Page 499 - Handbook of Modern Telecommunications

4-30 CRC Handbook of Modern Telecommunications, Second Edition

4.3.2.1.3 Optimization
The ability to measure and predict return on investment (ROI) is something that corporations find dif-
ficult to perform rapidly. These measurements indicate the health of the corporation, and the ability to
determine them rapidly allows a corporation to change its direction with minimal loss. Other examples
of the need for optimization include the ability to determine the most efficient channels for contacting
customers, target the appropriate customers for a corporation’s product mix, and identify new product
opportunities before the competition.
4.3.2.1.4 Technology Constraints
Unfortunately, most information systems at telecommunications companies are built around the prod-
uct strategy business model. This has resulted in a variety of product-oriented systems that effectively
run day-to-day operations. Carriers struggle with their existing patchworks of general-purpose data
warehouse solutions to store and analyze the mountains of data they create every day. Large networks
and their associated switches, billing systems, and service departments can generate hundreds of mil-
lions of terabytes daily. These terabytes of dynamic customer data will continue to grow exponentially
as carriers add new services and as IP-based traffic increases. This ever-expanding volume of data puts
a strain on the performance capabilities of today’s traditional relational databases, servers, and storage
systems, which provide the foundation for Business Intelligence (BI; see Figure 4.3.2).
Customer demand for new services, such as third-generation wireless networks, consolidated billing,
and consistent and reliable service, has been affected by technology limitations. The difficulties created
by legacy back-office systems, known as Operational Support Systems/Business Support Systems (OSS/
BSS), are primarily rooted in their complexity, scale, rigid operational requirements, lack of interoper-
ability, and lack of service focus. This has led to enormous challenges when attempting to deploy new
services and adapt to rapidly changing customer needs.
In the past decade, the service providers have spent significant resources and energy installing sys-
tems for operations management and business process automation both for business and operational
support. However, the complex questions that need to be answered go beyond any one operational sys-
tem. Today telecommunications companies might know who their customers are, and are marginally
effective in marketing new services to them. However, few of them are equipped to know who their
profitable customers are, which services these top customers use that make them profitable, and which
marketing campaigns can be targeted to this segment.

Service Delivery Service Assurance Service Usage
Business Customer, Employee & Supplier Portals
Management Layer
Service
Order Problem Level Business
Entry Billing
Management Management Assurance Intelligence
Service Management Management
Layer
Process Orchestration & Messaging Layer

Service Inventory Performance Fault Usage
Network Management Activation Management Management Management Mediation
Layer

Element Management
Layer Service Provider Network Infrastructure
Network Layer

FIGu RE 4.3.2 Telecom enterprise architecture.