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HUAWEI TECHNOLOGIES CO., LTD.

BSS Forum Moscow

Business Transformation, what for?

Ivan Hlavanda, Senior Business Consultant, GBC BSS Product Line,

Huawei Germany

+49 1622 106269

[email protected]

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Content

1 Business Transformation for MNP market

Business Transformation Key aspects 2

Q & A 3


Are You interested in VIN number portability?

Owner of the CAR A is willing to buy

CAR B unless his VIN number is

ported?

Owner of CAR B is refuting to port VIN

number from CAR A

Question nr.1: is this situation stopping

the deal?

Question nr.2: Why is Telco different?

Car Buying Story


Overall MNP trends & Impact on European Market

Prices declined after the introduction of MNP by 7.9%, on average, main impact on MNP is reduction of

price and market concentration ( Source: European Commission 2010, data analysed in 2008 after first year of EU MNP regulations in paper by Cho, Ferreira, Telang in The Impact

of Mobile Number Portability on Price, Competition and Consumer Welfare)

Percentage of Numbers Ported over Total Subscribers across Countries


Bloomberg informs: Russia plans to end so-called “mobile slavery” by introducing mobile number portability from December, according to Telecommunications

Minister Nikolay Nikiforov. The country will at least partially start number portability from Dec.1 as planned despite proposals to delay introduction until April 1,

Nikiforov said, according to official government newspaper Rossiyskaya Gazeta. The ministry expects about three million Russians a year to change operator while

keeping their mobile-phone number, Nikiforov told Rossiyskaya. Tele2 Russia and OAO MegaFon (MFON) have already successfully tested number portability, and

OAO Mobile TeleSystems (MBT) and VimpelCom Ltd. (VIP) followed last week, the 31-year-old minister said. Russia has a mobile penetration rate of 164 percent,

which means there are 1.64 active SIM-cards for each person in its population of 143 million, according to research agency Advanced Communications & Media.

About half of Russians are potentially ready to switch mobile operators while retaining their mobile numbers, Nikiforov said.

Cost

Declining revenues

Regulatory & Market Pressure.

Fragmented MNP

solution

Trust

Customer Experience

Challenges

Expectations

Common Approach

Common Platform

Competitiveness

Common Rules

Regulatory

MNP Challenges & Expectations

Retention

Churn


Successful MNP transformation MUST address challenges

Processes

MNP Requests Channels

MNP Provisioning Channels

MNP Churn prevention

MNP Retention portfolio

MNP Fraud Management

People

MNP Transformation

Communication between Regulator & CSPs

Communication between CSPs

Communication between CSPs & Vendors

Communication between CSPs operational unit

Platforms

MNP Platform Cost

Centralised or distributed

BSS & OSS technological constraints


MNP transformation aspects: People

MNP Transformation checklist Bi-directional communication between Regulator & CSPs

MNP Approach suitable for all parties in terms of Cost sharing, MNP execution and Market Communication

Internal CSP communication with affected business units like Marketing, Loyalty, Retention, Sales, Fraud , Customer Care

Internal CSP communication with affected IT units like Ordering, Provisioning, Network, Partner Management, Billing

Vendor Communication seeking most suitable solution for given Regulatory & Market Conditions with appropriate cost and desired implementation approach

People


MNP transformation aspects: Process

MNP Transformation checklist Design of Common & Shared MNP Processes across transformed Market:

Request Rules, Retention Rules, Provisioning Rules, Fraud Rules, Compliance Rules

Design of CSPs processes with regards to Customer Base: MNP Request Channels, MNP fees, Retention offers, Churn prediction, Strengthening of Fraud Prevention, Resource Management

Design of B2B processes between Donors & Recipients in MNP process: Fault Management, Customer Complaint Management, Regulatory Compliance

Design of processes related to Managed/Outsourced Service: Porting In SLA Management, Porting Out SLA Management, Integration to CSPs platforms, Exception & Fault Handling

Process


MNP transformation aspects: Platforms

MNP Transformation checklist Cost Bearing & Cost Sharing: dependent on centralised or distributed

approach

MNP Architecture compliant with Regulatory requirements

Multi-directional or Bi-directional transaction flow

Atomic, Shared or Outsourced Fault Management

Disaster & Recovery

Reporting

Platform


Compliance to agreed Market Specific regulations & norms

Retention Window Allowance for donor CSP to retain Customer .

