Corporate Financial & Operational Analytical and Reporting ... · PDF fileCorporate Financial & Operational Analytical and Reporting System Eugene Olkhovski, MTS Deputy Billing.....

Corporate Financial & Operational Analytical and

Reporting System

Corporate Financial & Operational Analytical and

Reporting SystemEugene Olkhovski, MTS Deputy Billing Mgr

Elias Soloviev, SAS Project Mgr

SEUGI 2002 PARIS Palais des Congrès 11-15 June 2002

2

_________Corporate Financial & Operational Analytical and Reporting System

Agenda

•Company overview•Business needs•Solution•Benefits•Further plans

3


I


4


Some Details

•Registered on October 28th 1993•Commercial operations started in July 1994•Leading Russian mobile operator•Offering GSM telephony, roaming, SMS, WAP, GPRS

services, etc …•3,500 employees, 70 trade centers over the Russia•Operates in 8 time zones

5


2001 Business Specs

•Total revenues $893.2m •Capitalization $3.5b •EBITDA $424.0m•EBITDA margin 47.5%•Net Incom $207.3m•ARPU $36/month

6


Network Investments

2669 79

109

194

397

050

100150200

250300350

400

1996 1997 1998 1999 2000 2001

Annual capex(US $mln)

$881 mln Cumulative Network Investments

7


Strong growth in subscribers

18 59 114 307

1194

2650

3650

0500

1000150020002500300035004000

1996 1998 2000 4m2002

' 000 subscribers

8


0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

3Q00

4Q00

1Q01

2Q01

3Q01

2001

4M20

02

No.

of s

ubsc

riber

s ('0

00)

Business and wealthy Mass market

Attractive Customer Base

2001

Business andwealthy Mass market

Subscribershare

15% 85%

Servicerevenue share

41% 59%

ARPU (US$) 100 24

MOU (min) 325 149

Source: Company data Source: Company data

9


Net Incom

4,8

59 6685 90

207

0

50

100

150

200

250

1996 1997 1998 1999 2000 2001

Net Incom $(mln)

10


MTS46%

Vimpelcom32%SMARTS

4%

Megafone14%

Others4%

VimpelcomMTSSMARTSMegafoneOthers

Russian GSM market share

Source: Company data

11


Regional expansion highlights

• 37 operational regions• Recent acquisitions:- Telekom XXI (Saint Petersburg)- Kuban GSM – 4th largest Russian mobile operator- Telecom 900 (taking control over 3 leading operators in

Siberian and Far East)•$226m investments in regions

12


#

#

#

####

#

#

#

##

#

#

#

##

#

##

##

# ##

#

#

#

#

#

Moscow Yaroslavl'

N. Novgorod

VoronezhPerm'

Yekaterinburg

Orenburg

Chelyabinsk

Kurgan

Tumen'

Omsk

Blagoveschensk

Hanty-Mansiysk

#

SalehardKirov

KostromaIvanovo

##Syktyvkar

#Kudymkar

#Izhevsk

Pskov

Tver'Smolensk

Bryansk

KurskBelgorod

Kaluga

Orel

Tambov

Tula

Lipetsk

VladimirRyazan'

#Kaliningrad

#St.Petersburg

#Petrozavodsk

#Arkhangelsk

#Murmansk

#Novgorod

#Vologda

#Naryan-Mar

# Novosibirsk

#Khabarovsk

#Gorno-Altaysk

#Minsk

#Krasnodar

Geared Up to Be The First National Operator

13


Geared Up to Be The First National Operator (part 2)

• Licenses to operate in 48 regions in Russia with a population of 84 million (58%of Russia’s total) and Belarus with a population of 10 million

• Currently operating in 37 regions (60 million people), including Moscow and St Petersburg

• Roaming services in 100 countries worldwide

14


Last detail – Critical Numbers

•Over 30 billing servers in 37 branches•8 subsidiaries with different accounting system•Data center-branch data channel overall speed is 64kbit/sec•8 hours time difference between first and last offices start to work

15


II


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Business Needs•To get in time all operating and financial information critical to company top management. To automate this process.•To make this process transparent and to be able perform audit of the information. Finally, to get one “source of truth”.•To be able to analyze operating and financial data from the top level into detail.

17


General Questions

•Customers profitability, loyalty and retention•New customers attraction•Tariff policy•Services usage and demand•Company growth strategy

18


III


19


History Environment

Billing Service

Moscow BillingSystem

CBOSS (ORACLE)

Customer's Accounting

Marketing

Branch 1 billing Branch 2 billing Branch n billing

Region 1 Billing Sy stemCBOSS (ORACLE)


Region n Billing Sy stemCBOSS (ORACLE)

CEO - President

Cell Commutator 1

Cell Commutator 2Cell Commutator n

$ $$

Tradeof if ices

$ $ $

Tradeof if ices

Telco Facilities Warehouse

Board of Vice-Presidents

Plan and Finance Service

Russian AccountingSystem

SUN Accounts

Roamong

Eastern Accounting

GAAP AccountingSystem

SUN Accounts

CFO CMO

y

Subsidiaries billings

SubsidiariesAccountings

$ $ $

Tradeof if ices

20


General Requirements•Get information from billing systems.•Develop flexible reporting system based on current company standards.•Create analytical decision support systems for Planning and Finance Dept. and Customer Accounting Division instead of current systems with limited functionality.

