Revenue Assurance Industry Update - Webinar by Dr. Gadi Solotorevsky, cVidya's CTO

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Revenue Assurance Industry Update

Webinar, December, 2014

Dr. Gadi Solotorevsky

CTO – cVidya Networks

Ambassador, Distinguished Fellow and RA Team Leader – TM Forum

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What's New

Statistics & Surveys

RA best practices

New Businesses Models

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What do you estimate your revenue and fraud leakage to be?

Source: Global revenue assurance survey 2013, E&Y

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Leakage as a Percentage of Revenue

Source: KMPG Global Revenue Assurance Survey, 2012,

101 respondents

Source, TM Forum, Revenue Assurance Survey 2012

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TM Forum Revenue Assurance KPI Study - 2011

98%

2%

Detected Leakage % of revenues

Revenues Leakage detected

31%

69%

Recovered %

Recovered Unrecovered43%

57%

Recoverable and Unrecoverable % of un-recovered revenues

Recoverable Unrecoverable

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Percentage of Leakage Recovered

Source: Global revenue assurance survey 2013, E&Y

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The RA Department

Source, TM Forum, Revenue Assurance Survey 2013

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FTE in the RA Department

Source, TM Forum, Revenue Assurance Survey 2013

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Main objective of RA functions

Source: KMPG Global Revenue Assurance Survey, 2012, 89 respondents

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RA Activity Distribution

Source, TM Forum, Revenue Assurance Survey 2012

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RA Involvement in Change Processes

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Use of Best Practices1

Use of RA Best Practices Documents by TM Forum Members 20 Respondents, 180 Indications less 38 N/A = 142

13% 19% 19% 19% 25% 27% 33%

44% 38% 44% 50% 38% 33%47%

63% 56%44% 44% 38% 31% 38% 40%

20%

6%6%

38%31%

(16) (16) (16) (16) (16) (15)(15)(16)(16)

0%

100%

GB941-B (RAMM) GB941 Guidebook TR131 GB941-E [1] GB941-D GB941-A (RASK) GB941-E [3] GB941-E [2] GB941-C RFX

Not familiar with it and not using it Familiar with it but not using it Familiar with it and using it

1: Source, TM Forum, Revenue Assurance Survey 2012

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TM Forum RA Best Practices

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RA Maturity Model (RAMM)

Use of RA Best Practices Documents by TM Forum Members 20 Respondents, 180 Indications less 38 N/A = 142

13% 19% 19% 19% 25% 27% 33%

44% 38% 44% 50% 38% 33%47%

63% 56%44% 44% 38% 31% 38% 40%

20%

6%6%

38%31%

(16) (16) (16) (16) (16) (15)(15)(16)(16)

0%

100%

GB941-B (RAMM) GB941 Guidebook TR131 GB941-E [1] GB941-D GB941-A (RASK) GB941-E [3] GB941-E [2] GB941-C RFX

Not familiar with it and not using it Familiar with it but not using it Familiar with it and using it

Widely used by the industry

A blueprint to improve RA operations

Internal and external benchmarking

Based on Capability Maturity Model (CMM) principles

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Revenue Assurance Maturity Model

Organization Process Measurement Technology

RA strategy

RA objectives, goals & incentives

Organizational fit

Sponsorship, ownership,

accountability and responsibility of

RA

Skill set of RA team

Business knowledge

Relationship with other

departments

Staffing levels

Communications

RA planning & review

Use of risk management

techniques

Change management involvement

& sign-off

In-life product reviews

Operation of primary controls

Operation of secondary controls

Investigation of discrepancies

Correction of identified issues

RA reporting

Adoption & sharing of industry best

practice

Measurement framework

RA control structure

Risk mitigation

RA control coverage & data quality

Leakage & benefits

RA control efficiency

RA control effectiveness

RA productivity metrics

Unmeasured leakage

Technology strategy

Technology acquisition

Functionality of RA toolset

Access to information

Data analysis

Use of RA technology

Ease of use

Degree of automation

Revenue coverage

Supplier management

Provides a method to assess the maturity of business activities that should

deliver revenue assurance objectives based on a quantitative maturity model

Maturity Model Assessment Areas:

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The TM Forum RAMM2

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The TM Forum RAMM2

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TM Forum - Revenue Assurance Metrics

Data Quality Revenue Leakage RA Process Effectiveness

Percentage of validated data Percentage of customer bills adjusted in a bill cycle Percentage of the recovered revenue value

Percentage of customers included to reconciliation

Percentage of Unbilled and Underbilled Revenue over Total Revenue

Quantitative description of the recovered revenue value

Percentage of misaligned data records Value of Unbilled and Underbilled Revenue over Total Revenue

Quantitative description of the recoverable revenue value

Percentage of misaligned customers Percentage of Billable xDRs suspended or errored/Total xDRs

