iu telco it telecom asia hk 161110 final ver 2

8/8/2019 IU Telco IT Telecom Asia HK 161110 Final Ver 2

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Managing Change Processes of Core

Systems Effectively

Indra UtoyoDirector of IT and Supply (CIO)

PT. Telekomunikasi Indonesia, Tbk.

Telco IT Conference - QUESTEX Media,Regal Hotel Causeway Bay Hongkong, November 16, 2010


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3. Managing Change of Core Systems in TELKOM

2. Challenges

1. Introduction

5. Lessons Learned

4. Roadmap and Timelines

Agenda


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TELKOM is an InfoComservice provider in

Indonesia, owned by

the government of

Indonesia (52.47%)

and public

shareholders(47.53%).

TELKOM listed in the IndonesiaStock Exchange (ISE), London

Stock Exchange (LSE) and New

York Stock Exchange (NYSE) in

November 14, 1995.

and also Publicly Offering

Without Listing (POWL) at

Tokyo Stock Exchange (TSE)

The largest publicly listed

company in Indonesia

(Total shares =20,159,999,280, including

1 Dwiwarna share series

A)

Market Capitalization as of

4th Oct 2010 is Rp.197Tn or

USD 21,5 bn or 7% of total

market cap. at IDX

as of October 4th, 2010

No.1 cellular operatorwith 52% market share,with c. 90 M Subs

Operated by:

Market leader with

more than 90% market

share for fixed wireline

and 59% for fixed

wireless, c.25 M Subs

New wave businesswith significant growth

Operated by Multimedia Division and

Subsidiaries :

Property, telcoinfrastructure, callcenter anddirectory, andprinting

Telkom Indonesia in Brief


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4

. and Indonesias Wireless Penetration is now

approaching a saturation stage ..

TotalIndustry (2009)

Cellular(full

mobility)

FixedWireline

Fixed Wireless(limited mobility) Broadband

Penetration

4%

Penetration

2%

Source: internal market research

Penetration

13%

TelkomMarket Share (2009)

99%

57%

46%

71%

Penetration

77%

+ 8.4 M + 30 M +180 M + 3.9 M

As of 31 March 2010

Penetration

90%

4th most populous nation

Population (2010) : approx. 234 millions

Household: (2010) : approx. 60 millions Large portion of Young dynamic population (productive age)


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3 Main Drivers of TELKOM

Transformation

3 Main Drivers to Current Transformational Change

Competition &

Regulation:-11 operators

-Margin eroding-Over The Top

-Transitional Regulation

-SOX compliance

Evolution of user

needs/ Lifestyle

&Technology:-Me Era

-Decoupling service

&network

-New form of

communication

CompetitiveSustainable Growth:

-legacy system &

network-Cost Transformation

-Telco Culture-New 2 Sided Biz

Model

1 2 3


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10 Strategic Initiatives at reflects TELKOM transformationin 4 areas : Business, Infrastructure & System, Organization

& HR, and Culture

6

CULTURE TransformationCULTURE Transformation

BUSINESSTransformation

BUSINESSTransformation

INFRASTRUCTURE& SYSTEMS

Transformation

ORGANIZATION& HR

Transformation

ORGANIZATION& HR

Transformation

1

2 3

4

Strengthen Core Business

SI-3. Invest in Broadband

SI-4. Integrate SME, EnterpriseSolutions & Invest inWholesale

SI-5. Invest in IT Services includinge-Payment

SI-6. Invest in Media &EdutainmentBusiness

SI-7 Invest in StrategicInternational Opportunities

Grow New Wave

SI-1. Optimizing FWL Legacy

SI-2. Consolidate & Grow FWA Businessand Manage Wireless Portfolio

SI-9. AlignmentBusiness

Structure &PortfolioManagement

SI-10. Transform

Culture

SI-8. IntegrateNGN &OBCE

FMM to TIMEFMM to TIME

TelkomTransformation


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2. Challenges

1. Introduction

5. Lessons Learned


Agenda


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Business and IT Imperatives

Improve overall customer experiences, ensuring consistency across channels

Manage effective, efficient, and profitable customer interaction

Gain customer insight, better understanding of current and future customer

needs

Seamless services across products, customer segments and customer interfaces Improve SLA on service activation & fault management

CustomerCustomerCustomerCustomer

CentricityCentricityCentricityCentricity

Improve responsiveness to customer needs of product and service

Accelerate product design and launch process Realign existing process and creation of new process effectively to

support dynamics in customer requirements

Time to MarketTime to MarketTime to MarketTime to Market

andandandandFlexibilityFlexibilityFlexibilityFlexibility

Drive healthy and sustainable top-line growth through continuousproduct

and services innovation

Achieve level of automation for commoditized processes, for cost reductionand releasing the resources and creating supportive environment to foster

innovation .

