Kap 12 The Devil Is in the Details

Kap. 12 – The Devil Is in the Details How Information Technology Is Conquering the World: Workplace, Private Life, and Society Professor Kai A. Olsen, Universitetet i Bergen og Høgskolen i Molde – i samarbeid med Chief Information Officer (CIO) og professor Jim G. Williams.

Telekommunikasjonsindustrien Deregulering av telekommunikasjonsindustrien i USA i 1996 l Hensikt: l l l l Kai A. Olsen, 17. 09. 2020 Åpne for nye aktører Mer konkurranse Lavere priser Flere produkter Utnytte ny teknologi (IPtelefoni, mobil…) Også deregulering av fly, tog, bussruter, kraftlevering…

Konkurranse Kai A. Olsen, 17. 09. 2020

Deregulering Kai A. Olsen, 17. 09. 2020

1996 l De tradisjonelle selskapene ble tvunget til å åpne sin infrastruktur for nykommere: l l l Linjer Sentraler Programvare En initial suksess, mange nye selskaper kom på kort tid l Senere viste det seg at dette ikke var så enkelt. l Kai A. Olsen, 17. 09. 2020

Problemer l Operations and Support Systems (OSS): l l l Registrere nye kunder Sette opp samtaler Fordele inntekter mellom aktører Svært komplisert l Skapte problemer for de nye aktørene l Kai A. Olsen, 17. 09. 2020

Ikke enkelt l I år 2000 var det mer enn 700 nye teleselskap i USA l 90 % av alle måtte gi opp. l En fikk ikke det konkuranseutsatte markedet en hadde bedt om. Kai A. Olsen, 17. 09. 2020

Telekommunikasjon spesielt vanskelig Basert på en teknologi som ble oppfunnet for 150 år siden l Dominert av store aktører i 130 år l Mesteparten av infrastrukturen er lagt ned over lang tid, til en meget stor kostnad. l Forskningsdrevet, hard konkurranse fra nye løsninger (dataoverføring, streaming, IP telefoni, Skype, Watts. App, Twitter, Facebook, Instagram…) l Kai A. Olsen, 17. 09. 2020

Krevende tjenester l l l Kai A. Olsen, 17. 09. 2020 Mens et nytt flyselskap kan nøye seg med å trafikkere noen få strekninger, må teleselskapet akseptere at kundene ringer til hele verden Teleselskapet må operere under et strengt regelverk (nødsamtaler m. m. ) Det krever samarbeid også med konkurrenter Mange standarder, store avvik fra standarden Komplekse prisfastsettingssystemer (verre i USA enn i Norge)

Forutsetter Gode backoffice systemer De finnes ikke Krever stor egeninnsats for å få selv ferdige systemer til å virke l Krever høy egenkompetanse l Vi skal se på en case, et CLEC (Competitive local exchange carrier) l l l Kai A. Olsen, 17. 09. 2020

Case: Broad. Street Communication l l l l Kai A. Olsen, 17. 09. 2020 Et eksempel på et teknologisk oppstartfirma Et amerikansk firma som forsøkte å utnytte deregulering i telesektoren Hadde over en milliard norske kroner i oppstartkapital Merk at dette firmaet hadde som idé å tilby sin egen teknologi (som Tele 2 og Netcom, men ikke som Chess, Ludo, Talkmore… som er rene salgskontor) Her skal vi se på alt fra forretningsidé, teknologi og tekniske løsninger. Her presentert av Jim Williams som var CIO (Chief Information Officer) for firmaet For en mer generell beskrivelse se kap. 12 i læreboken.

Broadstreet - Business Plan l l l l What Offerings (services, products)? Who and Where are the customers? Who and Where is the competition? How will the services be delivered? What technologies can be utilized? What is the cost of Selling and delivering service? What resources are required to deliver and support the services? Kai A. Olsen, 17. 09. 2020

The Business Plan l What system architecture is required? l What processes, functions, procedures, etc. are needed? l What are the capacities and volumes of the resources needed? l What Financial Resources are Needed? l The Economic Model Kai A. Olsen, 17. 09. 2020

Company Background l Competitive Local Exchange Carrier (CLEC)/(Telephone Company) l 3 Venture Capitalists - $62 Million l 1 Finance Company - $120 Million l 16 markets (cities) East Coast USA l 8 Founders l Estimated 400 employees Kai A. Olsen, 17. 09. 2020

