as a problem solving entity, and not just as an auditor whose target is to identify flaws. 06 TM Forum 7

38 Overall revenue coverage 9. What percentage (%) of the total company revenue do you estimate are covered by your Revenue Assurance activities? I don t know 0.8% 9 0.8% % % % RA survey 0: Survey 0: % 9-00, % 6-0 valid responses 06 TM Forum 8

39 Overall revenue coverage / (vs. number of RA FTEs) Coverage 0 0.8% 0.8% 0.8% 0.8%.67%.67% 0.8% 0.8% 0.8%.67% 0.8%.67%.67%.67%. 0.8% 0.8%.%.67%.%.67% 0.8%.67% 0.8%.7%.67%.67%.67% 6.67%.%...% 0.8%.8%.7%.67%.67%.%.0.67%.%..67%.%. 0.8% I don t know N/A > 00 FTE 00 FTE 0 FTE 0 FTE 6 0 FTE FTE < FTE 06 TM Forum 9

40 Overall revenue coverage Additional insights Assessment based on TMF s process model and Other correlations. 9.6%.9%.9%.%.% 6.% Coverage assessment based on TMF s RA model I don t know Coverage assessment based on the company s department Finance Risk Management Billing Operations Quality Other Customer Relationship/ Support Product Management IT/ Network Directly under CEO I don t know Africa Asia Australia / Oceania Eastern Europe Latin America Middle East Coverage assessment based on the geographic region in which company operates North America Western Europe 0 06 TM Forum I don t know Coverage assessment based on the RAMM scores

41 Process area coverage 0. Within the following process areas, what is the extent of your Revenue Assurance Coverage? - Product and Offer Management 0 8% % 6% % % % % % % 9% % 6% % % % Product and Offer Management % % 6% Order Management and Provisioning % % Network and Usage Management % Rating and Billing % 9% 9% 8% 8% 6% 6% 7% 8% 8% % % 6% % % % % % 9% % % % 9% Receivables Management Finance and Accounting Customer Management Partner Management Nearly All Covered (close to 0) Mostly Covered (60-) Somewhat Covered (up to ) Not Covered at All N/A I don t know 0 valid responses 06 TM Forum

42 Market segment coverage. Within the following market segments, what is the extent of your Revenue Assurance Coverage? 0 % % % % % % 6% 8% % 6% % 8% % % 8% % 9% % % % % Retail (Consumer) Small & Medium Businesses Large Businesses Wholesale Nearly All Covered (close to 0) Mostly Covered (60-) Somewhat Covered (up to ) Not Covered at All Market segment not applicable I don t know % % 0 valid responses 06 TM Forum

43 Coverage of new services/ technologies. Within the following new services / technologies offered, what is the extent of your Revenue Assurance Coverage? 0 8% 9% % 8% % 9% % % % 6% 7% % % % % 8% 7% 8% % 7% % 8% 6% 9% % % 6% 7% 7% % LTE MVNO Hosting Mobile Money Enterprise Total Over-the-Top Communications (OTT) Services Solutions % 7% 7% % 9% 9% % Direct Operator Billing (DOB) 8% 7% 7% % % % % % 9% % % 9% 7% % 9% 6% 8% 9% % 6% % % % Cloud services/ offerings API based digital services Telematics ehealth VoLTE Nearly All Covered (close to 0) Mostly Covered (60-) Somewhat Covered (up to ) Not Covered at All N/A: Such new service not offered I don t know 0 valid responses 06 TM Forum

44 Subscription revenue coverage. To what degree are recurring, subscription revenues protected by revenue assurance practices? Unknown 6.67% None.67% % 70-.7% % % % 6.67% 0-.% The majority of respondents reported and higher coverage of subscription based revenues. Compared to overall Revenue Coverage levels, subscription type revenues are covered on a slightly higher level. 0 valid responses 06 TM Forum

45 RA technology coverage level. What is the percentage of revenue that is covered by RA technology? Unknown.97% None % 6.7% 0.9% % % 0-.% 0-7.6% Compared to overall Revenue Coverage levels the extent of RA technology coverage is almost for coverage levels above Companies that reported and more coverage by RA technology have slightly higher RA maturity levels. 9 valid responses 06 TM Forum

