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Benchmarking

KPI’s, Trends and Opportunities for Telecom- and Network services’

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Agenda

Presentation: Pieter Vijfvinkel (METRI)

Host: Wilbert Renkema (METRI)

15:15-15:20 Introduction

15:20-16:00 Presentation

Benchmark methodology

Business Requirements & KPI’s

Trends

Statements

16:00-16:30 Questions

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BENCHMARK METHODOLOGY

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Benchmarking Scope

METRI benchmarks connectivity services

WAN and LAN networks;

Fixed and Mobile voice/data;

Internet , Security and Remote Access.

Benchmarking of Services as Described in the Agreement

Comparison based on Financial KPI's, contract and agreed service levels;

Not only externally (market prices), but also internally (costs);

International Networks and Global Services;

Not included;

Service Level Performance audit (evaluation included);

Implementation audit.

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Conditions for succesful benchmarking

Benchmark clause in agreement;

Clear Objectives;

Sense of Urgency;

Involvement of Customer and Supplier;

Sometimes need for 'mediation‘.

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Component-Based-Measurement® methodology

The METRI benchmark approach is based on a data collection process to gather the input for the market conformity comparison, based on the Component-Based-Measurement® methodology.

During this process, data is collected with multiple dimensions in mind, since METRI does not compare on just Total Cost of Ownership (TCO), but also:

Tariffs;

Volumes;

Service delivery;

Complexity;

Quality.

METRI matches the data input dimensions to a peer group based on the customers situation. By doing this, the results and the customer situation remain recognizable.

The METRI database contains componentized market data grouped on these dimensions, including the relative impact range on prices/costs.

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Comparison: unnormalized

01234567

Cost / Price

Volumes

ComplexityQuality

Service Delivery

Benchmark results - not normalisedClient

Peer Group

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Comparison: normalized

01234567

Cost / Price

Volumes

ComplexityQuality

Service Delivery

Benchmark results - normalisedClient

Peer Group

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Benchmarking Methodology and Component-Based-Measurement®

Comparison (on component level,

aligned to client structure)

Client Components

Client Environment

Peer Environments

METRI DATA

ENGINE

Peer Components

Client Selected

Peer Group

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The Management Dashboard

1) Normalised: After normalisation of the dimensions, the price/cost difference remains.

Overall Result

Service Total Service Desk Workplace Wintel Network Storage ...

Price / Cost

Complexity

Quality

Service Delivery

+1,8% +/- % +/- % +/- %+/- % +/- %+/- %

Legend

Negative icwpeer group

Neutral icwpeer group

Positive icwpeer group

Insufficient data/ Not measured

Higher than peer group

Lower than peer group

Equal to peer group

TOTAL +1,8% in comparison with peer group ‘average score’ (normalised)

2) Not normalised: For the dimensions that have been taken into account in the benchmark, differences between customer and peer group are shown.

3) The benchmark results on price/cost are used to conclude if the service or contract is market conform. The colour and the related percentage may be aligned with definitions of market conformity used by the customer and/or provider.

4) The differences on the other dimensions are not coloured, since a difference is not necessarily good or bad. These differences may nevertheless indicate opportunities for improvement or further research.

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BUSINESS REQUIREMENTS & KPI’S

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KPI’s – level of details

Costs

per

User

per

Month

Subscription and Traffic

Costs

Increasing

Level of Detail

WAN

LAN

Telephony

Fixed

Mobile

· Mobile

· National

· International

Setup and Minute Cost per

Call

Scaling and other effects

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KPI’s – different areas

Telephony nrsInfrastructure Subscriptions Traffic

Install

Project

Change

Operation

Hardware

Maintenance/SW

Service Managament(FTE)

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TRENDS

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Trends in Service Delivery

Commodity;

Flat Fee;

Packaging;

Buyers Market;

Internet whereever you go.

Requirements Reporting;

Self-service Portal;

Simplicity.

Quality Service desk (7*24 hrs);

(end to end) availability (95,5%);

Time to Repair (TTR: 4hrs).

Service delivery Asset managment – full ITIL suite.

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STATEMENTS & OPPORTUNITIES

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Statements on Opportunities

1. Perform appropriate cost evaluations using comprehensive cost of ownership: Cost categories , centers and units; Cost distributions: hardware, maintenance/software - and service management;

Configuration and asset management; Capex en Opex: trade off between change and regular operational costs; ICT and Procurement / Finance should cooperate closely.

2. You should measure your Operational Communication Effectiveness of your ‘multi media – integrated communications environment: Skype; Google Hangouts: video conferencing – chat; Blogging; Wiki (knowledge management – context management); eMail; Fixed and Smartphones. ‘Nieuwe werken’. Using:

Customer satisfaction surveys; Employee motivation surveys;

3. ‘Sense and Simplicity’; Simpler infrastructure – more complex applications; Be aware of the 'fuzz - factor'.

4. Analyse communication tools effects on management control and organization

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The End

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without the prior written permission of METRI.

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