TELECOM
The Business Problem One of
the top Telecom companies whose customer base was increasing
month after month however, it did not reflect in the bottom
line of the company's books. The CFO after a few months got
worried and decided to check it out. He put his two best Black
Belts into action.
The Benefit Analysis The Black
Belts studied the past years call & revenue data. Based on past
revenues, the Black Belts calculated that the company had lost
close to $7,323, 500.
Problem Identification The
Black Belts got onto the task and started analyzing past 1 years
data. To their surprise, they found that the customer base and
number of calls made were rising month on month. However, this
did not reflect on the revenues and therefore no bottom line
increase was seen. Therefore, the problem was that the revenues
were not getting booked as per the calling made.
Root Cause Analysis Having found the problem, the Black
Belts tried to understand the reason why these calls were
not getting booked as revenues. Upon analysis, they realized
that the rate plans introduced by the company some months
ago were not getting billed properly and that is where the
revenue loss started. Then they also found out that this was
after certain switch software was upgraded.
Solution
The solution was simple. The software bug had to be corrected
so that it can accommodate changes in the rate plans.
Result The results showed
immediately in the next billing cycle as the CFO was able to
book revenues greater by 32% and profits higher by 23%.
