First Business & IT Summit with TM Forum Latin-America

Transcription

1 inform innovate accelerate optimize First Business & IT Summit with TM Forum Latin-America May 14, 2015, Lima Alfred Anaya 2015 TM Forum 1

2 Agenda Key Challenges Facing Businesses Today Overview Leveraging Standards, Frameworks, Tools and Skills The TM Forum and Frameworx Introduction Digital Business Transformation Serving the Digital Customer Introducing the ZOOM Program Zero-touch Operations, Orchestration & Management Case Studies and Benchmarks 2015 TM Forum 2

3 inform innovate accelerate optimize Key Challenges Facing Businesses Today Overview 2015 TM Forum 3

4 Key Challenges Facing Businesses Today In this 21 st century the new constant is the acceleration of change! encompassed by the challenge of Digital Business Transformation Digital Business Transformation is a strategic journey that requires a fundamental rethink in culture, customer centricity, innovation, operations and IT. How an Enterprise effects Transformation is becoming a Strategic Strength (or a Strategic Weakness) where real business opportunities can be gained or real business problems may result. It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change. Charles Darwin 2015 TM Forum 4

5 The seven Digital Forces that are changing business dynamics 1. Price & Margin o o o 2. Emerging Competitors o o o Near-perfect transparency Easy to compare prices Drives commoditization Easily accessible ecosystems IaaS and PaaS remove barriers Selecting lucrative segments 3. Winner Takes All o o Digital offers on global scale Doesn t favor second place players Source: McKinsey, TM Forum 4. Death of the Value Chain o o o o Disaggregating value chains Open digital ecosystems 5. Talent Mismatch o Many roles will be automated Digital competence gap 6. Converging Supply & Demand o o Globalization drives similarities in user requirements 7. Business Model Innovation Ecosystem evolution Old markets are challenged 2015 TM Forum 5

6 Challenges & Capabilities Overcoming inertia Business Needs & Challenges Develop strategies for digital transformation Plan and execute transformation efficiently Remain ready for new ideas and changing requirements Required Capabilities Deep Industry knowledge and innovative ideas Leveraging standards, frameworks, tools and skills Flexible Business Architecture Business Results Clear vision reduces time-to-market for innovation Right-first-time reduces wasted effort; less cost, more speed Quick response to new challenges and opportunities 2015 TM Forum 6

7 inform innovate accelerate optimize Leveraging Standards, Frameworks, Tools and Skills 2015 TM Forum 7

8 Most Relevant Standards, Frameworks and Tools 2015 TM Forum 8

9 Transformation The Enterprise Architecture Way Common Vocabulary & Tools Foundational Structure Standards & Compliant Products Design Method 2015 TM Forum 9

10 Traditional Enterprise Architecture (EA) Domains Business Architecture How the enterprise activities are organized to achieve its objectives Information Systems Architecture Application Architecture Data Architecture How Information Systems (Applications and Data) support the objectives of the business Technology Architecture How Technology fits together support the objectives of the business 2015 TM Forum 10

11 Transversal EA Domains Governance Integration Security Information 2015 TM Forum 11

12 Static Structure + Dynamic Lifecycle 2015 TM Forum 12

13 The Requirements Paradigm in EA Capabilities Requirements are the driving force throughout the enterprise lifecycle; from the definition of Strategic objectives, all the way to the enumeration of Technical requirements. ArchiTelco 2015 TM Forum 13

14 Zooming into Enterprise Architecture ArchiTelco 2015 TM Forum 14

15 e.g. Strategic Programs Source: CMMI SCAMPI Distilled Extract from Accenture s former Business Integration Methodology (BIM) Extract from TM Forum Strategic Programs TM Forum 15

16 Coherence Across EA Domains is Essential! Data architecture Technology architecture 2015 TM Forum 16

17 The Most Prominent Enterprise Architecture Frameworks Common Vocabulary & Tools Foundational Structure Standards & Compliant Products Design Method 2015 TM Forum 17

18 The Zachman Framework 2015 TM Forum 18

19 Federal Enterprise Architecture Framework (FEAF) 2015 TM Forum 19

20 The Open Group Architecture Framework (TOGAF) TOGAF is a framework - a detailed method and a set of supporting tools - for developing an enterprise architecture TM Forum 20

