Pipeline Publishing, Volume 5, Issue 5
This Month's Issue:
What's New in
Performance Management?
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Enabling Innovation with
KPI-based Service Management

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By Horacio Miranda De Oliveira

Operator Key Performance Indicators (KPIs)

Operators encounter it daily: They work to provide their subscribers with the highest-quality end-to-end service for increasing revenue associated with voice, video, and data. In doing so, they must manage a hybrid network consisting of different equipment types from countless vendors, various troubleshooting and diagnostic tools, numerous operator interconnect agreements, and a plethora of performance data. All this while trying to integrate accurate and consistent performance data into multiple business entities within their operation – to maximize network and business performance.

Identifying, measuring, and managing the right Key Performance Indicators (KPIs) can be the difference between growth and prosperity – or decline and failure. The KPI management model (Measure-Manage-Monetize) allows operators to maximize the benefit from collected data by offering a systematic approach to continuously improve the process of collecting, analyzing and utilizing selected KPI data. The model:

  1. MEASURES KPIs that matter for each entity within the business that will improve efficiency and profitability.
  2. MANAGES, or creates, a process to gather information from the KPIs and feeds that information into multiple organizations within the business. The quality of the network data being used is then validated in order to develop and leverage KPI data across the right organizations to make decisions that improve the business.
  3. MONETIZES or develops plans to understand and leverage financial metrics such as service growth rates, Capital Expenditure (CapEx), and Operating Expenditure (OpEx) investment needs.

Meeting service performance and customer satisfaction metrics in such a multi-technology environment is extremely challenging – especially since operators don't necessarily own and operate the end-to-end transport network and access networks.



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Operator Challenges: Difficulty Collecting Data

In the face of deregulation, changing service requirements, new technologies, industry consolidation, and competition from non-traditional telecom providers, operators must determine the KPIs that are most important within their own organizations.

Today's operators provide a portfolio of services - voice, video, and data over both wireless and wireline networks. Many of these services traverse partner networks via inter-operator agreements. Meeting service performance and customer satisfaction metrics in such a multi-technology environment is extremely challenging – especially since operators don't necessarily own and operate the end-to-end transport network and access networks.

In a recent poll, conducted during a Tekelec webinar, operators were asked:

"What are the major challenges that you face in generating useful KPIs for business workflow?"

Figure 1


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