Higinio Lobato

Senior Business Consultant

Huawei Global Business Consult ing Center

Munich, Germany

Higinio. lobato@huawei.com

Agenda

Why you need to transform

What you have to transform

How to transform

Higinio Lobato: Huawei Software, Global Business Consulting Center Senior Telco Expert with Consulting Experience

Wo

rking Exp

erie

nce

Mr Lobato has over 17 years experience on transformation programs for major telecommunication companies worldwide. Certified project management professional with hands on experience in a wide range of roles including business process definition/reengineering, change management, requirements gathering, design, development, integration, testing, deployment and maintenance among others. Specialties: Business Supporting Systems (BSS) / Operation Supporting Systems (OSS), including both Best of breed and as best of suite approaches Broad CRM expertise, Telco business processes, fixed mobile convergence for all customer segments. Revenue Management: billing, rating, charging, settlement. Sales & Service Order Management systems including fulfillment, provisioning, network inventory management and operations.

Years of work: 17+ (Telco Industry)

Nationality: Spanish

Masters degree in Management Information Systems

Level Senior Consultant

Pro

ject Experien

ce

Accenture Manager, Communications & High Tech

Role Sr. Business Consultant •Solution architect for a CRM solution based in Siebel and TIBCO for Orange Spain (Mobile operator)

•Manager responsible in the implementation of a CRM based in Siebel, Corporate customers’ segment at Telefonica Global Technology (deployed in 9 countries).

•Manager responsible in the implementation of a CRM application based in Siebel for Telefonica Spain

•Release Manager at British Telecom of a CRM based in Clarify (Amdocs)

Professional Ability

• BSS Transformation • Enterprise Solutions Architecture across

Business Processes, Applications and Technology domains

Domain Expertise

Amdocs Senior Consultant , Clarify CRM Division • E2E BSS • E2E OSS • CRM • Billing • PMP

Product expert consultancy on Clarify CRM projects working principally with Vodafone Spain

ONO (Spain’s cable operator) Business Analyst

Clarify Maintenance Unit (CRM) responsible

Agenda

Why you need to transform

What you have to transform

How to transform

Why you need to transform : Digital Revolution

We’re living the

biggest

revolution since

the 1800’s

Three commonalities of a revolution

Unstoppable Winners and losers Transformational

Why you need to transform : Digital Evolution Music Television

Communications

Why you need to transform : Customer behavior

1.8 Billion: Smart phones in 2015

+100: Service plan for choices

+100M: Virtual communities

734 M: Worldwide of Social networks

65 M: Tweets per day

5.3 Billion: Mobile users today

50 Billion: Connected devices in 2020

85%: New handsets access mobile web

+11M: SMS sent every minute

+ 130M: IM in China users on-line

simultaneously

Being connected anytime & anywhere Internet in pocket

Online social activities Machine that talks

Why you need to transform : Customer behavior

Born between 1980-2000

They can be considered as

the first global teenagers and

best prepared

They are the future

Innovators, open minded,

self secured, critical,

participative

Multitasking

They have the ability to

do several things in

parallel

Cape Diem

Take advantage of the

present, look for

happiness in

everything they do

Passion for technology

Technology is part of their

ADN

Versatile

They are constantly

looking for new

challenges and

entrepreneurships

Collaborative

Best results are obtained

by team working

Pro-consumers

They are not only

consumers, they generate

ideas which improve

products

Me llevó cuatro años pintar como Rafael, pero me llevó toda una vida pintar como un niño.

Why you need to transform : Telco Challenges

Market Leader for over 100 years

Rated as most valued companies in the world in 90’s

Kodak built one of the first digital camera in 1975

In early 80’s Kodak knew about digital adoption by 2010

They had time, money and management skills to do so

They were lacking

a) Sustained Strategy – Lost Perspective & Vision

b) Executives sat at piles of cash with no incentive to assume risks

c) “Experts” ruled while “Innovators’ were left with no chance

d) “Experts” were experts on “what was” and not on “what will be”

Why you need to transform : Downfall of Kodak

Agenda

Why you need to transform

What you have to transform

How to transform

Clear Objectives for any Transformation is a ‘MUST’

“...would you tell me, please which way I ought to go

from here?"

"That depends a good deal on where you want to

get to," said the Cat.

"I don't much care where----" said Alice.

“Then it doesn‘t matter which way you go,” said the Cat.

