1、Federico Germani (CH), Bernd Kraus (FT), Andr Krause (DU), Friedrich Neumeyer (FT), Stefan Schmitgen (FT),Juergen Stark (CH), Safroadu Yeboah-Amankwah (CH)CONFIDENTIALPrimer Document, Version 1.0Chicago/Frankfurt, March 2004This report is solely for the use of client personnel. No part of it may be

2、circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from McKinsey & Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete record of the discussion.ITelecomCONTENTSManagement summarySituati

3、on and demands on Telco ITAssessment of existing Telco IT environmentsVision of a future Telco IT landscapeOutsourcing of Telco ITHow to get startedAppendix 1:Detailed description of IT-supported functionsAppendix 2:Glossary of terms2Network managementInventory managementDecision support systems/dat

4、a warehousingCustomer care & billingService provisioningNetwork element managementBack office applicationsMaintenance and workforcemanagementSource:McKinseyIT SUPPORT OF TELCO BUSINESS PROCESSESCapacity and traffic planningDesign of the physical networkManagement of the network installationEngineeri

5、ngInventory management.Customer care and billingNetwork planning and installationSalesNetwork operationService provisioning and deliveryManage/control correct functioning of the physical networkManage the load of network trafficMaintain networkManage interfaces to 3rd party networks.Manage/control s

6、ales forceManage sales channelsLaunch campaignsManage accountsManage customer contracts.Manage and control the order processes for telecommuni-cation servicesActivate/ terminate services for customers.Rate and bill telecommunication services according to price lists, contracts and 3rd party tariffsR

7、ate and bill 3rd party Telco servicesMaintain customer relationship.Decision on business focusInvestment planningDesign of products and tariff schemesDesign of market penetration approachEnterprise resource managementHR managementFinanceAccounting.IT supports all parts of a Telco operators value cha

8、inTelco IT systemsBack-office administrationStrategy and marketingPROCESSVIEW3Back office applicationsSource:McKinseyOVERVIEW: FUNCTIONALITY OF TELCO ITNetwork managementInventory managementDecision support systems/data warehousingCustomer care & billingService provisioningNetwork element management

9、Maintenance and workforcemanagementNetwork configurationSurveillance of network traffic and performanceFault managementTariff and customer contract managementOrder handlingBilling, invoicing, A/RComplaint managementConfiguration and surveillance of individual network elements such as switches, multi

10、-plexers, routers, etc.)Inventory management ofcustomer premises equipmentnetwork elements (e.g., switches, mutilplexers, etc.)For detaileddescription of systemsand their functionality see Appendix 1HR managementFinanceEnterprise resource managementManagement of maintenance and repair service activi

11、ties for customer premises equipment, switch network and trunk network componentsAnalysis of customer behavior, churn, etc.Customer segmentationProfitability analysisService configuration and activation (e.g., selection of phone number, line or SIM card activation, etc.)Call collection4Source:McKins

12、eyCHARACTERISTICS OF INCUMBENT TELCO IT SYSTEMSEXAMPLESPatchwork application architectureHeterogeneous architec-tural approaches across different BUsNo layered system structuresSystem and data redundancyIncomplete or unsatis-fying support of business processesPerformance andreliability driven system

13、 operationsReliability driven system design at the expense of high costPerformance optimization on the level of single systems with reduced overall performanceLegacy issuesHistorically grown architecture with-out clear conceptComplex system interfaces (if any)Outdated technologyDifficult, expensive

14、system maintenance5ChurnanalysisTariffplannerMarketing and decision supportDatawarehouse/DatamartCampaignmanagementProfitabilityanalysisDataminingDataclean-upA/R + Billing + Contract + Customer careBillingCust.BillingBilling + ContractBilling + ContractCust.Order entryCustomer careA/RA/RA/R Customer

15、 care & billing Contr.Contr.Source:McKinseyILLUSTRATION OF REAL TELCO IT ARCHITECTUREBack officeapplicationsMaintenance andwork force mgmt.InventorymanagementServicemanagementCustomeris servedat point-of-saleContract isassembledbased onstandardtemplateServiceorder isenteredinto thesystemService isac

