Category: General

  • Should you still be “keeping your eye on the ball”?

    Should you still be “keeping your eye on the ball”?

    In almost every major sports analogy where a ball is used, the coach is always telling players to “keep their eye on the ball.” In baseball this is obviously critical. Certainly the same holds true in cricket. Other sports rely on this fundamental as well; the ball is the player’s universe. Without keeping your eye on that ball scoring doesn’t happen, and victories escape our favorite teams.
    In the world of Revenue Management the same analogy has been applied to those charged with protecting revenues. “Keep your eye on the money.” We’ve all received our marching orders to monitor and protect the revenue process, from where value is generated, billed, and ultimately collected.
    What has inevitably happened, however, is an ever-growing expansion of what was originally a relatively simple carrier business model. Consider this maturing timeline for most operators over the years:

    • Risk Management (“ERM”) became an embedded factor in enterprises as they grew larger
    • Revenue Management soon grew on its own within Risk Management, eventually dominating the ERM program with both Fraud and Revenue teams operating (mostly) autonomously
    • Operator business models have since evolved well beyond the classic voice services that ERM was chartered to monitor, further stressing an already crowded ERM oversight domain

    Suddenly (actually, over the last 20 years), Risk Management programs are finding that there is no longer a single ball to keep their eye on; in fact, there are many. Revenue is now generated from many streams (e.g., product lines), all using different business models. But what makes this even more difficult is the relationships and interdependencies these product lines have with each other – these also need to be monitored for risks and failures. Now ERM can’t simply deploy independent, autonomous teams to track individual streams – the collaboration and sharing of consistent data and resources is now a critical requirement.
    Putting this into context, let’s talk about fictitious Carrier “A” … we’ll call them Rio Hondo Telecom:
    Rio Hondo offers 3G and 4G mobile services. They also operate as an ILEC (Independent Local Exchange Carrier), so they have invested in a great deal in underground plant, in the form of both copper and cable, to serve the majority of their 1 million customers. Through that plant they offer fixed line telephony, broadband, and video broadcast services to consumers, and high-speed business service packages to enterprises. Unfortunately, they have no last mile access to 15% of their enterprise customers, and 10% of their standard consumer customer base is too far away to receive broadband and broadcast services. Therefore, Rio Hondo has formed several partnerships with other operators to round out their service offering to those outlying customers. They started carrying services 65 years ago…and their ERM teams formed in the early 1980’s. They have limited Fraud and Revenue controls in place, yet their business models have grown well beyond what they can easily monitor for risks. Where should their ERM teams be focusing their resources? Candidates must include both revenue generation and revenue support functions, among others.

    1. Revenue generations functions:
      a. Event creation, mediation, and billing
      b. Recurring charge integrity
      c. Retail sales of equipment and services
    2. Revenue support functions:
      a. Retail and call center provisioning operations, and change requests
      b. Order integrity and fall-out management – critical for bundled service delivery
      c. Capturing of traded/returned equipment, including tracking to warehouse receipt
      d. Chargeback management, merchant charging integrity
    3. Cost and other support functions:
      a. Service call management and charging
      b. CPE and inventory assurance
      c. Commissioning integrity
      d. Partner services delivered as ordered, billed appropriately

    This operator example is not uncommon, and certainly something that we have successfully worked with operators to manage for much of the last 16 years. What has been learned over this time that ERM can’t just keep their eyes on the “business model complexity” ball; now ERM must also keep their eyes on every ball that deals with product, service, and support inter-dependencies that now dominate the carrier business landscape.
    This is the foundation that drove the birth of the ROC from Subex. First envisioned over a decade ago, the latest generation of ROC3 products fully support the monitoring and instrumentation of every facet of Revenue, Cost, Fraud, and Network Asset protection within the operator’s business…all from a single, integrated architecture. With ROC3, operators can not only keep their eyes on as many balls as their business can throw at them, they can easily manage which ones to catch, and which ones to hit “out of the park!”

