e2e digitalization: from enablement to exploitation · e2e digitalization: from enablement to...
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© 2017 TM Forum | 1
E2E Digitalization:
From Enablement to
Exploitation
José Manuel GascónDirector of Global IT Strategy & Transformation
Telefónica
© 2017 TM Forum | 2
Index
1. Context: What is E2E Digitalization
2. Enabling the capabilities
3. E2ED to accelerate Exploitation
© 2017 TM Forum | 3
E2E Digitalization is a complete business transformation with clear
objectives and an impact on both the customer and the company
E2E Digitalization objectives…
E2E Digitalization
Transform the way we interact with our
customers
Evolve our products and services
Change the way we work internally based on
automation and data
Omnichannel experienceReal Time interactions
Personalized Experience based on context
Commercial simplificationUnified management of products
Seamless and fast integration with 3rd parties
Process automationData based decisions
Smarter tools
TransformationEnablement
ExploitationIT Transformation
App4th Platform
© 2017 TM Forum | 4
Zero Back office and a right mix of channels
are the key aspirations of the digitalization
Redesigned customer oriented online channels
Digital marketing and promotions
Innovation in digital products and services
Automation of E2E processes
E2E Processes redesign:
▪ 0 errors
▪ Efficiency
▪ Effectiveness
DigitalCustomer
ExperienceFullAutoma-
tionnPlay
Self-management
Onmi-channel
Real
Time Personali-zation
Zero back-office Right mix of channels
Promotion of digital channels
Operating efficiency
Customer Experience consistency
Commercial effectiveness
Enriched Customer Experience
© 2017 TM Forum | 5
Customer Experience is supported by Business Processes that put together
Business and Technology, enabling efficient and coordinated transformation:
• Selling and billing domain includes activities related to Sale and Products and Services
Delivery to our customers.
• Customer care domain includes the processes when a customer contacts with us to
carry out consultations, request changes, report technical problems or report complaints
• Marketing domain includes the processes for the creation, launch and withdrawal of new
products and marketing campaigns management
• Retention and loyalty domain includes the activities that manage loyalty actions and
customer retention actions (including ceases)
Mar
keti
ng
Selling & Billing
Cu
stom
er C
are
& Se
rvicing
Retention & Loyalty
Telefónica End-to-End business process map is based on industry standards
The initial approach focuses on Customer Lifecycle processes as
the centre of the E2ED transformation
© 2017 TM Forum | 6
For each process, Digitalization aims to fulfill aspirations by Self-
assisted and Automated interactions and Customer Satisfaction
Self-assisted channels
Assisted channels
Non-automated operations
Automated operations
Non-automated Front and
Back-office
Self-assisted but Non-automated Back-office
Automated Front-office &
Zero Back-office
Self-assisted &
Zero Back-office
Zero back-office
Rig
ht
mix
of
cha
nn
els
(le
ve
l o
f s
elf
-ma
na
ge
me
nt)
% of interactions
performed in Self-Assisted
channels…
% of interactions without manual
processing (no backoffice or derivations)
Web
(level of automation)
App IVR USSD
… that can be either
DIGITAL CHANNELS or
TRADITIONAL SELF-
ASSISTED CHANNELS
Automated interaction: All the
steps in the process are automated
Manual interaction: There is at
least a manual step in the process
Customer
Satisfaction
Index
DigitalCustomer
Experience
© 2017 TM Forum | 7
Therefore characterization of each Customer lifecycle process is
performed against E2ED objectives to asses opportunities…
High Medium Low Size of bubble: volume of interactions
Customer satisfaction
ILLUSTRATIVELead to Order
Lead to Order to Payment
Usage to Payment
Request to Answer
Request to Change
Complaint to Solution
Problem to Solution
Selling & Billing
