Iview_Business_Case

BUSINESS CASE Document Control |Project: |IView | |Sponsor: |GloCo | |Project Manager: |N Toefy | |Title: |Remote Mobile Surveillance | |Doc. Reference: |BUSCAS – RMS - 0002 | |Created by: |Z Amerika | |Creation Date: |30 August 2008 | Document History |Version |Date |Status |Amended by |Saved as: |Summary of Changes | |1.0 |30 August 20008 |Approved |n/a |FTI BusCas IView |n/a | | | | | | | | Distribution list |Name |Position |Department |Signed |Comments | |A Collins |Executive Head of |New Products and | | | | |Division |Services | | | |D Smith |Manager |Contract Billing | | | | | |Services | | | |F Matthews |Manager |Reporting Systems | | | |J Larry |Manager |Business Partner | | | | | |Liason | | | Management approval |Name |Position |Representing |Signed |Date | |A Collins |Executive Head of |New Products and | | | | |Division |Services | | | |F Bapo |Executive Head of |Wholesale Billing | | | | |Division | | | | |O Jacobs |Executive Head of |Finance | | | | |Division | | | | |T Morgan |Managing Executive|Billing Administration | | | Contents 1. Background 2 1.1 Business Drivers 3 1.2 Business Problems, Opportunities and Needs 4 2. Goal and Objectives 7 2.1 Goal (s) 7 2.2 Objectives 7 3. Scope 8 3.1 Terms of reference 8 3.2 Stakeholders 9 3.3 Business Area Scope 10 3.4 Project Scope 11 3.5 Solution Scope 12 4. Preliminary requirements definition 16 4.1 Functional Requirements 16 4.2 Informational requirements 16 4.3 Non Functional requirements 16 5. Outline of Solution 17 5.1 Data Flow Solution 17 5.2 Entry - Level Product Description (IVIEW) 18 5.3 Proposed Commercial Offering (IVIEW) 19 6. Expected Benefits 20 6.1 Benefits and beneficiaries 20 7. Budget and resourcing 21 7.1 Financial Costs breakdown 21 8. Take Up and Revenue Projects 23 8.1 Analysis 24 9. Impact Assessment and risk profile 25 9.1 Risk Profile 25 9.2 Risk Containment plan 25 10. Feasibility Assessment 26 10.1 Cost justification 26 10.2 Other Feasibility issues 26 10.3 Recommendation 26 11. Product Quality assurance 27 12. Implementation Plan 28 13. Appendix 29 13.1 Appendix A 29 13.2 Appendix B 30 Management Summary This Business Case serves to put forward the proposal to implement a Remote Mobile Surveillance product. This product will allow subscribers to purchase a camera and access images from the camera from a cellular device using our data services. The product will be offered in conjunction with a third party service provider, RSS, who shall be responsible for supply, management and technical support on the camera devices. This Product is aimed at increasing usage on the GloCo Data Network, as this product requires that subscribers stream/download video content from the camera to the handset. The solution is specific to the Contract revenue stream only; further enhancements will look at prepaid revenue streams. Cost Benefits:- Revenue over 5 year Period: R 63 656 000.00 Project Cost: R 44 569 645.00 Financial Benefit: R 19 086 355.00 Return on investment (ROI): 15.43% Payback period: 4 Years Detailed Calculations, as furnished by the Finance Director for the above, are contained in this document. Background GloCo, South Africa’s leading Cellular Network envisage offering a Remote Mobile Surveillance product based on the findings from primary research that was conducted to determine the need for such a product in the local market. The Remote Mobile Surveillance product is a wireless camera solution that transmits live video streaming to the mobile phone, anywhere, anytime, using GPRS/3G as its communication platform. The device camera can be positioned in any enclosed environment and will transmit the footage of events detected, triggered when the field of view has been breached using infrared and video motion detection, thereby offering unprecedented security and management control for both domestic and commercial use. The product will be offered in conjunction with a third party service provider, RSS, who shall be responsible for supply, management and technical support on the camera devices. A number of solutions have been evaluated to determine the appropriate offering. It is proposed to start off that one solution be offered, an entry level single camera product (IVIEW). 