Applying eTOM (enhanced Telecom Operations Map) Framework to Non-Telec

Applying eTOM (enhanced Telecom Operations Map) Framework to Non-Telecommunications Service Companies - An Product/Service/Solution Innovation Example: 

Applying eTOM (enhanced Telecom Operations Map) Framework to Non-Telecommunications Service Companies - An Product/Service/Solution Innovation Example Alan McSweeney

As Its Simplest, Innovation Is …: 

December 31, 2011 2 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

Successful Innovation Means …: 

December 31, 2011 3 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

Move To Service Management: 

December 31, 2011 4 Move To Service Management Trends 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 move

Spectrum Of Product/Solution/Service: 

December 31, 2011 5 Spectrum Of Product/Solution/Service Product Collection Of Products Provided As A Package Solution Limited Services Extended Services Such As Warranty And Support, Warranty Renewal Utility Services Ongoing Services Services Supplied As Part Of Solution Solution As A Service (Cloud, XaaS, Utility Services, etc.)

Migration From Products to Services: 

December 31, 2011 6 Migration From Products to Services Product Solution Limited Services Utility Services Ongoing Services Where Many Companies Are Now Where Many Companies Want To Be Need A Structured Process For Innovation To Achieve Services Vision

Spectrum Of Product/Solution/Service: 

December 31, 2011 7 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

Innovation Means …: 

December 31, 2011 8 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 innovate

Changes Implied By And Required For Move To Utility Services: 

December 31, 2011 9 Changes Implied By And Required For Move To Utility Services Changes The Nature Of The Business Relationship With The Customer Implementing and Sustaining Underlying Organisation Change Changes The Nature Of Financial Relationship With The Customer Changes To The Organisation Cost Model Changes The Services Provided Changes The Information You Have On The Customer

Changes Implied By And Required For Move To Utility Services: 

December 31, 2011 10 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 insights

eTOM (enhanced Telecom Operations Map) : 

December 31, 2011 11 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 framework

eTOM Business Process Framework Overview: 

December 31, 2011 12 eTOM Business Process Framework Overview Strategy, Infrastructure and Product Operations Enterprise Management Customer Strategy, New Ideas, Products And Associated Supporting Infrastructure Moved to Production and Steady-State Operations Fundamental Supporting Business Processes Needed To Run Any Business Operational Processes – Sales, Fulfillment, Assurance, Billing and Support

eTOM Business Process Framework - Detail: 

December 31, 2011 13 eTOM Business Process Framework - Detail Strategy, Infrastructure and Product Operations Strategy and Commit Infrastructure Lifecycle Management Product Lifecycle Management Operations Support and Readiness Fulfilment Assurance Billing and Revenue Management Marketing and Offer Management Service Development and Management Resource Development and Management Supply Chain Development Management Customer Relationship Management Service Management and Operations Resource Management and Operations Supplier/Partner Relationship Management

eTOM Enterprise Business Process Model – Common Structure: 

December 31, 2011 14 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 Vision, Strategy, Leadership, Business Management Operational Processes With Cross Functional Linkages Management and Support Processes

Sample Enterprise Business Process Models - 1: 

December 31, 2011 15 Sample Enterprise Business Process Models - 1 Business Controlling Process Processes That Direct and Tune Other Processes Core Processes Processes That Create Value for the Customer Customer Acquisition Product Delivery Order Fulfilment Customer Support Enabling Processes Processes That Supply Resources to Other Processes Channel Management Supply Management Human Resources Information Technology Business Acquisition Business Measurement Process Processes That Monitor and Report the Results of Other Processes Customer’s Process Needs Supplier’s Processes Business Environment Competitors, Governments Regulations and Requirements, Standards, Economics

Sample Enterprise Business Process Models - 2: 

December 31, 2011 16 Sample Enterprise Business Process Models - 2 Supply Chain Customers Innovate Sell Align Plan Make Source Fulfil Build Finance People Information Environment Governance

Sample Enterprise Business Process Models – Common Structure: 

