implementing ngoss maximize success of lean...

© 2004 IBM Corporation

IBM Telecom Industry Solutions

Implementing NGOSSMaximize Success of Lean Operations

Joseph ZiskinVice PresidentTelecom Solutions


TMW NGOSS Executive Summit © 2004 IBM Corporation2

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Within the telecommunications industry, we have many examples of transformation activities taking place along the value chain

• Sprint Wireless and Qwest• BT organized internally along

network and retail businesses• BellSouth operates fast

growing standalone wholesale business

• AWE / Cingular share network resources (now merging)

• BellSouth outsources IT function

• Verizon creates separate Logistics division

• Sprint Wireless outsources call center functions

• Qwest outsources IT support

• Qwest’s commercial agreements with Echostar, Sprint Wireless

• Emergence of multiple mobile virtual network operators (Virgin Mobile, General Motors)

• Centrica (multi-service company in UK) bundles oil and gas, telecom services and consumer products

PAST AND PLANNED ‘TRANSFORMATION’ ACTIVITIES IN TELECOM / MEDIA INDUSTRY

These Transformation initiatives require significant strategy, process and IT changes

BrandNetwork



InfrastructureOperations

Fulfillment Assurance BillingOperationsSupport &Readiness

Customer Relationship Management

Service Management & Operations

Resource Management & Operations

Supplier/Partner Relationship Management

(Application, Computing and Network)

Enterprise Management

Strategic &EnterprisePlanning

Financial & AssetManagement

Enterprise QualityManagement, Process & ITPlanning & Architecture

Stakeholder & ExternalRelations Management

Brand Management,Market Research &Advertising

Human ResourcesManagement

Disaster Recovery,Security & FraudManagement

Research &Development,TechnologyAcquisition

Strategy, Infrastructure & ProductProductLifecycleManagement

InfrastructureLifecycleManagement

Strategy &Commit

Marketing & Offer Management

Service Development & Management

Resource Development & Management

Supply Chain Development & Management

(Application, Computing and Network)

Customer

Element Management

Network Management

BusinessManagement

ServiceManagement

Network and Systems Management Processes

Service Development and Operations Processes

Customer Care Processes

Customer

Network Element Management Processes

Information System

s Managem

ent Processes

NetworkPlanning andDevelopment

NetworkProvisioning

NetworkMaintenance &

Restoration

Network DataManagement

NetworkInventory

Management

ServicePlanning andDevelopment

ServiceProblem

Management

ServiceQuality

Management

Rating andDiscounting

ServiceConfiguration

Customer Interface Management Processes

Sales OrderHandling

Invoicingand

Collections

ProblemHandling

CustomerQoS

Management

Physical Resource and Information Technology

1980s 1990s Today

On Demand

TMN TOM eTOM

… growth meant everything during the boom years of the late 1990s, when companies had neither the time nor the inclination to consider which components could be reused in other products. The quickest way to get out new offerings was to patch the existing architecture by forging connections between whatever systems needed them immediately.

The result was an increasingly complex, spaghetti-like architecture littered with incompatible stand-alone systems, based on software from a number of vendors, and often using a variety of data formats, such as customer databases with different sets of vital statistics.

“The IT factor in mobile services”The McKinsey Quarterly, 2003 Number 3

IBM helps telecommunications clients tackle enterprise wide transformation – taking Lean strategy to implementation

IT

Industry



Telco On Demand Issues Solutions are inflexible and expensive– Must adapt to changing business

environments– Need to reduce time and cost

Models capturing business and system semantics need to drive implementation

– NGOSS Process diagrams, use cases, etc. are good for capturing business & integration requirements, but generally are difficult to directly use to build solutions or to simulate business processes

– More comprehensive and integrated tools and methods are needed

– CBM (Component Business Model) is a critical starting point

Management and Monitoring of business operations is needed to manage the health and performance of the business

– Need business models that define business metrics and monitoring “probes” to capture raw events and transaction data and aggregate/correlate them for measurement against business objectives

Strategic Objectives, KPIs

SOA

IT Infrastructure

BusinessSemantics

Data and Semantics

Telco Strategic Plays(BT, CRM, OSS/BSS …)

Fulfillment Assurance Billing

Implementation

Business Operations

eTOMGAP

SID GAP



Strategy ModelComputation-IndependentModel

Platform-SpecificModel

Platform-IndependentModel

Bus

ines

s Le

vel

IT L

evel

IBM Solution Approach – the Model-Driven EnterpriseLayered model approach to integrate, monitor & manage business processes



Strategy ModelComputation-IndependentModel

Operation Model

Platform-SpecificModel

Implementation Model

Platform-IndependentModelExecution Model

Strategy Model

Bus

ines

s Le

vel

IT L

evel

Executive

LOB Manager

IT Architect

IT Developer

IBM Solution Approach – the Model-Driven Enterprise

Design, Objectives KPIs

Semi-Automatic

Transformation

Performance

Metrics

Realization Measurements

IT infrastructure - hardware, sys software, mid-ware, apps

Documents, flows & links to people, appl’ns & data sources

Processes, activities & business rules

Strategic business objectives & business design

Layered model approach to integrate, monitor & manage business processes



…is similar to NGOSS views and provides a tangible foundation for telco Solutions

LogicalView

PhysicalView

Service Developers ViewService Providers View

ImplementationDeployment

Business System

Implementation Capabilities, Constraints & Context

CorporateKnowledge

Base

NGOSSKnowledge

BaseShared

Deployment Capabilities, Constraints & Context

Business Capabilities, Constraints & Context System Capabilities,

Constraints & ContextCorporateKnowledge

Base

NGOSSKnowledge

BaseShared



Getting to Lean – using the CBM methodology the Telecom business can be modeled as the collection of networked components that come together in order to create business value

Component Business Modeling (CBM) is a technique for modeling anenterprise into its fundamental building-blocks (components).