1 Business Drivers The business drivers for this project are: • To be competitive in the telecommunications industry • To retain and increase current Contract market share • To increase data usage on our network • To be seen as a service provider that cares • To enter into the Remote Mobile Surveillance Market 2 Business Problems, Opportunities and Needs 1 Business Problems Insufficient use of our Data Network GloCo is currently making huge investments in setting up 3rd Generation Telecommunication Networks but the consumer market has made no movement towards entering this new era of High Speed Data telecommunication. Subscribers Churn Since the introduction of MNP (Mobile Network Portability) more customers have been leaving our network than joining, recent surveys have determined that the products offered by GloCo products are no longer attractive to the market. Slowing growth in Voice Market GloCo South Africa’s voice market is slowly starting to reach saturation. Between March and June last year, GloCo South Africa's customers, who spent an average of R120 a month, grew by 5 percent to 24.6 million. In the three months to June this year the firm connected only another 0.2 percent of new users. That pushed monthly average revenue per user to R130 from R128 in the three months to March. 2 Business Opportunities Higher profit margins due to better utilization of our Data Network Grow subscriber base Compete with other network operators Exposure to new market Better Return on Investments made on Network infrastructure 3 Business Needs To provide subscribers with products that appeal to them To provide products that encourages the use of the Data Network. To explore new market sectors To provide products that enable GloCo to compete with other network operators Goal and Objectives 1 Goal (s) The goal of this project is to introduce a new product that offers subscribers the ability to remotely record and stream video footage to their mobile handset. 2 Objectives The following objectives need to be met for this product to be successful: • Increase Data Network utilization by a minimum of 3% in the next year • To increase Contract Market share by at lease 1% in the next 3-4 years • To launch the IVIEW product within the following guidelines: o Minimum Payback period = 4 Years o Minimum Return on Investment = 10% Scope 1 Terms of reference The following product delivery criteria have been set out by management: • The product will be offered in conjunction with a third party service provider, RSS, who shall be responsible for supply, management and technical support on the camera devices. • GloCo will finance the budget for the development of this solution. A detailed forecast of the budget will be covered later in this document. • Commercial launch is planned for 15th February 2009. 2 Stakeholders |Stakeholder |Representative |Interest | |RSS Third Party |J Steyn |Supplier of product | |Business Partner |F Hermanus | | | |S Biko |Requires priority response time and at least 98% uptime to ensure customer | | | |satisfaction and revenue earned | | | |Supply, manage and support camera devices | |GloMobi |T Moleni |Channel Supplier of product | | | | | | | |Must have required functionality to sell IVIEW | | | |Requires priority response times and at least 98% uptime to ensure customer | | | |satisfaction and revenue earned | |Billing Systems |F Morgan |Billing Integration | |Group | | | | | |Configuration and development | | | |Provisioning and administration | | | |Billing and administration | | | |End to end testing | | | |Reporting | |Head Network |A Bapoo |Network Facilitation | |Management Group | | | | | |Release control | | | |Testing of network | |Head Branding & |D Field |Branding and Advertising | |Advertising | | | | | |Develop the artwork for the new voucher | | | |Advertising streams for the new voucher | |Head Sales |J Connacher |Trade Partner Liaison | | | | | | | |Supplies product coding and price | |Head Finance |M De Bruin |Accounting and Reporting | | | | | | | |Accounting for revenue streams | | Head Risk |J Zuma |Risk Assessor | |Management | | | | | |Risks of implementing this product | |Product Manager |M Van Vuuren |Formulator of new products and services | | | | | | | |Approved Product Description document | |Service Provider |R Patel |Channel Partner | | | | | | | |Provide subscriber with billing support and accurate billing information | |Business Partner |H Mitchley |Provider of Channel Partner implementation supporter | |Liason | | | | | |Define requirements for Service Provider support | |Managing Director |P Uys |Primary Stakeholder | | | | | | | |Shareholder wealth creation | |Head Logistics |P Manoj |Voucher Production | | | | | | | |Sim production for camera units | |Regulatory |M Van Der Westhuizen |Regulatory Affairs | | | | | | | |Tariffs to be lodged with ICASA | | | |Disclaimer info | |Subscriber |Joe Soap |User of product | 3 Business Area Scope The following business areas will be investigated: |Business