A Key to Survive: Service-oriented Operations and Management for Accelerating Business Transformation

Transcription

1 A Key to Survive: -oriented Operations and for Accelerating Transformation October 2008 Tae Il Park Senior Vice President Head of KT Network Unit I Trends in Telco Transformation II III Challenges for Operation Transformation -oriented Operations & IV Summary -2-

2 Transformations are already Prevailing Telco Responses to IP Convergence Telco2.0 Transformation KT Telco2.0 Strategy: New Role & Model Transformations are already Prevailing Transform from network service provider to multimedia content provider to Rekindle Past Glory Convergence Intensive Competition Falling Revenue Opex, Capex, and ROI

3 Telco Responses to IP Convergence Operator responses to IP Convergence: Strategic Implication of Convergence 92% Relative Importance Most 75% 72% 70% 64% 61% 57% 50% Least 1. Strategically re-think the role of operator in a converged world 2. Create a new common standard for future service creation 47% 46% 3. Re-structure the service prioritization process 4. Set up incubation teams to develop new IP-based services (source: IMS insider surveys & Interviews: STL analysis) Telco2.0 Transformation Telco2.0 is about sustainable growth strategies for network operators facing new forms of competition Where should we focus our strategic effort to ensure growth? Answer: Focus on core telco competences Voice, video, web, messages and exploit key assets ( User Data is the most important) My Devices My Personal Data My Relationships Core Competence & Distinctive Assets Not Thumb Pipes Logistics Solutions Providers Utilize Whole enterprise Infrastructures 2-sided Model Data delivery with The right place, Time and way Logistics solutions providers for valuable bits and bytes My Identifiers My Context My Stuff My Interactions

4 KT Telco2.0 Strategy : New Role & Model KT Telco2.0 is defined as new role and business model for telco in the IP world to create customer value Telco1.0 Telco2.0 To-be Partners As is Mid-term Multimedia Aggregator Total Solution Provider Knowledge consulting biz Network Provider New Growth Engine Solution biz Computing Power biz Contents biz Cultural complex biz Communication/Broadband Biz Operational Challenges from Converged Environments KT Network2.0 for Value Innovation KT NOM2.0 for Agile Operations KT s Strategy for infrastructure Enforcement

5 Operational Challenges from Converged Environments Operational Challenges from technology, market, and operational trends should be solved to be an agile service provider Technology Drivers IMS and SDP Platforms Supplementary Access Open user devices QPS as a reality All-IP, FMC Market Changes Ambiguous Cash Cow Higher Competition Strategic Partnership and M&A New Models Explosion Operational Situation Siloed Operations and Manual Task and Human errors Aging and Decrement of Operation Staffs Accelerating Unmanned Operation Increase efficiency Maximize ROI value creation Agile business Infra. Federation Model Increased network complexity Increased service complexity Complex service visibility Providers Minimize Opex Increase operational efficiency Integration BSS with OSS Real-time Billing KT Network2.0 for Value Innovation Network Infrastructure transformation from technology-driven to service-driven infrastructure for customer value innovation New Comm. (SoIP) New Window (MegaTV & WiBRO) New BM (Broadcasting, E-Commerce, ) KT Network2.0: Technology Driven Driven Network Infrastructure Enforcement (All-IP, All-Optic, and FTTH) Infrastructure Enforcement (All-Platform) Network Integration (Wired + Wireless + Broadcasting)

6 KT NOM2.0 for Agile Operations Operation Transformation from manual and siloed to automatic and agile operation weapons Converged Infrastructure NOM2.0: Agility Innovation of network operations and management in line with the new Telco's business model and changing operations environments Discrete Infra Resources NOM1.0: Efficiency Prioritize operations based on business importance NOM0.1: Stability Get Network under Control Plan Provision Monitor Operation with EMSs Onsite and manned operation Siloed or partially integrated management infra Monitoring > Control Depend on operator s experiences Manual operations Network performance and QoS centric Comply with standards Remote and unmanned operation Totally integrated management infra Monitoring < Control Operations with knowledge base Fully automated operations Rapid revision of operation process management (BPM) Quality of experience (QoE) centric Remote device/handset revision Self customizable operation interface Beyond standards Discrete / Partitioned Integrated / Clustered Intelligent / Unmanned KT s Strategy for Infrastructure Enforcement Based on the strategic direction, each business is deploying in parallel (PSTN transformation, WiBro, IPTV, SoIP, FTTH, etc.) Pre-NGN (PSTN transmission into IP): 600 Local and 100 Tandem/Toll switches Reduce investment by replacing obsolete PSTN systems WiBro (Wireless Broadband): High B/W real-time mobile data 120,000 subscribers in end 2007 QoS Manager IPTV: Retransmission of Broadcasting 800,000 subscribers in end Best-effort s Premium s Residential Gateway IP-TV, Video Conferencing, Video Learning, Robot, Etc AGW: Access Gateway TGW: Trunk Gateway SER: Edge Router Access Networks xdsl, FTTH, LAN, WiBro, HSDPA W-CDMA SER Control/DHCP/Web Systems Premium Network (All-IP) Best-effort Network TGW AGW PSTN New authentication platform Premium network FTTH Home network with RGW QoS control with QoS manager SoIP : Rich IP comm. 4G/NGN

