MTNL Mumbai

Introduction
• Overview
• Company Profile

1
 MTNL Mumbai

Overview

MTNL was established in 1986 by the Government of India, which holds a 56.25 per
cent stake in the company. MTNL is a major Cellular network services provider with
its presence in New Delhi and Mumbai. The operator started its operations Delhi and
Mumbai. MTNL offers a complete range of telecommunication services including
dial-up, broadband, home and mobile telephony, ISDN and leased line services. It is
one of the various leading public sector units of the country providing
telecommunication services to ground line as well as GSM mobile users. MTNL has
restructured Millennium Telecom Ltd. (MTL) as a Joint Venture company of MTNL
and BSNL with 51% and 49% equity participation respectively.MTNL along with
BSNL has provided the basic telecommunication structure to the country and provides
the widest coverage area which covers almost every region of the country. MTNL
serves a capacity of over 100,000 strong subscribers in each of the two metro cities of
Delhi and Mumbai under the brand name dolphin. It has also launched its prepaid
service under the brand name “TRUMP’ simultaneously in Mumbai and Delhi on
14.1.2002 and has already achieved a landmark of more than 14, 00,000 GSM mobile
connections in the two metropolis. The service was launched on Feb. 7, 2001 in Delhi
and on Feb. 27, 2001 in Mumbai.

Company Profile

MTNL is one of the various leading public sector units of the country providing
telecommunication services to ground line as well as GSM mobile users. The
MTNL’s cellular network supports Intelligent Network Services such as prepaid, auto
roaming including national as well as international, free phone, premium rate service
etc. to meet growing demand. It provides various services such as VPN, multicasting,
video conferencing, VOD and broadcast applications. MTNL has been licensed to
operate cellular services in the National Capital Region (NCR) of Delhi including its
four satellite towns of Ghaziabad, NOIDA, Faridabad & Gurgaon.

MTNL aims at being the market leader in providing world class Telecommunication
and IT related services at affordable prices with its state-of-the-art cellular network at
a very low cost. It has brought the world class cellular mobile with new services /
phone plus facilities connectivity within everybody’s reach. Moreover to keep pace
with technological developments & ever growing demand, MTNL has initiated
process for procurement of network infrastructure for 4 million 2G/3G GSM /
WCDMA lines. It has made well planned efforts for venturing into different other
areas like providing digital signatures in India and abroad on the strength of our core
competency.

2
 MTNL Mumbai

Nowadays it has become the necessity for every organization to be equipped with good
IT support for the implementation of any effective business strategies. A business has
to coordinate on entire supply chain process and corresponding information flow
which are the key role players that helps in giving a competitive edge to the
organizations over its competitors by means of achieving greater efficiencies in terms
of proper resource management. MTNL being a service organization is reaching out to
its customers with a customer-focused strategy for better information about customer
profiles in order to understand the needs of its customers and designing solutions
accordingly.

Two challenges to managing telecom expenses are lack of automation and inventory accuracy.
Inventory accuracy as one of their top challenges with other issues that were identified (lack of
resources, decentralized receipt of billing, lack of expertise, and decentralized procurement) all
relate to the challenges in managing assets. Telecom expense management can take many
forms and encompass many departments. In essence, it is the act of combining the
technical knowledge of various telecommunications services with finance or
accounting background to maintain control over a company’s inventory and costs. It
includes any measure that seeks to either reduce costs or increase efficiency for
telecom services.

MTNL has recognized that IT is the key to future business success and has
implemented IT as the backbone for running customer friendly services. The various
different IT systems implemented by MTNL for the sake of providing and managing
its telecommunication and IT services in a better fashion are as follows:

1. IMS (Inventory Management System)

2. CSMS (Customer Services Management System)
3. FRS (Fault Repair Service)
4. DQ (Directory Enquiry)
5. FMS (Financial Management System)
6. IVRS (Interactive Voice Response System) and
7. Accounting and billing systems
8. MTNL is also a Digital Signature Certification Authority.

The projects for Data warehousing, call centers, m-commerce, e-procurement, billing
mediation, telecom software development, consultancy projects are also in the
pipeline for implementation in near future.

After the Indian Information Technology Act provides legal recognition for
transactions carried out by means of electronic data interchange and other means of
electronic communication or e-commerce which requires alternative ways of filling
forms and documents on paper, this requires a means to ensure non-repudiation of
data and senders identity and for this purpose digital signatures are being used.

3
 MTNL Mumbai

Objective
• Overview of IMS
• Purpose of migration

4
 MTNL Mumbai

Overview of IMS

In the MTNL Purchasing, Project Managing, Accounting, Finance, and Warehouse

groups are all segregated both departmentally and geographically. The Non-Recurring
Bill Process is decentralized and there are many people who can be involved for each
individual invoice. Contract Rates, contractual discounts, the ordering and
disconnecting of service and a variety of other components of an invoice can
sometimes take days to dig through and weeks to research in order to ensure that the
charges are accurate. Since the centralized system is required which include following
solutions?
• Invoice processing - Invoices with valid purchase orders are processed.
• Vendor management - follow-up with vendors for missing invoices, payment
questions, credit issues, etc
• Payables management – involved in the full cycle of the process, from the
time a request is made until the time a check is sent. Checks are cut, stopped
and re-issued as needed. All vendor-aging is managed and expenses are
minimized.
• Auditing and Exception resolution - all receiving is done in a timely manner,
all purchase orders have sufficient funds, all charges are appropriate, and all
vouchers directly reflect invoices.
• Order generation: System generated order no is created by project estimate
(PE) department for each work.
• Work order: For each order no. item-wise estimate is prepared by detailed
estimate (DE) department by giving work order no.
• Store management: Stores department links with PE & installation unit as
system generated get-pass created for each drawing
• Reporting – The completion report contain detail of project executed which
gives to PE & Finance department.

Since IMS integrate various function of organization viz. unique order no, purchase
order of material, material drawing, budgetary control, placing purchase order,
payment of vendor, Standardized program for all the units developed to fulfill the
needs of MTNL’s various financial functions.
Unique order no. generation for a project work by IMS as project estimate (PE)
prepared against order no formed by the system. This PE is forwarded to installation
unit for further processing as detailed estimate (DE) is prepared for given order no.
The main difference between DE & PE is PE provide lum-sum cost of a work & all
the main head in the project whereas DE is detailed item-wise list prepared.
Given work order is issued to installation unit this leads to drawing the material from
stores with system generated get pass having unique id no. As given order is executed

5
 MTNL Mumbai

followed by report generation & it forwarded to finance department along with project
planning department to check the status of a project.

The following diagram depicts the concept of IMS.

P.E. (Order Purchase Finance

generation) order Department

D.E. (Work
Order)
Payment to
Vendor

Requisition Stores

Material
drawn

Get pass

Installation
unit

Work
execution

Completion
report

Finance P.E.
Department Department

6
 MTNL Mumbai

Purpose of Migration

The purpose of this project is to make profitability scenario by studying the migration
of the IMS (Inventory Management System) Server from current Oracle 9i server (
hardware and software ) to Oracle 10g and Cost analysis of this migration, thus
saving the hosting fees and improving reliability and response time to technical
problems.