Porting Request Porting Out or Porting In? Within Contract and blacklisted?

Provisioning of Request De/Provisioning of old service Activation of new service

Billing of Ported SIMs Synchronisation between old and new service provider

B2B reporting Settlements

Regulatory reporting Compliance

10 I

MNP Orchestration Sample


UK MNP process example


Every NO and SP is obliged to implement a MNP desk. The MNP desk is central contact only for other

NOs and SPs in case of occurring trouble with a porting request. The MNP desk shall be reachable

by German local fixed line phone, by e-mail and by German local fixed line fax.

The following time table for availability is mandatory:

working days 08:00 to 18:00.

Saturdays (except German bank holidays) 08:00 to 12:00

In addition the following reaction times are valid:

working days:

reception between 0:00 and 11:59 = answer on same day up to 18:00

reception between 12:00 and 0:00 = answer on following day up to 12:00

Saturdays (except German bank holidays):

reception between 0:00 Uhr and 11:59 = answer up to 12:00 of next working day

German MNP process example


Content

1 Business Transformation to MNP market

Business Transformation Key aspects 2

Q & A 3


Business Transformation is affecting entire revenue chain!

Revenue Management model from Shareholder perspective

Budget

Customer

Contributing Factors

Financial targets

Time to Market

Business Process Excellence

Operational Excellence

Risk Management

Wholesale Management

Customer Experience

Project and Change Management

Compliance

ERP Collection

Provisioning Billing

Acquisition Product Offer

Ordering

Product Strategy = Differentiation

Revenue Strategy = Differentiation (OPEX, CAPEX,

Revenue, Profit)

Think about this domains from future perspective!


An executive management initiative to align the company’s vision and strategy with its Processes, Systems,

People, Organization and Marketing Mix.

Business Transformation is about change and results.

Key results are delivered by people.

People run businesses.

Businesses are run on platforms (i.e. B/OSS).

Platform execute processes.

Processes are managed by people.

To transform business, we need to transform Process, Platform & People.

Business Transformation is Realising Future Now...


Financial Challenges

Increase Shareholder value

Open Tech. Best-of-Breed

Improved business data

Improved Partnerships

Maximize Retention

Max. Business Performance

Quick TTM, TTR

Innovative Products

Reduce Costs TCO, OPEX

Maximize Automation

Execute Strategy

Personalized Experience

Grow New Revenues

Know Better, Do Better Maintain Business Momentum Improve Business Results Information Leadership

People Organizational Vision,

Strategy, Culture, Structure

Process Industry Best-Practice

Process (eTOM, ITIL etc.). Ensure E2E .

Platform IT Strategy, Modernization, Consolidation, Pro-active Roadmap Planning, Cloud Strategy and

Planning, Infrastructure Management

3 P’s of Business Transformation

Executing strategies by Transformation can maximize the overall benefits, for both Operator & the end users.

Technology Challenges Operational Challenges Market Challenges

Executing Strategy via Business Transformation


Consumer Service [B2C]

Business model disruption by digital economy

Infrastructure

Infrastructure Enablement [B2B]

Telco

Media

1500 + Telecom Operators

Consumer Service Enablement [B2B2C]

Content Commerce Entertainme

nt

Open API Social Media

Connector Payment

GW

M2M Cloud Enterprise

Service

Voice Message Data

Smartphone hardly used for calls… UK research shows that making calls is at 5th place out of all activities like web browsing, social networks, gaming & applications. ( Telegraph UK, published June 29th, 2012)