  • A Sentimental Journey

    A Sentimental Journey

    When Doris Day sang the jazz classic ‘Sentimental Journey’ she described the joy of returning home to the things she had missed. Back here in the 21st century we also feel a sense of joy when we get home, but it’s often because we can finally get a reliable internet signal through our Wi-Fi.   Mails download, WhatsApp messages pour in and all those photos and vids we took get uploaded to share.   The sentiment that people feel when they get home and find their internet service is not working is generally far less happy. It’s a sentiment that I experienced first-hand, having suffered from a service that was slower than old fashioned dial-up for several months. Web pages with sliding graphical widgets and targeted advertising completely stopped loading. After endless rounds of calling support, listening to distorted 80’s pop tunes while stuck on hold, and re-booting of modems I just didn’t want to speak to them anymore. In today’s marketing vernacular, I was not having a good “customer experience”, so I left them and went to another service provider.

    Although the initial buzz around customer experience may have died down from a few years ago it is still regarded as the single most important ingredient needed to have a successful business. In a recent report Watermark Consulting studied the cumulative stock returns of the top 10 “Leaders” and bottom 10 “Laggards” in Forresters CX index and found

    Leaders outperformed the broader market, generating a total return that was 35 points higher than the S&P 500 Index.

    Laggards trailed far behind, posting a total return that was 45 points lower than that of the broader market.

    In a world of commoditized products and services businesses now rely on customer experience more than ever to differentiate themselves from the competition. However, in the report ‘Customer Analytics: How to make Best use of Customer Data’ the Aberdeen Group has reported that

    ‘96% of companies are not fully satisfied with their ability to use data (both customer and operational) in CEM programs’

    In order to provide good a customer experience companies need to do 5 things

    1. Introduce good data governance practices around customer data
    2. Create a unified view of customers across all touch points
    3. Profile and segment their customers
    4. Track the emotional impact of a customer interactions with the company over time.
    5. Use that intelligence to guide agents on how to provide the best support for customers.

    Enter the world of the customer journey map. A customer journey map (CJM) is a visual representation of all the interactions a customer has with a company, through every touch point, with a measure of the customer’s attitude towards the company during those interactions. For example, receipt of a bill may be a negative experience, whereas receipt of some reward, like bonus loyalty points, would be viewed more positively. These sentiment scores may be collected directly through touch point surveys and recording call dispositions, or inferred based on history and through the use of analytics.

    Agents that have an immediate grasp of a customer’s journey and level of satisfaction are far more successful at resolving issues and upselling than agents who do not have that insight.

    The first step in understanding a customer’s journey is to introduce good data governance practices and create a unified view of the customer. The Aberdeen group also observed (in their ‘Big Data in CEM’ study) that

    More than half of all (56%) businesses lack a unified view of the data captured across multiple channels and stored in systems such as customer relationship management (CRM), marketing automation, e-commerce and enterprise resource planning (ERP)

    Customers should then be profiled and segmented along demographic, financial and behavioral lines. Then, by recording their changing sentiments during various interactions with the company, a picture can be built up of how different segments progress through their customer journeys and it becomes possible to understand which interactions lead to greater customer loyalty and value, and which lead to churn.

    Customer journey mapping helps companies to understand their customer needs and provide the kind of personal advice and support that builds trust.   Trust that encourages customers to buy more, stay loyal and spread good news about your business.

  • Making history in Prague

    Making history in Prague

    One of the most commonly used greeting, Dobrý den, means “Good Day” in Czech. Coincidentally, we at Subex believe this to be an apt indicator of things to come at the 12th Subex Annual User conference, happening in the magical city of Prague. In a city famous for its spectacular architecture and scenic beauty, we at Subex feel excited about the ground-breaking sessions planned for our esteemed guests.

    In the past year we, both operators and partners, have seen the rise of new threats and hidden opportunities. We have seen margins getting further squeezed by the nimble tactics of OTT players, and conversely we have also seen some operators take bold new steps to capitalize new technologies. We have seen the magic of LTE establish the foundation of our collective next steps in the telecommunications industry, both in terms of defining the new business ecosystems which would evolve, as well as how and what services we would deliver. In a way, we are going back to basics – observe, study, understand and compete.

