applying etom (enhanced telecom operations map) framework to non-telecommunications service...
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Applying eTOM (enhanced Telecom Operations Map) Framework to Non-Telecommunications Service Companies - An Product/Service/Solution Innovation ExampleTRANSCRIPT
Applying eTOM (enhanced Telecom Operations Map) Framework to NonTelecommunications Service Companies - An Product/Service/Solution Innovation Example
Alan McSweeney
As Its Simplest, Innovation Is
A good idea successfully implemented and operated This implies the need for effective processes for generating and identifying good ideas and for bringing them to fruition
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Successful Innovation Means
Having a function and associated processes for Product, Solution and Service Lifecycle Management (PSSLM) Structured approach to the introduction of innovations within product/service/solution offerings from concept to delivery and operation
There is no easy way to creating a new product/solution/service designed for large-scale sale and use
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Move To Service ManagementTrends in information technology such as cloud and XaaS are moving companies from product to service and utility suppliers Evolution of telecoms companies mirrors the path many companies want to follow
Move from provision of telecoms links to services (voice, data, television, gaming, wireless) Telecoms industry can provide a model for business processes and best practices for other industries looking to move to greater service orientation
Move to services can be challenging for companies A structured approach to innovation in important in such a moveDecember 31, 2011 4
Spectrum Of Product/Solution/ServiceServices Supplied As Part Of Solution Solution As A Service (Cloud, XaaS, Utility Services, etc.)
Product
Solution
Limited Services
Ongoing Services
Utility Services
Collection Of Products Provided As A PackageDecember 31, 2011
Extended Services Such As Warranty And Support, Warranty Renewal5
Migration From Products to Services
Where Many Companies Are Now
Where Many Companies Want To Be
Product
Solution
Limited Services
Ongoing Services
Utility Services
Need A Structured Process For Innovation To Achieve Services Vision
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Spectrum Of Product/Solution/Service
Sell Me Products That I Will Use To Solve A Problem
Sell Me A Solution To A Problem
Take Responsibility For Operating The Solution To The Problem
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Innovation Means
Acceptance of change innovation implies and requires change Innovation exposes an organisation to change A secondary affect of successful innovation is the willingness of an organisation to change To be good at innovation means to be good at change Innovation means welcoming change and being able to successfully deliver change Innovation means continuously challenging accepted conventions If you cannot change, you cannot innovateDecember 31, 2011 8
Changes Implied By And Required For Move To Utility ServicesChanges The Nature Of The Business Relationship With The Customer Changes The Nature Of Financial Relationship With The Customer Changes The Services Provided Changes The Information You Have On The Customer
Changes To The Organisation Cost Model
Implementing and Sustaining Underlying Organisation Change
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Changes Implied By And Required For Move To Utility Services
Changes The Nature Of The Business Relationship With The Customer: organisation becomes responsible for service management (availability, continuity, capacity, change, release, risk, security, access, facilities, compliance and many others) Changes The Nature Of Financial Relationship With The Customer: from initial payments and with smaller recurring component to near continuous payment for service Changes To The Organisation Cost Model: shift costs to organisation from customer as initial and ongoing investment required to generate recurring service revenue with consequences for cashflow and growth Changes The Services Provided: from initial supply with some packaged services and ongoing support/warranty to service management-oriented services Changes The Information You Have On The Customer: you know their pattern of usage of your service (product) and can obtain and exploit such insightsDecember 31, 2011 10
eTOM (enhanced Telecom Operations Map)
Provides a detailed process framework for a telecoms utility companies that can be adopted by non-telecoms organisations moving to solutions as a service operating model Developed by TM Forum - www.tmforum.org eTOM http://www.tmforum.org/BusinessProcessFramework/1647/home.html
