The Fundamentals Of BPM Innovation In Telecommunications

1 May 22-24, 2007

Washington Dulles HiltonThe Business Transformation Conference

Robert CainDirector of Product ManagementHandySoft Global Corporation

SessionTitle:The Fundamentals of BPM Innovation in Telecommunications

WelcomeWelcome

to Transformation and Innovation 2007 The Business Transformation Conference

2 May 22-24, 2007


Agenda• Background• Goals• Barriers & Obstacles• Key Business Innovation Strategy• Technology Innovation Strategy• Software Selection Criteria• Core Process Classification, Analysis and Prioritization• Implementation• Process Highlight: Customer Care Process• Competitive Advantage• Sustaining Innovation

3 May 22-24, 2007


Agenda Background• Goals• Barriers & Obstacles• Key Business Innovation Strategy• Technology Innovation Strategy• Software Selection Criteria• Core Process Classification, Analysis and Prioritization• Implementation• Process Highlight: Customer Care Process• Competitive Advantage• Sustaining Innovation

4 May 22-24, 2007


Background• KT Freetel Co. Ltd.

– 2,550 employees– Korea’s 2nd largest mobile

telecommunications company– Revenues > $5.6 B– Provider of voice and wireless multimedia

services• Mobile banking services• Home networking• Portable Internet• Integrated services• Telematics

• Multimedia messaging • Securities and entertainment

applications• Television services via the EV-DO

network• Video content• eMail services

5 May 22-24, 2007


Background• BPM Investment

– Started in 1999 targeting:• IT development • Operations Management

– Current Status:• Straddles 15 business units• Aligns 28 core business processes & 77

subprocess with those units

6 May 22-24, 2007


Agenda Background Goals• Barriers & Obstacles• Key Business Innovation Strategy• Technology Innovation Strategy• Software Selection Criteria• Core Process Classification, Analysis and

Prioritization• Implementation • Process Highlight: Customer Care Process• Competitive Advantage• Sustaining Innovation

7 May 22-24, 2007


Goals (50,000’)• Become industry leader

• Adapt to rapid change and growth in Telecom market

• Introduce a BPM system to provide customer oriented services through systemic, standardized and efficient practices.

8 May 22-24, 2007


Goals (500’)• Set realistic expectations of what a BPM

solution can offer– No MAGIC BULLET solution

• Standardize Core Business Processes

• Automate Applicable Processes

• Embrace a BPM and Workflow Platform– Make it visible as an enterprise asset– Promote process standardization

throughout the organization.

9 May 22-24, 2007


Agenda Background Goals Barriers & Obstacles• Key Business Innovation Strategy• Technology Innovation Strategy• Software Selection Criteria• Core Process Classification, Analysis and Prioritization• Implementation• Process Highlight: Customer Care Process• Competitive Advantage• Sustaining Innovation

10 May 22-24, 2007


Barriers & Obstacles• Overwhelming!

• Identify and organize to provide focus:– Business

– Information Systems

– Organization

11 May 22-24, 2007


Barriers & Obstacles• Business

– Knowledge Worker Stovepipe• Where ever lack of standardized work methods

exist, daily operations become dependent upon individual experience and knowledge

• Errors are waiting in the wind.

– Lack of Commitment to Continuous Process Improvement• Common process goals are not shared among

team members.

12 May 22-24, 2007


Barriers & Obstacles• Business

– Lack of Process Visibility• Most employees don’t understand what “They can

Change” if they don’t see or understand it.

– Lack of Strategic Process Change Management• Most employees wouldn’t know how to suggest a

change if they could change something.

13 May 22-24, 2007


Barriers & Obstacles• Information Systems

– Increase customer numbers while maintaining existing customers.

– Infrastructure decisions are often in-flexible• CRM and CTI technology-based call centers were built

using independent, commercially available technologies.• Eventually short term decisions become a burden

– In this case the call center system could not deal with the dynamic and rapidly changing business environment.

– Never ending Integration• Key to survival!!• Desperate need for an integrated, process-based

application.