7 Operational Infrastructure Innovation Changed Scope of OSS/BSS Session Problem Quality Zero touch Device Integrated Channel -aware Engineering KT Strategy for Integration of OSS/BSS SOA Framework for Open OSS/BSS Operational Infrastructure Innovation KT is making NGOSS-based Operational Infrastructure Innovation to accelerate business transformation Today, around 50% of all OSS/BSS Spending is not Productive Around 12% CapEx or around 4% of revenues spent on OSS/BSS But up to 50% spent on integrating dissimilar systems transformation requires two options Infrastructure innovation Integrating existing dissimilar KT choose an innovative approach in accordance with TMForum NGOSS Operational Infrastructure Transformation with KT operational culture and NGOSS standard New Generation OSS Toolkit Process Framework Information Framework Market Opportunities Goals Process Technology Choices Application Framework Systems Integration Framework

8 Operational Infrastructure Innovation - Process Framework Process Innovation (PI) defines all the major business processes for customer value creation, business innovation, and enterprise innovation within KT environments Finance Operations Development & Integration Big picture of how the business works Clear definition of work areas of revenue and cost assignment Single common language for describing the operations Starting point for defining new system required People, Rule, Organization Change & Innovation with Excellence, Speed, and Standard System Value Domain Key mega processes for KT Mega Process innovation (7) (PI) Process S.I.P 1 2 Value Delivery Value Creation Operations Marketing Sales CRM Fulfillment Process Chain (40) 3 Capability Development Process (140) Assurance Billing PRM OSR Task (515) 4 Enterprise management 5 Partner Supplier/Partner Enterprise & Innovation Step (2,846) Stakeholders Employees Other stakeholders -15- Operational Infrastructure Innovation - Information Framework Enterprise data architecture (DA) provides a common framework for organizing all the information within KT environments Finance Operations Development & Integration Short time to market for innovative services Automation enables lower OpEX spend Reduce system integration time and improved automation Common integration framework Mega Processes TMForum SID Model Market / Sales KT Next Generation IT Data Classification Framework Product Entity Classification Legacy Data Model Process Alignment Resource KT Standard Data Model Supplier / Partner Enterprise Architecture Common System Entities Benchmarking OSR PRM BILLING ASSURANCE FULFILLMENT CRM SALE MARKETING Product Resource Partner Channel Market Enterprise Common Data Classification Other industries Identification Description Activity Classification Classification Relation Event -16-

9 Changed Scope of OSS/BSS The management domains should be extended to whole business infrastructure covering network layer, control layer, application layer, and devices Delivery Platform s & Devices Enablers (include Content Delivery) Routing Public Network Mobile Access GSM GPRS EDGE UMTS WiFi HSDPA Creation Execution Environments Abstraction Layer Admission Control IMS Satellite WiBro Authentication Connectivity Layer Access Network Layer Fixed Access PSTN FTTH Exposure Layer Control Layer Traffic Engineering Cable xdsl Portals Google Gaming Private Network Mobile Access DECT www WiFi Internet Skype 3 rd party ASP blogs Session Control Horizontal End-to-End Routing Fixed Access LAN PABX 3 rd Party Partners Vertical End-to-End Infra Session The Network doesn t matter Network diversity and network innovation had led to network abstraction based on IP as common denominator Yesterday Network focused product Circuit-based long lived services Connectivity services Simple & individual service model Today & Tomorrow focused product Session-based short lived services Multimedia converged service Complex & convergent service model WiBro HSDPA POTS/ ISDN UMTS CDMA GSM EDGE All-IP (BcN) Mobility-enabled & QoS-guaranteed Wireline xdsl FTTH Others Common Applications & s Network Diversity is not a problem anymore due to All-IP evolution