21


Details: Get Information

-Get information from central and regional billings on daily and monthly basis.

-Daily processing has time limitation of 11 hours maximum, from 21:00 to 8:00 for each time zone.

-Clean data and consolidate regional dictionaries.-Process history information from year 1998 to 2001.-Choose appropriate data granularity sufficient for

analysis.-Do not store detail data such as CDRs.

22


Details: Develop Reporting System

-Develop 22 complex reports for each reporting level.-Reporting levels: corporate, regional (branch or

subsidiary).-Reporting should include following analysis: total and

new number of customers, charges/income, traffic by following classes: tariff’s, service’s and customer’s characteristics.

-Comparative analysis variables should have at least 12 monthly values to compare.

-Automatically update reports on daily/monthly basis.

23


Details: Create Analytical DSS

-Develop analytical system within customers, finances and net traffic areas.

-Data should include demographic, business, specific and other classifiers of customers.

-Analytical values: total and new number of customers, traffic volume, billed/non-billed traffic, amount of services delivered/charged, payments/income, debts …

-Develop forecasting module for evaluation of net traffic and number of customers growth.

24


Solution Architecture

•Analytics for Plan&Finance Dept.

•Analytics for Accounting Dept.

•Reporting for Top Mgrs

•ETL Control Application•Data Warehouse Management Environment

•Billing Systems •Accounting Systems

25


Critical features•Control all ETLs centrally- 8 time zones - 30+ regional billing systems (expected grow up to 60)

- 64 Kbit channels•Consolidate dictionaries•Maintain time limits for ETL -Night period for each region

•Decrease billing system overload level-Minimize extraction time

•Choose appropriate data granularity (do not store CDRs)

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End Day of Week

End Type of Day

End Fiscal Week

End Fiscal Month

End Fiscal Quarter

End Fiscal Year

End Day

End Calendar Month

End Calendar Quarter

End Calendar Year

End Holiday

End Calendar Week

Granularity (DWH Logical Models)

•DWH has three logical level:1 Normalized detail storage level

for customers and finance2 Aggregated data marts for

traffic, customers and finances 3 Special data marts for specific

functionality of analytical applications

Годyear (date)5

ируемаяость

M,MEAN

остьеальная)

M,MEAN

воN)

M,MEAN

ть

UM,M

тья

UM,MEA

Длительность(0сек, 1сек, ...60сек, ...120сек, 2.5мин, 3мин, ...1030мин)Комутатор(номера комутаторов)

Статус приложения(не расчитано, не подтверждено; расчитано, неподтверждено; завершено)Тип пользователя мобильного телефо(организация, частное лицо)

Тип услуг(регулярное)Ссылка на услугу (вид тарифа)8

Код национального доступа(095, 902)

Биллинговая группа20

Система расчетов(кредитный, по факту)

Состояние лицевого счета(активен, предзакрыт, закрыт)

Тип плательщика(организация, частное лицо)

Регион5

Маркетинговая категория абонента5

Тип абонента(организация, частное лицо)

Признак освобождения от налогов(да, нет)

Юридическая категория абонента(категория 0)

Состояние контракта(неопределен, основной, агентский, служебный

Тип юридических отношений(резидент, нерезидент)

Сота(номера соты)Наличие международного доступа(номера соты)Направление/Услуга(Входящий, Местный, Зона МТС, Россия(ЕвропаАмерика Юж Америка Роуминг Спец вызовы

Customer Usage Billing

Billing DateBilling Month

CustomerCust. Delivery

Point

ProductProduct/Service

Usage TypeUsage Type

Pricing Package

Package

DateDay

Area Code

Prefix

Cust. Date of Birth

Cust. Demogr. Profile

Cust. Educ. Level

Household

Household Profile

Cust. Gender

Suffix

Assigned Service Region

Cust. Location Zip+4

Cust. Location Zip

Bill To Zip

Customer Delivery Point

Customer Location

Customer

Cust. Location Street Address

Bill To City

Bill To State/Province

Bill To Country

Del ivery Point Type

Cust. Location Ci ty

Cust. Location State/Province

Cust. Location Country

Customer Type

Industry

Industry Group

Date of 1st Service

Cust. Assigned Sales Region

Parent Company

Bill To Zip+4

Bill To Street Address

Годyear (date)5

Месяцmonth 3

Статус приложения(не расчитано, не подтверждено; расчитано, нподтверждено; завершено)Тип пользователя мобильного телеф(организация, частное лицо)

Тип услуг(регулярное)Ссылка на услугу (вид тарифа)8

Код национального доступа(095, 902)

Биллинговая группа20

Система расчетов(кредитный, по факту)