Reference framework that classifies and defines the business activities used by a company involved in delivering (online) services three major process areas: Strategy, Infrastructure and Product concerned with planning and lifecycle management Operations concerned the core of operational management Enterprise Management concerned corporate or business support management
Offers the potential for non-telecoms companies to learn from an effective operational frameworkDecember 31, 2011 11
eTOM Business Process Framework OverviewCustomerOperational Processes Sales, Fulfillment, Assurance, Billing and Support
Strategy, Infrastructure and Product
Strategy, New Ideas, Products And Associated Supporting Infrastructure Moved to Production and Steady-State Operations
Operations
Enterprise ManagementFundamental Supporting Business Processes Needed To Run Any BusinessDecember 31, 2011 12
eTOM Business Process Framework - DetailStrategy, Infrastructure and Product Strategy and Commit Infrastructure Lifecycle Management Product Lifecycle Management Operations Support and Readiness Operations Fulfilment Assurance Billing and Revenue Management
Marketing and Offer Management
Customer Relationship Management
Service Development and Management
Service Management and Operations
Resource Development and Management
Resource Management and Operations
Supply Chain Development Management
Supplier/Partner Relationship Management
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eTOM Enterprise Business Process Model Common Structure
eSample business process model has a three pillar structure that is common to other business process models Generic structure that forms a template for specific actualisations eTOM provides a detailed template for communications service providers that can be applied to other similar service companies
Operational Processes With Cross Functional Linkages Vision, Strategy, Leadership, Business Management Management and Support Processes
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Sample Enterprise Business Process Models - 1Business EnvironmentCompetitors, Governments Regulations and Requirements, Standards, Economics
Customers Process NeedsBusiness Controlling ProcessProcesses That Direct and Tune Other ProcessesCustomer Acquisition
Core ProcessesProcesses That Create Value for the CustomerProduct Delivery Order Fulfilment Customer Support
Business Measurement ProcessProcesses That Monitor and Report the Results of Other Processes
Enabling ProcessesProcesses That Supply Resources to Other ProcessesChannel Management Supply Management Human Resources Information Technology Business Acquisition
Suppliers ProcessesDecember 31, 2011 15
Sample Enterprise Business Process Models - 2Align
Supply ChainInnovate Plan
Source Sell
Make
Fulfil
Customers
Build
PeopleDecember 31, 2011
Finance
Information
Environment
Governance16
Sample Enterprise Business Process Models Common StructureVision, Strategy, Business ManagementVision and Strategy
Operational Processes With Cross Functional LinkagesDevelop and Manage Products and Services Market and Sell Products and Services Deliver Products and Services Manage Customer Service
Management and Support ProcessesBusiness Planning, Merger, Acquisition Human Resource Management Information Technology Management Financial Management Facilities Management
Governance and Compliance
Legal, Regulatory, Environment, Health and Safety Management
External Relationship Management
Knowledge, Improvement and Change Management
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Achieving the Potential New Product/Service/Solution Innovation Industrialisation and Productisation
Productisation is a pre-requisite for and an enabler of industrialisation
Productisation IndustrialisationCommon Implementation and Operation Approaches Defined Set of Products/Solutions/ Services and Packaging/Delivery Options
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Innovation and eTOM
Innovation is about managing the value from new ideas New and enhanced existing products, solutions and services are just one aspect of innovation Product, Solution and Service Lifecycle Management (PSSLM) is a generalised view of completing the innovation process and achieving actualisation of ideas
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Migration From Products to Services
Where Many Companies Are Now
Where Many Companies Want To Be
Product
Solution
Limited Services
Ongoing Services
Utility Services
Use Appropriate Elements Of eTOM Process Framework To Achieve Services Innovation And Transformation
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Innovation Extends Creativity To Implementation And Generation Of Value
Manage
n atio nov InImplement Verify Clarify Develop Discern
Sell Market
alue V
y tivit Crea
