When a company decides to implement a new business intelligence process, the development project always has the same type of problem: “The complexity of the metrics involved”.
One of the best alternatives is to use the TeleManagement (TM) Forum Business Metrics. These metrics define the main Key Performance Indicators (KPIs) used in your specific market.
Business Metrics Scorecard
The Business Metrics Scorecard (BMS) group is responsible for the definition of Business Metrics (BM) in the TM Forum organization.
They are normally used by computerized administration suppliers and suppliers as standard business execution measurements. They incorporate newly recognized measurements that result from the multiplication of new administration that influences your Adjusted Scorecard, as required.
The BMS team was created to achieve the following key functions:
- Standardize the vocabulary and the modeling of business metrics
- Standardize the definition of specific business metrics that appear in the BMS
- Build holistic linkages between BMS metrics and other TM Forum standards
The BMS metrics are used as the basis for the TM Forum’s Business Benchmarking Studies, Metrics Conformance testing, and various Benchmarking Services, which lead to additional benefits that include:
- Access to relevant benchmarking data, such as Service offering grouped by relevant data
- Ability to develop investment business cases based on achievable targets to support improvement initiatives
- Awareness of areas of strength
- Means to analyze the interrelationship among metrics
- Access to industry trends
The benefits will be attained on the basis of raw and analyzed benchmarking data that will be available in two forms:
- Benchmarking Study Summary Reports.
- A secure current database that can be queried – the Business Benchmarking Secure Web-Portal.
TM Forum’s Business Metrics, mapped to the Business Process Framework, give an approach to gauge achievement in light of a comprehensive and adjusted scorecard.
The scorecard covers:
- Revenue and Margin, which provide a view of fiscal performance,
- Customer experience for measuring the impact of customers’ reaction to service offerings, and
- Operational efficiency, which can be improved by gaining visibility of cost and expense drivers.
More than 170 service providers from over 65 countries use TM Forum Business Metrics and Business Benchmarking performance data in order to encourage the business basic leadership process.
TM Forum provides guidance on how to get started in using and applying the BMS.
The GB935 document family describes the TM Forum output related to business metrics. The document consists of several documents, including:
- Concepts & Principles document: it provides an overview of the business metrics that have been developed in collaboration with service providers via the BMS team. This includes definitions of key terms, taxonomy, naming conventions, and structural composition of metrics according to BMS rules.
- Business Metrics Specifications Addendum:
- The GB935-A document provides lists of the definitions of the most important business metrics currently active with the BMS team. Key attributes, such as naming, codes, categories, formula, description and units, are included.
The scorecard is used by the senior management to detect the most critical issues. In addition, it forms the basis for TM Forum’s Business Benchmarking Service by providing the formal specification of the metrics reported to the Benchmarking Server. These metrics can be used in all types of industries to obtain statistical views of business performance, which is based in a series of studies made annually with the objective to collect data from the participating companies.
Using TM Forum is the best road to success. This method allows you to establish the metrics to be used since it provides the main KPIs used by the telecommunications industry. This can be a starting point to set your metrics. It is definitely the best way to both start a Business Intelligence project and measure your business at the same time.
Additional information concerning each metric and its corresponding benchmarking data is available by contacting the business benchmarking team (email@example.com), and/or subscribing to its reports and services. Read more about Intraway’s results here.