A Key to Survive: Service-oriented Operations and Management for Accelerating Business Transformation Tae Il Park Senior Vice President Head of KT Network Management Business Unit October 2008 -2- Trends in Telco Business Transformation Challenges for Operation Transformation Service-oriented Operations & Management Summary I II III IV
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A Key to Survive - APNOMS · -3-• Transformations are already Prevailing • Telco Responses to IP Convergence • Telco2.0 Transformation • KT Telco2.0 Strategy: New Role & Business
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A Key to Survive:Service-oriented Operations and Management
for Accelerating Business Transformation
Tae Il Park
Senior Vice President
Head of KT Network Management Business Unit
October 2008
- 2 -
Trends in Telco Business Transformation
Challenges for Operation Transformation
Service-oriented Operations & Management
Summary
I
II
III
IV
- 3 -
• Transformations are already Prevailing
• Telco Responses to IP Convergence
• Telco2.0 Transformation
• KT Telco2.0 Strategy: New Role & Business Model
- 4 -
Transformations are already Prevailing…
Convergence
Intensive Competition
Falling RevenueOpex, Capex, and ROI
Transform from network service provider to multimedia content providerto Rekindle Past Glory
- 5 -
Telco Responses to IP Convergence
Operator responses to IP Convergence: Strategic Implication of Convergence
Operational Infrastructure Transformation with KT operational culture and NGOSS standard
- 15 -
Operational Infrastructure Innovation - Business Process Framework
Process Innovation (PI) defines all the major business processes for customer value creation, business innovation, and enterprise innovation within KT environments
Starting point for defining new system required
Single common language for describing the operations
Clear definition of work areas of revenue and cost
assignment
Big picture of how the business works
Development & IntegrationOperationsFinanceBusiness
People, Rule, Organization Change & Innovation with Excellence, Speed, and Standard System
Customer
S.I.P Operations
Supplier/Partner
Enterprise management
Stakeholders Employees Other stakeholders
Customer Value DeliveryCustomer Value Delivery
Customer Value CreationCustomer Value Creation
Business Capability DevelopmentBusiness Capability Development
Service Session Management – The Network doesn’t matter…
• Network diversity and network innovation had led to network abstraction based on IP as common denominator
All-IP (BcN)Mobility-enabled & QoS-guaranteed
GSMEDGE
UMTSCDMA
WiBroHSDPA
POTS/ISDN
WirelinexDSL FTTH
Others
Network Diversityis not a problemanymore due to All-IP evolution
CommonApplications& Services
• Network focused product
• Circuit-based long lived services
• Connectivity services
• Simple & individual service model
• Network focused product
• Circuit-based long lived services
• Connectivity services
• Simple & individual service model
• Service focused product
• Session-based short lived services
• Multimedia converged service
• Complex & convergent service model
• Service focused product
• Session-based short lived services
• Multimedia converged service
• Complex & convergent service model
Yesterday Today & Tomorrow
- 19 -
Service Session Management – Real-time Monitoring
DeviceNetwork
Identity
QoS
Preferences
Service
LocationPresence
The core of seamless service lies in real-time information management of user’s current service session and maintenance of user’s presence in heterogeneous public and private networks for delivery of converged services
Applications
OSS/BSS
Service Delivery Platform
Control (IMS)
Access
Transport
Clients and Devices
- 20 -
Service Session Management - IPTV
Service convergence introduces the complexity of service session management and its personalization leads large volumes of customer’s session information management
Head-End Center
RPRP
PEPE
PEPE
PEPE
PEPE
IPIP--MediaMediaSwitchSwitch
A3808A3808
L3 L3 SwitchSwitch L2 L2
SwitchSwitch
SERSER
A3808A3808
PEPE PEPE
PEPE
VOD ServerVOD Server
PP,CP,DP
RPRP Server Server --FarmFarm
Application
Layer
Control
Layer
Transport
Layer
Customer
Layer
HD Monitoring
VOD NMS
KSMS
HDS
PVS
CAS
MOC
VOD
DBS
IDMS
CMS
STB Web
U-CEMS
Access NMS
