E2E Digitalization: From Enablement to Exploitation

Transcription

1 E2E Digitalization: From Enablement to Exploitation José Manuel Gascón Director of Global IT Strategy & Transformation Telefónica 2017 TM Forum 1

2 Index 1. Context: What is E2E Digitalization 2. Enabling the capabilities 3. E2ED to accelerate Exploitation 2017 TM Forum 2

3 E2E Digitalization is a complete business transformation with clear objectives and an impact on both the customer and the company E2E Digitalization objectives E2E Digitalization Transform the way we interact with our customers Evolve our products and services Change the way we work internally based on automation and data Omnichannel experience Real Time interactions Personalized Experience based on context Commercial simplification Unified management of products Seamless and fast integration with 3 rd parties Process automation Data based decisions Smarter tools Enablement IT Transformation Transformation Exploitation 4 th Platform App 2017 TM Forum 3

4 Zero Back office and a right mix of channels are the key aspirations of the digitalization Zero back-office Right mix of channels Automation of E2E processes Promotion of digital channels E2E Processes redesign: 0 errors Selfmanagement Onmichannel Redesigned customer oriented online channels Efficiency Effectiveness Full Automation Digital Customer Experience nplay Digital marketing and promotions Innovation in digital products and services Real Operating efficiency Customer Experience consistency Time Personalization Commercial effectiveness Enriched Customer Experience 2017 TM Forum 4

5 The initial approach focuses on Customer Lifecycle processes as the centre of the E2ED transformation Marketing Selling & Billing Customer Care & Servicing Customer Experience is supported by Business Processes that put together Business and Technology, enabling efficient and coordinated transformation: Selling and billing domain includes activities related to Sale and Products and Services Delivery to our customers. Customer care domain includes the processes when a customer contacts with us to carry out consultations, request changes, report technical problems or report complaints Marketing domain includes the processes for the creation, launch and withdrawal of new products and marketing campaigns management Retention and loyalty domain includes the activities that manage loyalty actions and customer retention actions (including ceases) Retention & Loyalty Telefónica End-to-End business process map is based on industry standards 2017 TM Forum 5

6 Right mix of channels (level of self-management) For each process, Digitalization aims to fulfill aspirations by Selfassisted and Automated interactions and Customer Satisfaction Non-automated operations Automated operations Self-assisted channels Self-assisted but Nonautomated Back-office Self-assisted & Zero Back-office % of interactions performed in Self-Assisted channels Digital Customer Experience Assisted channels Non-automated Front and Back-office (level of automation) Zero back-office Automated Frontoffice & Zero Back-office Web App IVR USSD that can be either DIGITAL CHANNELS or TRADITIONAL SELF- ASSISTED CHANNELS Customer Satisfaction Index % of interactions without manual processing (no backoffice or derivations) Automated interaction: All the steps in the process are automated Manual interaction: There is at least a manual step in the process 2017 TM Forum 6

7 Right mix of channels (level of self-management) Therefore characterization of each Customer lifecycle process is performed against E2ED objectives to asses opportunities Selling & Billing Lead to Order Lead to Order to Payment 100 Marketing campaings Information Request ILLUSTRATIVE Usage to Payment Changes Request Request to Answer Customer Care & Servicing Request to Change Complaint to Solution Problem to Solution 50 Product Launch 1 Technical problems Claims Payments and Top ups Retention & Loyalty Marketing Insight to Loyalty Termination to Confirmation Concept to Market Campaign to Lead 0 0 Termination Zero back-office (level of automation) Loyalty Management 50 Sales & ordering TM Forum 7 Customer satisfaction High Medium Low Size of bubble: volume of interactions

8 Right mix of channels (level of self-management) so each OB can be positioned on the E2ED matrix and set the target area based on its context OBs position OB positioning in terms of automation and mix of channels results form the aggregation of the transactions of all processes (% of volume of customer interactions performed self-assisted / automated) OB1 OB Target position area E2ED Digitalization plans aims moving OB positioning Up and right to: Increase efficiency Improve Customer Experience Target area depends on each OB context constrains: Prepaid post paid mix ARPU Smartphone penetration Banking or Credit card penetration Zero back-office (level of automation) 2017 TM Forum 8

