process transformation 080130

8/3/2019 Process Transformation 080130

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1. The need for transformation is

particularly acute in the

communication industry

Telecom operators have made bold

moves by introducing new

technologies, replacing legacy

systems, and changing organizationalstructures and ways of doing business.

However, this is just the beginning.

While sound business has been fuelled

across the board by the fast uptake of

Telecom operators are continuously worried about theefficiency of their business processes and their ability tocohesively tie together siloed organizational units.

However, many operators further silo their businesses by developing businessprocesses piecemeal as adjuncts to point projects. Well-designed business processescan be real differentiators, and as such, the discipline of designing, changing, managing

and improving processes should be treated as a critical competence. In our view, most operators have here an opportunity for improvement.

Mastering process transformation: a core competence

for the winners of the future

Business Transformation

mobile telephony and broadband

access for the last decade, market

maturity and continuous deregulation

are now putting incumbent businesses

under pressure.

As these companies attempt to protect

their margins through improvedefficiency, further consolidation,

centralization, partnering, and

outsourcing are unavoidable. Today’s

business processes will be radically

changed for most of these operators –

not just once but on an ongoing basis.

The ability to be nimble and make

these changes will separate the

winners and the losers over the

next decade.



40% of the analyzed operators in our

study described eTOM as something that

they aspired to be compliant with rather

than explaining the inherent concretebenefits. In most other industries, most

players are working hard to find ways to

differentiate themselves by implementing

more efficient processes.

There is some confusion in the

industry about how to design future

processes

TM Forum has considerably helped theindustry by formulating eTOM as the

reference framework.

The popularity has, however, reached a

point where many have made its

compliance the main objective of their

process transformations rather than the

original business objectives.

We have conducted text analysis of

press releases and public statements

mentioning eTOM from 20 different

telecom operators over the last three

years. 40% of the analyzed operators

described eTOM as something thatthey aspired to be compliant with rather

than explaining the inherent concrete

benefits. In most other industries, most

players are working hard to find ways

to differentiate themselves by

implementing more efficient processes.

2. Telecom operators are challenged

by their ability to transform their

business processes effectively

The communication industry is a

magnet for innovative thinking. This is

reflected in the comprehensiveness of

corporate strategies and the track

record of handling advanced

technologies. However, our studies

and experiences show that the ability

of traditional operators to transform

their businesses effectively is still an

Achilles heel as they face greater

challenges than other industries:

The businesses of telecomoperators are very complex

Telecom operators have relatively

complex businesses, ranging from

managing extensive infrastructures,

offering advanced applications, and

running scores of high street retail

chains and call centers.

Operators have experienced more

internal barriers to success than

other industries

Nokia Siemens Networks has recently

conducted an in-depth study of communication service providers

across the world. As part of this,

103 executives were interviewed.

65% of them noted failure to cooperate

across their organization as being a

critical internal barrier to meeting their

business objectives. This is high

compared to other industries.



3. Operators can benefit by

revisiting their basic principles for

process transformations

Traditionally, businesses conduct

transformation by formulating a

corporate strategy and then, based on

this plan, develop redefined

organizational structures and core

processes. Finally, they implement the

necessary changes in the operational

processes and support systems.

This model makes sense, but it puts

too much emphasis on the separate

steps of a transformation at the

expense of a more holistic approach.

Transformation is not a one-shot

engagement but a permanent state.

Large companies that have

successfully transformed themselves

are typically characterized by having

tangible change methodologies that

are rooted deeply in their corporate

cultures. One such example is Nokia,

which has built itself from being a

highly diversified conglomerate to

become a fast moving and fast

changing mobile phone producer.

Their line managers are today guidedthrough a systematic approach with

individual six-month plans. This has

helped Nokia to execute a series of

major new changes over the last

decade. Another example is Toyota,

a company that is widely known for

its LEAN methodology, which is an

inseparable part of their overall Kaizen

philosophy of continuous improvement.

We have not been able to identify any

traditional telecom operator that has an

equivalent approach to change that is

embraced by their entire organization.

Customers are sensitive to a

reduction in the quality of service.

