building a winning operating model for digital · digital target operating model is a functional...

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NILADRI DUTTA

Building a winning Operating Model for Digital


Digital in 3 different contexts

• Business Agility

• Rapid Time to Market

• Seamless Product / service offering across channels

• Customer Centricity

• Enhanced process automation

• Data Analytics (Big Data)

• Infrastructure Optimization (Cloud)

• Solution enablement to support products and customer centricity (IoT/Digital services)

• Help engage in a variety of Business Models

• Service enablement around Digital

• Personalized interaction

• Consistent Omni channel Digital Experience

• Automated assistance

• Real-time insights & information (including notification & alerts)

• Real time promotions and incentives

• Seamless experience

TELECOMSOLUTION PROVIDER

CUSTOMER


Transition from ‘CSP’ to ‘DSP’

D(SP): Digitalizing Operations

Convergence , Business Process Automation , Business Agility, Data-Centric Architecture

Error Reduction , Single Customer Database, Customer Understanding, Omni-Channel Experience

(DS)P: providing new digital services

New generation of services, often called ‘digital services’., M2M/IoT related services, serving as software platforms for other businesses in B2B2C (or more complex) value chains.

vNGN: Next Generation network(cost efficiency, seamless services)

a new, agile network to support the new, agile business, Virtualization of networks, new digital service delivery platforms (DSDPs).

A traditional CSPs must take three steps on the journey to becoming a DSP

A service provider with ‘digitized’

operations

New product portfolio with Digital

services

CSP > DSP> Enablers =

D(SP) + DS(P)

vNGN

Supported by agile virtualized next gen

network


Operating Model ‘Direct’ vs ‘Indirect’ impacts

The Digital Telco will essentially focus on re-invigorating the Digital Channels, re-looking at their products and

services and finally the overall process automation, thus changing the very face of the service provider.

• Self-service, online and mobile first

• Omni-channel customer experience

• Smart, personalized and proactive interactions through Big Data & Analytics

• Reduced cost of interactions

• New digital services to fight competition from OTTs

• Platform business model for 3rd party services

• Service providers for the digital society: IoT, Cloud

• Example companies which will integrate with Telco in education and health care services to deliver value (Practo, Byjus). These will be the new CORE services going forward.

• Process and IT transformation for simple, fast and cost effective operations

• IT and Network infrastructure optimization through Cloud

• Lean, agile and adaptable organizations supported by new skills

Digital Channels Digital Services Digital Enterprise DNA


The Operating Model relevance in context of Digital

CORE DIGITAL STRATEGY

BUSINESS & ENGAGEMENT MODEL

OPERATING MODEL –

Digital Tx.

Digital Channels

Digital Services

Digital Enterprise DNA

Digital Target Operating Model is a

functional blueprint or a framework

driven approach which helps to tag

business, technology and operations

in a single view for C-levels within

the operator.

KEY BENEFITS & CRITICAL SUCCESSFUL FACTORS :1. An unique blueprint to engage

with C-levels2. Innovative business

engagement model. 3. Rapid engagement with Digital

eco-system.4. A well defined framework for

transformation project delivery5. An e2e perspective (Strategic &

Tactical view)


Target Operating Model ‘design principles’


Deriving an Operating Model

Identify Required Strategic Competitive Capabilities

Identify key OperationalDrivers & Goals and KPI’s and Measures

Describe Target key Digital

Capabilities To Achieve

Objectives, risks, goals, drivers

Design Digital lifecycles

Design Processes To Enable Capabilities

Design Systems To Drive Processes

Enable Organization & People

Define Business Vision & Engagement Model

There are multiple ways of defining and deriving an Operating Model. Often its dependent on the function or the organization function and its strategic or tactical derivatives. Mostly a ‘domain’ or a ‘dimension’ lead approach is being followed.


Identifying the ‘dimensions’ of an Operating Model

The overall defined dimensions are all driven by the core Digital strategy which is being adopted by the Telco. Often they can be product

lead or customer lead depending on market dynamics and demand.

