Benchmarking business metrics_scaffold_rel_6_0_v6-1

TM Forum 2010
Business Benchmarking
Metrics Scaffold
Release 6.0
GB935
Version 6.1
August, 2010

Business Benchmarking Metrics Scaffold
GB935, Version 6.1 © TM Forum 2010 Page 2 of 25
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Table of Contents
Notice...................................................................................................................................................................2
Table of Contents ..............................................................................................................................................3
Executive Summary..........................................................................................................................................4
1. Introduction....................................................................................................................................................5
1.1. Document Overview............................................................................................................................5
1.2. Industry Benefit....................................................................................................................................5
1.3. Document Structure ............................................................................................................................5
2. Business Metrics: Background...................................................................................................................6
2.1. Basic Structure of the Business Metrics.............................................................................................6
2.1.1. The Revenue and Margin Domain.............................................................................................7
2.1.2. The Customer Experience Domain............................................................................................7
2.1.3. The Operational Efficiency Domain............................................................................................8
3. Business Metrics: Descriptions..................................................................................................................9
3.1. General Metrics ................................................................................................................................ 11
3.1.1. General – Revenue and Margin Metrics................................................................................. 11
3.2. Customer Management Metrics...................................................................................................... 12
3.2.1. Customer Management – Customer Experience Metrics...................................................... 12
3.2.2. Customer Management – Operational Efficiency Metrics...................................................... 13
3.3. Fulfillment Metrics............................................................................................................................. 13
3.3.1. Fulfillment – Customer Experience Metrics ............................................................................ 13
3.3.2. Fulfillment – Operational Efficiency Metrics............................................................................ 14
3.4. Assurance Metrics............................................................................................................................ 15
3.4.1. Assurance – Customer Experience Metrics ........................................................................... 15
3.4.2. Assurance – Operational Efficiency Metrics ........................................................................... 16
3.5. Billing Metrics.................................................................................................................................... 17
3.5.1. Billing – Customer Experience Metrics ................................................................................... 17
3.5.2. Billing – Operational Efficiency Metrics ................................................................................... 18
4. Appendix A: Related Documents ............................................................................................................ 21
5. Appendix B: Terms and Abbreviations Used within this Document................................................. 22
6. Appendix C: Administrative Information................................................................................................ 24
6.1. About this Document........................................................................................................................ 24
6.2. Document History............................................................................................................................. 24
6.2.1. Version History ......................................................................................................................... 24
6.2.2. Release History ........................................................................................................................ 25

Executive Summary
Service providers are striving to achieve business excellence and are
increasingly looking to the TM Forum for guidance and understanding: What
does business excellence mean? How far away from business excellence are
we? What initiatives should we develop in order to obtain the benefits of
achieving business excellence?
For these purposes the industry requires quantitative as well as qualitative
information to support its evolution in the increasingly complex market that is
developing. Service providers need measures that will focus attention on
aspects of their operation and areas of their business where improvement will
bring the most benefit. They also need a way to compare themselves with their
peers and to promote areas in which they are able to offer uniquely superior
performance.
The TM Forum is addressing this situation with the Business Metrics
Development Program. The objective of this team is to create a set of business
metrics aimed specifically at business performance at the service level. These
are living metrics developed and maintained by a project team and will evolve
over time to continually reflect the interests of the service provider community.
This is a real example of work done for the industry by the industry.
Further information on the measures and the benchmarking data associated
with them is provided in other output from this team and TM Forum (see
www.tmforum.org or write to benchmark@tmforum.org for more information).

1. Introduction
1.1. Document Overview
This document provides an overview of the business metrics that have been developed in
collaboration with service providers through the Business Metrics Development Program.
This document also explains at a high level what each of the 90 currently identified business
metrics address. Additional information concerning each metric and its corresponding
benchmarking data is available by contacting the Business Metrics Development team
(benchmark@tmforum.org), and/or subscribing to its reports and services.
1.2. IndustryBenefit
The business metrics are designed to deliver benefits to service providers as well as to the
service provider vendor community. These benefits include:
• Access to relevant benchmarking data, that are:
o Service offering focused
o Assessed against relevant peers
• Ability to develop investment business cases based on achievable targets to support
improvement initiatives
• Awareness of areas of strength
• Means to analyze the inter-relationship between metrics
• Access to industry trends.
The benefits will be attained on the basis of analyzed and raw benchmarking data that will be
available in two forms:
• Benchmarking Study Summary Reports
• A secure current database that can be queried – the Business Benchmarking Secure
Web-Portal.
1.3. Document Structure
This document is structured around a set of defined business metrics (see section Business
Metrics: Descriptions). These are grouped in sections by process focus (general metrics,
customer management metrics, etc).
To introduce these, the document provides some background on business metrics concept
and structure (see section Business Metrics: Background). A general overview and
statement of industry benefits is also provided as part of this Introduction section.
Terminology used in the document is provided in Appendix A.