Oracle Database 10g is the latest release of Oracle database software which contains a
number of new features and functionalities designed to make businesses more
productive. As the manageability improvement from Oracle9i to Oracle 10g and will
attempt to establish a quantitative measure for the manageability differential between
the two releases. Oracle Database 10g, released in 2003 and the current release,
enables grid (the g in 10g) computing. A grid is simply a pool of computers that
provides needed resources for applications on an as-needed basis. The goal is to
provide computing resources that transparently scale to the user community, much as
an electrical utility company can deliver power to meet peak demand by accessing
energy from other power providers' plants via a power grid. Oracle Database 10g
further reduces the time, cost, and complexity of database management through the
introduction of self-managing features such as the Automated Database Diagnostic
Monitor, Automated Shared Memory Tuning, Automated Storage Management, and
Automated Disk Based Backup and Recovery. One important key to Oracle Database
10g's usefulness in grid computing is the ability to provision CPUs and data.

Oracle 10g represents a giant step forward from Oracle9i in making the database
easier to use and manage. The key factors behind Oracle 10g’s superior manageability
are its new intelligent self-managing infrastructure that provides proactive, self-
monitoring and diagnostic capabilities, and the increased automation of many manual
but vital DBA tasks such as SQL and memory tuning, space management, and
performance diagnostics. Oracle 10g is the first truly self-managing database that is
intelligent, automatic, adaptive, and proactive. The study clearly demonstrates and
quantifies the manageability advances made by Oracle Database 10g. Oracle Database
10g reduces the DBA management workload by more than half and the management
complexity by the same factor relative to Oracle9i. This translates into more
productive DBA’s, more reliable systems, and significant cost savings for businesses

Oracle Database 10 g is the first designed for grid computing, reducing IT costs by
automating management and clustering servers to dynamically allocate resources. It is
proposed to study the migration of database from Oracle 9i to 10g or above version,
as it is found that 10g is superior by 9i by way of various factors.

7
 MTNL Mumbai

Here are some key features how organization can benefit from upgrading to Oracle
Database 10g

Grid Economies of Scale: Oracle Database 10g and Real Application

Clusters enable virtualization of servers and storage on fast, reliable, low cost
computing grids. It can easily consolidate database applications into fully
redundant grids that deliver a higher service quality for your users, at a lower
cost of ownership.

Efficient Storage Utilization: Oracle Advanced Compression can reduce disk

storage requirements by at least a factor of 2-4xs. You don't have to change
your applications, and you can continue to store more and more data, keep it
online longer, and query that data faster using your existing storage
environment.

Maximize Availability: Reduce your cost of downtime with Oracle Database

10g's maximum availability architecture. It addresses all common causes of
unforeseen failures and unplanned downtime using core components of your
database; eliminating dependency on idle redundancy and 3rd party products.

Self-Managing Database: Oracle Database 10g, along with Oracle Enterprise

Manager Grid Control has the built in automation and advisors that eliminate
complexity from day to day operations in the data center; and help you sustain
mission-critical service levels, while reducing IT costs.

The various study showed that Oracle 10g made tremendous gains in manageability.
The main findings of those studies are summarized below:
1) Oracle 10g database administrators require 50% less time than Oracle9i to
perform the basic management tasks included in this study.
2) Oracle 10g needed 57% fewer administrative steps than Oracle9i to complete
the same DBA workload.
As the results show, compared to Oracle9i, Oracle Database 10g reduces management
complexity by half and therefore, makes the administrators twice as productive. This
has huge cost savings implications for businesses, not only due to greater DBA
productivity, but also due to the fact that increased automation in Oracle Database 10g
reduces the chances of human errors leading to higher system availability and lower
training and management costs. The study clearly demonstrates the huge leap taken
by Oracle 10g over Oracle9i in the area of manageability. DBA’s can significantly
lower their workload and improve the availability and reliability of their system by
simply adopting Oracle 10g. With Oracle 10g, businesses can expect to lower the cost
of management and improve quality of service for their users.
.

8
 MTNL Mumbai

Design Specification
• System overview
• System architecture
• Schematic diagram
• S/W , H/W

9
 MTNL Mumbai

System Overview

The total network of the consumer services management system which now came
under the inventory management system (IMS) can be seemed as two separate levels,
the first level comprising of all the connections between the terminals of the network
and the routers and the second level comprise of the connection between different
routers and the servers. The first level has a point to point configuration while the
second level has a multipoint configuration, basically the unit does not have either to
support internet connectivity so as to consider the aspect of bandwidth division on
using a common physical connection nor the data levels are that high that the
transmission speed could get effected and hence there are no issues with using a
multipoint configuration in second level. There are no bridges as routers do the
function of bridging the network as well.

The infrastructure has two centralized IMS servers located at City centre which are
dedicated to the unit which are permanently assigned to the terminals, the servers are
IBM P-series servers at its core to which are all the terminals connected through there
respective routers. There are two centralized routers directly connected to the
centralized servers which are CISCO 7200 series. In addition to this in all there are
thirteen area routers of make CISCO 3600 series which are placed at different major
access points.

10
 MTNL Mumbai

System Architecture

Schematic diagram of IMS system:

The basic network architecture of IMS comprises of

o The Layer - 1 Core network constitutes the high speed Backbone (STM-16). The
Layer - 1 node consists of high end fully redundant Core routers, and shall be
interfaced to Edge routers through Gigabit Ethernet interfaces.
o The Layer - 2 Edge network is the second layer of the IP backbone network and
primarily supports MPLS edge functionality. The function of this layer shall
enforce QoS and other administrative policies. This layer provides user access
through following three mechanisms,
i. Dialup
ii. Dedicated Access
iii. Broadband access.

The LAN comprises of the terminals connected through an unshielded twisted pair
wire supporting a 100base-T type of Ethernet with maximum speed of 100Mbps
through use of CAT 5 cables which were installed a few years back and have not been
changed since then. The speeds obtained are said to be appropriate for the proper
functioning of the unit and hence any change in the existing cabling to shift to CAT
5e has been ruled out.

11
 MTNL Mumbai

The unit uses a SAN (Serial Access Network) storage which is supported by the IBM
servers used in the network. It consists of data storage facility using data tapes which
also provides backup facility and the data storage frequency is on weekly basis.
Interface converters are also used for making the interfaces between central router and
area router compatible to each other. This interface is useful in integrate four
department with IMS system (Material Management, Project Estimate, Finance &
Account, Installation Unit) converters used in MTNL were Paton K modem and Paton
C modem are for proper interface of area routers with central router.

12
 MTNL Mumbai

H/W & S/W

Hardware Used:

Components Type
2 centralized servers IBM P-570 series
Storage server IBM Fiber based FASt T700
2 Centralized routers CISCO 7200 series
Area routers CISCO 3600 series
Interface converters Paton K modem
Paton C modem
Switches ( 2 nos) IBM SAN F08
Cables CAT 5
Connector RJ 45
Protocol converter Dlink modem
Others IBM Fiber based FASt T700 Expansion unit
(8 HDD)
Source: Mr. Siddhartha Gautam

Interface used:

Component Interface
Cisco 7200 series router G.307 interface
Cisco 3600 series router V.35 interface
OFC media G.703 interface
Source: Mr. Siddhartha Gautam

13
 MTNL Mumbai

Data Storage:
Various Applications servers placed at different messaging storage locations like
LDAP, messaging, UMS & Billing etc. would require data storage capacities for
storing user’s mailboxes, billing data etc. Such huge storage requirements need to be
met with the fast, reliable & scalable storage devices that would be deployed as end to
end high performance switched architecture fiber channel SAN (Storage Area
Networks) providing no single point of failure. SAN storage used is compatible to the
IBM P series servers used as centralized servers.

Software used:
1. O.S AIX5.3
2. HACMP5.2 for clustering
3. Oracle 9i version 2
4. Storage Manager Runtime software
5. Storage manager Client software
6. C Compiler
7. Cobol

The unit has two web based applications built on J2EE technology and is run over
LAN. The software’s used also comprise of Oracle 10g database which is used for
data storage and querying while the unit uses a Oracle 9i application server which is
in the conversion process to use an Oracle 10g application server.

