Telecom White Paper CSPs' Multi-Country Operations Global Enterprise Architecture
About the Authors Arvind Ramanujam Enterprise Architect Arvind Ramanujam is an Enterprise Architect with over eight years of consulting and engineering experience with service providers across the globe. He has co-authored a paper published in the telecom industry s leading forum, TMF. He is currently the lead architect of an OSS/GIS product. Kannan Ramakrishnan Enterprise Architect Kannan Ramakrishnan is a TOGAF certified Enterprise Architect with over 14 years of experience with service providers across the globe. He has led large architecture transformation programs through the entire journey from vision to realization phase. He has co-authored a paper published in TMF Forum. He s currently involved in product development. Vinod Ramamoorthy Enterprise Architect Vinod Ramamoorthy is a TOGAF-certified Enterprise Architect with over 14 years of experience. He has led the Enterprise Architecture function within TCS Telecom Group and has applied for two patents. He is currently involved in product development.
Several Communication Service Providers (CSPs) operate in more than one country, and need to optimize operations across all locations. To this end, CSPs have taken up initiatives such as data center consolidation, centralized procurement, and centralization of IT networks. Recently, there has been an increasing interest among CSPs in synergizing the IT stacks across operations. Many operators believe a global enterprise architecture supporting multiple operations can be instrumental in reducing time to market and operational costs. The prevalence and maturity of cloud technologies and truly integrated BSS and OSS solutions has enabled CSPs to pursue this goal. This paper explores the challenges, identifies and analyses the architecture options, and provides an enterprise architecture view on this subject. We also look at TM Forum Frameworx standards and how they can be used to gain a global enterprise architecture perspective.
Contents 1. Introduction 6 2. Current State of IT Architecture and Its Implications 6 3. The Multi-Country CSP Enterprise: Key Architecture Decisions 8 4. Application Centralization, Clustering, or Localization 8 Application Map for Centralization, Clustering, or Localization Impact of Technology Architecture on Application Map 9 11 5. E2E Solution Deployment Options 11 6. Choosing an E2E Solution Deployment Option 13 7. Transformation Options and Benefits 14 8. Popular Technology Options and Their Limitations 16 9. Conclusion: Global E2E as the Best Fit for Multi-country CSP 18
List of Abbreviations BSS Business Support Systems CRM Customer Relationship Management CSP Communication Service Provider E2E End-to-end ESS Enterprise Support Systems IT Information Technology MVNE Mobile Virtual Network Enabler NFR Non-Functional Requirements Operating Company OSS Operation Support Systems S/P Supplier/Partner SaaS Software as a Service SLA Service Level Agreement TAM Telecom Application Map TCO Total Cost of Operations TMForum Tele Management Forum
1. Introduction The opening up of mobile markets coupled with declining telecom growth in native countries has led to a number of Communication Service Providers (CSPs) expanding operations to multiple countries. Most multi-country CSPs have realized the first wave of benefits from synergies across operations through initiatives such as centralized procurement, data center consolidation, application standardization and centralization, and so on. However, multi-country CSPs have had less success in building centralized IT stacks. Process variations, technology maturity, time to market constraints, regulatory restrictions, governance, and other factors have contributed to such siloed operations. Several CSPs who operate in multiple countries are therefore pursuing a vision to build a global enterprise IT stack that will support all their operating companies (s). 2. Current State of IT Architecture and Its Implications CSP operations are supported by a set of applications typically grouped as follows: Business Support Systems (BSS) Operational Support Systems (OSS) Enterprise Support Systems (ESS) The current IT architecture in a typical CSP is depicted in Figure 1, with each supported by its own BSS, OSS, and ESS applications. Communication Service Provider Group 1 2 N BSS BSS BSS OSS OSS OSS ESS ESS ESS Figure 1: High Level View of A Typical Multi-Country IT Stack 6
Most multi-country CSPs have ended up with the implementation model depicted in Figure 1 due to: The limited ability of the existing IT architecture to meet time-to-market challenges in a new market Local variations across processes, products, and services Organizational politics and governance issues Lack of technology maturity to support multi-country operations Mergers and acquisitions As each s operations mature, CSPs have realized that individual IT stacks for each lead to: Higher costs due to varied technology options, repeated development of similar capabilities, and individual operations Lost opportunities in improving time to market, as capabilities get duplicated in individual Need for individual business process standardization and optimization programs to improve operational efficiency Several operators are envisioning the building of a global IT stack that will help them overcome these challenges. However, before launching a global IT stack initiative, a set of pertinent questions needs to be assessed by the CSP from different perspectives. Perspective Key Assessment Questions Financial What is the investment required? What are the expected savings in operational costs, and how long will it take to realize this? Will global IT operations reduce capital expenditure in future development projects? Operational Will operational efficiency improve? Will this initiative reduce time to market and improve the customer experience? Architecture Which applications are centralized, clustered, and localized? How will E2E deployment take place? Is the technology mature enough to support a global IT stack? Organizational Does the organizational structure allow for central governance? How will individual s align? Table 1: Key Assessment Questions for Global IT Stack Initiative In the following sections, this white paper will focus on the architecture aspects of building an enterprise global IT stack. 7