Premium NMS
Core NMS
Meg
aTV
NM
S
DAIMS
MegaT
V-S
CS
DRM
ProbeProbe• Service flows• Problem resolution• Quality management• Real-time billing• Customer usage pattern
management
- 21 -
Total Fault Management Framework
Service Problem Management
IMS &SDP
IMS &SDP
Access Networks(Wired & Wireless)Access Networks
(Wired & Wireless)
Applications&
Contents
Applications&
Contents
BackboneNetwork
BackboneNetwork
3rd PartySP
Applications& Contents
Management
Applications& Contents
Management
3rd PartyFederation
Management
3rd PartyFederation
Management
ServiceManagement
ServiceManagement
TT & WorkforceTechnician
Management
TT & WorkforceTechnician
Management
End-userDevice
End-userDevice
OperationStaffs
OperationStaffs
NetworkManagement
NetworkManagement
DeviceManagement
DeviceManagement
EventFiltering,
Suppress &Correlation
EventFiltering,
Suppress &Correlation
Root Cause Analysis&
VOCMgmt
Root Cause Analysis&
VOCMgmt
CustomerImpact
Analysis
CustomerImpact
Analysis
Empowerexperts
tocapture
intelligence& knowledge
Automaterecovery with
policy & knowledge-basedfault management
A fully featured network fault and service problem management framework is needed for reliable and effective service-oriented management
- 22 -
Service Problem Management – Fully Featured Problem Handling
A fully featured Network/Service Problem Management System and Total Fault Management System, which monitors and manages whole business infrastructure, will be needed to provide converged services.
VOC DB
• Root Cause Analysis
• Real-time Cross Domain Problem Monitoring and Handling
• Service affected facility & customer analysis with RCA
• Damage cost calculation incurred by Root Cause
• Trouble Ticket Issuance with RCA and VOC
• Related statistical report
FacilityFacility
LogicalResource
LogicalResource
LogicalResource
LogicalResource
VoIP SessionVoIP Session
IPTV SessionIPTV Session
Internet SessionInternet Session
VoIP SessionVoIP Session
IPTV SessionIPTV Session
Internet SessionInternet Session
Customer1
Customer5
Customer2
Customer3
Customer4
Customer6
PersonalizedCustomers
Alarm AnalysisAlarm Analysis
RCARCA
Event NormalizationEvent Normalization
AffectionAnalysis
AffectionAnalysis
Fault/VOC Real-time StatusFault/VOC Real-time Status
Service providers must now put customers at the heart of their business by providing higher quality service than their expectation
What happens when QoE is poor?
About 29% of customers will not complain before defecting – they will simply leave once they become unsatisfied
QoE ≈ Customer Loyalty, Retention and Revenue
1-10-100 Rule for quality management
100100
1010
11Catching and fixing problems in your working area
Catching and fixing problems internally, but after they have left the working area
Repairing the damage of problems caught by external customers
1-10-100 rule for Quality Management
Total cost of Quality
PreventionPrevention
InspectionInspection
FailureFailure
PreventionPrevention
InspectionInspection
FailureFailure
Without Quality Improvement Process
With Quality Improvement Process
Total Cost of Quality
- 24 -
Service Quality Management - IPTV
KT Integrated Quality Management System (ISQM) for end-to-end service quality management
QualityAnalysis &
Measurement
QualityAnalysis &
Measurement
Fault& Performance
Fault& Performance
TVQMS(QSTB, HIKE, QM)
KSMS
Premium-NMS Core-NMS Access-NMS
IPAS
IP-CEMS
MegaTV-SCS / VoIP-NMS / WiBro-NMS
ServiceQuality
Management
ServiceQuality
ManagementKQI
KPI KPI KPIKPI
KQI
KPIKPI
SER
Ntopia Switch
UTPSiSi
FES
SiSi copper
L3 SwitchPE Router
STB
VDSL/IP-ADSL DSLAM
STBSiSi
Media Switch
VoD Server(H.264)
OLT
L3 switch
FTTHCP
DP
PP
Broadcast ServerEPG Server
CAS/Server
HDS Authentication Server
Premium
Best Effort
Media Center Backbone Network ResidentialAccess networks
ProbesQM
KQI
KPIKPI
Media QualityTransaction QualityTransmission Quality
Quality Monitoring, Measurement, and Analysis
QSTB
Branch Offices (107 Sites)
Network Operation
Centers (25 sites)
Quality Policy
QoE Indicator
- 25 -
Remote Device Management
Shift from network element management focus to service management, data management and user preference management
Network Intelligence Migrationto devices
Device Proliferation & Convergence
Fixed
Mobile+
Construct all the values for customer from device!!