2. Business Metrics: Background
The business metrics that have been developed within the Business Metrics Development
Program represent areas of business operation that are important in assessing business
performance, customer satisfaction/loyalty and efficiency. While the concepts that have been
used, and the metrics themselves, are described in this document, more detailed definition
information is available to TM Forum members by contacting the Business Metrics
Development team (benchmark@tmforum.org).
2.1. Basic Structure of the Business Metrics
In order to provide a holistic business-oriented benchmarking facility, the business metrics
scaffold is based on a balanced scorecard approach. To this end, three major domains
• Revenue and Margin: providing a view of fiscal performance
have
been defined:
• Customer Experience: providing a view of the measures that impact the end-
customer’s reaction to the service offering, and thus drive loyalty
• Operational Efficiency: providing a view of cost and expense drivers
Figure 1: Structure of the Business Metrics - Domains

Under each of these domains, a set of topics has been defined to drive the development of
specific metrics. The following illustration presents the topics under each domain and is
followed by an explanation of the different topics:
Figure 2: Structure of Business Metrics – Topics
2.1.1. The Revenue and Margin Domain
• Ratio of Margin to Revenue: service offering profitability
• Ratio of Operating Expenses to Capital Expenditures
• Ratio of Operating Expenses to Revenue
2.1.2. The Customer Experience Domain
• Preferred Access: what are the channels and touch points available to customers,
such as: real person, web and store
• Customer Time Spent: amount of time spent on process or activity that impacts the
customer, such as length of time system could not be used as opposed to fault repair
time
• Usability: how easy to set up, usefulness of documentation, etc
• Accuracy: level of accuracy
• Availability: service availability
• Security: (future work item)
• Pricing Flexibility: preferred pricing mode available, such as prepaid card, flat rate,
by usage (future work item)

2.1.3. The Operational Efficiency Domain
• Unit Cost: direct process costs
• Time: total process time. This includes waiting time, wrap up time, elapsed process
time
• Defects: amount of errors and rework
• Simplicity: lack of complexity (future work item)
• Process Flexibility & Automation: Ability to accommodate change and speed of
change (future work item)
• Utilization: efficiency of workforce and resources use.
These are applied in the context of a set of business processes. The set of process focus
areas (or just “processes”) encompassed in this framework includes:
• Customer Management (Call Center portion of CRM)
• Fulfillment
• Assurance
• Billing
The decomposition of domains according to process is applied to Customer Experience and
Operational Efficiency. Revenue and Margin maintains an overall, general view of the service
offering, and is not broken down further.
Metrics have been defined for combinations of domain, process focus and topic. The
resultant high-level scaffold is described further in “The Business Metrics Scaffold”.
In some cases, it has been appropriate to position the metrics with a lower level of granularity.
For this purpose, modifying details have been defined for certain metrics. An example of
modifying detail is addressing specific customer segments, i.e. Consumer & SME vs. Large
Enterprise & Government. Appendix A contains some of the modifying details (“possible
options”) that are available for selected metrics.

3. Business Metrics: Descriptions
Basic Metrics Structure
The following descriptions provide a brief overview of each metric. The metrics are grouped
into the key domains described earlier:
• Revenue and Margin (RM)
• Customer Experience (CE)
• Operational Efficiency (OE)
Within the domain, there can be one or more Process Focus areas, giving rise to the specific
metrics that have been identified as relevant for that domain and process focus, such as:
• General metrics (G)
• Customer Management metrics (CM)
• Fulfillment metrics (F)
• Assurance metrics (A)
• Billing Metrics (B)
Note that each metric has a unique code built using the parent process focus and domain
abbreviation. For example, CM-CE-5 designates a metric in the Customer Management
process focus of the Customer Experience domain. The final number/code (i.e. “5” in CM-CE-
5) maps to topics within the domain/process focus to assist understanding of the purpose of
the metric. A final letter (a, b, c, etc) is used where there are several metrics within the
specific Domain / Process Focus / topic concerned. For example, CM-OE-1a is a separate
metric from CM-OE1b, but both relate to Unit Cost in the Customer Management Process
within the Operational Efficiency Domain.