Transformation Trends

Business Process Manager Data Transformation Transportation Product Adaptors

EAI Bus

OSS MMS

Offline Mediation Online Mediation

Real-time rating

Credit Control

Balance Mgmt

Session Mgmt

OCS

Account Receivable

Bill Run

Debt collection

Bill formatting

Billing

Convergence Billing System

POS

Marketing

Service

Customer Care

Product Order

Campaign Channel

CRMIP

Contact Center

Inventory

Workforce Mgmt

Trouble Ticket

Provisioning

FMS

RA

HR

ERP

BI/DWH

E－Care

Business Process Manager Data Transformation Transportation Product Adaptors

EAI Bus

OSS MMS

Offline Mediation Online Mediation

Real-time rating

Credit Control

Balance Mgmt

Session Mgmt

OCS

Account Receivable

Bill Run

Debt collection

Bill formatting

Billing

Convergence Billing System

POS

Marketing

Service

Customer Care

Product Order

Campaign Channel

CRMIP

Contact Center

Inventory

Workforce Mgmt

Trouble Ticket

Provisioning

FMS

RA

HR

ERP

BI/DWH

E－Care

Supplier / Partner Billing

Clarify

BAT

ArborBP

TABO

Oracle LogisticsOnline

Extranet

NPMS

MijnTelfort

NI2

Tracker

ESP-GW

CCD

HI

ESP.Apl.

Systeem

Online* CO

Online

Selfcare

ACM

Avaya ACD

CACS

Fastsave

CSC-IVR

SimUnlock

SimcardInfo

ExpertDesk

Retournet

Belwijzer

Rightnow

CENDRIS

OCRT

XML-Gen/Val

TREX

Rek.Online

GalileoBRAT

SARA

Exact

E-Incent

PowerCentre

TOLEDO Opt-Out

ODS

Business

ObjectsInsado

PPM

IPM

IM

DataGen

TABO-beheer

E2ETrack

IS Ops Webt.

Incident Reg.

BankStation

BlackBox

ESP High

usage

FAR/FOD

MACH

IXBS

CCM

TopUp IVR Postiljon

Online DTU

APRO

Cendris-tool

BOPS

OPTA

Schlumberger

CDV

Number

Inclusion

ESP

AMTRIX

Interpay

Bank

Roaming

Partner

Interconnect

PartnerOLO

XML gw

Dealer

CART

EDR-online

EDN Erase

D&B

KvK-Online

Usage

ServProv

PPAS

Online shop

Reviva

ODS

ODS

ODS

ODS

ODS

Clarify

CDV

Tabo

NPMS

Tracker

Network syst.

Sherlock

Galileo

Fastsave

Arbor

Onl.DTU

COIN

BKR/VIS

Preventel

Experian

UPS

ODS

CCD CIOT

Radical

Dashboard

Inventory Mgt

Retail Billing

Payments & Collection

Analytical CRM

Operational CRM

Sales

Sales & Channel

Mgt

CustomerInterface

Mgt

Telfort Mobile System

Overview

NPMS

IM

e-Voucher

Wholesale Billing

TUF/EMMKPN Network

Usage

Settings

Enterprise Mgt

JusticeADC

TopUp

IVR

VMDB

PPAS

PPM

ODS

Capgemini/

Ericsson

KiQ Omega

CCD

KiQ Omega

Telfort VAS/

HLR

Oracle Finance

AR

Simplification Standardization

Siloed Cobweb Horizontal

Centralization

IT

Sales

Distribution

Branding

IT

OpCo1 OpCo2 OpCo1 OpCo2

One single IT • )

•

•

•

• …

Other members of the

KPN group (other

countries)

Multi Parties

Network Network Virtual Networks

Digitalization

• On-demand digital

services

• Multi-sided business

model

• Open API

AS-IS TO-BE

• Components

standardization

• System

architecture and

basic abilities

standardization

• Globally

Transform

•Regionally

Transform

Network Network

Sales

Distribution

Branding

Sales

Distribution

Branding

Sales

Distribution

Branding

Leveraging all-rounds experience in Transformation projects


Time to Market Factor – what it is really?

Surrounding Systems

TTM = Product(Product Catalogue)+ Order (CRM)+ Huawei (CBS) + Network(Provisioning)+Legacy(Change Management)+ Legacy ( Manage Service - Change Management)

• Internal ESB with predefined SOA/API communication

• Legacy systems integration as an integral part of OOTB Process design

• 3rd party Vendor Management included via E2E Managed Service competence

• One product Configuration deployed to One CRM and One Convergent Billing System

• One Data source for Settlements and Partner Management

• Efficient and embedded Reconciliation & Data monitoring

It is more than Your BSS platform exchange

All Processes & Contributing Factors

• Roles and Responsibilties as a part of Target Operational Model Design

• Business Architecture & Business Readiness Support for succesful BSS deployment


Huawei Business Transformation Library

Non Huawei Systems Huawei system

Billing CRM Rating & Charging

Online Mediation

Offline Mediation BI OSS


Online Mediation

Offline Mediation BI


Online Mediation



Online Mediation


Charging

&Billing CRM Rating

Online Mediation



Online Mediation


End-2-End BSS & OSS Eg.: China Mobile Hebei, KPNI Magnum, …

NGBSS Solution Eg.: KPN Netherland, e-Plus Germany

CBS with 3rd Party CRM Eg.: Safaricom Kenya, NTS Malaysia , VIVA

Bahrain ...

