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ffic data analysis – Preparation of traffic dependent work reconfiguration – Craft dispatch ? Operator scheduling ? Network planning ? Message collection – Alarm surveillance – Performance data collection/reporting ? Device configuration (., downloading of routing tables) ? Billing data generation ? Quality management: endtoend circuit/line testing BACKUP 237 * Also relevant for “Strategy and marketing” Source: McKinsey IT SUPPORT IN THE VALUE CHAIN OF A TELCO OPERATOR (3/3) Customer care and billing Network planning and installation Sales Network operation Service provisioning and delivery Back office administration Strategy and marketing Decision support systems Inventory management Maintenance and workforce management ? Network infrastructure inventory management ? Customer premises inventory management ? Churn analysis/ identification of jeopardy customers* ? Service/product usage analysis* ? Customer segmentation* ? Customer/product profitability analysis* ? Prospect identification of new products* – Tariff planning ? Product inventory management (., product classes, categories, lines) ? Supplier management ? Network infrastructure inventory management ? Network fault management – Service technician and craft dispatch – Spare part management ? Operator scheduling ? Customer premises equipment fault management – Service technician and craft dispatch BACKUP 238 Source: McKinsey APPLICATION FLEXIBILITY/STABILITY ASSESSMENT 3 Category Description Dynamics/stability assessment ? Systems that are related to business area that are subject to quick and constant change (., market structures, anization) ? Systems that require a high degree of flexibility to keep pace with anisational change (., frontend systems) Flexible systems Dynamic systems ? Systems that are related to the more stable business infrastructure (., craft dispatch or claims payment systems) ? Systems that support business transactions requiring a high level of technical quality and reliability (., call rating engine) ? Best practice is to separate dynamic and stable systems to avoid unwanted sideeffects on stable systems when dynamic systems are frequently change. Vice versa the changing of dynamic systems should not be slowed down by the need to also touch stable systems ?Overlaps (., “Billing” in displayed example) are potential hazards since changes required in the dynamic ponents may cause instability in mission critical stable systems Order entry Tariff planning ... A/R Fraud detect. ... Billing (incl. tariff definition call rating, invoice dispatch Dynamic Stable 239 Source: McKinsey TECHNOLOGY INFRASTRUCTURE ANALYSIS 4 A/R MQ Series Sybase TCP/IP UNIX SUN Billing Crossworlds Oracle TCP/IP Windows NT Tandem Call collection DB2/2 DECNET Open VMS DEC VAX Sybase Intel Server IPX Windows NT MQ Series Order entry ... ... ... ... ... ... Common underlying system platform/OS Common middleware Common underlying hardware/ technical infrastructure Common work A/R Billing Contract mgmt. Call collection Order entry Common database platform Contract mgmt. MS Access IPX Windows NT IBM 486 PC Crossworlds Application Middleware Database Network Operating system Hardware ? Share the development of mon business services to reduce the amount of unique application programming required in order to streamline development of new applications ? Introduce strict layering in the technology stack to avoid interdependencies and unwanted sideeffects when changing parts of the infrastructure Current reality: Multiple stacks of technology Application Middleware Database Network Operating system Hardware Future vision: Layered architecture with mon technology standards Deter mine number of different tech nologies per stack 240 Source: McKinsey LAYERS OF TECHNOLOGY 4 Protects business investments Hardware (PCs, servers, mainframes, works, peripherals) Operating systems (Desktop, midtier, mainframe, transaction monitors) Network (File sharing, terminal access, DB access) Database (Relational, hierarchical, object oriented, data warehouse) Middleware Services (Security, logging, data access, event management) Office Automation / Workflow (Groupware, word processing, spreadsheets, graphics) Leverages technology Applications (Financial, operational, analytical) ? Applications are the programs that support the business and processes. ? The Office Automation Suite / Workflow is a set of integrated programs that are designed to enhance personal productivity and the flow of work in the business ? The Middleware Services provide a mon set of services and interfaces between the applications and the rest of the technology ? The Database manages and provides access to the data ? The Network is the hardware and software that connect the puters and allow for the transfer of information ? Operating Systems are programs that control the most basic resources of the hardware ? Hardware is the puters and workstations that run the business applications 241 Source: McKinsey Number of different technologies per stack TECHNOLOGY STACK SUMMARY 10201015151050Impact on the anization: ?Increased plexity of systems ?Staff required for each ponent ?Development teams must integrate with each ponent Increased cost to the anization: ?Cost of increased staff ?Cost of increased integration requirements ?Cost of products ?Lost opportunity for volume discounts Applications Office automation/ workflow Middleware services Databases