Customer Care & Servicing
Retention & Loyalty
Marketing
Termination to Confirmation
Insight to Loyalty
Concept to Market
Campaign to Lead
10050
50
0
Changes Request
Product Launch1
Termination
Marketing campaings
0
100
Zero back-office
Rig
ht
mix
of
cha
nn
els
(le
vel o
f se
lf-m
anag
em
en
t)
(level of automation)
Payments and Top ups
Information Request
Sales & ordering
Claims
Technical problems
Loyalty Management
© 2017 TM Forum | 8
… so each OB can be positioned on the E2ED matrix and set the
target area based on its context
▪ E2ED Digitalization plans aims moving OB positioning Up and right to:
▪ Increase efficiency▪ Improve Customer
Experience
▪ Target area depends on each OB context constrains:
▪ Prepaid – post paid mix▪ ARPU▪ Smartphone penetration▪ Banking or Credit card
penetration…
OBs position
OB Target position
area
100
50
00
100
Zero back-office
Rig
ht
mix
of
cha
nn
els
(le
vel o
f se
lf-m
anag
em
en
t)
(level of automation)
50
OB1
▪ OB positioning in terms of automation and mix of channels results form the aggregation of the transactions of all processes (% of volume of customer interactions performed self-assisted / automated)
© 2017 TM Forum | 9
So far the drill down of E2ED by process reveals two clusters of
processes with different characteristics and Digitalization actions
Two main challenges
▪ Processes with large volume of interactions performed recurrently by the customer and highly automated but with room for improvement in digital channels adoption▪ Consumption and balance
check▪ Top-ups
▪ Key Sales and Care processes with low level of automation causing poor customer experience and dissatisfaction on the moments of truth:▪ When purchasing▪ When having technical issues▪ When having complaints
ILLUSTRATIVEKey analysis to monitor
1
2
High Medium Low Size of bubble: volume of interactions
Customer satisfaction
10050
50
0
Changes Request
Product Launch1
Termination
Marketing campaigns
0
100
Zero back-office(level of automation)
Payments and Top ups
Information Request
1
Sales & ordering
Claims
Technical problems
Loyalty Management
2
Rig
ht
mix
of
cha
nn
els
(le
vel o
f se
lf-m
anag
em
en
t)
© 2017 TM Forum | 10
E2ED Transformation plan aims to transform processes through
4 type of impacts
Expected changes - appearance on the matrix
Automation of the interactions1
Achievement of the right mix of channel2
Improvement of customer experience3
Decrease on the volume of not desired interactions4
– Movement right along the axis
– Movement up along the axis
– Color of the bubble from red to yellow and green
– Reduction of the size of the bubbles
10070
50
0
Request to change
Complaint to solution
Problem to solution
Usage to payment
0
100
Zero back-office
Rig
ht
mix
of
cha
nn
els
(le
vel o
f se
lf-m
anag
em
en
t)
(level of automation)
Complaint to solution
Problem to solution
Usage to payment
Request to change
High Medium Low Size of bubble: volume of interactions
Customer satisfaction
© 2017 TM Forum | 11
The E2E Digitalization plan includes two types of transformation
initiatives: Enablement & Exploitation
Enablement
IT Initiatives
(i.e., enable and improve digital capabilities, process automation…)
We are enabling capabilities that are required to support
the customer expectations from a digital company
Smartphone as Channel
(i.e., building an enriched customer engagement )
Cognitive computing
(i.e., new functionalities that will empower customers)
Digital Telco
Experience
Adoption initiatives
(i.e., enforce adoption of self-assisted channels)
Commercial policies and culture initiatives
(i.e., empower customers, evolve commercial policies and culture)
Process & CJ transformation initiatives
i.e., process redesign to improve operations and customer experience…)
But capabilities enablement is not enough, we need to ensure that the business is actually using them, exploiting all the possibilities that they provide, and using them through the channels that we want.