Company Background l Broadband Services to Businesses l l Small to Medium (6 – 50 employees) Underserved Market by ILECS DSL (Digital subscriber line) to the Premise (datalinje til kunden, Vo. IP…) l ATM (Asynchronous Transfer Mode) backbone (tradisjonell telelinje, Vo. ATM) l All Digital Packet Switched Network to the PSTN (Public Switched Telephone Network) l Offices in each city fully staffed l l l Sales (15), Customer Care(3), Technicians(3) Management, etc. (4) Kai A. Olsen, 17. 09. 2020

Technology Architecture Telephone 4 – 16 port IAD at Customer Premise ILEC Central Office Fax PC/ Hub/ Router Local Loop 1 Central Office per market LSO with a 720 Port DSLAM (Digital Subscriber Line Access Multiplexer) 45 – 155 Mbps ATM Voice PSAX GR 303 ATM Router Digital Switch Pathstar/5 -ESS Data Springtide Router ILEC Central Office LSO Kai A. Olsen, 17. 09. 2020 PSTN Other Market PSAX NOC Data NOC Network Alarms and SNMP Packets Internet 911 Center

Services l Voice Services l l l l Local Long Distance Voice Mail Features (Call Forward, Caller ID, etc. ) PBX and Keyset Support Calling Cards Data Services l l l Internet Access (386 kbps to 2. 3 mbps) VPN Email Web Hosting Kai A. Olsen, 17. 09. 2020

Other Players l ILEC (Incumbent Local Exchange Carrier) l l l Own local loops Own Telephone Numbers Own the Customer IXC – Interexchange Carriers (Long Distance) l ITC – Independent Telephone Companies l 911 l Caller ID, Ported Numbers l Kai A. Olsen, 17. 09. 2020

New York State LATAs LATA - Local access and transport area (US inndeling i teledistrikt) Kai A. Olsen, 17. 09. 2020

Svært komplisert l Registrering av kunder l Oppsetting av samtaler mellom mange aktører l Kompleks prissetting l Kompleks fordeling av inntekter (mellom leverandører) l Vi skal se på noe av denne kompleksiteten (detaljene her er ikke pensum) Kai A. Olsen, 17. 09. 2020

CLEC TO BA (ILEC) LOCAL Fra nytt firma til eksisterende firma lokale samtaler. Call Direction LOCAL/TOLL TRUNKS CLEC EO TST BA or EO DT Usage Billing Concept • Reciprocal Compensation BA Bills CLEC - Facilities Tandem Switched Transport (TST) • Entrance Facility or Cross Connect Direct Trunked Transport (DT) • Entrance Facility or Cross Connect • Channel Milage (EO to EO) BA Bills CLEC - Usage • Local charges for MOUs TANDEM or END OFFICE Factors Exchange Required CLEC to BA • PLU Factor Record Exchange Required NONE 21

CLEC TO BA (ILEC) INTRA LATA TOLL Fra nytt firma til eksisterende mellom teleområder (LATA) Call Direction LOCAL/TOLL TRUNKS CLEC EO TST BA EO or DT Usage Billing Concept • Switched Access BA Bills CLEC - Facilities Tandem Switched Transport (TST) • Entrance Facility or Cross Connect Direct Trunked Transport (DT) • Entrance Facility or Cross Connect • Channel Milage (EO to EO) BA Bills CLEC - Usage Tandem Connection • Local Switching • Tandem Transport • Fixed • Per Mile • RIC • CCL End Office Connection • Local Switching • RIC • CCL Factors Exchange Required CLEC to BA • PLU Factor Record Exchange Required NONE 22

BA (ILEC) TO CLEC LOCAL Fra eksisterende til nytt – lokale samtaler. Call Direction LOCAL/TOLL TRUNKS CLEC EO TST or BA EO DT Usage Billing Concept • Reciprocal Compensation CLEC Bills BA - Facilities Tandem Switched Transport (TST) • Entrance Facility Direct Trunked Transport (DT) • Entrance Facility CLEC Bills BA - Usage • Local Termination charges for MOUs in accordance with CLEC tariff/agreement. Factors Exchange Required BA TO CLEC • PLU Factor Record Exchange Required NONE 23

