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eTOM Mapping into ITIL delivery processes
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Applying eTOM (enhanced Telecom Operations Map) Framework to Non-Telecommunications Service Companies - An Product/Service/Solution Innovation Example
Alan McSweeney
April 19, 2023 2
As Its Simplest, Innovation Is …
• A good idea successfully implemented and operated
• This implies the need for effective processes for generating and identifying good ideas and for bringing them to fruition
April 19, 2023 3
Successful Innovation Means …
• Having a function and associated processes for Product, Solution and Service Lifecycle Management (PSSLM) − Structured approach to the introduction of innovations within
product/service/solution offerings from concept to delivery and operation
• There is no easy way to creating a new product/solution/service designed for large-scale sale and use
April 19, 2023 4
Move To Service Management
• Trends in information technology such as cloud and XaaS are moving companies from product to service and utility suppliers
• Evolution of telecoms companies mirrors the path many companies want to follow−Move from provision of telecoms links to services (voice, data,
television, gaming, wireless)− Telecoms industry can provide a model for business processes and
best practices for other industries looking to move to greater service orientation
• Move to services can be challenging for companies• A structured approach to innovation in important in such a
move
April 19, 2023 5
Spectrum Of Product/Solution/Service
Product
Collection Of Products Provided As A Package
Solution Limited Services
Extended Services Such As Warranty And Support, Warranty Renewal
Utility Services
Ongoing Services
Services Supplied As Part Of Solution
Solution As A Service (Cloud, XaaS, Utility Services, etc.)
April 19, 2023 6
Migration From Products to Services
Product Solution Limited Services
Utility Services
Ongoing Services
Where Many Companies Are Now
Where Many Companies Want To Be
Need A Structured Process For Innovation To Achieve Services Vision
April 19, 2023 7
Spectrum Of Product/Solution/Service
Sell Me Products That I Will Use To
Solve A Problem
Sell Me A Solution To A
Problem
Take Responsibilit
y For Operating
The Solution To The
Problem
April 19, 2023 8
Innovation Means …
• Acceptance of change – innovation implies and requires change
• Innovation exposes an organisation to change
• A secondary affect of successful innovation is the willingness of an organisation to change
• To be good at innovation means to be good at change
• Innovation means welcoming change and being able to successfully deliver change
• Innovation means continuously challenging accepted conventions
• If you cannot change, you cannot innovate
April 19, 2023 9
Changes Implied By And Required For Move To Utility Services
ChangesThe Nature OfThe BusinessRelationship
With The Customer
Implementing and SustainingUnderlying
OrganisationChange
Changes The NatureOf FinancialRelationship
With The Customer ChangesTo The
OrganisationCost Model
ChangesThe Services
ProvidedChanges
The InformationYou Have On
The Customer
April 19, 2023 10
Changes Implied By And Required For Move To Utility Services• Changes The Nature Of The Business Relationship With The
Customer: organisation becomes responsible for service management (availability, continuity, capacity, change, release, risk, security, access, facilities, compliance and many others)
• Changes The Nature Of Financial Relationship With The Customer: from initial payments and with smaller recurring component to near continuous payment for service
• Changes To The Organisation Cost Model: shift costs to organisation from customer as initial and ongoing investment required to generate recurring service revenue with consequences for cashflow and growth
• Changes The Services Provided: from initial supply with some packaged services and ongoing support/warranty to service management-oriented services
• Changes The Information You Have On The Customer: you know their pattern of usage of your service (product) and can obtain and exploit such insights
April 19, 2023 11
eTOM (enhanced Telecom Operations Map)
• Provides a detailed process framework for a telecoms utility companies that can be adopted by non-telecoms organisations moving to solutions as a service operating model− Developed by TM Forum - www.tmforum.org− eTOM -
http://www.tmforum.org/BusinessProcessFramework/1647/home.html • Reference framework that classifies and defines the business
activities used by a company involved in delivering (online) services – three major process areas:− Strategy, Infrastructure and Product – concerned with planning and lifecycle
