accelerating and optimizing returns on telecom network capital investments

37
Accelerating and Optimizing Returns on Telecom Network Capital Investments Gaea Global Technologies July 2015

Upload: gaea-global

Post on 14-Apr-2017

626 views

Category:

Technology


0 download

TRANSCRIPT

Page 1: Accelerating and Optimizing Returns on Telecom Network Capital Investments

Accelerating and Optimizing Returns

on Telecom Network Capital Investments

Gaea Global TechnologiesJuly 2015

Page 2: Accelerating and Optimizing Returns on Telecom Network Capital Investments

Gaea is a high-end consulting firm founded in 2007.

Founders are ex-Oracle with strong backgrounds in architecture, product development, and

system implementation.

Gaea is an OraclePlatinum Partner.

Fewer than 5% of all Oracle partners are Platinum.

Page 3: Accelerating and Optimizing Returns on Telecom Network Capital Investments

OracleValue Chain Execution

Oracle Inventory, Warehouse Management

Oracle Primavera

Enterprise Portfolio Management,Project & Resource Management,Cost Controls

Oracle Value Chain Planning

Demand Management,Advanced Supply Chain Planning

Oracle Business Intelligence

Project Analytics,Supply Chain Analytics

Page 4: Accelerating and Optimizing Returns on Telecom Network Capital Investments

We have over 100 implementations around the

world and our clients manage over $10B in capital projects using our solutions.

Page 5: Accelerating and Optimizing Returns on Telecom Network Capital Investments

High TechIndustrial ManufacturingEnergy / Natural ResourcesPublic SectorHealthcare / Life SciencesInfrastructure

WSP

Google Bombardier

World Pay

UPMC Healthcare

Denver International Airport

YahooCisco

Facebook

MTN Telecom

Dong Energy

Petrobras

Zebra Technologies

Tenega PowerGunung Sewu

Dragon Oil

NPCILL&T

World WideTechnology

BG

Florida Power & Light

MGM Grand

Huawei

ShutterflyVoltas

Integra Life Sciences

Partial Client List

Telekom Indonesia

Bharat Broadband Network Limited

Page 6: Accelerating and Optimizing Returns on Telecom Network Capital Investments

What are the current trends in the

telecom industry?

Page 7: Accelerating and Optimizing Returns on Telecom Network Capital Investments

2014

2015

Page 8: Accelerating and Optimizing Returns on Telecom Network Capital Investments

Average enterprise bandwidth will increase

20% to 50%per YEAR

Source: Gartner

Page 9: Accelerating and Optimizing Returns on Telecom Network Capital Investments

GROWTH DRIVER:Operators want to

improve coverage and add data capacity to

meet video and smartphone traffic.

Page 10: Accelerating and Optimizing Returns on Telecom Network Capital Investments

New construction of 4G networks in:

LatinAmerica

Africa

EasternEurope

India

Carriers in India are expected to invest in voice and data networks after regulatory uncertainty on mobile licenses subsides.

5%growth

Page 11: Accelerating and Optimizing Returns on Telecom Network Capital Investments

Source: Gartner

Page 12: Accelerating and Optimizing Returns on Telecom Network Capital Investments

10

8

6

4

2

0

Source: EY

RO

IC (

%)

2006 2007

Europe Asia-Pacific

2008 2009 2010 2011 2012 2013

The revenue and growth opportunities are on the uptick, however there is increased downward pressure on profitability. Margins are thinner due to increased competition and larger capital investment in newer markets. Figure shows pressure on return on invested capital for telecom operators.

Revenue Potential and Growth Areas are excellent but profitability is still under pressure…

Page 13: Accelerating and Optimizing Returns on Telecom Network Capital Investments

Telecoms that understand and manage operational, financial, and strategic risk have a greater chance of profitable growth.

Red = risk mitigation using EPPM

Top 10 Telecomm Risks

Source: EY

Page 14: Accelerating and Optimizing Returns on Telecom Network Capital Investments

How do we mitigate risk on

large-scale capital projects?