16、tivatedExample ofsales and service provisioning:Access toredundant systemswithin one systemdomain Network operation Network element managementNetwork managementAccess to amultitude of systemsacross differentdomains6FRAMEWORKS TO UNDERSTAND EXISTING IT SYSTEMSSource:McKinseyWhich applications exist w

17、ithin the Telco?IssueImportance of understandingFrameworks and toolsWhat kind of support do systems provide?How dynamic are systems?What is the technical diversity of systems?Failure to develop a comprehensive view of the applications and architecture results in an incorrect focus and limited effect

18、ivenessWhile technologists often understand the relationship between systems and technology, it is their relationship with the business that determines value and effectivenessThe future viability of systems is often determined by their ability to meet changing business needs. Stable systems ideally

19、are de-coupled from dynamic systemsCosts for operation and maintenance of system platforms often could be significantly reduced by shared technologiesApplication inventoryApplication mappingApplication dy-namics/stability assessmentTechnology infrastructure analysis43217Source:McKinseyORGANIZATIONAL

20、 DRIVERS OF TELCO ITWith increasing age, more and more core functions are supported by outdated systems on numerous different hardware platformsIncreasing company age causes complexity costs generated by scale effects, multitude of technology platforms, offered products and services, regulatory obli

21、gations, and complexity of historically grown patchworkIncreasing size of Telcos slows down speed of decision-making process and flexibility to react to challengesIncreasing size of Telcos requires fundamental change of their overall organizational structure with major impact on the IT landscape to

22、maintain operational efficiencyOrganizational set-up determines split of responsibilities between central and decentral IT units and therefore influences consistency of IT design and granularity of systems (monolithic vs. decentral)Organizational set-up influences make or buy decisionsFragmentation

23、of user demand and system ownership across organizational units determines the degree of stakeholder conflictsSince the IT structure is not aligned to the business processes, IT functions are accessed by a variety of users located all across the value chainConflicting user expectations and unclear r

24、esponsibilities in combination with scarce resources cause conflictsOrganizationalissuesinfluencingTelco ITsystemsOrganiza-tional age and market position of the TelcoOrganiza-tionalset-up of Telco ITProcess organization8ALIGNMENT OF IT WITH THE BUSINESSalignCompany objectives/ strategyObjectives/ st

25、rategy for IT architectureNot focus of this workalignBusiness unit organization IT organizationalignalignSource:McKinseyIT architectureApplication landscapeTechnology platformsOrganizational set-up of companyCore process organizationGovernance modelKey challenge:Align IT organizationand strategy to

26、companysstrategic objectivesand organizationTargeted markets/ customer segmentsTargeted market positionProduct/ service scopeetc.What is the right degree of organizational integration or decentralization of IT functions?Central vs. decentral application supportOrganizational split between network ma

27、nagement and business operations functionsWhat is the appropriate IT governance model?Budget responsibilityProcess for prioritization of requirementsWhat is the best way to allocate the limited resources given the heterogeneous or contradicting system requirements of different user groups?How can 3r

28、d parties like standard software providers or system integrators best be involved?9Source:McKinseyDESIGN CRITERIA FOR A VISIONARY ARCHITECTUREAlignment of business strategy and IT architecture to establish a more business-focused rather than technology-driven ITConsolidation of proliferated platform

29、s and applications to re-duce complexity of tech-nology stacks (e.g., hardware, OS, middle-ware, applications, etc.) and achieve economies of scale and scopeFlexible, process-oriented rather than functional integration of applicationsStrict layering between network management and business operations

30、 to encapsulate network complexity and free up business operationsHigh performing IT architectureFunctional co-verage aligned to new and emerging business needsLow operating costLow cost of new development/ additional functionality10Source:McKinseyARCHITECTURAL VISION: MAIN BLOCKS OF AN “IDEAL“ TELC

31、O ITEvent processorOrder entry/provisioningWorkflowmanagementNetwork elementmanagerNetworkconfiguration andmonitoringFront officeFactoryBillingContractmanage-mentBusiness partneradministration Core business operations Support systems ManagementinformationsystemsBack officeapplications. Wireline netw

