ICE/Telco/Services Business Transformation : Success Factors and Why ?

Importance of Business Process Transformation

Increasingly, and as a worldwide trend, companies go through business transformation considering the design and alignment of the strategic aspects and goals, business process and organizational aspects, information aspects, application aspects and technology aspects.
One of major transformation programs is focusing on the Customer Experience Management with its 4 corner stones namely Customer end to end processes, Service Quality Management, Brand and Marketing (Products/services).
The Telco industry, via TM Forum, defined 7 typical customer end to end processes:

  • Request-to-answer:This process is comprised of activities relevant to managing customer requests across all communication channels (customer interfaces).
  • Order-to-payment: This process deals with all activities which convert the customer request or an accepted offer into a ‘Ready for use’ product.
  • Usage-to-payment: This process deals with all activities related to the handling of the product/service usage.
  • Request-to-change: This process deals with all activities which convert the customer‘s change request into a ‘Ready for use’ product.
  • Termination-to-confirmation: This process deals with all activities related to the execution of customer‘s termination request.
  • Problem-to-solution: This process deals with a technical complaint (problem as unplanned interruption to a product service or reduction in its quality) initiated by the customer,analyzes it to identify the source of the issue, initiates resolution, monitors progress and closes the trouble ticket.
  • Complaint-to-solution: This process deals with a complaint (a customer inquiry in which the customer is not pleased with a product or the handling speed of an inquiry problem) initiated by the customer, analyzes it to identify the source of the issue, initiates resolution, monitors progress and closes the trouble ticket.
These end to end processes will implement policies addressing specific expectations linked to the customer needs (Customer Journeys).
A good starting point for this transformation, when the desired performance is not achieved or with inefficient operations, is business process transformation which includes: Business Process Strategy, Business Process Maturity Assessment, Business Process design, Business Process reengineering and business process analysis and Optimization. Such analysis and optimization is crucial to ensure and achieve the desired business performance. The performance vision should be in a balanced way considering:
  • Customer Experience and Satisfaction with its key performance indicators such as:
    • Mean Time Request To Answer which measures the end to end execution time
    • % of requests executed by committed date
    • % of requests requiring rework
  • Operational Efficiency with its key performance indicators such as:
    • Cost of Customer Management Process
    • Customer Management Process as a % of OpEx
    • Full Time Employee (FTE) efficiency
  • Cost/Financial aspects with the ralted key performance indicators such as:
    • OpEx (operational expenditure)
    • CapEx (Capital Expenditure)

Success factors for the Business Process Transformation

The success factors to achieve the desired performance and benefits of Business Process Transformation are:
  • Enterprise Architecture: which will, for business process transformation, ensure alignment between strategy and business processes or re-use of process deliverables for any merger, expansion or reorganization.
  • Business Process Management Best Practices and Standardization: For example:
    • The process design should include Triggers, Preconditions, Post-conditions, Actors, Steps, Assigned Business Objects (Information), Assigned Macro Performance indicators and Business rules
    • Use of eTOM/ITIL for Customer Requests Management
  • Use of Process Optimization Techniques (Ex.: Kaizen, Lean Six Sigma …)
  • Change Management: Communication, Leadership/Sponsorship and Organization Optimization
  • Skilled resources in the above techniques to perform the business process transformation

Why adopting the success factors?

The companies, which adopted and performed the business Process Transformation using the above techniques, obtained Return On Investment (ROI) and Value On Investment (VOI).

Potential risks for Business Process Transformation without success factors

The risks of not adopting the success factors are:
  • Non-achievement of the desired performance and benefits
  • The buy-in of the process users is not guaranteed
  • Major negative impact on the decision making if the information manipulated by the processes and the related KPIs are not well designed and optimized
  • Major impact on the CapEx for the process automation project while considering this golden rule:
    • If we automate an inefficient operations, the inefficiency will be magnified (“Bill Gate”)

Example from the Technology/Telco industry

The example is for a service company which had a lot of issues in meeting customer requests. The major issues were low revenue, low % of orders (customer requests) delivered by committed date and high Mean Time Order To Activation (Internal Time to Fulfill customer request). Business Process Transformation was adopted as Market De Facto solution. For this transformation, Enterprise Architecture, standardization and Lean Six Sigma (Process Optimization Technique) were used. As a result, the performance was improved as per the details below:
  • Customer Experience/Satisfaction
    • Increase in % of orders delivered by committed date by 67%
  • Operational Efficiency
    • Decrease in the Mean Time Order To Activation by 36%
  • Cost/Financial Aspect
    • Decrease in the Cost of Customer Management Process
    • Increase of the Revenue by 55% for a specific customer segment and product line.