Figure 3 below illustrates this with another example: F-CE-2a (Mean Duration to Fulfill
Service Order).
Figure 3: Example of how coding is used for the business metrics
Here, F indicates the Fulfillment Process Focus, CE indicates the Customer Experience
Domain, and 2 indicates that this is the second topic identified (which in fact relates to
Customer Time Spent). The "a" then indicates that this metric is one of several “Customer
Time Spent” oriented Metrics in Fulfillment - Customer Experience.
Expanded Metrics Structure
A process for expanding metrics has been created to facilitate this work and assure
alignment with the main business performance metrics developed by the Business Metrics
Development team. To accommodate increased detail, these expanded metrics have
additional characters in their metric IDs. For example, the Revenue Assurance metrics link to
the main business performance metrics via the Revenue and Margin Domain and the
General Process Focus. This means that all RA metrics start with G-RM.
Secondly, to be understandable, expanded metrics need to have a topic identifier that is
easily recognizable. Thus for Revenue Assurance metrics for example, “RA” is used instead
of a topic identifier of like “6”. Similarly, the expanded metrics have a topic separation
themselves. These are expressed as sub-topics and are indicated with alpha sub-topic
identifiers. In the case of the Revenue Assurance, sub-topics include DQ (Data Quality), RL
(Revenue Leakage), and PE (Process Efficiency).
Finally, the individual metrics are designated by lower-case alpha characters after the sub-
topic, similar to the designations in the main metrics set. Therefore, an example Revenue
Assurance metric would be G-RM-RA-DQa. Since this can be cumbersome, it is permitted to
call the metric simply RA-DQa, with the G-RM- implied. When using the metric outside the
specific RA context, the full metric ID should be used to avoid confusion.

3.1. General Metrics
3.1.1. General – Revenue and Margin Metrics
• G-RM-1: Profitability
This measures Service Offering profitability by quantifying operating income against
operating revenue (OBIDA).
• G-RM-1b: ARPU
This measures Service Offering profitability by quantifying average revenue per user
(ARPU).
• G-RM-2: OpEx/CapEx
This measures Service Offering cost efficiency by assessing Service Offering OpEx
relative to CapEx.
• G-RM-3: OpEx/Revenue
This measures Service Offering cost effectiveness by assessing Service Offering OpEx
relative to operating revenue.
• G-RM-4: Revenue Breakdown Between Bearer Service and Applications
This measures Service Offering revenue distribution between bearer service and
applications.
• G-RM-5a: Customers Acquired
This measures Service Offering revenue efficiency by assessing the number of new
customers acquired against total number of customers for a Service Offering.
• G-RM-5b: Customers Lost
This measures Service Offering revenue efficiency by assessing the number of Service
Offering customers lost against total number of customers for that Service Offering.
• G-RM-RA-RLb: % Revenue That Could Not Be Billed
This measures Service Offering revenue efficiency by assessing the unbilled/under-billed
revenue relative to the total Service Offering revenue.
• G-RM-RA-RLg: Cost Of Stranded Assets
This measures Service Offering revenue efficiency by assessing the quarterly Total cost of
stranded and unused assets.
• G-RM-RA-RLh: % Settlement Reports Accepted
This measures Service Offering revenue efficiency by assessing the quarterly verified and
accepted 3rd party settlement reports relative to the total settlement reports.
• G-RM-RA-PEa: % Recovered Revenue Value
This measures revenue assurance control efficiency by assessing the recovered value
relative to the total operating revenue.
• G-RM-RA-PEc: % Recoverable Revenue Value
This measures revenue assurance control efficiency by assessing the value that is
discovered and recoverable relative to the total operating revenue.

