Challenge

In today’s world, the migration to IP networks is not optional for enterprises, it is a foregone conclusion.  Most enterprises have a mix of network topologies across all their offices, which can achieve greater functionality at lower costs through transformation to a VoIP/MPLS-based network solution.  However, the challenge for companies is to realize the business value offered by converged networks, while leveraging existing applications and infrastructure investments.

Realizing that there is no single approach to the complex process of transforming an enterprise communications infrastructure and seeking practical guidance in planning a cost-effective and “graceful” migration to converged communications, a large international financial institution with a $350M annual network spend for voice and data services called upon a major systems integrator and TMNG Global to help.

The TMNG Global Solution

We began by conducting a network services and assets baseline assessment to determine the quality of network information stored across various BSS, OSS and external vendor platforms.  Using sampling techniques, our method estimates the magnitude of potential savings due to inaccurate billing, third party invoicing for services, and unused, but billed network services that can be removed.

TMNG Global identified that the primary factor contributing to the cost of our client’s network was the prevalence of un-disconnected data circuits when the network was transformed.  Our estimate of potential savings was an annualized $36M - $50M.  Thus, we launched a four phased project to bring these costs under control.

To help reduce expenses as quickly as possible, we launched a massive data reconciliation project.  We matched circuit data between LEC/alternate carrier invoices, network element manager databases and order management and provisioning systems. We recognized that a service location cleanup was needed, due to the fact that service locations were poorly maintained, there were many duplicated/missing locations across the databases and there were no consistent addressing standards in place.  We encountered the same service location appearing multiple times in the same database in different forms.  For example, a prestige address would show in one database, and the regular street address in another or the same building could have two addresses, one for each street entrance - on different streets.

TMNG Global initiated a massive cleanup of service location addresses, in which we matched every address in every database back to the service location list, the Master Site List.  Next, every network asset was matched back to the MSL, across all systems.  Services covered in this phase included access circuits for Voice 1FB/1MB lines, SS7 trunks, BTTN/ TN assignments, Frame Relay, ATM as well as the Layer 2 data circuits, such as FR and ATM PVCs and associated ports. Our business rules allowed efficient matching of bundled services, such as Frame Relay with access circuits, in the many formats used by the different vendors.

Utilizing our S3 TeraMatch^® engine, TMNG Global was able to efficiently reconcile every circuit across the different databases, leaving only those where the data quality about the circuits was too poor; dictating the need for field circuit tracing and the assistance of carriers to carry out Tag and Locates were needed.

We then launched a program to identify circuit disconnect candidates and put in place a process to ensure these circuits were disconnected, billing stopped and claim-backs for prior unexecuted orders and phantom services were initiated. The process was steadily automated and resulted in a “Closed Loop” process for tracking through expense recovery. 

In this phase, we examined business processes for efficiency and functionality improvements. Opportunities include network and user life-cycle processes including contracts, New/ MACD ordering, provisioning, billing, care, network/fault/configuration management and financial accounting functions.

We identified many areas where weaknesses in existing processes were leading to data corruption across the OSS/BSS platforms. We conducted a detailed process improvement assessment that resulted in a set of recommendations leading to re-organization of some process areas, process consolidations, systems automation improvements and headcount re-deployment and reductions.

In this phase and using baseline information, TMNG Global built various transformation models, taking various factors into account such as wireless services integration, in order to develop recommendations with accompanying cost models that best met the client’s needs. The models are based on assessments of the potential for network transformation to generate additional savings and functionality, future needs, carrier, regulatory / legal environments and technology direction.  

We also conducted a detailed architectural assessment and made recommendations for systems designs and improvements.   An analysis of the voice network topology, call patterns and routing were used to determine other savings as well as to establish the effectiveness of a transformation to a combined MPLS-based Voice and Data network.  

Benefits to the Client

TMNG Global was able to save our client tens of millions in annual network charges, reduce their penalty payments, and provide a roadmap to improved profitability through deployment of enhanced network services. We delivered a clean Order Management, Billing, Invoice TEMS and matching NOC records. We created an accurate network inventory, improved customer service due to accurate records and provided the client with the ability to comply with SOXA.

The end result was a $15M recovery in-year, and a tracking rate of $30M annualized savings after year 1, with more in subsequent years, as this program is continuing to discover and recover unused network assets. NOC Operations were also examined and a Get-Well plan was developed and implemented to reduce the number of Severity-1 faults to bring the client into closer compliance to SLAs.  In the end, we delivered a recommendation and cost justification for a migration to VoIP over MPLS showing MRC savings of over $30M a year.