What you have to transform : Philosophy

… do not think solution first, think opportunities & challenges and then decide the solution

Customer needs and expectations

Market Dynamics

Competition

Business environment and goals

Technology Trends

Legal & Regulatory environment

Business Drivers

Understand business drivers

Define/ agree results on

company level

Upon that …

• … define Strategies

• … develop Capabilities

(i.e. ‘IT plus’)

Apply holistic Enterprise

Architecture:

• Intelligently automated

processes, shared &

virtualized infrastructure

Improved competiveness

Enhanced Customer satisfaction

Sustainable customer structures

Enhanced Business Agility

Improved Time and Cost to Market

Results

Holistic approach

Business model

Systems

People

Processes Organization

Take Over Merger

Centralisation Orchestration

What you have to transform : WHY first, before WHAT

What you have to transform : Operator Segments

Specialized Market Leaders

Emergent Incumbent

4 Quadrant for Operator Segmentation

Improve Market Share

Network Evolution

Reduce Operations Cost

Agile Process & Platform

Continuous Improvement

Time to Market

New Business Models

Customer Experience (QoS)

Customer Retention

Increase ARPM

Network Utilization

Product Retirement

Market Penetration

Operations Automation

Network Rollout & Expansion

Aggressive Product offerings

Marketing Cost

Time to Market

Boost Business

Operations Efficiency

Network Evolution

Improve Capacity

Customer Churn

Cob-Web Architecture

Strength

LEGEND

Focus Area

Major Concern

Subscriber Base

AR

PU

“Operator Segmentation leads to better tailored

transformation solution”

What you have to transform : Strategy

Goal Alignment

Service Mix

Performance Optimization

Alignment of business architecture, applications portfolio and infrastructure to critical business functions through process fit and process alignment assessments

Optimized IT architecture that supports the portfolio considering levels of complexity, duplication, redundancy, high technology costs and risk

Optimum service mix of asset-based solutions and cloud service options (e.g., IaaS, PaaS, SaaS) for the portfolio

Taking a “Holistic” View

What you have to transform : Solution

Ben

efit

s

Ease of Adoption

Cummulative Return on Investment over time (less Self Service)

($1,500)

($1,000)

($500)

$0

$500

$1,000

$1,500

$2,000

$2,500

2009 2010 2011 2012 2013 2014 2015 2016

Desktop

Invest for Future

Multichannel

Proactive Service

Reporting/QMS

Tier 1

Business and IT Assessment Portfolio Effectiveness Review Cloud Candidates

Enterprise / Application Architecture Business Case Transformation Road Map

Better Enterprise analysis leads to better

Transformation Roadmap. Adherence &

fine tuning the roadmap leads to

successful transformation.

Agenda

Why you need to transform

What you have to transform

How to transform

How to transform

Digital

Customer

Experiences

Agile IT

Digital Services

3 Advices for digital

transformation

Digital services are the new revenue source

Source: Gartner and Ovum, and TM Forum

TOP 5 priorities for digital customer experience

• Improving the online customer experience

• Improving cross-channel customer experience

• Adding or improving mobile customer experience

• Using communities and other types of social computing

• Improving the experience of interaction with a call center agent

Source: Forrester Research

Source: TM Forum

Approach to becoming an agile business

• Develop a clear vision and strong leadership

• Simplify your product portfolio and channels to market

• Simplify your business processes

• Simplify your IT systems and platforms

• Avoid reintroducing complexity

How to transform: OTT Model

Order Completion time

Service

TTM

5～15 minutes

1week～6 months

<1 minute

within minutes

3

Cost /transaction

Sales

Channels

>0.5 $

thousands biz halls

<0.01 $

One online portal

4

Numbers

Partner

Types

Hundreds

1

Millions

5

B2B,B2B2C,O2O

Campaign Frequency

Marketing 2

MKT Vehicles Social MKT Outbound calls/text

thousands of campaigns/week

1 Campaign/week

Product Types of products

1

Daily transaction 200+ Millions Millions

Billions Thousands

ICT Transformation

Telco OTT

20

How to transform: Digital Business Organization

United States Middle East Europe Asia

Decentralized Hybrid Centralized

Central strategy unit + innovation “foundries”

+ innovation in individual business

units

Central Innovation unit + local OpCo implementation

New Business unit

Approach to new Telco Services

Model used to develop new telco services

<10 <50 <1000 Number of

employees per unit

Source: STL Partners/Telco 2.0

How to transform: Executing strategy by transformation

How to transform: Digital Telco Processes

Network Domain Order to Acceptance (O2A)

