NFV/IT Transformation

Business process re-engineering and new revenue streams at NTT East

At TM Forum Live! (in Nice in May), Emi Yoshino, Chief, Network Development Group, Strategic Network Management Department, NTT East, will deliver a case study presentation titled ‘Business process re-engineering at NTT East using TM Forum assets. She provides an introduction here.

NTT Group is one of the biggest corporations in the world, consisting of companies supplying a wide range of communications technologies. We manage global networks, supply high-quality services and employ expert support staff.

Our consolidated operating income in 2016 reached ¥1,348 billion (approx. $12 billion) and we own more than 240 data centers. NTT East is a member of NTT Group, providing regional telecommunication services in the east areas of Japan. Our optical Internet service, FLET’S HIKARI, has over 10 million subscribers and a penetration rate of 83 percent.

Our success is due to the high performance of each group company and our efforts to adapt to a changing business environment. We have been working on drastically reforming our business structure.

In 2004, the keyword for the medium-term management strategy was “broadband”, in 2008 it was “global”, and in 2012 “cloud”.

Even though the income from voice communication services fell from 70 percent of all sales to below 20 percent, we achieved business growth by generating new revenue streams.

From service provider to value partner

Our updated strategy is expanding the B2B2X business. We have supplied services to customers directly so far. Now, we are changing the business to not only supplying services, but also creating new value through collaboration with consumers, other companies and government.  We will transform from “service provider” to “value partner” to continue growing.

One of the most important requirements to continue to be a value partner is having the capacity to adapt to the rapidly changing business environment and the needs of our customers. Our operations and systems have improved in every service and business unit. We decided to integrate our systems and create a centralized source of information to optimize overall and raise our corporate value.

At TM Forum Live! 2017, we will share the success of our transformation project and what we have achieved.

How we got there

NTT East has been continuing to make efforts to flexibly respond to users’ requests and the rapidly changing business environment. Also, because of mandatory retirement, we face the challenge of losing staff with the expertise to maintain legacy equipment and their operational systems. So, we need radical reform: business process re-engineering.

We undertook the business process re-engineering project for overall optimization by reforming the systems within each working unit. The aim of this project was further automation of business processes, through the creation of a central database to manage the whole network facility. This project was divided into two steps.

First, in order to simplify process management, we reduced the network facilities, which consisted of several generations of technology equipment. Second, we reconstructed our operations and systems using TM Forum Frameworx. We will talk about the details of this, as well as some of the challenges we have overcome, in our presentation at TM Forum Live!

We believe that the integration of systems, especially databases, is one of the most important issues for the large-scale enterprise. And just like us, large-scale carriers will also face the difficulty of integrating their data and data models.

We have solved these problems by utilizing TM Forum’s Frameworx. For those of you who may face similar problems in the future, we would like to share what we have learned and connect with new value partners at the same time.

I hope to see you there.



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About The Author

Chief, Network Development Group, Strategic Networ

Emi joined the major project at NTT East to transform the core communication service system into a new platform in July 2016. This project is very important in the company’s overall business and also presents many difficulties. As project manager of system development, Emi and her team have overcome many of these challenges.

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