Value Engineering & Revenue Assurance: Middle East Consultant Provides Sustainable RA Model Advice

July 31, 2012 - PRLog -- Engineering and architectural disciplines have a role to play in telecom revenue assurance (RA).  Indeed risk assessment and long range, yet flexible, RA planning can sharpen a carrier’s RA program and lead to better use of revenue assurance software and integration services.

That’s the perspective of Maged Fawzy, a former Solutions Architect at a large telecom operator in Egypt.  Being a telecom engineer with revenue assurance experience at a few operators in the Middle East, Fawzy has some keen architectural advice for revenue assurance pros around the world.

In this exclusive interview with Black Swan Journal, Fawzy urges operators to do more planning and continuous analysis of RA’s mission.  He feels this is secret to RA success in today’s highly fluid telecom market.

The article is entitled “Bringing Strategic Planning & Value Engineering to Revenue Assurance” http://bswan.org/value_engineering.asp

Here are highlights of Fawzy's perspective from the interview:

Can a Financial Function like Revenue Assurance Mix with Telecom Engineering?

“Revenue assurance is not foreign to engineering.  RA is a mixed-discipline of technology and risk assessment.  Network knowledge is certainly needed in RA.  When I worked in IT, my background allowed me to bring some scope and insights to other members of our team.

And now, as telecom engineering gets complicated with new disruptive technologies like LTE and WiMax, people are generally not familiar with some of the service risks of launching such networks.”

How do Middle Eastern operator differ their from European Counterparts.

“There are wonderful growth opportunities in the Middle East, but their architecture is often flawed because the tendency is to buy, buy, and buy, then structure solutions alongside each other.  In Egypt, most of the operators are simply doing vendor management.  They offshore everything, so there’s not much in-house development.”

What can Operators do to Improve their Revenue Assurance Practice?

“I think the concept is to know your internal systems quite well and have an IT map.  You also need to know your risk areas and have a sense of direction.  You need structure and flexibility at the same time.

Basically you need to plan up front and then flexibly adapt.   That strategy is the cornerstone of RA services companies, like PwC, Ernst & Young, and KPMG.  In fact, consultancy and risk assessment should be the primer of architecture and design before rushing off to buy a software solution or do systems integration.”

Are Revenue Assurance Pros Happy with their Software Tools?

“Operators are seeing mixed results.  A revenue assurance tool is usually great in the beginning.  It finds buckets of dollars, but over time the costs add up as you maintain the software year over year.  The problem comes when an operator brings in new technology like LTE or new business models.  When that happens, things go crazy and RA software doesn‘t adapt well to the changes.”

On Buying Revenue Assurance Software

“Some operators are certainly succeeding at implanting full end-to-end controls on revenue streams across your horizontal systems.  So it can certainly be done.  Yet the state-of-art practice should not be “One Solution Fits All”.

However you need to hone in on the revenue process controls and utilize the specific purpose you bought the solution for.  Don‘t buy broad revenue assurance software: buy software to get a certain risk area covered.”

How Operators Can Get More Useful Life out of their Revenue Assurance Software

“Better planning and continuous analysis of the current situation is what’s needed.  For instance, when they initially buy software, most carriers conduct a thorough product cost-benefit analysis and evaluate software vendors.

Trouble is, the software purchase analysis is treated as a one-and-done type of thing.  Ironically, the same diligence used to select the software is not continued.

Here’s where value engineering is key.  As it turns out, the value actually doesn‘t reside in software products or the business controls themselves.  The value comes from empowering the people with a sustainable model.  Software needs to fit in with the dynamics of your company and your high priority activities.”

About Black Swan Telecom Journal

The Black Swan Telecom Journal http://bswan.org is an on-line zine dedicated to the professionals and executives who protect and grow a robust communications business.   The Journal covers a broad range of strategic issues, operator case studies, consultant perspective, and solution vendor advice, particularly in the fields of revenue assurance, fraud assurance, cost/margin management and security.