MTNL has also approved the development of ERP software to enhance the operations
and the process of development of Oracle Financial which is an ERP package has
already started.

14
 MTNL Mumbai

Requirement Analysis
• Purpose
• Scope
• Specific requirement

15
 MTNL Mumbai

Purpose

As database of IMS is migrate from its current version Oracle 9.2.0.8 to the latest
release oracle 10g. This document gives the software & Hardware requirement
specifications for the completion of migration process. An Oracle database upgrade is
often considered as a risky task by database IT people. Upgrade tests have to be run,
all applications have to be verified and validated in the new database environment and
performance at the same level or better has to be ensured and achieved.

Such a specification is necessary because it represents the requirements of the

software & hardware in a manner that leads to successful implementation of the same.
These specifications are useful for the software engineers during the migration plan
and testing phases of the system.
The overall results were truly amazing. Besides achieving faster performance with
Oracle Database 11g compared to Oracle 9i, there were no application changes
necessary – and the whole upgrade project required far fewer working hours and
resources compared to previous database upgrades

Oracle Database 10g, released in 2003 and the current release, enables grid (the g in
10g) computing. A grid is simply a pool of computers that provides needed resources
for applications on an as-needed basis. The goal is to provide computing resources
that transparently scale to the user community, much as an electrical utility company
can deliver power to meet peak demand by accessing energy from other power
providers' plants via a power grid. Oracle Database 10g further reduces the time, cost,
and complexity of database management through the introduction of self-managing
features such as the Automated Database Diagnostic Monitor, Automated Shared
Memory Tuning, Automated Storage Management, and Automated Disk Based
Backup and Recovery. One important key to Oracle Database 10g's usefulness in grid
computing is the ability to provision CPUs and data.

16
 MTNL Mumbai

Scope

The Inventory Management System is intended to be multipurpose standalone and/or

client-server application so that it can be used for various applications according to
requirements of user. The system can be used by various user so limited access given
to each user as per the work.
The project is to implement Oracle10g on the database servers of Inventory
Management System. The exact version of Oracle10g will be determined as part of
the project. It will be the latest version supported by our Oracle applications. It is
possible that some of the Oracle applications will need to be upgraded or patched to
versions certified with Oracle10g. The exact versions or patch levels of these
applications will be determined as part of the project. It is also possible that some of
the software such as SQR, BRIO, and COBOL will have to be upgraded or patched. If
necessary, the exact versions or patch levels of these will be determined by the
project.
At present there is no requirement to upgrade the operating system on any of the
database servers to maintain compliancy with Oracle10g. Depending on whether the
software and application upgrades are point release or version upgrades, user or staff
training for the affected applications or software may be required. Furthermore, there
may be a need to change the vendor provided forms and reports that have been
modified by using newly developed system.

Project Scope:

The project will include:

• Version compatibility checking which will determine,
- Exact version of Oracle10g.
- Exact version or point release of all Oracle applications compatible
with Oracle10g.
- Customization to locally modified forms and reports as well as in-
house developed programs.
- User desktop requirements.
- Communication of any required Oracle application upgrades and
customization, as well as any required changes to PC configuration, to
users.
• Installation of Oracle10g, and all required upgrades into the test environment.
• Testing of the upgraded environment including end user testing.
• Finalization of the upgrade path, timing, and dependencies.
• Compilation of project documentation.

17
 MTNL Mumbai

Specific Requirement

The project had been divided into 3 phases:

1. Setup of the reference system and creation of a repeatable production workload

2. Upgrade to Oracle Database 10g and comparison of performance figures without
any optimizations
3. Performance optimization leveraging the Oracle Database 11g features
i. Initialization parameter tuning
ii. Detection of changing execution plans with SQL Performance Analyzer
iii. Load simulation with Real Application Testing: capture a complete workload
and replay it against an upgraded database
iv. Preserving Oracle 9i-like execution plans with SQL Plan Management
v. Improving overall PL/SQL performance with PL/SQL Native Compilation
vi. SQL query and workload optimization with SQL Tuning and Access Advisors
vii. Switch off any tuning enhancements in Oracle Database 11g and compare the
results to Oracle 9i

Upgrading to Oracle Database 10g

Upgrading directly to Oracle Database 10g is supported for Oracle 9.2.0.4 and all later
releases. It can be done either with the methods generally used are
1) Database upgrade assistance(DBUA)
2) Manual upgrade
3) Export import utilities
4) Copy data

Database Upgrade Assistant (DBUA), a graphical user interface tool, or manually

using the upgrade scripts. Upgrade with the DBUA is the Oracle-recommended
method because it performs all necessary checks and changes.
In this case MTNL have to choose the manual upgrade method instead of the DBUA.
The DBUA would have been able to complete the whole upgrade process unattended
in silent mode except for running operating system checks as well as controlling the
backup with RMAN and applying required database patches. Therefore a complex
shell script from previous upgrade projects had been customized to accommodate the
Oracle Database 10g requirements.

During the upgrade from Oracle 9i to Oracle Database 10g/11g all synonyms will be
recompiled during the upgrade process. For each synonym this will take
approximately 0.1 seconds. If a large number of synonyms have been created in the
database then the time needed to recompile all synonyms must be added to the
upgrade time.

18
 MTNL Mumbai

• A complete online backup of the source database must be taken prior to starting the
upgrade. Oracle Recovery Manager (RMAN) is the recommended tool to backup the
database. This backup can be restored and recovered to the desired point in time
before proceed. Testing and verifying the restore and recovery operation as a fallback
scenario is vital to the upgrade process

Setup of the reference system

One IBM P570 system with 16 CPUs and 32 GB of RAM has been provided for test
purposes. This system is identical to the production systems. The operating system is
AIX 5.3 TL8, and the storage subsystem is an EMC DMX2000. In production each
server runs 3 databases in parallel, each of them hosting 1 department. The current
production database release is Oracle Database 9.2.0.8. One ORACLE_HOME
containing 9.2.0.8 and another home containing Oracle Database 11.1.0.6 were
installed on the reference system. To leverage the new Real Application Testing pack
according to Metalink -Note: 560977.1, the following patches were applied:
• Oracle Database 10.1.0.6:
Patch 6865809: SQL Performance Analyzer – 11g can extract 9i trace information
• Oracle Database 9.2.0.8:
Patch 6973309: Capture will be available in 9.2.0.8
Three different 9.2.0.8 production databases were copied and restored to the reference
system using RMAN. A repeatable nightly batch run was also provided. This batch
run is an accumulated OLTP run of several hours and is representative of a real world
scenario.

19
 MTNL Mumbai

Cost of database migration

• Labour
• S/W
• H/W

20
 MTNL Mumbai

Project Cost Estimates:

The project cost estimate can be calculated by applying four category include

Cost Category

1) Labour – cost:
2) Hardware:
3) Software:
4) Miscellaneous (backups, system software, etc):

Labour Cost

Project Effort Estimate

The estimate can be calculated by Level of effort with no. of days, the
accuracy will improve over the duration of the project. The first revision of estimated
effort is planned after the completion of the application and software version
compliancy check.