Customers do not fundamentally care

about what is happening on the other

side of the communication services

that they are paying for. There are,

however, many cases in the industry,

where operators’ change efforts have

resulted in not just temporary

disruption but in a general decrease in

the perceived quality of service. Thishas often happened unintentionally

over time and has been recognized

too late. It is critical that operators keep

this in mind throughout the planning

process as well as when they are

meeting unforeseen challenges.

The commercial, operational and

technological aspects of

transformation are interlocked.

Operators must be careful not to

narrow their focus too much on

individual change efforts but insteadensure holistic thinking across

commercial, operational and technical

domains. It is impossible to plan or

implement radical changes in any one

domain without running into challenges

and opportunities in the two others.

As an example, the so-called next

generation transformations in the OSS

space are not just about introducing

new technology but will require new

operational processes and enable new

ways of doing business.

We recommend that operatorssimultaneously consider all of these

aspects in the initial planning and get

decision makers and in-house experts

from the respective parts of the

organization involved together from the

very beginning. Conceptually speaking,

we advocate an iterative approach to

think through and plan change in

phases that successively address each

of the three aspects as illustrated in

figure 1.

Figure 1

Large companies that

have successfully

transformed themselves

are typically

characterized by having

tangible change

methodologies that are

rooted deeply in their

corporate cultures.

We have not been ableto identify any traditional

telecom operator that

has an equivalent

approach to change that

is embraced by their

entire organization.



4. Operators should get five things

right when planning and executing

a process-led transformation effort

Process-led transformation programs

are quite complex in all dimensions of

change, and present enormous

challenges. Hence, operators need a

thorough understanding of key critical

aspects of process transformations

ahead of any planning. We find five key

critical success factors that operators

should get right to execute the

individual programs effectively, as well

as to build long term competence:

I) Co-create enriched customer experience with the customers:

Operators should be conscious of their

technical nature and the associated

risk of getting bogged down in

technological aspects of the

transformation and completely ignoring

the value that could be created or

destroyed for their customers. Ideally,

each transformational effort should

help improve the overall customer

experience. We recommend a

continuous dialog throughout the

transformation to understand thecustomers’ pain points and ensure that

their concerns are addressed as the

solution is developed.

II) Assess the general process

maturity and guide the planning

based on this:

The success of a business process

has as much to do with the

organization within which it is

implemented, as the actual process

itself. We recommend that operators

assess their general maturity aroundbusiness processes and thereby help

plan and execute changes. A Process

Maturity assessment can help

operators understand inefficiencies of

current processes, set the ambition

level for new ones, and decide whether

and when to take further actions to

enable the desired change.

The degree of management alignment

is an example of a dimension in

Process Maturity. If executives are not

supporting, or are even disagreeing

about, a new or existing approach,

then this will sooner or later shine

through to their respectiveorganizations and jeopardize otherwise

good intentions.

III) Institute a central process

excellence organization:

The complexity of a transformation can

easily be a root of misunderstandings,

even in organizations with a high level

of Process Maturity. Consequentially,

there are several process aspects that

need to be centralized and

standardized across an organization.

Key among them is the choice of frameworks, notations, training

techniques, and tools.

IV) Interplay between business

processes and system architecture:

Many operators formulate and

document their future processes but

fail to work iteratively with the system

design. With increased automation,

most of the operational processes are

actually realized through system

implementations and hence it is

paramount that the design of specificprocesses and the system architecture

are completely aligned.

V) Employee engagement and

accountability:

As new or revised business processes

are introduced, new skills may be

required and new jobs and

organizational structures created.

Introducing a company-wide process,

for example some aspect of customer

service, can create substantial risks if

employees are not prepared for the

new environment or if they are

unwilling to adopt the new ways of

working. Hence, the success of atransformation program will largely

depend on the extent to which

employees are engaged and prepared

for it. Operators should engage their

top talent in the transformation

programs and give them clear and

hands-on responsibility for making the

actual change happen. It should be a

mandatory element in the career path

for top talent at major operators.



