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NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM
Use of Use of eTOMeTOM as an Efficient Firm Process as an Efficient Firm Process Model for Regulatory Issues Model for Regulatory Issues
NGOSS1 - Wednesday, October 13, 2004 / 9:00 AM - 9:45 AMTelemanagement World, Long Beach
www.telefonicactcchile.cl www.ibm.cl
Andrés Leiva (aleiva@ctc.cl)Director, IT Planning & Operations
Jorge Falaha (jfalaha@ctc.cl)Manager, e-business & Process Management
Jaime Palominos (jpalomi@ctc.cl)Senior project Engineer
Patricio Fernández(patricio.fernandez@cl.ibm.com)Senior Consultant – Telecom Industry
NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM - 2 -
Contents
Telefónica CTC Chile and the Chilean telecom Market
The Project
The Results
Other uses of eTOM in T-CTC
Final Conclusions
NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM - 3 -
Chilean Telecom Industry Overview
KEY MARKET TRENDS:Mobile penetration is 2.5 times the penetration of the fixed lines Substitution of mobile mobile tariffs competing with LD and local tariffsLD traffic with a declining trend Internet growth driven by broadband Migration to more efficient technologies in corporate communications2004E expected industry growth: + 3.2 – 3.7%
Local29,6%
LD9,3%
Data10,4%
Mobile44,6%
Internet access6,1%
2003 Total Revenues:
US$ 2,768 million
2003 Total Revenues:
US$ 2,768 million
Note: Reference values made only for this presentation, not official information of Telefónica CTC Chile for Investors or Press
NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM - 4 -
The most competitive market in South America(Estimated Market Share, December 2003)
FixedMobile Cable/
Pay TVData
Services
75%
LD (voice)
TOTAL
ISPDial-up
-
-
----
30%
-
-
-
-
---
-
-
-
-
-
----
39%
-
-
-
-
-
--
-
56%
-
-
-
-
-
--
-
ISPBroadband
37%
-
----
50%
-
-
-
-
-
-
3.229M Lines
7.425M Lines
720M Subs
1.927MM
Minutes
7.075MM
Minutes
363M Subs
288US$MMRevenue
Ex AT&T Chile
Controller
Telefónica
Telecom Italia
Grupo Luksic
Liberty Media Group (UGC)
Capital TrustMetrogas - Rabat
Telmex
CasanuevaEndesa España
Grupo Claro- Liberty Media
TOTAL N° OF OPERATORS 15 308 4 104 6
Note: Estimations and reference values made only for this presentation, not official information of Telefónica CTC Chile for Investors or Press
NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM - 5 -
Telefónica CTC Chile Today
Telefónica CTC Chile is the main Chilean operator in the telecommunication industry. It participates in fixed telephony, long distance, data and broadband among others
The Company generated US$1,369 million of revenues in the year 2003 and US$643 million of EBITDA. During the year 2003 CTC invested US$241 million.
Current ratings: Standard & Poor’s: BBB / Stable OutlookMoody’s: Baa2 / Stable OutlookFitch: BBB+ / Stable Outlook
Ownership Structure at 09.09.04 Market Capitalization: US$ 2,249 million
Telefónica S.A.44,9%
Pension Funds26,0%
Foreign Investment
1,2%
ADRs12,3%
Others15,6%
Note: Reference values made only for this presentation, not official information of Telefónica CTC Chile for Investors or Press
NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM - 6 -
Telefónica CTC Chile (as of December 2003)
• ILEC, funded in 1930• Provides services all over the country (15 million hab)
• Chile fixed line density: 22 lines/100 hab• T-CTC fixed line density: 15.7 line/100 hab
• Fixed lines in service: 2,400,000• Mobile lines in service 2,300,000• Local Traffic (minutes): 15,178 million
• ADSL subscribers: 125,000
• DLD traffic (minutes) : 647 million• Outgoing ILD voice traffic (minutes): 64 million
• Pay-phones: 11,000
• Total personnel: 4,720
• Revenues subject to tariff regulation: 53%
• ILEC, funded in 1930• Provides services all over the country (15 million hab)
• Chile fixed line density: 22 lines/100 hab• T-CTC fixed line density: 15.7 line/100 hab
• Fixed lines in service: 2,400,000• Mobile lines in service 2,300,000• Local Traffic (minutes): 15,178 million
• ADSL subscribers: 125,000
• DLD traffic (minutes) : 647 million• Outgoing ILD voice traffic (minutes): 64 million
• Pay-phones: 11,000
• Total personnel: 4,720
• Revenues subject to tariff regulation: 53%
Note: Reference values made only for this presentation, not official information of Telefónica CTC Chile for Investors or Press
NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM - 7 -
Regulatory Framework