• G-RM-RA-PEf: % xDRs Successfully Recovered and Billed After
Recycling
This measures revenue assurance revenue leakage by assessing the number of xDRs
successfully recovered and billed after recycling relative to the total number of xDRs.
• G-RM-RA-PEg: % Recovered and Recoverable Revenue
This measures revenue assurance control efficiency by assessing the value that is
recovered, discovered and recoverable relative to the total operating revenue.
• G-RM-RA-DQa: % Data Validated
This measures revenue assurance data quality by assessing the number of validated data
records relative to the total number of data records.
• G-RM-RA-DQb: % Customers Reconciled
This measures revenue assurance data quality by assessing the number of customers
reconciled relative to the total number of customers.
3.2. Customer Management Metrics
3.2.1. Customer Management – Customer Experience Metrics
• CM-CE-1: Distribution Of Contact Handling Across Channels
This measures customer preference in interaction channel by assessing the customer s
channel distribution relative to total contacts.
• CM-CE-2a: Mean Customer Call Waiting Time
This measures customer experience of promptness in receiving service by assessing the
mean customer call wait time. The measured duration extends from the point when the
customer enters a request to the point where a response/ acknowledgement is provided.
• CM-CE-2b: Elapsed Time To Complete Handling Customer Request
This measures customer experience of effectiveness by assessing mean customer
duration in request fulfillment. The measured duration extends from the point when the
customer makes a request to the point where the customer accepts that their request has
been satisfactorily completed.
• CM-CE-2c: % First Call Resolution
This measures customer experience of effectiveness in first call resolution by assessing
the percentage of customer problems that are resolved on the first call relative to the total
number of customer contacts.
• CM-CE-3a: Volume Of Customer Requests
This measures customer experience of effectiveness by assessing the number of
customer requests relative to the total number of customers.
• CM-CE-3b: Distribution Of Customer Requests
This measures customer experience of effectiveness by assessing the distribution of topic
requests (complaint, inquiry and change) relative to the total number of requests.

• CM-CE-5: % Calls Abandoned
This measures customer experience of effectiveness in receiving service by assessing
customer contacts abandoned while awaiting service relative to overall number of
contacts.
3.2.2. Customer Management – Operational Efficiency Metrics
• CM-OE-1a: Cost Of Customer Management Process
This measures revenue efficiency of customer management by assessing the cost of
Service Offering customer management relative to Service Offering Operating Revenue.
• CM-OE-1b: Customer Management Process Cost As % OpEx
This measures cost efficiency of customer management by assessing the cost of Service
Offering customer management relative to Service Offering operating cost.
• CM-OE-1f: Unit Cost Of Customer Management
This measures the cost effectiveness of customer management by assessing the
customer management cost per service offering unit. The metric is calculated from the
total cost of Service Offering customer management as a function of the number of
customer transactions of a Service Offering.
3.3. Fulfillment Metrics
3.3.1. Fulfillment – Customer Experience Metrics
• F-CE-2a: Mean Duration To Fulfill Service Order
This measures customer experience of promptness in fulfilling an order by comparing the
aggregate time from order placement to customer acceptance to the total number of
accepted customer orders. The measured duration extends from the point when the
customer places a confirmed order to the point where the customer accepts that their
order has been satisfactorily filled.
• F-CE-2b: Mean Time Difference Between Customer Requested Delivery
Date and Planned Date
This measures customer experience of promptness in fulfilling an order by assessing the
measured gap/duration between the Customer Required Date (CRD) and the Customer
Committed Date (CCD).
• F-CE-2c: % Orders Delivered By Committed Date
This measures customer experience of effectiveness in fulfilling an order by assessing the
number of service deliveries or activations by the committed date (CCD) relative to overall
service deliveries or activations.
• F-CE-3: % Service Usability Queries
This measures customer experience of usability in fulfilling an order by assessing the
number of customer usability inquiries relative to overall number of installations.
• F-CE-4: % Of Service Activation Failures
This measures customer experience of effectiveness in fulfilling an order by assessing the
number of installations that fail due to technical issues relative to overall number of
installations.

