digital transformation me 2020 | product lifecycle for a ... · leveraging digital maturity model...

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Digital Transformation ME 2020 |Product Lifecycle for a Hyper Connected Future

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2

Industry challengeStemming from the various internal and external factors


Challenges arising out of the digital shift driven mainly from; product offering relevance, time-to-market and profitability

How is the disruption changing the business models of Telcos?

Product Offering RelevanceTraditional product offering portfolios

focused on providing consumers with mobile and fixed services with limited

customization; hence no longer meeting customers' demands.

Time to MarketDelays in TTM for these products is resulting

in obsolete offerings, reduced market competitiveness and misalignment with

consumer expectations

ProfitabilityDisruptive profitability indicators, including ARPU, have forced Telcos to diversify into new revenue streams, reduce expenditures and maximize operational efficiencies in an effort to gain market competitiveness in the digital era.


Need for a digital operating model, stemming from a need to deliver a fully integrated product portfolio and new digital capabilities

What's compelling Telcos to undergo a Digital Transformation?

The NewTelco

Economics

Evolving consumer expectations

New players in the competitive landscape disrupting traditional business models

OTT providers controlling consumer subscriptions, that's shifting from cable to video streaming

Higher data limits and social media usages

Video-streaming services over cable subscriptions

Faster internet connectivity with 5G capabilities

IoT for smart services connectivity

55% households subscribed to paid video streaming services (Netflix, Starzplay, Amazon Prime)

Pay-Tv penetration ↓ to 63% from 75% in previous year

OTT and Tech providers – The new market leaders in new product development revolutionizing TTM

Cloud computing services on a metered pay-as-you-go basis providing competitive price points

Consolidations and partnerships in the area of cable, OTT content, and cloud-based managed services

Demand to create unique and customer-centric product offering with business model convergence


5

The FutureHow the new shape of PLM enables Telco’s future digital operating model transformation


A structured approach to manage product evolution, from conceptualization to retirement based on its market performance; while tackling key industry challenges across 5 Digital Maturity pillars

Digital Maturity Assessment for PLM Transformation

CustomerLeveraging customer insights and behaviour to understand the customer wants and expectations in terms of product offerings.

Engagement

Experience

Insight & Behavior

Trust & Perception

StrategyUnderstanding the market and customer to create personalized offerings, ideas and innovation within a digitally-enabled portfolio.

Brand Mgmt

Eco System Mgmt

Finance & Investment

Market & Customer

Portfolio Ideation & Innovn

Stakeholder Mgmt

Strategic Mgmt

TechnologyLeveraging technology for a solid infrastructure ready to deliver, manage, and enhance product lifecycle.

Application

Connected Things

Data & Analytics

Delivery Governance

Network

Security

Tech & Architecture

OperationsRe-engineering product development processes to create business agility and standardize workflows supported by a unified product catalogue data structure.

Agile Change Mgmt

Automated Resource Mgmt

Integrated Srvc Mgmt

Real-time Insights & Analytics

Smart/ Adaptive Process Mgmt

Stds & Governance Automation

Org & CultureAdapting the organizational culture to agile ways of working and establishing clear accountabilities and product governance bodies to effectively monitor and control product evolution.

Culture

Leadership/ Governance

Org Design & Talent Mgmt

Workforce Enablement

Challenges

Time to MarketDuration from product ideation to customer access as per benchmarks

Relevance & CustomizationAddressing customer need, choice and demand

ProfitabilityImpacting profit margin and sustainable growth

Challenges affecting multiple dimensions


PLM will impact each layer of the Digital Operating Model with the customer experience at the core

Future of Telco service provider powered by a Digital PLM

Digital Operating Model

Customer

experience

Flexible

organization

Innovation

1

5

4

3

2

Partnerships &

alliances

6

3

2

5

6

1

4

Customer-centric strategy & experience

E2E processes facelifted by robotics, automation, and AI

IT & Network infrastructure enabling agile business delivery

Organizational structures adapt to new customer-centric processes

Continues effort to innovate business and offerings

Partnerships and alliances evolve business delivery

Digital operating models have evolved to take digital intent Telcos through a customer-led operationalization approach and building the business around the customer

PLM Impact

A customer data driven product offering design using data and analytics

to understand the customer’s insights and behavioral patterns

Structuring operations and processes end-to-end according to the

customer journey experience to deliver the best in class customer

experience

Setting up a technology engine that will reduce time to launch new

products or apply certain modifications to existing products i.e. PLM app will

integrate with all the downstream system

Designing a flexible organizational structure in order to enable swift

decision making and streamline product delivery

Innovative product offerings driven by agile ways of working, design

thinking methodologies and latest technological capabilities


8

How Deloitte helped Saudi Telecom Company build a simplifiedand unified product offering for Consumer Mobility products

PLM Case: STC


Saudi Telecom Company had been under increased pressure to revolutionize its PLM capabilities and adopt a digital operating model

The Challenge

Increased costs and complexity in the product portfolio

Simplified products offerings and bundling by competitors

Convergence of telecom and media companies product propositions

Increased operating costs within the call center & product management

Longer lead time-to-market for product offerings

Tightened quality requirements and legislation passed by CITC

Regulations and common industry standards (eTOM compliance is a majorissue due to the size of the organization)


Leveraging Digital Maturity Model (DMM) to identify key capability development areas to overcome disruption challenges and enable a digital customer centric operating model

Case Study – Saudi Telecom Company | PLM C2M Digital Transformation

Digital Maturity Model Product Life Cycle Management

ProcessDesign business and productcatalogue processes to enable thedigitization of the product lifecyclefrom ideation to post-launch usingagility concepts.

