Identifying the Telecommunications Industry’s Differentiating Business Processes

Objective

After completing this lesson, you will be able to identify key differentiating business processes and activities within the Telecommunications industry’s value chain.

Business Processes in the Telecommunications Industry

The image consists of three sections: Infrastructure Companies (InfraCo) represented by power transmission towers, Service Companies (ServCo) illustrated by a person working at a computer in an office setting, and Mobile Virtual Network Operators (MVNOs) depicted by a telecommunications tower near a body of water.

Horizontal, industry-agnostic functions such as finance, HR, and procurement support these core processes. New business models and telco types focus on specific process subsets.

  • Infrastructure companies (InfraCos) or tower companies focus on planning, building, and operating infrastructure, serving other telcos rather than end consumers. They do not handle customer acquisition and retention.
  • Service companies (ServCos) and Mobile Virtual Network Operators (MVNOs) focus on customer experience, customer journey, and monetization without owning the network infrastructure.

The eTOM Framework for Telco Business Processes:

The eTOM (Enhanced Telecom Operations Map) Framework is a model for telecom providers to efficiently manage business processes. Developed by TM Forum, it offers a structured approach with key descriptions for running a service-focused business.

Key Features:

  • Hierarchical Structure: Organizes processes from strategy to operational tasks.
  • Major Areas:
    • Strategy, Infrastructure & Product: Covers planning, infrastructure, and product management.
    • Operations: Includes customer activities and service delivery.
    • Enterprise Management: Focuses on support and supplier interactions.
  • Standardized Language: Reduces implementation and integration costs by providing common terminology.
  • Process Interaction: Shows how processes connect within the telecom value chain.

Benefits:

  • Efficiency: Streamlines operations, enhancing service delivery.
  • Agility: Promotes agile and responsive business processes.
  • Integration: Facilitates seamless integration of enterprise systems for service and support.
The image showcases three icons representing different support systems: a storefront for Business Support System (BSS), a set of tools including a hammer and wrench for Operations Support System (OSS), and a person pointing at a board with a certificate for Management Support System (MSS).

Finally, let's explore the high-level domain landscapes that enable telco processes:

  • Business Support System (BSS): BSS handles core billing and Customer Relationship Management (CRM), covering the entire customer journey and experience. This includes sales, marketing, commerce, and e-channels, supporting the complete customer lifecycle.
  • Operations Support System (OSS): OSS manages networks, including activation, provisioning, resource and inventory management, monitoring, and performance optimization.
  • Management Support System (MSS): MSS includes back-office functions such as finance, supply chain, procurement, and HR.

Some telcos also have a fourth domain for technology platforms, including data warehouses, business analytics, and AI/ML functions.

Lesson Summary

  • Key business processes in telecommunications include planning, customer engagement, supply chain management, billing, and optimization.

  • eTOM framework provides a comprehensive standard for telco business processes.

  • Support systems like BSS, OSS, and MSS are crucial for managing various aspects of telecommunications operations.

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