1. Monitoring and control
Sam H. Parker
Director
Management Systems Center
AT&T Laboratories

2. Monitoring and Control at AT&T
What is the Management Systems Center?
Our focus
Our history
Our place in AT&T’s research community
The composition of our center
The future

3. Basics and Infrastructure
Monitoring is evolving to be an essential management process must
Auditing and strategic monitoring are evolving fields
Critical processes are being monitored
Transactions in e-brokers
Transfers to foreign countries
Package tracking

4. Our Expertise CPAS Experience in 1986-1990
Continuous Audit
Model for AICPA committees
FOS (Access Financial Assurance)
MOSS (Consumer Bill Accuracy)
GECKO (Consumer LD Transactions)
LEARN (Consumer Local Provisioning)
INSYNC (Consumer PIC & Revenue)
Dashboards and Scorecards

5. CPAS OVERVIEW System Workstation Operational Operational Report Report
System Operational Reports
Workstation
DF-level 2
Operational
Report
Operational
Report
Operational
Report
DF-level 1
DF-level 1
DF-level 1
Filter
Alarm
DF-level 0
Data Flow Diagrams
Database
Reports
Analytics
Metrics

6. Billing System - Customer Billing Module
FlowFront - Interactive Flow Diagram Viewer - AT&T Bell Laboratories - Murray Hill, NJ
fer
Date:
04/01/89
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FlowFront Hierarchy
Billing System - Customer Billing Module
Trans
Customer
Database
Billing
Bill Upda
AmtDue
Extract
Customer
Accounts
Calculate
Amount
Due
Update Billing Info
1000
1000
Pay
Print Bill
Overview
Journal Files
Format Bill
998
988
Inquiry
Accounts
Missing: 10 2
Journal Files
Table
Process Errors
Errors

7. Sales lead Process Monitoring for SMART
Dallas Sales Center:
--chart type A
--chart type B
--chart type C
RSM 1:
--chart type A
--chart type B
--chart type C
Agent production:
-- Active user: xx
--chart type A
Incoming
toll free lead
-- chart type A
Number
type 1
Number
type 1
Number
type 1
RSM 2:
--chart type A
--chart type B
--chart type C
Agent production:
-- Active user: xx
--chart type A
Incoming
toll free lead
-- chart type A
Number type 1
Number
type 1
Number
type 1
Convergys:
--chart type A
--chart type B
--chart type C
Number
type 1
Incoming
Web site leads
-- chart type A
Number
type 1 . .
Number type 1
Tucker Sales Center:
--chart type A
--chart type B
--chart type C
RSM n:
--chart type A
--chart type B
--chart type C
Agent production:
-- Active user: xx
--chart type A
Incoming
toll free lead
-- chart type A
Number
type 1
Number
type 1
Number
type 1
Marketing Operation
Sales Center Operation
Alliance Agent Operation
-Number type 1 is the cumulative number of leads for current day
Chart type A: bar chart showing the hourly incoming leads for current day
Chart type B: line graph showing the total cumulative leads (x-axis is hours)
Chart type C: bar chart showing lead status distribution

8. Monitoring and Control Structures

9. Monitoring and control layer
reports
Applications
Feeds for applications
reports
Periodic reports
alarms
Ad hoc Analytic reports
reports
Monitoring and control layer
intranets
Corporate
Legacy
Systems
and ERPSs
Web facing
Systems from other
entities
extranets
Internet

10. A la MIMS
A la CPAS
A la GECKO

11. Monitoring Is one of the key processes of management
Is changing substantially with online technology
Audit is an instantiation of the monitoring process
We have many tracking and monitoring projects – assurance is a specific type

12. What is Needed?
A flexible platform for observing business activities and providing automated alerting of adverse conditions

13. Business Model (1)
Auditor partners with Monitoring and Control provider and service is part of audit fee- Auditor pays MC provider
Variation 1
MC provider is commissioned to provision un-responded alarms to a third party

14. Business Model (cont.)
2. MC provider is directly linked to auditee. Audit Committee pays MC provider
-Variation 1
A data stream is directed to regulatory authority
- Variation 2
A data exception stream is directed to peer review partner
-Variation 3
Data exception streams are directed to bank and insurers for direct payment (Must clear SEC rules)
3. MC provider also provides
Monitoring for the regulatory process
Monitoring and control of the audit process

15. Peer review process MC Provider Regulators Auditor Principals Company
Secondary assurance
Regulators
Auditor
Principals
Company
Payment
MC layer
MC provider ids directly linked to audit. Audit company pays MC provider.
-Variation 1
A data stream is directly to regulatory authority
-Variation 2
A data exception stream is directed to peer review partner
-Variation 3
Data exception are directed to and insurers for direct payment
(must clear SEC agreement)
Stakeholders entity
-Pension Fund
-Employees(Union)
-LT Charts
-LT Suppliers
-Bank
-Insurance Cos.

16. Markets
The worldwide assurance market is about 40 billion with many peripheral services
Current audit services do not satisfy these needs
There will be some replacement and some market expansion
In the systems area other players like EDS and IBM are emerging

17. Conclusions The monitoring area is an emerging opportunity
Many opportunities exist across business areas such as marketing, production and finance
Assurance is a specific instantiation of system monitoring
New systems architectures, concepts, and approaches are needed
Extensive research is needed