Service providers today are facing unprecedented economic challenges. ARPU is being driven down as consumers and businesses seek to control communication costs. Complicating the impact of market forces is the fact that the deferral of capex and opex investments is delaying the operating gains and return on investment from next-generation OSS/BSS (NGOSS) investments. In short, increased pressure on profits and growth is mounting in the communications services sector and a new and holistic business approach is needed to overcome these challenges.
Operators that weather the downturn and emerge stronger are those that manage to optimize their business operations and maximize profitability with the least amount of investment.
Simply put, Business Optimisation is a sum total of ‘protected revenues’, ‘reduced costs’, and ‘assured operations’. It focuses primarily on the profitability of the business – making sure all possible revenues are collected, fraud is prevented, inter-carrier expenses are managed efficiently, and the overall operational state of the business is monitored.
Subex ROC® Portfolio for Business Optimisation
The ROC® (Revenue Operations Center) and its key components constitute Subex's Business Optimisation portfolio. These components, ROC Fraud Management, ROC Revenue Assurance, ROC Credit Risk Management, ROC Route Optimisation, ROC Partner Settlement, ROC Cost Management and ROC Data Integrity Management, come together to help CSPs prevent fraud losses; collect all revenues; reduce defaulted payments; reduce wasteful expenditure; manage inter-carrier and partner expenses; and defer or even avoid capex.
Analysys Mason recently released report, Billing systems: worldwide market shares 2010 (September 2011), described Subex as the market leader in the Business Optimisation space for the fourth year in a row. Analysys Mason reports the Business Optimisation market worth nearly $760 million in 2010 which grew by 6.9% in comparison to 2009. Subex leads the pack in this space with 8 percent market share. Justin van der Lande, Senior Analyst, Analysys Mason said, “Subex has become the market leader thanks to strong growth in 2010. The company’s Revenue Operations Center (ROC®) has a growing customer base in mature markets, and has achieved some growth in emerging markets. Subex has a strong product offering in the business optimisation sub-segment with installed base of 300 clients in more than 70 countries. The company also has growing capability in analytics specific to CSPs”. According to Analysys Mason, Business Optimisation includes fraud, revenue assurance, analytics, cost management and credit risk management. These are all factors that do not generate revenue directly, but ensure that the most revenue is collected and least cost incurred, therefore maximising profit from the business.