3.3.2. Fulfillment – Operational Efficiency Metrics
• F-OE-1a: Cost Of Fulfillment Process
This measures cost effectiveness of fulfilling an order by assessing the mean cost of
fulfillment per installation relative to mean revenue generated.
• F-OE-1b: Cost Of Selling By Channel
This measures cost effectiveness of selling an order by assessing the mean cost of selling
per installation relative to mean revenue generated.
• F-OE-1c: Fulfillment Process Cost As % OpEx
This measures cost effectiveness of fulfilling an order by assessing the total cost of
fulfillment relative to overall OpEx.
• F-OE-1d: Revenue By Channel
This measures revenue distribution across channels by comparing Service Offering
Revenue by channel type against total Service Offering Revenue.
• F-OE-1e: Contribution By Channel
This measures the effectiveness of Service Offering channels by comparing Service
Offering Revenue by channel type against total Service Offering channel cost.
• F-OE-1f: Unit Cost Of Fulfillment
This measures cost efficiency of fulfilling an order by assessing the cost of the fulfillment
process from order to activation relative to the number of installations.
• F-OE-2a: Mean Time Order To Activation
This measures effectiveness of the fulfillment process by measuring the mean time from
order to activation for the core fulfillment process.. The measured duration extends from
the point when the customer places a confirmed order to the point where the customer
accepts that their order has been satisfactorily filled.
• F-OE-2b: Order To Activation Time By Major Process
This measures time effectiveness of the fulfillment process by assessing the time from
order to activation (Fulfillment Meta Process Blocks 2-5). The measured duration extends
from the point when the customer places a confirmed order to the point where the
customer accepts that their order has been satisfactorily filled, separated by stage of
processing involved.
• F-OE-3a: % Orders Requiring Rework By Cause Type
This measures operational effectiveness of the fulfillment process, and opportunities for
savings, waste elimination, etc., by assessing the number of Service Offering orders
requiring rework relative to the total number of Service Offering orders.
• F-OE-3b: Mean Time To Handle Defects Or Rework From Order To
Customer Acceptance
This measures operational effectiveness of the fulfillment process, and opportunities for
savings, waste elimination, etc. by assessing the mean time to handle defects or rework
within the fulfillment process by aggregating the elapsed time to handle defects or rework
relative to the total number of defects or rework in the Fulfillment process from Order to
Activation.

• F-OE-3c: % Orders Requiring Rework
This measures operational efficiency of the fulfillment process, and opportunities for
savings, waste elimination, etc. by assessing the number of orders requiring rework from
order to activation relative to the total number of orders.
• F-OE-6: % SO Investment For Future Infrastructure
This measures the operational effectiveness of the fulfillment process by assessing the
relative cost of infrastructure build costs for the Service Offering relative to its overall
revenue. The measured cost includes OpEx costs and the appropriate allocation of CapEx
costs within the Service Offering business.
3.4.Assurance Metrics
3.4.1. Assurance – Customer Experience Metrics
• A-CE-2a: Incident Resolution Time
This measures customer experience of promptness in resolving faults or other incidents
that impact on an agreed provided service by comparing the aggregate time for resolving
incidents with the total number of incidents that have been resolved. The measured
duration extends from the point when the incident is reported to the point when the
customer accepts that the incident has been satisfactorily dealt with, and normal service
restored.
• A-CE-2b: Mean Time To Resolve Customer Incidents
This measures customer experience of effectiveness in resolving faults or other incidents
that impact on an agreed provided service by measuring the mean time for resolving
incidents. The measured duration extends from customer contact through to informing the
customer of resolution.
• A-CE-2c: % Of Problems Resolved By Due Date
This measures customer experience of effectiveness in resolving faults or other incidents
that impact on an agreed provided service by comparing the number of problems resolved
to customer satisfaction by the committed date to the total number of problems occurring
during the reporting period.
• A-CE-4a: % Of Incidents That Are Reported More Than Once By the
Customer
This measures customer experience of effectiveness of the Assurance Process by
assessing the percent of incidents that are reported more than once by the customer
relative to the total number of customer reported incidents.
• A-CE-4b: % Of Customers With SLA
This measures customer experience of effectiveness of the Assurance process by
assessing the ratio of customers with Service Level Agreements (SLAs), relative to the
total number of customers.
• A-CE-4c: Percentage Of Problems Reported By Customers
This measures customer experience perception of effectiveness of the Assurance process
by assessing the ratio of customer reported problems, relative to the total number of
problems reported.

