Did you know that 61 telcos worldwide reported a loss of up to 10% of revenue due to order fallout? Why is this happening? How else is order fallout affecting companies? This report by Vanson Bourne, an independent research firm, examines the scope and nature of the problem. Business transaction assurance-making sure orders process successfully-may seem simple but it isn't. Learn about the challenges that telecommunications experts face and why current monitoring and management systems can't do the job.
IT IMPACT ON
TELECOMMUNICATIONS
ORDER FALLOUT
A Survey of Large Global Businesses
April 2009
TABLE OF CONTENTS
Research Methodology .................................................................... 3
Executive summary & key findings - Telecommunications .................. 3
Increasing IT complexity and order volume ............................................. 3 The breadth of transaction failures ........................................................ 4 The scope of the problem - financial, customer and resource impact ............ 4 The current systems - a flawed patchwork .............................................. 5
The mounting pressure on Transaction Assurance ............................. 6
Transaction volumes ........................................................................... 6 IT complexity .................................................................................... 6 When the unstoppable force meets the immoveable object ......................... 7
The multiple points of impact of transaction failure ........................... 9
The Financial Impact .......................................................................... 9 The Customer Impact ......................................................................... 9 The Resource Impact ........................................................................ 10 System resources .......................................................................... 10 Human resources .......................................................................... 11
Current Monitoring and Management systems - a flawed patchwork . 12
Conclusions ................................................................................. 14
Progress Software April 2009 IT Impact on Telecommunications Order Fallout 2 RESEARCH METHODOLOGY
Progress Software commissioned independent specialist technology market research company Vanson Bourne to undertake the research upon which this report is based.
210 interviews were carried out in March 2009 with major companies in the USA, Europe and Asia/Pacific regions. The companies surveyed had minimum annual revenue of $200m. Almost half (46%) had annual revenue of more than $1bn.
The business sectors targeted, Telecommunications service providers and Travel & Leisure companies, were selected specifically because of the measurable impact lost, stalled or failed transactions have in the form of lost revenue, upset customers and high IT costs. Throughout this research the term "business transactions" refers to the orders both Telecommunications service providers and Travel and Leisure companies (looking at reservations specifically) accept from customers and businesses across multiple channels. In order for a phone to be provisioned or a room booked, for example, a series of transactions must take place across a distributed IT environment. And in difficult economic times, it is essential these transactions run smoothly and efficiently as they interact with various systems.
To establish how well companies are set up to manage transaction assurance, we surveyed individuals with senior roles in enterprise architecture, application delivery, development or support. Where variances in regional response or by size of business occur and are worth noting they appear in a separate information box.
As the following pages will demonstrate, the evidence is that improving Business Transaction Assurance presents a real bottom-line opportunity and is moving high up the business agenda. However, companies' current systems are not equipped with the necessary tools to manage and control such transactions.
EXECUTIVE SUMMARY & KEY FINDINGS - TELECOMMUNICATIONS
The Executive Summary details findings for 61 telecommunications companies from around the world that were surveyed as part of the overall sample of large global businesses. Results discussed in the remainder of the paper are based on the entire global sample.
Here is a summary of the key findings from the telecommunications sector.
Increasing IT complexity and order volume
As they strive to meet customer demands for innovative products and services, telcos are experiencing an i... [download for more]