Exploitation
+
© 2017 TM Forum | 12
Index
1. Context: What is E2E Digitalization
2. Enabling the capabilities
3. E2ED to accelerate Exploitation
© 2017 TM Forum | 13
Enablement is mainly carried out with Full Stack and Satellite projects …
Not Exhaustive
Order to Payment
Usage to Payment
Request to Answer
Lead to Order
Request to Change
Termination to Confirmation
Problem to Solution
Complaint to Solution
Insight to Loyalty
Campaign to Lead
Concept to Market
MARKET P & S LEAD ORDER USAGE PAYMENT SOLUTION TERMINATIONM
arke
tin
gC
ust
om
er C
are
&
Serv
icin
gR
eten
tio
n &
Lo
yalt
ySe
llin
g &
Bill
ing
Secu
rity
SOA
In
tegr
atio
n
Co
nve
rge
nt
Dat
aWar
e H
ou
se
Business processes join the business and IT perspective to make the best use of technology in order to:
▪ Offer a differential customer experience (e.g. real-time, self-assisted, omni-channel…)
▪ Optimize efficiency and drive business benefits
Telefónica End-to-End business process map is based on industry standards
Campaigns(RTD)
CommercialLogistics
Activation & fulfillment
B2B Sales Funnel
Commissions
Loyalty
E2E Diagnosis
Trouble Ticketing
WorkforceManagement
OSS
FULL STACK
Full Stack BSS + part of OSS coverage
© 2017 TM Forum | 14
Full Stack
In-House Full Stack
Ad-hoc tactical
transformation
Ecuador
5,2M
Perú
23,1M
Mexico
33,8M
Colombia
17,4M
Chile
12,4M
Argentina
27,0M
Uruguay
1,8MSpain
41,1M
Telco 3.0
Germany
45,5M
Brazil
97,3M
Venezuela
12,2M
CAM
15,2M
UK
24,6M
CAM includes:• Guatemala• El Salvador• Nicaragua• Panama• Costa Rica
… around the entire Telefonica footprint
© 2017 TM Forum | 15
All in all, transformation is already a reality in Telefonica
Full Stack/Core BSS Transformation
Transform core processes and systems with 6 OBs with
Business lines live
6 OBLive
2016
2 OBLive
2015
14 OBLive
2017
1 OBLive
2014
Online charging System
Consolidating in a Single OCS
2OB
heading to OCS2020 in 2017
Satellite projects
Completing the structural transformation
+ Commercial Logistics
+ B2B Presales (BI_EN)
+ E2E Diagnosis
+ Campaigns
+ Commissions
+ Security
+ ....
46%
% Customers in single OCS
+8pp
51% 59% 67%
20162015 20172014
69% 75%
2018SP 2019SP
0% 5% 12% 13%
42% 63% 73%% Customers migrated to Target Stack
’13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19
(81% of HispAm)
In House Under review
© 2017 TM Forum | 16
Index
1. Context: What is E2E Digitalization
2. Enabling the capabilities
3. E2ED to accelerate Exploitation
© 2017 TM Forum | 17
Exploitation is accelerated by defining a common E2E Digitalization
methodology and contextualized plans
▪ Huge and complex transformation requiring a coordinated effort across the company, involving Business, IT and Operations
▪ Multidisciplinary team involved from key areas leading Local and Global initiatives
E2E business processes
Customer journeys3 dimensions of impact
Customer experience
IT
Operations
E2E Digitalization Methodology
Input from key areas
CCDO Business CDOIT Control Strategy
© 2017 TM Forum | 18
The transformation plan should meet a set of global principles to be
effective…
Led by business
▪ Business decides why and when
▪ Business defines customer experience
▪ It enables transformation
Clear transformation owner
▪ Reporting directly to CEO (but not CIO / CTO)
▪ Connected with the leadership of the major structural programs
▪ Empowered to execute companywide transformation
Leverage of global assets and support
▪ Leveraging on Global assets like: customer processes, taxonomy of customer journeys, KPIs, etc
▪ Ensuring consistency with company strategy and global transformation initiatives
Interdisciplinary teams
▪ Core team centered on customer view:
CCDO Business CDO
IT Control Strategy
▪ Support on other areas when needed (e.g., network, operations)
© 2017 TM Forum | 19
… and some steps should be followed to succeed
E2ED Acceleration methodology design
Characterization of the OB –Process level
High-level characterization of OB’s business
Characterization of volumes and costs
E2E Digitalization characterization
Prioritization and analysis –Customer Journey level
SelectedProcessCustomerJourneyAnalysis
Customer Journey prioritization
Deep-dive on prioritized CJs to identify initiatives
Plan definition – Customer Journey level
Definition of initiatives per Customer Journey
Definition of roadmap with responsible
Impact – Customer Journey and process level
Impact per Customer Journey analysis(KPIs)
Impact per process analysis(KPIs)
Overview of final impact
© 2017 TM Forum | 20
The very first step of the plan definition, is the overall
characterization of the OB business and market context
- We contextualize the operation (customer volume,
type of business, sources of income, competitive
situation) and the macro variables of the country
(standard of living, penetration of smartpone, bank
and payment methods, etc.)