Page 15: Accelerating and Optimizing Returns on Telecom Network Capital Investments

Integrated enterprise project and portfolio

management is central to managing risks in the

telecom industry.

Page 16: Accelerating and Optimizing Returns on Telecom Network Capital Investments

Capital –> Asset Flow Perspectives

Page 17: Accelerating and Optimizing Returns on Telecom Network Capital Investments

Doc.Mgmt.

An EPPM-centric Solution Architecture Map for the Telco Industry

Demand Management Advanced forecasting, and demand modelingConfigure to order forecast, S&OP

Finance and AccountingFunding, portfolio cash flow, long-range forecasts

Project information managementEngineering items and BOM product workbench

Mobile Device Updates

Project Information ManagementEngineering items and BOM product workbench

Management DashboardsRevenue shaping, executive summary, project analytics

Risk AnalysisRisk registers, risk analytics

Advanced Planning and Command CenterException analysis, analytics, supply and demand

Purchasing and ProcurementPurchase orders, requisitions, invoices

Supply Chain and MDMSupply chain planning, inventory optimization, asset data repository

EPPM

CRMCustomer Relationship Management

Geospatial RepositoriesSpatial representation of network assets

Oracle Primavera P6

Oracle Primavera Unifier

Page 18: Accelerating and Optimizing Returns on Telecom Network Capital Investments

AssetsCapital Expenditure

Revenue

MaintenanceRevenue

OperationalExpenditure

Portfolio Management• Business case• Investment analysis• Decision gates• Go / no

DEVELOPProject Execution• Schedule

management• Cost control• Change

management

CONSTRUCTPLAN• Work and cost

planning• Resource capacity

planning• Document exchange

and control• Vendor selection• Risk analysis

OPERATEOperationsNetwork Asset Lifecycle Management • Break fix• Asset manager• Routine

maintenance• Corrective

maintenance

Capital to Asset flow: an illustration…

Page 19: Accelerating and Optimizing Returns on Telecom Network Capital Investments

• Select where your capital is going to be deployed, technology / growth drivers and establish program structures

• LRF capital planning and funding allocation to programs

• Identify regulatory, operational, financial risks

• Closed-loop / lessons learned on completed / in-process programs

Bu

sin

ess

Dri

vers

• Ideation, program alignment with strategic goals, portfolio management

• Capital planning, LRF with other organizational initiatives

• Market analysis, program-level capital spending approvals

• High-level resource / capacity – demand analysis, bidding / procurement framework

• Program and portfolio risk

Optimal Outcomes:

CONSTRUCTPLAN OPERATEDEVELOP

Page 20: Accelerating and Optimizing Returns on Telecom Network Capital Investments

Case Study: ideation at the largest telecommunications provider in Indonesia

Page 21: Accelerating and Optimizing Returns on Telecom Network Capital Investments

Disparate project tracking system silos

Business Challenges• Redundant information -> inconsistent and

unreliable information

• Difficulty reporting

• Weak executive visibility

• Lack of results accountability

• High TCO

• Difficulty driving and aligning projects with

corporate priorities

• Each department using disparate applications,

mostly Excel and manual processes

• Unable to effectively track projects

• Difficulty generating timely, accurate reports

• No dashboard capabilities

Operational Excellence

New Product Development

Business Transformation

Departmental Projects

IT PMO

Page 22: Accelerating and Optimizing Returns on Telecom Network Capital Investments

Ideation -> Conceptualisation -> Strategic Business Objectives

Collaboration

Coordination Standardisation

Single view, multiple

departments

Common data repositoryLargest telecomm

provider in Indonesia deployed

Primavera

Page 23: Accelerating and Optimizing Returns on Telecom Network Capital Investments

Implementation Objectives

• High operational efficiency through effective project planning and execution

• Better alignment of projects and

programs with strategic business objectives

• Standardization and consolidation of PPM governance

processes, reporting, and resource and financial management

• Deploy common tool accross the departments for program & project data

accuracy, cost savings, significant productivity gains, better control, improved project management, and service quality