• A-CE-5: Availability Of Service To Customer
This measures customer experience of service availability by assessing the actual time
service is available to Customers by subtracting the Service Outage time from the Service
contracted to be live for customers during period (such as provisioned Channels, trunks,
etc). The Service Outage time is defined by the sum of outage time, including outages due
to maintenance activities (OA&M) as well as faults. The result is given as a percentage by
dividing the difference by the Total Contracted Service Time.
• A-CE-6a: % Of SLA Violations
This is an indirect measure of customer experience perception of service quality by
assessing the number of SLA violations relative to the total number of SLAs.
• A-CE-6b: % Problems That Are Dealt With In SLA Time Requirements
This measures the customer experience of effectiveness of the Assurance process by
assessing the proportion of problems dealt with in a timely manner according to SLA
definition relative to the total number of problems reported.
3.4.2. Assurance – Operational Efficiency Metrics
• A-OE-1a: % Cost Of Assurance Process
This measures the cost efficiency of the Assurance process by assessing the relative cost
of assurance activity for the Service Offering against its overall revenue. The measured
cost includes direct assurance costs and the appropriate allocation of other, or general,
costs related to assurance within the Service Offering business. The measured revenue is
after discounts.
• A-OE-1b: Assurance Process Cost As % OpEx
This measures the cost efficiency of the Assurance process by assessing the relative cost
of assurance for the Service Offering against its OpEx. The measured cost of Service
Offering assurance includes direct assurance costs and the appropriate allocation of other,
or general, costs related to assurance within the Service Offering business.
• A-OE-1c: Cost Of SLAs
This measures the cost efficiency of the SLA process for the Service Offering, by
assessing the relative cost of SLA-related activity for the Service Offering against its
overall revenue. The measured cost includes direct assurance costs and the appropriate
allocation of other, or general, costs related to assurance within the Service Offering
business. The measured revenue is after discounts.
• A-OE-1f: Unit Cost Of Assurance
This measures cost efficiency of the Assurance process by assessing the total cost of the
Assurance process relative to the total number of repairs.
• A-OE-2a: Service Problem Resolution Time
This measures the time efficiency of the SLA process for the Service Offering, by
assessing the aggregate time to resolve Service Offering service problems relative to the
number of closed problem reports.
• A-OE-2b: Mean Time To Resolve Service Problems
This measures the time efficiency of the SLA process for the Service Offering, by
assessing the average time to resolve Service Offering service problems. The measured
duration extends from opening to closing Trouble Tickets for the Service Offering, relative
to the total number of Trouble Tickets.

• A-OE-3a: % Problems By Cause Type
This measures the distribution of Assurance problems across cause types by assessing
the number of problem reports by type, relative to the total number of problem reports.
• A-OE-3b: % Maintenance Time Used For Repair
This measures the effectiveness of the Assurance process by assessing the mean repair
time, relative to the total assurance time (i.e. maintenance and repair).
• A-OE-3c: Mean Time Between Failures
This measures the operational effectiveness of the Assurance process by assessing the
mean time between failures. This metric is measured over a period as the ratio of the
Mean time between repairs and the number of trouble tickets closed over the period. The
mean time between repairs considers the revenue system size (such as live ports) without
taking into account the service outage time (calculated as the MTTR for the period for all
the trouble tickets over the period).
• A-OE-6a: NOC FTE Efficiency
This is a measure of operational effectiveness of the NOC problem resolution process by
measuring problems resolved relative to the number of NOC FTE's assigned to problem
resolution.
3.5. Billing Metrics
3.5.1. Billing – Customer Experience Metrics
• B-CE-1a: Distribution Of Bills By Delivery Method
This measures customer experience of preferred access to billing information by
assessing the number of bills delivered by media/method relative to the total number of
bills.
• B-CE-1b: % Payment Transaction By Payment Method
This measures customer experience of preferred bill-payment transactions by assessing
the number of bills delivered by media/method relative to the total number of bills.
• B-CE-1c: % e-Bills Issued
This is an indirect measure of customer experience comfort in the uptake of electronically
delivered bills relative to the total number of bills issued.
• B-CE-1d: % e-Payments Received
This is an indirect measure of customer experience comfort in the uptake of electronically
paid bills relative to the total number of bills issued.
• B-CE-2a: Mean Transaction Posting Time
This measures customer experience of timeliness of billing/rating information availability to
the customers by determining the average duration from the end of an event to when it is
available to the customer.
• B-CE-4a: % Of Bill Originating From Previous Cycle
This measures customer experience of promptness/accuracy in received billing
information by assessing amount of charges from previous billing cycle relative to the total
amount charged for the current billing cycle.