3. The Multi-Country CSP Enterprise: Key Architecture Decisions Key architecture decisions that define a multi-country CSP enterprise architecture include: Application Centralization, Clustering or Localization: This is dependent on parameters such as business process variation, technology maturity, and others. High-Level Solution Deployment Option: NFRs, regulatory constraints, and the decision of centralization, clustering, or localization are some factors that affect this decision. Transformation Options: Moving from an individual IT stack to a global IT architecture can be pursued through either of two primary options: Component by Component : Involves deploying specific components one at a time, and then following up with rest of the components until the target is achieved Big Bang : Involves deploying the E2E set of target components and the consecutive migration of each onto the target Popular Technology Options: The organization needs the technology maturity to support the planned global IT stack. Application Centralization, Clustering, or Localization The fundamental issue in deciding on the global IT stack is whether applications should be centralized, localized, or clustered. An application is considered centralized if there is a single instance of that application for all s. A localized application has one instance of that application for each individual. An application is clustered if one application serves a group of s. Decision trees and application maps are simple decision tools that can help service providers identify if a particular application is to be centralized, localized, or clustered. Figure 2 depicts how a decision tree can be used to arrive at the optimal decision. 8
N Does this component have regulatory requirements that require data or access to be limited within the country? Y N Is it possible to architect this component so that data alone is isolated? Y Localized N Can this component meet performance (latency, access) requirements in a centralized scenario? Y N From a functional perspective, is this component likely to support varying business processes? Is the technology mature? Y N Centralization candidate Y Y Clustered Part of customer online interaction N Centralized Figure 2: Decision Tree for Centralization, Clustering, or Localization Application Map for Centralization, Clustering, or Localization After the decision tree is used, the decision of whether to centralize, cluster, or localize each individual application should be laid out on an application map, as shown in Table 2. TMForum s Frameworx has been used to create this table. 9
Telecom Application Map Level 0 Telecom Application Map Level 1 / Level 2 Option Sales management Channel sales management, sales portal and solution management Clustered Sales management Sales aids, compensation and results, contract management, campaign and funnel management, sales account management, sales and marketing reporting Centralized Product management Product catalog management Clustered Product management Product strategy or proposition management, product lifecycle management, product performance management Centralized Customer management Charge calculation and balance management, billing events management Localized Customer management Customer information management, transactional document production, customer order management, customer self management, customer insight management, customer service representative toolbox, customer problem management, receivables management, billing inquiry, dispute and adjustment management, billing account management, case management, customer care Clustered Customer management Bill format/render, collection management, bill calculation, customer loyalty management Centralized Service management All applications Clustered Resource management Resource lifecycle management, inventory management, order management, domain management, process management, jeopardy management, voucher management, resource performance management, fault management, workforce management, network number inventory management, usage management Clustered Resource management Resource process management, change management, resource logistics, location management Centralized Resource management Resource test management Localized Suppliers or partners Supplier or partner management, order management, supplier or partner assurance management Clustered Supplier / partner Relationship management, workflow, reconciliation management, product lifecycle management, reporting, portal, wholesale or interconnect billing Centralized Enterprise domain Security management applications lawful interception Localized Enterprise domain Knowledge management, business intelligence (BI), fraud management Clustered Enterprise domain Revenue assurance management, HR management, financial management, asset management, security management(except lawful interception), knowledge management, patent, invention and trademark management, enterprise websites and portals, regulatory and compliance management, administrative services, supply chain management Centralized Integration infrastructure All applications Localized, clustered instance, and centralized instance Table 2: Application Map for Centralization, Clustering, or Localization 10