The labour cost derived from person required to complete the migration process.
Roles and Responsibilities of persons are:
Analyst
O Application server installation (development)
O Data migration
Production DBA
O Application server installation (development and production)
O Migration of database from Oracle 8.1.7 to Oracle 10g
Networks and Systems
O Hardware acquisition and installation
O O/S installation
O Apache configuration
Application DBA
O Data migration

21
 MTNL Mumbai

Level of Effort (person/days)

Sr. Work Package Analyst Prog. PDBA ADBA Prod. Other Total
No. Supp N&S
1 Project
management 1 1

2 Requirements
Definition 1 1

3 Supporting
Infra. Red (e.g.
security, 1 1 1 3 6
promotions,
etc)
4 H/W & S/W
Acquisition, 5 5 10
Configuration
5 Detailed Design
& Reviews 3 1 4

6 Implementation
& Reviews * 5 1 2 8

7 Documentation
1 1
8 Quality
Assurance 2 1 3
9 Integration and
Acceptance 1 3 4

10 Training 1 1 2
11 Final
Acceptance 1 1
Total Effort 22 6 3 1 9 41

*Note: conversion of IMS database from Oracle 9.0.2 to Oracle 10g may potentially require
significant development time. The above estimate assumes a near-best-case scenario
involving only minimal coding changes for this conversion. An additional 10-20 days could
be involved if significant problems are encountered during conversion.

22
 MTNL Mumbai

H/W & S/W Cost

Hardware Cost:
MTNL has a completely managed IP network that builds a converged platform to run
all enterprise solutions. The entire backbone is built on trusted names like Cisco and
Juniper to provide data capacity in terabytes and high routing/switching speed. Multi
tier network architecture is designed to avoid single point of failure and offer highest
network availability. So there is no need to hardware changes as existing hardware is
compatible with the oracle 10g.

Software Cost:
For database migration MTNL require licensed copy of oracle software. As MTNL is
already using oracle 9i version and it is member of OTN (oracle T Network) it
provide upgraded version of oracle in free of cost. So there is no need on additional
software as existing software is compatible with the oracle 10g.

Project Cost Estimates:

The estimate can be calculated by Level of effort with no. of days, the accuracy will
improve over the duration of the project. The first revision of estimated effort is
planned after the completion of the application and software version compliancy
check

Cost Category Estimate

(Rs)
Analyst @Rs.1500/day 33,000
Programmer @ Rs.1100/day 0
Production DBA @ Rs.1050/day 6,300
Labour Application DBA @Rs.1050/day 3,150
Prod. Support @Rs.1000/day 1,000
Networks and Systems 7,200
@Rs.800/day
Hardware and
software acquisition 1,184,000
(Application Server
Packs, Partitioning,)

Miscellaneous
(backups, system 11,000
software, Testing cost
etc)

Total 1,245,650

23
 MTNL Mumbai

Performance
Measurement
• Literature Review
• Qualitative measure
• Quantitative measure

24
 MTNL Mumbai

Literature Review

The Balanced Scorecard Approach

The balanced scorecard is a conceptual framework for translating an organization’s
strategic
Objectives into a set of performance indicators distributed among four perspectives:
Financial, Customer, Internal Business Processes, and Learning and Growth. Some
indicators are maintained to measure an organization’s progress toward achieving its
vision; other indicators are maintained to measure the long term drivers of success.
Through the balanced scorecard, an organization monitors both its current
performance (finance, customer satisfaction, and business process results) and its
efforts to improve processes, motivate and educate employees, and enhance
information systems—its ability to learn and improve.

Performance Measure Use in Subjective Performance Evaluation

Kaplan and Norton (1996, 10) argue that balanced scorecards should reflect four types
of measures: (1) financial and nonfinancial; (2) external (financial and customer) and
internal (critical business processes, innovation, and learning and growth); (3)
inputs/drivers and outcomes/results; and (4) objective, easily quantifiable measures
and more subjective, judgmental measures. Although Kaplan and Norton (1996,
2001) provide little guidance on how to combine or "balance" these disparate
measures when evaluating managerial performance,
Drawing upon economic and psychological studies on the choice of performance
measures for performance evaluation and compensation purposes, we develop
exploratory hypotheses regarding the weights placed on different types of
performance measures (e.g., financial versus nonfinancial, quantitative versus
qualitative, and input versus outcome) in subjective bonus computations.
When developing measures, it is important to include a mix of quantitative and
qualitative measures. Quantitative measures provide more objectivity than qualitative
measures. They may help to justify critical management decisions on resource
allocation (e.g., budget and staffing) or systems improvement. An agency should first
identify any available quantitative data and consider how it can support the objectives
and measures incorporated in the BSC. Qualitative measures involve matters of
perception, and therefore of subjectivity. Nevertheless, they are an integral part of the
BSC methodology. Judgments based on the experience of customers, employees,
managers and contractors offer important insights into acquisition performance and
results

1. Basic Principles
Whether data are quantitative or qualitative, applying the two basic data collection
principles identified below will help an agency to obtain reliable data in the most
efficient manner. Using these principles, an agency may find synergies between
existing, separate systems.

a) Use existing data sources to the extent feasible

Many agency management information systems already collect reliable
quantitative data, which are useful for acquisition performance measures; and
agencies likely have large investments in these systems. These systems

25
 MTNL Mumbai

include financial, personnel, and administrative systems, as well as contractual

information systems.

b) automate data collection where possible

While many agencies have management information systems that are partially
automated, we encourage the expanded use of automation to compile important
quantitative data, where efficient and cost-effective. Moreover, as technology evolves,
we expect more and more surveys to be administered electronically (e.g., using e-mail
hyper-linked to the Web) with automated qualitative survey results going directly into
applications that gauge performance. Automation will tend to save time, reduce error
rates, and obviate the need for separate data entry and verification.

Moreover, qualitative data from existing acquisition surveys may be used to support
BSC efforts. Some agencies have designed and already use acquisition-specific
surveys. Much of the data collected by those surveys will be useful for the BSC with
little or no change. In some cases, other agency survey instruments collect
acquisition-related data.

The following represent some of the ways that leading organizations, both public and
private, use performance information to improve performance, manage risk, and
support decision making:

Gap Management: Performance results can be used to determine gaps between

specific strategic objectives and/or annual goals and actual achievement. The root
causes of these gaps are analyzed, and countermeasures developed and implemented.
Whenever there is a gap between current results and an organization’s objectives, it is
an opportunity for process improvement.

Benchmarking. An organization can use the BSC to benchmark its performance

against other organizations. Benchmarking helps to get a picture of how the agency
acquisition function performs compared to others. It also serves as one input for
developing target goals.

Enhancing strategic feedback and learning. Kaplan and Norton recommend that, in
addition to tracking progress on past results, managers can use the BSC to learn about
the future. Managers should discuss not only how they achieved past results, but also
whether their expectations for the future remain on track. This focus serves as a
foundation for effective process improvement and risk management. It also completes
a feedback loop that supports decision-making at all levels of the organization.

26
 MTNL Mumbai

Qualitative Measure

Business Issue:
The company planned to migrate to a new technology platform, Oracle 10g, in order
to improve technology support in the areas of Finance, Supply Chain, Project estimate
etc. This endeavor required a complete understanding of the legacy business processes
and technical architecture as well as the global impact this new technology platform
would have on the organization.

Prior to planning and implementing this new database system, oracle 10g from current
oracle 9i, the enterprise needed a comprehensive view of all systems that would or
possibly be affected by this migration. Additionally all data integration/reporting
considerations within each of those application systems needed to be identified and
presented. A graphical representation of the entire existing corporate application
system landscape, delineating every connected system and data component was
constructed. Once the view of the current environment was approved, a graphical
representation of proposed environment, which replaced several systems and affected
numerous others, assisted the organization to better plan and execute this major
system migration By exposing every data integration point that existed in the legacy
environment, and how data integration would change in the new environment, greatly
benefitted the organizations’ ability to plan and execute the system migration and
ensure that data will not be compromised or corrupted in the process.