9 Right mix of channels (level of self-management) So far the drill down of E2ED by process reveals two clusters of processes with different characteristics and Digitalization actions Key analysis to monitor Product Launch 1 Termination Zero back-office (level of automation) Technical problems Loyalty Management Marketing campaigns Claims 50 Sales & ordering Changes Request 2 1 Information Request Payments and Top ups TM Forum 9 Two main challenges ILLUSTRATIVE 1 Processes with large volume of interactions performed recurrently by the customer and highly automated but with room for improvement in digital channels adoption Consumption and balance check Top-ups 2 Key Sales and Care processes with low level of automation causing poor customer experience and dissatisfaction on the moments of truth: When purchasing When having technical issues When having complaints Customer satisfaction High Medium Low Size of bubble: volume of interactions

10 E2ED Transformation plan aims to transform processes through 4 type of impacts Right mix of channels (level of self-management) Expected changes - appearance on the matrix Automation of the interactions Movement right along the axis Request to change Request to change Usage to payment 2 Achievement of the right mix of channel Movement up along the axis 50 Problem to solution Complaint to solution Usage to payment 3 Improvement of customer experience Color of the bubble from red to yellow and green 4 Decrease on the volume of not desired interactions Reduction of the size of the bubbles Zero back-office (level of automation) TM Forum 10 Customer satisfaction High Medium Low Size of bubble: volume of interactions

11 The E2E Digitalization plan includes two types of transformation initiatives: Enablement & Exploitation Enablement Exploitation We are enabling capabilities that are required to support the customer expectations from a digital company IT Initiatives (i.e., enable and improve digital capabilities, process automation ) Smartphone as Channel (i.e., building an enriched customer engagement ) Digital Telco Experience + But capabilities enablement is not enough, we need to ensure that the business is actually using them, exploiting all the possibilities that they provide, and using them through the channels that we want. Process & CJ transformation initiatives i.e., process redesign to improve operations and customer experience ) Commercial policies and culture initiatives (i.e., empower customers, evolve commercial policies and culture) Cognitive computing (i.e., new functionalities that will empower customers) Adoption initiatives (i.e., enforce adoption of selfassisted channels) 2017 TM Forum 11

12 Index 1. Context: What is E2E Digitalization 2. Enabling the capabilities 3. E2ED to accelerate Exploitation 2017 TM Forum 12

13 Retention & Loyalty Customer Care & Servicing SOA Integration Security Selling & Billing Convergent DataWare House Marketing Enablement is mainly carried out with Full Stack and Satellite projects Business processes join the business and IT perspective to make the best use of technology in order to: Offer a differential customer experience (e.g. real-time, self-assisted, omni-channel ) Optimize efficiency and drive business benefits Not Exhaustive MARKET P & S LEAD ORDER USAGE PAYMENT SOLUTION TERMINATION Concept to Market Campaign to Lead Workforce Management Activation & fulfillment Campaigns (RTD) B2B Sales Funnel Commissions Lead to Order Order to Payment OSS Usage to Payment FULL STACK Request to Answer Request to Change Problem to Solution Complaint to Solution Commercial Logistics Trouble Ticketing E2E Diagnosis Loyalty Insight to Loyalty Full Stack BSS + part of OSS coverage Termination to Confirmation Telefónica End-to-End business process map is based on industry standards 2017 TM Forum 13

14 around the entire Telefonica footprint Mexico 33,8M CAM 15,2M Venezuela UK 24,6M Germany 45,5M Colombia 12,2M 17,4M Brazil Ecuador 97,3M 5,2M Uruguay Perú 1,8M Spain Telco ,1M CAM includes: Guatemala El Salvador Nicaragua Panama Costa Rica Chile 12,4M Argentina 27,0M 41,1M Full Stack In-House Full Stack Ad-hoc tactical transformation 2017 TM Forum 14

15 All in all, transformation is already a reality in Telefonica Full Stack/Core BSS Transformation Transform core processes and systems with 6 OBs with Business lines live Satellite projects Completing the structural transformation Online charging System Consolidating in a Single OCS % Customers in single OCS 1 OB Live 2014 In House 2 OB Live 2015 Under review 6 OB Live OB Live Commercial Logistics + B2B Presales (BI_EN) + E2E Diagnosis + Campaigns + Commissions + Security % 51% 59% 67% 2 OB +8pp heading to OCS2020 in % 75% 2018SP 2019SP % Customers migrated to Target Stack 0% 5% 12% 13% 42% 63% 73% (81% of HispAm) TM Forum 15

16 Index 1. Context: What is E2E Digitalization 2. Enabling the capabilities 3. E2ED to accelerate Exploitation 2017 TM Forum 16

17 Exploitation is accelerated by defining a common E2E Digitalization methodology and contextualized plans Customer journeys 3 dimensions of impact E2E business processes Customer experience IT Operations Input from key areas CCDO Business CDO IT Control Strategy E2E Digitalization Methodology Huge and complex transformation requiring a coordinated effort across the company, involving Business, IT and Operations Multidisciplinary team involved from key areas leading Local and Global initiatives 2017 TM Forum 17