- For characterization, we also analyse the monthly
interactions (its activity with the volume of its
processes, with an overview of channels, customer
satisfaction and IT capabilities) and we do this by
segment, by business, by process and by channel,
assessed together with their current operational
performance in terms of percentage of automated
interactions
© 2017 TM Forum | 21
Illustrative case: Processes characterization
High
Medium Low
Customer satisfaction
Medium-LowSize: % total interactions
2 priority groups:
▪ Request to Answer, potential to get lots of savings by increasing self-management (i.e., ~3Mn assisted interactions /month1)
▪ Problem to Solution, low levels of satisfaction with potential to be addressed
▪ Lead to Order to Paymentstill room for automation (i.e., 32K orders/month with manual intervention1)
▪ Termination to Confirmation, self-assisted termination not available due to strategic decisions to be reviewed
© 2017 TM Forum | 22
Illustrative case: Transformation initiatives & Expected impact
100950
50
100
Automation(% automated interactions)
Self-assisted channels use (%)
0
Request to change
Complaint to solution
Usage to payment
Campaign to lead
15 96 97 98 99
Lead to order
Request to Answer
• Redesign Customer Experience in Online channels
• New Support Area• Improve Interactive Bill• Prioritize Call to Contact
Center based upon Customer’s Profile
Problem to Solution
• Multichannel Problem Tracking
• Self-Diagnosis • Technical Service
Chat
Remote diagnosis and solution,%
86
35 X 2,5
20172016
Lead to Order to Payment
• Automate contracting at online channels
• Optimize private area at online channels
• Redesign processes at store
Order requiring manual interventions, %
-42%0.11
20172016
0.19
Termination to Confirmation
• Enable Termination in Online channels
Self-assisted terminations%
37
0 +37 p.p.
2016 2017
Customer satisfaction index,pp
+6 p.p.CSI for this
process
High
Medium Low
Customer satisfaction
Medium-LowSize: % total interactions
© 2017 TM Forum | 23
The goal is to achieve the right channel mix
and the automation of operations…
Self-assistedchannels
Assistedchannels
Non-automated operations
Automated operations
Rig
ht
mix
of
chan
nel
s
Zero Back-Office
Non-automated operations
Target zone
A
B C
1 Positions of each OB in the E2E D matrix is not precise but a proxy of their current starting point
A
B
C
Incumbent Premium 4play OB in mature market
Attacker 3play OB in non-mature market
Big 3play OB in maturing market
© 2017 TM Forum | 24
… whose impact on both front and back are captured
through a common selected set of KPIs
▪ Operational KPIs measures
– Mix of channels to assess whether right combination of self-assisted and assisted channels is achieved
– Efficiency and effectiveness of front and back offices to boost the reduction of errors and manual interventions Back
Front
Self-assisted channelsAssisted channels
1
3
16
17
18
Time To Market
Time to Order Completion
% Orders Requiring Manual Interaction
% Stuck Orders
Real time activations/deactivations
19
20
21
22
Back office interventions per interaction
FTE Backoffice per customer
Billing Time
% Bills Requiring Manual Interaction
Bills Issued Incorrectly23
4 Ebilling rate
5 % of sales in self-assisted channels
7 % Contacts Received in self assisted channel
8 % Unique users using self assisted channels
9 % Prepaid recharges in self-assisted channels
13 % of claims per type
Front Office
2 Up/cross-selling Effectiveness
10 % Customers incidents reported more than once
11 Average Handling Time in Contact Center
12 First Call Resolution Rate
14 # Calls to Call Center per customer
15 Average Client Interaction Duration in PoS (Store)
6 Conversion rate in self-assessment channels
© 2017 TM Forum | 25
We are following a consistent governance model with leadership of
E2E Digitalization with 5 objectives to ensure traction and execution …
E2ED program
Objectives
Enabled by 2 elements
E2ED Team(global/local)
Governance
Ensure impact of E2ED plans in the OBs
▪ Support transformation plan definition and monitor impact
Standardize & Reuse
▪ Continuous “industrialization” of E2ED methodology and application at OBs
Learn & Leverage
▪ Gather and share best practices across OBs, and lessons learnt from more mature OBs
Promote Digital Culture
▪ Lead change of mindset and communication efforts across the organization
Boost transversalityand holistic approach
▪ Follow a holistic approach by including key areas leading other global or local initiatives
© 2017 TM Forum | 26
… balancing the coordination between global and local