21 Frameworx Business Process Framework (etom) Information Framework (SID) Application Framework (TAM) Integration Framework Architecture and Governance Standardized Interfaces 2015 TM Forum 21

22 Enterprise Architecture in Simple Words Put Simply, Enterprise Architecture (EA) is the sheer use of the architecture paradigm applied to the Enterprise. By definition every Enterprise has an EA whether is has been documented or not EA is not only about the Alignment of The Business and IT, but also and perhaps more about the Alignment of Strategy to Execution. Implementing EA is how an Enterprise deals with Transformation by knowing the Current State and mastering the evolution towards a desired Future State TM Forum 22

23 A Few Words on Standards 2015 TM Forum 23

24 Classification of Standards De Facto Industry and Market Standards Public Specifications (PS), Commissioned Standards, Ad-hoc Standards Consensus Standards, De jure Standards, National or International Standards Regulations De Facto standards are products or policies that ultimately reach industry or market standard status due to a wide acceptance of users or adopters across the industry or market; examples of these can be: Microsoft Office, Coca-Cola, Facebook, Skype, iphone, etc and many other products which conquer the market be getting an overwhelming market share and quite often achieve elimination of any competitor product. Commissioned standards and PSs are developed and commissioned by a given sponsor, subject to stakeholders consultation and do not require full consensus. These differences between a PS and formal consensus Standards enable PSs to be developed and published faster in order to satisfy short term business needs particularly in areas of technology, innovation or service industries. etom became an International standard as ITU-T M Another example is ITIL v3 which became ISO De jure or Consensus standards are standards that have been approved by standard bodies, professional organizations, industry groups, a government body, or other groups. All formal standards are developed with a period of public enquiry and full consultation. As a result, standards represent a consensus on current best practice. Regulations can take many forms: legal restrictions promulgated or mandated by a government authority, self-regulation by an industry such as through a trade association, social regulation (e.g. norms), co-regulation and market regulation. One can consider regulation as actions of conduct imposing sanctions (such as a fine). Regulations can be seen as implementation artifacts of policy statements. Common examples of regulation include controls on market entries, prices, wages, Development approvals, pollution effects, etc. Examples: Coca-Cola, MS-Office, iphone, Nuts, Facebook, Skype, etc. Examples: TMF, TOGAF, ITIL, SID, CoBIT, Zachman, etc. Examples: ITU-T, ISO, ETSI, IEEE, IETF, IEC, ANSI, etc. Examples: Sarbanes-Oxley, Local Loop Unbundling, Number Portability, Roaming, Credit Rating (banks), Energy Policy Act (Utilities), Emission Standards (Car manufacturing), etc TM Forum 24

25 Standards in the (Digital) Organization 2015 TM Forum 25

26 ITIL The IT Service Management Perspective ITIL is the most widely accepted approach to IT service management in the world. ITIL can help individuals and organizations use IT to realize business change, transformation and growth. Source: Axelos, Ltd 2015 TM Forum 26

27 Service Different Perspectives The ITIL perspective Product Service Resource The CSP perspective Business Process Layer The SOA perspective Provider Consumer The EA perspective Technology Layer ArchiTelco 2015 TM Forum 27

28 COBIT The Enterprise IT Governance Perspective COBIT is the leading framework for the governance and management of enterprise IT. It provides a set of methods and best practices to improve performance while creating value and reducing risk. Source: COBIT 5, 2012 ISACA All rights reserved TM Forum 28

29 inform innovate accelerate optimize The TM Forum and Frameworx Introduction 2015 TM Forum 29

30 The TM Forum Who We Are TM Forum is a non-profit global industry association which brings together the collective genius of our diverse members to collaborate to drive successful digital business transformation 90,000+ Member Professionals 950+ Member Companies Including 27 of 30 of the World s Largest CSPs Global Coverage 2015 TM Forum 30

31 The Forum's Role Connecting the Digital Ecosystem Cross-Industry Enterprises Technology & SIs Service Providers 2015 TM Forum 31

