Best Practice in Telecoms Service Delivery. Teresa Cottam with Danny Dicks Edited by Mark Chambers

Transcription

1 Best Practice in Telecoms Service Delivery Teresa Cottam with Danny Dicks Edited by Mark Chambers

2 Analysys Research Fixed Networks and Services Analysys Research Fixed Networks and Services online market intelligence service Western European Fixed Telecoms: market sizings and forecasts How to Succeed with Fixed Mobile Convergence Business Data Services: growth opportunities and forecasts for Europe Prospects for Local Loop Unbundling and Bitstream in Central and Eastern Europe European Cable: strategies for success Fixed Mobile Convergence in the Enterprise Voice Market Strategies for Selling More to SMEs: analysis of demand for broadband managed services and service bundles Opportunities for Non-traditional Players in Communications Markets Beyond Triple Play: forecasts for broadband valueadded services Mobile Networks and Services Analysys Research Mobile Networks and Services online market intelligence service The Mobile Marketing and Advertising Revolution The Central and Eastern European Mobile Market: trends and forecasts Quadruple-Play Bundling Strategies The Acceleration of Fixed Mobile Substitution in Western Europe: facts and figures Seizing the Opportunities from Enterprise Mobility The Middle Eastern Mobile Market: trends and forecasts The Future of the Global Wireless Industry: scenarios for The World s Top Ten Non-voice Services for Mobile Operators Picocells and Femtocells: will indoor base stations transform the telecoms industry? Mobile Operator Strategies for Fixed Broadband Strategies for MVNOs Mobile Number Portability: strategies for operators and regulators Person-to-Person Mobile Messaging in Western Europe: forecasts and analysis Mobile Operator Performance: ARPU, churn, diversification and globalisation Billing and OSS Analysys Research Next-Generation Telecoms IT online market intelligence service Billing and OSS Trends: the transition to telecoms IT The Next-Generation Bill: commercial and technical strategies World Telecoms BSS and OSS Markets: trends and analysis The Western European Mobile Market: trends and forecasts Published by Analysys Research Limited St Giles Court 24 Castle Street Cambridge CB3 0AJ UK Tel: +44 (0) Fax: +44 (0) research@analysys.com Registered in England No Analysys Research Limited 2007 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher. ISBN October 2007

3 Contents 0 Summary viii 1 Next-generation services are transforming the telecoms industry Services are at the core of the converging telecoms and media industries Inconsistent use of the word services is causing confusion Competition is stimulating investment in service delivery 3 2 Service delivery involves well established and novel technology Service delivery encompasses a wide range of functionality The SDP contributes key functionality that many types of service provider require Service providers will adopt a USI approach An operator s service delivery strategy will depend on its business model 19 3 The vendor market is diverse and changing rapidly Network equipment providers are building on their real-time network expertise Enterprise IT vendors have a diverse range of strategies The application vendor market is varied in terms of the range and type of functionality offered Consultancies and SIs were market leaders in the first phase of SDPs 39 4 Service providers tend to prefer evolutionary change and multiple suppliers Service providers agree on common characteristics of next-generation service delivery infrastructure Most service delivery transformation is evolutionary rather than revolutionary Service providers are using multiple vendors to supply their next-generation service infrastructure SOA and standardisation have key roles to play Telstra is revolutionising its service delivery infrastructure BT says key service delivery issues are about customers, not technology 47 Analysys Research Limited 2007 Contents

4 iv Best Practice in Telecoms Service Delivery Actions 50 Market intelligence services from Analysys Research 53 Reports from Analysys Research 54 Custom Research: meeting your information needs 55 Analysys Consulting 56 List of Figures and Tables Figure 0.1: A USI combines BSS/OSS and SDP functions to support two types of service creation ix Figure 1.1: The next-generation IT conceptual framework 2 Figure 1.2: Services transform raw resources into revenue 3 Figure 1.3: The service delivery process 3 Figure 1.4: The evolution of service provision from the traditional to the reseller model 5 Figure 1.5: The evolution of service provision from the traditional to the mashup model 7 Figure 1.6: The mass-market and long-tail services markets 8 Table 2.1: The seven functional areas of service delivery 11 Figure 2.1: The seven functional areas of service delivery mapped onto the four process steps 12 Figure 2.2: The seven functional areas combine to create a service delivery process 14 Table 2.2: The features of an SDP 15 Figure 2.3: The functional coverage of micro and macro versions of a heavyweight SDP 16 Table 2.3: The four key elements of a USI 18 Figure 2.4: The five stages of service delivery market maturation towards a USI 18 Figure 2.5: Decision tree 1: Establishing business requirements 19 Figure 2.6: Decision tree 2: Establishing service requirements 20 Table 2.4: Relative importance of functional areas according to business type 20 Table 2.5: Relative importance of functional areas according to service type 20 Table 2.6: Example of auditing and gap analysis 21 Figure 3.1: Types of company in the service delivery infrastructure market 22 Figure 3.2: Alcatel-Lucent s service delivery footprint 24 Figure 3.3: Ericsson s service delivery footprint 25 Figure 3.4: Motorola s service delivery footprint 26 Figure 3.5: Nokia Siemens Networks service delivery footprint 27 Figure 3.6: BEA Systems service delivery footprint 28 Figure 3.7: Hewlett-Packard s service delivery footprint 29 Figure 3.8: IBM s service delivery footprint 30 Figure 3.9: Microsoft s service delivery footprint Figure 3.10: Oracle s service delivery footprint Figure 3.11: Aepona s service delivery footprint 33 Figure 3.12: Amdocs service delivery footprint 35 Figure 3.13: Axiom Systems service delivery footprint 36 Figure 3.14: Lavastorm s service delivery footprint 37 Figure 3.15: Pontis service delivery footprint 38 Figure 3.16: Tier-3 s service delivery footprint 39 Figure 3.17: Accenture s service delivery footprint 40 Table 4.1: Different types of service delivery transformation strategy 43 Table 4.2: Examples of service provider systems selection for service delivery 44 Contents Analysys Research Limited 2007