32、ork Shared servicesNetwork elementmanagerNetworkconfiguration andmonitoring IP network ProductdefinitionContractmanage-mentProductdefinition Core businessCustomeraccountmanagementMaintenancemanagement Business unit 1 Order entry/provisioningWorkflowmanagementCustomeraccountmanagementMaintenancemanag

33、ement Business unit n .InventorymanagementNetwork elementmanagerNetworkconfiguration andmonitoring Wireless network Inventorymanagement.Business partneradministrationCorebusinessopera-tionsServiceprovisioningConverter and router middleware (message broker, CDR gateway)Opportunityto replicateblocks w

34、ithin eachlayer: consciousdecision betweeneffectivenessand efficiency11TRADITIONAL MIGRATION METHODOLOGIESSource: McKinsey“Patch and swap” approach“Lifeboat” approach“Isolate and replace” approachStandard software approachUse standard software to replace existing systemsUse middleware to wrap legacy

35、 system and add new functionality in small stepsBuilt up new systems from scratch and migrate in a big bangUndirected evolution in highly complicated application architecture tends to increase the chaosOpportunistically replace single systemsIncorporates the tendency to start mega-project with a hig

36、h likelihood of failureOver time increasing amount of functionality built into the middleware creates additional legacyOften available systems are inflexible to match dynamic business requirements and require huge amount of customizationRisks/barriersMethodology/technique12 Source:McKinseyPRINCIPLE

37、OF A RISK-LIMITED MIGRATION APPROACH(Partial) Implemen-tation of architectural visionRadical, revolutionary changes as enabler for further evolutionary stepsNo IT mega-projects!Evolutionary development within the boundaries of the strategic visionMigration prerequisite:Define long-term IT visionMigr

38、ation roadmap and implementation planRight mix ofevolutionary andrevolutionary movesbased on traditionaltechniques13 Source:McKinseyRISK LIMITED APPROACH TOWARDS THE TARGET ARCHITECTUREUpfront definition of long-term strategy and IT visionDevelop long-term strategic view of future businessDevelop vi

39、ew on future business systemDevelop best fit architectural vision of future IT infrastructureDevelop long-term master plan for migration into new IT worldOpportunistic but directed migration path(Partial) Implementation of architectural visionEvolution of business system and business environmentEvol

40、ution of business system and business environmentImplement new business requirements in small stepsEach implementation step needs to be justified by business case (NPV analysis)Make revolutionary move that brings IT closer to architectural visionMove only if economical or structural factor forces yo

41、u 14DEVELOPMENT OF A MIGRATION ROADMAP Source:McKinseyStrategic visionMaster planRevolutionary moveRevolutionarymoveRevolutionary change of IT infrastructureEvolutionary implementation of new business requirementsVision of future business system(Partial) Implementation of architectural visionArchite

42、ctural visionIdentification of business requirementsValidation and prio-ritization of business require-mentsBundling of requirements into imple-mentation projectsDevelopment of technical implemen-tation alternativesDevelopment of project portfolio (timing, resources)Implemen-tationDecision: Go/no go

43、 for specific alternative15KEY FACTORS OF SUCCESS FOR MIGRATION Source:McKinseyReduction of business complexityIn order to avoid over complexity in future applications reduce as far as possible the complexity of the business system (80:20)Filter out all business requirement that do not clearly foste

44、r a competitive advantage and create significant return on investmentQuick implementation of basic architectural movesIdentify architectural move that can be implemented with manageable risk and that create an maximum amount of freedom for evolutionary stepsEspecially introduce technologies like mid

45、dleware that helps to reduce the handling of system interfacesSize of migration stepsFor each migration step chose a project size that is still manageable in the light of the available skills, experience, source quantity and technical complexityUnder those constraint maximise the size of migration s

46、teps in order to avoid unnecessary efforts for interfacing legacy systems16CONTENTSManagement summarySituation and demands on Telco ITAssessment of existing Telco IT environmentsIT architectureIT organizationVision of a future Telco IT landscapeOutsourcing of Telco ITHow to get startedAppendix 1:Det

47、ailed description of IT-supported functionsAppendix 2:Glossary of terms17Source:McKinseyHOW TO LOOK AT IT ARCHITECTURE - OVERVIEWSituation analysis: Characteristics and pitfalls of current incumbent Telco IT system architectureDrivers of current situationTools for assessing a specific Telco IT syste