• Promote collaboration across

departments to increase productivity

• Important stepping stone toward

integrated supply chain management (ISCM) implementation as

into one platform of EPPM

Bring value to client’s IT PPM and corporate business

Page 24: Accelerating and Optimizing Returns on Telecom Network Capital Investments

CONSTRUCTPLAN OPERATEDEVELOP

• Establish program-project hierarchies

• Funding – budgeting by project, identification of funding sources and approvals

• Identify and model cost impact (risks)

• Master schedule, project templates for builds / build types

Bu

sin

ess

Dri

vers

• Demand-planning, forecasting, supply-demand matching, customer collaboration

• Sales and operational planning, NPD and EOL planning, spare parts planning, estimation, budgeting, contingency management, bidding, vendor management

• Quantitative risk models on project execution, what-ifs, and EPI / benchmarking metrics of projects

• Program-project linkages, schedule management, schedule optimization, collaboration

• BOM, BOQ structures / templates for build / construction

Optimal Outcomes:

Page 25: Accelerating and Optimizing Returns on Telecom Network Capital Investments

Case Study: an integrated program schedule for a 22-country telecom rollout in Africa

Page 26: Accelerating and Optimizing Returns on Telecom Network Capital Investments

Basic problems faced when project management, demand planning, and procurement teams don’t share single source of truth and work in a non-integrated environment:

Accurate consolidated

demand

100% accurate, organization-wide consolidated procurement plan

Demand fulfillment status and

recommendations to project team

100% information to equip procurement team to leverage

economies of scale

Demand revisions from project team

Demand source information

Projects Project demandReal-time revised project demand

Demand fulfillment status and recommendations

Negotiated price information to project team

Non sourced demand

Inaccurate demand

No real-timeupdates

Inaccurate, non-consolidated procurement plan

Lack of real-time information

No information to project team

Dem

and

P

lan

nin

gP

roje

ct

Man

agem

ent

Pro

cure

men

t

1

2

3

4

5

6

7

8

9

10

Page 27: Accelerating and Optimizing Returns on Telecom Network Capital Investments

•Assess status of ongoing project in terms of schedule, cost, and profitability

•Total visibility and control of complete project lifecycle

•Nullify project delays

•Maximize savings

•Organization-wide consolidated demand from single source

•Reduce planning-cycle time

•Comprehensive distribution planning

•Increase planner productivity

•Reduce decision-making latency and manual errors

•Aggregate demand

•Leverage economies of scale

•Accurate information for negotiations

•Increase savings = increased revenue

•Reduce bottom-line cost to maximise profitability

Primavera EPPMDeriving organization-level, consolidated demand plan

Supply Chain and Procure to Pay Management Processing demands and execution

Benefits Project Management Demand Supply Procurement

DEMANDdetailed demand

PROCESSsupply recommended for demand

APPROVALsupply recommendations review/approval by planner

PROCUREexecution by procurement team

recommendations

consolidated demand

revised demand as per recommendations

procurement status

procurement status updates to projects

project-level

demandBU/country

-level demand

organization-level

demand

Page 28: Accelerating and Optimizing Returns on Telecom Network Capital Investments

Parent Org

Continent 1

Country 1

Region 1

BU 1

Project 1 Project 2 Project …

BU ..

Region 2

BU .. BU ..

Region …

BU .. BU ..

Region …

BU ..

Country 2

Continent 2

Country …

Continent 3

Hierarchical Representation of project structures

Page 29: Accelerating and Optimizing Returns on Telecom Network Capital Investments

1. Resource management by country.2. Resource rates maintained by country, for better control on

country based rates and revisions.3. Resource categorization.4. Master attribute management makes life of PMs much easier to

identify / search respective resources for a country and type.5. Easier to manage and maintain.6. Easier to restrict, maintain data accessibility to different users.