14 May 22-24, 2007


Barriers & Obstacles• Organization

– Significant growth over very short periods of time. – Fear of the unknown

• How can you organize what you don’t know exists?• Many new processes that need to be standardized are

discovered that were unknown need to be standardized that were unknown during conception of organization’s original vision.

– Lack of Team Cooperation on Processes• Tough!• Cooperation among teams is vital to make processes

more flexible and rational.

15 May 22-24, 2007


Barriers & Obstacles• Specific to KTF

– Operations management processes were not standardized• Heavy reliance on individual institutional

knowledge and experience to conduct business.

– Constant errors in daily execution of these processes, as well as limited visibility into the status of those processes required KTF to examine BPM.

16 May 22-24, 2007


Agenda Background Goals Barriers & Obstacles Key Business Innovation Strategy• Technology Innovation Strategy• Software Selection Criteria• Core Process Classification, Analysis and

Prioritization• Implementation• Process Highlight: Customer Care Process• Competitive Advantage• Sustaining Innovation

17 May 22-24, 2007


Key Business Innovation Strategy1. Core Process Standardization and

Build-Up– Identify and share processes among team

members.

– Minimize work errors through process standardization.

– Facilitate transition of work.

18 May 22-24, 2007


Key Business Innovation Strategy2. Process Improvement through Work

Management History– Pinpoint and solve process problems through

work management history that includes monitoring and statistical indices.

– Secure business transparency through process monitoring.

– Test work performance through development of a process management index.

19 May 22-24, 2007


Agenda Background Goals Barriers & Obstacles Key Business Innovation Strategy Technology Innovation Strategy• Software Selection Criteria• Core Process Classification, Analysis and

Prioritization• Implementation• Process Highlight: Customer Care Process• Competitive Advantage• Sustaining Innovation

20 May 22-24, 2007


Technology Innovation Strategy1. Core Process Automation and

Management– Create a faster work process by setting up

a Work-Portal with current work status and To Do List.

– Maximize work efficiency by changing the system from a pull method to a push method.

21 May 22-24, 2007


Technology Innovation Strategy1. Core Process Automation and

Management (Cont.)– Prevent work delays in advance by setting

up a real-time monitoring system to check work progress.

– Shorten work hours.

– Reduce simple/redundant work.

22 May 22-24, 2007


Technology Innovation Strategy2. Process-Centered Rearrangement of

Resources– Secure agility and flexibility through a safe

transition from the existing systems into the new process-centered system including integration with and connection to a transactional system.

– Strengthen cooperation among team members through process-centered work.

– Set up an efficient management base to discern and align major IT and human resources.

23 May 22-24, 2007


Agenda Background Goals Barriers & Obstacles Key Business Innovation Strategy Technology Innovation Strategy Software Selection Criteria• Core Process Classification, Analysis and Prioritization• Implementation• Expected Improvements• Competitive Advantage• Sustaining Innovation

24 May 22-24, 2007


Software Selection CriteriaGeneral Vendor Criteria Is it a Web-based workflow system created by a vendor that is a

recognized expert in the fields of workflow and BPM? Is the platform based on global standards? Does the vendor have stable financials so as to provide continuous

technical support and upgrades? Does a vendor have a future roadmap and related products or solutions

that can expand the BPM platform? Is system maintenance and upgrade easy? Does the vendor promptly address user demands for product upgrades?

Does the platform provide for easy automation of business processes in

diverse businesses in the domestic environment? Are there any sample processes?

Is the platform made by a company with diverse work experience and know-how?

Is the product made by a company that has stringent quality management and supply standards?

25 May 22-24, 2007


Software Selection CriteriaScalability, Stability & Integration Criteria Does the vendor have a customer installation similar in size and

scale to your company?

Is scalability and stability of the platform verified, including number of users, system environment, performance, functionality, and stability?

Does the platform have a verified Application Program Interface (API) that can stably connect with other IT systems?

26 May 22-24, 2007


Software Selection CriteriaFeatures & Functions Criteria Does the platform provide functions that can satisfy various

workflow & BPM demands? Is process monitoring possible in various forms? Even if a process is ongoing, can you easily change a process

template that can change the ongoing process? Does the platform support diverse workflow management and

work distribution function? Does the platform provide various statistical management and

analysis reports? Does the platform provide a convenient and easy-to-use

development environment? Is it easy to manage organizational charts such as setting up

TFT or temporary teams and eliminating the team at anytime if necessary?

