Revenue Assurance

Industry Update
BUSINESS
Webinar, December, 2014 PROTECTION

Dr. Gadi Solotorevsky

CTO – cVidya Networks
Ambassador, Distinguished Fellow and RA Team
Leader – TM Forum

© 2014 – PROPRIETARY AND CONFIDENTIAL INFORMATION OF CVIDYA

What's New

 Statistics & Surveys

 RA best practices
 New Businesses Models

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What do you estimate your revenue and
fraud leakage to be?

Source: Global revenue assurance survey 2013, E&Y

3
Leakage as a Percentage of Revenue

Source, TM Forum, Revenue Assurance Survey 2012

Source: KMPG Global Revenue Assurance Survey, 2012,

101 respondents
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TM Forum Revenue Assurance KPI Study - 2011

Detected Leakage % of
Recoverable and Unrecoverable
revenues
% of un-recovered revenues
Revenues Leakage detected
Recoverable Unrecoverable

Recovered %
98% 43%
Recovered Unrecovered
2%
57%

69%
31%

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Percentage of Leakage Recovered

Source: Global revenue assurance survey 2013, E&Y

6
The RA Department

Source, TM Forum, Revenue Assurance Survey 2013

7
FTE in the RA Department

Source, TM Forum, Revenue Assurance Survey 2013

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Main objective of RA functions

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Source: KMPG Global Revenue Assurance Survey, 2012, 89 respondents
RA Activity Distribution

Source, TM Forum, Revenue Assurance Survey 2012

10
RA Involvement in Change Processes

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Use of Best Practices1

Use of RA Best Practices Documents by TM Forum Members

20 Respondents, 180 Indications less 38 N/A = 142

(16) (16) (16) (16) (16) (16) (16) (15) (15)

100%

31% 20%
44% 44% 38% 38% 40%
63% 56%
47%
44% 50% 38% 33%
44% 38%
31% 38%
25% 27% 33%
13% 19% 19% 19%
0% 6% 6%
GB941-B (RAMM) GB941 Guidebook TR131 GB941-E [1] GB941-D GB941-A (RASK) GB941-E [3] GB941-E [2] GB941-C RFX

Not familiar with it and not using it Familiar with it but not using it Familiar with it and using it

1: Source, TM Forum, Revenue Assurance Survey 2012

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TM Forum RA Best Practices

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RA Maturity Model (RAMM)

 Widely used by the industry

 A blueprint to improve RA operations
 Internal and external benchmarking
 Based on Capability Maturity Model (CMM) principles
Use of RA Best Practices Documents by TM Forum Members
20 Respondents, 180 Indications less 38 N/A = 142

(16) (16) (16) (16) (16) (16) (16) (15) (15)

100%

31% 20%
44% 44% 38% 38% 40%
63% 56%
47%
44% 50% 38% 33%
44% 38%
31% 38%
25% 27% 33%
13% 19% 19% 19%
0% 6% 6%
GB941-B (RAMM) GB941 Guidebook TR131 GB941-E [1] GB941-D GB941-A (RASK) GB941-E [3] GB941-E [2] GB941-C RFX

Not familiar with it and not using it Familiar with it but not using it Familiar with it and using it

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Revenue Assurance Maturity Model
Provides a method to assess the maturity of business activities that should
deliver revenue assurance objectives based on a quantitative maturity model
Maturity Model Assessment Areas:
Organization Process Measurement Technology

RA strategy RA planning & review Measurement framework Technology strategy

RA objectives, goals & incentives Use of risk management RA control structure Technology acquisition
techniques
Organizational fit Risk mitigation Functionality of RA toolset
Change management involvement
Sponsorship, ownership, RA control coverage & data quality Access to information
& sign-off
accountability and responsibility of
Leakage & benefits Data analysis
RA In-life product reviews
RA control efficiency Use of RA technology
Skill set of RA team Operation of primary controls
RA control effectiveness Ease of use
Business knowledge Operation of secondary controls
RA productivity metrics Degree of automation
Relationship with other Investigation of discrepancies
departments Unmeasured leakage Revenue coverage
Correction of identified issues
Staffing levels Supplier management
RA reporting
Communications
Adoption & sharing of industry best
practice
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The TM Forum RAMM2

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The TM Forum RAMM2

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 TM Forum - Revenue Assurance Metrics
Data Quality Revenue Leakage RA Process Effectiveness
Percentage of validated data Percentage of customer bills adjusted in a bill cycle Percentage of the recovered revenue value

Percentage of customers included to Percentage of Unbilled and Underbilled Revenue over Quantitative description of the recovered revenue
reconciliation Total Revenue value

Percentage of misaligned data records Value of Unbilled and Underbilled Revenue over Total Quantitative description of the recoverable
Revenue revenue value
Percentage of misaligned customers Percentage of Billable xDRs suspended or Percentage of the recoverable revenue value
errored/Total xDRs
Ratio of Billing xDRs Records to Network xDRs Quantitative description of the average time for
Records recovery of revenue
Percentage of errors on Fulfillment orders Percentage of xDRs successfully recovered,
processed and billed after recycling over Total xDRs

