BT’s TransformationSimplification via process led designW. George GlassChief Systems ArchitectBT Technology, Service & OperationsJune 2015

Multi-service platforms

CustomerManagement

ServiceManagement

InfrastructureManagement

reusablecapabilities

ServiceWrap for

Proposition 1

ServiceWrap for

Proposition 2

ServiceWrap for

Proposition 3Product 1 Product 2 Product 3

• Product stove pipes • Multi-service platforms • Monolithic system stack • Agile, partnership-basedmodel

ExternalPartner

BTBusiness Unit

BTBusiness Unit

BTBusiness Unit

BTBusiness Unit

electronic interfaces

Seamless Customer Experiencedelivered by multiple entities

credit vetting

technical checks

decomposition

retail billing

network

progress events

KCI

Non-SMPRetailers

SMP

Transport

wholesale products retail products credit vetting

tech checks

decompose

billing

network

progress

KCI

CRM

• Vertically integratedSystem stack

• Equivalence of input

ArchitecturalInsight

• Real time, zero-touch, self-care

exception queue

customer request

fulfilled request

• Complex, sequencedprocesses

Approximately 4500 systems` Vertically integrated Excessive maint & support costsCatalogued 3298 interfaces (SDK’s) Highly complex data Reliability and stability issuesIncreasing yearly Lengthy & costly dev cycles Heavily regulated environment

Matrix Platform Architecture

The BT IT functionality has been partitioned into a set of cooperating IT platforms

Reusable common capabilities (SDK’s) – keeping engineering costs down

Reusable process blocks – consistent customer experience26 platforms and 500 systems – simplicity and ruthless standardization

Intended to minimise whole life costs, reduce cycle time for launching new capabilities and facilitate business agility

Infrastructure DomainInfrastructure Domain

Infrastructure Management DomainInfrastructure Management Domain

Service Management DomainService Management Domain

Customer Management DomainCustomer Management Domain

EnterpriseManagementDomain

EnterpriseManagementDomain

Computing InfrastructureComputing Infrastructure

AssuranceAssurance

Monitoring and ReportingMonitoring and ReportingActivation and CapacityActivation and Capacity

IntegrationInfrastruct.IntegrationInfrastruct.

CollaborationCollaboration

Customer and ProductCustomer and Product Billing and PaymentsBilling and Payments

Fulfilment and Service InventoryFulfilment and Service Inventory Enterprise WorkforceManagement

Enterprise WorkforceManagement

Test andDiagnostics

Test andDiagnostics Service

ExecutionDomain

ServiceExecutionDomain

Voice andMulti-mediaVoice and

Multi-media

Video andContent

Video andContent

End User DomainEnd User Domain

Customer Premise EquipmentCustomer Premise Equipment Enterprise Customer EdgeEnterprise Customer Edge

SecuritySecurity

UK AccessUK Access IP and DataIP and Data

Global NetworksGlobal Networks TransportTransport

EnterpriseManagmentEnterprise

Managment

TSO Operationsand Tools

TSO Operationsand Tools

Facilities InfrastructureFacilities Infrastructure

Decision SupportSystems

Decision SupportSystems

End UserTechnologyEnd User

Technology

RevenueAssuranceRevenue

Assurance

How far down the road (initial focus on systems)

Established 26 Platforms Defined/designed ~200 core Capabilities (SDK’s) Systems Rationalisation

– Target is 85% reduction in current overall BT systems– We have closed the following numbers of systems to date

2005/06 – 203, 2006/07 – 527, 2007/08 – 638, 2008/09 – 323, 2009/10 – 285, 20010/11 – 235, 2011/12 – 242 2012/13 - 168 (Includes 6 large systems) 2013/14 – 325 2014/15 – 212 2015/16 – target 200

But…. Led to a new way of working

Designs start with the intentional, predictable, repeatablebusiness process

Expressed in a design template that maps consistently frombusiness process to capability

Measured in terms of the Customers experience– Quantified by ‘Cycle Time’ and ‘Right First Time’ value

Using Service Oriented Architecturetechniques and technology to deliver a

Customer Oriented Architecture

The process architecture is made of businessjourneys as required by the lines of business

The lines of business define the journeys relevant fortheir business, product and technology.E.g. Lead to cash - PSTN, Watch BT TV... Journeys can cover large or narrow number of

processes. Each journey is characterised by the scenario, the

business units and the products or area covered. Each journey has a named owner in the business

unit, identified measures and targets. Journeys are made from a flow of Reusable process

blocks relevant to the scope and the business. The journey model represents the flow of required

sub processes and Reusable processblock/instances. Journey are built as delta design based on an existing

baseline or best in class template.

