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The demand for Enterprise Architecture and the use of Reference Architecture
Contents
2 3 3 3 4 4 4 Abstract Introduction Consumers going their own way The growing enterprise market OTT providers step up the challenge CSPs adapting for success Staying relevant in the new communications industry Considerations Enterprise wide Business Agility Modularity (and Service Oriented Architecture) Using the business supporting ecosystem as a key business competitive advantage Nokia Siemens Networks Reference Architecture About the Enterprise Architecture concept Enterprise Architecture and Nokia Siemens Networks Reference Architecture Business Architecture viewpoint Process Architecture viewpoint Information Architecture viewpoint Application Architecture viewpoint Technology Architecture viewpoint Network Architecture viewpoint Nokia Siemens Networks Reference Architecture ARIS Library
Abstract
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7 7 8 8 9 10 10 11 12 12
A number of Communications Service Providers (CSPs) today have concerns related to Enterprise Architecture initiatives. In a business environment driven by constant changes, it is recommended to have close attention to all initiatives implying bigger changes on IT and telecom systems. Special focus is needed because the costs and impacts of the changes are often difficult to predict as the systems are typically huge and complex and many a times based on legacy technology. This white paper explores some considerations on how to mitigate risks and make future proof changes. Final goal is to create an enterprise wide agile ecosystem fully aligned with the constantly changing business needs.
13 Nokia Siemens Networks Enterprise Architecture Approach 14 Nokia Siemens Networks Reference Architecture benefits 14 Improve Agility 14 Improve operational efficiency 15 Improve customer satisfaction 15 Assure business continuity 15 Faster procurements, lower TCO 16 Bibliography
Introduction
Change has become endemic to the communications industry, with the rise of social networking, perhaps being one of the most dramatic the total number of social networking users exceeded email users in 2007. Meanwhile, falling ARPU for voice and the opportunities represented by new technologies have increased competition in the industry, not only among communications service providers (CSPs) but also from cloud service providers, media and broadcast companies and consumer electronics vendors. Looking at the industry in totality, we can see a number of challenges and opportunities that are redefining the expectations and ambitions of the four main protagonists in the arena Consumers, Enterprises, OTT players and CSPs themselves.
It is not the strongest of the species, nor the most intelligent that survives. It is the one that is the most adaptable to change. Charles Darwin (1809 1882), Naturalist, author of theory of evolution
Considerations
The high levels of customer service and satisfaction, greater flexibility and faster response with a tight cost control are a big challenge with the current (and many times) legacy systems. Only one action or focus on one functional area (e. g. billing) will not solve the issue. We need to have a holistic approach and tackle several dimensions in different areas in order to achieve a visible and highly valuable effect.
Area #1
Area #2
Area #1 + #2
Enterprise wide
Earlier, the systems were designed by maximizing their benefits for each functional area, taking into account Cost, Risk and Quality. While each one of the functional areas consisted of specific tools with similar components to satisfy the needs, there was very little communication between them, leading to a set of silo legacy systems. In order to maximize the value for the entire organization, instead of a specific area, the optimization and value prioritization needs to be enterprise-wide. From the organization point of view, the priorities and the value can lead to a completely different set of results. For increasing the speed, we need to typically change or improve the systems, and for optimizing them, we need to tackle the process itself.
Business Agility
In order to be optimized, not for a specific area but for the whole Enterprise, a new dimension; agility must be taken into account. For instance, agility to support new business models, introduce new and more effective co-operation between different areas, connect to new partner systems, support new or changed business processes, and transform the supporting IT and network systems from costly operational system into a competitive business advantage.
There is a consensus by several independent organizations (the Open Group, TM Forum, analysts, etc.) on Service Oriented Architecture (SOA) as the recommended way of implementing modularity. In this white paper, we assume that the generic advantages of the SOA approach are understood, and therefore we emphasize only two special topics of SOA: time-to-market and investments. Firstly, time-to-market is the key attribute in agility, and is faster to cope with the business changes and needs. Time-to-market, on numerous occasions, is the needed competitive advantage for achieving success. Secondly, despite the financial crisis, companies are investing in SOA initiatives. From the market reports, the growth of SOA usage in 2008/2009 was 27%, (comparing survey results from Q42008 and Q42009 in Europe and North America), and 56% in 2009/2010 (Forrester Research, 2010).