32 Core Strategic Programs The Forum guides our members on their digital transformation journey via three strategic programs Agile Business & IT SDN/NFV & Zero-Touch Ops (ZOOM) Digital Transformation Frameworx for Digital Customer Engagement Omni-Channel Experience Privacy & Security Metrics & Data Analytics Open Digital Ecosystem Internet of Things (IoT) Open Digital APIs & Management Rapid Partner Onboarding 2015 TM Forum 32

33 What We Offer to Our Members Collaboration Programs and Communities Developing, showcasing, and promoting adoption of innovative new tools and digital standards Best Practices, Standards and Conformance Community-driven Frameworx best practices and Conformance programs Research and Content Thought-provoking research and content offering practical guidance to members Conferences and Workshops Connecting executives for collaboration, networking and business development opportunities Training, Certification, and Coaching Hands-on training, individual certification and coaching 2015 TM Forum 33

34 Frameworx provides a comprehensive suite of industry standard frameworks and best practices that help digital businesses to maximize agility, efficiency and margin. Frameworx provides a blueprint for a service-oriented, highly automated and efficient approach to complex operations. TM Forum Frameworx, What it is Frameworx helps companies to transform, reducing the cost and risk of transformation programs. Over 90% of the world s largest service providers use Frameworx 2015 TM Forum 34

35 The 4 Core Frameworks Business Process Framework (etom) Information Framework (SID) Application Framework (TAM) Integration Framework Architecture and Governance Standardized Interfaces 2015 TM Forum 35

36 Why use Frameworx? Reduce CapEx & OpEx cost Reduce transformation risk & cost Radically simplify operations Improve customer satisfaction Enable innovation through agility Adopt the industry standard 2015 TM Forum 36

37 The Frameworx Ecosystem Frameworx is supported by a rich ecosystem of commercial products, solutions and professionals with deep expertise. More than 80 products and solutions from over 30 leading suppliers have completed Frameworx Conformance Certification Over 4,500 professionals worldwide have received Framework training and knowledge certification We have gathered more than 100 case studies of successful service provider implementations of Frameworx 2015 TM Forum 37

38 Business Process Framework (etom) Comprehensive, industry-agreed, multi-layered model of the key business processes required to run an efficient, effective and agile enterprise Adopted by 90%+ of world s communications service providers; in use by many other industries processes cataloged and defined in the model 2015 TM Forum 38

39 Business Process Framework (etom) Level 1 and 2 Processes 2015 TM Forum 39

40 Information Framework (SID) Provides standard definitions for all the information that flows through the enterprise and between service providers and their business partners. Widely adopted by communications service providers around the world and in many other industries information entities defined in the model 2015 TM Forum 40

41 Information Framework (SID) Top Level View of Layered Model 2015 TM Forum 41

42 Application Framework (TAM) Provides a systems map which captures how business processes are implemented in deployable, recognizable applications Reflects the way systems and applications are actually implemented and procured in the market 370+ Applications defined in the model 2015 TM Forum 42

43 Application Framework (TAM) Layered Application Model Level TM Forum 43

44 Integration Framework Defines how to use Frameworx to design, architect and implement your enterprise Provides a modern, service-oriented integration approach using business services Contains guides for architecture and governance Provides a large set of standardized interfaces and tooling to create additional interfaces 2015 TM Forum 44

45 Integration Framework Architecture, Best Practice and Governance Metamodel Software Enabled Services Architecture Digital Services Reference Architecture Business Services Guide Frameworx Governance Cross Framework Mappings Frameworx Tools 3D and HTML Browsable Models 2015 TM Forum 45

46 Integration Framework Standardized Interfaces Operations Management Interfaces Inventory Security Fault Service Problem Policy Performance REST APIs Simple Management Product Ordering Catalog Management Service Level Agreement Trouble Ticketing Operations Management Interface Development Tools Interface Suites IPDR OSS/J MTOSI MTNM 2015 TM Forum 46

47 Business Metrics Provide a top-down, industry-agreed view of the standard, quantifiable business metrics a service provider requires to run its business Metrics cover 3 key areas to create a Balanced Scorecard - Revenue and margin - Customer experience - Operational efficiency Map to Business Process and Information Frameworks Used in Industry Benchmarks in partnership with McKinsey 2015 TM Forum 47

48 Metrics Repository Full Set of Metrics Defined in TM Forum Customer Experience Management Metrics Frameworx Metrics Specification Repository Business Metrics Performance Management Metrics Cable Metrics Revenue Assurance Metrics 2015 TM Forum 48