The Tariff Setting Process- Specific process for each company- Set the tariff for a five-year period (2004-2009)- Defines:
• Tariff Structure (Fixed and variable charges, time-slots , tariff areas)• Tariff Level: maximum prices• Indexation formulas
Based on an “Efficient Firm” model- Attempts to replicate de costs of an entering CLEC in a competitive market- Considers the best technology available in terms of technical and economical criteria- Satisfies the existing demand of services and the growth for the next 5 years- Invests only for the regulated services- Invests only for the tariff setting period
Services subject to tariff regulation (approx. 30)- Local telephone service- Public telephones- Interconnection services (access charges) and related administrative services- Unbundled network services- Line connections
NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM - 8 -
The Tariff Proposal Study
Includes different cost items (CAPEX and OPEX):- Technical Infrastructure (The Telephone Network)- Administrative Infrastructure (Buildings and Real Estate) - IT Infrastructure - Personnel and Salaries- General Goods and Services
Considers projected efficient cost (not historical costs)
Considers the demand projection for the services subject to regulation- Lines in service - Traffic (for each kind and destiny)
Useful lives estimate for each type of investment
WACC estimation
NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM - 9 -
Contents
Telefónica CTC Chile and the Chilean telecom Market
The Project
The Results
Other uses of eTOM in T-CTC
Final Conclusions
NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM - 10 -
The Project
Develop a parametric model for the IT Infrastructure of an Efficient Local Exchange Carrier with an equivalent size of Telefónica CTC Chile, which operates in a competitive market. The model includes both the BSS & OSS applications
Duration: 1 year
Team: 8 people from T-CTC + IBM-BCS consultancy
Objective: Determine the IT costs to be included in the study that supported T-CTC´s tariff proposal for regulated services for the period 2004-2009
NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM - 11 -
Main modelling criteria
Zero-based model
Architecture layers based model
Includes all the configuration items of an IT Infrastructure (SW, HW, IT Network, security elements, etc.)
Includes both BSS and OSS
Best-of-breed standard products and vendors- Application SW, Operating Systems, middleware, hardware, etc.
Includes applications development and maintenance processes
Considers IT infrastructure and systems refresh
High Availability and Disaster Recovery for mission critical applications
NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM - 12 -
Business Process Framework
Solution requirements andapplications architecture
High level generic applications map
Specific applications map (best of breed systems)
IT Capex and Opex cost sub model TI organization
Regulated Services
Vendor prices and
Cost drivers
IT Hw andBase Sw
Network stationsinfrastructure
Connectivityinfrastructure
Requirements
Outsourcing services
Work Breakdown StructureeTOM based deliverables and analysis
Business Process Framework
High level generic applications map
Specific applications map (best of breed systems)
Network stationsinfrastructure
IT organization
IT Hw andBase Sw
NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM - 13 -
Business Process Framework(eTOM v3)
Solution requirements andapplications architecture
High level generic applications map
Specific applications map (best of breed systems)
IT Capex and Opex cost sub model IT organization
Regulated Services
Vendor prices and
Cost drivers
IT Hw andBase Sw
Network stationsinfrastructure
Connectivityinfrastructure
Requirements
Outsourcing services
Business Process Framework(eTOM v3)
Solution requirements andapplications architecture
High level generic applications map
Specific applications map (best of breed systems)
IT Capex and Opex cost sub model IT organization
Regulated Services
Vendor prices and
Cost drivers
IT Hw andBase Sw
Network stationsinfrastructure
Connectivityinfrastructure
Requirements
Outsourcing servicesOPEXOPEX
MaintenanceMaintenance
ConnectivityConnectivity
OutsourcingOutsourcing
CAPEXCAPEX
SoftwareSoftware
DeploymentDeployment
HardwareHardware
Model Summary
Expected Results: Annualized CAPEX and OPEXFive-year period Cash Flow Cost / Tx
Expected Results: Annualized CAPEX and OPEXFive-year period Cash Flow Cost / Tx
