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Building a customer centric TelcoA KPN case study

Eric Kuisch, KPNNext Generation OSS/BSS and Service Provisioning Forum 2008

16-18 January, Amsterdam

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Agenda

• Introduction to KPN

• Our approach to customer centric OSS/BSS

• Key areas for consideration

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KPN Royal Dutch Telecom

• Telephony, Internet and

Television in The Netherlands

• Mobile communication in The

Netherlands, Belgium (BASE)

and Germany (E-Plus)

• 24.890 employees (fte’s)

(18.071 in The

Netherlands)

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KPN development during the last hundred years

1900 – 1980 – …Network utility

1980 – 2000 – …Telecom products

2000 - …Human connectivity

• Focus: networks• Front-end: telephone and data ‘jack’• Mass processes• Physical logistics• No marketing• Network technology & billing IT

• Focus: products• Front-end: sales and product mgt.• Mass processes• Physical logistics• Product marketing• The rise of IT

• Focus: service delivery• Front-end: sales and customer service• Mass customization• Logical logistics• Service marketing• CRM, BSS/OSS

Requires technological and organizational transformation!

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Vision

KPN wants to be the preferred supplier for: multiaccess-, managed ICT- and network services

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Organization KPN the Netherlands now organized along Consumer and Business divisions

• New organizational structure KPN the Netherlands effective as of 1 January 2007

Board of Management

ConsumerBaptiest Coopmans

BusinessEelco Blok

Wholesale & Operations

Eelco Blok

IT NLMarcel Smits

Mobile International

Stan Miller

KPN the Netherlands

• Network assets for both fixed and mobile

• Efficient use of infrastructure

• All Business operations in one division

• Cross & up-selling

• Innovation

• All Consumer operations in one division

• Cross & up-selling

• Innovation

• Centralized IT systems

• Rationalization and time to market

• International Mobile challenger

– E-Plus

– BASE

– Mobile wholesale NL

p

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KPN strategy Attack-Defend-Exploit strategy to deal with shifts in the market

Maintain market leadership ‘new world’Active migration of customers to IP services• Customer centricity• Increase market share in broadband• Implement VoIP, (IP)TV, ‘multiplay’, IP-VPN, E-VPN• Implement ‘managed ICT solutions’ and vertical solutions

Stop market share loss in traditional world• Customer centricity• Regain market share in traditional voice market• Maintain market share in mobile market• Implement simplified ‘voice-only’ in IP network

Increase bandwidthDecrease level of operational costs• Increase customer satisfaction and productivity (Lean6Sigma)• ‘Zero touch’ processes due to automation and modern network• Adjust organization and reduce staff levels

Attack

Defend

Exploit

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Agenda

• Introduction to KPN

• Our approach to customer centric OSS/BSS

• Key areas for consideration

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Our Strategic Objectives

KPN Business Market Ambition: ‘Our customers appreciate our service and actively promote KPN as preferred partner in business’

Our Mission

We have the right customer insights to support and optimize our clients business processes with outstanding ICT services

1. We show best-in-class profitability and growth as the majority of our customers promotes KPN as preferred partner in business

2. We offer transparant and compelling propositions with outstanding customer service

3. We have highly motivated staff who promote KPN als employer of choice

4. Our operational performance beats customer expectation

5. Our way of working shows personal responsibility, commitment and genuine customer ownership

staff

customer

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State of Affairs in OSS

Customer Satisfaction• We need to improve our

performance to become the benchmark on customer satisfaction

Loyalty• The majority of our customers

don’t actively promote KPN business market

Poor BSS/OSS design and performance is a root cause for customer complaints (no FTR delivery, long lead times, miscommunication)

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Business Processes

Future proof IT Architecture

Way of Working

• Define business architecture to realise the customer experience

• Organise operational execution• Strong BPM to implement change

Applications, information, IT-infrastructure

People, skills, organisation, working methods

Next Generation BSS/OSS development: it needs a business approach!

Governance

Customer Excellence

• Define TO BE customer experience and key performance indicators

• Outside in approach: customer first

What

How

A business program approach is required to enable consistent, multidisciplinary implementation of next generation BSS/OSS

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Agenda

• Introduction to KPN

• Our approach to customer centric OSS/BSS

• Key areas for consideration– Customer Experience

– Governance

– Way of Working

– Business processes

– IT Architecture

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Next Generation OSS development: The Customer Experience

• Customer experience drives all major business processes

• Customer insights and KPN experience were combined to define the priorities for TO BE customer experience

• Step wise implementation in all channels and customer segments (SME/SOHO, Large/Major Enterprise, Corporate)

• Net Promotor Score® is applied for implementation in key touchpoints

Renewal ,churnOffering Distribution Activation Billing &

collectionCustomer

serviceUsage ReorientationSalesRenewal/Churn

ProductOffering Delivery Activation Billing &

PaymentCustomer ServiceUsage ReorientationSales

BSS OSS

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Next Generation OSS development: The Governance

• Define target Business Architecture– Target portfolio

– Customer centric processes

– IT target architecture

• Endorse Roadmap driven Development– At least 80% of innovation investment is in target business architecture

– Freeze changes in legacy IT

– Release management enables firm priorities and risk management

• Simplify and standardize portfolio– Standard IP based basic services, tailor made propositions

– Leverage All IP infrastructure

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Next Generation OSS development: The Way of Working

• Informal working methods and bespoke tooling are numerous. Implementation of new BSS/OSS are moments of truth to change this way of working without compromise. Constant communication on required change is key ...

• Enable staff to contribute from the very start to new way of working. Realisation of quick wins are instrumental to build staff morale

• We widely employ Lean Six Sigma to learn quality improvement from a customer perspective and boost problem solving skills of our staff

• “Old OSS never die, they simply fade away…”

Implement temporary tooling to accomodate staff while new IT is being developed.

– Our early trials with Corizon show encouraging potential

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Next Generation OSS development: The Business Processes

• Customer Centric–Define process from customer perspective–First Time right principle–Uniform processes in all channels

• Business focused–Flexibility, time-to-market–Proces architecture in line with commercial formula

• 3 Basic data models–Customer model–Productmodel –Ordermodel

• IT requirements–Based on services, not applications–COTS IT solutions

• Validation with Customer Use Cases–Real-time offer possibility–Real-time appointment on delivery–360 customer view in all channels

GU

IDEL

INES

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Next Generation OSS development: The IT Architecture

The Service Network Integrator bridges the gap in customer centric OSS/BSS

Product portfolio

Customer communication

Service Network

IntegratorProduct A Product B Product N

Assignment

Assignment

Status/Referral

Status/Referral

Assignment 3a

3b

3c

4c

4b

4a Status/Referral

2

1 34

The Service Network Integrator

is the workflow manager for communication between customer representatives and operational delivery units…

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Questions & Answers

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