Impact of Technology Architecture on Application Map While Table 2 classifies application components as localized, clustered, or centralized, the choice of technology options may alter the classification. For example, if a Customer Relationship Management (CRM) technology supports Sales Aids as well as channel sales management, even though the classification of Sales Aids is centralized, the technology choices could force this application component to be clustered. 4. E2E Solution Deployment Options A global CSP can choose from these solution deployment options: Idealistic : One E2E stack across all s, i.e., all applications are centralized Simplistic : One E2E stack for each, i.e., all applications are localized Middle Ground : One E2E stack across a cluster of s, i.e., all applications are clustered Pragmatic : One E2E stack comprising central, clustered, and local applications, based on the function of the application. Figure 3 explains these options. Idealistic - 1 instance Simplistic - N instances 1 1 Instance 2 N... Middle Ground - An instance for a group of s Instance1 Instance2 1 4 3 2 Instance N Instance 5. Pragmatic -a global IT stack comprising local, clustered, and global apps Local apps Clustered apps 2 Global apps Figure 3: E2E Solution Deployment Options 11
Figure 4 analyses the deployment options (shown in Figure 3) against the key parameters of cost benefits and operational flexibility: Cost Benefits Idealistic High levels of standardization of business processes expected Maximum cost optimization Less flexbility for individual s Likileyhood of performance and latency issues high Middle Ground Standardization limited within region Cost optimization opportunities reasonable but not optimized Potential flexibility issues for individual Opcos Potential performance and latency Issues Pragmatic Standardization is based on functional domain: for instance, ERP processes are highly standardized already Cost optimization opportunities reasonable Flexibility is not impacted Performance and latency issues containable as choice is based on domain Simplistic Standardization of business processes is no a constraint Cost Optimizations Minimal, primarily vendor standardizations High flexibility Performance and Laency not an issue Operational Flexibility Figure 4: E2E Solution Option Analysis 5. Choosing an E2E Solution Deployment Option While any of the options can be used, each organization needs to choose the option that suits its circumstances. The parameters to be considered include (but should not be limited to) these: Number of s: It is likely that as the number of s increases, the variations in terms of business processes, product portfolio, and network types also increases. This has a cascading impact on the functional and technical complexity. Geographical Spread: The geographical spread impacts the NFRs. For example, a real-time charging solution would require response time in milliseconds, and the physical geographical spread might make it impossible to deploy a single instance. Subscriber Base: As subscriber base increases, the volume of data in the application as well as the number of customer interactions increases, thus affecting the NFRs. Regulatory Constraints: Regulatory requirements influence aspects such as the local storage of or access to data, and are a critical input to the E2E solution deployment option. Revenues and Margins: One enterprise-wide solution may not fit all s. s that operate on very low revenues or margins may not be suited to a standardized solution. Such s may be considered for exemptions. 12
6.Transformation Options and Benefits While the vision is to have a global IT stack, CSPs often adopt different transformation options based on the constraints. Figure 5 illustrates the three transformation approaches that could be adopted. Global E2E IT Stack Rollout: by E2E Global IT Stack Build Application Standardization Application Standardization Component by Component Rollout: by or All s Minimalistic Data Center Consolidation Infrastructure Standardization Infrastructure Virtualization Application Vendor Standardization Shared Services Operations Figure 5: Transformation Options Minimalistic option may be pursued by CSPs who want to restrict the transformation to the simpler processes. Some typical initiatives include data center consolidation, infrastructure virtualization, infrastructure consolidation and standardization, application vendor standardization, and Shared Services Operations. Application Standardization is achieved by deploying one or a set of components at a time. Typically, most CSPs start off with ESS systems standardization before moving onto OSS domains. All initiatives pursued in the minimalistic path are implicitly included in this option. Global E2E IT stack is achieved by deploying the E2E set of target components and migrating of s to the targets one by one. CSPs typically start this initiative on new (greenfield) s, and then transform the existing s one at a time, based on the complexity of each. In this option also, all initiatives pursued in the Minimalistic and Application Standardization path are implicitly included. 13
