Sending the Right OSS Message (cont'd)

Fact #2: OSS software functionality is boring (to most people)
For most executives, most of time, discussions of how to generate revenue are much more interesting than discussions of how to cut costs. Even when cost reduction is a priority, it is generally equated with head count reduction. In some cases, this can be persuasive argument for OSS at the executive level.

The concept of purchasing new systems to cut costs is not unknown, but it is a difficult idea to warm up to. Most service provider executives do not understand the details of OSS systems and do not really want to know. Technical details of how they work, and what they do are tedious and boring. For these systems to become interesting to an executive, one must talk about them in terms they use in discussing the rest of the business - financial terms.

To illustrate: A typical network executive's morning conversation with his boss (the CEO or COO) focuses on things like how to increase revenues with new products and services, network expansion, improvements in service that will reduce churn, and how to cut costs. This is the bread and butter of most the conversations at the executive level.

If OSS systems are mentioned at all, they are in one of two contexts – either systems that must be purchased to support a new product or service - part of the capital cost of those new services - or, as an expenditure that will result in a greater cost savings somewhere in the existing infrastructure. For all those OSS vendors that want to be promoted within the service provider, it is critical to be tied to the support of new revenue generating products or services, or have a compelling case for cost savings in those areas .

It is easier to make a case for new or upgraded OSS when it ' s necessary to support a new, revenue generating product or service. The incremental value of the overall effort is tied to revenue, and executives can understand it. These projects typically have fully developed business cases that include the OSS system cost as a minor component of the overall project cost. This is how many systems are justified in the first place. In the vast technical array of widgets and gizmos needed for new equipment, OSS expenditures are often barely noticed, or in many cases bundled into the overall system procurement package. That makes the overall business case, which includes a new revenue component, makes sense to an executive.

The case for improving or replacing an existing system is much more difficult to make. The technical differences between one OSS versus another OSS are generally lost on non-technical executives. Although the case can still be made, the best way to do it is to make a serious case for cost containment or cost reduction.

Fact #3: You Need to Build a Case for Cost Reduction
This is the more difficult business case to prepare, primarily due to the fact that there is no additional revenue involved and that the costs involved may not be tracked accurately. Some service providers are going to a manufacturing model to track costs and return on investment, but not the majority. The problem is further compounded because most of the time the only costs tied directly to OSS systems involve people, which means the only way to make a case for cost reduction is to reduce head count. This can be a good argument with executives, but can be a hard to sell to the managers and engineers that will be affected most by a reduction.

Increases in productivity are usually cited instead, but these are the most difficult benefits to quantify. It begins with understanding the full scope of a product and service provider environment. Once achieved, implementing metrics to measure the organizational impact prior to implementation is paramount. Post-implementation data can be compared to pre-implementation data as an ROI tool. More importantly for the OSS provider, it can build a more compelling business case and sales model.

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