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E2E Managed Services for Better Business Value - Huawei

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E2E Managed Services
for Better Business
Value
By Richard Huang & Giles Vincent




Managed services is entering the                  This requires industry-wide evolution that      evolved our focus from traditional network
mainstream                                        encompasses the cloud, pipe, and device.        MS to ICT MS, which equates to value-
                                                                                                  chain evolution rather than mere technology
Managed services (MS) has seen remarkable         Furthermore, subscriber acquisition &           evolution, culminating in clear improvements
growth in the telecom sector over the last        retention costs are increasing while revenues   in revenue and margin, customer experience,
few years. The key market drivers for its         are declining, as more and more service         and operational efficiency for operators.
adoption vary by region, but OPEX reduction,      providers are competing and vying for the
network complexity, customer satisfaction,        end user’s attention.                           Huawei has invested in and continues to
and time-to-market are often involved.                                                            invest in organizations, business platforms,
                                                  To address these challenges, operators are      and tools related to MS. Out of its 22,000
In mature markets such as Europe, where           increasingly turning to managed services.       professional services staff members, over
mobile penetration exceeds 100%, operators                                                        6,000 work in managed services. MS
need to reduce costs to improve their bottom                                                      represents the turning over of a key element
line. With economic and budgetary crises          Growth, innovation &                            of any operator’s future growth to a third
complicating the matter, outsourcing of           partnership                                     party, meaning that trust counts under these
peripheral functions has become imperative.                                                       circumstances as much as skill; but Huawei
In emerging markets such as India, time-to-       Huawei fully comprehends the challenges         partnerships are open and transparent.
market (TTM) is a key factor, as operators        that operators face. We aim to function as a    Operators will retain full network visibility
lack the resources needed for timely rollout      transformation enabler that helps them cope     through Huawei’s tailored customer
in these high-growth territories.                 with the dynamics of the industry’s value-      interface, while also maintaining control over
                                                  chain evolution, which means that Huawei        their own business and network strategy;
However, all operators are challenged by          has also had to transform from a traditional    through these portals, operators can view
telecom-IT convergence (which has the             to a next-gen MS provider. This has involved    their network from end to end.
potential to greatly impact future growth         Huawei shifting its focus from mere network
areas such as ICT and cloud service) as           metrics (KPIs) to the end-user experience       Huawei’s primary MS offerings fall under EOT
subscribers now demand a consistent               (KQIs); no easy task considering our hard-      (establish, operate & transfer), outsourcing,
experience regardless of the terminal involved.   core engineering background. We have            and hosting (Fig. 1). EOT ensures rapid TTM,


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As a next-generation managed services provider, Huawei’s end-to-end managed services promises operators gains in both revenue & margin, as
well as enhanced operational efficiency and improved end-user experience.




particularly for green fielders, while network    to advance themselves at a fast-growing             tools and processes needed to keep the
outsourcing reduces OPEX and simplifies           global Fortune 500 company. As of the end           network running. Each GNOC includes
internal processes along with O&M. Hosting        of 2011, Huawei has signed over 250 MS              E-iNOC, which further leverages synergies
simplifies the business model, allowing           contracts in over 60 countries, accounting          with GTAC, GNAC and GSRC to resolve
operators to test and launch new services in      for over a quarter of a billion subscribers;        network issues faster and provide end-
a very short time at minimal risk.                this helped prompt Frost & Sullivan to              to-end services such as performance
                                                  bestow upon Huawei its Global Growth and            benchmarking, optimization, design, and
Huawei has pioneered a wealth of                  Innovation in Telecom Managed Services              customer support, resulting in improved
innovations to support its customers. Our TM      award in November of that year.                     overall value for customers.
Forum-certified MS Unified Platform (MSUP)
is based on the eTOM and ITIL standards for                                                           • Field management innovation
ICT convergence management. Huawei has            Better business value                               To optimize field operations, E-iNOC
also been a significant contributor to the TM                                                         features an Internet-enabled field workforce
Forum and is currently participating in their     Huawei offers a full E2E managed services suite,    management system that schedules resource
innovation program, known as Catalyst,            enabling the following benefits for the operator.   allocation optimally, while automating map-
where Huawei, together with other service                                                             based dispatching, wireless communications,
providers, vendors, and partners, have            Operational excellence                              and mobile computing. The advanced
launched a project to study suitable eTOM                                                             intelligent scheduling application utilizes
and ITIL implementation methods for service       Huawei leverages its standardized Managed           a patented heuristic-based optimization
assurance, which will prove vital as it enables   Services Unified Platform (MSUP), which             algorithm that enables the scheduling
a comprehensive view of the network,              covers processes, tools, and overall                of a full spectrum of work, ranging from
application, and business layers.                 organization, as an enabler of operational          routine customer service and installation
                                                  transformation. E-iNOC, which falls under           calls to more complex activities such as
Huawei’s state-of-the-art OSS tool (E-iNOC),      this platform, features a variety of TM Forum-      network planning, engineering, design, and
which is integrated with the MSUP                 certified processes that play an important role     construction associated with projects of any
framework, has both service quality and           in the platform’s support of service delivery,      duration required, resulting in significantly
multi-vendor management capabilities, which       while enhancing operational efficiency.             improved field operational efficiency. Network
are some of the key reasons why operators                                                             interruptions are reduced, both in number
are increasingly partnering with Huawei, as       • GNOC for synergy & efficiency                     and duration, through improved maintenance
is the fact that the employees that transfer      Huawei GNOCs facilitate customer                    (preventative & corrective). Thanks to Huawei
to Huawei will have a great opportunity           operations by scaling down the resources,           MS, a certain global operator based in Europe


