This panel discusses enabling the digital transformation of telecom companies from CSPs to DSPs through business support system modernization. Antiquated OSS and BSS systems, strict regulations, and a resistance to change are holding telecom companies back from being more successful in their digital transformation. The panel will discuss how telecom companies can overcome these challenges through processes like network virtualization, big data analytics, and advanced self-service applications to improve customer experience and compete with digital disruptors.

1. PANEL V
ENABLING THE TRANSITION FROM CSP TO DSP WITH B/OSS
TRANSFORMATION

2. Panelists
Dave Hughes
VP of Engineering
PCCW Global
James Crawshaw
Senior Analyst
Heavy Reading
Barry Graham
Director – Agile Business and IT program
TM Forum
Lester Thomas
Chief IT Systems Architect
Vodafone

3. Outline
• Telco digital transformation is essentially the modernization of
business processes to better compete with "over the top" digital
disruptors.
• Not only are these new entrants eating telcos' lunch, they have
changed enterprise and consumer expectations about how services
are ordered (with one click) and delivered (seamlessly).
• What is holding telcos back from being more successful in their digital
transformation?
• Are antiquated OSS and BSS systems to blame?
• Is it regulation or is there a deeper cultural challenge that the
industry faces?

4. Definitions
• Digitalization = simulation of real, analog world in a computer-
compatible digital (i.e., number-based) format.
• Digital transformation =
A. use of computers instead of paper and pen
B. greater use of the Internet in business processes
C. making better use of data that is more easily captured and stored, thanks to
digital technology
D. an umbrella term for the ongoing process of change in businesses,
industries and society at large

5. Digital Transformation Business Impact Scorecard
Source: Keeping Score - Why Digital Transformation Matters, Coleman Parkes

6. Factors constraining digital transformation
1. Strict regulatory framework in which telecom operates
2. Multitude of technology stacks that have accumulated due to rapid
pace of innovation in telecom over last 20 years
3. Multiplicity of IT systems inherited after years of consolidation
across the sector
4. Resistance to change (not telco specific)

7. Receptivity to digital/technology change
Source: BT CIO report 2016

8. Most Important Aspects of Digital Transformation
143
138
112
107
104
54
34
0 40 80 120 160
Process automation
Network virtualization
Big data analytics
Advanced self-service apps
Omni-channel sales & customer service
Personalized offers
DevOps
Source: The State of Digital Transformation in Telecommunications. A Heavy Reading white paper produced for Comarch SA

9. Digital Transformation Investment Priorities
117
109
108
106
91
75
45
26
12
0 20 40 60 80 100 120 140
Business intelligence / analytics
Customer-facing applications
Customer experience management
Operations support systems
Customer relationship management
Cybersecurity
Development of APIs
Workforce collaboration tools
Identity and access management
Source: The State of Digital Transformation in Telecommunications. A Heavy Reading white paper produced for Comarch SA

10. OTT Strategy
42%
24%
18%
14%
3%
0% 10% 20% 30% 40% 50%
Partnership: Offer bundled
services together with OTTs
Competition: In-house development
of our own OTT solutions
Adaptation: Transform into a
multiplatform provider for OTTs
Neutrality: Focus on the QoS issues of
customers and address those quickly
to maintain our competitive position
Other
Source: The State of Digital Transformation in Telecommunications. A Heavy Reading white paper produced for Comarch SA

11. Big (User) Data Monetization
28%
26%
20%
11%
11%
4%
0% 5% 10% 15% 20% 25% 30%
Direct marketing and advertising
No plans to monetize; instead, we aim to gain a
better understanding of customers
Providing location-based services
Selling reports on user behavior to
third parties
Selling anonymized user data to
third parties
Other
Source: The State of Digital Transformation in Telecommunications. A Heavy Reading white paper produced for Comarch SA

12. Key aspects of telco transformation
• Agility of network operations – increased automation and faster time
to market.
• Improved customer engagement – easy ordering, delivery and
problem resolution; customized, relevant offerings based on data
analytics.
• New service offerings – turn operators into service aggregators for
third parties (e.g., Netflix, Spotify, Deezer, financial services, utilities).
• Enabling internal innovation – adoption of DevOps and fast-fail
mentality to unleash creative potential.