JourneyScenario

BusinessUnits

Product /Technology

Reu

sabl

epr

oces

s B

lock

• Serve the customer• L2C Provide• L2C Modify• L2C Cease• T2R Reactive repair

• Use the service• SELF Install• SELF Use• SELF Repair

• Serve BT• T2R Proactive Repair• C2M Manage portfolio• Manage Finance• Manage HR

• BT Business• BT Consumer• BT Global

Services• BT Group• BT TSO• Openreach

Business scope What

Journeys are made from a flow of reusable process blocks andinstances relevant to the scope and the business

The Reusable process block represent a genericcapability, agnostic from usage context (actor,system, product,…), part of one or multiplejourneys. A Reusable process block can be a single

activity or a complete sub process. E.g. Identifycustomer, Manage appointment... Reusable process blocks are mapped to the

relevant industry framework e.g. ITIL, eTOM… Reusable process block are operationally

deployed through as many Reusable processinstances as required. Reusable process instance instantiate reusable

process blocks in a specific context (actor,system, product,…). Reusable process instances are fully defined

and documented (Workflow/process model/userinstruction, Policies, Training, Systems/Apps…)

BusinessUnits

Product /Technology

Instance

Reu

sabl

epr

oces

s B

lock

System /stack

HowWhat

• BT Business• BT Consumer• BT Global

Services• BT Group• BT TSO• Openreach

Manage ProgressManageContact Sell Service

Supply Service

ObtainPayment

CustomerMaster File

LogicalInventory

PhysicalInventory

Customer

M.Billing Order

M.Payment

M.Place

M. TechnicalAvailability

M. ProductAvailability

Manage Order Placement

M. BillingCust Account

M. CustBilling

M. CustomerOrder

M. CustLocation

M. Com’rcialCompatibility

M. SupplierOrder

Manage NT Order

M.Authentication

M. DomainActivation

M. Eng TaskM.Appointment

M. App’ntRouting

M. IT Order

M. ComputingResourceM. Backhaul M. Access

M. Core M. StorageResource

M. B2BTxN

Dia

logu

e

M.Customer

Engi

neer

Visi

t

KC

I

KC

I

KC

I

Cus

t.Pr

omis

e

Customer & Commercial Management

Resource Management & Infrastructure

Service Execution & Management

Dia

logu

e

Dia

logu

e

BT segment specific L2C – Constructed in the SDK using our standard capabilities, Reusableprocess blocks and delivering a consistent, desired customer experience

Right First Time (RFT)Improving BT’s networks, systems and processes for our Customers

We measure RFT across BT by monitoring how good we are at delivering new services to customers through the Leadto Cash (L2C) process and also how good we are at fixing customer problems through the Trouble to Resolve (T2R)process

We measure RFT for all our customers, whether they are consumers, small to medium businesses, major globalorganisations or communications providers – RFT is a BT-wide programme

The four RFT measures are (examples here but different in each LoB);– Contact One Contact Resolution, Not Abandoned & Propensity-to-Call (PTC)– Promises On-Time Delivery (OTD) & On-Time Repair (OTR) for specific LoB products– Quality Early Life Failure (ELF) & No Repeats– Speed Broadband Speed, NGA Speed, etc.

Event data (with time stamps) underpins process visualisation, e.g. for L2C consider key systemmilestones, incoming KCI messaging from suppliers, SKCIs to customers, inbound calls fromcustomers, … the data available depends on where you sit in the industry supply chain

KCI1 – Order Acknowledge

KCI2 – Order Commit

KCI3 – Order Complete

Engineering‘further’

e.g. field, frames

KCI1 KCID KCI2 KCID KCI3

Engineering‘completion’

e.g. field, frames

Planninge.g. ‘plan do’,

complex, new sites

Pre-order dialogue servicese.g. ‘tech check’, appointment /

number reservation …(not linked to subsequent order)

Events / activities visible to both Consumer and Openreach

Events / activities only visible to Consumer

Events / activities only visible to Openreach

KCID – Order Delay

Typical BT Process

Process visualisation is a tool to complement other BI tools– supports process discovery, i.e. what is really happening inside a process– can look at order (or fault) journeys in aggregate or at an individual order (fault) level– can look at customer life cycle journey (e.g. provisions, faults, complaints, …) in aggregate or

at an individual customer level– can be used to identify and quantify a specific failure pattern

The Aperture process visualisation tool …– is an in-house tool developed by our Research colleagues– is now being used within the Consumer and Openreach analytics area– is available with Consumer L2C data (refreshing daily as orders close)– has benchmarked favourably against third party tools (e.g. Clickfox)– is being ‘industrialised’ into our IT support infrastructure including professional service

support for the user community (site minder access, etc.)

