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Reducing costs and customer churn-rate through converged Service Quality Management Vladimir Levin PhD, CEO Wellink Inc.

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Page 1: Reducing costs and customer churn-rate through converged ...en.wellink.ru/sites/default/files/reducing_costs_and_customer_churn... · Omnitron iConverter G4 Decembe r 2008 September

Reducing costs and customer churn-rate

through converged

Service Quality Management

Vladimir Levin

PhD, CEO Wellink Inc.

Page 2: Reducing costs and customer churn-rate through converged ...en.wellink.ru/sites/default/files/reducing_costs_and_customer_churn... · Omnitron iConverter G4 Decembe r 2008 September

Russia

2

Area 17 125 187 km² (the biggest in the world)

85 subjects (states)

Population 146 100 000 (9th place in the world)

Active internet and telecom

services users 59%

(68.7 mil. People 18-55 years old)

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Wellink Company

Found in 2010 (first project)

Russian Software Developer

• The most successful SLA monitoring solution, №1 in Russia

(>23K monitoring end-points)

• Team of more than 100 employees

(developers, testing crew, engineers, sales and analysts)

• Over 100 man/years of development service assurance solutions

• Headquarters in Moscow, R&D in Novosibirsk

Main projects:

Rostelecom (>10K), MTS (>1k), Russian Pension Fund (>2K),

Ministry of Law (near 2K), FSO (KGB) (>300) etc.)

3

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Our Basic Customers

IP services monitoring and management customers:

4

Government

Institutes, Dept’s.

Telecom operators and

service providers

Cloud service providers

(Data Centers)

SME/SOHO

Large Corporate

Enterprise (banks, retail,

energy holdings )

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Russian SLM market assessment in 3-5 years

Basic trends:

• Increasing service value for B2B, B2C

• Telecom and IT services demands to be monitored

• Monitoring per service cost value must be decreasing to cover more services and area

5

Market segment Service Access

Points (mil.) Service Cost per

end-point (USD) Size of the

market,

IP VPN services 1 300 300

Corporate IT services and 5 150 750

Cloud Services 10 35 350

Internet Access (Broadband, 3G, 50 15 750

M2M services (e-government,

etc.) 100 10 1’000

Overall size of Russian SLA management market 3’150

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Customer satisfaction assessment

6

Most customers

noted high

operator

response time

on service

problems

Poor quality services became a stereotype of the

business on the telecom market

Over 50% of

customers are

not satisfied with

service level

provided

Over 60% of

customers do

not use

helpdesk call-

center services

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Our Customers

7

Over 500 000 B2G and B2B

customers

10.6 million fixed-line broadband

subscribers

Has the largest backbone network in

the country with a total length of about

500,000 km.

Rostelecom

Is Russia’s largest national

telecommunications operator with

presence in all Russian regions.

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Rostelecom service quality management strategy

8

- Year 2013-2015

- B2B, B2G oriented

- L3/L2 Virtual Private

Network services

SLA management, proactive service

monitoring, responsibility

demarcation, conflict management

Service Level

Management

- Year 2016-2017

- B2C oriented

- Broadband Internet Access,

3G/4G services

CEM Assessment, Internet,

IPTV and VoIP SQM

Customer Experience

Management

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Service quality operational assessments

9

• Network Complexity

– Multi-vendor, multi-technology network

• Third parties involved

– a complex structure of partnerships, it is difficult to determine where is the problem and who is responsible

• No standards

– Absence of unified standards and methods for quality control of packet network

customer

СE СE

customer

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SLM Gap Analysis

10

AS-IS

• No customer experience view, no tools to measure and monitor customer service

quality

• A lot of monopoly regional operators, partner service level is poor, no tools to

demark responsibilities with partner

• Large regional department branch, no transparency across end-to-end regional

customer services

TO-BE

• Customer experience based on service quality is being measured and proactively

monitored

• Partner responsibility boundaries are defined and UC agreements are signed

• Transport network are monitored and demarcated, department OLA`s are

implemented

Decision:

