A short write-up on the future of Revenue Assurance, the leader of revenue/cost cross-functional task force which aims to ensure completeness & accuracy of a telco business.
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10 areas of business assurance
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TELCOBEP RDC S.A.R.L. • Technology • Organization • Risk Management
CD/KIN/RCCM/15-B-9292 ID Nat. 01-450-N03518L
21, Av. Matadi, Kintambo, Kinshasa / RDC / +243999964450
WHY REVENUE ASSURANCE AND
NOT BUSINESS ASSURANCE
REVENUE ASSURANCEREVENUE ASSURANCEREVENUE ASSURANCEREVENUE ASSURANCE –––– BACKGROUNDBACKGROUNDBACKGROUNDBACKGROUND
The Revenue Assurance function (RA) has been defined as “A process to verify the beginning-to-
end completeness, accuracy, and integrity of the capture, recording, billing, and reporting of all
revenue-producing events…” (Deloitte & Touche)
From this definition, lot of theories and practices has been established in the industry to ensure
that all leakages areas are under control or reduced at strict minimum, Bill the billable event
and keep focus on “customer” satisfaction. The customer is external (normal service users,
shareholders, suppliers) or internal (Network, IT, Operations, Commercial, MFI, B2B, CEO, CFO,
Internal Audit etc…).
The assurance which is required from the RA function, is the certitude on accurate figures and
integrity of processes, products, technologies and sometimes people involved at any level of
the revenue/cost generating transactions. 90% of the RA function time is spent on reactive
mode, analyzing details of transactions, customer complaints, roaming files etc. Little time is
spent on proactive analysis of PPPT (People, Products, Processes & Technologies) as this is
supposed to be done by operational, commercial teams.
Also, since inception a debate on the accountability of leakage found at any level of the PPPT
between the maker and checker is still on.
The organization of the RA function is usually based on check list segregated (a) per business
areas (Prepaid Assurance, Postpaid Assurance, Process Assurance & New Product Assurance),
or segregated based on technologies (Network Assurance, Billing Assurance, and Process
Assurance & Business Assurance). In both cases the function is reporting to the Finance
Division.
Our advice has always been to have a dynamic organization structure of the RA function,
meaning the above (a) to be considered for a startup business and progressively move to (b) as
the organization is maturing, the market becoming more competition and shareholders
expectations increasing. A strong RA structure is therefore required and timely execute agreed
solutions designed to achieve the Business Goal.
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TELCOBEP RDC S.A.R.L. • Technology • Organization • Risk Management
CD/KIN/RCCM/15-B-9292 ID Nat. 01-450-N03518L
21, Av. Matadi, Kintambo, Kinshasa / RDC / +243999964450
The transformation of this function to Business Assurance is justified and the reporting line
should move to CEO office.
BUSINESS ASSURANCBUSINESS ASSURANCBUSINESS ASSURANCBUSINESS ASSURANCEEEE –––– 10 AREAS IN SCOPE10 AREAS IN SCOPE10 AREAS IN SCOPE10 AREAS IN SCOPE
RA is cross-functional by nature, RA requires variety of skills to accomplish most of the check list
and RA plays a key role during complex integration and interaction of PPPTs (change
management process). All MNOs are continuously transforming their organization by:
(a) upgrading their technologies (4G, 5G, IoT, Cloud etc)
(b) optimizing Network Infrastructures Cost (Revenue Sharing models of sites, Site sharing,
Managed Services, fuel management, low margins sites etc),
(c) investing in solutions for compliance to astringent regulatory requirements (KYC, QoS,
Taxes etc),
(d) moving to complex provisioning & billing platforms (OTT free billing, Shared Accounts,
Bonus on Mobile Money etc),
(e) enabling self-care services (digital, internet, IVR, Interactive IVR, USSD, eCommerce etc),
(f) launching solutions supporting the growth of B2B, B2C and C2B,
(g) introducing Mobile Financial Services,
(h) launching banking services (loans, savings etc)
(i) enabling insurance services (micro insurance) and
(j) Promoting complex Value Added Services (mHealth, mFarmer, mEducation etc).
The environment is more and more complex and the RA function shouldn’t continue to limit
their scope as is today.
By maintaining controls over the entire revenue/cost cycle, identifying and reducing revenue
leakages, increasing revenue profit or reducing direct cost, the RA function reporting to the
Finance organization might not proactively bring more values to the future of a mature MNO as
described above. Also being in a very competitive environment with volatile & demanding
customers, distributors and content service providers like banks preparing to launch MVNOs,
every opportunity of optimizing revenue/cost from the above 10 areas, requires the immediate
attention of the CEO.
Today more than before, Execution Excellence and Time to Market are key milestones for the
success of a Telco Business.
Our approach within TelcObep is to ensure 100% compliance to all check lists including
organization of awareness sessions dedicated to Senior Management team on the trend of
leakages around PPPTs. The check list must cover key areas of the above 10 topics and act
immediately in case of leakages. Hence the need of moving from RA (Revenue Assurance) to BA
3. Page 3 of 3
TELCOBEP RDC S.A.R.L. • Technology • Organization • Risk Management
CD/KIN/RCCM/15-B-9292 ID Nat. 01-450-N03518L
21, Av. Matadi, Kintambo, Kinshasa / RDC / +243999964450
(Business Assurance) and report directly to CEO office. This will require an active participation
of the BA head to all business meeting to ensure speed in execution and reduce the time to
market of critical product & services.
As a key player within the MNO cross-functional team, the BA team general knowledge on the
10 areas above needs to be developed and refreshed every year. Hence the need of creating an
in-house BA Academy and allocating resources for knowledge sharing with the rest of Business
Assurance community by attending international conferences, webinars etc…
ABOUT TELCOBEP SARLABOUT TELCOBEP SARLABOUT TELCOBEP SARLABOUT TELCOBEP SARL
We founded TelcObep in November 2015 with key objectives of (a) transforming ways of
people in Africa (corporate organization & consumers) are purveying conventional products and
services by leveraging on new technologies (Internet penetration & Financial Inclusion) and (b)
worldwide develop more resources on Telco Risk Management (RA, Fraud Management, and
Anti-Money Laundering from mobile money platforms).
TelcObep has a network of RA experts from various telcos in Africa, Middle East & India.
TelcObep is leaded by Blaise Pascal Okwo Ebwil a passionate of new technology with more than
17 Years of professional experience in Telecommunication services:
- Business Strategy,
- Operation (Provisioning, Billing & Collection),
- Commercial strategy & operations (Marketing, Brand, Customer Experience, Sales &
Distribution, Solutions to Business),
- Mobile Commerce & eCommerce
- Risk Management,
- RA & Fraud Management,
- Business Intelligence & Analysis.
We are focusing in delivering best solutions & results to our customers’ challenges and ensuring
a sustained growth of to their businesses by developing local resources on basics of BA.
For more details – info@telcobep.com