27 May 22-24, 2007


Agenda Background Goals Barriers & Obstacles Key Business Innovation Strategy Technology Innovation Strategy Software Selection Criteria Core Process Classification, Analysis and Prioritization• Implementation• Process Highlight: Customer Care Process• Competitive Advantage• Sustaining Innovation

28 May 22-24, 2007


Core Process Classification, Analysis and Prioritization

• Classify core processes according to function and business areas.– Group all corporate processes into a

hierarchy:

• Mega Process (Business Area)– Core Process (Process Chain)

» Process

29 May 22-24, 2007


• Develop a criteria for identifying and selecting core processes


30 May 22-24, 2007



31 May 22-24, 2007



32 May 22-24, 2007


• Prioritize BPM Projects based on:– Process Effectiveness

– Process accessibility

– Team discussions

– Processes that would have the most positive impact not only on the company overall but on those people actually doing the work.


33 May 22-24, 2007


1

2

3

4

Legend

First priority

Second priority

Third priority

Fourth priority


34 May 22-24, 2007


Agenda Background Goals Barriers & Obstacles Key Business Innovation Strategy Technology Innovation Strategy Software Selection Criteria Core Process Classification, Analysis and Prioritization Implementation• Expected Improvements• Competitive Advantage• Sustaining Innovation

35 May 22-24, 2007


Implementation• Split business processes and application logic

– Reduce Process Change Burden• Less accountability for application variations.

– Simplify Application Development• Improve development productivity and reduce

maintenance.

– Simplify Application Logic • Logic can be componentized for more optimal

maintenance.

36 May 22-24, 2007


Implementation• Institute a Portal

– Ease of Access to Knowledge and Information

– Customized User Interfaces

– Single Point of Access• Consolidate multiple applications required for completing

work.

– Community Collaboration• File attachment, comments, forums.

37 May 22-24, 2007


ImplementationCurrent Work

List

Work StatisticsPending Work

Work Processes User can Start

Customized UI

38 May 22-24, 2007


Implementation• Center all Systems on BPM & Workflow

– For example KTF utilized:• ERP (SAP)• FreeNet (Enterprise Knowledge Portal) Intranet• e-HR, CReaM (CRM)• other systems as stove-piped technologies.

– All the distinct systems are now centered on BPM & Workflow.

39 May 22-24, 2007


Implementation

40 May 22-24, 2007


Agenda Background Goals Barriers & Obstacles Key Business Innovation Strategy Technology Innovation Strategy Software Selection Criteria Core Process Classification, Analysis and Prioritization Implementation Process Highlight: Customer Care Process • Competitive Advantage• Sustaining Innovation

41 May 22-24, 2007


Process Highlight: Automated Customer Care Process

• Management Benefits– Standardization of customer care process:

• Eliminated the arbitrary prioritization of employee worklists.

• Increased the efficiency of work processing• Minimized educational training for new workers.

– Provided visibility into the customer care process • Critical customer satisfaction goals.

42 May 22-24, 2007



• Management Benefits– Better customer profile

• Increased customer data collection • Classify data as a complaining customer, or VIP,

and the system can come up with a strategic marketing plan for each customer.

– Customer care-related teams operate within a unified communication platform.

43 May 22-24, 2007


• Call Center Benefits– Absolute guarantee that registration of

feedback on customer care process is transferred to IT team.

– Customer feedback can be updated using prior customer care knowledge.


44 May 22-24, 2007


• IT Benefits– Excessive use of automated service is

prevented.

– Visibility customer service routing.

– Employee evaluations based on customer care performance.


45 May 22-24, 2007


• Customers– Fast feedback and response to customer

complaints.

– Improved customer service.


