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  • 2017 TM Forum | 1

    E2E Digitalization:

    From Enablement to

    Exploitation

    Jos Manuel GascnDirector of Global IT Strategy & Transformation

    Telefnica

  • 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

    http://www.youtube.com/watch?v=QiCOmqvWUaw

  • 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

    Telefnica 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.

    Exploitati