2. - Telco Digital Transformation
- Open Digital Architecture
- Legacy ODA migration
- Components
- Framework
- Key Benefits
- Concepts & Principles
- Use Cases (Few Examples)
- Open API
- Open Digital Architecture – Business Case
- Digital Efficiency
- Digital Transformation Maturity
- Success Stories
- ODA IA and RM Considerations
Content
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3. Digital Transformation: Three Steps
1. Define the business problem
2. Align people and culture
3. Map out the technology
1. Align senior stakeholders and junior staff with your
vision
2. Have clear milestones in place to measure progress
3. Choose the right technologies for your business
needs
4. Check the right digital skills are in place and build
teams capable of driving the transformation
forward.
We are transforming Vodafone’s global operating
model by being Digital ‘First’ – delivering a
fundamentally improved customer experience,
powered by new technologies, while structurally
lowering our cost base.
Success relies on a strong foundation of four key pillars:
1. Best Digital Experts
2. Agile Service Models
3. Advanced Digital Platforms
4. Innovative Ecosystems
1. Process/Agility
2. Technology
3. Skills / Culture
Digital Transformation for Telco
• Digital Transformation has different meaning for different industry
and organizations. Because the transformation journey for each
organization would a be unique experience. The journey depends
on the organizations transformation aspirations linked with its
objectives and strategy.
• The transformation journey for telcos would also
be dependent on their existing architecture,
regulatory landscape, and investment capability.
• Nevertheless, TM Forum has defined 10 Digital
Transformation journeys that a telco can take
part in achieving their transformation
objectives.
• Telecom operators around the world have
publically expressed their transformation goals.
By comparing their transformation journeys, we
can understand that, Process, Agility,
Technology, Skills and Culture have become the
cornerstones of their journey.
• The objective of this document is to provide an overview of the
Technology aspect of the Digital Transformation and to explore how
‘Open Digital Architecture’ (by TM Forum) would assist Telcos to
achive their transformation goals.
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4. Digital transformation is a continuous
process of multi-modal adoption of
digital technologies that
fundamentally change the way
government and private sector
services are ideated, planned,
designed, deployed and operated
such that they are personalized,
paperless, cashless, presenceless,
frictionless, and consent-based. - ITU
What is ‘Digital Transformation’ ?
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12. ODA Components – Decomposition
Core Function
Notifications /
Reporting
Process 1 Process 2
Event
Environment
Dependence &
Requirements
Management
& Operations Security
Core Function
Process 3 Process 2
Event
Management
& Operations Security
{ }
Open API
ODA Component 1 ODA Component 2
Following is a containerized view of the ODA Components.
1. Core function: Handles the specific processes and events related to the component.
2. Process : A process as defined by TM Forum e-TOM Business Process Framework
3. Event: The activity that follows the link 2 or more processes.
4. Management & Operations: The O&M function of the ODA Component (Which is
generally handled by a privileged role)
5. Security: Security configurations associated with ODA component. The security
configuration is different for each component and will be depended on the Security risk
assessment.
6. Notifications / Reporting: ODA component need to have a notification and
Reporting function built-in the component.
7. Environment Dependence & Requirements: ODA components may have
certain external inputs that they depend on. These inputs would
trigger/suspend/alter the functionality of the processes and events within the
Core function. For example, the dependency can be an external data source.
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13. ODA Use case – Managed Services Quoting Process
Stock Component
CPE Management Component
Enterprise Customer
Appointment
Component
Quote
Product Ordering
Agreement
1. Notify CPE EoL to Customer in advance
2. Request to generate the Quotation, based on
agreement
3. Promotions applied based on
Recommendations
4. Obtain customer approval for the quotation
and confirmation for the Order
5. Stock release request to Stores
6. Appointment request for Appointment center
7. Agree an appointment with the customer
(Change Management, Billing and payment components
are not illustrated in this usecase)
Promotion
Recommendation
Managed device upgrading takes a longer time due
to negotiations taken place between the Telco and
the Enterprise customer. The negotiations would
involve different levels of approvers at both Telco
and customer side. The ‘Quote’ component along
with ‘promotions’ and ‘Recommendation’
component would be able to automate the quoting
process. In addition to the reduction in Human
resources required, it will also reduce the fraud risk,
associated with any traditional quotation process.