    Following up on the success of the 2014 User conference, this year Subex is pulling out all the stops in terms of pushing the boundaries of innovation in business optimization. This time around, it’s going to be about looking to the future and preparing for agile transformation today. The day and age of “built to last” solutions might be seeing it’s official sunset. A new era is upon is – The era of “built to change” solutions. When operators are grappling with the vast product possibilities now open to them, it becomes of paramount importance that associated risks can be handled at the pace of business. To help us gaze into the crystal ball, we’ve reached out to industry stalwarts like

    Simon Torrance – Futurist & Senior Advisor on Digital Innovation, Analysys Mason
    Mark Zmigrodski – Manager Fraud Investigations at AT&T & Director – CFCA
    Mike Willet – Executive Director at Ernst & Young
    Paul Fedarb – Head of GTM UK Billing & Collection at BT Group

    My good friend Eric Priezkalns, Co-founder at Commsrisk returns this year as the event’s chairman . Last year his ability to bring the speaker and the audience closer together in meaningful discussion (and debate) ensured that all of us took away the best from all the sessions. Beyond the speaking participants, we have a full roster of industry leaders and active voices in the risk & assurance community like Amit Agrawal (Group Director, RAFM at Etisalat), Edward Granillo (Director, TeliaSonera Group-wide RAFM), Pedro Bravo (Revenue Assurance and Credit Scoring Manager at NOS), Ahmed Saleh Benatif (Director of RA at STC) and the list just goes on. In such a rich gathering of domain experts, I for one would expect something fantastic to emerge from the planned sessions. The sessions themselves are keyed towards focused discussions around emerging technologies, evolving risk frameworks and a little bit of magic (by yours truly).

    In keeping with the theme of Prague, Subex also plans to spring a few pleasant surprises for our esteemed customers. Rest assured, we are confident that this would be a User Conference that won’t be soon forgotten. We are looking forward to breaking new ground, and jointly going where no risk management expert has gone before!

  • The Case for Monetizing the Internet of Things

    The Case for Monetizing the Internet of Things

    The Internet of Things. While the discussions around IoT are interesting, in reality what are these “things”? More importantly, why should operators care? On the surface the answer is simple: The IoT world is all about Monitoring, and Machine to Machine explosive use of networks. It’s all about how to plan for the capacity – where to invest, when, and how much is needed to meet the IoT demand? This is the realm where Subex Asset Assurance and Network Analytics platforms help operators plan, procure, and place assets to quickly and effectively meet that challenge.

    The Internet of Things, however, goes much deeper than a network optimization discussion. The IoT is ultimately about data. Data about our lives, our spending, our health, the “things” that support us (power, roads, air quality, resource availability, etc.). The value in the IoT is in the collecting and monetizing of that data.

    Imagine the scope of that data, by walking through a day in a life where IoT is engaged. Waking up is now more about an alarm clock. It’s now about a smart home knowing what day of the week it is, and therefore what time you’ll be wanting to wake. It’s about the home knowing what temperature the water heater needs to maintain to support the amount of water you typically need to shower; it’s about knowing which rooms in your home you’ll be using today, and controlling the environment in those rooms at the right time. It’s about anticipating your food consumption…and warning you when those supplies are low. An even smarter home will seek marketing promotions from local grocers, to give you best options for pricing to replace those depleting supplies.

    In this whitepaper we’ll explore the value of IoT data in more depth, as we continue through a day in an IoT engaged life. This data has the ability to steer spend habits, and thus help retailers secure share of wallet. Analytics and Data Sciences are a crucial component in the successful harvesting of IoT data, and any latency in understanding the data will absolutely make the difference in determining who wins the wallet-share competition.

  • Digital Transformation for telcos 2015-2020

    Digital Transformation for telcos 2015-2020

    I’m delighted to be speaking at Subex’s User Conference in Prague in October.

    For the last 10 years I’ve been researching and promoting new business models for the telecoms industry. This type of innovation is now more important than ever, as pressures on the existing business model get stronger and stronger.

    Trying to grow when markets are saturated, when there is greater competition from new players and regulators are less benign is very difficult using traditional approaches.

    All my clients are struggling with this growth challenge and, more broadly, how they stay relevant in the fast evolving ‘digital economy’.

    The answer is to start by more fully understanding how the digital economy is playing out and what approaches and business/operating models work best when there is abundant connectivity and powerful new technologies available at low cost.