46 Automated technology platform for analytics. Does the RA technology provide an automated platform for analyzing subscription, event charging information and other relevant data sources? No 0.7% Partially 6.97% Yes.86% 9 valid responses 06 TM Forum 6

47 Automated technology platform for analytics Additional insights Correlation with size of Operator (Number of customers and Revenues) 0 7 < 0. million to. million 8 7. to million to 0 million No Partially Yes 0 to 0 million Based on number of customers 0 to 0 million 7 6 > 0 million 0 6 < 0 million US$ to 0 million US$ 0 to 000 million US$ to 000 million US$ No Partially Yes Based on revenues 000 to 0000 million US$ 7 > 0000 million US$ 06 TM Forum 7

48 Regular RA activity review with other departments 6. Are regular meetings held with other departments to review the findings of RA activities and jointly plan corrective and preventative actions? No 6. Yes 7.9% 9 valid responses 06 TM Forum 8

49 Regular RA activity review with other departments Additional insights Correlation with maturity and location of RA organization Risk Management Product Management Other Internal Audit Finance Directly under CEO 8 Yes 8 No 6 Yes No Customer Relationship/ Support Business Support 06 TM Forum 9

50 Frequency of revenue risk identification 7. How frequently is revenue risk identification conducted? Never.6% On an ad hoc basis.6% At least once every three years At least once every two years 0.8%.68% At least once a year 7.6% Twice a year.76% Once a quarter.% Once a month 7.7% 9 valid responses 06 TM Forum 0

51 Frequency of revenue risk identification Additional insights Correlation with maturity 0.6%. 8..6%.% 0.8% 0.8% 0.8%..6%..6% 0.8%.68%.6% 0.8%.68%.68%.68% Once a month Once a quarter Twice a year At least once a year 0.8% 0.8% At least once At least once every two years every three years 6.7% 0.8% 7.6% 7.6% 0.9% On an ad hoc basis 0.8%.68% Never There is no clear correlation between maturity and systematic, regular risk identification. The category ad-hoc which is not bound to a timeframe has the widest spread of maturity (Low to high maturity). 06 TM Forum

52 Frequency of revenue risk identification Additional insights Ad hoc risk identification category in relation to other Roles performed by RA where maturity levels or 77.78%.6% 7.6%.%.% 0.8% 0.%.% 8.08%.9% Fraud management Credit control Customer/ commercial analytics Risk management Business partner management Overall Level and ad-hoc risk identifiacation cases Additional correlation tests with level and maturity ad-hoc organizations discovered that such RA organizations are on average more involved in non-ra core activities such as fraud management (79% vs. 7% overall), risk management ( % vs. 8%), business partner management (6% vs. %) and customer analysis (% vs. ). Remark: Such cases appear in all RA FTE groups (below to over 00) and represent new and older RA organizations. TM Forum Community Comments Organizations with ad hoc risk identification have naturally higher engagement levels to compensate for systematic risk identification assessments (likely having sufficient risk visibility). 06 TM Forum

53 Frequency of RA control effectiveness monitoring 8. How frequently are RA controls monitored for effectiveness? Never. On an ad hoc basis 9.% At least once every two years 0.8% At least once a year 0.08% Twice a year 6.7% Once a quarter 7.6% Once a month.09% 9 valid responses 06 TM Forum

54 RA team knowledge levels 9. What is the level of knowledge in the following areas within the RA team? 0 8% % % % % % % 7% 7% 8% 6% 8% % 8% % % 7% % % % % % % % 7% Network operations IT operations Order management Business models used within the business 7% 8% % 9% 6% 8% 9% % Accounting and Finance End-to-end lead-topayment business processes (Order to Cash) Expert Level Very good Good Basic Minimal None 06 TM Forum