management− Operations – concerned the core of operational management− Enterprise Management – concerned corporate or business support
management• Offers the potential for non-telecoms companies to learn from an
effective operational framework
April 19, 2023 12
eTOM Business Process Framework Overview
Strategy, Infrastructure and
ProductOperations
Enterprise Management
Customer
Strategy, New Ideas, Products And Associated Supporting Infrastructure Moved to
Production and Steady-State Operations
Fundamental Supporting Business Processes Needed To
Run Any Business
Operational Processes – Sales,
Fulfillment, Assurance, Billing
and Support
April 19, 2023 13
eTOM Business Process Framework - DetailStrategy, Infrastructure and Product Operations
Strategy and Commit
Infrastructure Lifecycle
Management
Product Lifecycle
Management
Operations Support and
Readiness
Fulfilment Assurance Billing and Revenue
Management
Marketing and Offer Management
Service Development and Management
Resource Development and Management
Supply Chain Development Management
Customer Relationship Management
Service Management and Operations
Resource Management and Operations
Supplier/Partner Relationship Management
April 19, 2023 14
eTOM Enterprise Business Process Model – Common Structure• eSample business process model has a three pillar structure that is common to
other business process models• Generic structure that forms a template for specific actualisations• eTOM provides a detailed template for communications service providers that can
be applied to other similar service companies
Vision, Strategy,
Leadership,Business
Management
Operational Processes With Cross Functional Linkages
Management and Support Processes
April 19, 2023 15
Sample Enterprise Business Process Models - 1
Business Controlling
Process
Processes That Direct and Tune Other Processes
Core ProcessesProcesses That Create Value for the Customer
Customer Acquisition
ProductDelivery
OrderFulfilment
CustomerSupport
Enabling ProcessesProcesses That Supply Resources to Other Processes
Channel Management
Supply Management
Human Resources
Information Technology
Business Acquisition
Business Measurement
Process
Processes That Monitor and Report the
Results of Other Processes
Customer’s Process Needs
Supplier’s Processes
Business EnvironmentCompetitors, Governments Regulations and Requirements, Standards, Economics
April 19, 2023 16
Sample Enterprise Business Process Models - 2
Supply Chain
Customers
Innovate
Sell
Align
Plan
MakeSource Fulfil
Build
FinancePeople Information Environment Governance
April 19, 2023 17
Sample Enterprise Business Process Models – Common Structure
Vision, Strategy,Business
Management
Operational Processes With Cross Functional Linkages
Management and Support Processes
Develop and Manage
Products and Services
Market and Sell Products and Services
Deliver Products and
Services
Manage Customer
Service
Human Resource
Management
Information Technology
Management
Financial Management
Facilities Management
Legal, Regulatory,
Environment, Health and
Safety Management
External Relationship Management
Knowledge, Improvement and Change
Management
Vision and Strategy
Business Planning, Merger,
Acquisition
Governance and
Compliance
April 19, 2023 18
Achieving the Potential – New Product/Service/Solution Innovation Industrialisation and Productisation
Industrialisation
Common Implementation and
Operation Approaches
Productisation
Defined Set of Products/Solutions/
Services and Packaging/Delivery
Options
• Productisation is a pre-requisite for and an enabler of industrialisation
April 19, 2023 19
Innovation and eTOM
• Innovation is about managing the value from new ideas• New and enhanced existing products, solutions and
services are just one aspect of innovation• Product, Solution and Service Lifecycle Management
(PSSLM) is a generalised view of completing the innovation process and achieving actualisation of ideas
April 19, 2023 20
Migration From Products to Services
Product Solution Limited Services
Utility Services
Ongoing Services
Where Many Companies Are Now
Where Many Companies Want To Be
Use Appropriate Elements Of eTOM Process Framework To Achieve Services
Innovation And Transformation
April 19, 2023 21
Innovation Extends Creativity To Implementation And Generation Of Value
Discern
Creativity
Develop
Clarify
Verify
Implement
Market
Sell
Innovation
Value
Using a Structured Approach to Industrialising Innovation
Maximises Value
Manage
April 19, 2023 22
Where Organisations Look For Innovation
• Product/solution/service innovation is just one aspect of a wider view of innovation
April 19, 2023 23
Where Organisations Can Look For Innovation
FinanceBusiness Model How Do You Make Money?
