The document discusses applying the eTOM (enhanced Telecom Operations Map) framework to non-telecommunications companies for product/service/solution innovation. It describes eTOM's processes for product/solution/service lifecycle management from concept to delivery and operation. It also discusses the changes required for companies transitioning to a greater service orientation like utility-based services, including changes to business models, costs, services provided, and customer information and relationships.
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Applying eTOM (enhanced Telecom Operations Map) Framework to Non-Telecommunications Service Companies - An Product/Service/Solution Innovation Example
1. Applying eTOM (enhanced Telecom Operations Map) Framework to Non-Telecommunications Service Companies - An Product/Service/Solution Innovation Example Alan McSweeney
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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.)
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
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
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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
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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
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
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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
16. Sample Enterprise Business Process Models - 2 Supply Chain Customers Innovate Sell Align Plan Make Source Fulfil Build Finance People Information Environment Governance
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
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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
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
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23. Where Organisations Can Look For Innovation How Do Customers Feel When They Interact With Your Organisation And Your Products And Services? Customer Experience How Do You Communicate Your Core Products And Services? Brand How Do You Get Core Products And Services to Market? Channel Provision and Delivery How Do You Provide Value To Your Customers Beyond Your Core Products And Services? Service How Do You Connect Or Provide A Common Platform For Your Products And Services? Product System How Do You Design Your Core Products And Services? Product Performance Products and Services How Are Core Processes Supported And Enabled? Enabling Processes How Do You Create and Add Value To Your Products And Services? Core Processes Processes How Do You Work With Other Organisations For Mutual Benefit? Networking and Alliances How Do You Make Money? Business Model Finance
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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
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
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
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
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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 Marketing and Offer Management Service Development and Management Resource Development and Management Supply Chain Development and 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 Service Strategy and Planning Service Capability Delivery Service Development and Retirement Resource Strategy and Planning Supply Chain Strategy and Planning Resource Capability Delivery Resource Development and Retirement Supply Chain Capability Delivery Supply Chain Development and Change Management Product Marketing Communications and Promotion
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34. Marketing and Offer Management – Levels 2, 3 and 4 Level 2 Level 3 Level 4 Marketing and Offer 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 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 Exit Monitor Sales and Channel Best Practice Develop Sales and Channel Proposals Develop New Sales Channels and Processes 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
35. Service Development and Management – Levels 2, 3 and 4 Service Development and Management Service Strategy and Planning Service Capability Delivery Service Development and Retirement Gather and Analyse Service Information Manage Service Research Establish Service Strategy and Goals Define Service Support Strategies Produce Service Business Plans Map and Analyse Service Requirements Capture Service Capability Shortfalls Gain Service Capability Investment Approval Design Service Capabilities Gather and Analyse New Service Ideas Assess Performance of Existing Services Develop New Service Business Proposal Develop Detailed Service Specifications Manage Service Development Manage Service Deployment Develop Service Partnership Requirements Gain Enterprise Commitment to Service Strategies# Enable Service Support and Operations Manage Service Capability Delivery Manage Handover to Service Operations Manage Service Exit
36. Resource Development and Management – Levels 2, 3 and 4 Marketing and Offer Management Resource Strategy and Planning Resource Capability Delivery Resource Development and Retirement Gather and Analyse Resource Information Manage Resource Research Establish Resource Strategy and Architecture Define Resource Support Strategies Produce Resource Business Plans Map and Analyse Resource Requirements Capture Resource Capability Shortfalls Gain Resource Capability Investment Approval Design Resource Capabilities Gather and Analyse New Resource Ideas Assess Performance of Existing Resources Develop New Resource Business Proposal Develop Detailed Resource Specifications Manage Resource Development Manage Resource Deployment Develop Resource Partnership Requirements Gain Enterprise Commitment to Resource Plans Enable Resource Support and Operations Manage Resource Capability Delivery Manage Handover to Resource Operations Manage Resource Exit
37. Supply Chain Development and Management – Levels 2, 3 and 4 Supply Chain Development and Management Supply Chain Strategy and Planning Supply Chain Capability Delivery Supply Chain Development and Change Management 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 Manage Supplier/Partner Engagement Manage Supply Chain Contract Variation Manage Supplier/Partner Termination Gain Approval for Commercial Arrangements Negotiate Commercial Arrangements
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
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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
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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
43. Use The Framework As A Checklist For Product/Solution/Service Development