To deploy an SLA management solution

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Targets and goals of SLM project

11

External goals:

Internal goals:

Increase key customers loyalty and B2B/B2G services

differentiation by providing a guaranteed service level

Customer and partner

responsibilities demarcation

2 Proactive service

degradation monitoring instead of service failure

registration

4 Provide additional customer services,

like utilization monitoring, IT and

cloud services availability

6 Strong competitive ability on telecom

market MPLS based services level

assurance

1 Customer “end-to-

end” service quality management (CE-

CE)

3 Lower time and

expenses to form scheduled SLA

reports

5

SLA service delivery automation

(Fulfilment), service performance

monitoring (Assurance), scheduled SLA

reports and compensation calculation

(Billing)

2 Service Level Agreement

development with a National wide

service quality thresholds

1 Integration with legacy IT systems

3

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wiSLA solution overview

A comprehensive customer service

quality vision. A tool to project it onto

company business-processes

Efficient conflict management solution

based on responsibility demarcation

and real-time monitoring

Service quality management and

Assurance SLA process automation

platform – an innovative solution for

telecom, IT and cloud services

1 2

3

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Why wiSLA solution

Multiportal architecture – customer and partner

self-care access

Big Data inside - handle a huge amount of probe

data (>1M)

Process-oriented architecture and SOA principles

– easy operation and integration

Business Process Engine Inside – easy manage

and customize SLA management processes

13

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wiSLA on service and SLA lifecycle

14

Service

Lifecycle

SLA

Lifecycle

SLA contractsnegotiation Order Management

Monitoring, fulfillment,

support, billing

Analysis

Revaluation

SLA/Service creation

Product/Service

creation

Launch

and Sales Implementation

Operation

Evaluation Service

Cancel

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Business SLA model

15

Customer SLA (Service Level Agreement - SLA)

Partner SLA (Underpinning Contract - UC)

Internal SLA (Operational Level Agreement – OLA)

- Customer SLA service internal assurance

- Increasing corporate business process

efficiency

- Increase revenue pre

customer due to value

added SLA services

- Lowers churn-ration due

to increasing customer

loyalty

- Lower the risks of

customer SLA violation

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VPN service SLA proactive monitoring

16

Moscow Region South Region

Topology: «Star» with no access points limit «Star-in-Star» «Full-mesh»

Customer SLA (E2E)

wiSLA

solution

Management

VPN

CE Last mile Last mile

Probe

Probe management and data collection

CE

Internal OLA Partner UC

Internal OLA

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wiSLA supported devices

- Major Release

Wellink wiProbe

ETL.Mini

ETL.Micra

ETL.SW

Accedian

MetroNODE

Cisco IP SLA

891 Series (firmware

15,1(3)Т1 NPE)

1841 Series (firmware

12.4(15)T)

2600 (firmware 14.T5)

wiSLA 1.0 wiSLA 2.0

wiSLA 1.7

Metrotek

BERcut ETL

Accedian

EtherNID/MetroNID

RAD Data Communications*

ETX203A (firmware 4.3 or higher)

OneAccess*

1645 Series

RAD MiNID

Juniper RPM

Huawei

ATN905

Omnitron

iConverter G4

Decembe

r

2008

September

2009

May

2012 December

2013

- Minor Release

wiSLA 3.0

wiSLA 3.2 wiSLA 3.3

17

September

2014

wiSLA 3.4

Wellink

wiProbe2.0

Raisecom

RAX711

MSG1200

Gazelle

S1112i-PWR

Albis

Acceed 1416

March

2013

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SLA probes used in project

18

Core Network Monitoring (OLA)

- Network equipment embedded measurement technologies (OAM, Cisco IP SLA, Juniper RPM)

- null-cost solution

- Fast coverage spread across the network

Partner SLA (UC)

- Accedian EtherNID/MetroNID family demarcation devices with 100 Mbit/s – 10 Gbit/s interface support