▪ Ensure common approach and define main objectives of E2ED
▪ Orchestrate the inputs and views from the different areas involved
▪ Review the progress of the OBs and check its fit with the objectives of the E2ED
▪ Monitor the capture of impact at every OB
▪ Collect and share best practices
▪ Define the plan according to local needs and ensuring that it isactionable, coordinating E2ED with other ongoing initiatives
▪ Ensure the execution the plan in a timely manner, according the established roadmap
▪ Track initiatives and deliver impact
“Lead E2ED program”: Steer, Coordinate, Learn & Share
“Own the execution”: Delivery & Execution
Local
Global
© 2017 TM Forum | 27
© 2017 TM Forum | 28
KPI E2ED IT Enablement
Customer Lifecycle as startint point
▪ We are reviewing the Customer Experience around the whole Customer Lifecycle
Customer Journeys taxonomy and operating indicators
▪ A set of 57 journeys is defined and aligned with e2e Business Processes
▪ Priorization and follow-up of impact on efficiency and on customer is measured in operating KPIs and customer experience KPIs
▪ E2E processes are detailed at activity level, allowing to link digital capabilities and ultimately in the architecture
▪ The processes digitalization level is measured by E2ED Enablement KPI
Digital capabilities and E2ED IT Enablement KPI
Customer lifecycle E2E Processes
▪ Covering Customer centric processes but also the required enablers and support processes in front and back
Capabilities Architecture
… and is built around the Customer lifecycle processes and linked
with the Customer Journeys
© 2017 TM Forum | 29
1 Targeted impact for 2017
Easy and reachable access to information
Buy through any channel with real-time and full traceability
Data driven personalization
Unique and 360 Customer view
Personalized products and clear offers
Transparency & Trust
E2E Order management
Single catalog Integration with 3rd parties
Unified billing & invoicing
Real Time notifications
Unified & accessible bill
Real time, self-management and accuracy
Real time provisioningFlexible bundling
Real Time Decision
Before buying
When buying
When having problems
When using & paying
Retention & Loyalty
When having questions
Context-based interactions
Real time upgrades
Online credit & scoring
Omni-channel and mobile first / Standardization, automatization and full convergence
Auto diagnosis &remote resolution
▪ Prioritized development of digital products
▪ Digital promotions▪ Proactive
personalized offers
▪ Interactive bill▪ Online recharges
and add-ons
▪ Proactive retention
▪ Self-assisted termination
▪ Increase of self-assisted possible interactions
50%Real-time offers
increase
x3Online sales
increase
20%Calls
reduction
x2,5Self-technical
resolution
+40 ppSelf-assisted
termination
x4Online recharges
increase
▪ Proactive status of requirements
▪ Penalization of calls about available online info
Customer lifetime
What does customer want?
Enablement
Exploitation and targeted impact 2017
A set of capabilities must be enabled and exploited to achieve these
aspirations towards our customers…
© 2017 TM Forum | 30
… impacting also our internal operating model
Enablement
Auto diagnosis &remote resolution
Data driven personalization
E2E Order management
Single catalog Integration with 3rd
partiesReal time
provisioningFlexible bundling
Real Time Decision
Omni-channel and mobile first / Standardization, automatization and full convergence
Unified billing & invoicing
Real time upgrades
Online credit & scoring
Unique and 360 Customer view
Real Time notifications
20%Calls derived to
back-endreduction1
15%Bills issuedincorrectlyreduction1
40%Orders with manual
interventionreduction1
Processes efficiency and effecti-veness
Back-office optimization
▪ Simplification and automation of manual operations, enabling real-time experience and reducing errors, e.g.:
▪ Efficient and smooth human interventions using data to take more informed and agile decisions, e.g.:
▪ Optimize and redesign existing processes to leverage the new IT capabilities, e.g.:
▪ Design of new processes supporting digital interactions / channels, e.g.:
Before buying
When buying
When having problems
When using& paying
Retention & Loyalty
When having questions
80%Automated
technical dispatchesincrease1
Integrated stock availability
Billing info standardization
Automatic scheduling of technical dispatching orders
Route tracking & optimization
Route tracking & optimization
Online chat support/Click to Call processes
Commercial processes
Commissioning model
Exploitation and targeted impact 2017
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