• B-CE-4b: Mean Time To Prepare and Dispatch Bills
This measures customer experience of promptness in received billing information by
measuring the duration from the bill cycle closing date to date of bill dispatch.
• B-CE-4c: % Bills Inaccurate
This measures customer experience of accuracy in received billing information by
assessing the number of bills with errors relative to the total number of bills.
• B-CE-4d: % Bills Adjusted
This measures customer perception of accuracy in received billing information by
assessing the average number of bills adjusted.
• B-CE-4e: % Billing Contacts
This is an indirect measure of customer perception of the accuracy and readability of bills
issued.
• B-CE-4f: % Bills Adjusted Internally
This is an indirect measure of the customer confidence in billing process accuracy as a
result of error reduction.
3.5.2. Billing – Operational Efficiency Metrics
• B-OE-1a: Cost Of Billing
This measures the cost efficiency of the billing process by assessing the cost of billing the
customer relative to the billed revenue.
• B-OE-1b: % Bills Requiring Manual Intervention
This measures operational efficiency of the billing process by assessing the number of
bills requiring manual intervention relative to the total number of bills.
• B-OE-1c: % Cost Of Collections
This measures cost efficiency of the billing process relative to revenue by assessing the
cost of collecting revenues relative to the total billed revenue.
• B-OE-1f: Unit Cost Of Bill
This measures cost efficiency of the billing process for a single bill by assessing the total
cost of billing for the Service Offering relative to the total number of bills.
• B-OE-2a: Time To Prepare Bills For Display and/or Dispatch
This measures customer experience of promptness in receiving regular bills by assessing
the mean time from the point designated by the Service Offering as bill cycle close, to the
point when bills are ready for dispatch (whether paper, electronic, etc).
• B-OE-2b: Days Sales Outstanding
This measures effectiveness/efficiency of sales management within a Service Offering by
assessing the duration of sales outstanding (i.e. awaiting payment) for a period relative to
average sales per day during that period.
• B-OE-2c: Mean Time From Service Activation To Bill Dispatch
This measures time effectiveness/efficiency of the Billing process by assessing the total
elapsed time between billable usage occurrence and data availability for billing relative to
the number of usage events

• B-OE-2d: Mean Duration From Bill Dispatch To Cash Received
This measures the time from bill dispatch to receipt of customer payment.
• B-OE-2e: Time Till Notification Of Payment
This measures the time from receipt of customer payment till the payment is recognized in
the billing system.
• B-OE-2f: Time Taken To Resolve Major Bill Processing Faults
This measures the average time taken to resolve major Billing Process outages during the
capture period.
• B-OE-3a: % Cost Of Billing Errors
This measures the operational efficiency of handling errors in the billing process by
assessing the cost of handling billing errors relative to the total billed revenue.
• B-OE-3b: Mean Age Of Billing Errors
This measures the error correction efficiency of the Billing process by assessing the
average age of errors.
• B-OE-3c: % xDRs Falling Into Suspense
This measures effectiveness of the Billing process, and opportunities for savings, waste
elimination, etc. by assessing the number of session detail records (SDRs) dismissed for
errors relative to the total number of SDRs.
• B-OE-3d: % Collectable Debt Written Off
This measures effectiveness of the Billing process, and opportunities for savings, waste
elimination, etc. by assessing the cost of collectable debt written off for the Service
Offering, against total Service Offering revenue collected.
• B-OE-3e: Collections Efficiency Against Credit Terms
This measures the cost effectiveness of the Billing process, and opportunities for savings,
waste elimination, etc. by assessing the revenue leakage (separated by cause, etc),
against total billed revenue.
• B-OE-3f: How Often Suspense Files Recycled
This measures how frequently Suspense files are re-cycled during the capture period.
• O-OE-2a: Mean Duration To Implement a New Pricing Or Tariff Change
This measures the average time for pricing or tariff changes to be implemented and
deployed within the billing system during the capture period.

