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KPI Library - Definitions, Formula & Recommendations

KPI Library - Definitions, Formula & Recommendations

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Published by Khalid Thok
KPI Library - Definitions, Formula & Recommendations
KPI Library - Definitions, Formula & Recommendations

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Published by: Khalid Thok on May 16, 2013
Copyright:Attribution Non-commercial


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The most important part of any acceptance (giving “thumbs up or down” from thecustomer) is the level of the required thresholds, can they be reached and howmuch effort is needed to reach them. Each of these “tricky” thresholds (KPI) canincrease financial risk significantly. That’s why we have to approach the KPIissue with extreme caution and always bear in mind potential financialimplications.If the number of KPIs, or the scope of measurement (method, area, successcriteria) is large, the collection and post processing of data, can be time andresource consuming. On the other hand, KPI targets are sometimes so high thatthey are almost impossible to achieve. Furthermore, if the acceptance andexclusion criteria are not well defined, a lot of effort will need to be put into thetuning and optimization activities in order to bring the network to an acceptablecondition.This document lists the set of KPIs that should be measured, the way that theyshould be measured and the commercial impact of this. If the customer is askingfor an alternative KPI, the arguments against the alternative and potential riskanalysis will also be found in this document.Special attention has been paid to the calculation of the number of samplesneeded to reach certain KPI levels. The number of samples directly affects themeasurement time and the number of resources involved, hence it also affectsthe cost of the acceptance procedure.These variables will dictate the types of services that are necessary to perform,and the amount of time and effort needed to collect the data necessary toachieve the targets.
2How to use the KPI Library
The document can be used during the entire sales process. Before the actualcontract negotiation, the document is valuable for understanding the EricssonKPI and acceptance approach. During this phase, it is possible to influence thecustomer to adopt the Ericsson way of thinking.When the customer’s acceptance proposal is on the table, the document can beused as a cook-book in order to assess the differences between themethodologies and to assess the risks. If the risks are too big to accept, thedocument offers argumentation why another set of KPIs, or measurement areas,or exclusion criteria should be used.
It is of utmost importance to understand that KPI values (targets) and questionslike “can we achieve 99%” should not be considered as simple “yes or no” type of technical question.Pure values (targets) are just one of the variables in Ericsson’s strategy andapproach in how to handle KPIs in a structured way.
The KPI Library contains very sensitive internal information and none of itscontents should be open to customers.
3KPI Library Content
KPIs in the library are divided according to the Ericsson KPI handling strategymapped on ITU-T and ETSI specifications:Contractual KPIs are classified into:
Recommended (QoS – most used services)
Optional (QoS - most used services)
Not Recommended (Network Performance PIs, other QoS services)In this document main focus will be detailed description of Recommended andOptional KPIs.
Availablity Performance
Quality of ServiceQuality of Service(QoS)(QoS)
QoSQoSNetwork PerformanceNetwork Performance
Resources& Facilities
Features& FunctionalitiesPerformanceMonitoring(Nodes, System)O&M(Node, systemAvailability)SLAs
Interfaces,Transmissionand Transport

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