55 RA team knowledge levels Additional insights Knowledge levels grouped and maturity correlation good and better vs. rest 0 0 % 66% % Network operations Good to expert Minimal to Basic None % % % % % 8% 77% 7% IT operations Order management % % 69% 68% 7% Business models used within the business Accounting and Finance End-to-end leadto-payment business processes (Order to Cash) No yes The knowledge level (Is good or better?) Highest knowledge levels at least good levels were reported in IT operations and Order Management. A clear correlation of knowledge levels with maturity was noted: RA organizations who selected good or better knowledge levels achieved on average higher maturity. who had good or better selected for all categories have at least level maturity. 06 TM Forum

56 Business/ Customer Intelligence cooperation 0. What is the level of cooperation with your business intelligence/customer intelligence practice? Other.68% No connection. Project based cooperation.86% Regular interaction 0.% Survey 0: % day to day, %Regular interaction, % project based, % loose, % no connection 9 valid responses 06 TM Forum 6

57 Performance reporting process. What best describes the reporting process (performance)? Based on agreed reporting requirements of other departments.7%.% There is no reporting process A collection of loosely related statistics 8. A series of ad hoc reports 9.% Based on business performance metrics 7.% 6 valid responses TM Forum Community Comments Less than of the respondents use clear business performance metrics. There is much room for improvements. 06 TM Forum 7

58 Performance reporting process Additional insights Correlation with maturity Based on business performance metrics A series of ad hoc reports A collection of loosely related There is no reporting process statistics Based on agreed reporting requirements of other departments 06 TM Forum 8

59 Performance reporting process Additional insights By region Africa Asia Australia / Oceania 7 Eastern Europe Latin America Middle East 6 North America 0 Western Europe There is no reporting process A collection of loosely related statistics Based on agreed reporting requirements of other departments A series of ad hoc reports Based on business performance metrics 06 TM Forum 9

60 Existence of RA measurement framework. Does an RA measurement framework exist? No.% Partially.76% Yes.69% Almost half of the respondents say they have a thorough RA measurement framework. out of 0 don t have a framework at all. Lower maturity levels were reported where an RA measurement framework is absent. 6 valid responses TM Forum Community Comments Without an RA measurement framework it is difficult to justify investments in RA activities. 06 TM Forum 60

61 Existence of RA measurement framework Additional insights Correlation with maturity Yes Partially No 06 TM Forum 6

62 Regular use of KPIs for reporting to management. Which of the following KPIs do you use regularly in your reports to management? Average time for correction 0.% Average time for detection 8.7% % of residual risk or other risk KPI.% % of non-recoverable losses.7% % of revenue coverage 9.% % of prevented incidents without customer impact (revenue savings) 0.89% % of recovered revenue losses and overcharging 70.% % of revenue losses and/or overcharging 7.% 6 valid responses 06 TM Forum 6

63 Regular use of KPIs for reporting to management (/) Characteristics of KPI sets used by survey participants Performance and Reporting Comprehensive KPI set.9% Revenue loss prevention 6.6% Leakage identification and recovery.% Recovery only 8.9% Leakage identification only.6% non financial/ secondary KPIs.6% 6 valid responses 06 TM Forum 6

64 Regular use of KPIs for reporting to management Additional insights Correlation of KPI type groups with maturity and Years of existence of RA organizations Leakage identification only Recovery only Leakage identification and recovery Leakage identification only Recovery only 0 9 Leakage identification and recovery Revenue loss prevention Comprehensive KPI set Revenue loss prevention Comprehensive KPI set 9 non financial/ secondary KPIs non financial/ secondary KPIs N/A longer than 0 years 8 to 0 years to 7 years to years less than years 06 TM Forum 6

65 Reported KPI value % of revenue losses of total revenues, before the recovery procedures. What is the value you reported last year for the KPI % of revenue losses of total revenues, before the recovery procedures calculated vs revenues? % %.09% % 9..9% < 0.% 0.%-0.% 0.%-% %-% %-% >% The approximated average is 0,9% revenue losses (calculated based on average per category). The average revenue coverage levels per group are in the range of -6% (7% average). (86 reported a value for this KPI) 6 valid responses TM Forum Community Comments It is important to have in mind that this chart only depicts part of real revenue losses (dependent on coverage levels). Real losses are significantly higher. 06 TM Forum 6