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Solution


now enjoys a nearly 30% improvement in                                 shows real-time SLA, OLA, and process KPIs,                   To help operators exploit growth
field efficiency at 20% less manpower, while                           this system gives a top-down analysis of                      opportunities and improve their bottom line,
trouble ticket-handling capabilities are also                          overall performance, meaning that the NOC                     Huawei has developed a number of revenue
improved by roughly 20%, helping lead to a                             operations team can utilize Huawei archives                   enhancement solutions.
significant reduction in OPEX.                                         to determine problems and streamline
                                                                       processes. Huawei has gone a step further                     • Revenue assurance
• NOC efficiency management                                            by setting up a global team to create a                       Loss of revenue due to billing & charging
Operators today are under enormous                                     culture of continuous improvement. The                        complexity, inaccurate data input, invalid
pressure to tighten their belts through                                team’s sole job is monitoring, analysis, and                  correction & discount control, ineffective
increased efficiency, reduced waste,                                   improvement (MAI), based on Huawei’s                          payment collection, and bad debt
ensured alignment between the operational                              vast MS experience, to ensure operational                     management remain a major challenge for
support platform & processes, IT & network                             excellence.                                                   operators The primary causes of revenue
compatibility, and operational maturation                                                                                            leakage include network configuration
that can enhance the delivery of convergent                            With Huawei, operators can measure and                        changes, tariff configurations, and poor system
next-gen services.                                                     quantify operational efficiency and analyze                   integration during the CDR processing cycle.
                                                                       problems in terms of time, quality, and
Huawei has an innovative set of process KPIs                           effectiveness. Furthermore, the MAI team can                  Huawei, through its understanding of the
and employs an expert MS team to manage                                measure, benchmark, standardize, compare                      revenue cycle, can help operators reduce the
and execute them. Huawei’s MSUP-based                                  and analyze an organization’s infrastructure                  potential impact and risk of revenue leakage
“Process KPI”’ system covers the full range                            and processes for continuous improvement.                     through its revenue assurance processes,
of NOC activities, where said KPIs represent                           After implementation with a Middle Eastern                    tools, and expertise. Our methodology is
key elements of operational efficiency such                            operator, the First Time Fault Resolution                     based on statistical sampling derived from
as Mean Time to Trouble Ticket Response                                rate improved by over 40%, while customer                     its global experiences in detecting revenue
(MTTR), Mean Time to Alarm Response,                                   complaint MTTR declined by nearly 60%.                        losses, enabling close monitoring of revenue
and Front Office/Back Office efficiency.                                                                                             performance in key areas such as ARPU,
By utilizing the E-iNOC dashboard, which                               Revenue enhancement                                           subscriber growth, fraud, and revenue loss.




