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© 2020 TM Forum | 1#TMFDigital
NILADRI DUTTA
Building a winning Operating Model for Digital
© 2020 TM Forum | 2#TMFDigital
Digital in 3 different contexts
• Business Agility
• Rapid Time to Market
• Seamless Product / service offering across channels
• Customer Centricity
• Enhanced process automation
• Data Analytics (Big Data)
• Infrastructure Optimization (Cloud)
• Solution enablement to support products and customer centricity (IoT/Digital services)
• Help engage in a variety of Business Models
• Service enablement around Digital
• Personalized interaction
• Consistent Omni channel Digital Experience
• Automated assistance
• Real-time insights & information (including notification & alerts)
• Real time promotions and incentives
• Seamless experience
TELECOMSOLUTION PROVIDER
CUSTOMER
© 2020 TM Forum | 3#TMFDigital
Transition from ‘CSP’ to ‘DSP’
D(SP): Digitalizing Operations
Convergence , Business Process Automation , Business Agility, Data-Centric Architecture
Error Reduction , Single Customer Database, Customer Understanding, Omni-Channel Experience
(DS)P: providing new digital services
New generation of services, often called ‘digital services’., M2M/IoT related services, serving as software platforms for other businesses in B2B2C (or more complex) value chains.
vNGN: Next Generation network(cost efficiency, seamless services)
a new, agile network to support the new, agile business, Virtualization of networks, new digital service delivery platforms (DSDPs).
A traditional CSPs must take three steps on the journey to becoming a DSP
A service provider with ‘digitized’
operations
New product portfolio with Digital
services
CSP > DSP> Enablers =
D(SP) + DS(P)
vNGN
Supported by agile virtualized next gen
network
© 2020 TM Forum | 4#TMFDigital
Operating Model ‘Direct’ vs ‘Indirect’ impacts
The Digital Telco will essentially focus on re-invigorating the Digital Channels, re-looking at their products and
services and finally the overall process automation, thus changing the very face of the service provider.
• Self-service, online and mobile first
• Omni-channel customer experience
• Smart, personalized and proactive interactions through Big Data & Analytics
• Reduced cost of interactions
• New digital services to fight competition from OTTs
• Platform business model for 3rd party services
• Service providers for the digital society: IoT, Cloud
• Example companies which will integrate with Telco in education and health care services to deliver value (Practo, Byjus). These will be the new CORE services going forward.
• Process and IT transformation for simple, fast and cost effective operations
• IT and Network infrastructure optimization through Cloud
• Lean, agile and adaptable organizations supported by new skills
Digital Channels Digital Services Digital Enterprise DNA
© 2020 TM Forum | 5#TMFDigital
The Operating Model relevance in context of Digital
CORE DIGITAL STRATEGY
BUSINESS & ENGAGEMENT MODEL
OPERATING MODEL –
Digital Tx.
Digital Channels
Digital Services
Digital Enterprise DNA
Digital Target Operating Model is a
functional blueprint or a framework
driven approach which helps to tag
business, technology and operations
in a single view for C-levels within
the operator.
KEY BENEFITS & CRITICAL SUCCESSFUL FACTORS :1. An unique blueprint to engage
with C-levels2. Innovative business
engagement model. 3. Rapid engagement with Digital
eco-system.4. A well defined framework for
transformation project delivery5. An e2e perspective (Strategic &
Tactical view)
© 2020 TM Forum | 6#TMFDigital
Target Operating Model ‘design principles’
© 2020 TM Forum | 7#TMFDigital
Deriving an Operating Model
Identify Required Strategic Competitive Capabilities
Identify key OperationalDrivers & Goals and KPI’s and Measures
Describe Target key Digital
Capabilities To Achieve
Objectives, risks, goals, drivers
Design Digital lifecycles
Design Processes To Enable Capabilities
Design Systems To Drive Processes
Enable Organization & People
Define Business Vision & Engagement Model
There are multiple ways of defining and deriving an Operating Model. Often its dependent on the function or the organization function and its strategic or tactical derivatives. Mostly a ‘domain’ or a ‘dimension’ lead approach is being followed.
© 2020 TM Forum | 8#TMFDigital
Identifying the ‘dimensions’ of an Operating Model
The overall defined dimensions are all driven by the core Digital strategy which is being adopted by the Telco. Often they can be product
lead or customer lead depending on market dynamics and demand.
