e2e digitalization: from enablement to exploitation · e2e digitalization: from enablement to...

© 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

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

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)


Payments and Top ups

Information Request

Sales & ordering

Claims

Technical problems

Loyalty Management

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… 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)


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



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)



Problem to solution

Usage to payment

Request to change



© 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




© 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


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




© 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


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


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


• 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


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


Automated operations

Rig

ht

mix

of

chan

nel

s

Zero Back-Office


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 | 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

e2e digitalization: from enablement to exploitation · e2e digitalization: from enablement to...

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