                               EOT
                                                                                              Outsourcing                                                 Hosting
                               EOM




                                               Network                                                                                        IT
       Managed VAS                                                                                    Managed BSS
                                          Go-to-market Strategy
                                                                                                        Business Process Operation
                Business Process Design                              Product Design
                                                                                                             Product & Marketing Management            Customer Management
                 Content Management                                CP/SP Management
                                                                                                                  Resources Management              Billing & Revenue Management
                  Service Integration                              Service Assurance

       SQM                                                                                              Application Management
              Service Quality Improvement                    Service Quality Management                          Application Maintenance              Application Enhancement


       Managed Network                                                                                  Infrastructure Management
         NOC Operation         Spare Parts Management       Network Performance Management
                                                                                                               Server/Storage
                                                                                                                                       OS/DB Management          Disaster Recovery
        Field Maintenance       Managed Site Energy               All-IP Network Management                    Management


       Deployment & Modernization
                         Consulting                                    Planning & Design                         Rollout & Swap                              Integration


                                                                             Managed Services Unified Platform (MSUP)

                   GTAC/ GNAC                                              GNOC                             MS Center of Excellence                         Hosting Center

                                                                      Figure 1 Huawei E2E Managed Services Offerings




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                                                                                                                                FEB 2012 ISSUE 31




Huawei personnel will conduct management
interviews and analyze findings across
various control points to identify and isolate
root causes, after which proven remedies are
implemented. Huawei was able to improve
the billing accuracy for a certain African
operator from approximately 70% to 90%,
leading to fewer customer complaints.

• Revenue generation
Huawei is the only leading telecom
equipment vendor to address both the
enterprise segment and devices, making
it uniquely suited to address the revenue
enhancement needs of its customers.
Huawei can comprehensively enhance
the subscriber experience by assuring
system availability and designing profitable
applications suitable for any market.
Huawei’s MS team works closely with the
operator’s marketing team to understand
customer behavior through analysis of usage
patterns and market conditions. We will
then create a suitable ecosystem by bringing
in SPs and CPs, through our inTouch
partnership program, and jointly designing
the appropriate pricing/marketing strategy,
as Huawei’s SDP creates a platform for the       customers, allowing them to float outside-       the complete end-to-end system covering
CPs/SPs to reach the market base quickly         the-box ideas at minimal risk and CAPEX.         devices, network, services infrastructure etc,
and easily.                                      Using Huawei’s hosted SDP, a South Asian         Huawei has invested over USD35 million to
                                                 operator increased its ARPU by around 25%,       develop a range of solutions under the brand
With our large network of partners and           while shortening its TTM from seven weeks        name of HUAWEI SmartCare. This service
cloud infrastructure, Huawei can offer           to less than five days.                          functions as a supplement to MS, and is a
sustainable growth opportunities to its                                                           tailored solution identified and agreed upon
customers. For a certain global operator         Customer satisfaction                            with each operator after in-depth analysis
that was struggling with service TTM                                                              and discussion. It might involve extensive
and network integration complexities,            The subscriber is an operator’s most             customer surveys, where Huawei ascertains
Huawei deployed a multi-regional, layered        important asset, as even the most efficient      service applications and how they are used,
SDP architecture that connected thirteen         network in the world will do nothing to          after which said surveys are analyzed using
countries, thus creating a standard managed      reduce churn. Over the last two years,           proprietary Huawei algorithms. Huawei
platform for service launch. Huawei provided     Huawei has been looking at ways to improve       has already carried this out in various Asian
an E2E MS solution where the scope of work       the end-user experience. This has involved       markets, reducing the number of customers
encompassed service planning, marketing          a holistic approach, where alarms and            complaining about bad experiences for a
operations support, partner management,          performance thresholds are monitored at          certain operator in the region by roughly
application customization, and SDP platform      the network level, while the service level has   28%. Through this service, operators are
O&M. Huawei’s MS team also helped the            encompassed dropped call rates and web           taking the first steps in transforming their
operator aggregate over 300 CP/SP partners.      browsing delays. This comprehensiveness          O&M processes from KPI to QoE orientation.
The results were quite noticeable, as the        allows Huawei to identify areas requiring
customer’s service TTM dropped from              capacity or coverage expansion; troubleshoot     Through our business platforms, processes
about 6 months to 5-6 weeks, while VAS           latent issues before customers complain;         and tools, Huawei has developed a range of
penetration increased significantly.             address user complaints with network             managed services delivery capabilities which
                                                 performance reports; and optimize the            refine network process for the operator
In addition, Huawei offers an innovative and     overall network and operational processes.       and enhance service quality for the end
flexible business model to meet the needs                                                         user. Huawei will continue to invest in all
of a variety of scenarios. Hosting services      For operators who want to take the end-user      aspects of MS in order to deliver the highest
reduce the need for capital investment by        experience to the next level, which includes     business value to our customers.


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