Following are the automated steps followed in the
Business Process.:
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17. ODA Ambitions
Accelerate Time-to-Market:
Telco product launch cycle time is traditionally higher than launch time of a software development companies. On-premises implementation (compared to
cloud), complex systems and internal processes, lack of IT-Business synergy, extensive regulatory compliance (in some markets), etc. are key challenges in
improving the time-to-market.
ODA, through modular and reusable software components, cloud-native deployment, etc. provides the agility required in product experimentation and
deployment. One of the ODA principles is that, Technology function should work as a Business function in product development.
Monetize 5G:
5G unlike its predecessors does not follow a fixed architecture, but provides a service based architecture that can be customized based on Telco’s strategy. On
the other hand, apart from the superfast data speed provided to customers, 5G will not directly increase telco revenue unless a monetization strategy is
implemented. ODA support 5G Monetization use cases through breaking the barrier between Business and Technology teams, catalog based products, and
Open API based integration with partners (e.g. Ports, large manufacturing firms, and private 5G network support).
Optimize Capex/Opex:
Capital and Operating expenditure have never become more important for Telcos, with the reducing margins YoY due to reduced chargeable rate per MB (for
data) and per minute (for voice) with the introduction of competitive Buffet styled bundled products. The situation has caused a ‘returns to scale’ issue in
Telcos, as the extra production in the bandwidth has not yielded proportionate returns.
ODA provides Telcos the opportunity for standardizing software components, open standards/APIs to minimize customization and integration costs, cloud-
native deployment, zero-touch automation, etc., which in turn would significantly reduce the capital and operating expenditure.
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Customer Experience:
Customer experience is the backbone of the success of telco. Telcos do not enjoy lock-in benefits advantage anymore, due to hassle free number portability
process implemented. Customer experience also has both negative and positive ripple effect on NPS.
ODA supports Omni channel interaction providing uninterrupted 3600 customer view, personalized product and promotion recommendations (through AI),
abundant choices of channels/partners/platforms, etc.
18. Enterprise Digital Transformation – Myths !
1. It is automating your manual processes
2. It is End-to-End Automation
3. It is conducting all your activities through computers (i.e. IT Systems)
4. It is selling Products digitally
5. Digital Transformation and Digitization are same
6. Digital transformation means updating the website and creating an app
7. It is about using new Technologies (AI, ML, NN, RPA, BC, SDN, 5G, Big-Data, etc.)
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23. What is an API ?
Application programming interfaces, or APIs, simplify software development and innovation by enabling applications to exchange
data and functionality easily and securely. An API, enables companies to open up their applications’ data and functionality to
external third-party developers, business partners, and internal departments within their companies. This allows services and
products to communicate with each other and leverage each other’s data and functionality through a documented interface.
Developers don't need to know how an API is implemented; they simply use the interface to communicate with other products and
services. API use has surged over the past decade, to the degree that many of the most popular web applications today would not be
possible without APIs.
What is an Open API ?
Open APIs are open source application programming interfaces you can access with the HTTP protocol. Also known as public APIs,
they have defined API endpoints and request and response formats.
Source : IBM
29. ODA Use case – Customer Ordering a Device
Customer
Supplier Partner
Party
Customer
Payment method
Document
Federated Identity
Agreement
Product Ordering
Product Offering
Qualification
Loyalty
Shopping Cart
Promotion
Sales
Shipment Tracking
Stock
1. Customer Bank
2. Customer Employer
3. 3rd Party Loyalty provider
4. Crypto Currency
5. Digital Wallets
6. Payment through courier
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• Telco customer product and service
ordering process would not be much
different to similar services offered by
leading digital platforms such as Amazon,
Google Play store, Apple Store, etc.
[Opportunity]
• Telco services are usually regulated and
have to comply with certain requirements
providers (e.g. Customer Authentication),
which are not applicable for standard
ecommerce service providers. [Challenge]
• The use case depicted here involves
numerous partners. The end-to-end process
is automated and Zero-touch.
Distribution
Partner
External
Authentication
Agency
31. Factors Driving Telco Digital Transformations
1. Declining traditional connectivity based revenue streams
2. Increasing direct cost (Hardware, License, Total cost of
ownership, etc.)