Capacity Management (CLM)

Trouble ticket-to-solution (T2S)

Resource Lifecycle Management (RLM)

Service Lifecycle Management (SLM)

Partner Domain Request to Qualification (R2Q)

Order to Sales (O2S)

Qualified Partner to Settlement (Q2S)

Sales to Commission (S2C)

Content/App to Offer (C2O)

New Partner to SLA (N2S)

IT Domain System to Availability (S2A)

API to Partner (A2P)

Demand & Change Management (D2C)

Incident Management (I2S)

Service Quality to Customer (Q2C)

Customer Domain

Interaction to Response (I2R)

Order to Payment (O2P)

Request to change (R2C)

Termination to Confirmation (T2C)

Problem to Solution (P2S)

Complaint to Solution (C2S)

Revenue Domain Usage to Payment (U2P)

Usage to Finance (U2F)

Market Domain

Idea to Product (I2P)

Lead to Cash (L2C) -> Campaign

Churn to Loyalty (C2L)

Product to Launch (P2L)

Go to Re-Launch (G2R)

Go to Terminate (G2T)

Data to Action (D2A)

How to transform: CLM and E2E Process

How to transform: Enabling business in 5 dimensions

Enabling Digital

Services

Enabling Agile

Business

Enabling “Roads”

Customer

Experience

Enabling Digital

Partner

Aggregation

Enabling New

Technologies

Millions of

various products

Customer can

participate in

product

definitions

Data asset

monetization

based on big

data analytics

Shorten TTM

Automation

integration

Simplify the

management

Ease of change

R: Real-time

O: On Demand

A: All online

D: DIY

S: Social

More business

models: B2C,

B2B, B2B2C, …

Partner

aggregation

Partner self

management

and operation

Openness

Cloud based to

reduce CapEx

Modular COTS

to reduce OpEx

Replace “IOE”

Product Data-Driven Customer Experience Value Chain New Technology

How to transform: Enabling ROADS customer experience

All-online All-online Business Experience – Join,

Use, Pay, Change, Help, Retain, Join

and Share.

Omni-channel, Multi-device and One-

screen

ROADS

On-Demand Product Recommendation/Product On-Demand

One-click Purchase/Purchase On-Demand

Bandwidth and Service Allocation/Resource

On-Demand

Real-time Personal Information Inquiry

Purchase and Fulfillment

Recommendation

Notification and Reminders

Do It Yourself (DIY) DIY Personal Package

C2C Trading and Sharing of Products

and Services

Social Social Network Marketing

Social Network based Customer

Care and Experience

Nuestro ADN es de una empresa

de consumo, estamos hechos para

un cliente que sabe diferenciar lo

bueno de lo malo. Creo que

nuestro trabajo es ser responsables

por la totalidad de la experiencia

del usuario. Y si no cumple sus

expectativas, es totalmente nuestra

culpa, así de simple.

How to transform: Enabling Digital Partner aggregation

Operator Brands

CPs/SPs Verticals

DSPs

Retailers Wholesales

Analyze

Build

Flexible Business Model: B2B, B2B2C, B2C, O2O

Flexible settlement and revenue sharing model

Partner on-boarding Quick on-boarding

Shop decoration

Flexible bundles and products

Hierarchy management Multinational partner: group and affiliates company

Multiple tenants

Open Capability to Partners Marketing capability

IT & customer asset capability

Order, payment, charging, billing capability

APIs

How to transform: Reference architecture for Digital Telco

Digital Transformation

Experience and data

driven operation

Digital ecosystem

Enabling digital services

1

2

3

E2E

transformation

Big-bang

Partial

optimization Co-exist

Integrate

with

consolidated

backend

Add-on 1 2 4 3 Greenfield Step-wised

E2E digital

transformation

Order

hub/Federate

d offer catalog

Digital

ecosystem/

Digital service

Digital front

store

1. Start with the support of new services, business models, customer segments and experience to drive tangible business benefits.

2. The Greenfield and Add-on models are the preferred models initially when the current IT support system is old and lacks the digital DNA

3. Migrate the business instead of the system for quick ROI, TTM and risk reduction

Approach How to transform: Evolution paths for Digital transf.