CategoryRegionCountryOrg

OrgUSA

NYCT-Comm

InfraOthers

India

Resource management in Primavera EPPM

Page 30: Accelerating and Optimizing Returns on Telecom Network Capital Investments

Primavera: consolidated demand verification and download

DEMAND VERIFICATION- Project demand will be prepared in P6.- The demand will be synced as and when a

project is baselined in P6.- Demand will be synced with following filters

1. Demand only for Active Projects2. Demand only for not started Activities3. Demand only for remaining quantity

Consolidated Demand

Project-level Demand

DEMAND FILE DOWNLOAD- Demand file will be of CSV or Excel format only

Page 31: Accelerating and Optimizing Returns on Telecom Network Capital Investments

Dem

and

P

lan

nin

gP

roje

ct

Man

agem

ent

Pro

cure

men

t

Consolidated demand

100% accurate organization-wide consolidated demand

Demand fulfillment status and

recommendations to project team

100% information to equip procurement team to leverage

economies of scale

Demand revisions from project team

Demand source information

Projects Project demandReal-time revised project demand

Demand fulfillment status and recommendations

Negotiated price information to project team

Source-based demand

100% accurate consolidated demand

Real-timeupdates

100% consolidateddemand

Real-time consolidated information

Updates to project team

End-to-end project lifecycle after enabling project management. Advantages of sharing single source of truth and integrated project management, demand planning, and procurement.

Page 32: Accelerating and Optimizing Returns on Telecom Network Capital Investments

Key benefits delivered for first of 21 rollouts• Implemented foundational project management practices• Consolidated demand extracted from Primavera EPPM

• Fixed unutilized inventory over $1.5B• Minimized overstocking & reduction in inventory-carrying cost• Increased project lifecycle transparency to all stakeholders • Improved project demand accuracy• Achieved on-time project milestones• Implemented portfolio reporting and dashboards

Page 33: Accelerating and Optimizing Returns on Telecom Network Capital Investments

• Centralized project and portfolio management repository

• Integrated planning, procurement, and supply chain views

• Program which will result in on-time delivery

• Transform project execution to realize revenue goals faster

• Objective view of projects in a complex construction landscape

• Centralized project management encompassing all projects showing inter and cross-dependency between BU, functions, and third parties

• Critical path management and constraint-based scheduling for key events, milestones, and activities

• Vendor/owner schedule collaboration and exchanges • Online collaboration and knowledge sharing between

control, build teams with extended collaboration to suppliers/contractors for online project status update in close to real time

• Track actual costs vs budget against project progress for full visibility of project performance

• Monitor production capacity vs. consumption on a regular basis to validate progress

• Validate progress against schedule, consumption, and cost• Objective view of project/program performance• Capture and understand risk items, mitigation steps, and

impact

Optimal Outcomes

CONSTRUCTPLAN OPERATEDEVELOP

Bu

sin

ess

Dri

vers

Page 34: Accelerating and Optimizing Returns on Telecom Network Capital Investments

Case Study: rolling out Primavera to manage the largest fiber-to-home deployment in the world

Page 35: Accelerating and Optimizing Returns on Telecom Network Capital Investments

• The operational aspect of this capital-asset transformation is where Primavera plays a vital role.

• The ability to conceptualize business plans, ideas and convert them into programs and projects across BUs and truly provide an enterprise view of how your capital investment is going to be deployed.

• The collaborative aspect of a unified solution that addresses the most efficient use of converting capital into managing projects/programs with strong cost control is going to produce assets fastest to-market in the most efficient way that will impact top-line revenue and bottom-line profit.

Page 36: Accelerating and Optimizing Returns on Telecom Network Capital Investments

Consumers expect a high-quality, end-to-end service experience from their provider.

and are key.

Page 37: Accelerating and Optimizing Returns on Telecom Network Capital Investments

Thank you.

Gaea Global, Inc.275 Moffett Blvd Suite A

Mountain View, CA 94043+1 844 987 4232

gaeaglobal.com