Gestión de la Empresa
Estrategia, Infraestructura y Producto Operaciones
Cliente
Provisión Aseguramiento FacturaciónGestión delCiclo de vida
de laInfraestructura
Preparación y Apoyo de Operaciones
Estrategia yCompromiso
Gestión delCiclo de vida
delProducto
Gestión de Relación con el Cliente (CRM)Gestión de Marketing y Oferta (M&OM)
Gestión y Operaciones de Servicio (SM&O)Desarrollo y Gestión de Servicio (SD&M)
Gestión y Operaciones de Recursos (RM&O)(Aplicaciones, Computación y Redes)
Desarrollo y Gestión de Recursos (RD&M)(Aplicaciones, Computación y Redes)
Gestión de Relación con Proveedores y Partners (S/PRM)
Desarrollo y Gestión de Cadena de Abastecimiento (SCD&M)
PlanificaciónEstratégica
y de la Empresa
GestiónFinanciera
y de Activos
Gestión de Marca,Investigación de
Mercado yPublicidad
Gestión deRecursosHumanos
Gestión de Relacióncon Agentes Externos
Investigación yDesarrollo,
Adquisición deTecnología
Gestión de Recuperación ante
Desastres, Seguridad y Fraudes
Gestión de Calidad de laEmpresa, Planificación
Y Arquitectura de Procesos e IT
Gestión de la Empresa
Gestión de la Empresa
Estrategia, Infraestructura y ProductoEstrategia, Infraestructura y Producto OperacionesOperacionesOperaciones
ClienteCliente
Provisión Aseguramiento FacturaciónProvisión Aseguramiento FacturaciónProvisión Aseguramiento FacturaciónGestión delCiclo de vida
de laInfraestructura
Gestión delCiclo de vida
de laInfraestructura
Preparación y Apoyo de Operaciones
Preparación y Apoyo de Operaciones
Preparación y Apoyo de Operaciones
Estrategia yCompromisoEstrategia yCompromiso
Gestión delCiclo de vida
delProducto
Gestión delCiclo de vida
delProducto
Gestión de Relación con el Cliente (CRM)Gestión de Marketing y Oferta (M&OM) Gestión de Relación con el Cliente (CRM)Gestión de Marketing y Oferta (M&OM) Gestión de Relación con el Cliente (CRM)Gestión de Relación con el Cliente (CRM)Gestión de Marketing y Oferta (M&OM)Gestión de Marketing y Oferta (M&OM)Gestión de Marketing y Oferta (M&OM)
Gestión y Operaciones de Servicio (SM&O)Desarrollo y Gestión de Servicio (SD&M) Gestión y Operaciones de Servicio (SM&O)Desarrollo y Gestión de Servicio (SD&M) Gestión y Operaciones de Servicio (SM&O)Gestión y Operaciones de Servicio (SM&O)Desarrollo y Gestión de Servicio (SD&M)Desarrollo y Gestión de Servicio (SD&M)Desarrollo y Gestión de Servicio (SD&M)
Gestión y Operaciones de Recursos (RM&O)(Aplicaciones, Computación y Redes)
Desarrollo y Gestión de Recursos (RD&M)(Aplicaciones, Computación y Redes)
Gestión y Operaciones de Recursos (RM&O)(Aplicaciones, Computación y Redes)
Desarrollo y Gestión de Recursos (RD&M)(Aplicaciones, Computación y Redes)
Gestión y Operaciones de Recursos (RM&O)(Aplicaciones, Computación y Redes)
Gestión y Operaciones de Recursos (RM&O)(Aplicaciones, Computación y Redes)
Desarrollo y Gestión de Recursos (RD&M)(Aplicaciones, Computación y Redes)
Desarrollo y Gestión de Recursos (RD&M)(Aplicaciones, Computación y Redes)
Desarrollo y Gestión de Recursos (RD&M)(Aplicaciones, Computación y Redes)
Desarrollo y Gestión de Recursos (RD&M)(Aplicaciones, Computación y Redes)
Gestión de Relación con Proveedores y Partners (S/PRM)
Desarrollo y Gestión de Cadena de Abastecimiento (SCD&M)
Gestión de Relación con Proveedores y Partners (S/PRM)
Desarrollo y Gestión de Cadena de Abastecimiento (SCD&M)
Gestión de Relación con Proveedores y Partners (S/PRM)Gestión de Relación con Proveedores y Partners (S/PRM)
Desarrollo y Gestión de Cadena de Abastecimiento (SCD&M)Desarrollo y Gestión de Cadena de Abastecimiento (SCD&M)Desarrollo y Gestión de Cadena de Abastecimiento (SCD&M)
PlanificaciónEstratégica
y de la Empresa
GestiónFinanciera
y de Activos
Gestión de Marca,Investigación de
Mercado yPublicidad
Gestión deRecursosHumanos
Gestión de Relacióncon Agentes Externos
Investigación yDesarrollo,
Adquisición deTecnología
Gestión de Recuperación ante
Desastres, Seguridad y Fraudes
Gestión de Calidad de laEmpresa, Planificación
Y Arquitectura de Procesos e IT
PlanificaciónEstratégica
y de la Empresa
GestiónFinanciera
y de Activos
Gestión de Marca,Investigación de
Mercado yPublicidad
Gestión deRecursosHumanos
Gestión de Relacióncon Agentes Externos
Investigación yDesarrollo,
Adquisición deTecnología
Gestión de Recuperación ante
Desastres, Seguridad y Fraudes
Gestión de Calidad de laEmpresa, Planificación
Y Arquitectura de Procesos e IT
NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM - 14 -
What were we looking for?