The three approaches lead to varied level of benefits, as depicted in Figure 6. High Maximum Benefits Global E2E IT Stack Phase 2 Complexity Moderated Benefits Application Standardization Phase 1 Limited Benefits Minimalistic High Low Benefits Figure 6: Transformation Complexity and Benefits Comparison Building a global E2E IT stack is the most complex option, but it also offers the most benefits. Typical business benefits realized by a global E2E IT stack are: Reduction in time to market by using the same applications across s Cost savings accrued through various optimization initiatives, as detailed in Table 3 Saving Parameter Potential Benefits Type of Savings License optimization 15-20 % optimization One time Infrastructure optimization 30-40% optimization of current Recurring Application operations optimization 30-40% optimization of current Recurring Application maintenance optimization 40-50% optimization of current Recurring Application development optimization 60-70% optimization of current Recurring Business operations optimization 40-50% optimization of current Recurring Change management 25-35% optimization of current Recurring Business costs reduction centralized procurement, vendor management, product management, security, risk management, training & governance 25-30% optimization of current Recurring Source: TCS internal Table 3: Optimization Initiatives 14
7.Popular Technology Options and Their Limitations There are different classes of popular technology solutions designed to address multi-country operator needs: Mobile Virtual Network Enabler (MVNE) platform vendor solutions Cloud-based Software as a Service (SaaS) solution components Pre-integrated, pre-modelled Business Processes in a Pack application vendors Pre-integrated E2E application vendors Best of breed application vendors The above mentioned technology options, and their pros and cons are detailed in Table 4. Technology Options Pros Cons MVNE Platform vendor solutions Proven for multiple MVNOs Proven for MVNOs, not for full Operating Companies Limited to mobile segment alone Functional support limited to specific regions Cloud-based SaaS solution components Proven in specific functional areas Does not cater to all functional domains Building an E2E integrated stack comprising solely of such as marketing and sales cloud-based components is not proven Pre-integrated, pre-modeled Business Processes in a Pack application vendors Support for different operating Pre-Integrated E2E Best of Suite Application Vendors Support for different operating Since these solutions are fairly new, live implementations companies Extensive support for most functional areas Business process and application hooks to support variations companies Extensive support for most functional areas supporting multi-country operations is limited Number of live implementations supporting multicountry operations is limited Some vendors are hardly pre-integrated but have acquired capabilities through MA Multi-tenancy might be an issue Best of Breed Application Vendors Support for different operating companies Extensive support for most functional areas Good support for exception scenarios Requires a large business process definition exercise as there are no defined E2E processes Requires a large integration exercise as this involves development of new interfaces across applications from different vendors Number of live implementations supporting multicountry operations is limited Table 4: Technology Options: Pros and Cons 15
CSPs need to also consider the following factors while choosing a specific technology option and a vendor. Complete support for most of the BSS and OSS functional domains Pre-integrated suite of applications Multi-tenant applications Ability to deploy application components in centralized, localized, or clustered mode Ability to deploy in cloud or hosted or in-premise models and thereby support regulatory compliance Extensive support for variations across processes, products, services and networks (such as mobile, fixed, and cable) Pluggable interfaces support for typical specific variations (such as payment interface, portability interface, and so on) 8. Conclusion: Global E2E as the Best Fit for Multicountry CSP Multi-country CSPs have become aware of the tremendous opportunity to reduce their costs and improve time to market by the synergies that a truly global enterprise IT architecture can deliver. Mature CSPs have already adopted the initiatives mentioned in the Minimalistic approach, which includes data center consolidation, infrastructure virtualization, infrastructure consolidation and standardization, application vendor standardization, and Shared Services Operations. A few CSPs have even standardized applications, especially on the ESS domain. CSPs who have already gone through the Minimalistic and Standardized approaches are looking at building a global E2E IT stack to maximize their benefits. Building a global IT stack comprising of centralized, clustered, and localized applications is a complex task. TMF Frameworx standards has enabled a structured approach for the architecture blueprinting. This paper takes you through some of the key architecture decisions involved in developing a global IT architecture blueprint. Apart from the functional and technical complexities of building and deploying a global IT stack, establishing and managing the an operating model, both for one time implementation and also for ongoing business support, stands out as the other most important critical success factor. 16
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