66 Reported KPI value % of revenue losses of total revenues, before the recovery procedures calculated vs revenues Correlation with maturity < 0.% 0.%-0.% 0.%-% %-% %-% >% 06 TM Forum 66

67 Reported KPI value % of revenue losses of total revenues, before the recovery procedures" calculated vs revenues Region grouping: North America and Europe (west and east) vs. other parts of the world % 0.% 7.9% %.6% 6.8% 0.9% 6.8% %.% % 0.0 < 0.% 0.%-0.% 0.%-% %-% %-% 0.0 < 0.% 0.%-0.% 0.%-% %-% %-% >% North America and Europe Other parts of the world 06 TM Forum 67

68 Reported KPI value % of non-recoverable losses calculated vs revenues. What is the value you reported last year for the KPI % of nonrecoverable losses calculated vs revenues? >% 6.67% %-%.67% 0.%-% % 8.0 < % The approximated average value is 0,% (7 reported a value for this KPI) 6 valid responses TM Forum Community Comments The depicted percentages represent huge amounts of money and clearly emphasize the need to prevent rather just detect. 06 TM Forum 68

69 Reported KPI value % of non-recoverable losses calculated vs revenues Correlation with maturity 0.6%.% 7.69%.%.6%.%.6%.% 6.%.08% 6.% 6.% 6.% 6.% 9.%.%.6%.%.% < % 0.%-% %-% >% 06 TM Forum 69

70 Reported KPI value % of non-recoverable losses calculated vs revenues Region grouping: North America and Europe (west and east) vs. other parts of the world % %.6% % % 6.67%.78%.78% % 0.6% 0.0 < % 0.%-% %-% >% 0.0 < % 0.%-% %-% >% North America and Europe Other parts of the world 06 TM Forum 70

71 Reported KPI value % of recovered revenue losses calculated vs revenue losses 6. What is the value you reported last year for the KPI % of recovered revenue losses calculated vs revenue losses? >7%. -7% 0.% %- 6. < % 9.7% The approximated average recovery rate is. Considering each company s detected revenue leakage and coverage extent, and conservatively extrapolating this to a scenario in which all the revenues are covered, the recovery rate is 6% of the detected leakage. (7 reported a value for this KPI) 6 valid responses TM Forum Community Comments Two third of the he respondents recover less than of the leakages they detect, the answer is not more efficient recovery, but more prevention. Over 66% of the respondents recovered less than of the leakages they detect, this means that real losses are huge. More aggressive recovery strategies are expensive and may have undesirable business impacts on customer satisfaction, brand reputation etc.; this again highlights the advantages of leakage prevention over detection and attempting to recover. 06 TM Forum 7

72 Reported KPI value % of recovered revenue losses calculated vs revenue losses Correlation with maturity < % %- -7% >7% 06 TM Forum 7

73 Reported KPI value % of recovered revenue losses calculated vs revenue losses Region grouping: North America and Europe (west and east) vs. other parts of the world % %.%.% % 8.9% 8.9% % 0.0 < % %- -7% >7% 0.0 < % %- -7% >7% North America and Europe Other parts of the world 06 TM Forum 7

74 Reported KPI value % of prevented incidents without customer impact (revenue savings) calculated vs total volume of RA incidents 7. What is the value you reported last year for the KPI % of prevented incidents without customer impact (revenue savings) calculated vs total volume of RA incidents? % %.07% < % %- -7% >7% % incidents were resolved before impacting customers. ( reported a value for this KPI) 6 valid responses 06 TM Forum 7

75 Reported KPI value % of prevented incidents without customer impact (revenue savings) calculated vs total volume of RA incidents Correlation with Maturity 0.08% 6.%.8%.8%.08% 6.% 8.% 6.%.7% 6.%.08%.8% 6.%.7%.08% < % %- -7% >7% 06 TM Forum 7

76 Reported KPI value % of prevented incidents without customer impact (revenue savings) calculated vs total volume of RA incidents Region grouping: North America and Europe (west and east) vs. other parts of the world % % % % 8.7% % < % %- -7% >7% 0.0 < % %- -7% North America and Europe Other parts of the world 06 TM Forum 76

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