Performance:
1) Business process performance: Operational efficiency of specific business
processes, measures of which include customer service, flexibility,
information sharing, and inventory management.

2) Organizational performance: Overall firm performance, including

productivity, efficiency, profitability, market value, competitive advantage,
etc.

Several quantitative measures related to business processes can be discerned.

Examples are temporal measures, reliability measures, and cost measures. Also
combinations are possible, e.g. performability measures (Trivedi et al. 1993), which
combine temporal measures with reliability measures, and derived measures such as
the performance to- cost ratio.

User/customer perspective: response time, the time between issuing a request and
receiving the result; the response time is the sum of the processing time and waiting
times (synchronization losses). Also in the supporting IT-applications the response
time plays an important role;

Process perspective: completion time, the time required to complete one instance of a
process (possibly involving multiple customers, orders, products etc., as opposed to
the response time, which is defined as the time to complete one request).

27
 MTNL Mumbai

Vendor Product perspective: processing time, the amount of time that actual work is
performed on the realization of a certain product or result, i.e. the response time
without waiting times. The processing time can be orders of magnitude lower than the
response time. In

System perspective: throughput, the number of transactions or requests that a system

completes per time unit (for example, the average number of customers that is served
per hour).

Resource perspective: utilisation, the percentage of the operational time that a

resource is busy. On the one hand, the utilisation is a measure for the effectiveness
with which a resource is used. On the other hand, a high utilization can be an
indication of the fact that the resource is a potential bottleneck, and that increasing
that resource’s.

Scalability improvements for large user populations

It is traditional to measure database performance in terms of transactions per second
or query response time. An equally useful measurement is the number of
simultaneous user sessions supported. This is a particularly important measurement
for OLTP (Online Transactional Processing) databases. One of the benefits of
migrating to the EM64T architecture is impr Software

Reliability is defined as the probability of failure-free operation of a computer

program in a specified environment for a specified time. A failure is a departure of
program operation from program requirements. A software reliability model provides
a general form, in terms of a random process describing failures, for characterizing
software reliability or a related quantity as a function of failures experienced or time.
Improvement in the ability to support large user counts for Oracle databases.

28
 MTNL Mumbai

Quantitative Measure

As there no exists standard method of measuring or comparing ease-of-use or

manageability, we have used the approach employed by a similar study conducted by
Rauch Associates comparing Oracle9i Database with IBM DB21. We performed a set
of basic and common administrative tasks that reasonably represent a typical DBA’s
workload on both Oracle9i and Oracle10g, and measured them on a common set of
metrics to gauge their relative manageability. The metrics used were:

i. Time: Total time that a DBA spends in carrying out the task.
ii. Steps: Number of steps required to complete the task.

The time metric is used to ascertain the relative management efficiency of the two
products. The quicker a DBA can complete a task, the more efficient and productive
he/she will be.
Oracle Database 10g reduces the DBA management workload by more than half and
the management complexity by the same factor relative to Oracle9i. This translates
into more productive DBA’s, more reliable systems, and significant cost savings for
businesses.
A general, commonsense definition of performance is presented in (Ferrari, 1978)
wherein he defines performance as an indication of how well a system, already
assumed to be correct, works. In general, the performance metric for distributed
systems must reflect the program, the architecture, and the implementation strategies
for it depend on each one of them. However, while the parallel execution time, speed-
up, and efficiency serve as well known performance metrics, the key issue is the
identification of the distributing processing overheads which sets a limit on the speed-
up for a given architecture, problem size, and algorithm.

The other significant improvement in the performance diagnostics and tuning

category in Oracle 10g was due to the new SQL Tuning Advisor feature. This feature
automates all the steps required for tuning SQL statements and gives comprehensive
tuning advice, along with the exact commands for implementing the advice. A user
only needs to run the advisor and then accept its recommendations to
comprehensively tune SQL statements in Oracle 10g. In addition, Oracle 10g provides
infrastructure for tuning multiple SQL statements together in one step using SQL
Tuning Sets.

Table 1 shows the time comparison between Oracle9i and Oracle 10g. The time taken
to complete the tasks has been aggregated by task category in order to show the
advantage one product has over the other for the different categories. The timings
shown are the actual timings measured in the study and have not been weighted to
reflect DBA workload savings.

29
 MTNL Mumbai

Installation Day-to-Day Backup & Performance

& “Out-of- Database Recovery Diagnostics Total
Box” Administration & Tuning
Setup
Oracle 9i 45 35 46 19 147
Oracle 10g 29 13 17 5 64
Oracle 10g 36% 63% 63% 74% 56%
Time
Savings
Remarks Oracle 10g Oracle 10g Oracle 10g Oracle 10g Oracle 10g
took 36% took 63% less took 63% took 74% overall
less to time to less time to less time to took 56%
complete ongoing day- complete complete less time to
install and to-day backup and performance complete
simple administration recovery diagnostics all the tasks
“out-of- tasks tasks & tuning &
box” setup tasks

30
 MTNL Mumbai

Profitability Analysis
• Benefit Factors
• Benefit Distribution

31
 MTNL Mumbai

Benefit Factors

As the main objective of project is to check cost impact by the migration of database
on oracle 10g. Where, the two major aspects can be considered in measuring
performance after implementation. The following section gives the financial and
productivity benefits of the Oracle 10g product for the IMS. Each benefit contained
within this section is listed by Benefit Type. Benefit Value List - The listing includes
the calculated benefit values as well as the Benefit Type and the area of the financial
statements these benefits will impact.

1) Expense (Operating) Savings - Benefits which reduce operating costs of an

organization.
a) Reduced Server and Storage Hardware Cost
b) Reduced Server Annual Maintenance Cost
c) Reduced Third-Party Management Software Cost
d) Increased Availability - Reduced Downtime Costs

2) Labor Productivity Savings - Reduced Administration and Support Costs

3) Revenue Improvement - Increased Availability - Increase Revenue

4) Intangible - Reduced Cost of Increased Scaling

32
 MTNL Mumbai

1) Expense (Operating) Savings:

a) Reduced Server and Storage Hardware Cost :

Migrating from the existing technology architecture to new oracle 10g version or
commodity servers and storage yields a potential five-year hardware cost savings
Rs.1132555 (as calculated by followed table). Server hardware cost refers to the cost
of acquiring and replacing server hardware. Oracle's Real Application Cluster (RAC)
technology enables clustering of multiple low cost (so-called "commodity') servers.
A cluster of low-cost servers provides the computing power of more expensive
hardware at a lower cost and with higher availability. Commodity storage is similarly
low-cost disk storage assembled into arrays that can easily be managed through the
Grid Automatic Storage Management (ASM) administration console.

Business Importance:
Reducing hardware costs by using less expensive server equipment reduces
operational costs and directly impacts the organization's bottom line.

Benefit Realization:
This benefit can be achieved by deploying applications and databases on low cost,
commodity hardware. Existing hardware can then be redeployed, retired or sold on
secondary market. For hardware that is going to be retired or sold, the maintenance
contracts can also be terminated (this benefit is reflected on the Hardware
Maintenance benefit card). As capacity needs change in the future, additional
hardware can be added to the cluster without significant capital expense (this benefit
reflected on the Scalability Benefit card). Similar savings are also possible with
storage, replacing expensive disk arrays with low-cost commodity disk arrays
managed through ASM.