Area |Department |System |Ambit of Investigation | |Billing and Administration |Billing Delivery |SPAD |Provisioning and administration | | | | |of subscriber profile | | | |Genesys |How the subscriber will be billed| | | | |for this product | | | |Business Reporting Systems |What business reports will be | | | | |required | | |Billing Services |Quality Assurance |How the service functionality and| | | | |billing integrity will be tested | | | |Business Partner Liaison |RSS support and technical | | | | |requirements | |Commercial Support |Customer Care |Customer Support System | | The following Business areas fall out-of-scope for this project: • Development and configuration of All Third Party Business Partners, i.e. GloMobi and RSS • Prepaid Billing Systems • Third party customer call centres 4 Project Scope 1 The Scope of Work (Project Scope) includes: • Initial interviews with key stakeholders to: o Better understand business drivers, goals and objectives for offering this product o Determine business areas that may be impacted o Determine as many stakeholders as possible o Identify sources of information • Document an information gathering plan for the business case • Interview each potentially impacted area to level of impact and processes • Workshop with all stakeholders to: o Identify requirements, recommendations and concerns o Identify proposed solution to implement product • Initiate review session with stakeholders to review findings • Document findings in a business case • Obtain management acceptance and expectations from presentation findings • Obtain management approval • Communicate management approval and relevant expectations to stakeholders • Document implementation plan and request User Requirement and Business Requirement Specifications documents for the pre-defined stakeholders in accordance with the approved solution • Functional Specification follows 2 The Scope of Work (Project Scope) excludes: • Implementation of recommendations • Training of Third party Customer Call centres 5 Solution Scope There are three parts of the solution that will be shown: • System and interface that contract customers will use to purchase and activate IVIEW • The data flow between the customer and IVIEW device • How contract customers will be billed and supported in relation to the product 1 Purchase and activation Process for IVIEW [pic] The context diagram shows a simplified process for purchase and activation of IVIEW, please refer to Appendix A for a more detailed process. The following points will put the context diagram into perspective: In-Scope • Give customer the facility to purchase IVIEW • Realtime customer profile information query and response • Supply customer with IVIEW unit • Provision Customer with IVIEW • Send RSS IVIEW activation message Out-of-Scope • Customer payment method • RSS interface between there own system and GloMobi • Reports required by RSS • Point of contact between RSS and customer • RSS activation and support • Procurement process between RSS and VSP. 3 Data Flow between Client and IVIEW device [pic] In-Scope • The connection between the customer and the RSS server • The connection between the RSS server and the IVIEW camera • Data flows bi-directional Out-of-Scope • The mobile video streaming platform • The content on the consumer device • The content on the provider’s device • The setup of the customer’s phone for viewing of the data • The setup of the IVIEW unit itself within the customer’s home • Notification from RSS to customer 4 Contract Data Billing Stream flow [pic] The above diagram shows the billing system for contract data calls, refer to Appendix B for a more detailed process. In-Scope The solution will provide: • Customer Profile updates • Accurate billing in accordance with the billing rules of product • Keeping SPAD the central database for customer network profile information • Customer billing enquiries support • Accurate month-end bill run Out-of-Scope • Revenue share model between GloCo and GloMobi • Revenue share model between GloCo and RSS Preliminary requirements definition 1 Functional Requirements FR1 Purchase IVIEW subscription 1. Receive customer subscription request 2. Query customer profile 3. Feedback provided to customer 4. Purchase of IVIEW subscription 5. Customer profile updated 6. RSS notification sent for new activation 7. RSS notification sent for deactivation of service FR2 Customer accesses IVIEW device 1. Customer accesses RSS server 2. RSS server accesses IVIEW device 3. IVIEW device provides feedback to RSS server 4. RSS sends feedback data to customer FR3 Billing of data