3. Time to market delays
4. Sourcing delays
5. Friction in the processes, and integrating
systems/applications
6. Limited business models and partnerships
7. Security risk exposure
8. Data governance and Privacy concerns
9. Product experimenting difficulties
10. Competition from OTT (Over the Top) players
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35. Tier One: Operational efficiencies. Ford adopts new automated vision-based
inspection of paint jobs in its plants through augmented and virtual reality, the
Internet of Things (IoT), and AI. Using these technologies, the company improves
blemish detection and reduces defects in its cars. In this case, data is generated by
new technologies from factory assets, and AI uses this data to detect and prevent
manufacturing defects in real time.
Tier Two: Advanced operational efficiencies. Caterpillar installs sensors on its
construction equipment products to track how each of them is used at a construction
site. It finds, for instance, that customers use their motor graders to level lighter
gravel more often than to level heavier dirt. Utilizing this insight, the company
introduces a cost-efficient motor grader primarily designed to level gravel rather
than dirt.
Like Ford in the previous example, Caterpillar here benefits from operational
efficiency gains by improving product-development productivity. The difference,
however, is that the company’s sensor data comes from customers using their
products, not from manufacturing plant assets. That customer dimension, of course,
poses additional challenges. The efficiency gains in this tier also extend beyond asset
utilization.
Tier Three: Data-driven services from value chains. GE tracks product-sensor data
from their jet engines, analyzes it using AI, and offers real-time guidance for pilots to
fly in ways that optimize fuel efficiencies. GE then appropriates a part of their
customers’ cost savings through new annuities from “outcome-based” revenues.
Their customers, in other words, pay GE a part of what they save from fuel
efficiencies, in addition to what they pay for the product.
Here the initiative entails changing the prevailing business model from one that’s
designed to produce and sell products to one that provides data-driven services to
digital customers. GE’s R&D, product development, sales, and after-sales service
units are all digitally connected to receive, analyze, generate, share, and react to
sensor and IoT data from thousands of discrete products in real time. Because this
drives new revenue streams, it does more than just enhance operational efficiency.
Tier Four: Data-driven services from digital platforms. Peloton uses product-sensor data from its
exercise equipment to create a community of users and to match individual users with suitable
trainers. Peloton’s products generate user-interaction data, which the company then uses to facilitate
exchanges between its digital customers and various third-party entities outside the realm of its value
chains. AI algorithms match specific users to suitable trainers analyzing product-user interaction data,
very much like how Uber matches riders with drivers using data from their apps.
Like GE in the previous example, Peloton here is generating new revenues from its data-driven
services — but by extending its products into digital platforms. This tier of digital transformation is
the most challenging for industrial-era legacy firms, and for firms operating with value-chain-driven
business models and little experience with digital platforms.
Digital
Efficiency
Source : HBR
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40. TYPE OF PROJECT COMPANY BUSINESS FUNCTION CASE STUDY
Process Improvement
and innovation
AT&T
Customer Services
• AI and Machine Learning applications
• Efficient customer assistance
• Optimized schedules for technicians
• ML-based incident management program managed 15
million alarms per day
Innovation
Globe Telecom
Product and customer
experience
• Implemented ML and cloud to enhance omnichannel
customer experience
• Better business decision
• Improved customer experience
• Boosted product optimization
Process Improvement
and innovation
Deutsche
Telekom
Customer Service
• Processes about 80% of the queries and reduces the load
on employees.
Source: https://research.aimultiple.com/telco-digital-transformation/
Digital Transformation Success Stories / Use cases
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42. Final Remarks – ODA Assurance Provider’s Take
1. Ensure Digital Transformation drives are built on underlying 7 ODA Concepts and 5 ODA Principles
2. Are we on track, on the 10 Digital Transformation Journeys ?
3. Measure the Digital Enablement and Digital Efficiency level
4. Assess the maturity over 6 Digital Transformation Maturity areas
5. Assess the reporting over 30 Strategic KPIs for Digital Transformation
6. Digital Transformation Governance Review (Concepts, Principles, Design, AI Governance, API Governance, Data
Governance, Security Governance)
7. Periodic / Continuous reviews based on inputs from Intelligence Management Domain (Risk Assessment,
Performance Management, Recommendation, Process Flow, etc.)
8. Review Biasedness of Training Data, and Data Modeling.
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