ProductEstablish a simplified and unifiedproduct catalogue to enable productmanagers to easily create or modifyproduct offerings with an improvedtime-to-market.

GovernanceTo gain buy-in on key ideas, businesscases and strategic decision-makingacross PLM stages. Utilize a design-thinking approach to ideate,prototype and introduce innovativeideas to the product portfolio in a 360degree collaborative manner.

Foundational Pillars

SIDeTOM Best

Practices

Tools & accelerators supporting PLM digitization

STC’s Telco Business

PLM SystemSelection of a PLM system /application with capabilities tomanage the entire product lifecyclesupported by integration capabilitiesfor people, data, processes andsystems in a single digital solution.


PLM Platform Is One Of Them…..

STC DARE Strategy – Summary

Our Vision“We are a world-class digital leader providing innovative services and platforms to our customers

in the MENA region”

Our

Imperatives

xpand aggressively

scale and scopeD igitizeSTC A ccelerate core

asset performanceR einvent customer

experience at world-class standards

E

Our

Objectives

D1• Digitalize processes

and internal operations

D2• Digitalize delivery

engine

D3• Digitalize commercial

approach

D4• Drive efficiencies

through digital

transformation

A1• Lead market in digital

services

A2• Drive fixed consumer

take-up

A3• Improve data

economics

A4• Grow B2G and B2B

SME segments

A5• Drive further

efficiencies

A6• Instill culturechange

R1• Lead in networkQoE

R2• Simplify customer

interactions

R3• Personalize the

customer relationship

R4• Reinvent the sales

channels

E1• Services and

applications– Media

– Financial services

– ITS

E2•Platforms

E3• Connectivity &

infrastructure– Telco assets

– Towers

– Wholesale

Source: STC Corporate Strategy, Strategy& analysis

Digitization

Index80% (KSA Only)37%EBITDA Margin

Experience#1 Customer

RevenuesSAR 40 Bn

Incremental

STC DARE

Strategy has

4 main

imperatives

All of which

are largely

focused on

digitization


Time-To-Market is the main KPI

Four PLM Journeys

• On average, it takes 90 to 120 days

to close a request across the four

PLM journey types with long tech.

queue

• High priority cases are taking longer

periods for delivery

• A high number of rejected new

product cases resulting in time and

effort wastage

• High reliance on one product journey

e.g. Minor changes journey is used on

60% of total cases

• Long queues with the NPD process

contribute to long deployment time

• PLM journeys not incorporating

customer feedback and views

Key Insights

Note: *Benchmarks KPIs have been provided by STC for the purpose of giving an overview to management. These benchmarks do not represent potential project outcomes which will be realized post evaluation of data from

STC systems

New products

Major Changes/Revamp

Minor

Changes/Enhancements

Discount / Offers / BTLs

Ambition for Time to

Implement*

Average of

1-2 days

Average of

45 days

Average of

30 days

Average of

5-12 hours

CAPEX &

Resource

Efficiency

Improved

Customer

Experience

Decreased

Time to

Market

Expected Benefits

3

2

1

New Product

Requests

Major Change

Requests

Minor Change

Requests

Promotions

Requests


Keeping The Approach Simple

Inputs

Design

Thinking

Website

Systems

JIRA

Change

Requests

18 Months Of JIRA

DATAList of 1000 PLM Cases

1 2

Prepaid Roaming

Strategy Branding

Planning Customer Ex.

Business

Finance Postpaid

Pricing C-Care

B-Band Legal

Sales Mark Comm

VAS Regulatory

CRM Billing

B H

C I

Technology

D Mediation

E K

EDW L

G M

VAS N

Classification & Analysis

PLM Journey

Categories New productsMajor Changes

/ Revamp

Minor Changes

/Enhancements

Discount /Offer

/ Promotions

(BTL)*

PLM Stages Specifi-

cation

Strategic

Require-

ments

Ideation ConceptImplem-

entationTesting Launch

Post-

Launch

Process Classification – Stage Classification

Primary Vs Secondary

Postpaid T & P CVM LoyaltyRoaming

VAS MBB Retention BroadbandPrepaid

Marketing Customer Care

SalesStrategy

Marketing

Planning

Pricing

Finance

Regulatory

Customer Ex

Testing Social Media

eChannelsDemand

Operations

Development

Ent. Arch

Integration

Data WH

CAD

Note:- All names are for illustration purposes only Concept To MarketRoaming – Based on heatmaps & value chains


