revenue assurance convergence to business assurance
DESCRIPTION
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.TRANSCRIPT
Ahmad Nadeem SyedDirector Revenue Assurance
& Fraud Management
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Revenue Assurance
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
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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
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
Complexity of Network Demands Robust Assurance
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Revenue Losses
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● Juniper research in 2011 ‐ The loss at $58b (6%) ● KPMG Survey 2009, ‐ Network, Business and Fraud
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
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……..
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
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Convergence Is Taking Place
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
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
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
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
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 …………
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
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
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
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
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