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Digital Transformation ME 2020 |Product Lifecycle for a Hyper Connected Future
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Industry challengeStemming from the various internal and external factors
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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.
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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
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The FutureHow the new shape of PLM enables Telco’s future digital operating model transformation
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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
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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
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How Deloitte helped Saudi Telecom Company build a simplifiedand unified product offering for Consumer Mobility products
PLM Case: STC
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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)
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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.
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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
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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
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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
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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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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
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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%
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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
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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
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Selling An Experience….
• Customer Subscribed For Roaming
• Uber ride
• Offer Partner Services
• Offer while @Airport
• Inflight Offers
• Target Airport
• Uber ride
• Returns Home
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Why Deloitte
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