How to transform: The strategic platform:

Business Enablement Systems (BES)

Match the industry trend:

Benefits:

Customer service from

offline to all online

Extend telecom network

service to digital service

Ecosystem: improve partner

management capacity and

open value chain

Data-driven: collection and

analytics based on big-data

technical

All online marketing, sales

and service

Anytime, anywhere

consistent customer

experience

Open digital ecosystem,

partner aggregation

Reduce TCO: Cloud based

+ Componentized

BES (Business Enablement Systems): The next generation business support system that supports operator digital

transformation, including the foundation suites, general solutions and full stack solutions.

Full Stack

Solutions

Cloud-based Infrastructure Technical Platform

Foundation Suite

General Solutions

Development & Maintenance

Customer Engagement and Experience Management Suite

Operation Management Suite

Analytics Suite

Orchestration Suite

e-Commerce Unified Contact Mgmt

Revenue Mgmt

CRM Partner

Aggregation

Analytics

Mobile BSS

e-Commerce & Multi-Channel Collaboration

Maintenance Tools

Deployment Tools

Development & Customization Tools

MBB Monetization

……

How to transform: Agile IT architecture for digital Telco

Partner Enablement Digital Customer Engagement

Smart integration

Operational backend

Analytics

Engage analytics (Commerce, Social)

Identity Management

Digital Contextual Engine

Customer Interaction Hub

Mobility Management

E-commerce

Business orchestrator Service BUS API management

Customer Management

Product Management

Order Management

Campaign Management

Resource Management

Billing Management

Convergent Charging

Business Insight

Big data Analytical Platform

Real-time Decision

Data Ingestion & Integration

Mediation Payment Platform

Partner on-boarding & Self Care

Partner revenue sharing

Fulfilment

Assurance

Network Inventory

OSS Sales

Management

Loyalty Management

Customer Service

Provision (mobile)

Revenue Assurance

Fraud Management

Customer & Product Insight

Bundle/Promotion/Campaign

Order Management

Document Management System

MVNO

Pre-post paid convergent billing

End to End Revenue Management

VAS Product Mgmt

Self-Service

Corporate Account

Real time Charging

Call Center BPO

Channel Mgmt

Integrated Billing Care

Convergent Billing

Call Center

Billing

Customer Care

KBS

Trouble Ticket

Business IT Transformation

End to End BSS solution

Managed Services

Total Experience Storefront

MVNE

Value Growth Solution

Unified Contact Management

Business Analytics (ISOP)

Agile IT

Digital

BES

Enabling IT

BSS 1.0 BSS 2.0

Supporting IT

Huawei BSS is serving around

1.4 billion subscribers

Revenue CAGR is15.4% in

straight 5 years

2001

Huawei BSS Evolves with Global Transformation Experience

Preguntas

?

GRACIAS!

Higinio Lobato

Contacto a: masternetcomp@netcomp.pe

Use case: Customer all online experience

Customer

Cindy

Login 1 Personal

Care 2 System

recommend

package

3 DIY

Orde

r

4 Payment 5

Track

order 6 Comment

&share 7

Cindy make the payment and track the order

Cindy make the comment and share to friends

Cindy Scans QR Customer care

Use case: Customer all online experience

Go to personal care to review package consumption, bill history and personal analysis

Cindy login Telco+ web portal’

System recommend a new package for Cindy

UpSell

Cindy purchase the new package and DIY the package

Sharing

Partner

Tom

login

Telco+

portal to

register

as a

company

1 Purchase

marketing

service and

cloud

service

2 Shop

Configuratio

n

3 Product

publish 4

5 Partner Operation

Use case: Partner on-boarding and operation

Use case: Partner on-boarding and operation Tom purchase marketing service and cloud service from operator and partners.

Tom is going to run a small business. He login Telco+ portal to register as a company.

Tom configure and decorate his shop using tools provided by operator and partners.

Tom review his shop’s operating situation and check customer management, settlement, campaign, promotion etc.

PC

Partner register

Partner operation Product publish

Shop configuration

Service purchase

Tom publish the product to the shops.

Expert customer 360 analysis

Customer experience monitoring

Customer 360 degree analysis

1 2

3

Use case: Customer experience monitoring

Customer

Manager

Use case: Customer experience monitoring

Operator can real time monitor customer experience analysis dashboard through the customer experience whole lifestyle. Operator can deep dive from the problem numbers to find out how to solve the problems

Operator can review Cindy’s 360 degree analysis and react by recommended offerings.

Operator can review Jack’s 360 degree analysis and react by recommended offerings.

PC

Customer experience monitoring

Customer 360 degree analysis

Expert customer 360 analysis