Online Charging System Eg.: China Mobile Guangdong, Etisalat Nigeria, BrT Brazil,

AIS Thailand, STC Kuwait…

Service Controller Eg.: China Mobile Beijing, Telkomsel Indonesia

Convergent Rating Engine Eg.: Celcom Malaysia, VDF-ES

OSS


End–to-end business process transformation based on OOT BPs and eTOM

Best of suite NGBSS platform

Complete business transformation including Target Operating Model &

Business Change Management

Approx 3+ Mil pre & post customers

Business Process Driven Gap analysis based on the Huawei

OOTB Business Processes. Gaps decomposed into detailed

requirements.

E2E Customer Journeys used to validate the process scope.

Detail Design based on designed To-Be Business Processes and

detailed requirements.

Change Management, Business Readiness & E2E testing led by

Huawei

Huawei partnered with UK Operator to deliver an E2E Business Transformation & replace the heavily customised, end

of life, legacy IT systems with Huawei “Best of Suite” NGBSS solution in order to meet their growing challenges and support future growth plans.

Heavily customised legacy systems were reaching end of life driving high

maintenance cost

Disparate processes resulted in slow TTM and high operational costs

Different processes & systems for Fix and Mobile prevented product

innovation and FMC capabilities

Accelerated and efficient To-Be process design

Reduced number of tarrifs & products X4

Automated and standardized multiple processes across multiple channels

Delivered best in class process capabilities to enhance customer experience and improve

operational efficiencies

Approach

Challenge Scope

UK Operator Case Study


End–to-end business process transformation based on OOT BPs and eTOM

Complete business transformation

Wire line and wireless telephony, internet and TV

Approx 40+ Mil Customers: Wholesale, Corporate, SME and Consumer

Established a strategic & trustworthy partnership between CSP & Huawei

Business Driven programme and supported by IT

Completely re-design and rationalize the commercial Propositions and re-

engineer Business processes

Leveraged Best Practice & Lessons Learned from previous KPN projects

Mobilised & communicated comprehensively and widely with all relevant

stakeholders

Huawei partnered with NL Operator to deliver an E2E Business Transformation & migrate legacy IT landscape to

advanced Huawei “Best of Suite” NGBSS platform in order to reduce TCO, shorten TTM and improve customer

experience

Over 80 BSS systems of which 75 % were out dated & unstable driving high

maintenance costs

Complex processes, which lead to inefficient business operations and poor

customer experience

Limited innovation capabilities and Long TTM was a recipe for churn

Accelerated and efficient To-Be process design .

Complete immediate view of the customer improving CX

Automated and standardized multiple processes across multiple channels

Successful partnership and

Approach

Challenge Scope

NL Operator Case Study


Thank You, any questions?


Back Up Slides


General

Porting process – optimum case

zMRDB client- / server- operations

NO proprietary

interface

NO proprietary

interface

X.400

customer NO_rec NO_del other

NOs

cancellation / disclaimer

porting request

adm

inis

trat

ive:

alig

nm

ent o

f m

od

alit

ies

porting request porting request

porting confirmation porting confirmation

porting date

op

erat

ion

al: i

nfo

rmat

ion

of

net

wo

rk o

per

ato

rs

switching order switching order initialisation initialisation

enquiry of switching

information

enquiry of switching

information enquiry of switching information

switching and confirmation switching and confirmation

switching and confirmation

comm.

interface SP_rec SP_del

SP_rec: receiving SP

NO_rec: receiving NO

NO_del: delivering NO

SP_del: delivering SP


E-Plus EAI

Switching order for network operator

The E-Plus internal

architecture for MNP for

service providers is as

follows.

The guiding system for

MNP is the inventory

server (IVS). The IVS is

maintaining the phone

numbers and is

performing the outside

communication related

to MNP.