Service Insights – Process VisualisationA new and innovate way to analyse processes

Failure ‘on the day’ KCI5473

e.g. ~50k new provide orders (using Consumer data sourced from EDW)… subsequent filtering can be applied to see just orders with particular KCIs or KCI sequences, ordersthat went to planning, orders that got cancelled, orders delivered late, etc. … down to individual orders

a) Boxes show KCI events and the number ofinstances of that event across the full dataset

b) Lines show transitions between events,number of instances making that transitionacross the full data set and averagetransition time

c) Line thickness is a high level indicator oftransition volume – red lines indicate arepeat transition within a given order

d) Numbers entering / leaving boxes don’t addup to 100% because only transitions thathappen at least 500 times are shown inthis example – to help see the ‘woodthrough the trees’!

Process Visualisation – Aggregate View

Most of the time provision orders are completed ‘on time’;but a minority of provision orders are completed late.

In this example, an ‘on the day’ failure to complete aprovision order ‘on time’ is indicated by a ‘572’ exceptioncode.

In some cases an unsuccessful engineering activityprecedes the ‘572’ exception code implying failure toovercome an engineering issue encountered ‘on the day’; inthe other cases the first engineering activity follows the‘572’ exception code implying insufficient engineeringresource to complete the engineering activity ‘on the day’.

Some engineering activities have to be completed on theday but others can be done ahead ‘of the day’. This analysissupported a process / system change to bring forwardspecific engineering activities that could be done ahead ‘ofthe day’ – but not too early as sometimes orders getcancelled late in the process by customers!

The key benefit of process visualisation is being able toboth identify and quantify failure paths in the process – aprerequisite to making process / system changes.

Process visualisation of multiple provision orders to highlightcommon process (failure) paths … key system events are used to representprogression of orders through the process, e.g. completion codes, engineering activity,contact events, etc.

a) Boxes show key process events (completion /exception codes , customer contact and engineeringactivity) and the number of instances of each eventacross the full data set

b) Lines show transitions between events, number ofinstances making that transition across the full dataset

c) Line thickness is a high level indicator of transitionvolume – red lines indicate a repeat transition withina given order

d) Numbers entering / leaving boxes don’t add up to100% because only transitions that happen aminimum number of times (configurable) aredisplayed – to help see the ‘wood through the trees’!

code indicating missed final deliverymilestone

code indicating failure of automated linetest following ‘successful’ completion of

engineering activitycode indicatingsuccessful completion

of order

customer inboundcall chasing order

progress

engineering activitywith ‘unsuccessful’

outcome

engineering activity with ‘successful’outcome

The uplift is making the architecture simpler, more flexible and sets up aclear governance for architecture and process change Architecture:

– Simple: The core architecture will be made of two layers: the business layer (catalogue of business journeys (e.g.L2C, T2R, User journeys…) and the process layer (catalogue of Reusable process blocks and instances).

– Flexible and complete: The architecture will become more flexible by relying on catalogues easy to update andmap to external standards (ITIL, eTOM, TAM…) instead of set in stone process structure.

– Reuse: Identify the reusable components (appropriate size/level for the business)

Governance– BT Process steering board: The BT Process steering board will drive the process-led approach and enable

adoption. E.g. drive process convergence.

– Integrated change management: A process-led approach where related process / system changes willcommonly controlled through the ACF process.

Standards and tools– BT Process expert forum: Process experts from all BT units will define and deploy the common standards e.g.

BPMN

– Process toolset: A set of tools covering design, publication, management and business improvement will bedefined and will support a pan-BT process catalogue.

– Training: The Process ALP’s will be updated to reflect all the changes.

Process

Define the problem or opportunity from the Customersperspective Measure and understand the cost and benefit of the proposed

change for the business Analyse the current process and document the target state and

how it will be achieved Implement through detailed design, development, test and

operational deployment Confirm benefits delivered and sustainable