All of the above add significant value to the business, but together they are even more valuable: When receiving a call from the customer, would it be useful to identify in less than 5 seconds why the call with a mobile phone did not succeed, and be able to reconfigure the mobile phone with one click? Would it be useful to identify that a customer has a high churning probability and receive a warning about that, with a set of recommended actions/offers to avoid the churn? Would it be useful and unique to have both above available while interacting with a customer? Yes, it would be, but it is only possible when all the previously separated systems co-operate with each other, understanding their contribution to common enterprise processes and information. This capability provides a competitive advantage to a CSPs relation with the customers. This increases customer retention and satisfaction at different levels, and furthermore, other CSPs cannot replicate, unless they transform their systems. To create these capabilities effectively, an enterprise-wide architecture transformation is required, making it difficult for competition to achieve the same level of alignment between business and systems.
What businesses the firm is in? Business What is the value chain scope? What are business models? What is company structure? What is the strategy? Enabling capabilities Business Specific business needs
What are roles involved? Governance? Needed KPIs to follow? Functional decomposition? Functionality of each entity? Interfaces between entities? Vendor mappings?
Information Technology
Process
Business processes?
Needs and modeling? How info is synchronized? How to manage over life-cycle? Access and integrity rules? Key technology choices? Interoperability? Vendor strategy? Roadmapping?
Process
Information
Application
Application
Technology
Network
Network
Figure 2. The main architecture viewpoints of an Enterprise Architecture (also part of the Reference Architecture).
architecture is handled by Nokia Siemens Networks as a specific domain. The Nokia Siemens Networks Reference Architecture (see Figure 2) is the Nokia Siemens Networks proposed blueprint for the CSP Enterprise Architecture. The Reference Architecture is applied for each CSP in the specific context. It is essential to notice that the six viewpoints shown in the above figure are subject to common governance in order to be able to align the architectural changes with the CSPs strategy. In addition, the common change management process supports the control, implementation, and documentation of the changes. To illustrate the Nokia Siemens Networks approach, in the following, the viewpoints of the Process Architecture, Information Architecture, Application Architecture and Technology Architecture are described in detail. The approach of applying the TM Forum Frameworx is especially highlighted as well as how the different
viewpoints are integrated with each other, enabling a holistic end-to-end approach. The chapter is concluded with how the Reference Architecture is governed with a market leading tool and library.
Customer Insight Management Provides CSP with ability to build end user insights proactively and drives other processes with these insights Concept to Market Enable CSPs to quickly and cost-effectively launch new and modified products and services based on end user needs and insights Plan to Pay Provide CSP with customer centric solution for physical & logical resource management Lead to Cash Enable CSPs to sell, deliver & monetize products & services starting from prospect handling to revenue realization Trouble to Resolve Enable CSP with ability to handle and resolve end customers faults, problems and incidents
Serve Customer
Operate Service
Enterprise Management Efficient corporate processes to help support other business processes and the enterprise in whole
Best practices 3.BP.3 Quarterly budget review Planning team should run a quartely review to revise the annual budgets for any new requirements arriving during the year 3.BP.4 Change advisory board Operator should introduce CAB to approve the budget so that only the changes which are critical and aligned with company strategy should be approved Produce Resource Forecast
Resource Forecast
Design Resources
Managed Services services: Performance, Network Optimization and Assurance, related products like NPO Optimizer
Figure 4. One example of a Nokia Siemens Networks Plan and Design Resources modeled in the tool.
3G
2G
Core
SDH, PDH
NMS
EP Finance
CRM
Telecom Specific
IT Specific
Cross Functional Areas Customer experience management Customer information management Policy based management
Fulfillment
Assurance
Billing
Service Management Domain Service fulfillment Service assurance Charging and billing
Security management
Network and Service Control Domain Device control Service control Connectivity Service delivery and VAS
reusability are important aspects. This involves patterns for application interworking as well as application integration. The foundation for Application Architecture is the TM Forum Application Framework (TAM). As a complete view of all applications in one architecture diagram would be very complex, Nokia Siemens Networks chose to represent application architecture in views per functional area.
