| Competing in today's fast-paced environment prompts | | | | efficiency ratio (NER); average length of call; and |
| operators to rethink their fundamental business models. | | | | average set-up time. Other in-network metrics may be |
| Such shifts in the telecom market include deregulation; | | | | taken into consideration such as service usage and |
| prevalence of new technologies; and changing | | | | trends based on application performance such as |
| subscriber expectations and new, nontraditional | | | | prepaid service success and failures. The firm may |
| competitors. | | | | also look into the SLA management with operators |
| In order to adapt to such changes, identifying the right | | | | with KPIs for service quality like ASR, NER, average |
| Key Performance Indicators (KPIs) is a critical step in | | | | set-up time and abnormal call release. Other metrics |
| business network optimization. KPIs are able to provide | | | | like service usage and trends based on the |
| operators quantifiable rubric that are necessary for | | | | performance of an application like for instance the |
| long-term profitability. Being able to identify, measure | | | | number portability may be taken into account. |
| and manage the right KPIs sets the demarcation line | | | | In terms of network-wide monitoring system, firms are |
| between the success and failure of a firm. | | | | to collect signaling data to generate xDR (call |
| Today's networks are multi-technology hybrids which | | | | transaction/session detail records). xDRs are used to |
| sources its equipment from a variety of vendors. Each | | | | calculate signaling-based KPIs to solve problems of |
| element has its specified method of data collection. | | | | operators. It is in effect a centralized monitoring and |
| And, correlating each data from multiple sources | | | | performance solution to operators which can generate |
| poses significant challenges like synchronizing collection | | | | a network-wide multi-protocol trace for troubleshooting |
| intervals; managing diverse data types and formats; | | | | and diagnostics. |
| and standardizing data aggregation. | | | | The information derived from signaling-based KPI data |
| On the other hand, even if all network equipment is | | | | can be leveraged across the organization-from |
| supplied by the same vendor, it does not guarantee | | | | operations to marketing departments in order to drive |
| that data production and delivery process are | | | | profitability and improve work flow. Operators, now |
| consistent in all products. The result may be an | | | | becomes proactive instead of being reactive due to |
| incoherent mix of data from multiple measurement | | | | the fact that signaling-based KPI alerts them of |
| sources which may not provide viable solutions to | | | | business and network related issues. |
| operators seeking quality of service in its | | | | Signaling-based KPI data offers a diagnostic overview |
| network-wide operations. Furthermore, the variety of | | | | of the entire network's health. The network's ability to |
| portfolio services that telecom companies | | | | analyze the quality of service and usage patterns aids |
| provide-voice, video and beta, across networks are | | | | operators to determine profitability based on income |
| using a wide array of technologies, protocols and | | | | rather than on a usage basis. Being able to analyze |
| access types. Unifying these services requires proper | | | | customer usage patterns on a per region and |
| combination of network elements. Operators also need | | | | end-point gives viable information to the company to |
| to negotiate with partner networks through | | | | create a more targeted marketing plan that in the end |
| inter-operator agreements in order to meet service | | | | would yield the company's profitability. Moreover, it |
| performance and satisfy customer expectations. | | | | gives customer care centers the information they |
| Data collection issues echo throughout the business. | | | | need to isolate and resolve network problems in a |
| Inefficient data collection automatically impacts | | | | quick and efficient manner. Furthermore, issues such |
| negatively the firm's short and long term business | | | | as fraud, interconnect issues, and other resources of |
| objectives, customer relationships and network planning | | | | revenue leakage can be addressed in real-time hence, |
| and optimization. | | | | allowing operators to minimize the impact. |
| KPI Management Model: Measure, Manage, Monetize | | | | The KPI Management Model can also be utilized to |
| The KPI Management model consists of measuring, | | | | formulate performance and management system. A |
| managing and monetizing data. It offers a systematic | | | | comprehensive review of the entire network will be |
| approach to continuously improve the processing of | | | | able to provide a real-time network traffic that is |
| selected KPI data. The model has three important | | | | directly related for ensuring network optimization, |
| steps namely, identify the most important KPI for | | | | evolution, profitability and business innovation. KPIs |
| improving efficiency and profitability; validate the quality | | | | enable the firm to assess its performance through the |
| of the network data utilized to develop the KPI metrics; | | | | quantifiable metrics indicated in the model. The data |
| and leverage the KPI data across the right | | | | can be leveraged across the operator's organization |
| organization to formulate decisions geared towards | | | | for them to be able to make informed, intelligent |
| realization of business goals. | | | | business decisions. |
| Let's say a telecommunications firm would like to | | | | The adaptation of the measure-manage-monetize |
| focus on network optimization. The firm must look into | | | | scheme of the KPI management model will be able to |
| network performance metrics. The KPIs that the firm | | | | assist operators to diagnose their system to support |
| identified are: answer seizure ratio (ASR); network | | | | and achieve their short and long term business goals. |