Benefit Drivers Current % Change Target

A.
Number of servers 6 33% 4
B.
Average cost per server 166,667 91% 15,000
C. Average annual cost
25 96% 1
per gigabyte (GB) of storage

Input Variables (from Questionnaire) Current % Change Target

D. Average life (in years) for one server 3.4 3.0

E. Cluster networking hardware cost 0 25000

Average life (in years) for cluster networking
F. 0 3
hardware
Total gigabytes (GB) storage required for all
G. 2,000 2000
applications
H. Growth rate for servers? (applied to years 2-5) 3%

33
 MTNL Mumbai

Intermediate Calculations Current % Change Target

I. Annual server hardware cost (A*B)/D 291,667 20,000
J. Annual clustering hardware cost E/F 0 8,333
K. Annual disk storage cost C*G 50,000 2,000
L Annual hardware cost I+J+K 341,667 30,333

Average Estimated Annual Financial

2010 2011 2012 2013 2014
Benefit
Potential Benefit if Fully Realized 320,67
M. 311,333 330,294 340,202 350,408
Current L - Target L including growth 3
N. Benefit Adoption Rate 20% 36% 80% 100% 100%
Estimated Benefits (Increased 115,44
O. 62,267 264,235 340,202 350,408
Customer Retention) M*N 2

Undiscounted pre-tax five year benefit: 1,132,555

SOLUTION ENABLERS, SUPPORTING EVIDENCE AND REFERENCES:

Family Module Feature Impact Impact Rationale Source
%
Oracle Commodity 90% Low-cost, high volume Intel Internal
Database 10g Grid or AMD processors provide Oracle
Computing the benefits of proprietary
processors at a fraction of
Oracle
Database
the cost
Products
Oracle Oracle RAC High- 90% Expensive SMP servers can Internal
Database availability be replaced by clusters of Oracle
Products clustering inexpensive commodity
servers in a high-availability
configuration
Oracle Oracle ASM 20% Customers gained on Mainstay
Database Database 10g (Automatic average a 20% improvement Partners
Products Storage in storage utilization. Aggregate
Management) ROI Study,
2004
Oracle Oracle ASM 25% "Most of the enterprises Forrester
Database Database 10g (Automatic claimed cost savings of 25% White
Products Storage or more through a DBMS Paper,
Management) platform standardization "DBMS
initiative, as a result of Platform
lowering administration, Standardiz
licensing, and infrastructure ation Can
costs." Lower
Costs And
Improve
Efficiency,"
Noel
Yuhanna,
May 27,
2005

34
 MTNL Mumbai

b) Reduced Server Annual Maintenance Cost:

Migrating to IMS Grid servers has the potential to realize a five-year savings in
hardware maintenance costs of Rs. 709362 (as calculated by followed table).
Maintenance costs include costs paid to hardware vendors for ongoing support &
maintenance of the server hardware and operating systems. Operational cost savings
for clusters of low-cost servers can be significant because an organization does not
need to pay for expensive hardware maintenance contracts. If a computer in the
cluster fails it can be quickly and inexpensively replaced with no system downtime.

Business Importance:
Reducing hardware maintenance cost, reduces operational costs and directly impacts
the bottom line.

Benefit Realization:
This benefit can be achieved by deploying applications and databases on low cost,
commodity hardware. For hardware that is going to be retired or sold, the
maintenance contracts can be terminated. Commodity hardware does not require any
maintenance contract - if hardware fails and needs to be replaced the IT organization
can repair it, or .replace it with another inexpensive "blade" server with no service
disruption.

%
Benefit Drivers Current Target
Change
A. Average annual maintenance cost (per server) 33,333 100% 0
B. Number of servers 6 33% 4

Input Variables (from Questionnaire) Current % Change Target

C. Cluster networking hardware cost 0 25,000

D. % Annual maintenance cost for cluster networking hardware 0 20%

E. % Annual growth rate for servers? (applied to years 2-5) 3.0%

%
Intermediate Calculations Current Target
Change
F. 200,000 0
Annual Server Hardware Maintenance Cost A*B
F. 0 5,000
Annual Cluster Networking Hardware Maintenance Cost C*D
G. 200,000 5,000
Annual Hardware Maintenance Cost E+F

35
 MTNL Mumbai

Average Estimated Annual Financial Benefit 2010 2011 2012 2013 2014
Potential Benefit if Fully Realized
H. 195,000 200,850 206,876 213,082 219,474
Current g - Target G including growth
I. Benefit Adoption Rate 20% 36% 80% 100% 100%
Estimated Benefits (Reduced HW
J. 39,000 72,306 165,500 213,082 219,474
Maintenance) H*I

Undiscounted pre-tax five year benefit: 709,362

SOLUTION ENABLERS, SUPPORTING EVIDENCE AND REFERENCES:

Family Module Feature Impact Impact Rationale Source
%
Oracle Ability to use 100% Commodity hardware can Internal
Database low-cost be purchased cheaply, and Oracle
10g commodity no maintenance contract is
hardware for required. If a component
Oracle high-
Database availability
fails, it can be replaced or
Products cluster repaired--which ever is
least expensive
Oracle Oracle RAC High- 100% Expensive SMP servers Internal
Database availability can be replaced by clusters Oracle
Products clustering of inexpensive commodity
servers in a high-
availability configuration

36
 MTNL Mumbai

c) Reduced Third-Party Management Software Cost:

Reducing third party management software has the potential to realize a five-year
savings of Rs. 191,350 (as calculated by followed table). Third-party management
software includes software typically required for managing enterprise infrastructure.
These normally include cluster management software, logical volume manager, file
system manager, database software, ETL (extract/transform/load) tools and
backup/recovery software. Also included in this card is the cost of operating system
software.

Business Importance:
There are direct and indirect benefits to reducing 3rd party software. Indirect benefits
are derived from simplification of technology. Direct benefits are derived from
reduced spending on 3rd party software. Next generation of IT infrastructure will
require organizations to reduce the complexity of their technology infrastructure by
reducing the number of different software packages required to provide service to the
business. Reducing or eliminating the need for third-party management software
directly impacts the organization's bottom line.

Benefit Realization:
Reducing third-party management software costs requires tools and processes.
Hardware platforms and operating systems that require the third-party management
software must be retired or repurposed in a way that does not require the use of the
software. In addition, features of the new management software must be implemented
to eliminate the need for the 3rd party software.

Benefit Drivers Current % Change Target

A. Cluster server software 0 0.0% 0
B. Volume manager software 12,000 100.0% 0
C. Third party database software 40,000 100.0% 0
D. ETL tools 0 0.0% 0
E. Other Tools 0 0.0% 0
F. OS software (e.g., Linux) 0 0.0% 2,080

Input Variables (from Questionnaire) Current % Change Target

G. Anticipated growth rate (applied to years 2-5) 5.0%

Intermediate Calculations Current % Change Target

Annual Third-Party Software Cost
H. 52,000 2,080
A+B+C+D+E+F

37
 MTNL Mumbai

Average Estimated Annual Financial Benefit 2010 2011 2012 2013 2014
Potential Benefit if Fully Realized
I. 49,920 52,416 55,037 57,789 60,678
Current F - Target F including growth
J Benefit Adoption Rate 20% 36% 80% 100% 100%
Estimated Benefits (Reduced 3rd Party SW Cost)
K 9,984 18,870 44,029 57,789 60,678
I*J

Undiscounted pre-tax five year benefit: 191,350

SOLUTION ENABLERS, SUPPORTING EVIDENCE AND REFERENCES:

Family Module Feature Impact Impact Rationale Source
%
Oracle Oracle 100% Use of clusterware Internal
Database Clusterware replaces third-party cluster Oracle
10g management products
Oracle
Database
Products
Oracle Oracle RAC Integrated 100% Homogenous Oracle Internal
Database Database environment eliminates the Oracle
Products Management need for third-party
Capability databases, volume
managers and ETL
(extract, transform, load)
products, as well as any
other 3rd party software
needed to support non-
Oracle environments

38
 MTNL Mumbai

d) Increased Availability - Reduced Downtime Costs:

Reducing downtime costs has the potential to realize a five-year savings in costs of
Rs.216419. (as calculated by followed table ) Increased availability includes both
direct and indirect benefits. Direct benefits are those related to reduction of the
workload associated with system recovery as well as the reduction of lost business
associated w/ system downtime. Indirect benefits are driven by improvements in
employee productivity due to increased system availability.

