Figure 3Consultative approach to meeting needs.The service network is fundamentallyabout developing a controllable productionenvironment for the operator—for creating,launching, managing and charging for servicesbeyond voice. It is in this domain thatthe operator addresses content, manages servicesdevelopment and launches services.Prepaid billing, roaming and customer relationshipmanagement (CRM) are just afew of the aspects that pertain to the servicenetwork.Consultancy front-endBy following a step-by-step approach,Ericsson provides a consultative front-end atthe beginning of each customer project toassess the operator's current business andtechnical environments. Typically, consultantswill analyze the operator's legacy environment,identifying <strong>com</strong>ponents thatcan be retained and reused in the service networksolution. This assessment provides aninventory of what the operator has in termsof legacy systems, and what can be reused inrelation to functions, systems, products andsoftware.The consultancy stage first focuses onbusiness requirements. From these it devisesa <strong>com</strong>plete technical solution. The consultantslook at the operator's entire businessmodel and business chain and the implicationsthat these might have on thechoice of technology and implementation.Eticsson can draw on a broad portfoliofrom its services business, which is designedto understand the operator's businessprocesses and systems (Figure 3). This portfolioincludes advisory services, such as businessopportunity analysis, strategic planning,and cost analysis, whereby the operatorobtains an overall picture of the opportunitiesand risks involved. Other servicesare designed to look at the operator's marketingoperations, including sales strategyand revenue forecasting.A holistic view of the operator environmentis essential, since every aspect of thebusiness must be considered openly. Definingthe service network from every anglemeans viewing it as a business-critical system.This perspective also enables solutiondesigners to create and deploy new servicesquickly, safely, and in a controlled and sttuctutedway.Ericsson's consultants also have a key rolein advising an operatot on which services itshould launch. This advice is based on analysisof the operator's target market segmentsand on what end-users are willing to pay for.Any services that the opetatot requests havea direct impact on how the solution is to bedesigned and how much the opetator cancharge.To support this role, Ericsson carries outcontinuous market research through itsworld-class Enterprise and ConsumerLab,which looks into what services and functionalityconsumers want in their handsets,how much they are willing to pay, and soon.Service networkframeworkEricsson's systems integration experts usethe service network framework (SNF) for designingsolutions.' This reference architectureis a product-neutral framework that is<strong>com</strong>posed of reusable designs and based onopen standards and protocols through whichcustomer requirements can be met in the solutiondesign. The SNF covers a set of architecturalpolicies and views that definehow the framework should be applied, andprovides insights into diffetent aspects ofthe architecture and supporting rules. It isEricsson Review No. 1, 2003
also a tool for helping realize the operator'sservice network, by demonstrating how thearchitectural design should be implemented.It takes into account• the technology derived from existingstandards organizations and groups, suchas the IETF, 3GPP, OMA and W3C; and• the operator's existing functions andproducts in the network.Systems integration consultants have a keyrole in applying the service network framework.Moreover, since the SNF is independentof products and operating systems, itfacilitates the process of problem-solving.Solution design specifies how all the <strong>com</strong>ponentsand products are to be integratedand, by detailing the architecture and variousinterfaces, how this is to be carried out.Given today's multi-vendor environments,the case for an open architecture isclear. Moreover, due to the convergence ofthe tele<strong>com</strong>munications and Internet industries,there is an area of overlap where themindset and business rules of each industryneed to be considered when making technicalchoices. The architecture of the SNF canhelp <strong>com</strong>panies with a background in theInternet industry, for example, to lift outthe functionality for mobile users. This isnot as easy as it sounds, since the requirementsput on protocols in the wireless worldare totally different from those of the Internet.Therefore, new algorithms or <strong>com</strong>pressionfor certain protocols might be neededto deliver the same quality of service in amobile environment.A framework for <strong>com</strong>plete solutiondesignEricsson's architectural approach facilitatesthe development of a solution. For instance,if the operator is considering incorporatingmultimedia messaging service (MMS), thearchitectural approach would look at certain<strong>com</strong>mon functions within the network.These could be business support systems,such as provisioning, charging, billing, operationsand management. The intention isto prove to the operator that adopting an architecturalframework will yield <strong>com</strong>monprovisioning or operation and maintenance(O&M) tasks that can be used for more thanone service. This is where the operator beginsto save on costs and increase revenue bylaunching additional services using thesame functionality. When <strong>com</strong>mon functionsare available in the network, new servicescan be brought to market much morerapidly. Therefore, operators who want todevelop a service for a specific segment cando so with relative ease and without havingto go out to the market to source new functionality.These capabilities are built into the servicenetwork and supported by the guidelinesand documentation from the operator'sapplied architecture. This is the link betweendirect technical choices and the businessmodel. Subsequent marketing materialsor market launches are only indirectly affectedby what the operator has in the network.This is where an operator can reallyshorten time to revenue.The architectural approach also highlightsone of the most crucial issues facingall operators—that of launching servicesthat can be charged for from day one. Enduserswant to be able to access services simplythrough a single sign-on and withouthaving to configure each service separately.This aspect should be <strong>com</strong>pletely transparent,since research shows that as <strong>com</strong>plexityincreases there is a proportionate decreasein the willingness of end-users to pay for anduse services.A new challenge when integrating systemsis that more and more functionality residesin devices and the service network. Interms of end-to-end integration, certain servicesrequire handsets with specific clientsfor specific needs—for instance Javaenabledhandsets. In other words, certainevents have to be handled and certain sessionshave to be managed. In the operator'sservice network, some <strong>com</strong>mon applicationenvironments are concerned with the launchof these services by facilitating service developmentkits (SDK) and application programinterfaces (API). These can be reusedto deliver applications with shorter time tomarket.The SDKs—when provided by the operator—givethird-party application developersa direct interface to applications and services.Via a developers zone, hosted by theoperator, developers and other interestedparties can monitor the use of a particularapplication and even add functionality beforeuploading the application to the servicenetwork.Once the solution has been <strong>com</strong>pleted, itcan be integrated. Ericsson can draw on avast pool of resources to carry out the actualintegration, while its experienced customerproject managers and solution architects,who are well versed in the architecturalframework, oversee the solution implementation.Ericsson Review No. 1, 200329