49 Frameworx Best Practices Practical Guides to Support Implementation Best Practices Digital Services Customer Experience Management Security and Privacy Revenue Management Cloud and Infrastructure Management Big Data/Analytics Product Lifecycle Management Partnership Development 2015 TM Forum 49

50 Career Certification 2015 TM Forum 50

51 inform innovate accelerate optimize Digital Business Transformation Serving the Digital Customer 2015 TM Forum 51

52 Digital Business Transformation The digital world is about connecting or digitizing anything and everything. Successful companies are Customer Centric* companies in the digital world. Digital business transformation is the journey to become an Agile* business leveraging culture, customer centricity, innovation, operations and IT. Digital transformation aims to bring automation in all operations areas including Lead to Cash, Time to Market and Trouble to Resolve. * Key concepts in Digital Transformation 2015 TM Forum 52

53 Digital Transformation Lifecycle Many transformation projects run in a functional silo such as focusing only on IT. Improved experience Insights Succeeding with digital transformation demands rethinking business operations end-to-end. Systems simplicity Clarity Frameworx underpins successful end-to-end transformation. Process simplicity Product simplicity 2015 TM Forum 53

54 Market trends driving Customer Centricity Customer Experience Management also helps achieve Customer Centricity 2015 TM Forum 54

55 The Evolution of Customer Experience Management (CEM) 2015 TM Forum 55

56 3-6 months Agile Collaboration R&D Accelerator Real world problems Collaborative prototype solution Derived standards 2015 TM Forum 56

57 TM Forum Best Practices Customer Experience Management Guidebook: Approach and Tools Overview Guidance for Customer Experience Management in a Service Provider Maturity Model 6 Dimensions across the enterprise Lifecycle Definitions of stages in customer lifecycle 475+ Metrics Measure every stage of the customer lifecycle 2015 TM Forum 57

58 TM Forum Maturity Model 2015 TM Forum 58

59 TM Forum Lifecycle Model Sample Customer Journey Buying Using Sharing Be Aware Interact Choose Consume Manage Pay Renew Recomm end Leave Observe Learn React Request Detail Reserve Select Product/ Service Place Order Receive Use Review Usage Evaluate Value Manage Profile/Service Receive Help Receive Resolution Receive Notification Verify or dispute Topup/ Pay Enhance Selection Renew contract Refer product/service Gain loyalty Feedback Discontinue Channels Web, Device, Call Center / Care Center Store USSD/SMS/Messaging Social Field Service / Field Sales 2015 TM Forum 59

60 CEM Metrics 200 Metrics Per- Customer Perenterprise customer 90 Metrics Functional 180 Metrics 2015 TM Forum 60

61 What is Big Data Analytics? Identification, design and deployment of strategies, processes, skills, systems and data that can provide actionable intelligence resulting in business value Volume Variety VALUE Velocity 2015 TM Forum 61

62 Extracting Value Insight + Action = Value Example: Real Time Churn Prevention Insight Action Value Subscriber Dissatisfaction Retention Campaign Satisfied Customer 2015 TM Forum 62

63 Guidebook Elements 2015 TM Forum 63

64 Big Data Analytics Reference Model CAPEX Reduction Applications OPEX Reduction Applications CEM Applications Revenue Generating Applications Other Applications Data Repository Structured Data, Unstructured Data, Semistructured Data Batch Data Analysis Data Analysis Streaming Data Modeling, Complex Metrics, Event Reports Processing, Alerts & Triggers, Reports Data Management Transformation, Correlation, Enrichment, Manipulation, Retention Data Ingestion Integration, Import, Format Data Governance Privacy, Security, and Compliance Data Sources Network, OSS, BSS, Social Networks, 2015 TM Forum 64