10 Session Real-time Monitoring The core of seamless service lies in real-time information management of user s current service session and maintenance of user s presence in heterogeneous public and private networks for delivery of converged services OSS/BSS Applications Identity Presence Location Delivery Platform Control (IMS) Network Device Transport QoS Access Preferences Clients and Devices -19- Session - IPTV convergence introduces the complexity of service session management and its personalization leads large volumes of customer s session information management Head-End Center PP,CP,DP CAS MOC DBS HD Monitoring VOD NMS PVS CMS STB Web DRM Application Layer VOD KSMS A3808 PE PE SER RP PE PE PE PE RP IP-Media Switch PE VOD Server Server - Farm Probe A3808 L3 Switch L2 Switch HDS IDMS Premium NMS Core NMS Access NMS DAIMS MegaTV NMS flows Problem resolution Quality management Real-time billing usage pattern management MegaTV-SCS Control Layer Transport Layer U-CEMS Layer -20-

11 Problem A fully featured network fault and service problem management framework is needed for reliable and effective service-oriented management Total Fault Framework Impact Analysis Empower experts to capture intelligence & knowledge Network Root Cause Analysis & Event VOC TT & Filtering, Mgmt Workforce Suppress & Technician Correlation Device Applications & Contents 3 rd rd Party Federation Automate recovery with policy & knowledge-based fault management End-user Device Operation Staffs IMS & SDP Backbone Network Access Networks (Wired & Wireless) 3 rd Party SP Applications & Contents Problem Fully Featured Problem Handling A fully featured Network/ Problem System and Total Fault System, which monitors and manages whole business infrastructure, will be needed to provide converged services. Root Cause Analysis Real-time Cross Domain Problem Monitoring and Handling affected facility & customer analysis with RCA Damage cost calculation incurred by Root Cause Trouble Ticket Issuance with RCA and VOC VOC DB Alarm Analysis Construction Info Info VOC Web Application Server Event Collection Root Cause Alarm RCA Event Normalization Rules Rules Engine Event Correlation & Filtering Affection Analysis Facility/ Analyzed Alarms Facility/ VOC DB Integrated Facility DB Fault/VOC Real-time Status Fault Screen Affect Analysis Fault Detail Trouble Ticket Related statistical report Event Adaptor Adaptor Adaptor Adaptor Adaptor Adaptor Adaptor Adaptor Personalized s VoIP VoIP Session IPTV IPTV Session Internet Internet Session VoIP VoIP Session IPTV IPTV Session Internet Internet Session Logical Resource Logical Resource Facility End User Devices Networks (Access & Backbone) IMS & SDP Application & Contents Circuit & Sessions VoC

12 Si Si Si Quality providers must now put customers at the heart of their business by providing higher quality service than their expectation Rule rule for Quality quality management What happens when QoE is poor? About 29% of customers will not complain before defecting they will simply leave once they become unsatisfied Catching and fixing problems internally, but after they have left the working area Failure Total cost Cost of Quality Catching and fixing problems in your working area Repairing the damage of problems caught by external customers QoE Loyalty, Retention and Revenue Inspection Prevention Failure Inspection Prevention Without Quality Improvement Process With Quality Improvement Process Quality - IPTV KT Integrated Quality System (ISQM) for end-to-end service quality management Quality KPI Transmission Quality KQI KPI KPI KPI Transaction Quality KQI KPI KPI Media Quality KQI KPI KPI Quality Policy QoE Indicator Fault & Performance MegaTV-SCS / VoIP-NMS / WiBro-NMS Premium-NMS Core-NMS Access-NMS KSMS IP-CEMS Quality Analysis & Measurement IPAS TVQMS(QSTB, HIKE, QM) Quality Monitoring, Measurement, and Analysis HDS Authentication Server Broadcast Server CP DP PP EPG Server PE Router Premium Best Effort SER Media Switch Probes Network Operation Centers (25 sites) Ntopia Switch Branch Offices (107 Sites) L3 Switch FES UTP copper VDSL/IP-ADSL DSLAM CAS/Server VoD Server (H.264) Media Center Backbone Network Access networks Residential OLT L3 switch QSTB FTTH QM STB STB

13 Remote Device Shift from network element management focus to service management, data management and user preference management Device Proliferation & Convergence Fixed Authorities s (Users) + Mobile Network Intelligence Migration to devices Provide valuable information Direction of DM Innovation Integrated DM for any device (Fixed, Mobile, Converged device) Expand zero-touch deployment from fixed service to dynamic service Drive enhancements to customer experience management (Quality, failure, user preference) Software lifecycle management (from delivery to withdrawal) Device lifecycle management Construct all the values for customer from device!! Remote Device Automatic Control With zero-touch remote device management framework, we can control networkenabled devices anywhere in the world and integrate them into enterprise infrastructure. u-cems ( Equipment System) Web Server Monitoring Configuration Alarm Statistics Admin Application Database NOC & Help Desk Resource Provisioning Fault Monitoring Quality management Remote Control Firmware & Software DB Software Installation Device Configuration Software/Firmware Update Device backup Alarm Hardware & Software Inventory Policy Diagnosis Statistics Protocol Mediation FW/SW Download Device Asset Job Scheduling Remote Control Status Monitoring Memory DB Protocol Conversion SNMP OMA-DM TR-069 SoIP IP-GW HG STB.. Device u-cems