48、m architecture18Source:McKinseyFRAMEWORKS TO UNDERSTAND EXISTING IT SYSTEMSWhich applications exist within the Telco?IssueImportance of understandingFrameworks and toolsWhat kind of support do systems provide?How dynamic are systems?What is the technical diversity of systems?Failure to develop a com

49、prehensive view of the applications and architecture results in an incorrect focus and limited effectivenessWhile technologists often understand the relationship between systems and technology, it is their relationship with the business that determines value and effectivenessThe future viability of

50、systems is often determined by their ability to meet changing business needs. Stable systems ideally are de-coupled from dynamic systemsCosts for operation and maintenance of system platforms often could be significantly reduced by shared technologiesApplication inventoryApplication mappingApplicati

51、on dy-namics/stability assessmentTechnology infrastructure analysis432119Source:McKinseyAPPLICATION INVENTORY1WFA/DIWFA/DOCRASSAMLATISEMACCASSGDSWirelessalertCODE 5MTASLMOSClearviewCMI (TASK-MATE)FDM/AT2TNS/SARTSOPS/INENMAMTRMeasure-mentsDSFSOPTIRKSWFA/CNSDBACISApplicationportfolio/interfacecomplexi

52、ty causesinflexibility and highcost of support Example: Network OSS Applicationinventory = map showingeach application (representedby a box) and interfaces to allother applications (re-presented by linesbetween boxes)20Source:McKinseyMAPPING OF APPLICATIONSShows functional redundanciesDisplays diver

53、ging functional cutsIllustrates deficits in application connectivity on a corporate level2ApplicationmappingFunctionalmappingCoreprocessmappingIdentifies processes with no or weak application supportLooks for instances where multiple systems perform the same task, redun-dancies and unnecessary compl

54、exity may existIdentifies “standalone systems” (such systems often do not support re-quired cross-functional information flows)Analysis purposeAnalysis procedureGap Business process Assign applications to individual process steps of core business processesAssign individual applications to predefined

55、 functional bucketsAnalysis purposeAnalysis procedure21Source:McKinseyFUNCTIONAL MAPPING: MAIN BUILDING BLOCKS OF A TYPICALTELCO IT LANDSCAPENetwork managementPhysical networkInventory managementDecision support systems/data warehousingCustomer care and billingService provisioningNetwork element man

56、agementBack-office applicationsMaintenance and workforcemanagement Diagnosis tool Real-life situation 222Source:McKinseyFUNCTIONAL MAPPING: MAIN BUILDING BLOCKS OF A TYPICALTELCO IT LANDSCAPENetwork element managementOrderhandlingBilling/invoicing/A/R Customer care and billing SalessupportComplaintm

57、anage-mentTraffic/performancemanagementNetworkconfigu-rationPhysical networkFaultmanage-mentNetworkplanningNetwork inventory management Service provisioning Serviceconfigu-rationCallcollectionServiceplanningQualitymanage-mentDecision support systems/data warehousingHRmanage-mentAccoun-tingControl-li

58、ngMaterialmanage-mentTreasury Back office Customer premises equip.inventory managementMaintenance and workforce managementDetaileddescription ofsystems given inAppendix 1 Network operation Network element management 223CORE PROCESS MAPPING: IT SYSTEMS ALONG THE TELCO VALUE CHAINOrderhandling/process

59、.Billing/invoicing/A/RSalessupportComplaintmanage-mentTraffic/performancemgmt.NetworkconfigurationFaultmanage-mentNetworkplanningNetwork inventorymanagementServiceconfigu-rationCallcollectionServiceplanningQualitymanage-mentDecisionsupportsystemsHRmgmt.AccountingControllingMaterialmgmt.TreasuryFraud

60、detectionCustomerinventorymgmt.DecisionsupportsystemsNetwork elementconfigurationServiceplanningMain-tenancemgmt.Main-tenancemgmt.Customer care and billingNetwork planning and installationSalesNetwork operationService provisioning and deliveryBack-office administrationStrategy and marketingSource:Mc