BA (ILEC) TO CLEC INTRA LATA TOLL Fra eksisterende til nytt mellom områder (LATA) Call Direction LOCAL/TOLL TRUNKS CLEC EO TST BA EO or DT Usage Billing Concept • Switched Access CLEC Bills BA - Facilities Tandem Switched Transport (TST) • Entrance Facility Direct Trunked Transport (DT) • Entrance Facility CLEC Bills BA - Usage • Switched Access Charges for MOUs in accordance with CLEC Tariff/Agreement. Factors Exchange Required BA to CLEC • PLU Factor Record Exchange Required NONE 24

CLEC TO AN IXC (ATT, MCI, SPRINT) Fra nytt til langdistanse-selskap. Call Direction IXC SUBTENDING OZZ/CIC FGD/B (Group) CLEC EO Usage Billing Concept • Switched Access • Meet Point Billing • Multiple Bill/Multiple Tariff BA Bills CLEC - Facilities Tandem Switched Transport (TST) • Entrance Facility or Cross Connect BA Bills IXC - Usage • Tandem Switching • Portion of Transport CLEC Bills IXC - Usage • Switched Access Charges for MOUs in accordance with CLEC tariff/agreement. CLEC Bills BA - Usage • Not Applicable Factors Exchange Required IXC to CLEC - FGD Factors Record Exchange Required CLEC makes originating record CLEC to BA • EMR 115002 • (Exchange Message Record) 25

IXC TO A CLEC Fra langdistanseselskap til nytt. Call Direction IXC SUBTENDING OZZ/CIC FGD/B CLEC EO Usage Billing Concept • Switched Access • Meet Point Billing • Multiple Bill/Multiple Tariff BA Bills CLEC - Facilities Tandem Switched Transport (TST) • Entrance Facility or Cross Connect BA Bills IXC - Usage • Tandem Switching • Portion of Transport Factors Exchange Required IXC to CLEC - FGD Factors CLEC Bills IXC - Usage • Switched Access Charges for MOUs in accordance with CLEC tariff/agreement. Record Exchange Required BA to CLEC • EMR 110101 (Exchange Message Record) CLEC to BA • EMR 115002 CLEC Bills BA - Usage • Not Applicable 26

CLEC TO CLEC LOCAL Fra nytt til nytt lokalsamtaler. Call Direction LOCAL/TOLL TRUNKS (Originating) Usage Billing Concept • Transit Service (Terminating) CLEC EO EO BA Bills Originating CLEC - Usage • Transit Service Charges • Recovery of Local Termination charges for MOUs paid by BA to Terminating CLEC Bills BA - Usage • Local Termination charges for MOUs in accordance with Terminating CLEC tariff/agreement Factors Exchange Required Record Exchange Required 11 -01 -01 to NYSP bills Originating CLEC for Transit Service Charges 27

CLEC TO ITC LOCAL/INTRA LATA Fra nytt til langdistanseselskap lokalt eller innen området (LATA) Call Direction FGC-LIKE TRUNKS LOCAL/TOLL TRUNKS ITC CLEC EO EO MP Usage Billing Concept • Transit Service • Meet Point Billing CLEC and Independent must have billing agreement. ITC subtends a BA Access Tandem BA Bills CLEC - Usage • Tandem Switching • Tandem Transport - Fixed - Per mile from SWC to MP Independent Bills CLEC - Usage • Charges for MOUs in accordance with tariff/agreement. Factors Exchange Required NONE Record Exchange Required • BA to ITC - 110101 • ITC to BA - 115002 28

Pre-Sale System (Broad. Street) Customer Care (Arbor/BP) E 911, PIC/CARE Number Portability Other Interfaces (Arbor/BP) Help Desk Trouble Ticket (Remedy) Kai A. Olsen, 17. 09. 2020 Order Management System (Arbor/OM) Provisioning (Dset, BA) Internet, Intranet, Extranet Billing (Arbor/BP) Financial Accounting System Payroll (Payroll One) Web Site System Components Human Resource System (Employease)

Build or Buy Decision l Time to Build vs. Time to Implement l Cost to Build vs. Buy Cost l Maintenance/Support Costs l Internal Resources to Operate l Control over Changes l Quality of Support l Functionality l Openness to Integration Kai A. Olsen, 17. 09. 2020