Business Importance:
Business applications, especially those that are externally focused, must be available
during the times that those parties expect to do business with your organization. Any
unplanned downtime that is visible to customers or suppliers can have a significant
impact on business performance and the perceived value of the organization.

Benefit Realization:
Any technology system with a single point of failure presents a risk to availability and
business continuity. Implementing a cluster based technology infrastructure for
business critical systems eliminates single points of failure. Any single server can
either be taken out of the cluster for maintenance (planned outage) or can fail
(unplanned outage) and the other servers will pickup the workload with no visible
interruption of service.

Benefit Driver Current % Change Target

A. Annual hours of downtime for critical applications 34 71.5% 9.7

Input Variables (from Questionnaire) Current % Change Target

B. Number of critical applications 2
C. Average hours of downtime for critical applications 34.0 71.5% 24.3
D. Expected growth in revenue or users (applied to years 2-5) 5%

Potential Savings - Lost Employee Productivity due to

Downtime:
Current % Change Target
E. Average Annual Salary of Application Users 3,10,000
Average number of employees using critical
F. 15.0
applications during business hours
G. Average number of hours in one work year 2,000
H. Estimated user productivity if system is down 28.7%

39
 MTNL Mumbai

Potential Savings - Service Level Agreements: Current % Change Target

I. Average SLA cost per hour of downtime 1,250

Intermediate Calculations Current % Change Target

Average hourly salary cost of critical applications user base
J. 2,325
(E*F)/G
Average hourly productivity loss if critical applications are
K. down 1,659
J*(1-H)
Average annual downtime cost for critical applications
L. 197,778 71.5% 141,318
(J+K)*C*B

Average Estimated Annual Financial Benefit 2010 2011 2012 2013 2014
Potential Benefit if Fully Realized
M. 56,460 59,283 62,247 65,360 68,628
Current L - Target L including growth
N. Benefit Adoption Rate 20% 36% 80% 100% 100%
Estimated Benefits (Decreased Downtime
O 11,292 21,342 49,798 65,360 68,628
Costs) M*N
Undiscounted pre-tax five year benefit: 216,419

SOLUTION ENABLERS, SUPPORTING EVIDENCE AND REFERENCES:

Family Module Feature Impact Impact Rationale Source
%
Oracle High-availability 20% With Oracle Application Server Internal
Database 10g clustering clusters and with the Oracle Oracle
, Oracle RAC Real Application Clusters
option for the Oracle Database
Oracle
Database
you can increase reliability and
Products reduce management costs by
as much as 20%.

Oracle Enterprise Oracle Enterprise 20% Software installation, patching, Internal

Database Managers Manager 10g has upgrading, workload Oracle
Products automated the balancing, security, and much
day-to-day more are all handled centrally
maintenance
required for an
from Oracle Grid Control. This
enterprise grid, means the entire infrastructure
and provides a can be managed as one large
centralized computing system. One or a
management few administrators can
console called maintain even the largest grid
Oracle Grid data center.
Control.

40
 MTNL Mumbai

2. Labor Productivity Savings - Reduced Administration and Support Costs :

Reduced administration and support costs results in a potential five-year savings of

Rs.8776992 (as calculated by followed table). Administration and support includes
database administration, system administration and storage administration. Database
administration includes tasks such as user management, patch application / upgrades,
backup & recovery and tuning. System administration includes security management,
performance management, OS patch management and hardware maintenance.
Storage administration includes logical volume management, disk layout management
and hardware maintenance.

Business Importance:
Reducing administration labor reduces operational costs. Using technology to
execute the most common administration tasks can free up valuable resources to focus
on higher value activities. Using a common set of management tools across the
enterprise reduces the number of skill sets that your organization must maintain and
makes management of systems more efficient by smaller teams.

Benefit Realization:
In order to achieve these benefits you will standardize on a common management
framework for your technology infrastructure based on Oracle Enterprise Manager
(EM). By implementing your application on Oracle Database 10g, many common
operational tasks will be automated by the system. For example, the automatic
storage management (ASM) module will allow your DBA and SA teams to stop
managing the layout of data on their disk farms. In addition, backup / recovery can be
automated without the use of 3rd party software.

Benefit Driver Current % Change Target

A. Number of full-time equivalent (FTE) DBA's 7 28.6% 5
B. Number of full-time equivalent (FTE) systems administrators 5 20.0% 4
C. Number of full-time equivalent (FTE) developers 25 12.0% 22

%
Input Variables (from Questionnaire) Current Target
Change
D. Average annual fully-burdened salary for one DBA? 420,000 420,000
Average annual fully-burdened salary for one systems
E. 420,000 420,000
administrator
Average annual fully-burdened salary for one
F. 350,000 350,000
developer
G. Average training cost for one DBA 50,000 50,000
Anticipated annual customer base growth rate (applied
H. 3.0%
to year 2-5)

41
 MTNL Mumbai

Intermediate Calculations Current % Change Target

11,480,0
I. Annual Salary Cost A*D+B*E+C*F 13,790,000
0
J. Annual DBA Training Costs A*G 350,000 250,000

Average Estimated Annual Financial

2010 2011 2012 2013 2014
Benefit

Potential Benefit if Fully Realized

K. 2,410,000 2482,300 2556,769 2633,472 2712,476
Current (I+J) - Target (I+J)
including growth
L. 20% 36% 80% 100% 100%
Benefit Adoption Rate

Estimated Benefits (Reduced

M. 482,000 893,628 2045,415 2633,472 2712,476
Admin Costs) K*L

Undiscounted pre-tax five year benefit: 8,766,992

SOLUTION ENABLERS, SUPPORTING EVIDENCE AND REFERENCES:

Family Module Feature Impact Impact Rationale Source

%
ASM helps DBAs manage a
Oracle Automatic dynamic database
Database Storage 10% environment by allowing them Internal
10g Management to grow the database size Oracle
Oracle
Database
without having to shutdown
Products the database to adjusts
storage allocation. It
eliminates the need for manual
I/O performance tuning.

Oracle Enterprise Software installation, patching,

Oracle Enterprise Manager 10g has upgrading, workload
Database Managers automated the 20% balancing, security, and much Internal
Products day-to-day more are all handled centrally Oracle
maintenance
required for an
from Oracle Grid Control. This
enterprise grid, means the entire infrastructure
and provides a can be managed as one large
centralized computing system. One or a
management few administrators can
console called maintain even the largest grid
Oracle Grid data center.
Control.

42
 MTNL Mumbai

2. Revenue Improvement - Increased Availability - Increase Revenue:

Increased availability has the potential to realize a five-year increase in revenue of

Rs.161,833(as calculated by followed table). Increased availability includes both
direct and indirect benefits. Direct benefits are those related to reduction of the
workload associated with system recovery as well as the reduction of lost business
associated with system downtime. Indirect benefits are driven by improvements in
employee productivity due to increased system availability.

Business Importance:
Business applications, especially those that are externally focused, must be available
during the times that those parties expect to do business with your organization. Any
unplanned downtime that is visible to customers or suppliers can have a significant
impact on business performance and the perceived value of the organization.
Downtime in a sales environment can mean lost revenue.

