Benefit From Data Through a KPI Management Model

 Competing in today's fast-paced environment prompts operators to rethink their fundamental business models. Such shifts in the telecom market include deregulation; prevalence of new technologies; and changing subscriber expectations and new, nontraditional competitors.

In order to adapt to such changes, identifying the right Key Performance Indicators (KPIs) is a critical step in business network optimization. KPIs are able to provide operators quantifiable rubric that are necessary for long-term profitability. Being able to identify, measure and manage the right KPIs sets the demarcation line between the success and failure of a firm.

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Today's networks are multi-technology hybrids which sources its equipment from a variety of vendors. Each element has its specified method of data collection. And, correlating each data from multiple sources poses significant challenges like synchronizing collection intervals; managing diverse data types and formats; and standardizing data aggregation.

On the other hand, even if all network equipment is supplied by the same vendor, it does not guarantee that data production and delivery process are consistent in all products. The result may be an incoherent mix of data from multiple measurement sources which may not provide viable solutions to operators seeking quality of service in its network-wide operations. Furthermore, the variety of portfolio services that telecom companies provide-voice, video and beta, across networks are using a wide array of technologies, protocols and access types. Unifying these services requires proper combination of network elements. Operators also need to negotiate with partner networks through inter-operator agreements in order to meet service performance and satisfy customer expectations.

Data collection issues echo throughout the business. Inefficient data collection automatically impacts negatively the firm's short and long term business objectives, customer relationships and network planning and optimization.

KPI Management Model: Measure, Manage, Monetize

The KPI Management model consists of measuring, managing and monetizing data. It offers a systematic approach to continuously improve the processing of selected KPI data. The model has three important steps namely, identify the most important KPI for improving efficiency and profitability; validate the quality of the network data utilized to develop the KPI metrics; and leverage the KPI data across the right organization to formulate decisions geared towards realization of business goals.

Let's say a telecommunications firm would like to focus on network optimization. The firm must look into network performance metrics. The KPIs that the firm identified are: answer seizure ratio (ASR); network efficiency ratio (NER); average length of call; and average set-up time. Other in-network metrics may be taken into consideration such as service usage and trends based on application performance such as prepaid service success and failures. The firm may also look into the SLA management with operators with KPIs for service quality like ASR, NER, average set-up time and abnormal call release. Other metrics like service usage and trends based on the performance of an application like for instance the number portability may be taken into account.

In terms of network-wide monitoring system, firms are to collect signaling data to generate xDR (call/transaction/session detail records). xDRs are used to calculate signaling-based KPIs to solve problems of operators. It is in effect a centralized monitoring and performance solution to operators which can generate a network-wide multi-protocol trace for troubleshooting and diagnostics.

The information derived from signaling-based KPI data can be leveraged across the organization-from operations to marketing departments in order to drive profitability and improve work flow. Operators, now becomes proactive instead of being reactive due to the fact that signaling-based KPI alerts them of business and network related issues.

Signaling-based KPI data offers a diagnostic overview of the entire network's health. The network's ability to analyze the quality of service and usage patterns aids operators to determine profitability based on income rather than on a usage basis. Being able to analyze customer usage patterns on a per region and end-point gives viable information to the company to create a more targeted marketing plan that in the end would yield the company's profitability. Moreover, it gives customer care centers the information they need to isolate and resolve network problems in a quick and efficient manner. Furthermore, issues such as fraud, interconnect issues, and other resources of revenue leakage can be addressed in real-time hence, allowing operators to minimize the impact.

The KPI Management Model can also be utilized to formulate performance and management system. A comprehensive review of the entire network will be able to provide a real-time network traffic that is directly related for ensuring network optimization, evolution, profitability and business innovation. KPIs enable the firm to assess its performance through the quantifiable metrics indicated in the model. The data can be leveraged across the operator's organization for them to be able to make informed, intelligent business decisions.

The adaptation of the measure-manage-monetize scheme of the KPI management model will be able to assist operators to diagnose their system to support and achieve their short and long term business goals.