Each component is a logical grouping of the people, technology, and resources that deliver specific business value and can potentially operate independently.



A CBM engagement models the current and target business, set the strategy, and quantify the associated costs

Shortfall Impact

CurrentEnvironment

TargetRequirements

Organization

Systems

Processes

PolicyDefine

OpportunitiesDevelop

InvestmentRoadmap

Consolidation& Planning

Define CBM Business

Model

Interpret theirBusinessStrategy

VisioningProjectStartup

Investment D

rivers

Investment O

pportunity

Phase 1: Insight Phase 2: Requirements Phase 3: Investment



The IBM CBM is generically based upon the eTOM and aligned with our solution focus areas



CBM Benefits: strategic initiatives are matched to business components and IT capabilities

Activities not sufficiently supported by ITNo responsive end-to-end integration

Gap

Shortfall Impact Optimization InitiativesIntegration / implementation of new applications for high-priority business components

Complex and costly IT systems compared to value provided orIT performance / support is not sufficient

Misalignment

Analysis of cost / value relationshipUp- or downscaling of the IT systems based on value

Redundant systems with similar functionalityInconsistent support of activities and workflows

DuplicationSelection of best applicationMigration and shut-down of redundant systems

High cost with increased complexityUnclear responsibilities Conflicts in application managementInflexibility in scaling IT

Over extension

If possible, componentization of application

Addressing Application / Business Component Mapping Shortfalls

Source: IBM Institute for Business Value, IBM BCS: Component Business Modeling – CBM for IT Strategy, October 2003



IBM incorporates CBM in the first phase of Model Driven Enterprise (MDE). Through our integration architecture we make NGOSS and other standards real with tools & methods.

Key StandardsTMF, IETF, DMTF

... . . .

Integration Architecture SPDE (Service Provider Delivery Environment)

Model Business Process

Establish Requirements

Test & Deploy Design &

Construct

Monitor

Operations Development

Business

MDE MethodsRUP, CBM

MDE ToolsRose



Our pragmatic approach uses common tools & technologies and achieves extraordinary results

Execution Workbench

Rational Tools

Modeling:•Strategy Model•Operation Model•Execution•Implementation

Model Brokering & Sync:•Strategy Operation

Model-based Analysis:•Simulation•Performance Analysis•Logical Analysis

Business Asset Library

SecurityProfile

Control Policy

Model Data Manager

Solution Composer

Strategy Workbench

ABO Editor

SolutionRepository

Solutions/Models

Com

poser

Asset Reuse

ModelLinkage

ModelSync

WBI Modeler

Leverage SW

G Tools

Leverage SW

G Tools

Operation Workbench

WBI Foundation ToolsBPEL Editor

Connector Editor

Lotus Workplace ToolsPresentation Editor

Implementation/RuntimeImplementation/Runtime

WB

I Monitor

WB

I Server

Lotus Workplace

Leverage Industry (NG

OS

S)

Leverage Industry (NG

OS

S)



Flexibility that benefits you and your customers

The Challenge

Rapidly introduce new business to business VoIP service. Put the customer at the center of the universe.

The Solution

Leverage CBM methods to align business and IT objectives, streamline processes and differentiate from competition.

The ResultsSupport design and implementation of OSS for OneFlex. Deploy standards based solution with IBM methods, tools and integration architecture (SPDE). Qwest provides a customer experience that is high-quality and efficient.

Case Study: QWEST



Keeping the focus on your priorities

The Challenge

High costs and long lead times for launching new services. Create new architecture to get new products to market quicker.

The Solution

Create CBM for the Card Services business. Identify priorities for transformation, quantify business case, help create the new supporting IT architecture.

The ResultsBusiness-aligned technology investment strategy. Identified and executing on US$40 million of simplification and cost savings projects over two years.

Case Study: Bank of America



Innovation for your bottom line

The Challenge

Distributors use tedious manual order-validation system, leading to configuration errors that sometimes took weeks to identify

The Solution

Leverage CBM to create architecture for Web services. Implement service that makes it easy for distributors to integrate automated order-validation tool into their legacy.

The Results

Error rate reduced from > 4% to <1%; operational savings of $300k in 4Q03. Time to identify order failures reduced from days to seconds; number of distributors using validation system went from 5% to 95%.

Case study: IBM Server Group



Getting to Lean: Where to begin?

Start by deconstructing your business model—use a model like CBM to break it down into discrete business processes and functions

These processes and functions are what we call service components

Methodology and Tooling that leverage NGOSS are used to significantly speed transformation, helping you implement business oriented contracts using agreed upon cost structures and service levels