HKT s Digital Transformation Journey

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1 HKT s Digital Transformation Journey Peter Lam Managing Director Engineering, HKT 15 May 2017

2 Current Business Challenges Instant Provision Self Apps OTT IOT Partnership New VAS Solution-based Cloud New Content Telecommunication Business FMI Mobile To face up challenges by OTT / Digital s providers at all fronts, Telcos need to embrace changes and transforms themselves from CSPs into Providers of Integrated Digital s Improve Customer Experience Maintain Market Leader Position Enable Digital Future Growth 2

3 Digital Transformation Scope A deep transformation is therefore required, ranging from business process, service offering, customer facing channels, customer engagement model, all the way down to systems / infrastructure. Strategic Transformation Operational Transformation Network Transformation Re-envision business models Position as a communication platform for voice, data, video, text Not tied to a technology or architecture, but about connecting people, ideas, machines that need to interact with each others (like Google, Facebook... which are all platforms) Streamlines and automates processes, e.g. subscriber selfprovisioning Provides subscriber with real-time service management through online portal without human operators Infrastructure virtualization to accelerate service creation and delivery A Complex project involving network infrastructure, front-end and back-end supporting system, process & talent development Communication Platform as a for Humans, Machines and etc Business Processes Automations, Enabling Customer Self-serve Channels Infrastructure Cloudification with New Technologies 3

4 Digital Transformation with Open Digital Maturity Model & Design Thinking A Transformation is necessary, but Open Structured Framework : To measures & benchmarks against peers or themselves while advancing Digital Transformation Digital Where are we now? Maturity Model Where do we want to be? Design Thinking Customer Centric Methodology : To realize Digital Transformation & build up the ROADS experience optimally How do we get there? GOAL 4

5 HKT Experience: Product Development Model Broadband Data Cloud TV Product Team Product Team Product Team Product Team Each Product Development teams have their own target, strategy & action plan How to collaborate to bring in the best benefit to the customer / company? 5

6 HKT Experience: Product Development Model Broadband Data Cloud TV Product Team Product Team Product Team Product Team We need to transform! We need to interconnect with Microsoft Azure, Amazon, etc. to build up competitive edge of our Date Network service! This will harm the competitive edge we currently have! 6

7 HKT Experience: Product Development Model Broadband Data Cloud TV Product Team Product Team Product Team Product Team Open Digital Maturity Model help to review current situation Why there are such gaps? Why don t investing on & making use of our own Cloud resource?! AWS is more agile & cost effective in meeting our dynamic /special usage needs! What is the best Product Evolution Roadmap? 7

8 Open Digital Maturity Model Assessment in HKT An assessment conducted in HKT Representatives from : Product / Marketing teams / Customer s Engineering / IT 8

9 Assessment Categories of Open Digital Maturity Model 9

10 Introducing Design Thinking for Digital Transformation ROADS Experience Buying Design Thinking & Architectural Thinking Customer Experience Driven Digital Operation Provisioning Aware Using The Operation Assurance Design/Develop/ Procure Loyalty Pay Missing Link Billing/ Revenue Customer Retainment After-sale Customer Care Customer Experience Telecom Operation To fill up gaps identified in Open Digital Maturity Model Assessment To deliver Customer centric service with ROADS experience 10

11 Applying Design Thinking in HKT HKT started a series of Design Thinking Workshop with IDEO 11

12 Project Earth HKT Digital Transformation

13 Challenges to Start Embarking the Project How to engage support from different business units within the company? Top Management -Buy-in & Drive How to define the scope of the project so as to best achieve the Design Thinking -Human Centric Methodology goal? How to measure the progress, improvements & KPI of the project? Open Digital Maturity Model - A rigorous benchmarking tool to assess digital transformation progress 13

14 Our Expectations Area Before (Time consumed) After (Expecting Time) ROADS No Yes Order Capture (e.g. one communications) >10 Systems & Portals, Multiple Orders by fulfillment team (~ 3 hours) Single System, Single Order by triggered by end Customers / service Consultant / CS (On-Line) Product Catalogue Multiple catalogues in different systems Single catalogue in one front-end Product & Workflow setup (existing templates) Product & Workflow setup (new service / templates) Split Bill Customer Self-service Customer profile Network Setup (e.g. Enterprise IP) Data Modeling Manual flow between multiple technical teams (IT, Product, Marketing, CAP, etc.) (~ 4 weeks) Manual flow between multiple technical teams (IT, Engg, ASD, Product, Marketing, CAP, etc.) (~ 4 weeks) Not Support by System, all done by manual work (Excel) Limited Consultant to setup the product upon Marketing predefined rules and allow customer real-time subscription (< 2 hours ) Deliver Real-time, Online, DIY service experience according to Open Standards New service creation within weeks or days Line-based single view Engg setup including capacity review + review of all existing rules to avoid conflict (~ 2 4 weeks) Silo based, proprietary Difficult for big data analystics Add on building blocks by Engineering/IT/ASD to be used by Product / Marketing team to build service (in hours) Supported by Enabling Network and Systems, configurable by Customers / service Consultant Customer portal supporting ordering & DIY configurations in real-time Single holistic view including fixed & mobile services, broadband, data, CPE, Cloud, VAS, etc. DIY configuration by end Customer / service Consultant (~ real-time) Aligned with best practice and open standards Readily available for big data analytics New Development (~ 3 6 months) (~2 4 weeks) 14

