Revenue Assurance Convergence to Business Assurance


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The managements of telecom sector is progressively relying much more on Revenue Assurance function to assure not only the revenue but also other business components also, including cost and marging assuurance, systems, data integrity, customer churn management resulting convergence of RA function into Business Assurance in the wake of fast evolving technologies and new type of players entring the market.

Published in: Business, Economy & Finance

Revenue Assurance Convergence to Business Assurance

  1. 1. Ahmad Nadeem Syed Director Revenue Assurance  & Fraud Management 1 Revenue  Assurance Business  Assurance
  2. 2. My Brief Introduction 2 ● Currently Working as Director Revenue Assurance & Fraud  Management in Mobilink with 37 million subscribers ● Total Experience – 32 Years ● Telecom Experience – 24 Years  ● Expertise ‐ Billing, Revenue Assurance, Fraud Management ‐ Credit & Collection ‐ Process improvement, designing and computerization ‐ Business Planning and Budgeting ‐ Interconnection and Cost Modeling and Regulatory Affairs, ‐ Financial Management
  3. 3. 3 ● Role of revenue assurance in telecom sector ● Generally practiced coverage of RA ● Leakage pain points ● Why Business Assurance?  ● How synergies are being developed ● What is the future outlook of Business Assurance? Contents
  4. 4. Primary Goal of  Business is Maximizing Profits 4 How to achieve? ● Revenue Growth – Marketing & Sales Continued spending  with unsure earnings ● Cost cutting or controls  Possible reduced performance  ● Capex reduction Affected QoS for Internal and External Customers  Supplemented By ● Revenue Assurance – (An integral measure) Little spending – Additional Revenue
  5. 5. Complexity of Network Demands Robust Assurance   5
  6. 6. Revenue Losses  6 ● Juniper research  in 2011 ‐ The loss at $58b  (6%)  ● KPMG Survey 2009,  ‐ Network, Business and Fraud
  7. 7. Revenue Assurance is All about Validations Data  Capturing • Network  Elements • IT systems • Billing Systems • Data ware house Data  Processing • Filtering  • Rating  • Billing  Reporting • Revenue   • Collections • Discounts • Others 7 Product Management Traffic Assurance Subscription Assurance Rating and Charging Accuracy Receivable Management
  8. 8. But is it Enough? 8 What about? ● Cost leakage/wastage and revenue loss because of ‐ Unauthorized access ‐ Continued configuration mistakes ‐ Customer dissatisfaction/Churn ● Opportunity loss ● Regulatory risks And many others……..
  9. 9. Organization Behavior ‐ Certain Facts 9 ● The CEO may not be ware of true results as operations  departments tend to cover up: ‐ The inefficiencies ‐ The Underperformance ‐ The mistakes ● The HODs may not be presented true state of affairs of  their own functions ● Different/conflicting results by various departments
  10. 10. 10 Convergence Is  Taking Place
  11. 11. The Businesses Needs 11 Independent function other than core business operations ● which is able to challenge and respond to  observations in core business operations with ‐ Impartiality ‐ with no undue influence from other ● Which is empowered and recognized at “C” Level ● Which has in place necessary: Data  Access Tools Skills Prevention Detection Correction Investigation Framework
  12. 12. Data Access Available with Revenue Assurance 12 MSC IN HXC MediationBillingIN SDP HLR VOMS EVC Interconnect OMT TAP In Tapout CRM Point of Sale Credit & Collection GL Bank  Reconciliation  System Tariff  Management  System Numbering  Management  System Scratch Card  Inventory  Management GGSN/SGGN MMSCSMSC IN CCN IN AIR CDR/Transactions Logs
  13. 13. The First Step Towards Convergence 13 Revenue  Assurance CFO Fraud  Management Network  Fraud ● Technical Fraud ● Usage Fraud ● Subscription/ Payment  Fraud ● Prepaid Fraud ● Business Fraud CC/??? Board/CEO Corporate Fraud ● Procurement Fraud ● Cash Embezzlement ● Accounting Fraud ● Assets misappropriation Internal Audit
  14. 14. The First Step towards Convergence 14 Business  Assurance Revenue  Assurance Fraud  Management Network  Fraud ● Technical Fraud ● Usage Fraud ● Subscription/Payment Fraud ● Prepaid Fraud ● Business Fraud Corporate Fraud ● Procurement Fraud ● Cash Embezzlement ● Accounting Fraud ● Assets misappropriation
  15. 15. Business Assurance Coverage Systems and Data  Integrity Revenue Assurance Sales Access Management Fraud Management Cost & Margin  Assurance Partners  Management Customer Services Receivable  Management Marketing Service Quality  Regulatory  Compliance and More …………
  16. 16. Marketing, Sales and Customers Services 16 Products Profitability and Viability Sales Quality and Credit Rating  Distribution Channels credit rating and  Receivables Monitoring  Opportunity Loss ‐ Reducing Complaints Churn Managing  Credits, Waivers, Bad debts 
  17. 17. Systems, Data and Reporting    17 Systems Integrity and  availability System Security Systems acquisition  and business needs  Data Integrity,  Accuracy and  completeness Business Rules,   Definitions  Standardization Communication and  Reporting Flow
  18. 18. Cost Assurance   18 ● Commissions ● Credits and Waivers ● Official Phone and Test SIMs ● Utilization of services/Sources ‐ Leased circuits ‐ Co‐location facilities ‐ Cell sites
  19. 19. Margin Assurance & Opportunity Loss   19 Margin Assurance ● Retail Rates vs Partners cost ‐ off‐net cost ‐ IDD Cost ‐ IR cost ● Sales margins (Customer acquisition cost) ● Cells site cost vs revenue ● Exchange rate effect Opportunity Loss ● Cell site availability ● Suspended customers ● Quality of Service
  20. 20. Business Assurance Future Positioning 20 Chief Business Assurance  Officer Chief Executive Officer Fraud  Management Partner  Management Cost and Margin  Assurance Systems, Data and  Reporting Assurance Revenue  Assurance Marketing, Sales and  Customer Services  Assurance Quality of Service  Assurance  Regulatory  Compliance
  21. 21. 21 Ahmad Nadeem Syed ansyed56@gmail.comAhmad Nadeem Syed