Non auto-referring modelNot referred to the legacy applications of the CompanyBest-of-breed IT products (hardware, software and package systems)Reference market prices Business process framework
- Internationally accepted- Telecommunications industry specific solution - Neutral referring- Process structure, decompositions, flows and dynamics included- Consolidated - Acceptable by the Regulator
eTOM processes framework(enhanced Telecom Operations Map ®) version 3.0
eTOM processes framework(enhanced Telecom Operations Map ®) version 3.0
NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM - 15 -
Contents
Telefónica CTC Chile and the Chilean telecom Market
The Project
The Results
Other uses of eTOM in T-CTC
Final Conclusions
NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM - 16 -
Operations
Fulfillment Assurance BillingOperations Support & Readiness
Resource Management & Operations
Customer Relationship Management
Service Management & Operations
Supplier/Partner Relationship Management
Infrastructure Lifecycle Mgmt
Product Lifecycle Mgmt
Strategy and Commit
Strategy, Infrastructure and Product
Service Development & Management
Resource Development & Management
Supply Chain Development & Management
Marketing and Offer Management
Disaster Recovery, Security & Fraud Management
Human Resource Management
Enterprise Quality Mgmt, Process & IT Planning & Architecture
Research & Development & Technology Acquisition
Enterprise ManagementStrategic & Enterprise Planning
Financial & Asset Management Stakeholder & External Relations Management
Brand Mgmt, Market Research & Advertising
Generic Applications Map over eTOM
CRM -SalesCRM -Sales
CRM – Sales & e-SalesCRM – Sales & e-Sales
CRM - MarketingCRM - Marketing
Interactive SalesInteractive Sales
Market AnalysisMarket Analysis
CRM - MarketingCRM - Marketing
Network InventoryNetwork InventoryNetwork InventoryNetwork Inventory
Activ
ity B
ased
Cos
ting
Activ
ity B
ased
Cos
ting
DataWareHouse / DataminingDataWareHouse / Datamining
Dat
aWar
eHou
seD
ataW
areH
ouse
ERPMaterial Management
ERPMaterial Management
Network PlanningNetwork Planning
Computer Telephony Integration (CTI)
Computer Telephony Integration (CTI)
Workforce ManagementWorkforce ManagementSLA
Management SLA
Management
CollectionsCollections
Billin
gBi
lling
Corporate Web PortalCorporate Web Portal
EBPPInternet Payment
EBPPInternet Payment
Pro
blem
Man
agem
ent
Pro
blem
Man
agem
ent
Computer Telephony Integration (CTI)Computer Telephony Integration (CTI)
GISGIS
Aut
omat
icAc
tivat
ion
Aut
omat
icAc
tivat
ion
Wor
kfor
ce M
anag
emen
tW
orkf
orce
Man
agem
ent
Con
figur
atio
n M
anag
emen
tC
onfig
urat
ion
Man
agem
ent
TestingManagement
TestingManagement
Mediation System
Mediation System
ERPMaterial Management
ERPMaterial Management
Strategic PlanningStrategic Planning
ERPAccounting, Treasure,Finance, Controlling
ERPAccounting, Treasure,Finance, Controlling
Workforce MgmtWorkforce Mgmt Fraud Management
Fraud Management IT SecurityIT Security
Alar
m m
anag
emen
tAl
arm
man
agem
entAlarm
ManagementAlarm
Management
Order ManagerOrder Manager
Strategic PlanningStrategic Planning Strategic PlanningStrategic Planning
Strategic PlanningStrategic Planning
Strategic Planning
Strategic Planning
Strategic PlanningStrategic Planning
Strategic PlanningStrategic PlanningAssistanceAssistanceRevenue AssuranceRevenue Assurance
Building Asset ManagerBuilding Asset Manager
Mar
ket I
nfor
mat
ion
Rep
osito
ryM
arke
t Inf
orm
atio
n R
epos
itory
Intern AuditIntern AuditHuman Resource MgmtHuman Resource Mgmt
e-Learninge-Learning
IT Asset MgmtIT Asset Mgmt
IT Project MgmtIT Project MgmtProcess ModellerProcess ModellerMiddlewareMiddleware e-maile-mail
Legal ManagementLegal Management
ProvisioningWorkflow
ProvisioningWorkflow
ProblemManagement
ProblemManagement
ERPMaintenance
ERPMaintenance
ERPAccounting and
Payments
ERPAccounting and
Payments
Version ControlVersion Control
IT SecurityIT Security
Network PlanningNetwork Planning
Traf
fic M
anag
emen
tTr
affic
Man
agem
ent
Con
figur
atio
n M
anag
emen
tC
onfig
urat
ion
Man
agem
ent
Network Capacity ManagementNetwork Capacity Management
Test
ing
Man
agem
ent
Test
ing
Man
agem
ent
Testing Management
Testing Management
SS7
SS7
Per
form
ance
Man
agem
ent
Per
form
ance
Man
agem
ent
Enterprise QualityEnterprise Quality
ERPSupplier Payment
ERPSupplier Payment
ERPProject Management
ERPProject Management
NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM - 17 -
Specific Applications and IT Products Map over eTOM(Best-of-Breed)
Generic Application or Product
Generic Application or Product
• Experience of IBM-BCS in other Telcos• Studies of IT Research Companies
(e.g.: Metagroup, Gartner, Telestrategies, etc.)