calls 1. Update customer billing profile from SPAD to Genesys 2. Manage customer usage against IVIEW bundle 3. Pass billing tickets to the support systems FR4 Run Month End Bills 1. Receive call ticket files 2. Process call ticket files 3. Run month-end customer bills FR5 Customer Billing Queries 1. Receive customer billing queries 2. Provide feedback to customer queries 2 Informational requirements The following informational requirements must be generated from the system: IR1 Distribution of month end bills IR2 Total number of customers per month IR3 Total revenue associated with the IVIEW device IR4 Total number of new activations per month IR5 Total number of terminations per month IR6 Total volume of data used per customer per month 3 Non Functional requirements The following are the non-functional requirements of the project: NFR1 The response time between the customer’s device and the RSS server NFR2 The response time between the RSS server and the IVIEW device NFR3 Disaster Recovery of the RSS Server NFR4 Reliability of the RSS Server, i.e. the system availability should be at 98% NFR5 Legislation that requires conformance NFR6 Technology that must be used on Interfaces Outline of Solution 1 Data Flow Solution The below diagrams illustrate the conceptual IVIEW solution. 1 Purchase and activation Process for IVIEW [pic] 2 Data Flow between Client and IVIEW device [pic] 3 Contract Data Billing Stream flow [pic] Appendix C shows the complete data flow diagram 2 Entry - Level Product Description (IVIEW) Appendix D shows detailed User Guide. Technical Specifications [pic] 3 Proposed Commercial Offering (IVIEW) The product will initially only be available on a 24 Month contract basis. |Monthly Subscription – VAT Inclusive |Once-Off | |20 MB Free Data usage | |Out of bundle tariff |2.00/MB | | |Connection Fee & SIM Card | |R202.00 | |Once- off fee | |R499.00 | |IVIEW Tariff Plan |R109.00 | | |Mandatory VAS |R35.00 | | |IVIEW Business Rules – 24 Month Contract | |1. |The product will only be available on a 24 Month contract basis | |2. |The product will initially only be available through VSP | |3. |Customer shall activate the proposed 24 Month IVIEW contract tariff plan associated with the pre-installed SIM card in | | |the IVIEW camera | |4. |The proposed contract shall include a minimum of 20MB free data usage, should the included 20MB be depleted, applicable| | |out-of-bundle tariff will apply. The customer will not be allowed to purchase any of the available data bundles | |5. |Customer shall be responsible for the data usage on the SIM card in the device that is used to access the IVIEW camera.| | |Data usage will be billed according to the Customer’s existing tariff plan. | |6. |The proposed contract shall include a mandatory IVIEW VAS of R35 per month payable to RSS for management and support | | |IVIEW VAS can be deactivated upon the customer’s request in which case RSS will no longer receive the R35 monthly | | |management fee | | |RSS must be informed of the termination of IVIEW VAS | | |RSS will deactivate the service and the customer will no longer be able to use the product | |7. |No Porting to another network is allowed | |8. |No porting to another SP is allowed | |9. |No migration to or from the IVIEW Package is allowed | Expected Benefits 1 Benefits and beneficiaries The table below shows the calculated and projected benefits from offering this new product | |Benefit |Beneficiary |Metric | |1 |Reduced subscriber churn |Business, customer |Renewal of contracts | |2 |Competitive tariff offering |Customer |Customer satisfaction index | |3 |Increase revenue |Business |Sales revenue | |4 |Improved ARPU (average revenue per user) |Business |ARPU calculations | |5 |Increased Market Share |Business |Market Analysis | |6 |Data Network Capacity utilization |Network |Measure Switch idle times | |7 |Increased revenue streams |Business, Customers, related stakeholders |Revenue stream analysis | Budget and resourcing 1 Financial Costs breakdown Source of the below calculations is the head of finance |  |  |  | Intial | | | | |Hours |Unit Cost | Total Cost | | | |Project Sponsor |  |  |  | | | |Project Manager |100 |600 | R 60 000.00 | | | |Project Controller |  |  |  | | | |  |  |  |  | | | |SPAD system Dev Hse |50 |7000 | R 350 000.00 | | | |  |  |  |  | | | |Billing System Dev Hse |60 |5000 | R 300 000.00 | | | |  |  |  |  | | | |Reporting |20 |2000 | R 40 000.00 | | | |Customer Care |  |  |  | | | |Finance |  |  |  | | | |  |  |  |  | | | |Third Party Costs |  |  | R 5 000 000.00 | | | |  |  |  |  | | | |Testing Team |10 |4000 | R 40 000.00 | | | |Marketing |  |  | R 500 000.00 | | | |Other |  |  |  | | | |Hardware |  |  |  | | | |Facilities |  |  |  | | | |  |  |  |  | | | |Consumables |  |  | R 20 000.00 | | | | | | | R 6 310 000.00 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |  |Operational | | |Y1 |Y2 |Y3 |Y4 |Y5 | |Project Sponsor |  |  |  |  |  | |Project Manager |  | |  | |  | |Project Controller |  | |  | |  | |  |  | |  | |  | |SPAD system Dev Hse | R 700 000.00 | R 700 000.00 | R 700 000.00 | R 700 000.00 | R 700 000.00 | |  |  | |  | |  | |Billing System Dev Hse | R 500 000.00 | R 500 000.00 | R 500 000.00 | R 500 000.00 | R 500 000.00 | |  |  | |  | |  | |Reporting | R 20 000.00 | R 20 000.00 | R 20 000.00 | R 20 000.00 | R 20 000.00 | |Customer Care |  | |  | |  | |Finance |  | |  | |  | |  |  | |  | |  | |Third Party Costs | R 750 000.00 | R 750 000.00 | R 750 000.00 | R 750 000.00 | R 750 000.00 | |  |  | |  | |  | |Testing Team |  | |  | |  | |Marketing | R 30 000.00 | R 30 000.00 | R 30 000.00 | R 30 000.00 | R 30 000.00 | |Other |  | |  | |  | |Hardware |  | |  | |  | |Facilities |  | |  | |  | |  |  | |  | |  | |Consumables |  |  |  |  |  | | | R 2 000 000.00 | R 2 000 000.00 | R 2 000 000.00 | R 2 000 000.00 | R 2 000 000.00 | Note: The on going costs for the development houses and third party are for support and maintenance. Take Up and Revenue Projects The following projects are possible through a recent survey to customers that looked at there interest in this product. It is pure assumption |  |Year 0 |Year 1 |Year 2 |Year 3 | |1 |Project will be delivered after proposed implementation date |4 |3 |12 | |2 |Third Party Service Provider unable to provide adequate service |3 |4 |12 | |3 |Scope creep |6 |5 |30 | |4 |Stakeholder resistance to proposed solution |2 |4 |8 | |5 |Technical Issues |2 |4 |8 | 1 Risk Containment plan • Project will be delayed o A dedicated project manager will be appointed o Status meetings will be held weekly as well as monthly with stakeholders • Third Party Service Provider unable to provide adequate service o The project plan should make allowances to in order to accomadate any and all inadequate services provided. • Scope Creep o Users and stakeholders must sign off on all business and functional requirements • Stakeholder resistance to proposed solution o Benefits must be constantly communicated to all stakeholders o The project should be “marketed” to all stakeholders. o Stakeholders should be educated via the “marketing” strategy. • Technical Issues o Technical staff should be retained and included in all project meetings to ensure that they can provide feedback as and when needed to pre-empt problems. Feasibility Assessment 1 Cost justification As indicated in section 8 of this document, we should start benefitting from this product with in 4 years from launch. It is also within the requirement boundaries set out by our Finance director. 2 Other Feasibility issues This product addresses market demands at the time of a market research, success of meeting demands is dependant on launching before demand changes. 3 Recommendation The implementation of this product is strongly recommended based on the following considerations: 10.3.1 The product addresses a market demand 10.3.2 The product will increase data network utilization 10.3.3 ARPU for the contract revenue stream will be increase Product Quality assurance The following quality assurance steps will be taken to ensure the final product meets quality standards and requirements Quality built into process • Detailed documentation of end-to-end product and solution • Quality analysis and evaluation will be conducted and the outcomes monitored • Auditing of documentation to be done • Validation of requirements Testing • The following will be built into the test plan o Usability o Functionality o Stress testing o Factory Acceptance Testing o User Acceptance Testing Additional quality consideration • IVIEW functionality must be simplistic to user i.e. the user must be able to navigate through the functionality with just overview training Implementation Plan The following explains the roll-out strategy envisaged for the project: • Develop solution in accordance with the functional and business requirements • Manage the relationship with RSS • Prepare the various systems for roll-out • Development and configuration of impacted systems • Dry Test Run of solution • Launch a pilot project The expected start date for this project is 01 October 2008. The project is estimated to take 3 months. The pilot project will be launched mid-January 2009. Appendix 1 Appendix A [pic] 2 Appendix B Full Solution [pic]