Pre-modeled Level 4 Operator Process Map

Business Review &Strategic Assessment

Design & BuildIterative –driven by transformation roadmap

Implement & ControlIterative –driven by transformation roadmap

Lead and ManageTransformation

Governance

Architecture

Organization Change Management

As Is ProcessInventory

Business Case

TransformationRoadmap

Voice of customer

TransformationStrategy –

Define scope

Process Gap

Analysis &MaturityAssessment

OpportunityIdentification

& AgreeInitiatives

Operations /Systems

Assessment –Pragmatic

considerations

ProcessDesign

ProcessModeling

BusinessScenarios &

Test Processes

Operational

DesignOperational

KPIsTraining

OperationsReadinessTesting &Launch

BusinessActivity

Monitoring

In-LifeImprovement

Projects

Data Model &E2E systems

solution design

SystemBuild & Test

E2E SystemsTesting

SystemsDeployment

Requirements /Voice of customer

IndustryStandards

Modelingsuites

SID, SOABased Design

Test with Voiceof Customer

Lean SixSigma based

Inputs / Outputs / Enablers Key Activities Systems Transformation Activities

5. Our consultancy capability

This Insight memo shares some of

our many thoughts about processtransformation. Historically,

Nokia Siemens Networks Consulting

has advised a range of communication

service providers on many aspects of

their business processes.

Over the last year, our practice has

invested significantly in improving our

capabilities in process transformation.

For more information on how we can

help your business please visit our

web site www.nokiasiemensnetworks.

com/consulting.

Practically, a comprehensive

transformation framework should be

applied to ensure that processes,key performance indicators,

enterprise architecture and systems

are transformed effectively, while

ensuring that the aspects

mentioned above are addressed

carefully. All these points are

addressed in the framework below,

which provides a holistic strategy-

to-implementation approach

ensuring that operators remain

committed to business benefits.

Figure 2



David Caudle – David has extensive

experience in Asia Pacific providingOperations-focused consulting to

service providers. “Often we see RFPs

coming out for support systems with

little emphasis on the organization and

processes governing those systems.

The key word is ‘support’. Systems

‘support’ business processes.

Yet many operators have little process

design and measurement skills.”

David is the Principal Consultant for

the Service Management & Charging

focus area across Asia-Pacific. David

has previously worked for Accentureand IBM in their telecommunications

consulting practices.

Meet the consultants

Ankur Bhan – Ankur is a business

transformation expert and has deep

experience working closely with

communication service providers as

a consultant on several of the largest

programs in the industry. “My clear experience is that operators will need

to go beyond automation and

simplification of their telecom software

and rather be bold about some of the

core process changes in their

operations. This will be clearly

reflected in the effectiveness of their

transformation programs” Ankur is

head of Process Consulting at

Nokia Siemens Networks Consulting.

Previously, Ankur held leadership roles

at Infosys, where he successfully built

a global process transformationpractice from scratch within their

telecom vertical.

Nicolai Tillisch – Nicolai has served

all types of communication service

providers, ranging from fixed and

mobile telecom operators, internet

players and companies in IT and

media. “The communication industry

has reached a level of maturity which

will trigger further consolidation and

intensified pursuit of efficiency.The ability to change effectively is

pivotal for traditional operators”.

Nicolai has worked in most parts of the

world and is currently based in Dubai.

Before coming to Nokia Siemens

Networks, Nicolai worked for T-Mobile

International, Hutchison Whampoa’s

“3”, and McKinsey & Company.

Nicolai is global head of Consulting

in Nokia Siemens Networks.

Alessandro Magnino – Alessandro

works as part of the Consulting team

in West South Europe. His role is to

encourage the development of the

consulting business with operator

customers, proposing new projects and

subsequently managing their delivery.

Alessandro identifies a number of key

challenges facing operators today:“One of the major challenges is the

increased need for operational

efficiency, particularly as the credit

crunch begins to bite deeper.”

Before working as a consultant for

Nokia Siemens Networks, Alessandro

worked for seven years as a senior

manager at Value Team, part of Value

Partners Group, a management and

IT consulting firm based in Italy.

In 2003 Alessandro founded an online

vertical portal, which he built into a

profitable business and sold in 2008.

Visit us at www.nokiasiemensnetworks.com/consulting

Do you want to know more aboutNokia Siemens Networks Consulting?

www.nokiasiemensnetworks.com

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mentioned in this document may be trademarks of their respective owners, and they are mentioned for

identification purposes only. Products and solutions herein are subject to change without notice.

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process transformation 080130

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