December 31, 2011 17 Sample Enterprise Business Process Models – Common Structure Vision, Strategy, Business Management Operational Processes With Cross Functional Linkages Management and Support Processes Develop and Manage Products and Services Market and Sell Products and Services Deliver Products and Services Manage Customer Service Human Resource Management Information Technology Management Financial Management Facilities Management Legal, Regulatory, Environment, Health and Safety Management External Relationship Management Knowledge, Improvement and Change Management Vision and Strategy Business Planning, Merger, Acquisition Governance and Compliance

Achieving the Potential – New Product/Service/Solution Innovation Industrialisation and Productisation: 

December 31, 2011 18 Achieving the Potential – New Product/Service/Solution Innovation Industrialisation and Productisation Industrialisation Common Implementation and Operation Approaches Productisation Defined Set of Products/Solutions/ Services and Packaging/Delivery Options Productisation is a pre-requisite for and an enabler of industrialisation

Innovation and eTOM: 

December 31, 2011 19 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

Migration From Products to Services: 

December 31, 2011 20 Migration From Products to Services Product Solution Limited Services Utility Services Ongoing Services Where Many Companies Are Now Where Many Companies Want To Be Use Appropriate Elements Of eTOM Process Framework To Achieve Services Innovation And Transformation

Innovation Extends Creativity To Implementation And Generation Of Value: 

December 31, 2011 21 Innovation Extends Creativity To Implementation And Generation Of Value Discern Creativity Develop Clarify Verify Implement Market Sell Innovation Value Using a Structured Approach to Industrialising Innovation Maximises Value } Manage

Where Organisations Look For Innovation: 

December 31, 2011 22 Where Organisations Look For Innovation Product/solution/service innovation is just one aspect of a wider view of innovation

Where Organisations Can Look For Innovation: 

December 31, 2011 23 Where Organisations Can Look For Innovation Finance Business Model How Do You Make Money? Networking and Alliances How Do You Work With Other Organisations For Mutual Benefit? Processes Core Processes How Do You Create and Add Value To Your Products And Services? Enabling Processes How Are Core Processes Supported And Enabled? Products and Services Product Performance How Do You Design Your Core Products And Services? Product System How Do You Connect Or Provide A Common Platform For Your Products And Services? Service How Do You Provide Value To Your Customers Beyond Your Core Products And Services? Provision and Delivery Channel How Do You Get Core Products And Services to Market? Brand How Do You Communicate Your Core Products And Services? Customer Experience How Do Customers Feel When They Interact With Your Organisation And Your Products And Services?

Product, Solution and Service Lifecycle Management (PSSLM): 

December 31, 2011 24 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 organisation’s portfolio Enable the organisation strategic and business product/solution/service vision Drive internal and customer-oriented processes to meet market demand and customer expectations

Product, Solution and Service Lifecycle Management (PSSLM) : 

December 31, 2011 25 Product, Solution and Service Lifecycle Management (PSSLM) PSSLM belongs within Strategy, Infrastructure and Product/Solution/Service (SIPSS) function Responsibilities of SIPSS function Develop 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

Strategy, Infrastructure and Product/Solution/Service (SIPSS) Function: 

December 31, 2011 26 Strategy, Infrastructure and Product/Solution/Service (SIPSS) Function Innovation – development of new products/services/solutions lie in SIPSS function SIPSS divided into Horizontal 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 Management

Strategy, Infrastructure and Product/Solution/Service (SIPSS) - Horizontal Process Functions and Vertical Process Views: 

December 31, 2011 27 Strategy, Infrastructure and Product/Solution/Service (SIPSS) - Horizontal Process Functions and Vertical Process Views Strategy, 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

Strategy, Infrastructure and Product/Solution/Service (SIPSS) - Horizontal Process Function Details: 

December 31, 2011 28 Strategy, Infrastructure and Product/Solution/Service (SIPSS) - Horizontal Process Function Details Marketing and Offer Management Service Development and Management Resource Development and Management Supply Chain Development Management 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 Promotion Service Strategy and Planning Service Capability Delivery Service Development and Retirement Resource Strategy and Planning Resource Capability Delivery Resource Development and Retirement Supply Chain Strategy and Planning Supply Chain Capability Delivery Supply Chain Development and Change Management