Using a Structured Approach to Industrialising Innovation Maximises Value21
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Where Organisations Look For Innovation
Product/solution/service innovation is just one aspect of a wider view of innovation
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Where Organisations Can Look For InnovationBusiness ModelHow Do You Make Money? How Do You Work With Other Organisations For Mutual Benefit? How Do You Create and Add Value To Your Products And Services? How Are Core Processes Supported And Enabled? How Do You Design Your Core Products And Services? How Do You Connect Or Provide A Common Platform For Your Products And Services? How Do You Provide Value To Your Customers Beyond Your Core Products And Services? How Do You Get Core Products And Services to Market? How Do You Communicate Your Core Products And Services? How Do Customers Feel When They Interact With Your Organisation And Your Products And Services?23
Finance Processes Products and Services
Networking and Alliances Core Processes Enabling Processes Product Performance Product System Service
Provision and DeliveryDecember 31, 2011
Channel Brand Customer Experience
Product, Solution and Service Lifecycle Management (PSSLM)
PSSLM is concerned with the functions and processes need to define, plan, design, build, deliver, maintenance, manage revise and retirement of all products, solutions and services in the organisations portfolio Enable the organisation strategic and business product/solution/service vision Drive internal and customer-oriented processes to meet market demand and customer expectations
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Product, Solution and Service Lifecycle Management (PSSLM) PSSLM
belongs within Strategy, Infrastructure and Product/Solution/Service (SIPSS) function of SIPSS functionDevelop strategy Commit to the organisation Build and resources infrastructure - supports the delivery products, solutions and services themselves and their associated functional processes Develop and manage products, solutions and services Develop and manage the supply chain
Responsibilities
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Strategy, Infrastructure and Product/Solution/Service (SIPSS) Function Innovation SIPSS
development of new products/services/solutions lie in SIPSS function divided intoHorizontal functional groups Marketing and Offer Management Service Development and Management Resource Development and Management Supply Chain Development Management
Vertical process views Strategy and Commit Infrastructure Lifecycle Management Product, Solution and Service Lifecycle ManagementDecember 31, 2011 26
Strategy, Infrastructure and Product/Solution/Service (SIPSS) - Horizontal Process Functions and Vertical Process ViewsStrategy, Infrastructure and Product/Solution/Service (SIPSS) Strategy and Commit Infrastructure Lifecycle Management Product, Solution and Service Lifecycle Management
Marketing and Offer Management
Service Development and Management
Resource Development and Management
Supply Chain Development Management
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Strategy, Infrastructure and Product/Solution/Service (SIPSS) - Horizontal Process Function DetailsMarketing and Offer ManagementMarket Strategy and Policy Product and Offer Portfolio Planning Product and Offer Capability Delivery Marketing Capability Delivery Product and Offer Development and Retirement Sales Development Product Marketing Communications and Promotion
Service Development and ManagementService Strategy and Planning Service Capability Delivery Service Development and Retirement
Resource Development and ManagementResource Strategy and Planning Resource Capability Delivery Resource Development and Retirement
Supply Chain Development ManagementSupply Chain Strategy and PlanningDecember 31, 2011
Supply Chain Capability Delivery
Supply Chain Development and Change Management28
SIPSS Vertical Process ViewsStrategy, Infrastructure and Product/Solution/Service (SIPSS)
Strategy and Commit
Infrastructure Lifecycle Management
Product, Solution and Service Lifecycle Management
Responsible for the generation of strategies and establishment of business commitment in support of the Infrastructure and Product/Solution/Service Lifecycle processes involving all levels of operation from market, customer and products/solutions/services, through the services and the resources on which these depend to the involvement of suppliers and partners in meeting these needsDecember 31, 2011
Responsible for the definition, planning and implementation of all necessary infrastructures (application, IT and network), as well as all other support infrastructures and business capabilities (operations centers, architectures, etc.)
