Carina Bark

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Carina Bark

  1. 1. Revenue Assurance Swedtel AB www.swedtel.com carina.bark@swedtel.com 58018-02-0025-3 Revenue Assurance 2009-08-14 Restricted. SWEDTEL AB 1 carina.bark@swedtel.com
  2. 2. Revenue Assurance RA Background and Scope of Problem 58018-02-0025-3 Revenue Assurance 2009-08-14 Restricted. SWEDTEL AB 2 carina.bark@swedtel.com
  3. 3. How big a problem? World wide Latin America • Leakages are estimated at an • >23% average of 5-14% of total revenues • Example: • 10 Operator revenue 10 MUSD MUSD • Between 0,5 and 1,4 MUSD • 2,3 is lost MUSD lost Source: Billing Magazine, March 2001 (The Philips Group) Source: SWT 58018-02-0025-3 Revenue Assurance 2009-08-14 Restricted. SWEDTEL AB 3 carina.bark@swedtel.com
  4. 4. Why do it? - today’s operator situation Nearly half of revenue leakage is network related Debt write-off 16% Technical & CDR errors 45% Fraud 14% Rating errors 10% Incomplete Customer Records 15% Source: Billing Magazine, March 2001 (The Philips Group) 2,3 MUSD lost: • NW: 1 MUSD • Info: 0,5 MUSD 58018-02-0025-3 Revenue Assurance 2009-08-14 • Restricted. SWEDTEL AB MUSD F/BD: 0,8 4 carina.bark@swedtel.com
  5. 5. Surveys: Awareness? World wide Latin America • 49% of companies have a • < 10% designated Revenue Assurance program • 84% believe revenue leakage is • ?? % at least 5%. • 16% of executive managers • ?? % believe revenue loss is between 10 and 15% Source: PWC Source: SWT 58018-02-0025-3 Revenue Assurance 2009-08-14 Restricted. SWEDTEL AB 5 carina.bark@swedtel.com
  6. 6. Swedtel Operator view Methodology 58018-02-0025-3 Revenue Assurance 2009-08-14 Restricted. SWEDTEL AB 6 carina.bark@swedtel.com
  7. 7. Operator Production Process Order Image SalesCustomer Customer Service Provider MI Prod Dev & Com & Dist Care Billing Demand Functionality Ticket Bill NW Plan Tech. Design Fault CDR Infrastructure (NW) NW Planning NW / Operator NW Development Admin Instalation / Activation Correction NW Operation & Maintenance Corporate Development Support IT processes HR Finance Legal Administration 58018-02-0025-3 Revenue Assurance 2009-08-14 Restricted. SWEDTEL AB 7 carina.bark@swedtel.com
  8. 8. Revenue Assurance RA Definition and Swedtel RA Concept 58018-02-0025-3 Revenue Assurance 2009-08-14 Restricted. SWEDTEL AB 10 carina.bark@swedtel.com
  9. 9. Creating balance Revenue Assurance: Minimize difference between usage value and value of collected revenue Usage value Revenue 58018-02-0025-3 Revenue Assurance 2009-08-14 Restricted. SWEDTEL AB 11 carina.bark@swedtel.com
  10. 10. Methodology General procedure • Identify the gap • Identify causes • Identify remedies • Prioritize (ROI) • Plug found holes Usage • Ensure it doesn’t value Revenue happen again…? 58018-02-0025-3 Revenue Assurance 2009-08-14 Restricted. SWEDTEL AB 12 carina.bark@swedtel.com
  11. 11. Identify the gap - comparing what? Value Choose points of comparison BP Pot. according to Gap company maturity! Q. Pot. Gap Used Traditional Gap Revenue Billed Assurance Gap Collected M Intel CC Invoicing M&S Collection ProdDev NW (O&M) NW (O&M) NW (I&A) NW (P&D) 58018-02-0025-3 Revenue Assurance 2009-08-14 Restricted. SWEDTEL AB 13 carina.bark@swedtel.com
  12. 12. Identify causes - to whom? Process Value orientation BP Pot. - identifying Gap successive Q. Pot. causes! Gap Used Gap Billed Gap Collected M Intel CC Invoicing M&S Collection ProdDev NW (O&M) NW (O&M) NW (I&A) NW (P&D) 58018-02-0025-3 Revenue Assurance 2009-08-14 Restricted. SWEDTEL AB 14 carina.bark@swedtel.com
