With the proliferation of new technologies and an array of valuable assets, telecom operators face numerous and growing challenges when it comes to effectively managing assets. One of the four asset management fundamentals, asset assurance has emerged as a critical component in addressing the challenges telecom operators face in managing assets.
Regardless of the asset type – database licenses, infrastructures, spectrums, mobile handsets, etc. – each asset goes through a linear lifecycle that starts with its procurement and ends with the disposition of the asset. Given its importance, effective asset management has become a growing concern among communications service providers (CSPs). With the introduction of new technologies like 5G and the Internet of Things (IoT) combined with the industry’s ever evolving landscape, telecom operators are realising organisational processing gaps that can lead to operational losses and inefficiencies; equipment loss, theft, or displacement; inefficient controls; and a lack of centralised asset tracking.
Overcoming five key asset management challenges
The obstacles operators now face span the entire asset management lifecycle, including:
- Understanding total cost: One of the most noteworthy challenges facing operators is to have a comprehensive understanding of the total cost involved – from initial purchase through repairs and maintenance to the eventual resale or depreciation of the asset. Asset assurance enables CSPs to gain insights and clarity on cost structures, enhancing their ability to make cost-effective choices and optimise financial planning.
- Increasing complexity: With the introduction of 5G, IoT, and cloud technologies, the complexities of managing network assets will continue to grow exponentially. Densification of networks, deployment of virtual environments, and handling diverse workloads require streamlined asset management processes. Asset assurance provides a structured framework to handle the inherent complexities, ensuring assets are efficiently managed throughout their lifecycle.
- Process gaps: Process gaps within the operator’s organisation can lead to operational losses and inefficiencies. Inadequate controls and deviations from standardised asset management processes has the potential to expose the operator to risks such as equipment loss, theft, and displacement. Asset assurance emphasises the importance of robust controls, enabling end-to-end asset tracking and management. By proactively addressing process gaps, telecom operators can enhance efficiencies, reduce errors, and minimise operational losses.
- Loss of assets: Loss, theft, and displacement of equipment pose significant challenges for telecom operators. These incidents not only impact the operator’s financial books but also result in operational losses and compromised customer experiences. Asset assurance promotes rigorous tracking and management of assets, ensuring their integrity and minimising the risk of asset loss. By implementing a comprehensive asset tracking system, operators can mitigate losses and enhance their overall asset management practices.
- Inadequate controls: Inefficient controls and a lack of centralised asset tracking mechanisms can hinder effective asset management. Without proper controls in place, telecom operators may struggle to monitor assets, track their movements, and ensure compliance with industry regulations. Asset assurance underscores the need for robust controls, including asset acquisition management, distribution management, and return management. When stringent control mechanisms are implemented, CSPs can improve asset visibility, reduce errors, and optimise their asset management processes.
Essentially, asset assurance provides the framework and strategies needed to mitigate the challenges telcos face, improving inventory management, enhancing cost and marketing optimisation strategies, and enriching customer experiences.
Unlock the full potential of asset management
As touched upon previously, asset management helps operators overcome challenges through the implementation of a framework and set of strategies. This comprehensive solution encompasses a wide range of strategies such as:
- Inventory management: Vital for telecom operators, effective inventory management is only realised with asset assurance. It ensures accurate asset acquisition management, optimal storage and distribution processes, and streamlined return management. By leveraging advanced technologies and analytics, CSPs can enhance inventory visibility, minimise losses, and improve overall asset utilisation.
- Cost optimisation: When asset assurance is onboarded, telecom operators can optimise costs associated with asset acquisition, storage, repairs, and maintenance. By leveraging real-time data analytics, operators can identify cost-saving opportunities, negotiate favourable terms with vendors, and make informed decisions regarding asset disposal or resale. By optimising costs, CSPs gain the ability to increase profitability and improve financial performance.
- Marketing strategies: From a marketing perspective, asset assurance empowers operators to develop effective marketing strategies for devices. With asset assurance, accurate device pricing, bundled service offerings, buy-back programmes, and customer upgrade management can be streamlined for more effective ROI. Additionally, when marketing strategies and asset management practices are aligned, telcos can enhance customer satisfaction, drive revenue, and foster customer loyalty.
- Customer satisfaction and loyalty management: By providing the ability to offer efficient device pricing, seamless upgrade options, and hassle-free return processes, asset assurance plays a pivotal role in customer satisfaction and loyalty management initiatives. Asset assurance helps telecom operators build trust, strengthen customer relationships, enhance the overall customer experience, and boost long-term customer loyalty.
As defined by TM Forum, GB1004C Business Assurance Transformation, asset assurance is one of the core dimensions of business assurance. It acts as an essential business enabler to help telecom providers improve cost optimisation, enhance long-term profitability, meet regulatory guidelines, and protect asset value.
How to thrive in today’s dynamic telco environment
Today’s fast-growing telecommunications industry, in conjunction with the advent of new technologies, has made it imperative for CSPs to carry a wide variety of assets – both physical and virtual. Manually managing assets poses significant risks both internally and externally.
The asset assurance journey begins with a consultative approach to understand and identify the telecommunication provider’s goals and objectives, understand existing asset management processes, and identify relevant controls. The scope of asset assurance can be explained using four high-level components.
- Identify the business assurance controls to overcome the gaps in order management, order fulfillment, promotions, billing verification, device tracking, forward and reverse logistics, etc.
- Develop the required data adaptors, controls, trends, and queries to process the data needed for the desired outcome.
- Leverage actionable insights on customer devices (handsets, customer premises equipment (CPEs), etc.) across multiple dimensions – customer, products, gap analysis of technology cell sites, equipment, and SIM cards.
- Develop visualisation dashboards on equipment discrepancy, probable areas of fraud / gaps, and sale to fulfillment issues.
By implementing asset assurance, telcos can experience the transformative power it delivers, enabling them to not only survive but thrive in what has become a very dynamic and competitive industry.
Article by Rohit Maheshwari, head of strategy and products at Subex
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