Provide resources, tools, and establish collaborative environment for product,

service, process, and organizational innovation

InnovationInnovationInnovationInnovation


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The Idea : From Reactive to Proactive

.from Silos to Integrated System

Service Operations

& Quality

Service Operations

& Quality Network OperationsNetwork OperationsCustomer ServiceCustomer Service

Complex, multi-vendor, multi-domain network

Standardized & Integrated INFUSION Application

360 view

NOC

C4


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Telkoms IT Transformation

Fragmented

Systems

Complex control

Reactive Mode Limited Maneuver

Fragmented Systems

Complex control

Reactive Mode

Limited ManeuverPastState

Fragmented

SystemsComplexcontrolReactiveModeLimitedManeuver Now&

Future

Unified System

Effective control

Proactive Mode

Flexibility

Capabilities

Integrated Business System

Simplified & Standardized Highly Configurable

INFUSION is all about IT Strategy for adapting and anticipating theradical business transformation .. and business is always change


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Why Its So Difficult

PEOPLE & ORGANIZATION

Reluctant to change, comfortable with current condition

Multiple interests

Cross functional changes, who is responsible ?

SYSTEM

Too many silos: network, server, products

Limited integration among the systems: OSS, BSS, CSS, ESS

Lack of architectural aspects

PROCESS

Changes rely on integrating many different process

The nature of change is not to have all the answers up-front

Lack of standardization or best practices adoption of common business processes

DATA & INFORMATION

Data integrity problem in many data sources of system

Data migration or transformation from legacy to new core systems

Radical business change always need the change of data layer

Transformations or Changes are not just about SYSTEMS

There is nothing more

difficult to take in hand,

more perilous to conduct, or

more uncertain in its success,

than to take the lead in the

introduction of a new order

of things.

NICCOLO MACHIAVELLI


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Infrastructure and System Transformation :Target Architecture and Service

IP Core

Broadband Access

Legacy Data Services

Class 4 & 5 Softswitch

Business/Consumer

VoBB

IN & Telephony Apps

Fixed Mobile

Convergence

IMS

SDP & NG OSS/BSS

New Services/Bundles

Wireline

IP Core/Backhaul

BWA/LTE

Legacy Data Services

MSC/MSCe

End-to-End VoIP

IN & Telephony Apps

Fixed Mobile

Convergence

IMS

SDP & NG OSS/BSS

New Services/Bundles

Wireless

Transformation toward enables convergence

s o ft P h o n eS IP IA DS IP P h o n eP O T S B ro a d b a n d

M o bile

M G W / T G WM S A NO A N

IP / M P L S B a c k b o n e

M S C L E xIM S S o fts w itc h

S T P

H S S

H L RS H L R

A p plic a tio n S e rv e r

S D P

M S C eM idd lew are

A p p lic a tio n

IP T ra n s p o rt

A k s e s L a y e rB S C

C P Es o ft P h o n e

S IP IA DS IP P h o n eP O T S B ro a d b a n d

M o bile

M G W / T G WM S A NO A N

IP / M P L S B a c k b o n e

M S C L E xIM SIM S S o fts w itc h

S T P

H S S

H L RS H L R

A p plic a tio n S e rv e r

S D P

M S C eM idd lew are

A p p lic a tio n

IP T ra n s p o rt

A k s e s L a y e rB S C

C P E


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Infrastructure and System Transformation :Transformation: Toward a Converged Network for

TELKOM Group

Single

IP/MPLS

All IP and Simplified network architectureCost effective

Integrated O&Msimple & lean operations

Integrated Core ControlMulti-access

Integrated subscriber data

consolidate customer data

Integrated service ProvisioningSimple service management

Integrated AS for PES, PSSConsistent user experiences

Themes

Flexible Delivery Platform

1

2

3

Smart Big Pipe

Smart Core

Pipe Extension4

Integrated OSS & Common

Data Network

5

Operation Transformation

1

2

Agile Business Process

Competent HR & Customer

Centric Organization


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INFUSION System

Enabling Service Quality Excellence

MANAGEMENT

Excellent

corporate

resource

management to

enhance business

capability

Hot & Convergent

Billing to support

multi service

bundling

Full visibility &

control to

optimize end-to-

end network &

service resources

Service Assurance

Faster, real-time problem

resolution One Bill

Real time payment

Innovative

Customer Solution

Integrated

CRM to enable

innovative

service

creation

(Indonesia Flexible & Unified Business Solution)


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Customer /Account Manager

Mediation

Device

IP-based

Network

portal

IP Based Network Element

switch BRAS

router gateway

DSLAM

Non IP Network Element

switch

FWA

access

NW

trans

NW

Full Cycle Process Integration

Network Related

Supporting Facilities

CADAAccess

road

Tower Room

..

