Major telecom operator in Indonesia

One of Indonesia’s largest telecommunications providers, wanted to get better insight into how different parts of the organization contributed to their bottom line. What if they could see their EBITDA not only for the entire company, but could break it down by product (post-paid, pre-paid), technical product (voice, sms, data), customer segment, region, area and even see it per network elemtent (MSC, BTS, etc.)?

The biggest challenge to achieve this was the allocation of indirect cost. Hermis used SAP’s Activity Based Costing module to allocate all opex and capex costs using activities to either support, networking or customer processes. From these main processes another allocation was done to reflect the various views needed. Finally SAP Business Intelligence was used to display the end results.

Now not only does top management have a dashboard through which they can track monthly profitability, active subscribers, blended RPM an other Key Performance Indicators, the same system is also rolled to the regions where each division can track it’s own profitability and analyze questions like: Do my local customers make more on-net or off-net calls to other providers? Or is more money made from SMS or data on in-roaming customers? Questions that before were near impossible to answer can now be accurately retrieved from the SAP Business Intelligence system.