Quantitative description of the cost of assets that Percentage of Recovered and Recoverable
were unused or stranded Customer Revenue over Total Revenue

Percentage of Verified and Accepted 3rd Party Quantitative description of the unfilled error fixes
Settlement Reports over Total S/P Settlement Reports orders
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 Revenue Assurance Metrics, 2015 planned changes
Data Quality Revenue Leakage RA Process Effectiveness
Percentage of validated data Percentage of customer bills adjusted in a bill cycle Percentage of the recovered revenue value

Percentage of customers included to Percentage of Unbilled and Underbilled Revenue over Quantitative description of the recovered revenue
reconciliation Total Revenue value

Percentage of misaligned data records Value of Unbilled and Underbilled Revenue over Total Quantitative description of the recoverable
Revenue revenue value
Percentage of misaligned customers Percentage of Billable xDRs suspended or Percentage of the recoverable revenue value
errored/Total xDRs
Ratio of Billing xDRs Records to Network xDRs Quantitative description of the average time for
Records recovery of revenue
Percentage of errors on Fulfillment orders Percentage of xDRs successfully recovered,
processed and billed after recycling over Total xDRs

Quantitative description of the cost of assets that Percentage of Recovered and Recoverable
were unused or stranded Customer Revenue over Total Revenue

Percentage of Verified and Accepted 3rd Party Quantitative description of the unfilled error fixes
Settlement Reports over Total S/P Settlement Reports orders
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Revenue Assurance Metrics, 2015 planned changes

Cost Assurance Maturity and Risk

Percentage of over payments to 3rd parties Maturity of Revenue Assurance operations as defined
in GB941-B V.2.
Percentage of over payments of Change in the Maturity of Revenue Assurance
commissions and incentives operations

Percentage of discounts, goodwill credits, RA residual risk level as defined in GB941-E

adjustments
Percentage of unjustified discounts, Risk reduction following RA controls as defined in
goodwill credits, adjustments value GB941-E
RA coverage as defined in GB941-E

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TM Forum - Big Data Analytics Catalyst
1. Harnessing the power of Big Data
Analytics to improve customer
experience and achieve business
growth
2. Defining and implementing a new and
innovative concept for a unified
Analytics Big Data Repository (ABDR)
3. ABDR supporting multiple big data use
cases and commercial data analytics
systems, while avoiding data
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replications
TM Forum - Analytics Big Data Repository (ABDR)

 A new and innovative concept!

 A unified layer that can supports multiple use-case and multiple analytics
systems
 Key Benefits:
− Avoiding data replications
− Saving in ETL costs/time
− Savings in hardware (storage & processing power)
− Faster time to implement new use-cases

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Future trends
Revenue Assurance

Area or Problem Space Traditional Focus Future Trend

Complex mobile data plans with usage limits,

Relatively simple bills with bundled services to
Mobile Billing Sophistication shared family plans. Onus moves to optmize
verify rating and usage.
prices for specific lifestyle plans

Prepaid and charging require an inordinate Market adopts centrally managed, but distributed
Charging Complexity amount of revenue assurance due to multiple charging systems. Hybrid model allows postpaid
platforms on the backend. subs to pay for certain content/services on the fly.

End-to-end processes that assure the customer

Targeted Areas of Process Order-to-Provision
experience in niches the business chooses to be
Improvement & Bill-to-Cash
excellent in
VIPs across Enterprise, Consumer and Partner
Consumers and Small Business
Customers to Assure Markets (including group and hierarchical
(single account)
accounts)
3) Margin Analysis
1) Data Completeness & Accuracy
RA Maturity Dimensions 4) Cash Flow /Dispute Management
2) Rating Excellence
5) VIP Customer Synchronization

RA departments play limited role in enterprise Expanding enterprise portfolio in wireless, cloud
Enterprise billing business due to complexity of custom contracts and IT outsourcing will require assurance
and subaccount hierarchies monitoring, particularly to mid-sized enterprises.

23 Source, TRI, The Telecom Analytics & Big Data Solutions Market, 2014
RA and New Business Models

 Business models and products are changing

− Flat rates
− LTE
− Family plans
− Sponsored data
− Privileged data (?)
− QoS on demand
− Data exchange
− M2M / IoT
How does it affect RA?

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France – will LTE remain premium?

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Sponsored Data

Source: http://www.att.com/gen/press-room?pid=25183&cdvn=news&newsarticleid=37366&mapcode=
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Data Exchange

Source: http://www.telecomasia.net/content/china-mobile-hk-opens-data-exchange-platform
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Verizon “Share Everything” Data Plan 12/2013

Source: http://www.verizonwireless.com/b2c/plan-information/?page=share-everything
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Questions?

[email protected]

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THANK YOU!
www.cvidya.com