Take the Pain out of Telecoms Management Transformation

Case Analysis
By applying a holistic view on tools, processes and organization, operators can transform their BSS/OSS

systems into an integrated business tool for competitive differentiation and efficient operations. But it’s not

an easy task. A clear methodology and step-wise approach is needed.

The telecom market is changing faster and faster. For years operators have needed quick

solutions to cope with growing network and market demands; in response, they adopted a slew of new

technologies and systems to expand capacity and market share. Technological advances were the priority,

with little or no time for consolidating back office systems, for stepping back, for looking at the bigger

picture. That time has come. Many markets are maturing – leading to lower profit margins and a greater

need for efficiency in core businesses – and seeing the entry of many new competitors that blend

capabilities from the telecom, media and internet worlds. This market transition requires complete network

as well as telecom management transformations and consolidations, with a focus on faster time to market

for new differentiating services as well as on the customers’ usage experience. Yet this is not an easy task

for operators with hundreds of legacy systems all working on separate tracks. Facing changing consumer

and technological demands, companies are often stuck with costly telecom management systems and

processes that fulfill neither their current nor future needs.

At Ericsson’s own network operation centers, the company must perform a complete telecom

management transformation with each new network that it takes on to run, in order to bring it into line with

Ericsson best practices. These are daunting tasks, but we see hope. A proper telecom management

transformation can turn this patchwork liability into an efficient tool for both cutting costs and generating

revenue. This requires a change in mindset. A broader business view must now drive systems and

processes management, not technology. Most operators do recognize this challenge – and opportunity –

but remain unsure how to proceed. Businesses in these markets must focus more on their core business

efficiency and innovation. . In this way, an efficient operation is not only a competitive differentiator but also

a revenue generator. The easiest thing is to change the system; the hardest – and therefore the most

critical – is to change the mindset of the people and get them committed to, for instance, a new way of

working. Any type of change affects the people who work with the network. If they are not on board, you

don’t succeed. But knowing what to transform is only part of the story. The transformation must actually

take place with a clear vision for the entire organization. To do this, they must start by looking at the

business objectives needed to reach the company’s strategic vision. These business objectives will then

help determine the strategic transformation areas. The steps of the transformation might also target

business objectives as systems consolidation, operational efficiency and operations readiness in any

combination
Case Analysis:

Companies cannot consolidate hundreds of systems and processes overnight. The transformation

must evolve step by step, focusing on areas with the fastest payoff, with the target architecture, or master

plan, as a final goal. Within the greater transformation program, operators and their vendors must identify

strategic transformation areas, such as problem and change management, revenue assurance practice,

service-centric monitoring based on service models, customer product/experience management or service

agility. To do this, they must start by looking at the business objectives needed to reach the company’s

strategic vision. Often operators do not have a clear strategic vision and may need help from a partner to

craft that vision. These business objectives will then help determine the strategic transformation areas. The

planning process for each transformation area must address total cost of ownership, operational

expenditure and time-to-market. The steps of the transformation might also target business objectives as

systems consolidation, operational efficiency and operations readiness in any combination. This type of

type of decision making analysis falls under rational decision making model.

Rational Decision Making provides a structured and sequenced approach to decision making. Using

such an approach can help to ensure discipline and consistency is built into your decision making process.

This approach brings logic and order to decision making.

A rational decision making model presupposes that there is one best outcome. Because of this it

is sometimes called an optimizing decision making model. The search for perfection is frequently a factor

in actually delaying making a decision. The main strength of a rational decision making model is that it

provides structure and discipline to the decision making process. It helps ensure we consider the full range

of factors relating to a decision, in a logical and comprehensive manner. Rational decision making model
 attempts to negate the role of emotions in decision making. The principle assumption of the rational

decision making process is that human beings make rational decisions. Judgment, intuition, experience

and knowledge all come together when making decisions.

The Classical Model Traditional description of management that focused on its formal functions of

planning, organizing, coordinating, deciding and.

Classical model of decision making: a prescriptive model that tells how the decision should be

made.

o Assumes managers have access to all the information needed to reach a decision.

o Managers can then make the optimum decision by easily ranking their own preferences

among alternatives.

Recommendation:

Transformation is a complex journey that starts in the board room of every operator and

needs to be undertaken with a holistic view. This change will affect all the areas of the business –

that’s why it needs to be study and understand clearly so that the business strategy and

operation of the company will not hamper. In view of this, the management should be

knowledgeable of the entire operation in order to forecast some problems that might arise if they

have chosen a particular solution. There must be a person who can take a holistic view and implement a
specific step-by-step methodology that avoids dangerous pitfalls and guides operators from a patchwork

past to a converged future.