65 Use Case ID S-MOM-T1 S-MOM-T2 S-MOM-T3 S-MOM-T4 S-MOM-T5 S-MOM-T6 S-MOM-T7 S-MOM-T8 S-MOM-T9 S-MOM-O1 S-MOM-O2 S-MOM-O3 S-MOM-O4 Big Data Analytics Use Cases Use Case Use Case ID Use Case Real-time Personalized Offers while Browsing O-CRM-PC7 Roaming Customer Onboarding Real-time Personalized Offers during Checkout O-CRM-CR1 Churn Risk Prediction for Customer Retention Real-time Personalized Offers during a Live Interaction O-CRM-CR2 Churn Motivation Prediction for Customer Retention Real-time Personalized Offers Based on Location Real-time Personalized Offers Based on Usage O-CRM-CR3 Personalized Offers for Customer Retention Real-time Personalized Offers Based on Device Intelligent Advertising Based on Browsing History O-CRM-CR4 Retention Offer Acceptance Propensity Analytics Stimulating Prepaid to Postpaid Conversion O-RMO1 Network Fault Location and Recovery Enticing Usage from Roaming Customers O-RMO2 Real-time Value-based Congestion Management Product Definition and Development Product Introduction Analytics O-RMO3 Real-Time Customer Offload Management Product Performance Optimization Purchase Propensity Analytics for Enhanced Targeting O-RMO4 Proactive Experience Driven Network Repair S-SDM1 S-SDM2 S-RDM1 S-RDM2 S-RDM3 O-CRM-CC1 O-CRM-CC2 O-CRM-CC3 O-CRM-PC1 O-CRM-PC2 O-CRM-PC3 O-CRM-PC4 O-CRM-PC5 O-CRM-PC6 CSP Data Monetization MVNO Data Monetization Value-based Network Planning New Enterprise Order Impact Analysis Policy-based Capacity Management Personalization of Real-Time Interaction in Assisted Care Increase Effectiveness of Customer Self Service Improving Assisted Care with Network Experience Analytics Proactive Care Right Proactive Care Channel and Time Proactive Care Based on Poor Care Experience Proactive Care During or After Network Fault Proactive Care Based on Absence of Usage Proactive Care Based on Network Experience Analytics O-SPRM1 O-FUL-O1 O-FUL-O2 O-FUL-I1 O-FUL-I2 O-FUL-I3 O-BRM1 O-BRM2 E-SEP1 E-EEM1 E-FAM1 Partner Value Optimization Increasing Conversion in the Ordering Process Reduction of Errors in the Ordering Process Optimization of Customer Self-Installation Field Technician Assignment Optimization Field Technician Arrival Optimization Revenue Assurance Personalized Collections Treatment Plan Market Watch Business Process Optimization Fraud Management 2015 TM Forum 65

66 Key Drivers Big Data Analytics Increase Revenue Increase Customer Satisfaction Reduce Costs Personalized Upsell Personalized Advertising Improve Product Success Data Monetization Personalized Proactive Care Increase Effectiveness of Self-Service Care Optimize Network Performance Churn Prediction Optimize Capital Investments Revenue Assurance Fraud Management Business Process Optimization 2015 TM Forum 66

67 What CSPs are saying Service providers preside over a goldmine of data, and big data analytics is becoming an important asset and competence. Yet how to fully extract its value is still a challenge. We are pleased to support the TM Forum's Big Data Guidebook and Catalyst project, which will help us to make a leap forward in extracting the value of big data analytics. - Lifen Zhao, China Mobile 2015 TM Forum 67

68 inform innovate accelerate optimize Introducing the ZOOM Program Zero-touch Operations, Orchestration & Management 2015 TM Forum 68

69 Virtualization of Everything Why it matters? Service Providers need to identify the roles they can play in the evolving digital fabric To support this the Forum has defined a vision for the new hybrid (physical and virtualized) operations environment This vision drives a modular IT systems architecture supporting future operations practices, completely rethinking current business and operations models Our goal is to make sure that service providers can move at the speed of the rest of the digital ecosystem TM Forum 69

70 The NFV Concept A means to make the network more flexible and simple by minimising dependence on HW constraints v Traditional Network Model: APPLIANCE APPROACH DPI Firewall BRAS CG-NAT GGSN/SGSN Session Border Controller PE Router Network Functions are based on specific HW&SW One physical node per role v Virtualised Network Model: VIRTUAL APPLIANCE APPROACH DPI CG-NAT GGSN/ BRAS SGSN Firewall PE Router VIRTUAL APPLIANCES ORCHESTRATION, AUTOMATION & REMOTE INSTALL STANDARD HIGH VOLUME SERVERS Network Functions are SW-based over well-known HW Multiple roles over same HW Source: Adapted from D. Lopez Telefonica I+D, NFV 2015 TM Forum 70