Состояние лицевого счета(активен, предзакрыт, закрыт)

Тип плательщика(организация, частное лицо)

Маркетинговая категория абонента5

Тип абонента(организация, частное лицо)

Признак освобождения от налогов(да, нет)

Юридическая категория абонента(категория 0)

Состояние контракта(неопределен, основной, агентский, служебны

Тип юридических отношений(резидент, нерезидент)

(результат, заявка)

Тип активности абонента(активен, отключен менее 2-х месяцев, отклю

ение

MEAN

абонентов

ная,тся вня пом

MEAN

Регион5

27


Decrease overload level (parallel extraction)

•Get data from ORACLE table by N SAS processes using appropriate index• All processes use their own diapasons of index

Oracle table A

SAS ETLProcess 1

SAS Table A

Reg

iona

l SA

SD

WH

Ser

ver

Reg

iona

l OR

AC

LEB

illin

g Se

rver

...SAS ETL

Process n

Oracle table B

SAS ETLProcess

n+1

SAS Table B

...SAS ETL

Process m

Oracle table C

28


Maintain time limits

• Parallel extraction decreases time • Start schedule for all regional ETL processes• In case of errors – restart from last completed node automatically (depends on error type)

• Start central ETL process at fixed time (do not wait delayed regions)

29


Consolidate dictionaries

•Use copy of each regional dictionary in center. Extract current regional dictionary but extract data with lag (–1) day (check changes and make decision)

• Add regional prefix to all regional data at the detail level• Create Etalon dictionaries with diapasons. Develop and

update maps for etalon dictionaries and regional dictionaries

• Use Etalon dictionaries for the aggregated level

30


Control centrally• All regional processes support running

metadata• Center has monitor process that each x

minutes reads running metadata from each region

• In case of trouble, central process analyze it and generate batch script starting from the last well completed node and submit it on the regional server.

• Log all regional processes centrally• Inform operator in case of critical errors

only

31


ETL Process flow

Billing DataBaseCBOSS (ORACLE)

Copy of BillingDataBase

SASETL

Process

DataBaseReplication

SAS RegionalStaging Area

Transportfiles Dictionaries

EtalonDictionary

Transportation

Controlmetadata

ProactiveTransportation

Clean andConsolidati

onTranscoding into

central DWH codes

Processingdata marts

Central DWH

Data Marts

ControlApplication

CentralDWH

Metadata

RegionalDWH

Metadata

DWH ManagingApplication

Cent

ral S

AS D

WH

Serv

erR

egio

nal S

AS

DW

H S

erve

rR

egio

nal O

RA

CLE

Bill

ing

Serv

er

PARALLELextraction from

ORACLE

32


Reports for Top Mangers

• 22 complex reports for each region and company-wide also

• Keep previous known and sharp MTS standards for reporting

• Distribute reports properly and in time

33


Analytical applications

• Deliver information on daily and monthly basis• Data has 50+ dimensions and 10+ indicators to analyze• Time series forecasting for critical indicators

34


Projects Schedule

35


Year 2001 – Main Results

Billing Service

Moscow BillingSystem

CBOSS (ORACLE)


Marketing




Region n Billing Sy stemCBOSS (ORACLE)

CEO - President

Cell Commutator 1


$ $ $

Tradeof if ices

$ $ $

Tradeof if ices




Russian AccountingSystem

SUN Accounts

Roamong

Eastern Accounting

GAAP AccountingSystem

SUN Accounts

CFO CMO

y


SubsidiariesAccountings

$ $ $

Tradeof if ices

36


IV


37


Solution Benefits

•Decreasing of the billing systems overloadlevel•Transparent reporting and analytical data•Reports distribution in due time•One source of truth•Ability to analyze customer’s data

38


Solution Benefits (last)

•One more step to intelligence -

done

39


V


40


Year 2002 Prospects

•Include information from all currently operating regions into the corporate DWH•Implement SAS Financial Management Solution for the Top company Financial Management•Develop Deviation Analysis System of Finance Dept. and Accounting Dept. data•Start to develop CRM solution for Fraud, Churn and Customer retention

41


Year 2002 Results Estimate

Billing Service

Moscow Billing SystemCBOSS (ORACLE)


Marketing


Region 1 Billing SystemCBOSS (ORACLE)

Region 2 Billing SystemCBOSS (ORACLE)

Region n Billing SystemCBOSS (ORACLE)

CEO - President

Cell Commutator 1


$ $ $

Trade ofifices

$ $ $

Trade ofifices




Russian Accounting SystemSUN Accounts

Roamong

Eastern Accounting

GAAP Accounting SystemSUN Accounts

CFO CMO

y


Subsidiaries Accountings

$ $ $

Trade ofifices

42


Year 2002 Benefits Estimate

•To doone more step

to be intelligent

43


Thank You!

Questions?

Corporate Financial & Operational Analytical and Reporting ... · PDF fileCorporate Financial & Operational Analytical and Reporting System Eugene Olkhovski, MTS Deputy Billing.....

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