Percentage of the recoverable revenue value

Ratio of Billing xDRs Records to Network xDRs Records

Quantitative description of the average time for recovery of revenue

Percentage of errors on Fulfillment orders Percentage of xDRs successfully recovered, processed and billed after recycling over Total xDRs

Quantitative description of the cost of assets that were unused or stranded

Percentage of Recovered and Recoverable Customer Revenue over Total Revenue

Percentage of Verified and Accepted 3rd Party Settlement Reports over Total S/P Settlement Reports

Quantitative description of the unfilled error fixes orders

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Revenue Assurance Metrics, 2015 planned changes

Data Quality Revenue Leakage RA Process Effectiveness

Percentage of validated data Percentage of customer bills adjusted in a bill cycle Percentage of the recovered revenue value

Percentage of customers included to reconciliation

Percentage of Unbilled and Underbilled Revenue over Total Revenue

Quantitative description of the recovered revenue value

Percentage of misaligned data records Value of Unbilled and Underbilled Revenue over Total Revenue

Quantitative description of the recoverable revenue value

Percentage of misaligned customers Percentage of Billable xDRs suspended or errored/Total xDRs

Percentage of the recoverable revenue value

Ratio of Billing xDRs Records to Network xDRs Records

Quantitative description of the average time for recovery of revenue

Percentage of errors on Fulfillment orders Percentage of xDRs successfully recovered, processed and billed after recycling over Total xDRs

Quantitative description of the cost of assets that were unused or stranded

Percentage of Recovered and Recoverable Customer Revenue over Total Revenue

Percentage of Verified and Accepted 3rd Party Settlement Reports over Total S/P Settlement Reports

Quantitative description of the unfilled error fixes orders

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Revenue Assurance Metrics, 2015 planned changes

Cost Assurance Maturity and Risk

Percentage of over payments to 3rd parties Maturity of Revenue Assurance operations as defined in GB941-B V.2.

Percentage of over payments of commissions and incentives

Change in the Maturity of Revenue Assurance operations

Percentage of discounts, goodwill credits, adjustments

RA residual risk level as defined in GB941-E

Percentage of unjustified discounts, goodwill credits, adjustments value

Risk reduction following RA controls as defined in GB941-E

RA coverage as defined in GB941-E

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TM Forum - Big Data Analytics Catalyst

1. Harnessing the power of Big Data Analytics to improve customer experience and achieve business growth

2. Defining and implementing a new and innovative concept for a unified Analytics Big Data Repository (ABDR)

3. ABDR supporting multiple big data use cases and commercial data analytics systems, while avoiding data replications

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TM Forum - Analytics Big Data Repository (ABDR)

A new and innovative concept!

A unified layer that can supports multiple use-case and multiple analytics systems

Key Benefits:

− Avoiding data replications

− Saving in ETL costs/time

− Savings in hardware (storage & processing power)

− Faster time to implement new use-cases

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Future trends

Revenue Assurance

Area or Problem Space Traditional Focus Future Trend

Mobile Billing Sophistication Relatively simple bills with bundled services to verify rating and usage.

Complex mobile data plans with usage limits, shared family plans. Onus moves to optmize prices for specific lifestyle plans

Charging Complexity

Prepaid and charging require an inordinate amount of revenue assurance due to multiple platforms on the backend.

Market adopts centrally managed, but distributed charging systems. Hybrid model allows postpaid subs to pay for certain content/services on the fly.

Targeted Areas of Process Improvement

Order-to-Provision & Bill-to-Cash

End-to-end processes that assure the customer experience in niches the business chooses to be excellent in

Customers to Assure Consumers and Small Business (single account)

VIPs across Enterprise, Consumer and Partner Markets (including group and hierarchical accounts)

RA Maturity Dimensions 1) Data Completeness & Accuracy 2) Rating Excellence

3) Margin Analysis 4) Cash Flow /Dispute Management 5) VIP Customer Synchronization

Enterprise billing

RA departments play limited role in enterprise business due to complexity of custom contracts and subaccount hierarchies

Expanding enterprise portfolio in wireless, cloud and IT outsourcing will require assurance monitoring, particularly to mid-sized enterprises.

Source, TRI, The Telecom Analytics & Big Data Solutions Market, 2014

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Business models and products are changing − Flat rates

− LTE

− Family plans

− Sponsored data

− Privileged data (?)

− QoS on demand

− Data exchange

− M2M / IoT

How does it affect RA?

RA and New Business Models

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France – will LTE remain premium?

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Sponsored Data

Source: http://www.att.com/gen/press-room?pid=25183&cdvn=news&newsarticleid=37366&mapcode=

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Data Exchange

Source: http://www.telecomasia.net/content/china-mobile-hk-opens-data-exchange-platform

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Verizon “Share Everything” Data Plan 12/2013

Source: http://www.verizonwireless.com/b2c/plan-information/?page=share-everything

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Questions?

[email protected]

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