5 Best Practice in Telecoms Service Delivery v Authors Teresa Cottam (Analysys Associate) is a senior telecoms analyst with more than 13 years industry experience, who specialises in revenue management and service delivery technologies and markets. She is the author of a wide range of industry articles and in-depth industry reports, including Billing and OSS Trends: the transition to telecoms IT, The Next-Generation Bill: commercial and technical strategies and World Telecoms BSS and OSS Markets: trends and analysis. She has been a judge at IIR s global billing awards and is a regular speaker and chair at industry events. Prior to working with Analysys Research, Teresa was Publications and Research Director at BSS/OSS specialists Chorleywood Consulting and worked for industry analysts Ovum. Danny Dicks (Principal Analyst) is a senior member of the Custom Research team at Analysys Research and is Project Director of Analysys Research s Next-Generation Telecoms IT online market intelligence service. He has undertaken a number of consultancy and custom research projects in the field of telecoms software for equipment vendors, operators and finance houses. Danny was the lead author of the Analysys Research report Business-to-business E-billing and co-author of Billing and OSS Trends: the transition to telecoms IT and The Next-Generation Bill: commercial and technical strategies. Acknowledgements The authors would like to thank the many companies and individuals that have contributed to this report by sharing their insights on the service delivery market. We would particularly like to thank: Bala Balabaskaran, Principal Architect, Software as a Service, Microsoft; Alice Bartram, AVP Marketing, Comverse; Pauline Best, Analyst Relations Manager, BT; Andy Chu, Group Manager for Planning and Strategy, Communications Sector, Microsoft; Michael Crossey, VP Marketing, Aepona; Patricia Davis, Senior Market Research Manager, Communications Sector, Microsoft; Peter Dragunas, Director of Network Domain SDP Programme, Hewlett-Packard; Jason Fried, President and Founder, 37signals; Craig Holmes, Northeast Europe Telecommunications Industry Lead, IBM; Richard Huppert, AR Manager, IBM; Richard Koh, Group Product Manager, Connected Services Framework, Microsoft; Sanjay Mewada, VP Strategy, NetCracker Technology; Cassandra Millhouse, Director of Product Marketing, Cramer OSS Division, Amdocs; Brian Naughton, VP Strategy and Architecture, Axiom Systems; Simon Osborne, Senior Technical Architect, Axiom Systems; Edward Paterson, Northeast Europe Service Delivery Platform Solution Lead, IBM; Jennifer Richards, Director PR and Corporate Relations, BT Openreach; Drew Rockwell, CEO, Lavastorm; Tony Sceales, CEO, Celona Technologies; Rudolf Schmidt, Service Product Manager of the Consulting and System Integration Business Line, Services Business Unit, Nokia Siemens Networks; Geoff Sweeney, CTO, Tier-3; Nathaniel Talbott, Founder and Developer, Terralien; Philippa Tozer, AR Manager, Amdocs; Alon Weber, VP Marketing and Business Development, Pontis; Colin Windsor, CIO, BT Openreach; Greg Winn, CIO, Telstra; Peter Woollacott, CEO, Tier-3; and Doug Zone, CTO, MetraTech. In addition, we would like to acknowledge the invaluable help contributed by our colleagues within Analysys Research to this report, including Gordon Davies and Mark Chambers. Analysys Research Limited 2007 Contents

6 vi Best Practice in Telecoms Service Delivery Disclaimer Figures and projections contained in this report are based on publicly available information only and are produced by Analysys Research Limited independently of any client-specific work within the Analysys Mason Group. The opinions expressed are those of the stated authors only. Analysys Research Limited recognises that many terms appearing in this report are proprietary; all such trademarks are acknowledged and every effort has been made to indicate them by the normal UK publishing practice of capitalisation. However, the presence of a term, in whatever form, does not affect its legal status as a trademark. Analysys Research Limited maintains that all reasonable care and skill have been used in the compilation of this publication. However, Analysys Research Limited shall not be under any liability for loss or damage (including consequential loss) whatsoever or howsoever arising as a result of the use of this publication by the customer, his servants, agents or any third party. Contents Analysys Research Limited 2007