18 The transformation plan should meet a set of global principles to be effective Led by business Clear transformation owner Business decides why and when Business defines customer experience It enables transformation Reporting directly to CEO (but not CIO / CTO) Connected with the leadership of the major structural programs Empowered to execute companywide transformation Interdisciplinary teams Core team centered on customer view: CCDO Business CDO IT Control Strategy Support on other areas when needed (e.g., network, operations) Leverage of global assets and support Leveraging on Global assets like: customer processes, taxonomy of customer journeys, KPIs, etc Ensuring consistency with company strategy and global transformation initiatives 2017 TM Forum 18

19 and some steps should be followed to succeed E2ED Acceleration methodology design Characterization of the OB Process level High-level characterization of OB s business Characterizatio n of volumes and costs E2E Digitalization characterization Prioritization and analysis Customer Journey level Selected Process Customer Journey Analysis Customer Journey prioritization Deep-dive on prioritized CJs to identify initiatives Plan definition Customer Journey level Definition of initiatives per Customer Journey Definition of roadmap with responsible Impact Customer Journey and process level Impact per Customer Journey analysis (KPIs) Impact per process analysis (KPIs) Overview of final impact 2017 TM Forum 19

20 The very first step of the plan definition, is the overall characterization of the OB business and market context - We contextualize the operation (customer volume, type of business, sources of income, competitive situation) and the macro variables of the country (standard of living, penetration of smartpone, bank and payment methods, etc.) - For characterization, we also analyse the monthly interactions (its activity with the volume of its processes, with an overview of channels, customer satisfaction and IT capabilities) and we do this by segment, by business, by process and by channel, assessed together with their current operational performance in terms of percentage of automated interactions 2017 TM Forum 20

21 Illustrative case: Processes characterization Size: % total interactions Customer satisfaction High Medium-Low Medium Low 2 priority groups: Request to Answer, potential to get lots of savings by increasing selfmanagement (i.e., ~3Mn assisted interactions /month 1 ) Problem to Solution, low levels of satisfaction with potential to be addressed Lead to Order to Payment still room for automation (i.e., 32K orders/month with manual intervention 1 ) Termination to Confirmation, self-assisted termination not available due to strategic decisions to be reviewed 2017 TM Forum 21

22 Illustrative case: Transformation initiatives & Expected impact Self-assisted channels use (%) 100 Redesign Customer Experience in Online channels New Support Area Improve Interactive Bill Prioritize Call to Contact Center based upon Customer s Profile Request to Answer Customer satisfaction index, pp +6 p.p. Usage to CSI for thispayment process Lead to order Size: % total interactions Campaign to lead Request to change Customer satisfaction High Medium Medium-Low Low Automate contracting at online 50 channels Optimize private area at online channels Redesign processes at store Lead to Order to Payment Order requiring manual interventions, % % Multichannel Problem Tracking Self-Diagnosis Technical Service Chat Problem to Solution Remote diagnosis and solution, % X 2, Complaint to solution Termination to Confirmation 0 0 Self-assisted terminations % Enable Termination in Online channels p.p. 100 Automation (% automated interactions) TM Forum 22

23 The goal is to achieve the right channel mix and the automation of operations Right mix of channels Self-assisted channels A B C Target zone Assisted channels A Incumbent Premium 4play OB in mature market 1 Positions of each OB in the E2E D matrix is not precise but a proxy of their current starting point Non-automated operations Zero Back-Office Automated operations B C Attacker 3play OB in non-mature market Big 3play OB in maturing market 2017 TM Forum 23

24 whose impact on both front and back are captured through a common selected set of KPIs Front Assisted channels Self-assisted channels Operational KPIs measures 4 Ebilling rate 5 % of sales in self-assisted channels 7 % Contacts Received in self assisted channel 8 % Unique users using self assisted channels 9 % Prepaid recharges in self-assisted channels 13 % of claims per type Mix of channels to assess whether right combination of self-assisted and assisted channels is achieved Efficiency and effectiveness of front and back offices to boost the reduction of errors and manual interventions Back Time To Market Time to Order Completion % Orders Requiring Manual Interaction % Stuck Orders Front Office 2 Up/cross-selling Effectiveness 6 Conversion rate in self-assessment channels 10 % Customers incidents reported more than once 11 Average Handling Time in Contact Center Real time activations/deactivations 12 First Call Resolution Rate 14 # Calls to Call Center per customer 15 Average Client Interaction Duration in PoS (Store) Back office interventions per interaction FTE Backoffice per customer Billing Time % Bills Requiring Manual Interaction Bills Issued Incorrectly 2017 TM Forum 24