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L0 CRM
Customer order management
SLA parameters
SLA reports
SLA parameters
SLA reports
Service performance parameters Service traffic data Service performance kQIs Service performance data Trouble tickets, Status updates Service traffic data
Service performance SLA data Service threshold alarms, Service availability data, Service performance data
Service topology
Raw/KPI performance data Batch/ondemand inventory updates Online monitoring data Trouble tickets, status updates
Figure 7. One example of a logical view on Service Assurance area of the Application Architecture.
Despite each area represented by the needed logical components/ applications, each view maintains its integrity, and whenever a logical component/application appears in more than one view, its integrity is ensured. Each area defines a logical architecture for relevant CSP applications. Cross functional areas tackle typically more than one functional area (Service Assurance, Charging and Billing, etc.), creating additional views over the same applications. This would be difficult when done manually, for instance, PowerPoints, which emphasizes the advantages of using a tool for defining the different views and architectures within an Enterprise Architecture project.
The Nokia Siemens Networks Application Architecture extends TAM, especially with the interaction of applications and with new key components/applications not yet fully covered by TAM. As an example, the TM Forum report Exploiting Analytics from September 2010 concluded that CSPs are increasingly focusing on customer experience initiatives driven by the recognition of the connection between customer experience and profitability (Rich, 2010). Nokia Siemens Networks Reference Architecture acknowledges this recent development both in the Process Architecture (Customer Insight Management process) and the Application Architecture (Customer Experience Management application area).
A key concept of the logical Application Architecture is modularity, supporting several configurations and set of implementations with different products from various vendors. Above is an example of the Service Assurance area (Figure 7). The figure shows the highest level of logical Application Architecture for the Service Assurance area. The implementation architectures of logical Application Architecture are composed of market-leading industry components supplied by Nokia Siemens Networks or partners. These implementation architectures follow the best practices and expertise from Nokia Siemens Networks implementations and leverage the reuse of existing and/or legacy systems of CSPs.
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Figure 8. Nokia Siemens Networks Process and Application Reference Architectures on ARIS.
OSS/BSS integration is considered from the protocol integration viewpoint. However, using the Nokia Siemens Networks Reference Architecture, the information and process architecture viewpoints are also considered, which provides a holistic approach to the integration of the network to the business systems. For instance, the context for the 3GPPP policy execution of Nokia Siemens Networks Reference Architecture is the CSP policy management business processes. Another example is subscriber data management, which is a network domain not well standardized. In this context, information architecture plays a central role, i.e. how the subscriber and customer information of CRM systems are integrated in order to support the customer insight business process and customer experience management applications.
The tool allows modeling and creation of the relations between different architectures, for instance applications, processes and information. As an example, it is possible to navigate from a process to the required information and supporting application(s). Also, Nokia Siemens Networks uses the tool for mapping each logical building block to possible solutions/products. On a specific Enterprise Architecture of a CSP, this can be linked to the implementations, allowing complete understanding from business to the supporting assets. As described earlier, all architecture viewpoints are connected to each other as well as to the industry Reference Models. The library is complemented with the Nokia Siemens Networks best practice implementations. Figure 8 shows examples of the Process Architecture and Application Architecture represented in the tool.
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Business
Process Information
Process
Business
Business
Process
Information
Information
Process
Informatio Information
Process
Information
Application Technology
Application
Process Pro
Business
Process
Technology
Process P
Information
Application
Technology
Application
Technology
Application
Technology
Application
Technology
Network
Network
Network
Network
Network
Network
Network
Current ecosystem
Reference Architecture
Enterprise Architecture
Transition Systems
The starting point is the business vision defined by each customer (CSP). Following the strategy, the focus areas and priorities need to be defined (ROI, strategic area, core business, business focus area, etc.). Working with the CSP, Nokia Siemens Networks facilitates business needs analysis, assessing the current capabilities, and defining an Enterprise Architecture vision for the chosen area(s) using the Reference Architecture. Typically, special focus is on aligning all the architectures with the CSP Business Architecture, as this is crucial for the success of any Enterprise Architecture initiative.