NON Network Related

WF

Care Center

C

O B

E

High Level INFUSION ArchitectureFrom high level view, we can see how INFUSION design

communicate to each parties

ERP Finance


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Information SID Implementation

Data Migration

Data Building (3rd party)

Processes Simplify & Integrated (SOX based)

Automation of control processes (plan= 70 auto : 30 manual)

People Training for 8000 people

Competence(INFUSION Oriented)

Service Culture

Technology Best application in Telco Industry

(Clarity, SAP, Convergys):

o automation

o integration

Service

Excellence

Strategy

Focus on People through Change Management

Technology

Information

People

Process

a Holistic Effort in managing the change


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Due to Measurable and Manageable System, We are

getting much better performance

Value

Creation

O Reduce Inventory System

Integrated FAB Better SLA

Less # Of Apps. (41)

Multi Domain Network

Mgt

B Reduce Billing Sys. (51)

Reduce Billing Operation

Sites (71) Faster Billing Process (48

hour 36 hour)

C Better Service Managebility

for complex cust solution: 34 Product of OLO

42 Product of Enterprise

Integrated FAB

Less # of Applications (31)

Better Governance

E Centralized Revenue

Consolidation ($200 M/month) Single & convergence Invoice

Reduce HR & license cost

(7x5x3 people= 3 people)

Reduce Collection Cost ~ USD

100K / month


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2. Challenges

1. Introduction

5. Lessons Learned


Agenda


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Business Transformation Stages

POTS Broadband

Access

Transport

Switching

FWA

Single Service

Vertical Network

Phase: Single Service

POTS Broadband

Access

Transport

Switching

FWA

Multi Services

Vertical Network

Bulk, Bundling, Add-On

Single Billing

Phase: SemiConvergence

POTS Broadband

Access

Transport

Switching

FWA

TIME Services

Horizontal Platform Convergence Services

Single Account

Multi Devices

Self-Service

NGN

SDP

TIME Services

PORTAL

Phase: Convergence Services

---- 2008

From Defend...

2009

To.. Transformation

Now and Future

And Growth

Bulk, Bundling, Prepaid,

Comitment, Addon

Maintain Cadence between IT and Business Initiatives .


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SelfCARE

MarketCorporateConsumer

Wireless

NonPOTS TiCARES

CCF

Legacy

TiCARES

CCF

Legacy

TiCARES

CCF

INFUSION PL

Content

MarketCorporateConsumer CorporateConsumer


WirelineBroadBand

Wireless

NonPOTS Multi Systems

Legacy

TeNOSS

Content

ProprietarySystems

OS3

TeNOSSINFUSION PL

Legacy OS3



OSS Broadband

Roadmap The Core Transformation

Defend Current Asset Utilization

[.. Up to 2008]

New Adoption For Transformation

2009

Full Integrated for Growth

2010.. 2014

Single Service Semi Convergence Fully Convergence

OSS

CSS

Market

CorporateConsumer

WirelineBroadband

Wireless

NonPOTS TiBS

Legacy

TiBS

Legacy

Content

WIN SBF-20

OBRM

WIN

OBRM

TiBS

OCS

WIN

INFUSION PL

Market

CorporateConsumerMarket

CorporateConsumer

BSS

Applying 80:20 Rules, be pragmatic, Effort vs Business Impact .

WirelineBroadband


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24

The Dynamic of Core Systems:

Networks

MDD

Customer

Applications/Services

Music, Video

Content DeliveryVoice/Video CallingGuardian/Blog

Video MMS

Mobile TV

Video Mail BoxIPTV

Mobile Office Data

email, PIM, Intranet

Mobile Office VoiceCMM & WPABXVoice and Video

Conferencing

One phone

Multimedia

Conferencing

Text (IM)

Radio Access

WLAN

Access3G/3G LTE

PSTN CDMA

UMTS

GSM

IP Network

2G

ADSL

OSSLayer

BSS

Layer

Services Beyond Voice

Mediation Driver Mediation Driver Mediation Driver Mediation Driver Mediation Driver

Process

Network

Diagrammer

Performance

Manager

Planned

Events

Configuration

Manager

Ticket

Manager

Alarms

Manager

Corporate

Manager

Network Creation

Service Fulfillment

Network Assurance

Fault Management

Service Assurance

Performance

Management

ACE AMS

GUI

Service

Manager

Circuit

DiagrammerOPNET

Workflow Relationship

Data Model

IP DB

IP DB

GSM DB

ADSL DBPSTN DB GSM DB

GSM DB

PSTN DB

ADSL DBIP DB

ADSL DB

Never Ending Pain of Data Synchronisation

CRM / Order EntryBilling ERP

NGN

Core

Mediation Driver

Complex and Rapidly Changing Networks

Think Outside-In, Implement Inside-OutStart with Right Inventory


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2. Challenges

1. Introduction

5. Lessons Learned


Agenda


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Lessons LearnedTHERES NO IMPOSSIBLE TO DO

1. Develop right strategy and roadmap to achieve successful core

systems transformation applying 80:20 rules

2. Think Outside-in, implement Inside-out. Start with right Inventory.3. Pre-Integrated solution helps to deal with complex data

synchronization

4. Maintain good communication with all parties involved to get

support and participation from them thru PMO discipline.

5. IT Steering committee mechanism facilitates monitoring and

controlling systems and people readiness

6. Data migration or transformation is a key success factor to achievegood system implementation

7. Successful implementation must be measured by business result

indicators


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iu telco it telecom asia hk 161110 final ver 2

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