Responsible for the definition, planning, design and implementation of all products/solutions/services in the organisations portfolio to required profit margins customer satisfaction and quality commitments, delivering new and retiring existing products/solutions/services to the market29
SIPSS - Horizontal Process Functional GroupsMarketing and Offer ManagementDefines strategies, develops new products/solutions/services, manages existing products/solutions/services including retirement, manages pricing, sales and channels and implements marketing communications and promotion and offering strategies
Service Development and Management Strategy, Infrastructure and Product/Solution/Service (SIPSS) Resource Development and Management
Plans, develops and delivers services to operations domain for product/solution/service creation and design, managing and assessing the performance of existing products/solutions/services and ensuring that capabilities are in place to meet future product/solution/service demand
Plans, develops and delivers the resources - physical and non-physical - needed by operations to support products/solutions/services, manages and assesses the performance of existing resources and ensures that capabilities are in place to meet future products/solutions/services needs
Supply Chain Development ManagementDecember 31, 2011
Focuses on the interactions required by the organisation with suppliers and partners who are involved in maintaining the supply chain network of relationships that a service provider manages to source and deliver products, supports sourcing decisions, suppliers and partners selection30
Horizontal Process Functional StructureLevel 1
Four levels of process detail within horizontal structure
Level 2
Level 3
Level 4
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Product, Solution and Service Lifecycle Management Functional Structure Levels 1, 2 and 3Product, Solution and Service Lifecycle Management Marketing and Offer Management Service Development and Management Resource Development and Management
Level 1 Level 2Supply Chain Development and Management Supply Chain Strategy and Planning Supply Chain Capability Delivery Supply Chain Development and Change Management Resource Strategy and Planning Resource Capability Delivery Resource Development and Retirement
Market Strategy and Policy Product and Offer Portfolio Planning Product and Offer Capability Delivery Marketing Capability Delivery Product and Offer Development and Retirement Sales Development Product Marketing Communications and PromotionDecember 31, 2011
Service Strategy and Planning Service Capability Delivery Service Development and Retirement
Level 3
32
Product, Solution and Service Lifecycle Management Functional Structure
Functional view of what is needed to productise the results of innovation Not prescriptive of the approach
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Marketing and Offer Management Levels 2, 3 and 4 Level 2 Level 3Marketing and Offer Management Product and Offer Development and Retirement Product Marketing Communications and Promotion Define Product Marketing Promotion Strategy Develop Product and Campaign Message Select Message and Campaign Channels Develop Promotional Collateral Manage Message and Campaign Delivery Monitor Message and Campaign Effectiveness Market Strategy and Policy Product and Offer Portfolio Planning Product and Offer Capability Delivery Marketing Capability Delivery Sales Development
Gather and Analyse Market Information Establish Market Strategy
Gather and Analyse Product Information Establish Product Portfolio Strategy Produce Product Portfolio Business Plans Gain Commitment to Product Business Plans
Define Product Capability Requirements Capture Product Capability Shortfalls Approve Product Business Case
Define Marketing Capability Requirements Gain Marketing Capability Approval Deliver Marketing Infrastructure Manage Handover to Marketing Operations Manage Marketing Capability Delivery Methodology
Gather and Analyse New Product Ideas Assess Performance of Existing Products Develop New Product Business Proposal Develop Product Commercialisation Strategy Develop Detailed Product Specifications Manage Product Development
Monitor Sales and Channel Best Practice Develop Sales and Channel Proposals Develop New Sales Channels and Processes
Establish Market Segments Link Market Segments and Products Gain Commitment to Marketing Strategy
Deliver Product Capability Manage Handover to Product Operations Manage Product Capability Delivery Methodology
Level 4
Launch New Products
Manage Product Exit December 31, 2011 34
Service Development and Management Levels 2, 3 and 4Service Development and Management Service Development and Retirement Gather and Analyse New Service Ideas Assess Performance of Existing Services Develop New Service Business Proposal Develop Detailed Service Specifications Service Strategy and Planning Service Capability Delivery