14 -aware Engineering Reliable operation of the enterprise network is a necessity for business survival transformation introduces the service-aware engineering Traditional Network Engineering Network Assessment and Planning Network and Performance Monitoring Network Capacity, Dataflow and Utilization Planning Network Design and Implementation service which incorporate architecture, network design, reengineering, and implementation. Network administration of the Network Operating Center/Network Center, network/asset management QoS-guaranteed Convergent s flow anticipation & planning Real-time service session distribution model management Network resource reengineering based on the convergent service trends with service engineering simulator Life Cycle -aware Engineering - Process Offer comforts to customers with service-aware engineering Network Traffic Collection and Importing (Traffic Classification by Types) Traffic Analysis and Modeling (Convergent ) Virtual Network Environment Analysis and Optimization

15 Integrated Channel with Single View on s -centric Channel management is imperative for increasing customer satisfaction in rapidly changing business environment Different views by different organizations and staffs Harmful Model for Domain Domain Channel 1 Call Center / Care Care without enterprise management information Channel 1 Partner NOC / Maintenance & Operations Channel 2 Channel 2 Network Operations & without customer information Enterprise Infrastructures KT Strategy for Integration of OSS/BSS Phased OSS/BSS Integration Approach for Accelerating Transformation ICIS: Integrated Information System for one-stop customer care and billing NeOSS: New & Next Gen Operations Support System for flow-through fulfillment and assurance management Silo (Integrated Billing, Ordering, and CRM) Wired + Wireless ICIS Silo NeOSS (Integrated configuration, assurance, workforce, and Inventory Mgmt.) Wired + Wireless NeOSS Network Silo Integrated NMSs -29- PSTN xdsl FTTH, WiBro, BcN W-CDMA / HSDPA 4G Network SDP, IMS Infrastructure -30-

16 SOA Framework for Open OSS/BSS SOA and OSS/BSS Orchestration - SOA is a powerful integration approach because process flow no longer needs to be hard coded but can follow a contractual model Partner Employee Stakeholder Server IMS/SDP Workforce Domain specific xnmss (include Probes) Zero-touch Device Enterprise Data Facility, circuit, session, customer, QoS, SLA, Contract, product, HR, Rule & Policy Web s SOA Framework for OSS/BSS Flow-through operational process management Fulfillment GIS-enabled Integrated OSS/BSS Windows Assurance Event Notification Billing Messaging/ Transport Registry Operations & Maintenance Workflow Engine & BAM ESB Web s Procurement & Life-cycle Mgmt Persistent Event Repository Connector/ Adaptors Data Transformation Message Routing & Distribution UDDI Network Event Filter & Security Governance & Monitoring UDDI Registries CRM Billing ERP Integrated Session Integrated Quality Integrated Fault Integrated Performance Architecture Data Architecture Enterprise & SOA Governance Application Architecture Technology Architecture Life-cycle Mgmt Standard I/F -31- OSS/BSS Transformation Conclusion -32-

17 OSS/BSS Transformation OSS/BSS innovation is imperative for rapid response to Telco s business transformation Fixed Networks Fixed Applications! Mobile Networks Mobile Applications Enterprise Networks Enterprise Applications Spaghetti Networks & Siloed OSS/BSS (Vertically Integrated) All managed targets are converged Market/service differentiation (penetration rates stagnating) Stop Opex explosion Standards, technologies now available (IP, SIP everywhere) Unsustainable cost structure!!! Applications & Contents Common Capabilities (IMS/SDP) Network/Transport (Different access networks IP) Converged Networks & Integrated OSS/BSS (Horizontally Layered) $ Today Innovative Enterprise Architecture OSS/BSS Integration for Converged Infrastructure Oriented OSS/BSS Tomorrow -33- Conclusion Telcos and Operators must move from network orientation to service orientation for successful realization of business transformation Transformation The future role of Telcos and Operators is aggregator of contents and services with their existing core competence of data pipes Network value is rapidly move to the value from CPE and applications Operation Challenges OSS/BSS Transformation Every things are converged OSS/BSS are still fragmented and partly integrated Operation staffs are continuously decreased and aged Unmanned offices are increased OSS/BSS innovation is urgent for rapid response to business changes and competition End-to-end service management is imperative for converged business infrastructure (session, fault, quality and billing) Zero touch and remote management of end-user devices SOA-based OSS/BSS Integration -34-

18 Q&A -35-