- high performance and measurement precision

Customer SLA

- Wellink wiProbe family devices with L2-L7 service quality measurement

- Cross-IP address network solution

- self-management & configuration

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wiSLA KPI&KQIs

19

KPI

Service

KQI

Product

KQI Service

Availability

Service Degradation Service

Unavailability

Mean Time Between

Failure

Packet

Delay Jitter Packet Loss

Bandwidth

Utilization

TM Forum SLA Handbook

Penalty

for SLA

violation

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wiSLA users in Rostelecom

20

Real-time

Customer Service

Scheduled Reports

Infrastructure

Help Desk

Network

Operational

Centre (NOC)

Service

Development

Customers

Top

Management

Partners (ISP)

Network

Planning

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Service Oriented WEB Interface

21

Social network experience based

portal architecture allows to

customize user interface easily by

adding, removing and positioning

widgets

Advanced search allows

to find quickly and filter

displayed information by

contract, service or

access point

Fault alarming will

always keep you

informed of service

problems and

performed maintenance

Side filter tab

provides a quick

access to desired

information cut

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Mobile access to service quality info

22

Windows Gadget

Android

iOS

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Quality of Information Services

System integration

framework is based on TM

Forum NGOSS and

OSS/J SOA Enablement

APIs

Customer SLA concept is

based on ITU-T E.860

Framework of Service

Level Agreement SLA

SLA management

methodology is complied

to TM Forum GB917 SLA

Management Handbook

1 2

3

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Using TM Forum NGOSS

24

KNOWLEDGE BASE

Cooperative Corporate

knowledge base

ProductComponent

ProductSpecCharacteristicValue(f rom Product Specif ication ABE)

ProductSpecCharacteristic(f rom Product Specif ication ABE)

ProductOffering(from Product Offering ABE)

ProductBundle

ProductCharacteristic

productCharacteristicValue

validFor

0..1

0..n

0..1

0..n

ProdSpecCharValueInstantiatedAsProductCharacteristic

0..1

0..n

0..1

0..n

ProdSpecCharDescribesProdCharacteristic

Product

name : String

description

productStatus

productSerialNumber

validFor : TimePeriod

1

0..n

1

0..n

ProdOfferDescribes

0..1

0..n

0..1

0..n

ProductBundleComprisedOf

0..n 0..n0..n

ProductReferences

0..n

0..n 10..n 1ProdCharDefinesTheConfigurationOf

Place

(from Entities)