Gather and Analyse Service Information
Map and Analyse Service Requirements Capture Service Capability Shortfalls Gain Service Capability Investment Approval
Manage Service Research
Establish Service Strategy and Goals
Define Service Support Strategies
Design Service Capabilities
Produce Service Business Plans
Enable Service Support and Operations Manage Service Capability Delivery Manage Handover to Service Operations
Manage Service Development
Develop Service Partnership Requirements Gain Enterprise Commitment to Service Strategies#December 31, 2011
Manage Service Deployment
Manage Service Exit35
Resource Development and Management Levels 2, 3 and 4Marketing and Offer Management Resource Development and Retirement Gather and Analyse New Resource Ideas Assess Performance of Existing Resources Develop New Resource Business Proposal Develop Detailed Resource Specifications Resource Strategy and Planning Resource Capability Delivery
Gather and Analyse Resource Information
Map and Analyse Resource Requirements Capture Resource Capability Shortfalls Gain Resource Capability Investment Approval
Manage Resource Research
Establish Resource Strategy and Architecture Define Resource Support Strategies
Design Resource Capabilities
Produce Resource Business Plans
Enable Resource Support and Operations Manage Resource Capability Delivery Manage Handover to Resource Operations
Manage Resource Development
Develop Resource Partnership Requirements Gain Enterprise Commitment to Resource PlansDecember 31, 2011
Manage Resource Deployment
Manage Resource Exit36
Supply Chain Development and Management Levels 2, 3 and 4Supply Chain Development and Management Supply Chain Strategy and Planning Supply Chain Capability Delivery Supply Chain Development and Change Management Manage Supplier/Partner Engagement Manage Supply Chain Contract Variation Manage Supplier/Partner Termination
Gather and Analyse Supply Chain Information Establish Supply Chain Strategy and Goals Define Supply Chain Support Strategies Produce Supply Chain Business Plans Gain Enterprise Commitment to Supply Chain Plans
Determine the Sourcing Requirements Determine Potential Suppliers/Partners
Manage the Tender Process
Gain Tender Decision Approval Gain Approval for Commercial Arrangements Negotiate Commercial Arrangements
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Product And Offer Development And Retirement Levels 3 and 4 Process DetailsGather and Analyse New Product Ideas Assess Performance of Existing Products Develop New Product Business Proposal Develop Product Commercialisation Strategy Develop Detailed Product Specifications Manage Product DevelopmentResearch and analyse demographic, customer, technology and marketing information to identify new product and offer potential opportunities, compare current capabilities with the identified opportunities and develop new opportunity concepts Analyse the performance of existing products to identify inadequacies and required improvements using information from customers and from operational activities Develop and document business proposals for the identified new product concept, including a business case, identifying the new product requirements, service components, development costs and anticipated benefits, risks and the competitive positioning Ensure that product specific pricing, sales channel support and regulatory approvals are identified and agreed and developed ensuring that all commercialisation aspects of the product development process associated with selling the product are covered Develop and document the detailed product-related technical, performance and operational specification including required product features, the specific service and resource requirements and selections, the specific performance and operational requirements and support activities Ensure the co-coordinated delivery in line with the approved business case of all required product capabilities for that business case across the organisation
Product And Offer Development And Retirement
Launch New Products
Manage the initial introduction of new and enhanced products into the market and handover to operations for ongoing rollout Identify existing products which are unviable and manage the processes to exit the product from the market, identify customers impacted by the exit, develop customer specific or market segment exit or migration strategies, develop infrastructure transition and/or replacement strategies38
Manage Product ExitDecember 31, 2011
Sample Cross-Functional Scenario - Get Approval For The Development Of A New Product/Solution/Service
