labs knowledge
next-generation
BSS
the case for a
modular approach
Author: Ed Finegold, Contributing Analyst
Editor: Ian Kemp, Managing Editor Sponsored by:
ISBN: 978-1-955998-09-3
contents
03 Setting the scene
06 Chapter 1 Digital transformation is all about change
08 Chapter 2 Can CSPs transform without massive capex risk?
10 Chapter 3 What’s in a modular BSS architecture?
12 Open Digital Architecture: BSS aims for interoperability
13 Chapter 4 Reducing costs: Public cloud, BSS stacks and customization
16 Chapter 5 Towards the future: CSPs’ top BSS requirements
18 Meet the Research & Media team
2
setting the scene
Communications service providers (CSPs) are being forced to make their
businesses behave more like their digital-native peers and competitors, but “Operators have realized
most are just starting out on the journey to digital transformation.
it’s a matter of survival, so
“Gone are the days where telecom is a medium to do voice and data comms,” they are trying to be more
says Manoranjan Mohapatra, the CEO of Comviva Technologies. “Operators have digital,” says Manoranjan
realized it’s a matter of survival, so they are trying to be more digital.” Mohapatra, CEO of Comviva.
Our research for the TM Forum Digital Transformation Tracker 5 report shows
that due to the Covid-19 pandemic more than 70% of CSPs have shifted more of
their focus to customer experience (CX) and operations digitalization. More than
half worked to launch new lines of business, while 45% accelerated their adoption
of cloud-native technology.
A full 80% of CSPs have started to implement digital transformation programs or
are already benefitting from ongoing transformations (see chart on page 4).
This sudden wave of change has also left CSPs and many of their suppliers
misaligned on what it will mean to be a CSP in future, and this uncertainty places
a premium on agility, openness and innovation.
3
Status of CSPs’ digital transformation programs
45%
40% “When you have to meet
certain requirements and
35%
maybe don’t think you have
the resources, that’s when you
innovate,” says Mohapatra.
30%
25%
20%
15%
10%
5%
0%
We are just We are well along We are aware of the Digital transformation
We are in the
starting the road & reaping need to transform but is not necessary for us
planning process
implementation significant benefits have not started yet to succeed
2021 2020 2019 2018 2017
TM Forum 2021
4
But CSPs and many of their suppliers are not aligned on what a digitalized version
of their business should look like. Some 40% of suppliers see a platform-centric
future, but fewer than 30% of CSPs agree (see pie chart below).
What should CSPs aspire to become?
Best-in-class connectivity provider
14.5% (fixed, mobile, IoT)
27.7% 27.7%
Multi-play operator (fixed, mobile, TV,
broadband) partnering with internet
40% 19% companies & other digital service providers
CSPs Suppliers
Full digital service provider, sometimes
competing with hyperscale cloud
16.9% companies like Amazon & Google
27.7%
26.5% Platform provider working with partners
to bring services to market
TM Forum 2021
In the face of such divergence, a CSP’s business support system (BSS) stack must
have the flexibility to support a variety of business models. This flexibility is central
to the ability to respond to market changes and catalyze CSPs’ own service and
business model innovation.
In this ebook we consider this crucial need for CSPs to adapt BSS, and examine:
Why legacy BSS business models need to change
The barriers to BSS change and cost containment
Why some experts argue a modular BSS approach is needed
The shift from customized to configurable BSS
CSPs’ top BSS requirements.
5
CHAPTER 1
digital transformation is all
about change
Communications service providers (CSPs) face organizational barriers when
aiming for full-scale transformations.
In our Digital Transformation Tracker 5 report they identified the top five One senior architect with
challenges as: a large European CSP says:
“On average our large
transformation projects
Inflexible legacy IT arrive 150% over budget and
time. We have found that
Lack of a clear, aligned vision and goals there is a direct correlation
between the size and
success of these projects.”
Cultural and organizational issues
Shortage of skills
Product, process and other complexity.
Each of these factors, and others, can multiply scale, complexity, risk and cost in a
CSP’s transformation program. But the number one barrier – inflexible legacy IT –
sits at the center of many CSPs’ business support system (BSS) environments.