Benefit Realization:
Any technology system with a single point of failure, presents a risk to availability
and business continuity. Implementing a cluster based technology infrastructure for
business critical systems eliminates single points of failure. Any single server can
either be taken out of the cluster for maintenance (planned outage) or can fail
(unplanned outage) and the other servers will pickup the workload with no visible
interruption of service.

Benefit Driver Current % Change Target

A. Annual hours of downtime for critical applications 34.0 71.5% 9.7

%
Input Variables (from Questionnaire) Current Target
Change
B. Number of critical applications 2
C. Average hours of downtime for critical applications 34.0 71.5% 24.3
Expected growth in revenue or users (applied to years 2-
D. 5%
5)

Current % Change Target

Lost Revenue due to Downtime:
E. Average revenue processed per hour by critical applications 34,341
F. Estimate percentage lost if system down during business hours: 6.3%

43
 MTNL Mumbai

Intermediate Calculations Current % Change Target

G. Average hourly lost revenue due to application downtime E*F 2,175
H. Average annual downtime cost for critical applications G*C*B 147,894 71.5% 105,674

Average Estimated Annual Financial Benefit 2010 2011 2012 2013 2014
P Potential Benefit if Fully Realized Current N -
42,220 44,331 46,547 48,874 51,318
. Target N including growth
Q
Benefit Adoption Rate 20% 36% 80% 100% 100%
.
R
Estimated Benefits (Increased Revenue) P*Q 8,444 15,959 37,238 48,874 51,318
.

Undiscounted pre-tax five year benefit: 161,833

SOLUTION ENABLERS, SUPPORTING EVIDENCE AND REFERENCES:

Family Module Feature Impact % Impact Rationale Source

With Oracle Application Server
Oracle High-availability clusters and with the Oracle
Database clustering 20% Real Application Clusters Internal
10g, Oracle option for the Oracle Database Oracle
Oracle RAC
Database
you can increase reliability and
Products reduce management costs by
as much as 20%.

Oracle Enterprise Software installation, patching,

Oracle Enterprise Manager 10g has upgrading, workload balancing,
System Managers automated the 20% security, and much more are all Internal
Management day-to-day handled centrally from Oracle
Products maintenance
required for an
Enterprise Manager Grid
enterprise grid, Control. This means the entire
and provides a infrastructure can be managed
centralized as one large computing
management system. One or a few
console called administrators can maintain
Grid Control. even the largest grid data
center.

44
 MTNL Mumbai

3. Intangible - Reduced Cost of Increased Scaling

Reduced Cost of Increased scaling has the potential to reduce spending on

unnecessary server headroom. Enterprise IT systems are not static. System usage
grows and shrinks driven by business need over time. In a traditional SMP
environment when the system reaches its capacity organizations must decide how to
add capacity. They may either buy a similar size machine and cluster or both together
or they may buy a much larger machine and/ or re-purpose the original machine. The
benefit with RAC are driven by the ability to flexibility provision IT capacity in
clusters by either sourcing new "commodity" machines or by moving under-utilized
machines from a low activity cluster to a high activity cluster.

Business Importance:
Better align computing capacity with actual business need (smaller amount of utilized
capacity). Ability to grow quickly as business demand dictates without significant
capital expense.

Benefit Realization:
To achieve the benefit your application must move to a cluster of low cost,
commodity hardware. The SMP box that was hosting the application must be retired.
To maximize benefit, a single "commodity" standard should be selected across the
organization so that computing resources can be quickly repurposed from areas of low
demand to areas of high demand.

Capacity Headroom
Growth
Computing Power

SMP2

SMP1

Time

45
 MTNL Mumbai

In a traditional SMP environment, when growth reaches the capacity of the server, it
must be replaced by a server with a higher capacity (or coupled in a cluster with a
server of similar capacity). In either cast, the shaded area represents the headroom
present in the server configuration (overhead being unutilized capacity).

Capacity Savings
Growth
Computing Power

Time

In a RAC environment, clusters of commodity servers are used to create capacity. As

growth requires, capacity can be added in small increments. Thus, the unused
capacity (or headroom) is much smaller than in the SMP model and therefore the cost
is lower.

46
 MTNL Mumbai

Projected Business Benefit

Total projected Business Benefits: The following table summarize all the benefit
factor described above for database migration to oracle 10g of inventory management
system at MTNL Mumbai. Also cost analysis fo such migration can be shown in
following pie chart & bar chart.

2010 2011 2012 2013 2014

Annual Potential
Year 1 Year 2 Year 3 Year 4 Year 5 Total
Business Benefits
Reduced Administration and 2,045,41 2,633,47 2,712,47
Support Costs
482,000 893,628 8,766,992
5 2 6
Reduced Server and Storage
Hardware Cost
62,267 115,442 264,235 340,202 350,408 1,132,555
Reduced Server Annual
Maintenance Cost
39,000 72,306 165,500 213,082 219,474 709,362
Reduced Third-Party
Management Software Cost
11,292 21,342 49,798 65,360 68,628 216,419
Increased Availability -
Reduced Downtime Costs
9,984 18,870 44,029 57,789 60,678 191,350
Increased Availability -
Increase Revenue
8,444 15,959 37,238 48,874 51,318 161,833
Total Projected 1,137,54 2,606,21 3,358,77 3,462,98 11,178,51
612,987
Business Benefits 7 5 9 3 1

47
 MTNL Mumbai

48
 MTNL Mumbai

Conclusion

49
 MTNL Mumbai

Conclusion

Modern enterprises are aggressively adopting new technology solutions to enhance

their competitiveness and profitability. The system management costs, however, have
been steadily rising leading to eroded profit margins. By undertaking a simplified
management of database systems, which truly differentiate a business from its
competitors and an increased focus on company’s business goals, database
administrators in the future will play an increasingly crucial role in success of the
enterprise.
So as IMS which is in development stage, by migrating it to 10g from current 9i, have
following limitations and benefit that we foresee.

Limitations:
1) Human factor : adaptability, inertia to new system, mind set problem
2) Change Management
3) Cost barrier : hardware cost,
4) technology obsolesce : all software and hardware migration projects are
bounded by technology obsolesce, which also can be case with IMS
migration
Benefits:

1) High cost saving over labour, Administrative cost, H/W, S/W,

Maintenance cost, etc.
2) Flexible on schedule migration
3) Reduced Server and Storage Hardware Cost
4) Reduced Server Annual Maintenance Cost
5) Reduced Third-Party Management Software Cost
6) Increased Availability - Reduced Downtime Costs
7) Labor Productivity Savings - Reduced Administration and Support Costs
8) Revenue Improvement - Increased Availability - Increase Revenue
9) Intangible - Reduced Cost of Increased Scaling

50
 MTNL Mumbai

Appendix

51
 MTNL Mumbai

52
 MTNL Mumbai

53
 MTNL Mumbai

Bibliography

54
 MTNL Mumbai

Bibliography

URLs:
Why Upgrade to Oracle Database 10g?
http://www.oracle.com/technology/

Oracle Database 11g Upgrade Companion

https://metalink.oracle.com/metalink/plsql/ml2_documents.showDocument?p_databas
e_id=NOT&p_id=601807.1

Upgrade Discussion Forum on OTN:

http://forums.oracle.com/forums/forum.jspa?forumID=583

Upgrading from Oracle Database 9i to 10g – What to Expect from the Optimizer?
http://www.oracle.com/technology/products/bi/db/10g/pdf/twp_bidw_optimizer_10gr
2_0208.pdf

http://mpra.ub.uni-muenchen.de/12158/

http://www.google.com

55