revenue assurance convergence to business assurance

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Ahmad Nadeem Syed Director Revenue Assurance & Fraud Management 1 Revenue Assurance Business Assurance

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The managements of telecom sector is progressively relying much more on Revenue Assurance function to assure not only the revenue but also other business components also, including cost and marging assuurance, systems, data integrity, customer churn management resulting convergence of RA function into Business Assurance in the wake of fast evolving technologies and new type of players entring the market.

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Page 1: Revenue Assurance Convergence to Business Assurance

Ahmad Nadeem SyedDirector Revenue Assurance 

& Fraud Management

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Revenue Assurance

Business Assurance

Page 2: Revenue Assurance Convergence to Business Assurance

My Brief Introduction

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● Currently Working as Director Revenue Assurance & Fraud Management in Mobilink with 37 million subscribers

● Total Experience – 32 Years

● Telecom Experience – 24 Years 

● Expertise‐ Billing, Revenue Assurance, Fraud Management‐ Credit & Collection‐ Process improvement, designing and computerization‐ Business Planning and Budgeting‐ Interconnection and Cost Modeling and Regulatory Affairs,‐ Financial Management

Page 3: Revenue Assurance Convergence to Business Assurance

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● Role of revenue assurance in telecom sector● Generally practiced coverage of RA● Leakage pain points● Why Business Assurance? ● How synergies are being developed● What is the future outlook of Business Assurance?

Contents

Page 4: Revenue Assurance Convergence to Business Assurance

Primary Goal of  Business is Maximizing Profits

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How to achieve?● Revenue Growth – Marketing & Sales

Continued spending  with unsure earnings● Cost cutting or controls 

Possible reduced performance ● Capex reduction

Affected QoS for Internal and External Customers Supplemented By

● Revenue Assurance – (An integral measure)Little spending – Additional Revenue

Page 5: Revenue Assurance Convergence to Business Assurance

Complexity of Network Demands Robust Assurance  

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Page 6: Revenue Assurance Convergence to Business Assurance

Revenue Losses 

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● Juniper research  in 2011 ‐ The loss at $58b  (6%) ● KPMG Survey 2009,  ‐ Network, Business and Fraud

Page 7: Revenue Assurance Convergence to Business Assurance

Revenue Assurance is All about Validations

Data Capturing

• Network Elements

• IT systems• Billing Systems• Data ware house

Data Processing

• Filtering • Rating • Billing 

Reporting

• Revenue  • Collections• Discounts• Others

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Product Management

Traffic Assurance

Subscription Assurance

Rating and Charging Accuracy

Receivable Management

Page 8: Revenue Assurance Convergence to Business Assurance

But is it Enough?

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What about?● Cost leakage/wastage and revenue loss because of

‐ Unauthorized access‐ Continued configuration mistakes‐ Customer dissatisfaction/Churn

● Opportunity loss● Regulatory risks

And many others……..

Page 9: Revenue Assurance Convergence to Business Assurance

Organization Behavior ‐ Certain Facts

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● The CEO may not be ware of true results as operations departments tend to cover up:‐ The inefficiencies‐ The Underperformance‐ The mistakes

● The HODs may not be presented true state of affairs of their own functions

● Different/conflicting results by various departments

Page 10: Revenue Assurance Convergence to Business Assurance

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Convergence Is Taking Place

Page 11: Revenue Assurance Convergence to Business Assurance

The Businesses Needs

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Independent function other than core business operations● which is able to challenge and respond to 

observations in core business operations with‐ Impartiality‐ with no undue influence from other

● Which is empowered and recognized at “C” Level● Which has in place necessary:

Data Access

Tools

SkillsPrevention Detection

Correction Investigation

Fram

ework

Page 12: Revenue Assurance Convergence to Business Assurance

Data Access Available with Revenue Assurance

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MSC IN HXC MediationBillingIN SDP

HLR VOMS EVC

Interconnect OMT

TAP In Tapout

CRM Point of Sale

Credit & Collection

GLBank 

Reconciliation System

Tariff Management 

System

Numbering Management 

System

Scratch Card Inventory 

ManagementGGSN/SGGN

MMSCSMSC

IN CCN IN AIR

CDR/Transactions Logs

Page 13: Revenue Assurance Convergence to Business Assurance

The First Step Towards Convergence

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Revenue Assurance

CFO

Fraud Management

Network  Fraud● Technical Fraud● Usage Fraud● Subscription/ Payment 

Fraud● Prepaid Fraud● Business Fraud

CC/??? Board/CEO

Corporate Fraud● Procurement Fraud● Cash Embezzlement● Accounting Fraud● Assets misappropriation

Internal Audit

Page 14: Revenue Assurance Convergence to Business Assurance

The First Step towards Convergence

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Business Assurance

Revenue Assurance

Fraud Management

Network  Fraud● Technical Fraud● Usage Fraud● Subscription/Payment Fraud● Prepaid Fraud● Business Fraud

Corporate Fraud● Procurement Fraud● Cash Embezzlement● Accounting Fraud● Assets misappropriation

Page 15: Revenue Assurance Convergence to Business Assurance

Business Assurance Coverage

Systems and Data Integrity

Revenue Assurance

Sales

Access Management

Fraud Management Cost & Margin Assurance

Partners Management

Customer Services

Receivable Management

Marketing

Service Quality 

Regulatory Compliance

and More …………

Page 16: Revenue Assurance Convergence to Business Assurance

Marketing, Sales and Customers Services

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Products Profitability and Viability

Sales Quality and Credit Rating 

Distribution Channels credit rating and Receivables Monitoring 

Opportunity Loss ‐ Reducing Complaints

Churn Managing 

Credits, Waivers, Bad debts 

Page 17: Revenue Assurance Convergence to Business Assurance

Systems, Data and Reporting   

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Systems Integrity and availability

System Security

Systems acquisition and business needs 

Data Integrity, Accuracy and completeness

Business Rules,  Definitions 

Standardization

Communication and Reporting Flow

Page 18: Revenue Assurance Convergence to Business Assurance

Cost Assurance  

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● Commissions● Credits and Waivers● Official Phone and Test SIMs● Utilization of services/Sources

‐ Leased circuits‐ Co‐location facilities‐ Cell sites

Page 19: Revenue Assurance Convergence to Business Assurance

Margin Assurance & Opportunity Loss  

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Margin Assurance● Retail Rates vs Partners cost

‐ off‐net cost‐ IDD Cost‐ IR cost

● Sales margins (Customer acquisition cost)● Cells site cost vs revenue● Exchange rate effect

Opportunity Loss● Cell site availability● Suspended customers● Quality of Service

Page 20: Revenue Assurance Convergence to Business Assurance

Business Assurance Future Positioning

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Chief Business Assurance Officer

Chief Executive Officer

Fraud Management

Partner Management

Cost and Margin Assurance

Systems, Data and Reporting Assurance

Revenue Assurance

Marketing, Sales and Customer Services 

Assurance

Quality of Service Assurance 

Regulatory Compliance

Page 21: Revenue Assurance Convergence to Business Assurance

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Ahmad Nadeem [email protected]@gmail.comAhmad Nadeem Syed

[email protected]/in/ansyed