Networking and Alliances How Do You Work With Other Organisations For Mutual Benefit?
ProcessesCore Processes How Do You Create and Add Value To Your Products And Services?
Enabling Processes How Are Core Processes Supported And Enabled?
Products and
Services
Product Performance How Do You Design Your Core Products And Services?
Product System How Do You Connect Or Provide A Common Platform For Your Products And Services?
Service How Do You Provide Value To Your Customers Beyond Your Core Products And Services?
Provision and
Delivery
Channel How Do You Get Core Products And Services to Market?
Brand How Do You Communicate Your Core Products And Services?
Customer Experience
How Do Customers Feel When They Interact With Your Organisation And Your Products And Services?
April 19, 2023 24
Product, Solution and Service Lifecycle Management (PSSLM)
• PSSLM is concerned with the functions and processes need to define, plan, design, build, deliver, maintenance, manage revise and retirement of all products, solutions and services in the organisation’s portfolio− Enable the organisation strategic and business
product/solution/service vision−Drive internal and customer-oriented processes to meet market
demand and customer expectations
April 19, 2023 25
Product, Solution and Service Lifecycle Management (PSSLM)
• PSSLM belongs within Strategy, Infrastructure and Product/Solution/Service (SIPSS) function
• Responsibilities of SIPSS function−Develop strategy−Commit to the organisation−Build and resources infrastructure - supports the delivery
products, solutions and services themselves and their associated functional processes−Develop and manage products, solutions and services−Develop and manage the supply chain
April 19, 2023 26
Strategy, Infrastructure and Product/Solution/Service (SIPSS) Function
• Innovation – development of new products/services/solutions lie in SIPSS function
• SIPSS divided into −Horizontal functional groups
• Marketing and Offer Management• Service Development and Management• Resource Development and Management• Supply Chain Development Management
−Vertical process views• Strategy and Commit• Infrastructure Lifecycle Management• Product, Solution and Service Lifecycle Management
April 19, 2023 27
Strategy, Infrastructure and Product/Solution/Service (SIPSS) - Horizontal Process Functions and Vertical Process Views
Strategy, Infrastructure and Product/Solution/Service (SIPSS)
Strategy and Commit Infrastructure Lifecycle Management
Product, Solution and Service Lifecycle
Management
Marketing and Offer Management
Service Development and Management
Resource Development and Management
Supply Chain Development Management
April 19, 2023 28
Strategy, Infrastructure and Product/Solution/Service (SIPSS) - Horizontal Process Function Details
Marketing and Offer Management
Service Development and Management
Resource Development and Management
Supply Chain Development Management
Market Strategy and
Policy
Product and Offer Portfolio
Planning
Product and Offer
Capability Delivery
Marketing Capability Delivery
Product and Offer
Development and Retirement
Sales Development
ProductMarketing
Communicationsand Promotion
Service Strategy and
Planning
Service Capability Delivery
Service Development
and Retirement
Resource Strategy and
Planning
Resource Capability Delivery
Resource Development
and Retirement
Supply Chain Strategy and
Planning
Supply Chain Capability Delivery
Supply Chain Development and Change
Management
April 19, 2023 29
SIPSS – Vertical Process Views
Strategy and Commit
Strategy, Infrastructure and Product/Solution/Service
(SIPSS)
Responsible for the generation of strategies and establishment of
business commitment in support of the Infrastructure and
Product/Solution/Service Lifecycle processes involving all levels of
operation from market, customer and products/solutions/services,
through the services and the resources on which these depend to
the involvement of suppliers and partners in meeting these needs
Infrastructure Lifecycle Management
Product, Solution and Service Lifecycle Management
Responsible for the definition, planning and implementation of all
necessary infrastructures (application, IT and network), as
well as all other support infrastructures and business
capabilities (operations centers, architectures, etc.)