  13. 13. Identify remedies - doing what? Process Value MI CC Billing ProdDev M&S NW (O&M) orientation NW (O&M) Collection BP Pot. NW (I&A) NW (P&D) - identifying Gap successive Q. Pot. causes! Remedying erroneous / insufficient / incompatible: Gap Used NW HW/SW Bank system Technology IT Systems (interface) Gap Billed NW Q Ass. Customer Procedure Gap Bill distribution payment proc. Collected M Intel RA focus Customer pay- Culture M&SLearning org Billing CC ProdDev willingness NW (I&A) NW (O&M) NW (O&M) Collection NW (P&D) Internal External 58018-02-0025-3 Revenue Assurance 2009-08-14 Restricted. SWEDTEL AB 15 carina.bark@swedtel.com
  14. 14. Prioritize (ROI) - according to what? • Revenue gained if solving problem • Cost (investment) for remedy • Time to solution (T, P, C) • Break even • ROI - … and don’t forget the initial investment for detecting the problems…. ID Leakage W h e re W ho TPC S o lu tio n Revenue S o lu tio n S o lu tio n B -E ROI P rio (p ro c e s s ) (u n it) a c tio n to g a in cost tim e tim e % tim e 1 X xxxx N etwork P & D E n g in eerin g T 2 P 3 C 4 5 6 The revenue assurance process should pay for itself! 58018-02-0025-3 Revenue Assurance 2009-08-14 Restricted. SWEDTEL AB 16 carina.bark@swedtel.com
  15. 15. How to do it? - overview MI CC Invoicing M&S Collection ProdDev NW (O&M) NW (O&M) NW (I&A) NW (P&D) • Introduce multiple measurement points • Compare data RA system • Analyze losses • Remedy leakage (T, P, C) 58018-02-0025-3 Revenue Assurance 2009-08-14 Restricted. SWEDTEL AB 17 carina.bark@swedtel.com
  16. 16. What steps can be taken today? - Conclusions 58018-02-0025-3 Revenue Assurance 2009-08-14 Restricted. SWEDTEL AB 18 carina.bark@swedtel.com
  17. 17. Revenue Assurance is NOT • A new phenomenon • An approach by bits and pieces - Network assurance - Quality assurance in billing - … • An IT system - A multitude of providers will tell you the system solves it all • A theoretical audit activity - An absolute necessity to work within the organization • Revenue assurance is an integral and integrated concept - Combined knowledge & real operator experience - Quantifying /visualizing the total (Board, auditors) 58018-02-0025-3 Revenue Assurance 2009-08-14 Restricted. SWEDTEL AB 19 carina.bark@swedtel.com
  18. 18. Short term perspective - quick hits • Quick analysis of leakage • Quick remedies - Technology remedies e.g., Network inventory & update • Generate revenue for the necessary long terms investments! • The revenue assurance process should pay for itself! 58018-02-0025-3 Revenue Assurance 2009-08-14 Restricted. SWEDTEL AB 20 carina.bark@swedtel.com
  19. 19. Conclusions • Back to the example: Revenue 10 MUSD Lost: >2,3 MUSD • The RA project should pay for itself • Should be within top 5 company priorities! - Compare to developing new services! • Define the required level (2-8 months): - Do it alone: 10% recovered (230000 USD) - With support: 80% recovered (~2 MUSD) $ External support Operator alone Time gain! Time • The perfect participation job! 58018-02-0025-3 Revenue Assurance 2009-08-14 Restricted. SWEDTEL AB 21 carina.bark@swedtel.com
  20. 20. Track record Estonia, • Vast World-wide experience Fixed Network Latvia, Paging & Fixed Network Ireland, Fixed & Mobile - Operational knowledge since 1853 Lithuania, fixed & Mobile network Poland, Fixed - 30 years’ experience of international Network Saudi Arabia, Fixed Network India, Mobile & Paging Thailand Nicaragua Slovenia, GSM Fixed Network telecoms Fixed & Mobile Nigeria Fixed & Mobile - 500 completed projects in more than Colombia, Fixed Network Saudi Philippines Uganda, GSM Arabia, ISP Fixed Network 100 countries Ecuador, Mobile Sri Lanka, WLL Network Access Network - Fixed, mobile and IP Namibia, GSM Brazil, Botswana, WLL Carrier Brazil, Access Network D-AMPS Ongoing projects Where Swedtel has been active 58018-02-0025-3 Revenue Assurance 2009-08-14 Restricted. SWEDTEL AB 22 carina.bark@swedtel.com
  21. 21. Muchisimas Gracias! www.swedtel.com 58018-02-0025-3 Revenue Assurance 2009-08-14 Restricted. SWEDTEL AB 23 carina.bark@swedtel.com

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