Product/solution/service consists of components that can be reused to further define and build new products/solutions/services New product/solution/service proposal is then submitted for approval Processes involved in this scenario are: Product and Offer Portfolio Planning Product Marketing Communications and Promotion Product and Offer Development and Retirement Service Strategy and Planning Service Development and Retirement Resource Development and Retirement Product and Offer Capability Delivery Service Capability Delivery Resource Capability Delivery
Outputs from scenario New product/solution/service with its associated services and resources developed, tested and accepted Configuration information including pricing rules and promotions
Steps can be iterated for rapid product/solution/service concept exploration and examinationDecember 31, 2011 39
Process Interactions Get Approval For The Development Of A New Product/Solution/ServiceProduct and Offer Capability Delivery Product and Offer Development and Retirement
1 2 14 3
Service Capability Delivery Service Development and Retirement
5 4Resource Capability Delivery Resource Development and Retirement
6Supply Chain Development and Change Management
Product and Offer Product and Offer Service Service Capability Capability Development and Development and Delivery Delivery Retirement Retirement
Supply Chain Capability Delivery
15
13
Resource Capability Delivery Resource Development and Retirement Supply Chain Capability Delivery Supply Chain Development and Change Management
8
7 9 11
10 12
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Process Interactions Get Approval For The Development Of A New Product/Solution/Service1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Provide Product/Solution/Service Development Plan Provide Product/Solution/Service Development Plan Provide Resource Infrastructure Requirements Provide Product/Solution/Service Deployment Plan Provide Service Infrastructure Requirements Provide Supplier/Partner Capability Requirements Provide Supplier/Partner Infrastructure Requirements Provide Resource Infrastructure Requirements Provide Supplier/Partner Required Capabilities Provide Resource Infrastructure Plan Provide Supplier/Partner Integration Plan Seek Approval For Supplier/Partner Infrastructure and Integration Plan Seek Approval For Resource Infrastructure Plan Seek Approval For Service Infrastructure Plan Seek Approval For Product Infrastructure Plan41
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Repeat Process Cycle At Greater Levels Of Detail For Refinement and Iterative Delivery And Identification of Appropriate InnovationsProduct and Offer Capability Delivery Product and Offer Development and Retirement Service Capability Delivery Service Development and Retirement Product and Offer Product and Offer Service Service Capability Capability Development and Development and Delivery Delivery Retirement Retirement Resource Capability Delivery Resource Development and Retirement Supply Chain Capability Delivery Supply Chain Development and Change ManagementDecember 31, 2011 42
Resource Capability Delivery
Resource Development and Retirement
Supply Chain Capability Delivery
Supply Chain Development and Change Management
Use The Framework As A Checklist For Product/Solution/Service DevelopmentMarketing and Offer Management Market Strategy and Policy Gather and Analyse Market Information Establish Market Strategy Establish Market Segments Link Market Segments and Products Gain Commitment to Marketing Strategy Gather and Analyse Product Information Establish Product Portfolio Strategy Produce Product Portfolio Business Plans Gain Commitment to Product Business Plans Define Product Capability Requirements Capture Product Capability Shortfalls Approve Product Business Case Deliver Product Capability Manage Handover to Product Operations Manage Product Capability Delivery Methodology Define Marketing Capability Requirements Gain Marketing Capability Approval Deliver Marketing Infrastructure Manage Handover to Marketing Operations Manage Marketing Capability Delivery Methodology Gather and Analyse New Product Ideas Assess Performance of Existing Products Develop New Product Business Proposal Develop Product Commercialisation Strategy Develop Detailed Product Specifications Manage Product Development Launch New Products Manage Product Exit43
Product and Offer Portfolio Planning
Product and Offer Capability Delivery
Marketing Capability Delivery
Product and Offer Development and Retirement
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Summary
eTOM (enhanced Telecom Operations Map) business process framework can provide a workable model for transition to services for non-telecommunications service providers Proven framework for area of services provision Organisations offering cloud and XaaS services moving from products to communications-like utility services eTOM can be extended outside its core telecommunications focus to these organisations
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More InformationAlan McSweeney [email protected]
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