Customer Inquiry Services Rates Discounts Formats Customer Account Maintenance Arbor/BP Customer Care Prospects, LSOs, Employees, Inventory, Maps, Regulatory, Competition, etc. Payroll Financial Accounting System Pre-Sale System Analysis ILEC, IXC Revenue and Payments GL, AR, AP, Assets, Purchasing, etc. Human Resources Sales System Order Data Arbor//BP Billing Network Monitoring Fault Management Customer Intelligence Commissions Arbor/OM Contract, Letter Arbor/OM Remedy Trouble Ticket Databases Installation Configuration Notifications Customer, Sales Back Office System Flow 03/16/2000 Kai A. Olsen, 17. 09. 2020 Provision E-Bonding ILECs, CLECS, IXCs Maintenance Tools Loop. Care Customer Usage Bill. Dats Software ILEC, IXC Charges, Inventory, Times

Trading Partners System Interface (EDI, CORBA) Validation Quintessent OM ILEC Provisioning ILEC & Quintessent Arbor/BP Presale & Sales Software Architecture Informix DBMS i. Planet Web Server SUN SOLARIS O. S. HPUX O. S. Loop. Care Bill. Dats Sybase DB DSL line Qualification Remedy Trouble Ticketing Oracle DBMS Remedy Help Windo Desk ws 2000 O. S. Web Server (IIS) Financial & Asset Management Mail Server (Exchange) Desktop Applications Public Kai A. Olsen, 17. 09. 2020 Network Fault Management (NFM) SQLServer Broad. Street Employees GIS System Broad. Street Customers

Back. Office Support Architecture ILEC/LSR PIC/Care Pre-Order Gateway Server Customer Care Arbor/OM and Arbor/BP Order Entry Servers Product Configuration Oracle DBMS ILECs Verizon, Etc. Sprint Mgt 5 ESS Switches Sprint LD Mediation Servers DBMS Invoicing Payments Journals 3 COM Messaging Remote Network Devices Cajun View Navis Loop. Care Kai A. Olsen, 17. 09. 2020 NOC and Provisioning Servers Oracle DBMS Ordering and Provisioning Data Capture E 911 Financials Desk Top Remedy Help Windows 2000 Servers Apps Desk Web Server SQL Server DBMS Mail Server LNP LIDB Internet Intranet CMDS Extranet Remedy Trouble Ticket NFM 911 Service Requests MSAG Data Updates Inventory IPs, Tele No. IADs, Stinger Circuits

Critical Factors for Success l In real estate the 3 critical factors are: l Location, and Location l In Telecommunications the 3 critical factors are: l Execute, and Execute Kai A. Olsen, 17. 09. 2020

Issues l Many standard systems were inadequate l Sales Force Automation on Laptops was hard to control (Sales People) l Marketing was constantly dreaming up new plans l Electronic Billing format standards were not followed by the ILECS and IXCs. l ILECS were not very cooperative Kai A. Olsen, 17. 09. 2020

Konkurranseutsetting Deregulering fører ikke nødvendigvis til en god konkurransesituasjon l Selv om en med telekommunikasjon forsøkte å imøtekomme alle krav fikk en ikke den konkurransen en håpet på. Kompleksiteten i å sette opp samtaler og i betalingssystemene gjorde det vanskelig for nye aktører l I andre sektorer kan en møte andre problemer: l l l For få aktører (ferge, jernbane og Hurtigrute i Norge) Samarbeid mellom aktører (asfalt m. m. ) For store samfunnsmessige konsekvenser ved å miste aktører (bank og forsikring) Problemet er kanskje at bedriftene ikke er interessert i konkurranse. Kai A. Olsen, 17. 09. 2020

Konklusjon En mengde detaljer kan drepe et datasystem, et prosjekt eller en foretningsidè. l I vårt eksempel var problemet svak standardisering i infrastrukturen og en mangel på adekvat (standardisert) programvare. l Ellers er suksessen til et prosjekt ofte avhengig av at vi kan sette realistiske mål l og unngå ”nice-to-have” funksjoner. Dvs. at vi konsentrere oss kun om det viktigste (i hvertfall i første fase). l Kai A. Olsen, 17. 09. 2020