Customer Experience

Partner Eco-System

Business Processes & Use Cases

Performance Metrics

Digital Architecture, Digital Risk & Cyber

People & Skills

Key Assets

Innovation organisation

Operating Model

Dimension

Enhance and maintain insight of the Digital Telco customer touch points across all functional areas to ensure a consistent and distinctive customer experience

Seek outsourcing of non core activities to technology or service delivery partners to enable rapid enhancement of operations scale while maintaining quality

Formalise key business processes which have a significant business/customer impact and/or strong interdependencies across operations domains

Measure business and operational performance of the company based on a company wide performance management framework, data warehouse and system

Adopt Reuse before Buy before Build strategy based on componentized IT architecture separating distinctive Skype applications from generic business functionality

Institutionalize a training process to adapt to skill & capability requirements in pace with the growth of the company based on individual assessments

Concentrate activities with significant dependencies across functional area in operations on the same physical location to foster informal communication and alignment

Pursue formalized organization structure with appropriate ownership roles and responsibilities for service delivery activities combined with more autonomous teams for business development activities

Guiding principles


Partner ecosystem Digital strategy

Customer Experience Digital experience

Digital Ecosystem Digital

Customer Journeys

User Experience

Digital PartnerModel

Partner KPI SLA Model

Cloud Service Delivery

Partner Organization

Corporate Customer

Business Model

OmnichannelUX

Digital Experience

Persona & Targets

Segmentation

Business Excellence (BSC)

KPIHierarchy

Business & investment

Case

Service Quality

Digital Lifestyle

Mapping the dimensions in defining the Operating Model


Business processes and use cases Innovation organization

Digital Enterprise Architecture , Digital Risk & Compliance People and skills

Customer Lifecycle

Management

Agile Service Design & DevOps

Functional Digital

Architecture Digital

Mindset & Skills

PLM Processes

SLM Processes

ProductU/C

Network &IT U/C

Organization Design

Team Performance

Digital Governance

Roles / Responsibilities

System Use Case

Common Data Information

Models

Digital Risk Cyber Security & Digital

Infra

Change Leadership

Manage Talent & Competence

Manage Change

KnowledgeBusiness Rules

Mapping the dimensions in defining the Operating Model


In line with Technology vendors enabling Digital transformation for Global TelcosThe relevance of Digital Operating Model to vendors

Benefits from a product/solutions stand point

• Creates an e2e visibility and perspective of the overall maturity and acceptance of Digital technologies.

• Helps to understand gaps and potential opportunities for potential solutions around the next gen OSS/BSS landscape, thus creating a better alignment of business with technology.

• Takes a view of Digital both from Networks and IT stand point which is a critical play for leading Telcos when it comes to convergence & Digital transformation.

Benefits from a services standpoint

• Digital transformation best practice blueprint and framework with specific assets and artefacts during project delivery.

• Standardization of developed assets resulting in an unique blend of business and technology understanding.

• Project roll out faster and easier and more cost effective due to introduction of this framework blueprint.

• Can make any entity an e2e transformation trusted Partner in SW lead Digital transformation engagements.


Opportunity ‘Cost’ vs ‘Benefit’ for Operating Model in Digital

COST & OPPORTUNITY for Telco

• A typical operating model exercise involves an estimate of 3-4 months of investment from a Telco/service provider standpoint, depending on the focus organization and target stakeholders involved.

• The end game from an Enterprise stand point is the Functional Blueprint which CxOs can refer while looking at on-going or future transformation programs.

• A full detailed exercise for any specific customer (Group vs op-co) may be conducted to better understand & test the maturity and acceptability of these operating models and how well they can be implemented .

• Participation of both Business & IT functions are required for deriving for successful roll out of the operating model.

BENEFIT for Telco

• An unique framework for C-levels to match business , technology and operations

• A typical target of achieving a minimum of 25% reduction in cost and drive efficiency for newer business processes roll out and realization of the same in the Digital eco-system.

• Significant reduction of IT operational costs due to increase in capability identification & automation.

• A significantly Agile digital Telco ready to deliver next-gen services seamlessly.

• Am efficient and faster roll out of all relevant Technology projects in the context of Digital telco.


▪ ‘As-Is’ pain points

▪ Current state assessment &

Heat Maps

▪ Impact Analysis &

Quantification

▪ Service Management

▪ Platform readiness assessment

▪ Business rule identification &

assessment

▪ Design Process & Architecture

blueprint along with new business

rules.

▪ Digital Platform enablement and

realization

▪ Digital Risk & Cyber Security

▪ Solution Design – Digital tx.

▪ Target Solution Prototype

▪ Agile Project execution

▪ Dev Ops & Micro Services

▪ Business Value Realization

Relevance of Operating Model – ‘The Big picture’

Integrated framework & Platform for project

execution

Target state: Transformation

“Outcome”

Current state: Transformation

“demand”

Business Process

Business Capability

Target Operating Model

Enterprise Architecture

Solution Use Cases

Operationalization

Solution Architecture


Thank You !

building a winning operating model for digital · digital target operating model is a functional...

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