Transformation Essentials

Tom Donaher, Executive Director, Telcordia Consulting Services

Change is a constant in the telecommunications industry, and it’s also constantly accelerating.  In just the past few years, we’ve seen an explosion in video on demand for television, PCs and smartphones; in machine-to-machine communications; software as a service (SaaS) and cloud computing.  Total consumer internet traffic alone, driven by both fixed and mobile subscribers, is forecast to grow on an annual basis by more than 35% through 2015.

On top of dealing with this exponential growth in data traffic and network infrastructure, competition has made the “right first time” rollout of new services a matter of survival, ratcheting up the network and operational pressures for both wireless and wireline service providers.

Such transformations in the market shatter pre-existing assumptions of industry economics and what is required to maintain, let alone increase, profitability. Speed, accuracy, and efficiency are the watchwords of the new operational paradigm. And when there is no longer a clear separation between wireless and wireline, survival depends on transforming the OSS, the network, and business itself.

Think Big

Seen in this context, “transformation” programs must be ambitious and comprehensive. System upgrades or incremental IT changes cannot deliver the necessary changes in the way the organization works, or make a significant impact on the areas C-level executives care most about: CAPEX, OPEX, and the bottom line. Real transformation has a dramatic impact upon them all. It redefines the fundamental economics of the organization, radically affecting network and network management possibilities, and enabling a cost structure change that increases the broadband adoption rate through lower prices.

First Things First

To begin, it’s crucial to define and clarify company-specific needs and challenges. Operators should first consider the market potential both from the customer perspective and the services they plan to deploy. In other words, you need a service strategy and a network strategy long before you address the network technology and OSS portfolio. Without the first two, in fact, there’s no point in doing the third. This is the key input that guides which technology you should implement.

It’s More Than Technology

It’s also not enough to only consider the relevant technology alternatives. You must also consider the operational implications of those technologies. For example, what are the implications of choosing between Fiber to the Cabinet (FTTC) and Fiber to the Home (FTTH)? Since FTTH is passive in nature, it reduces “hands in the plant” and therefore lowers maintenance cost. FTTC, on the other hand, requires powering, which is a significant cost addition to an existing environment. These are the types of details that have to be considered when making an access network transformation decision. One important goal is to reduce variability in the plant so all engineers are designing in a similar fashion.

If Everyone’s Not Involved, It’s Not “Transformation”

Transformation will change how people work, what they do, and what is possible in all parts of the business. So it’s important to involve a broad array of key stakeholders representing Business, Network, Operations, Outside Plant, and IT organizations, as well as Marketing and Finance. Remember, the needs and pain points of all of these stakeholders are needed to develop the best business case for transformation and accelerate the approval process. They bring the credibility of their individual Key Performance Indicators (KPIs) and rationalizations related to each of their areas of expertise, and their input can help dramatically change the discussion where investment value and ROI are concerned. Their continued involvement will also be crucial in identifying and quantifying the benefits of OSS transformation down the road and developing the skill sets to cost-efficiently manage the transformed business. 

In-Depth Expertise is Critical

No matter what stage of transformation they may be in, nearly every company turns to outside help to augment the expertise of their own people. There are many consultants and vendors whose names may inspire confidence, but this is no time to make assumptions based on general reputation. Press for an objective view of the company’s transformation track record and depth of their telco experience, along with the methodologies they use for everything from data collection to architecture and planning to service assurance. The soundest methodologies are not based on an understanding of system-related issues alone, but also on a broader knowledge of how people actually work in the real world, plus a familiarity with industry best practices, business processes, technology and data issues, and OSS metrics.

Realize the Potential of Transformation

In business terms, true OSS and network transformation is arguably as profound as the technology revolution experienced by end users over the past two decades. It’s also the only long-term solution to the business problems caused by that revolution. Transformation changes everything, and that means it must be done the right way, for the right business reasons. When it is, the payback is immediate and the results cannot be disputed.
 

For more information about OSS Transformation, please contact Tom Donaher, Executive Director, Telcordia Consulting Services, at tdonaher@telcordia.com or visit our website.