Figure 4: The Business Metrics Scaffold (BMS)

4. Appendix A: Related Documents
Document Name Revision/Date
TM Forum Business Benchmarking Metrics Inventory 6.0.0
TM Forum Business Metrics Scaffold Poster 6.0

5. Appendix B: Terms and Abbreviations Used within this
Document
Term Definition Possible Options
1 Access Media The interface mechanism between the
service provider and the end-customer
Direct (store front, acct mgr.)
reseller/distributor
phone
web
mail
2 Channel The channel to market for the service. Direct (store front, acct mgr.)
reseller/distributor
call center
web
3 Customer Confirmed
Date
The date that the service provider confirmed delivery of the service.
4 Customer Density Differentiates between services that are
delivered in a high populous area with high
degree of infrastructure (Urban/Suburban),
versus outlying areas with highly distributed
customer and low degree of infrastructure
Urban/Suburban
Rural
5 Customer Request Interaction between a service provider and
an end-customer.
Possible types are shown.
Complaint
Inquiry
Change
6 Customer Required
Date
The date that the customer requested the service to be activated by
7 Defect Type Technology refers to a network or service
problem. Workforce refers either the SP or
3rd party employed workforce. A System
cause refers to a problem in the OSS/BSS
infrastructure.
customer caused
technology caused
workforce caused
system caused (data mismatch
problems)
other
8 End-Customer
Segment
Indicator of end-customer segment. Small
and medium business is considered to be
the same segment as consumer
Consumer, Small/Medium
Business
Large Enterprise, Government
9 Maintenance Type Unplanned maintenance references
exception based intervention or
maintenance
Planned vs. Unplanned

Term Definition Possible Options
10 Market Position An indication whether the Service provider
is operating as the incumbent or outside the
'geography' where they are incumbent.
(This metric is valuable to a wireline
operator that was once the monopoly
carrier. It is best applied to measures that
are applicable to wireline vs. wireless
carriers)
Incumbent
Competitor
11 Payment Timing when the customer is scheduled to pay for
services
Prepaid,
Postpaid
12 Request Category Process that the contact is referencing. See
Customer Request
Fulfillment
Assurance
Billing
General
13 Service Component Differentiates the Bearer from the
Application. The bearer provides
connectivity only.
Bearer, Data, Content, Retail

6. Appendix C: Administrative Information
This appendix provides additional background material about the TM Forum and this
document.
6.1.About this Document
This is a TM Forum Guidebook. The guidebook format is used when:
• The document lays out a ‘core’ part of TM Forum’s approach to automating business
processes. Such guidebooks would include the Telecom Operations Map and the
Technology Integration Map, but not the detailed specifications that are developed in
support of the approach.
• Information about TM Forum policy, or goals or programs is provided, such as the
Strategic Plan or Operating Plan.
• Information about the marketplace is provided, as in the report on the size of the OSS
market.
6.2. Document History
6.2.1. Version History
This section records the changes between this and the previous document version as it is edited
by the team concerned. Note: this is an incremental number which does not have to match the
release number.
Version Number Date Modified Modified by: Description of changes
1.1.0 15 June 2005 Mike Kelly First issue of Release 1.0
document
2.1.0 12 June 2006 Alpna Doshi
Paul Winder
First Issue of Release 2
New name of the document
– Business Metrics Scaffold
3.0.0 5 May 2008 Rudi Jetzelsperger First Issue of Release 3
updated metrics and added
Revenue Assurance Metrics
3.0.1 6 June 2009 Robert Bratulic Made minor corrections
5.0.0 18 April 2010 Robert Bratulic New major release, aligned
with BMF 5.0
6.0.0 8 August 2010 Beryl Graham New major release, aligned
with BMS 6.0 / Metrics
Inventory 6.0.0
6.1.0 31 August 2010 Alicja Kawecki Updated Notice, minor
cosmetic corrections for web
posting and ME

6.2.2. Release History
This section records the changes between this and the previous official document release.
Release Number Date Modified Modified by: Description of changes
Release 1.0 15 June 2005 Mike Kelly First release of document
Release 2.0 12 June 2006 Alpna Doshi Second Release of
document
Release 3.0 14 April 2008 Rudi Jetzelsperger Third Release of document
Release 4.0 16 June 2009 Robert Bratulic Fourth Release of
document
Release 5.0 18 April 2010 Robert Bratulic Fifth Release of document,
including first references to
BMF model
Release 6.0 01 August 2010 Beryl Graham Sixth Release of document
aligned with BMS 6.0 /
Metrics Inventory 6.0.0

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