    In my talk, I’ll be covering the topics below with the aim of stimulating a vibrant discussion on the practicalities of creating a new growth story for telcos:

    • Macro context for digital transformation: The ‘Industrial Internet of Things’ – far bigger impact on society than the consumer internet. How do telcos need to prepare to enable this?
    • Business model innovation in the digital economy – lessons from digital native organisations like Apple, Alibaba, Amazon, Salesforce, Xiaomi and others.
    • New role for telcos to enable local digital economies – creating the next wave of growth, beyond connectivity
    • Telco transformation – learning from the worst and the best practices of Western telcos.
    • Key Challenges and how to overcome them: technology, culture, organization, metrics.
    • Roadmap to creating a ‘Digital DNA’: quick wins and strategic investments

    As a pre-read, you may be interested in an article I wrote recently for research firm, Analysys Mason, which describes the business model evolution that’s needed for telcos:

    https://www.analysysmason.com/About-Us/News/Newsletter/telcos-platforms-Jun2015/

    I look forward to meeting participants at Subex’s event in October. In the meantime, if you have any questions or ideas, do get in touch: simontorrance1940@gmail.com

  • It’s in the DNA

    It’s in the DNA

    Last year the 100th anniversary of a profound scientific achievement which shaped the modern world went by completely unnoticed by the general public. It was 100 years ago that the physicists William and Lawrence Bragg shot x-rays through various crystallized substances and were able to decipher the resulting diffraction patterns to reveal their hidden atomic structure. For that discovery they won the Nobel Prize and the science of X-Ray crystallography was born, a technique which now underpins almost all modern science, from medicine through to astronomy. Crystallography has been used to reveal the chemical composition of penicillin, insulin, Vitamin B12 and, more recently, the Mars rover Curiosity is utilizing the CheMin instrument for detecting the chemical composition of the Martian soil. Perhaps one of crystallography’s greatest triumphs started with Photo 51, the nickname given to the image Rosalind Franklin took of the DNA molecule back in 1952, and which was subsequently used by Watson and Crick to unravel the double helix structure of DNA. DNA is often described as the blueprint of life, since it contains all the instructions by which living creatures are built.

    The discoveries of pioneers like Bragg, Franklin, Watson and Crick are inspiration for those who are fascinated by finding the data patterns that reveal what’s hidden beneath. Like the X-rays of crystallography the Subex ROC RA product can see through the B/OSS by automatically analysing inputs and outputs to reveal, report and even auto-correct the hidden misalignments and other issues within. Issues which can lose a company millions overnight.

    Now ROC RA has also taken Revenue Assurance a quantum leap forward by introducing DNA. DNA provides the building blocks to automatically audit data streams from throughout an organisation and reduces the configuration effort drastically. The predefined blocks of DNA code can be used to rapidly build up the system topology and reconcile the data and interfaces thorough simple point and click selection of modules. Any adjustments or enhancements to the audit processes can be quickly made through a highly intuitive graphical interface. DNA templates cover Prepaid, Post Paid, Interconnect, Roaming, Content and many others traffic types from almost 100% of known switches, mediation and billing systems.

    Coupled with DNA are powerful new visualization and analytics capabilities that let you forecast how KPI will change over time, correlate KPI, apply what if modelling and alert you long before issues get critical. ROC RA lets you incorporate those KPI and alerts into a built-in model of your business so that the right information is channeled to the right person at the right time. You decide what level of detail you want and how and where you want to see it, be it by email, mobile dashboard, SMS or desktop dashboard.

    DNA now makes ROC RA even easier to use than ever and will make the picture of what’s really happening in your business crystal clear.

  • Service Orientated Architecture – A Balance of Form and Function

    Service Orientated Architecture – A Balance of Form and Function

    The concept of form following function was at the heart of modernist Bauhaus architecture in the early 20th century and, according to Wikipedia, extols the principle that…

    “…the shape of a building or object should be primarily based upon its intended function or purpose.”

    The phrase ‘form ever follows function’ was actually coined as long ago as 1896 by American architect Louis Sullivan, although the concept stretches back all the way to the Roman architect Marcus Vitruvius Pollio who asserted in the 1st century BC that structures should exhibit the qualities of being “solid, useful and beautiful”.

    In contrast to the modernist architecture of buildings, architecture of enterprise software is frequently guided more by engineering constraints than the needs of a business.  Functional requirements are gathered but are often implemented in ways which are more optimal for engineering than for the business processes they are meant to support.  The result is that business processes must be made to fit with the form of the software, rather than the software fitting the function of the business.  The software becomes like a strait jacket on the business which prevents it from adapting or being able to react to external conditions.