15 HKT Digital Transformation Roadmap Today Mid-Term Long-Term Mid-Term: Revamp OSS with BES & IES (existing) Long-Term: Virtualize infrastructure Enhance Orchestration for Creation One-Network (existing) One-Network (existing) Network Cloud and Orchestration 15

16 HKT Digital Transformation Roadmap 2016 Planning & Design Overall Architecture & Roadmap Design Thinking 2017 Streamline Operation BES focus on corporate market Q4 pilot launch Network Cloudification Network Cloudification Apply SDN / NFV Prepare for 5G One Communications Commercial Mobile 16

17 OSS Revamp : Way to Achieve Green Field Platform, new processes for both new & existing services Key Requirements: One Single System for all products and services Easy to use and quick time-to-market Product Catalogue Online quoting with approval workflow Customer portal for real-time self-provisioning Holistic view of customer for operation efficiency Billing capabilities (split billing, bill organization) 17

18 OSS Revamp : Functional Architecture Voice BES Self- Sales Campaign Mgmt Mobile Apps Lead & Opportunity Mgmt Product Mgmt Knowledge Base Data Revenue Mgmt Biz Analysis CPE Human Account Manager Direct Sales Shop Call Center Partner Channel Social Promotion Customer Segment Loyalty Mgmt Partner Mgmt Contract Mgmt Shopping Cart Commission Mgmt Quote Customer Mgmt Case Mgmt Order Mgmt Stock Mgmt Mediation Complaint & Problem Handling Provision ITSM Order Mgmt Resource Mgmt & Configuration Cloud Mobile Open API OSS Billing Biz Analysis Marketing Desk Fulfillment Billing Web Base Capability Order Capture TV Self- Channel Sales Customer Care Resource Allocation Broadband NORA EUNIS TSMS Network Configuration Rating & Charging Pool Sharing Reports Billing Onsite Installation Activation Engine Split Personal & Organization Bills Customer Analytics : HKT Systems Settlement Workforce Mgmt Financial Mgmt & Payment Recommendation Engine : Huawei Systems 18

19 Revamp OSS: Redesign for Generic Order Capture Advantage : Detach line assignment from order capture process + customer based Generic Order System + Holistic Customer View Current BOSS (Dragon, BOM, CXS) U Customer A Customer B Customer C Line 1 Line 2 Line 3 Dummy Line4 V W X Y Z Order Capture Flow Selling service BUT distort in system and input as selling line New BES U V W Customer D X Y Z Capture Flow Line 1 Location A Line 2 Location B 19

20 Network Cloudification: Blueprint Telco Cloud IT Cloud Infrastructure Enabling System (IES) Business Enabling System (BES) Virtualized Network Function (VNF) OCS MDS-P MDS-C vepc vims vepc (for IoT) Other VNF (Real-time Rating) (Provisioning Mediation) (CDR Mediation) SDN + Datacomm Network IT / Datacomm Infrastructure Cloud Platform (H/W & S/W) Cloud Platform (H/W & S/W) Cloud Platform (H/W & S/W) Cloud Platform (H/W & S/W) 20

21 CSCF ATS USN UGW..... CSCF ATS USN UGW..... Project Earth 2017 Master Plan Commercial Mobile (Ph.1A Rel.1) RFS One Comm & Enterprise Cloud (Ph.1A Rel.2) RFS January February March April May June July August September October November December W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 W14 W15 W16 W17 W18 W19 W20 W21 W22 W23 W24 W25 W26 W27 W28 W29 W30 W31 W32 W33 W34 W35 W36 W37 W38 W39 W40 W41 W42 W43 W44 W45 W46 W47 W48 W49 W50 W51 W52 HKT-Huawei Project Earth Agreement KSG2 Ready for VNF s/w I&C FTN1 Ready for VNF s/w I&C New Network Ready Equipment Delivery / NFVi I&C (KSG2) High Level Design (HLD) / LLD VNF I&C / Integration / Testing OPEN ROADS Event 2 nd Site (FTN1) I&C / Integration / Testing Integration with BES to Support Ph.1A E2E Test OCS BES New MDS-P New MDS-C BOM (MIP) ONE MDS-P ONE MDS- C IES IES vims vep C VNF vims vepc VNF Existing ONE-CORE Network CTC NFVi CTC NFVi 21

22 Customer Journey Envision Existing Customer Journey Explore websites, brochures, events marketing Call Commercial Hotline Work with sales persons Discuss what is needed Customer Issue Order with Sales HKT internal fulfillment Delivery ~1 2 Days ~1 day ~1 day Future Customer Journey Explore HKT Commercial service websites Select different products from single portal Explore options according to selection Customer Issue Order Last Mile Delivery Online Chat with experts for any enquiry and status checking 15 Minutes

23 Digital Transformation Sharing Workshop Telkom Indonesia shares the same vision that Digital Transformation is a Teleco key focus A two day 3-parties (HKT, Telkom Indonesia & Open ROADS Community) workshop is conducted in Feb with very fruitful sharing and discussions 23

24 Way Forward Project Earth Quick Win Completion in Q4 Deliver 3 digital services of corporate market Open ROADS Community Hong Kong Meeting HKT as a Production Platform show case Digital Transformation Project Scope Extension Cover other digital services of corporate market Expand to digital services of consumer market New Revenue Stream & Profit Growth Enable HKT to become an Omni-Channel Player for digital services Enable application of IoT, Big Data, Virtual Reality, Augmented Reality, AI To be a Eco-System Player in future 24

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