0..n

0..n

0..n

0..n

ProductLocatedVia

Resource

Design /

Assign

Resource

Design /

Assign

Cu

sto

me

r M

gt

Serv

ice

Mg

tR

es

ou

rce

Mg

t

Resource

Inventory

Mgt

Resource

Inventory

Mgt

Resource

Status

Monitoring

Resource

Status

Monitoring

Resource

Problem

Management

Resource

Problem

Management

Resource

Performance

Monitoring/

Management

Resource

Performance

Monitoring/

Management

Workforce

Mgt

Workforce

Mgt

Resource

Logistics

Resource

Logistics

Correlation

& Root

Cause

Analysis

Correlation

& Root

Cause

Analysis

Resource

Activation

Resource

Activation

Customer

QOS/ SLA

Mgt

Customer

QOS/ SLA

Mgt

Customer Billing

Management

Customer Billing

ManagementCustomer Service /

Account Problem

Resolution

Customer Service /

Account Problem

Resolution

Service

Design /

Assign

Service

Design /

Assign

Product / Service

Catalog Management

Product / Service

Catalog Management

Service Rating

/ Discounting

Management

Service Rating

/ Discounting

Management

Receivables

Management

Receivables

Management

Voucher

Management

Voucher

Management

Service

Config Mgt

Service

Config Mgt

Arbitrage

Management

Arbitrage

Management

Resource Testing MgtResource Testing Mgt

Resource

Data

Mediation

Resource

Data

Mediation

Billing Data

Mediation

Billing Data

Mediation

Service

Quality

Monitoring

& Impact

Analysis

Service

Quality

Monitoring

& Impact

Analysis

Service

Performance

Mgt

Service

Performance

MgtService

Problem

Mgt

Service

Problem

Mgt

Resource

Planning/

Optimization

Resource

Planning/

Optimization

Enterprise Management

Customer Contact, Retention & LoyaltyCustomer Contact, Retention & Loyalty

Product Management

Market / Sales

Management

Supplier / PartnerManagement

Partner ManagementPartner Management

Product Lifecycle

Management

Product Lifecycle

Management

Supply Chain ManagementSupply Chain Management

Campaign ManagementCampaign Management Channel Sales

Management

Channel Sales

Management

Security

Management

Security

ManagementHR

Management

HR

ManagementAsset

Management

Asset

ManagementKnowledge

Management

Knowledge

ManagementFinancial

Management

Financial

Management

Resource

Provisioning /

Configuration

Resource

Provisioning /

Configuration

Customer Self ManagementCustomer Self Management

Order MgtOrder Mgt

Product Performance

Management

Product Performance

Management

Product Strategy /

Proposition

Management

Product Strategy /

Proposition

Management

The TAM R2.0Corporate Sales

Management

Corporate Sales

Management

Customer

Information

Management

Customer

Information

ManagementBill

Formatting

Bill

Formatting

InvoicingInvoicingQuotation

Engine

Quotation

Engine

Collections

Management

Collections

Management

Service

Inventory Mgt

Service

Inventory MgtService

Specification

Mgt

Service

Specification

Mgt

Resource

Specification

Management

Resource

Specification

Management

Resource Domain Management (IT Computing, IT Applications, Network)Resource Domain Management (IT Computing, IT Applications, Network)In

teg

ratio

n in

fras

tructu

re:

bu

s te

chn

olo

gy/ m

idd

lew

are

/ bu

sin

ess p

roce

ss m

anag

em

en

t

SLA MgtSLA Mgt

Real-time

Billing

Management

Real-time

Billing

Management

Oper Support & Readiness Fulfillment Assurance Billing

Fraud

Management

Fraud

Management

Revenue

Assurance

Management

Revenue

Assurance

Management

Enterprise Management

Strategy, Infrastructure & Product Operations

Fulfillment Assurance BillingProductLifecycleManagement

InfrastructureLifecycleManagement

OperationsSupport &Readiness

Customer Relationship Management

Service Management & Operations

Resource Management & Operations

Supplier/Partner Relationship Management

Strategy &

Commit

Marketing & Offer Management

Service Development & Management

Resource Development & Management

Supply Chain Development & Management

(Application, Computing and Network)(Application, Computing and Network)

CUSTOMER

Enterprise Effectiveness

ManagementKnowledge & Research

Management

Enterprise Risk

Management

Strategic & Enterprise

Planning

Financial & Asset

ManagementStakeholder & External

Relations Management

Human Resources

Management

TNA

eTOM

TAM

SID

NGOSS

knowledge base

Shared Information Model

Security

Business Process

Policy

OSS Applications

OSS Framework Services

Basic Framework Services

Basic Mechanisms

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Solution architecture and integration

25

OSS/J

Probe Alias, IP

address, maintenance

windows

SQL

Customers, Contracs,

Access Points

SOAP

SNMP

Inte

gra

tio

n

Fra

me

wo

rk

IBM Tivoli

Netcool

CRM

NRI/SI

Faults, Service

Degradation

Partners

3rd Party

Systemes

Network

Devices

Row Data Storage Apache HBase

wiSLA

SQM

wiSLA

Reporter

Eclipse BIRT

wiSLA

Fault

Manager

NRI/SI

&

KQI/KPI

Customers SLA Manager

wiProbe

REST SNMP v1, 2, 3 SSH/CLI

Collector

Android wiSLA Widget

for Windows

BPM

Engine

iPhone SLA

Manager

Portal

Self-Care

Portal

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Thank you! Vladimir Levin

PhD, CEO Wellink Inc.

[email protected]

+7 495 374 6678

Russia Today

www.youtube.com/user/RussiaToday