25 We are following a consistent governance model with leadership of E2E Digitalization with 5 objectives to ensure traction and execution Ensure impact of E2ED plans in the OBs Support transformation plan definition and monitor impact Enabled by 2 elements E2ED program Objectives Boost transversality and holistic approach Standardize & Reuse Follow a holistic approach by including key areas leading other global or local initiatives Continuous industrialization of E2ED methodology and application at OBs Governance Learn & Leverage Gather and share best practices across OBs, and lessons learnt from more mature OBs Promote Digital Culture Lead change of mindset and communication efforts across the organization E2ED Team (global/local) 2017 TM Forum 25

26 balancing the coordination between global and local Lead E2ED program : Steer, Coordinate, Learn & Share Global Ensure common approach and define main objectives of E2ED Orchestrate the inputs and views from the different areas involved Review the progress of the OBs and check its fit with the objectives of the E2ED Monitor the capture of impact at every OB Collect and share best practices Own the execution : Delivery & Execution Local Define the plan according to local needs and ensuring that it is actionable, coordinating E2ED with other ongoing initiatives Ensure the execution the plan in a timely manner, according the established roadmap Track initiatives and deliver impact 2017 TM Forum 26

27 2017 TM Forum 27

28 and is built around the Customer lifecycle processes and linked with the Customer Journeys Customer Journeys taxonomy and operating indicators Customer Lifecycle as startint point We are reviewing the Customer Experience around the whole Customer Lifecycle Customer lifecycle E2E Processes Covering Customer centric processes but also the required enablers and support processes in front and back A set of 57 journeys is defined and aligned with e2e Business Processes Priorization and follow-up of impact on efficiency and on customer is measured in operating KPIs and customer experience KPIs Digital capabilities and E2ED IT Enablement KPI E2E processes are detailed at activity level, allowing to link digital capabilities and ultimately in the architecture The processes digitalization level is measured by E2ED Enablement KPI Capabilities Architecture KPI E2ED IT Enablement 2017 TM Forum 28

29 A set of capabilities must be enabled and exploited to achieve these aspirations towards our customers Customer lifetime Before buying When buying When using & paying When having questions When having problems Retention & Loyalty What does customer want? Personalized products and clear offers Data driven personalization Single catalog Flexible bundling Buy through any channel with real-time and full traceability E2E Order management Real time provisioning Context-based interactions Unified & accessible bill Real time upgrades Online credit & scoring Unified billing & invoicing Easy and reachable access to information Unique and 360 Customer view Integration with 3rd parties Real time, selfmanagement and accuracy Real Time notifications Auto diagnosis & remote resolution Transparency & Trust Real Time Decision Enablement Omni-channel and mobile first / Standardization, automatization and full convergence Prioritized development of digital products Digital promotions Proactive personalized offers Interactive bill Online recharges and add-ons Increase of self-assisted possible interactions Penalization of calls about Proactive status of available online info requirements Proactive retention Self-assisted termination Exploitation and targeted impact % Real-time offers increase x3 Online sales increase x4 Online recharges increase 20% Calls reduction x2,5 Self-technical resolution +40 pp Self-assisted termination 1 Targeted impact for TM Forum 29

30 impacting also our internal operating model Before buying When buying When using & paying When having questions When having problems Retention & Loyalty Enablement Data driven personalization Single catalog Flexible bundling E2E Order management Real time provisioning Real time upgrades Online credit & scoring Unified billing & invoicing Unique and 360 Customer view Integration with 3 rd parties Real Time notifications Auto diagnosis & remote resolution Omni-channel and mobile first / Standardization, automatization and full convergence Real Time Decision Back-office optimization Simplification and automation of manual operations, enabling real-time experience and reducing errors, e.g.: Integrated stock availability Billing info standardization Automatic scheduling of technical dispatching orders Efficient and smooth human interventions using data to take more informed and agile decisions, e.g.: Exploitation and targeted impact 2017 Processes efficiency and effectiveness Route tracking & optimization Optimize and redesign existing processes to leverage the new IT capabilities, e.g.: Commissioning model Commercial processes Design of new processes supporting digital interactions / channels, e.g.: Route tracking & optimization Online chat support/click to Call processes 40% Orders with manual intervention reduction 1 15% Bills issued incorrectly reduction 1 20% Calls derived to back-end reduction 1 80% Automated technical dispatches increase TM Forum 30