• International Qualifications and Awards• Number of Telcos that use the product• Books and research papers• Other Elements
Specific Application or Product Selected
Specific Application or Product Selected
Once the generic applications required to support the processes of the Efficient Telecom Provider were identified, we proceeded to select the Best-of-breed products available in the market
NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM - 18 -
Selection of Best-of-breed IT ProductsOperations
Fulfillment Assurance BillingOperations Support & Readiness
Resource Management & Operations
Customer Relationship Management
Service Management & Operations
Supplier/Partner Relationship Management
CRM – Sales & e-SalesCRM – Sales & e-Sales
CRM - MarketingCRM - Marketing
Interactive SalesInteractive Sales
Market AnalysisMarket Analysis
Network InventoryNetwork Inventory
Computer Telephony Integration (CTI)
Computer Telephony Integration (CTI)
Workforce ManagementWorkforce ManagementSLA
Management SLA
Management
CollectionsCollections
Billin
gBi
lling
Corporate Web PortalCorporate Web Portal
EBPPInternet Payment
EBPPInternet Payment
Pro
blem
Man
agem
ent
Pro
blem
Man
agem
ent
Computer Telephony Integration (CTI)Computer Telephony Integration (CTI)
GISGIS
Aut
omat
icAc
tivat
ion
Aut
omat
icAc
tivat
ion
Wor
kfor
ce M
anag
emen
tW
orkf
orce
Man
agem
ent
Con
figur
atio
n M
anag
emen
tC
onfig
urat
ion
Man
agem
ent
TestingManagement
TestingManagement
Mediation System
Mediation System
ERPMaterial Management
ERPMaterial Management
Alar
m m
anag
emen
tAl
arm
man
agem
entAlarm
ManagementAlarm
Management
Order ManagerOrder Manager
ProvisioningWorkflow
ProvisioningWorkflow
ProblemManagement
ProblemManagement
Traf
fic M
anag
emen
tTr
affic
Man
agem
ent
Con
figur
atio
n M
anag
emen
tC
onfig
urat
ion
Man
agem
ent
Network Capacity ManagementNetwork Capacity Management
Test
ing
Man
agem
ent
Test
ing
Man
agem
ent
Testing Management
Testing Management
SS7
SS7
Per
form
ance
Man
agem
ent
Per
form
ance
Man
agem
ent
ERPSupplier Payment
ERPSupplier Payment
Application Software
• For each generic application a best-of-breed product was selected
• The solution was dimensioned and quoted with the providers according to the specific drivers of each application (e.g.: lines, traffic, users, etc)
Additional Software
• The additional SW required for the operation was dimensioned and selected (e.g.: DB, OS, Middleware etc.)
NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM - 19 -
Selection of Best-of-breed IT ProductsOperations
Fulfillment Assurance BillingOperations Support & Readiness
Resource Management & Operations
Customer Relationship Management
Service Management & Operations
Supplier/Partner Relationship Management
CRM – Sales & e-SalesCRM – Sales & e-Sales
CRM - MarketingCRM - Marketing
Interactive SalesInteractive Sales
Market AnalysisMarket Analysis
Network InventoryNetwork Inventory
Computer Telephony Integration (CTI)
Computer Telephony Integration (CTI)
Workforce ManagementWorkforce ManagementSLA
Management SLA
Management
CollectionsCollections
Billin
gBi
lling
Corporate Web PortalCorporate Web Portal
EBPPInternet Payment
EBPPInternet Payment
Pro
blem
Man
agem
ent
Pro
blem
Man
agem
ent
Computer Telephony Integration (CTI)Computer Telephony Integration (CTI)
GISGIS
Aut
omat
icAc
tivat
ion
Aut
omat
icAc
tivat
ion
Wor
kfor
ce M
anag
emen
tW
orkf
orce
Man
agem
ent
Con
figur
atio
n M
anag
emen
tC
onfig
urat
ion
Man
agem
ent
TestingManagement
TestingManagement
Mediation System
Mediation System
ERPMaterial Management
ERPMaterial Management
Alar
m m
anag
emen
tAl
arm
man
agem
entAlarm
ManagementAlarm
Management
Order ManagerOrder Manager
ProvisioningWorkflow
ProvisioningWorkflow
ProblemManagement
ProblemManagement
Traf
fic M
anag
emen
tTr
affic
Man
agem
ent
Con
figur
atio
n M
anag
emen
tC
onfig
urat
ion
Man
agem
ent
Network Capacity ManagementNetwork Capacity Management
Test
ing
Man
agem
ent
Test
ing
Man
agem
ent
Testing Management
Testing Management
SS7
SS7
Per
form
ance
Man
agem
ent
Per
form
ance
Man
agem
ent
ERPSupplier Payment
ERPSupplier Payment
Hardware
• The HW requirements of the best-of-breed products were grouped and consolidated in specific HW platforms
• High Availability and Disaster Recovery was considered for the mission critical applications
NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM - 20 -
Operations
Fulfillment Assurance BillingOperations Support & Readiness
Resource Management & Operations
Customer Relationship Management
Service Management & Operations
Supplier/Partner Relationship Management
Infrastructure Lifecycle Mgmt Product Lifecycle
MgmtStrategy and
Commit
Strategy, Infrastructure and Product
Service Development & Management
Resource Development & Management
Supply Chain Development & Management
Marketing and Offer Management
Disaster Recovery, Security & Fraud Management
Human Resource Management
Enterprise Quality Mgmt, Process & IT Planning & Architecture
Research & Development & Technology Acquisition
Enterprise ManagementStrategic & Enterprise Planning
Financial & Asset Management Stakeholder & External Relations Management
Brand Mgmt, Market Research & Advertising
CRM -SalesCRM -Sales
CRM – Sales & e-SalesCRM – Sales & e-Sales
CRM - MarketingCRM - Marketing
Interactiv e SalesInteractiv e Sales
Market Analy sisMarket Analy sis
CRM - MarketingCRM - Marketing
Network Inv entoryNetwork Inv entoryNetwork Inv entoryNetwork Inv entory
Activ
ity B
ased
Cos
ting
Act
ivity
Bas
ed C
ostin
g
DataWareHouse / DataminingDataWareHouse / Datamining
Dat
aWar
eHou
seD
ataW
areH
ouse
ERPMaterial Management
ERPMaterial Management
Network PlanningNetwork Planning
Computer Telephony Integration (CTI)
Computer Telephony Integration (CTI)
Workf orce ManagementWorkf orce ManagementSLA
Management SLA
Management
CollectionsCollections
Billin
gBi
lling
Corporate Web PortalCorporate Web Portal
EBPPInternet Pay ment
EBPPInternet Pay ment
Pro
blem
Man
agem
ent
Pro
blem
Man
agem
ent
Computer Telephony Integration (CTI)Computer Telephony Integration (CTI)
GISGIS
Aut
omat
icAc
tivat
ion
Aut
omat
icA
ctiv
atio
n
Wor
kfor
ce M
anag
emen
tW
orkf
orce
Man
agem
ent
Con
figur
atio
n M
anag
emen
tC
onfi
gura
tion
Man
agem
ent
TestingManagement
TestingManagement
Mediation System
Mediation System
ERPMaterial Management
ERPMaterial Management
Strategic PlanningStrategic Planning
ERPAccounting, Treasure,Finance, Controlling
ERPAccounting, Treasure,Finance, Controlling
Workf orce MgmtWorkf orce Mgmt Fraud Management
Fraud Management IT SecurityIT Security
Ala
rm m
anag
emen
tAl
arm
man
agem
entAlarm
ManagementAlarm
Management
Order ManagerOrder Manager
Strategic PlanningStrategic Planning Strategic PlanningStrategic Planning
Strategic PlanningStrategic Planning
Strategic Planning
Strategic Planning
Strategic PlanningStrategic Planning
Strategic PlanningStrategic PlanningAssistanceAssistanceRevenue AssuranceRevenue Assurance