    However, innovations in enterprise architecture are freeing software to mould itself to the business processes in ways not possible a few years ago.  A system built using a modern Service Orientated Architecture (SOA) is comprised of discrete, loosely coupled modules that can communicate with each other without human intervention.

    The Open Groups definition of SOA is:

    Service-Oriented Architecture (SOA) is an architectural style that supports service-orientation.

    Service-orientation is a way of thinking in terms of services and service-based development and the outcomes of services.

    They go on to say that the SOA Architectural style

    “…is based on the design of the services – which mirror real-world business activities – comprising the enterprise (or inter-enterprise) business processes”

    By modularising the code, providing standardised interfaces (API’s) and adopting standard communication protocols, such as web service calls using SOAP,  it’s possible for features and functions to be re-combined in endless ways to support a variety of different applications.  SOA also provides a way to organically grow functionality in an iterative way.  By adopting an agile software development methodology developers can design, built and test modules that support small units of business process a piece at a time.  Since the modules are self-contained they can be re-used and re-combined with other modules to reduce development effort.  Maintenance costs are also reduced since single modules can be swapped in and out with a minimum of disruption.

    By adopting a modular service orientated architecture software developers can now at last follow the principles first laid down by Vitruvius and create solutions that fit business processes beautifully.

  • Plain Sailing on a Sea of Data

    Plain Sailing on a Sea of Data

    Running a business can be like sailing a ship.  It’s not enough to set a course and expect the ship to just get there.  The sea can be rough, the weather unpredictable, and just under the surface there may be hidden obstacles. Any number of problems can push you off course, or, at worst, sink your ship completely.  A sea of data washes around the business which can either drag you under, or carry you swiftly to your destination.  So what can you do to ensure a safe arrival at your destination?  The following checklist will help you get ready for your journey.

    A strong ship

    You will need a ship that can sail in all weathers, and has a reliable track record for sailing long distances.

    Subex has a pedigree of providing enterprise strength software to the telecoms industry for over 20 years. Subex ROC can crunch billions of call records daily

    A clear destination

    Without an agreed destination your business will drift aimlessly and will eventually run aground.  By setting clear objectives everyone can work together to ensure the ship stays the course.

    Subex consultants can help to plan for your voyage and set a course for you planned destination. Subex Analytics help to keep a business on course by using historic data to predict which direction a business is heading.

    A good map

    Your map is your business strategy, but this shouldn’t be set in stone.  A business strategy must adapt to the changing conditions and business leaders must remain vigilant to make course corrections when necessary.

    Subex ROC provides has a modularised framework that can be quickly adapted to handle new challenges or changes in course.  The course to follow can be mapped out in KPIs that provide constant visual feedback to inform you if your business goes off course.

    A navigator who knows the way

    Pick the right currents your ship will be carried quickly to your destination, but getting caught by the wrong ones can set you miles off course.  A business embarking on a journey into the unknown needs an experienced navigator to guide the way.

    Subex consultants have the experience to guide a corporation across open water or narrow straits of competition, regulatory requirements and market demands.

    As soon as sailors began to navigate beyond the sight of land then they realised they needed more than just the stars to find their way. Compasses, Nautical maps, sextants and marine chronometers all advanced the quality of analytics available to navigators, but until radar, LORAN and GPS arrived in the late 20th century sailors still relied largely upon dead reckoning and gut instinct to find the way, and their journeys would often end tragically.  Now Subex analytics can provide the same kind of objective view of where a business is heading that GPS provides for sailors.  Subex analytics can see through the fog and turbulent waves of data that flood into an organisation and threaten to knock you off course.  Using advanced time series forecasting, correlation, what if modelling, and pin sharp visualisations Subex ROC can navigate through a sea of data and help to steer your business safely to its planned destination.

  • Big Data and the Zettabyte

    Big Data and the Zettabyte

    The industry buzzwords and focus around Big Data Management are starting to wane in the media, but should it?

    Consider this: In 2015, the internet is expected to carry over a Zettabyte of data for the first time ever. Even more interesting…and alarming…is that by 2020, forecasts are calling for upwards of 35 Zettabytes, per year (!), to be carried. If Big Data were a round of golf, and we as an industry thought we were somewhere around the 2nd or 3rd hole, in reality, we haven’t even purchased our clubs yet.