Responsible for the definition, planning, design and implementation of all
products/solutions/services in the organisation’s portfolio to required profit margins customer satisfaction
and quality commitments, delivering new and retiring existing products/solutions/services to the
market
April 19, 2023 30
SIPSS - Horizontal Process Functional Groups
Strategy, Infrastructure and Product/Solution/Service
(SIPSS)
Marketing and Offer Management
Service Development and Management
Resource Development and Management
Supply Chain Development Management
Defines strategies, develops new products/solutions/services, manages existing
products/solutions/services including retirement, manages pricing, sales and channels and implements
marketing communications and promotion and offering strategies
Plans, develops and delivers services to operations domain for product/solution/service creation and
design, managing and assessing the performance of existing products/solutions/services and ensuring that
capabilities are in place to meet future product/solution/service demand
Plans, develops and delivers the resources - physical and non-physical - needed by operations to support
products/solutions/services, manages and assesses the performance of existing resources and ensures that
capabilities are in place to meet future products/solutions/services needs
Focuses on the interactions required by the organisation with suppliers and partners who are
involved in maintaining the supply chain network of relationships that a service provider manages to source
and deliver products, supports sourcing decisions, suppliers and partners selection
April 19, 2023 31
Horizontal Process Functional Structure
• Four levels of process detail within horizontal structure
April 19, 2023 32
Product, Solution and Service Lifecycle Management – Functional Structure – Levels 1, 2 and 3
Level 1Level 2
Level 3
April 19, 2023 33
Product, Solution and Service Lifecycle Management – Functional Structure
• Functional view of what is needed to productise the results of innovation
• Not prescriptive of the approach
April 19, 2023 38
Product And Offer Development And Retirement – Levels 3 and 4 Process Details
Product And Offer Development And
Retirement
Gather and Analyse New Product Ideas
Research and analyse demographic, customer, technology and marketing information to identify new product and offer potential opportunities, compare current capabilities
with the identified opportunities and develop new opportunity concepts
Assess Performance of Existing Products
Develop New Product Business Proposal
Develop Product Commercialisation
Strategy
Develop Detailed Product Specifications
Manage Product Development
Launch New Products
Manage Product Exit
Analyse the performance of existing products to identify inadequacies and required improvements using information from customers and from operational activities
Develop and document business proposals for the identified new product concept, including a business case, identifying the new product requirements, service
components, development costs and anticipated benefits, risks and the competitive positioning
Ensure that product specific pricing, sales channel support and regulatory approvals are identified and agreed and developed ensuring that all commercialisation aspects of the
product development process associated with selling the product are covered
Develop and document the detailed product-related technical, performance and operational specification including required product features, the specific service and
resource requirements and selections, the specific performance and operational requirements and support activities
Ensure the co-coordinated delivery in line with the approved business case of all required product capabilities for that business case across the organisation
Manage the initial introduction of new and enhanced products into the market and handover to operations for ongoing rollout
Identify existing products which are unviable and manage the processes to exit the product from the market, identify customers impacted by the exit, develop customer
specific or market segment exit or migration strategies, develop infrastructure transition and/or replacement strategies
April 19, 2023 39
Sample Cross-Functional Scenario - Get Approval For The Development Of A New Product/Solution/Service
• Product/solution/service consists of components that can be reused to further define and build new products/solutions/services
• New product/solution/service proposal is then submitted for approval • Processes involved in this scenario are:
− Product and Offer Portfolio Planning− Product Marketing Communications and Promotion− Product and Offer Development and Retirement− Service Strategy and Planning− Service Development and Retirement− Resource Development and Retirement− Product and Offer Capability Delivery− Service Capability Delivery − Resource Capability Delivery
• Outputs from scenario− New product/solution/service with its associated services and resources developed,
tested and accepted− Configuration information including pricing rules and promotions
• Steps can be iterated for rapid product/solution/service concept exploration and examination
April 19, 2023 40
Process Interactions – Get Approval For The Development Of A New Product/Solution/Service
Product and Offer Capability Delivery
Product and Offer Development and
Retirement
Service Capability Delivery
Service Development and
Retirement
Resource Capability Delivery
Resource Development and
Retirement
Supply Chain Capability Delivery
Supply Chain Development and
Change Management
Product and Offer Capability Delivery
Product and Offer Development and
Retirement
Service Capability Delivery
Service Development and
Retirement
Resource Capability Delivery
Resource Development and
Retirement
Supply Chain Capability Delivery
Supply Chain Development and
Change Management
1
2
34
5 6
8 79
10
11
12
13
14
15
April 19, 2023 41
Process Interactions – Get Approval For The Development Of A New Product/Solution/Service
1. Provide Product/Solution/Service Development Plan2. Provide Product/Solution/Service Development Plan3. Provide Resource Infrastructure Requirements4. Provide Product/Solution/Service Deployment Plan5. Provide Service Infrastructure Requirements6. Provide Supplier/Partner Capability Requirements7. Provide Supplier/Partner Infrastructure Requirements8. Provide Resource Infrastructure Requirements9. Provide Supplier/Partner Required Capabilities10. Provide Resource Infrastructure Plan11. Provide Supplier/Partner Integration Plan12. Seek Approval For Supplier/Partner Infrastructure and Integration Plan13. Seek Approval For Resource Infrastructure Plan14. Seek Approval For Service Infrastructure Plan15. Seek Approval For Product Infrastructure Plan
April 19, 2023 42
Repeat Process Cycle At Greater Levels Of Detail For Refinement and Iterative Delivery And Identification of Appropriate Innovations
Product and Offer Capability Delivery
Product and Offer Development and
Retirement
Service Capability Delivery
Service Development and
Retirement
Resource Capability Delivery
Resource Development and
Retirement
Supply Chain Capability Delivery
Supply Chain Development and
Change Management
Product and Offer Capability Delivery
Product and Offer Development and
Retirement
Service Capability Delivery
Service Development and
Retirement
Resource Capability Delivery
Resource Development and
Retirement
Supply Chain Capability Delivery
Supply Chain Development and
Change Management
April 19, 2023 43
Use The Framework As A Checklist For Product/Solution/Service Development
Marketing and Offer Management Market Strategy and Policy Gather and Analyse Market Information Establish Market Strategy Establish Market Segments Link Market Segments and Products Gain Commitment to Marketing Strategy Product and Offer Portfolio Planning Gather and Analyse Product Information Establish Product Portfolio Strategy Produce Product Portfolio Business Plans Gain Commitment to Product Business Plans Product and Offer Capability Delivery Define Product Capability Requirements Capture Product Capability Shortfalls Approve Product Business Case Deliver Product Capability Manage Handover to Product Operations Manage Product Capability Delivery Methodology Marketing Capability Delivery Define Marketing Capability Requirements Gain Marketing Capability Approval Deliver Marketing Infrastructure Manage Handover to Marketing Operations Manage Marketing Capability Delivery Methodology Product and Offer Development and Retirement Gather and Analyse New Product Ideas Assess Performance of Existing Products Develop New Product Business Proposal Develop Product Commercialisation Strategy Develop Detailed Product Specifications Manage Product Development Launch New Products Manage Product Exit
April 19, 2023 44
Summary
• eTOM (enhanced Telecom Operations Map) business process framework can provide a workable model for transition to services for non-telecommunications service providers
• Proven framework for area of services provision• Organisations offering cloud and XaaS services moving
from products to communications-like utility services• eTOM can be extended outside its core
telecommunications focus to these organisations