71 SDN/NFV is an enabler for Operations Transformation and Innovation 1 Service Agility o o o Access to new digital ecosystems Multi-sided business models TTM in seconds not in months Months Seconds 2 Transform OPEX o o o The network becomes an IT resource End to end service management Zero-touch orchestrated flows NetOps DevOps 3 Transform CAPEX o o Move to low cost standard IT fabric Simplification at all layers Telco grade IT fabric 2015 TM Forum 71

72 inform innovate accelerate optimize Case Studies 2015 TM Forum 72

73 Bottom Line Results Members Helping Members Transform Largest subsidiary GuangDong Mobile expects $3.3 million in CAPEX savings Moved from the bottom quartile to #1 in customer service satisfaction among SMBs in Australia Measured its operator customers achieving, on average, 22% in fixed, up-front operational expenditure savings Reduced revenue leakage by an estimated 5% of total revenues through synchronized data between CRM, billing and inventory 2015 TM Forum 73

74 Case Study: AT&T AT&T Service Realization Excellence Platform Business Challenge Major transformation of AT&T s enterprise-wide operations support environment to improve speed, efficiency and productivity internally, and time to market and quality of service for customers Role of Frameworx Application Framework used to rationalize thousands of systems into standard enterprise architecture deliverables Business Process Framework used to drive collaboration between IT and the business, and + = reduce confusion about the impact of new business models and target operating models on business operations Information Framework used to understand linkage between shared services, APIs and data sources Results $95m CapEx savings $64m OpEx savings 21% reduction in time-to-market (within 3 years) Winner of Forum s Operational Excellence Award, 2014 Foundation for future transformation within AT&T 2015 TM Forum 74

75 Case Study: Telefónica Telefónica Argentina s Radical Digital Transformation Business Challenge Telefónica Argentina (leading multi-play CSP in Argentina with over 23m subscribers), needed to radically transform IT and operations in order to deliver on its vision to become LATAM s leading digital telco. In just 12 months, a greenfield, full IT stack replacement was achieved. Role of Frameworx Business process framework instrumental in eliminating redundancies, providing consistency across channels, operational convergence across lines of business, improving time-tomarket and customer experience + = Information Framework was instrumental for achieving a 360 degree view of all Customer Information Data Application Framework used as the reference model for defining a simplified set of applications and guiding the procurement process Results 30% improvement in IT efficiency (CapEx+OpEx/Revenue ) Time-to-market reduced from months to weeks Multi-channel capabilities and advanced click and collect services deployed Single, 360 degree view of the customer Call center load reduced by more than 25% Now the Global IT 2015 TM Forum 75 Blueprint for Telefónica

76 Case Study: Telstra Telstra s Next Generation IT Transformation Business Challenge Dramatic simplification of IT environment to deliver first class customer experience; reduce operating costs and provide the platform for new service growth. Role of Frameworx Business Process Framework used to define project scope and business interactions Information Framework used to define data ownership + = Application Framework used to map applications to business processes Integration Framework business services used to enable mediation between legacy and new systems Results IT operating expenses reduced by ~ A$400M New IT system delivered 2 months earlier than expected 40% reduction in data center OpEx Customer service able to handle 5x the volume at the same cost 2015 TM Forum 76

77 Case Study: China Mobile Creating the platform for digital business Business Challenge Overcome silos across business units and channels, achieving dramatic simplification of business and IT environment to deliver first class customer experience; provide the platform for new service growth; reduce operating costs and adapt to changing consumer behavior. Role of Frameworx Business Process Framework used to defined single E2E process flows for multiple products and channels Information Framework + = used to create enterprise-wide information framework and to deliver 360- degree view of customer Application Framework used to rationalize multiple customer-facing systems Results Customer touch point process rationalization resulted in savings of $120m/year Increase in revenue of $40m/year Lead to order process shortened by 30% Accuracy of customer data risen from ~93% to 99.99% 2015 TM Forum 77

78 inform innovate accelerate optimize Q&A 2015 TM Forum 78

79 inform innovate accelerate optimize Thank you 2015 TM Forum 79