Customer Experience
Partner Eco-System
Business Processes & Use Cases
Performance Metrics
Digital Architecture, Digital Risk & Cyber
People & Skills
Key Assets
Innovation organisation
Operating Model
Dimension
Enhance and maintain insight of the Digital Telco customer touch points across all functional areas to ensure a consistent and distinctive customer experience
Seek outsourcing of non core activities to technology or service delivery partners to enable rapid enhancement of operations scale while maintaining quality
Formalise key business processes which have a significant business/customer impact and/or strong interdependencies across operations domains
Measure business and operational performance of the company based on a company wide performance management framework, data warehouse and system
Adopt Reuse before Buy before Build strategy based on componentized IT architecture separating distinctive Skype applications from generic business functionality
Institutionalize a training process to adapt to skill & capability requirements in pace with the growth of the company based on individual assessments
Concentrate activities with significant dependencies across functional area in operations on the same physical location to foster informal communication and alignment
Pursue formalized organization structure with appropriate ownership roles and responsibilities for service delivery activities combined with more autonomous teams for business development activities
Guiding principles
© 2020 TM Forum | 9#TMFDigital
Partner ecosystem Digital strategy
Customer Experience Digital experience
Digital Ecosystem Digital
Customer Journeys
User Experience
Digital PartnerModel
Partner KPI SLA Model
Cloud Service Delivery
Partner Organization
Corporate Customer
Business Model
OmnichannelUX
Digital Experience
Persona & Targets
Segmentation
Business Excellence (BSC)
KPIHierarchy
Business & investment
Case
Service Quality
Digital Lifestyle
Mapping the dimensions in defining the Operating Model
© 2020 TM Forum | 10#TMFDigital
Business processes and use cases Innovation organization
Digital Enterprise Architecture , Digital Risk & Compliance People and skills
Customer Lifecycle
Management
Agile Service Design & DevOps
Functional Digital
Architecture Digital
Mindset & Skills
PLM Processes
SLM Processes
ProductU/C
Network &IT U/C
Organization Design
Team Performance
Digital Governance
Roles / Responsibilities
System Use Case
Common Data Information
Models
Digital Risk Cyber Security & Digital
Infra
Change Leadership
Manage Talent & Competence
Manage Change
KnowledgeBusiness Rules
Mapping the dimensions in defining the Operating Model
© 2020 TM Forum | 11#TMFDigital
In line with Technology vendors enabling Digital transformation for Global TelcosThe relevance of Digital Operating Model to vendors
Benefits from a product/solutions stand point
• Creates an e2e visibility and perspective of the overall maturity and acceptance of Digital technologies.
• Helps to understand gaps and potential opportunities for potential solutions around the next gen OSS/BSS landscape, thus creating a better alignment of business with technology.
• Takes a view of Digital both from Networks and IT stand point which is a critical play for leading Telcos when it comes to convergence & Digital transformation.
Benefits from a services standpoint
• Digital transformation best practice blueprint and framework with specific assets and artefacts during project delivery.
• Standardization of developed assets resulting in an unique blend of business and technology understanding.
• Project roll out faster and easier and more cost effective due to introduction of this framework blueprint.
• Can make any entity an e2e transformation trusted Partner in SW lead Digital transformation engagements.
© 2020 TM Forum | 12#TMFDigital
Opportunity ‘Cost’ vs ‘Benefit’ for Operating Model in Digital
COST & OPPORTUNITY for Telco
• A typical operating model exercise involves an estimate of 3-4 months of investment from a Telco/service provider standpoint, depending on the focus organization and target stakeholders involved.
• The end game from an Enterprise stand point is the Functional Blueprint which CxOs can refer while looking at on-going or future transformation programs.
• A full detailed exercise for any specific customer (Group vs op-co) may be conducted to better understand & test the maturity and acceptability of these operating models and how well they can be implemented .
• Participation of both Business & IT functions are required for deriving for successful roll out of the operating model.
BENEFIT for Telco
• An unique framework for C-levels to match business , technology and operations
• A typical target of achieving a minimum of 25% reduction in cost and drive efficiency for newer business processes roll out and realization of the same in the Digital eco-system.
• Significant reduction of IT operational costs due to increase in capability identification & automation.
• A significantly Agile digital Telco ready to deliver next-gen services seamlessly.
• Am efficient and faster roll out of all relevant Technology projects in the context of Digital telco.
© 2020 TM Forum | 13#TMFDigital
▪ ‘As-Is’ pain points
▪ Current state assessment &
Heat Maps
▪ Impact Analysis &
Quantification
▪ Service Management
▪ Platform readiness assessment
▪ Business rule identification &
assessment
▪ Design Process & Architecture
blueprint along with new business
rules.
▪ Digital Platform enablement and
realization
▪ Digital Risk & Cyber Security
▪ Solution Design – Digital tx.
▪ Target Solution Prototype
▪ Agile Project execution
▪ Dev Ops & Micro Services
▪ Business Value Realization
Relevance of Operating Model – ‘The Big picture’
Integrated framework & Platform for project
execution
Target state: Transformation
“Outcome”
Current state: Transformation
“demand”
Business Process
Business Capability
Target Operating Model
Enterprise Architecture
Solution Use Cases
Operationalization
Solution Architecture
© 2020 TM Forum | 14#TMFDigital
Thank You !