6
BSS has always presented a special challenge for CSPs because they have
shepherded billions in revenue effectively and can be perilously risky to disrupt.
Too often BSS transformation has meant CSPs facing these risks in exchange for
uncertain benefits.
High risk and failure rates validate cautious CSP executives who do not want to
risk disruption. But in the BSS world, a growing number of voices say it is the
legacy BSS business model that must change to meet operators’ need for more
speed and less cost.
DIGITAL
TRANSFORMATION
A legacy licensing model that delivers periodic releases and monetizes custom TRACKER 5
change requests has forced many CSPs to rethink how they approach BSS.
Authors:
Annie Turner, Contributing Analyst
Mark Newman, Chief Analyst
Editor:
Dawn Bushaus, Managing Editor
May 2021
“BSS is broken,” says one
senior VP at a global BSS Sponsors:
supplier. “It’s a business
model that can’t carry on.
Operators simply cannot [Link]
afford expensive change
requests, and even vendors
who charge a fortune for
those requests realize that READ THE DTT5 REPORT
the situation has to change.”
7
CHAPTER 2
can CSPs transform without
massive capex risk?
Legacy business support system (BSS) replacements impact people and
processes as well as systems. New user experiences mean staff must learn,
transition to and master new systems and process changes to do their daily jobs.
“In most cases you are
“In most cases you are replacing a legacy system and you can’t change that replacing a legacy system
completely because the learning and unlearning process is time-consuming and and you can’t change that
expensive,” says Mohapatra at Comviva. completely because the
learning and unlearning
CSPs must ask themselves if they can transform BSS in a way that: process is time-consuming
and expensive,” says
Mohapatra.
Contains capex costs
Minimizes disruption for teams
Enables incremental deliveries and milestones
Delivers useful digitalization in stages.
8
Mohapatra believes CSPs can achieve these aims using a step-function approach
to transformation that avoids a major capex outlay and business disruption (see
graphic).
Step-function 12 months
And to support a step-function transformation, modular BSS can prove transformation
Complete BSS
program
advantageous. In the next chapter we look at what is in a modular BSS architecture. timeline
6 months
Minimum viable
product & initial
step-function transformation timeline service launch
3 months 3 months
Assess, design, implement Assess, design,
implement
6 months
Minimum viable product & initial service launch
12 months
Complete BSS program
TM Forum 2021
“We tell customers we are not expecting you to rip apart what you
have, but rather to launch new digital services on the new stack while
running current services and not interrupting solid legacy processes,”
Mohapatra says.
99
CHAPTER 3
what’s in a modular BSS
architecture?
One western European tier-1 operator which has moved to a modular,
ecosystem-based business support system (BSS) designed to support different
business customers, says: “In the past we have had many different business units
and many different software stacks.”
But by creating a containerized ecosystem, which consists of pre-approved BSS
modules developed in-house or by certified third-party suppliers, the operator can
now create BSS solutions quickly to suit each use case and customer size (see
Open Digital Architecture page 12).
This modular approach has enabled the CSP to address new industrial IoT markets
with solutions and connectivity. It can now leverage new BSS modules that track
dynamic pricing, monitor service-affecting network performance and instantiate
new virtual network functions (VNFs) and edge compute services.
A modular BSS should be “digital native, cloud native, highly modular and highly
flexible”, says Mohapatra at Comviva. “You don’t know what the services will be, so
the platform must be extensible, adaptable and must let CSPs bring in new services
and new partners more easily.” The ability to “mix and match” components is a
central tenet of modularity, enabling CSPs to launch services and adapt to market
conditions faster.
10
The graphic below is an example of a modular BSS architecture that leverages TM
Forum’s Open Digital Architecture (ODA). Its purpose is to define functional BSS
components according to common definitions. Component integration is simplified
via TM Forum Open APIs to enable superior solutions delivered faster, while The key to making modular BSS
lowering the cost to deliver and maintain the BSS. work while achieving digitalization
is embracing openness. Mohapatra
Example of an ODA-based modular BSS architecture says: “Like Open RAN in 5G
networks, BSS is moving in
Party Management that direction, becoming more
standard and more compliant
Billing Sales with TM Forum APIs, and that
Customer Sales
Information
Account Channel
Mgmt would give the confidence that
Mgmt Mgmt any SI [systems integrator] could
combine these pieces.”