    For those of you not familiar with a Zettabyte, here is the breakdown:
    1000 Terabytes = Petabyte
    1000 Petabytes = Exabyte
    1000 Exabytes = Zettabyte

    Mobile video data alone has increased over 3500% since 2010; statistics abound for data growth – and they all point to explosive growth continuing. With the advent of 4G, raising data speeds and volumes by an order of magnitude, we now see 5G appearing by 2017 in some markets – again raising the volumes and speeds by yet another order of magnitude. Everything in our lives is being connected. Cars, appliances, our bodies (and embedded equipment to run them, e.g., pacemakers), every shop and street corner (video), and even the air, the water currents, and the space surrounding our immediate planet, are all feeding data in increasing volumes and depths into our collective networks. What does this mean?

    It means, quite simply, that we haven’t even begun to understand what Big Data is and how it will impact us. It also means that the communications industry, and the backbone it supports, has a long way to go (as the default host for much of this data) to be prepared.

  • A Digital Future for Everyone

    A Digital Future for Everyone

    Baroness Martha lane Fox, Internet pioneer and co-founder of lastminute.com,  has recently launched a campaign to try raise public and government awareness as to how the internet can benefit everyone, rather than just being a corporate billboard for advertising.   It is entitled DOT EVERYONE, a play on the .com extension used by commercial websites.

    As a business women in the late 90’s Baroness Fox realised the potential of the internet to provide an economical channel through which services could be delivered directly to the public.  Lastminute.com thrived on scooping up the unsold seats for holidays and west end shows and making them immediately available to the public with an easy to use search engine.  It was a business model that was uniquely suited to the internet, since it dealt with a data product that would become obsolete very quickly and targeted a geographically disparate market.  The internet provided the perfect channel through which such a product could be made available to a huge market in the minimum of time.  It is now Europe’s largest travel and leisure website.

    Today she is working to enlighten the British government and public as to how those characteristics of the internet that lastminute.com exploited could also serve the public good.  Her DOT EVERYONE campaign has three key strands

    1. To help educate all of us, from all walks of life, about the internet. The internet is the organising principle of our age, touching all our lives, every day. As the late activist Aaron Swartz put it, “It’s not OK not to understand the Internet anymore”.
    2. To put women at the heart of the technology sector. Currently there are fewer women in the digital sector than there are in Parliament.
    3. We (the British government) should aim for a much more ambitious global role in unpicking the complex moral and ethical issues that the internet presents.

    While these messages were aimed primarily at UK government, they are really aspirations that should apply equally to governments everywhere. In this blog I am looking at the first of those messages.  In order to “educate all of us”, it is essential that good internet services are made available to all of us.  Baroness Fox goes on to say

    “We need to make sure that those in power understand how the internet can help us redefine public services, improve the lives of the most vulnerable, bolster our economy.” 

    Key to this redefinition of public services is the usability of government websites.  By improving the usability of websites it is hoped many more interactions with government will happen as self-service transactions, resulting in substantial cost savings.  A good user experience can result in improved quality of service for much lower cost.   In a letter written to the government in 2010 Fox states

    “It seems to me that the time is now to use the Internet to shift the lead in the design of services from the policy and legal teams to the end users.”

    In other words, governments must cut through red tape and design services around user needs.

    Along with improving the quality of transactions on government websites it is also recommended that services should be made available through API’s such that external organisations can directly utilise government services, as well as making them more widely available to re-sellers.

    “We should put government transactional services and content where people spend their time on the web, rather than always expecting them to go to Directgov.” (government website)

    By exposing API’s to third party vendors then not only are external companies able to directly interface to those services, but they also able to offer them on to other consumers, thereby extending the reach of the service providers.  For example, Ebay and Facebook often carry ads for third party organisations that post their content via the Ebay and Facebook API’s.

    A third recommendation is that services should be centralised through a single portal.  This will improve ease of access, but will also result in removing duplication.

    The recommendations that Baroness Fox has made are already making a substantial difference to how consumers interact with government, and will continue to drive government to improve services and embrace the digital age.  In the words of Baroness Fox

    “What digital is about, what the internet allows, is a radical redesign of services. Cheaper, better, faster.”

    It’s a revolution that affects everyone.