Building Asset ManagerBuilding Asset Manager
Mar
ket
Info
rmat
ion
Rep
osito
ryM
arke
t In
form
atio
n R
epos
itory
Intern AuditIntern AuditHuman Resource MgmtHuman Resource Mgmt
e-Learninge-Learning
IT Asset MgmtIT Asset Mgmt
IT Project MgmtIT Project MgmtProcess ModellerProcess ModellerMiddlewareMiddleware e-maile-mail
Legal ManagementLegal Management
Prov isioningWorkf low
Prov isioningWorkf low
ProblemManagement
ProblemManagement
ERPMaintenance
ERPMaintenance
ERPAccounting and
Pay ments
ERPAccounting and
Pay ments
Version C ontr olVersion C ontr ol
IT SecurityIT Security
Network PlanningNetwork Planning
Traf
fic M
anag
emen
tTr
affic
Man
agem
ent
Con
figu
ratio
n M
anag
emen
tC
onfi
gura
tion
Man
agem
ent
Network Capacity ManagementNetwork Capacity Management
Test
ing
Man
agem
ent
Test
ing
Man
agem
ent
Testing Management
Testing Management
SS7SS
7
Per
form
ance
Man
agem
ent
Perf
orm
ance
Man
agem
ent
Enter prise QualityEnter prise Quality
ERPSupplier Pay ment
ERPSupplier Pay ment
ERPProject Management
ERPProject Management
IT Communications & Network Stations
The total size of the organization (personnel, geographical distribution) determined the IT network dimension and complexity, and the number of PCs, notebooks, printers, among others facilities, required.
Selection of Best-of-breed IT Products
NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM - 21 -
The IT Organization
Disaster Recovery, Security & Fraud Management
Human Resource Management
Enterprise Quality Mgmt, Process & IT Planning & Architecture
Research & Development & Technology Acquisition
Enterprise ManagementStrategic & Enterprise Planning
Financial & Asset Management Stakeholder & External Relations Management
Brand Mgmt, Market Research & Advertising
CRM - MarketingCRM - MarketingStrategic PlanningStrategic Planning
ERPAccounting, Treasure,Finance, Controlling
ERPAccounting, Treasure,Finance, Controlling
Workforce MgmtWorkforce Mgmt Fraud Management
Fraud Management IT SecurityIT Security
Strategic PlanningStrategic Planning Strategic PlanningStrategic Planning
Strategic PlanningStrategic PlanningAssistanceAssistanceRevenue AssuranceRevenue Assurance
Building Asset ManagerBuilding Asset ManagerIntern AuditIntern AuditHuman Resource MgmtHuman Resource Mgmt
e-Learninge-Learning
IT Asset MgmtIT Asset Mgmt
IT Project MgmtIT Project MgmtProcess ModellerProcess ModellerMiddlewareMiddleware e-maile-mail
Legal ManagementLegal Management
Version ControlVersion Control
IT SecurityIT Security
Enterprise QualityEnterprise Quality
IT Organization & Operation
• The IT Organization (personnel, methodology, support Systems, etc.) was dimensioned according to the size of the Company
• The IT support and delivery processes (operations architecture) required were dimensioned
• The relationship between IT and Business areas was included• Certain non-core processes were outsourced
NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM - 22 -
Calculation Model – Inputs / Outputs
Demand
Business Model
Other Elements
eTOM & Functional
requirements
AdministrativeInvestment
ThirdParties
HumanResources
Network
Interconnection (ITX)
• N° of lines• N° of customers• Traffic
• Characteristic of the Services• Geographic coverage• Customer Segmentation
• Topology of the network• Geographic distribution of COs• Service complain rate • Network equipment (kind, N°,
vendor, element managers)
IT SPECIFIC CRITERIA
• Mission Critical applications• Technology definitions• User support SLA• Different Network Stations Profiles• Security policies
• N° of operators • Traffic volume inbound/outbound• Demand of services• Characteristics of the services
ACCOUNTING & FINANCIAL CRITERIA
• WACC• Technology refresh and useful lives• Exchange rates• Tax rates
• N° of users / skills• N° of users / Office• N° of users / application• N° of internal & external users
• N° Suppliers• N° Stakeholders
• Geographic distribution of Administrative Buildings
• Benchmarks (Other Telcos)• Regulatory requirements• Legal requirements
CAPEX
• By line of service (Local, Interconnection, Pay-Phones)
• By year ( Y0...Y5)• By IT concept (SW, HW,
Implementation, Connectivity)• By Application
OPEX
• By concept• By line of service (Local,
Interconnection, Pay-Phones)• By Application
• Requirements of space, energy, security and air-conditioning for HW and NWS
• Data Centers Location
• Number of IT employees
• CAPEX and OPEX by currency
Main OPEXsub-model
Main Administrative
Investment sub-model
Main HRsub-model