Converting Journey – EPC & Workflows, Analytics

Wholesale Roaming

1

2

5

Agreement

update

is sent

Agreement Notification

Is received

Service Concept is

developed and

submitted

7

9

6

8

Raise and Submit CR

Coordinate with IT/NSS

for CR implementation

Activate and

update required

systems

CE IT / Network

3Profitability

Analysis

4Product / offer

price is

defined

10 Test results

get verified

11Inform iREG to update

SMS and Shortcode &

conduct simulation

testing ` 12Execute Testing and the

update and notify

Roaming product

Manager13 Confirm operator

addition

Perform and

submit results

✓

START

END

This use case showcases the addition of a Roaming Operator through a

new contract and how the process is triggered through to activation

Pricing

Retail Rates

IN / SDF

NC

RBM eCHANNELS

RTAC

ROAMIT/VIZROAM/ NAWAQEL

EDW

CEM

PLM Workflows, EPC

& Analytics solve TTM

from Technology End

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http://www.google.ae/imgres?imgurl=http://www.rdm.com/en/portaldata/1/Moduledata/3264/sv_230_2_1.jpg&imgrefurl=http://www.rdm.com/en/desktopdefault.aspx/tabid-1857/3264_read-230&usg=__YKzzRuCTCWUC0ff14UT5hiooahA=&h=480&w=410&sz=159&hl=en&start=10&zoom=1&tbnid=1W9G6qKn_6nPiM:&tbnh=129&tbnw=110&ei=2jduUa-pF8jOrQfSnYCYBg&prev=/search?q=ODF&hl=en&biw=1280&bih=705&tbm=isch&itbs=1&sa=X&ved=0CD0QrQMwCQ


Preserve Existing Revenues & Expand

PROTECTING EXISTING

REVENUES

ROAMING – COST++SPENDING – 11% - XM SAR

ADDITIONAL REV. LOST DUE TO

TECH. QUEUE

TOTAL CAPEXX M SAR

X Billion

SAR

ROAMING

Adding/ RemovingDATA Packages

55%

PAYG RATE CHANGES

5%

COMMON

USE CASES

COMMON Profitability View Across Finance , Pricing & Marketing –

Resolving Business TTM

Generate Business

Case

Calculate NPV

Calculate Margins

Finance View

Marketing View

Pricing View


How PLM Helps Roaming Expand Revenues

Increasing

Revenues

30%

Convert Idle Roamers To

Subscribers By Tailored

Country Specific Packages

*Lost due to generic package

Current Margins

Kuwait

Sudan

Egypt

UK

FranceGermany

USA

Phillipines

Bahrain

UAE

Yemen

50% Vs 50%

50% Vs 50%

50% Vs 50%

50% Vs 50%50% Vs 50%

50% Vs 50%

50% Vs 50%

50% Vs 50%

50% Vs 50%

Idle Roamers : For Illustration Purposes Only – 50% vs 50%

2 Weeks

2 Weeks

2 Weeks

2 Weeks

50% Vs 50%

50% Vs 50%

50% Vs 50%

Pakistan

Bangladesh

India

Adding/ RemovingDATA Packages

55%

PAYG RATE CHANGES

5%


Connecting Silos For Optimizing Contracts

Wholesale Operator Deal

Calls To KSA DATA

Price - SAR Deal - Duration

Incoming Calls SMS

Products

Retail Rates

BTL

Data Offers

Packages

Voice/SMS Offers

1 Signs Deal

9

BTL

Performance

8

Launch BTLs

for

appropriate

Roaming

Segments

7

Continuous Deal Monitoring &

Send Deal Duration, Revenue

Accumulation & BTL trigger

alters

5

Launch

Products &

Retail Rates

4 Products &

Retail Rates

Suggestions

3 Deal

Information

Recorded in

Analytics

2CBU Receives Deal

Information

Reports

Analytics

Alerts

6Product

Performance

ANALYTICS

10Optimized

Deal

Suggestion

► Decisive Deal

Optimization

PLM

PLMPLM

PLM

PLM

PLMPLM

PLM – Product

Life Cycle

Management

System


Impact Of PLM On Customer Care, Competition Tracking, Real-time pro-active engagement…..

Subscription without usage tracking

Integration with CMS to send real-time alerts

to Customers with FAQ’s on using roaming

Competitor Catalog & Tracking

Track competition synchronizing competitors catalog using

web scraping tools

Initiate a process in PLM to respond to price changes

Measure the impact using PLM Analytics

Avoid Regulatory Fines

Mapping of complaint SR’s with Products To provide

Product Manager with insights on complaints

Instantly sync price across channels

Inject VoC in PLM

Real-Time Customer Events

Social Media Tracking

Track social media complaints by product

Fix issues in the PLM area (Outreach, etc.)

Raise operator complaint & fix steering

REFUNDSJAN – MAR 2019

XM SAR

CITC FINES

25M SAR

MANUAL TRACKING

COMPETITION WESITES

RESOURCES

10-15

COMMON

USE CASES

COMMON

USE CASES


Selling An Experience….

• Customer Subscribed For Roaming

• Uber ride

• Offer Partner Services

• Offer while @Airport

• Inflight Offers

• Target Airport

• Uber ride

• Returns Home


20

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digital transformation me 2020 | product lifecycle for a ... · leveraging digital maturity model...

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