Nokia Siemens Networks is able to support the decision-making process of CSPs by supplying impact analysis of the changes and the risks involving each step of the process. In addition, as important as having a vision of the needed future systems, is to understand the existing systems. A smooth prioritized migration plan will be developed in order to be able to leverage the current assets and maximize the return value with each step.
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Improve Agility
The building blocks defined by Nokia Siemens Networks Reference Architecture are aligned with the state-of-the-art practices of the industry and the market. In the end-to-end approach of the Reference Architecture, the architecture in itself is considered from integrated viewpoints, providing full transparency to the steps from business innovation to implementation. The approach, thus not only leverages
Figure 10. Improving first call resolution and productivity on customer care due to new capabilities.
New Process Open TT Automated error detection Old Process Open TT 1st Level Customer Care 2nd Level Call Center Semi-Manual Error Analysis Create TT Close TT Call Center Automated Error Analysis New system Create TT Close TT Automated error recovery
Automated Verification
3rd Level
Legacy/Silo systems
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troubleshooting and correcting the problem. This is much more effective, transforming a potential negative interaction with a customer into a quick and pleasant experience, also improving CSP brand image. Figure 10 from the Nokia Siemens Networks automation project shows how these new capabilities can improve the operations in a critical contact point with the customer. Please note that the new/improved system creates new capabilities by automation, but in conjunction with processes redesign, the resulting return on investment will be much higher. This clearly reinforces our earlier statement about having an enterprisewide approach on Enterprise Architecture initiatives, even with a stepwise deployment. Before this automation project, this European CSP had 15 errors per 1000 subscribers analyzed manually. With a growing number of errors, more than 50% were being escalated to level 2 support. Since the deployment, the manual error resolution decreased 20%, and the total amount of errors declined 36%. Furthermore, with less escalation to level 2, the SLA failures decreased 20%. Finally, the total amount of hours in error analysis decreased, improving productivity.
how customer satisfaction improves the customer care response time and quality. These successful results raise an additional question about the approach: why not improve the service level using the same system, would it be possible to receive proactive alerts about customers that might churn, and would it be possible to create campaigns with offers to maintain the customers? All these contribute to positive interactions with customers, decreasing churn and differentiating vis-a-vis competition.
Networks to leverage and share its best practices based on an extensive and formally modeled architecture knowledge asset. Finally, the use of Reference Architecture triggers the validation of the existing CSP processes, functions and systems, and formalizes their importance and impact on the business. This lowers the risk of losing critical non-documented processes and improving inefficiencies and ad-hoc solutions.
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Bibliography
Garcia, S.; Gramatikoff, I.; & Wilmes, J. (2009). Business Transformation with TM Forum Solution Frameworks and SOA. USA: TM Forum. Davis, R., & Brabnder, E. (2007). ARIS Design Platform, Getting Started with BPM. London: Springer-Verlag. Forrester Research, I. (2010). SOA Product Adoption. Networks, N. S. (2010). Automated incident Analysis Project (Automation Solutions) in one European Operator. European Operator: Nokia Siemens Networks Projects. Norton, D., Blecher, M., & Jones, T. (2010). Magic Quadrant for Business Process Analysis Tools. Gartner. Office of Government Commerce (OGC). (2010, 12 30). ITIL. Retrieved 12 30, 2010, from ITIL: http://www.itil-officialsite.com/home/home.asp Rich, R. (2010). Exploiting Analytics. TM Forum Insights Research, 83. The Open Group. (2010, 12 30). TOGAF Version 9. Retrieved 12 30, 2010, from The Open Group: http://www.opengroup.org/togaf/ TM Forum. (2010, 12 30). TM Forum Frameworx. Retrieved 12 30, 2010, from tmforum: http://www.tmforum.org/TMForumFrameworx/1911/home.html Zachman, J. A. (1987). A Framework for Information Systems Architecture. IBM Systems Journal, 276292.
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