Contact Customer Collection Party
Center Billing Mgmt Payments
Core Commerce Management
Order
capture & Product Contract Campaign
Management
Design Mgmt Mgmt
Intelligence
validation
Order Product Charging Experience
Mgmt Catalog Mgmt
TM Forum 2021
11
open digital architecture:
BSS aims for interoperability
“Operators have realized they can’t run a monolithic voice and data network and
make enough money,” explains Mohapatra. “So, to make the system enabled for
third-party services and integrations you have to commit to an open system.” No
re n re tific
po at
The TM Forum Open Digital Architecture provides a component-based approach Co ctio rti ion
n ng /
to operational and business support systems (OSS/BSS) that defines standardized, fu
interoperable software components organized into loosely coupled domains.
Man
o gem
An ODA component is an independently deployable piece of software, typically
p
urit
e
built out of one or more microservices. Components have an “envelope” that
a
rati ent
Sec
provides metadata to describe its core function and specify which Open APIs it
on
exposes or depends upon.
Environment
dependence/
These components expose business services through TM Forum Open APIs built on requirements
a common data model. The ODA also provides machine-readable assets, software
code, a reference implementation and a test environment. Required Provided
Open APIs Open APIs
The ODA Component Accelerator is developing a reference implementation to
test commercial ODA components for interoperability and catalyze a market for TM Forum 2021
standardized software components to run service provider businesses.
“Open API-ization is necessary,” says Mohapatra at Comviva. “We are heavily
committed to TM Forum’s Open API programs.”
12
12
CHAPTER 4
reducing costs: public cloud, BSS
stacks and customization
TM Forum research for Digital Transformation Tracker 5 found that 66% of CSPs
are employing a hybrid cloud approach – using both private and public clouds (see
chart). Only 13% are taking a public cloud-first approach or working with a single
public cloud provider.
CSPs’ approach to cloud migration
Hybrid cloud approach
(public & private) 66%
Private cloud 34%
Prefer to work with multiple
public cloud providers 23%
Public cloud first approach 8%
Prefer to work with a single
public cloud provider 5%
TM Forum 2021
13
Mohapatra argues that “public cloud has many advantages and is much cheaper
from a total cost perspective”, but he admits that among CSPs “public cloud
adoption is a little slow but changing”. He adds: “We prefer public cloud and we
work with them all.”
TM Forum research finds 77% of CSPs worldwide have moved less than 15% of
their IT workloads to public clouds, with security, control and cost their main
concerns when setting a cloud strategy (see chart).
CSPs’ top 3 cloud strategy concerns
97%
84% 82%
Security Control Cost
TM Forum 2021
how many stacks?
Because 65% of CSPs say cost reduction is their top driver for digitalization,
debate arises as to whether one BSS stack can support both consumer and
business customers.
“The base platform is common,” says Mohapatra, “but a B2B workflow is very
different from a B2C workflow. The non-functional requirements like user
management and reports are common building blocks, but the workflow
management is very different.”
14
Ideally, Mohapatra says, 70% to 80% of the common base functionality will
already reside in a modular BSS to minimize customization, which can focus on
implementing an operator’s specific non-standard requests.
According to our research for the report Future enterprise billing: the big picture,
58% of CSPs have already converged their billing stacks or plan to, while 42% have
separated B2B and B2C or plan to (see chart).
Status of CSPs’ billing stacks
Status of CSPs’ billing stacks
3%
They are separate, and we plan to keep them so
19.5%
28% They are separate, and we expect to increase separation
They are separate, but we expect to converge them
They are converged, and we expect to keep them so
38.5% 11%
They are converged, but we expect to separate them
TM Forum 2021
modular BSS minimizes costs
Reducing customization costs has become both a priority and an opportunity as
BSS goes digital, cloud-native, modular and open.
Mohapatra says a modular BSS should minimize customization, delivering 70% to
80% of needed functionality configurable in the platform. “Customization has gone
down significantly in features, functionalities and flows,” he says, “but in a telco
environment there’s a lot of integration that happens and those integrations are
not yet standard, so they are still customized.”