Management Authorities
Provide valuable information
Customers (Users)
Direction of DM Innovation
• Integrated DM for any device (Fixed, Mobile, Converged device)
• Expand zero-touch deployment from fixed service to dynamic service
• Drive enhancements to customer experience management (Quality, Service failure, user preference)
• Software lifecycle management (from delivery to withdrawal)
• Device lifecycle management
- 26 -
Remote Device Management – Automatic Control
With zero-touch remote device management framework, we can control network-enabled devices anywhere in the world and integrate them into enterprise infrastructure.
Integrated Channel Management with Single View on Customers
Customer Care without enterprise management information
Network Operations & Managementwithout customer information
Customer-centric Channel management is imperative for increasing customersatisfaction in rapidly changing business environment
• Different views by different organizations and staffs Harmful Business Model for Customer
- 30 -
(IntegratedBilling, Ordering, and
CRM)
(IntegratedBilling, Ordering, and
CRM)
KT Strategy for Integration of OSS/BSS
Phased OSS/BSS Integration Approach for Accelerating Business Transformation
PSTN xDSL Network Infrastructure
NetworkManagement
ServiceManagement
Businessmanagement
FTTH, WiBro, BcNSDP, IMS
W-CDMA / HSDPA 4G
NeOSS(Integrated configuration,
assurance, workforce, and Inventory Mgmt.)
NeOSS(Integrated configuration,
assurance, workforce, and Inventory Mgmt.)
IntegratedNMSs
IntegratedNMSs
NeOSSNeOSS
ICISICISSilo
Silo
Silo
Wired + Wireless
Wired + Wireless
• ICIS: Integrated Customer Information System for one-stop customer care and billing• NeOSS: New & Next Gen Operations Support System for flow-through fulfillment and assurance
- 31 -
SOA Framework for Open OSS/BSS
SOA and OSS/BSS Service Orchestration - SOA is a powerful integration approach because process flow no longer needs to be hard coded but can follow a contractual model
Enterprise & SOA GovernanceEnterprise & SOA GovernanceBusiness
Architecture
BusinessArchitecture
DataArchitecture
DataArchitecture
ApplicationArchitecture
ApplicationArchitecture
TechnologyArchitecture
TechnologyArchitecture
ServiceLife-cycle Mgmt
ServiceLife-cycle Mgmt
Standard I/FManagement
Standard I/FManagement
SOA Framework for OSS/BSSSOA Framework for OSS/BSS
ERPERP
CRMCRM
BillingBilling
IntegratedFault Management
IntegratedFault Management
IntegratedPerformanceManagement
IntegratedPerformanceManagement
Integrated ServiceQuality Management
Integrated ServiceQuality Management
Integrated ServiceSession Management
Integrated ServiceSession Management
Zero-touchDevice Management
Zero-touchDevice Management
Domain specificxNMSs
(include Probes)
Domain specificxNMSs
(include Probes)
Workforce Management
Workforce Management
IMS/SDPManagement
IMS/SDPManagement
ServerManagement
ServerManagement
EventNotification
EventNotification
Service Registry
Service Registry
PersistentEvent
Repository
PersistentEvent
Repository
DataTransformation
DataTransformation
EventFilter &Security
EventFilter &Security
Messaging/Transport
Messaging/Transport Web ServicesWeb Services Connector/
Adaptors
Connector/Adaptors
MessageRouting &
Distribution
MessageRouting &
Distribution
ESBWeb
Services
Governance& Monitoring
UDDI Registries
UDDI
BusinessManagement
BusinessManagement
ServiceManagement
ServiceManagement
NetworkManagement
NetworkManagement
CustomerManagement
CustomerManagement
Flow-through operational process management
Ful
fillm
ent
Ass
uran
ce
Bill
ing
Ope
ratio
ns &
Mai
nten
ance
Pro
cure
men
t &Li
fe-c
ycle
Mgm
t
Workflow Engine & BAMWorkflow Engine & BAM
GIS-enabled Integrated OSS/BSS WindowsGIS-enabled Integrated OSS/BSS Windows