E-Plus internal architecture

service provider Edifact X.400

T-Systems

X.400 CUG

CASS inventory server

MNP GbR

zMRDB mediation

device

STP HLR further network

T-M

ob

ile

Vo

daf

on

e

O2

vist

ream

other service providers


Implementation MNP process

zMRDB access (optional)

X.400-implementation

MNP-desk implementation

E-Plus

configuration of SP

for MNP at E-Plus

new SP

send MNP-desk data and

X.400 data to E-Plus

E-Plus / new SP

bilateral tests

E-Plus

announcement to mobile

SPs

E-Plus

request for multilateral

tests

at mobile SPs

new SP

multilateral tests with

other SPs

production

new SP

staffing of MNP-desk

new SP

configuration of mail,

phone, fax for MNP-desk

new SP

ordering of new X.400-

mailbox

new SP

implementation of X.400-

mailbox

new SP

implementation of MNP

XML-telegrams

new SP

request read access

zMRDB

new SP

set-up access zMRDB

The graphic below details the implementation process for MNP.


= deactivation date

Porting order

Timelines

The window of opportunity for requesting MNP is limited to 123 calendar days before

and 31 calendar days after end of contract.

Requests outside this time frame will be rejected.

With end of contract the customers (old) SIM will be deactivated.

There is no claim for

an actual porting before end of contract

the old SIM staying activated after end of contract.

123 cd 31 cd

end of contract

window of opportunity

t


Porting order

Private customer

MSISDN

Old Service Provider

Contract end date

Surname

Given name

Date of birth

Business customer

MSISDN

Old Service Provider

Contract end date

Company name

Customer number

All data has to be exact as an automatic check will be performed during porting negotiation! Typing mismatches will always result in a rejected request!

Necessary customer information

At least the following information will be needed to allow a successful porting negotiation.


Porting negotiation

Porting request - timeline

1st: SP_rec sends porting request to SP_del via X.400.

2nd: After max. 3 working days SP_del answers to SP_rec via X.400.

3rd and 4th: This is followed by 1 day buffer to allow SPs to inform their NOs and to

allow NOs to prepare the porting.

5th: 2 calendar day before actual switching day the latest switching orders have to be

set by NOs.

minimum time frame to be considered!

PORT 3 wd Buffer 1 wd guard time 2 cd t/d

-2

send porting order both SP 3.

start porting process both NO 4.

-6

send porting request SP_rec 1.

-3

answer to request SP_del 2.

0

porting process all NO 5.


Porting negotiation

Porting request

There are 2 types of porting requests:

Requests for private customers and

requests for business customers.

We recommend to always request a porting

date “asap”. In this case a smooth switch

from one NO to the other is ensured.

In case more than one MSISDN of a business

customer shall be ported it is necessary to

request the porting for every single

MSISDN.


Porting negotiation

Answer to Porting request

It is of major importance to

analyse the answer to the

porting request as it may be

rejected due to several issues.

The line “status” may contain

several values:

0000 confirm

0100 syntax error 0101 telegram type unknown

0102 wrong porting ID 0103 wrong version-ID

0200 unknown MSISDN 0300 wrong contract data

0400 contract not cancelled 0500 double request

0600 already blocked 0700 request to early

0800 request to late 0900 wanted date to early

1000 wanted date to late 1100 wanted date not possible


Porting negotiation

Cancellation of Porting request - timeline

1st: SP_rec sends cancellation of porting request to SP_del via X.400 2 full working

days before start of porting guard time the latest.

2nd: After max. 1 working days SP_del answers to SP_rec via X.400.

3rd and 4th: Both SPs are ordering their NOs to cancel the porting.

Any request outside this time frame will be rejected.

minimum time frame to be considered!

SORT 2 wd guard time 2 cd t/d

-2

send cancel order both SP 3.

start cancel process both NO 4.

-4

cancelation request SP_rec 1.

-3

answer to request SP_del 2.

0

planned porting all NO 5.


Porting negotiation

Cancellation request

Also answers to cancellation requests have to

be checked for their result values.

These may be:

0000 confirm

0100 not readable

0101 telegram type unknown

0102 wrong porting ID

0103 wrong version-ID

0200 unknown MSISDN

2000 No request available

2100 no request by SP_rec

2200 to late

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