IT Systems &
InfrastructureModel
IT AND PROCESSES MAPS
• Map of BSS Applications• Map of OSS Applications• Technology Alternatives• HW + Base SW• Communications
Indexing sub-model
NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM - 23 -
HARDWAREHARDWARE
SOFTWARESOFTWARE
Network Stations (PCs)Network Stations (PCs)
Connectivity & Data CenterOperations
Connectivity & Data CenterOperations
52 Applications28 Suppliers IBM Applications: 25%
Intel and Unix Servers10,000,000 TpmC40,000 GB Storage
6000 seats (Desktop and Notebook)500 Office Printers, 350 POS, 240 Scanners2 help desks (technical, functional)
260 Commercial Offices, 500 Central Offices and the Corporate Building2 Data CentersCommand center
Calculation Model – Main outputs
Volume Cost Items
Investment (license, deployment)Annual Licenses
InvestmentAnnual Maintenance
Investment (HW & SW)Annual LicensesMaintenance & Operational Outsourcing (cost per call, per movement, etc.)
Set-up feeAnnual licensesMaintenance & Operational Outsourcing (cost per TpmC, GB, etc.)Data network monthly rent
NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM - 24 -
The Results
A comprehensive, complete and easy-to-use IT cost model based on eTOM
The Regulator accepted and used the model
Final costs (at the end of the process):
• Replacement CAPEX = US$ 250 million• Annual OPEX = US$ 60 million• Total Cash Flow = US$ 566 million (5-year period)• The IT costs contributes with more than 20% of the annual income
per line
• Replacement CAPEX = US$ 250 million• Annual OPEX = US$ 60 million• Total Cash Flow = US$ 566 million (5-year period)• The IT costs contributes with more than 20% of the annual income
per line
For more information see the complete study at:
The study that was presented:http://procesostarifarios.subtel.cl/downloads/CTC/ANEXOS/B.05_Informatica/Anexo_B.5_Infraestructura_y_Sistemas_Informaticos_vPU.pdf
The final results (at the end of the process):http://procesostarifarios.subtel.cl/notificaciones/CTC/IS_CTC.pdf
NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM - 25 -
Contents
Telefónica CTC Chile and the Chilean telecom Market
The Project
The Results
Other uses of eTOM in T-CTC
Final Conclusions
NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM - 26 -
Other uses of eTOM in Telefónica CTC Chile
The project ended on march 2004It was the first step to consolidate the use of eTOM in Telefónica CTC Chile
Actual uses of eTOM- Mapping existing processes - Mapping existing applications (Applications Architecture)- Costing models based on the eTOM processes (Financial Management)
• Identifying and analyzing costs of business processes• A structure for Activity Based Costing elements
- Reference for the organizational structure of the VP of Operations- Analysing and Comparing Project proposals for potential overlap- Develop a consolidated view of end-to-end processes
Future uses of eTOM - Guiding the design of new Processes - Framing tactical IT Architectures- Identifying gaps in existing OSS/BSS v/s Commercial OSS/BSS.- Outline for documenting problem scope and requirements- Part of the RFPs of new IT projects, to describe the functional coverage- NGOSS development framework for new IT projects
NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM - 27 -
Contents
Telefónica CTC Chile and the Chilean telecom Market
The Project
The Results
Other uses of eTOM in T-CTC
Final Conclusions
NGOSS1 - Wednesday, October 13, 2004 9:00 AM - 9:45 AM - 28 -
Final Conclusions
By using eTOM the discussion was focused on the prices of the applications, not on the need of the systems (OSS/BSS) that supported the different processes of the Efficient Firm
We established a common language for the different teams - including the business areas - involved in the main study. This helped the definition of functional requirements and applications, a recurrent problem in the relationship between the IT Departments and the Business Units
eTOM provided a comprehensive framework in order to facilitate the relationship and agreements among the different players of the Telecom Industry
The Chilean Regulatory Office used eTOM in the tariff setting processes of the otherLocal Service Providers
The Chilean process is the first in Latin America, so there is a probability that other countries in the region (their Operators and Regulators) might end-up using the eTOMmodel for regulatory issues
(It would be interesting to analyze the inclusion of the “Regulatory Entities” on theeTOM level 1 diagram)