The remaining customization can then focus on implementation specifics and
attending to regional customer experience variations. “Every culture and region
prefers different user experiences, and you have to customize,” Mohapatra says.
15
15
CHAPTER 5
towards the future:
CSPs’ top BSS requirements
Digitalization has introduced cloud-native ways of working to CSPs, but much CSPs’ most
CSPs’ urgent
most new
urgent BSS
new
like business support system (BSS) transformation, changing IT culture and requirements
BSS requirements
methodology has proven to be a gradual process.
For example, while a supplier may run its product development teams in the Agile
world, the CSP may continue to run delivery using waterfall methodology because
that’s what its people know best.
Suppliers are responding to this dual reality, explains Mohapatra, by delivering
containerization and continuous integration / continuous deployment (CI/CD) to 41% support for
speed up change requests compared to legacy processes. granular
61%
charging
forward-looking BSS functions
automated service
configuration 78%
flexibility &
As BSS environments advance to keep pace with a rapidly digitalizing marketplace, scalability
CSPs say a range of capabilities are now needed urgently to support their new
service plans such as 5G and complex B2B solutions. 60% 54% 40%
integrated digital zero-touch
58%
experience end user openness
The graphic right shows CSPs’ most urgent new BSS requirements based on our
research for the report Is BSS ready to monetize enterprise 5G?
76%
real-time
revenue
These priorities show how BSS has evolved far beyond billing to encompass many customer
analytics
advanced customer experience capabilities. And it completes billing’s evolution
from a batch-based, offline invoicing process to an array of real-time monetization
capabilities.
55% ecosystem
enablement
TM Forum 2021
16
what will define a transformed BSS?
A transformed BSS requires a rethink across architecture, functionality, cloud-native,
openness and ODA-compliance. About Comviva
“CSPs need something digital,” says Mohapatra, whose Comviva team created its We are among the leaders of
modular, digital- and cloud-native Blue Marble BSS from the ground up. “You don’t mobility solutions providers and
know what the services will be, so the platform must be extensible, adaptable, and cater to over two billion platform
must let CSPs bring in new services and partners more easily.” users globally. Our technology
products enable our customers
What BSS must deliver going forward is to enable CSPs to adapt fast and capitalize to increase revenue, operate
on the unknown. The critical characteristics of a transformed BSS include: profitably and make a difference.
With a global network of
Flexibility – to introduce new services and enable agility to support multiple customers, partners, employees,
and new business models. and thought leaders, Comviva
helps the world run better and
Configurability – reducing or eliminating reliance on custom code reduces a
improves people’s lives.
chronic cost center for CSPs.
For more information please visit:
Interoperability & Open Digital Architecture compliance – key to modularity,
[Link]
ODA compliance simplifies integration and enables CSPs to mix and match
BSS components, including legacy systems that continue to make valuable
contributions.
Public, private & hybrid cloud – BSS should be able to span them all, as
needed, and leverage the scale and cost advantages of public cloud.
Automated & real-time – CSPs’ most urgent BSS needs now emphasize
automated, real-time functionality to support customer experience and
monetization demands.
17
Meet the Research & Media team
Published by:
Author: Editor:
Ed Finegold Ian Kemp TM Forum
Contributing Analyst Managing Editor 4 Century Drive,
efinegold@[Link] ikemp@[Link]
Parsippany,
NJ 07054
USA
Chief Analyst: Editor in Chief, Inform:
Mark Newman Joanne Taaffe [Link]
mnewman@[Link] jtaaffe@[Link]
Phone: +1 973-944-5100
Fax: +1 973-944-5110
Principal Analyst: ISBN: 978-1-955998-09-3
Digital Marketing Manager:
Dean Ramsay
Anna Kurmanbaeva
dramsay@[Link]
akurmanbaeva@[Link]
Customer Success
& Operations Manager: Global Account Director:
Ali Groves Carine Vandevelde
agroves@[Link] cvandevelde@[Link]
Commercial Manager,
Research & Media:
Tim Edwards
tedwards@[Link]
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