7 Market intelligence services from Analysys Research Analysys Research s online market intelligence services help you keep track of the latest developments in major telecoms markets worldwide. All our services are regularly updated and include a sophisticated range of interactive search, benchmarking and download tools. Analysys Research Fixed Networks and Services provides analysis of European operators and ISPs, country reports for 30 European markets, country market forecasts, commentary on industry trends, and a module on the broadband market. Analysys Research Mobile Networks and Services provides insight into the strategies of key players worldwide, country reports for leading mobile markets, 3G status reports, country market forecasts and analysis of industry trends. Analysys Research Next-Generation Telecoms IT includes a searchable contracts database, trends papers covering the latest issues in billing and OSS, and profiles of leading and up-andcoming vendors worldwide. Our Analyst Support package, which allows you direct consultation with our telecoms experts, is an ideal complement to your chosen market intelligence service. For more information on our services or a guided demonstration, please contact our Sales and Customer Service team on +44 (0) , us at research@analysys.com or visit our Web site at Analysys Research Limited 2007 Market intelligence services from Analysys Research

8 Reports from Analysys Research Analysys Research s reports are designed to keep you up to date with industry developments and how they affect players in the telecoms value chain from fixed and mobile network operators, to software and equipment vendors, and content providers and distributors. Our reports will help you: explore the factors that are driving market evolution understand how industry trends will affect your business define and evaluate your strategic options using decision frameworks and scenarios identify where opportunities lie for future growth find out which players are currently successful and why. Our publication programme offers over 25 reports a year, covering all the key issues affecting the telecoms industry and the latest hot topics. Recent reports have provided expert analysis of such topics as quadruple-play bundling, mobile advertising and marketing, fixed mobile substitution, enterprise mobility, business data services, local loop unbundling, non-voice mobile services, and picocells and femtocells. Each report is accompanied by an Excel spreadsheet containing the forecasts or other key data discussed in the report, presented in an easy-to-use format. All reports are offered with Analyst Support, allowing you direct consultation with the author. Shop online at or, for information about our report subscription packages, please contact our Sales and Customer Service team on +44 (0) or us at research@analysys.com. Reports from Analysys Research Analysys Research Limited 2007

9 Custom Research: meeting your information needs Analysys Research has developed its portfolio of Custom Research services in response to customer demand for bespoke market intelligence, when more data is needed than is found in an off-the-shelf report or database, when there are complex questions about specific companies or markets that need to be answered, or when analysis needs to be tailored. Custom Research can deliver real value when an organisation needs to answer specific questions about how it is positioned in the market, and how to optimise performance at various stages of the product or service lifecycle. Market opportunities? Match to customer needs? Effective procurement? Suppliers Costs? New idea generation Competitive landscape? Regulatory regime? Pricing? Competitors and partners Company internal processes Regulators/ government/ legislatures Market and technology trends? Strategy Product or service Launch Marketing strategy? Channel strategy? Optimum efficiency? Market analysis? Optimisation Customers Customer satisfaction? Competitive positioning? Understand how your company is positioned Optimise performance in the product or service life cycle In answering our clients questions, we bring a wealth of understanding of markets, and of techniques and services including: desk research, data collection and interpretation benchmarking services quantitative and qualitative surveys market sizing and forecasting competitor and partner profiling white papers, presentations and workshop facilitation event and trend analysis procurement assistance. For more information on Custom Research services from Analysys Research, or to discuss how we could help you to meet your specific information needs, please contact our Custom Research team on +44 (0) or us at custom@analysys.com. Analysys Research Limited 2007 Custom Research: meeting your information needs

10 Analysys Consulting Analysys Consulting is a leading 24 international telecoms and digital media consultancy. We draw on our unparalleled industry experience to deliver results that enable our clients to compete and grow in these markets, as well as to exploit new opportunities. Our experience, influence and unrivalled knowledge base are recognised globally which is why we have been involved in some of the world s largest telecoms projects and in transactions worth billions of dollars. For more than 20 years, we have helped shape the telecoms industry through our extensive work on policy, regulation and finance. We have worked with most of the sector s leading players, often at board level, to: determine strategy advise on merger and acquisition activity optimise tariffing of new and existing services identify and launch new business ventures improve profitability and cashflow by streamlining key operational processes. Analysys Consulting services include: strategy and marketing pricing strategy scenario planning economic modelling due diligence licence awards mergers and acquisitions regulation interconnect spectrum pricing STEM (Strategic Telecoms Evaluation Model). For more information please contact: Europe/Middle East/Africa (head office): +44 (0) , enquiries@analysys.com The Americas (regional headquarters): , enquiriesamerica@analysys.com Asia Pacific region (regional headquarters): , enquiriesasia@analysys.com. 24 Among the top five communications industry consultants in Management Consultancy: top 75 consultancies Analysys Consulting Analysys Research Limited 2007