46 May 22-24, 2007


Agenda Background Goals Barriers & Obstacles Key Business Innovation Strategy Technology Innovation Strategy Software Selection Criteria Core Process Classification, Analysis and Prioritization Implementation Process Highlight: Customer Care Process Competitive Advantage• Sustaining Innovation

47 May 22-24, 2007


Competitive Advantage• Measured as:

– Quantitative Effects of BPM & Workflow Initiatives

– Qualitative Effects of BPM & Workflow Initiatives• Work Process Standardization

• Work Process Status Monitoring Improvements

• Statistical Data

48 May 22-24, 2007


Competitive Advantage• Quantitative Effects of BPM & Workflow Initiatives

– Reduction in work cycle times.

– Elimination of work delays• automatic work notification.

– Minimized paperwork• Use of electronic data (invoices, purchase request forms, order

forms, etc.) resulting in minimized paperwork.

– Elimination of redundant data input• Electronic document transfer prevented redundant input of

identical data.

49 May 22-24, 2007


Competitive Advantage• Quantitative Effects of BPM & Workflow

Initiatives (Cont’d)– Better collaboration between related departments.

• Real-time, step-by-step management.

– Increased worker productivity.• Reduction in claim response times.

– Faster and Educated Process Modifications • Process designs can be easily understood and changed

quickly and easily in the work environment.

50 May 22-24, 2007


Competitive Advantage• Qualitative Effects of BPM & Workflow Initiatives

Work Process Standardization– Standardization of work processes on the BPM &

Workflow Platform.

– Standardization through user authority setup and business rule application.

– Ease of Use• Users are able to easily perform tasks without relying on a

manual.

51 May 22-24, 2007


Competitive Advantage• Qualitative Effects of BPM & Workflow Initiatives

Work Process Standardization– Visibility

• Process participants can observe work through a standard process (from start to finish) and clearly see the object and contents of the work.

– Exception Handling• Automatically flagged • Follow-up measures are automatically initiated according to

pre-defined business rules.

52 May 22-24, 2007


Competitive Advantage• Qualitative Effects of BPM & Workflow InitiativesWork Process Status Monitoring Improvements

– Work transparency• Instant access to work details and based on defined process.

– Better Management Visibility• Process monitoring, automatic work notification

– Continuous Status Availability• Due date, emergency, delay, etc., available continuously.

– Real-Time Customer Support• Customer requests .

53 May 22-24, 2007


Competitive Advantage• Qualitative Effects of BPM & Workflow InitiativesWork Process Status Monitoring Improvements (Cont’d)

– Simplified reporting• Process efficiency, etc.

– Faster Service Introductions• Fast-paced work processes.

– Improvements to work management, work negotiation, and managerial functions.

– Work Load Management• Bottle-neck incidence. • Problem identification.

54 May 22-24, 2007


Agenda Background Goals Barriers & Obstacles Key Business Innovation Strategy Technology Innovation Strategy Software Selection Criteria Core Process Classification, Analysis and Prioritization Implementation Process Highlight: Customer Care Process Competitive Advantage Sustaining Innovation

55 May 22-24, 2007


Sustaining Innovation• Continuously monitor operations, and incorporate user

demands in order to maximize applications through exhaustive analyses.

• Further expand BPM & Workflow to the cut-off process between core systems.

• Monitor & improve existing processes.

• Create and manage an expert group in each core area to activate culture and cooperation around the BPM & WorkFlow solution.

56 May 22-24, 2007


Sustaining Innovation• Continuous promotion of BPM & WorkFlow solution

benefits.

• Establish and leverage expert BPM & Workflow group – carry out process optimization through process data

collection.

• Establish strategic goals and CSFs (Critical Success Factors) based on KPIs (Key Performance Indicators) linked with processes and continuously analyze process performance.

• Employee performance– Customer service, quality, cycle times, and costs.

57 May 22-24, 2007


Sustaining Innovation• Define the knowledge required for each

process, and find out from where the knowledge comes. Then supply the knowledge just-in-time at point of need. Accumulate the results of the process to create a useful knowledge base for the organization.

• Audit and monitor Internal Controls

• Establish Early Risk Warning system for operational risk management.

58 May 22-24, 2007


Thank YouThank YRobert CainDirector of Product ManagementHandySoft Global Corporation

Contact Information:[email protected]

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