SIPSS – Vertical Process Views: 

December 31, 2011 29 SIPSS – Vertical Process Views Strategy and Commit Strategy, Infrastructure and Product/Solution/Service (SIPSS) 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 needs Infrastructure Lifecycle Management Product, Solution and Service Lifecycle Management 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 organisation’s portfolio to required profit margins customer satisfaction and quality commitments, delivering new and retiring existing products/solutions/services to the market

SIPSS - Horizontal Process Functional Groups : 

December 31, 2011 30 SIPSS - Horizontal Process Functional Groups Strategy, Infrastructure and Product/Solution/Service (SIPSS) Marketing and Offer Management Service Development and Management Resource Development and Management Supply Chain Development Management Defines 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 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 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 selection

Horizontal Process Functional Structure: 

December 31, 2011 31 Horizontal Process Functional Structure Four levels of process detail within horizontal structure

Product, Solution and Service Lifecycle Management – Functional Structure – Levels 1, 2 and 3: 

December 31, 2011 32 Product, Solution and Service Lifecycle Management – Functional Structure – Levels 1, 2 and 3 Level 1 Level 2 Level 3

Product, Solution and Service Lifecycle Management – Functional Structure: 

December 31, 2011 33 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

Marketing and Offer Management – Levels 2, 3 and 4: 

December 31, 2011 34 Marketing and Offer Management – Levels 2, 3 and 4 Level 2 Level 3 Level 4

Service Development and Management – Levels 2, 3 and 4: 

December 31, 2011 35 Service Development and Management – Levels 2, 3 and 4

Resource Development and Management – Levels 2, 3 and 4: 

December 31, 2011 36 Resource Development and Management – Levels 2, 3 and 4

Supply Chain Development and Management – Levels 2, 3 and 4: 

December 31, 2011 37 Supply Chain Development and Management – Levels 2, 3 and 4

Product And Offer Development And Retirement – Levels 3 and 4 Process Details: 

December 31, 2011 38 Product And Offer Development And Retirement – Levels 3 and 4 Process Details Product And Offer Development And Retirement Gather and Analyse New Product Ideas Research 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 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 Exit 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 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 strategies

Sample Cross-Functional Scenario - Get Approval For The Development Of A New Product/Solution/Service: 

December 31, 2011 39 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 examination

Process Interactions – Get Approval For The Development Of A New Product/Solution/Service: 

December 31, 2011 40 Process Interactions – Get Approval For The Development Of A New Product/Solution/Service Product and Offer Capability Delivery Product and Offer Development and Retirement Service Capability Delivery Service Development and Retirement Resource Capability Delivery Resource Development and Retirement Supply Chain Capability Delivery Supply Chain Development and Change Management Product and Offer Capability Delivery Product and Offer Development and Retirement Service Capability Delivery Service Development and Retirement Resource Capability Delivery Resource Development and Retirement Supply Chain Capability Delivery Supply Chain Development and Change Management 1 2 3 4 5 6 8 7 9 10 11 12 13 14 15

Process Interactions – Get Approval For The Development Of A New Product/Solution/Service: 

December 31, 2011 41 Process Interactions – Get Approval For The Development Of A New Product/Solution/Service 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 Plan

Repeat Process Cycle At Greater Levels Of Detail For Refinement and Iterative Delivery And Identification of Appropriate Innovations: 

December 31, 2011 42 Repeat Process Cycle At Greater Levels Of Detail For Refinement and Iterative Delivery And Identification of Appropriate Innovations Product and Offer Capability Delivery Product and Offer Development and Retirement Service Capability Delivery Service Development and Retirement Resource Capability Delivery Resource Development and Retirement Supply Chain Capability Delivery Supply Chain Development and Change Management Product and Offer Capability Delivery Product and Offer Development and Retirement Service Capability Delivery Service Development and Retirement 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 Development: 

December 31, 2011 43 Use The Framework As A Checklist For Product/Solution/Service Development

Summary: 

December 31, 2011 44 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

More Information: 

December 31, 2011 45 More Information Alan McSweeney alan@alanmcsweeney.com