Applying eTOM (enhanced

Telecom Operations Map)

Framework to Non-
Telecommunications Service
Companies - An
Product/Service/Solution
Innovation Example
Alan McSweeney
June 11, 2014 2
As Its Simplest, Innovation Is
A good idea successfully implemented and operated

This implies the need for effective processes for generating
and identifying good ideas and for bringing them to
fruition
June 11, 2014 3
Successful Innovation Means
Having a function and associated processes for Product,
Solution and Service Lifecycle Management (PSSLM)
Structured approach to the introduction of innovations within
product/service/solution offerings from concept to delivery and
operation
There is no easy way to creating a new
product/solution/service designed for large-scale sale and
use
June 11, 2014 4
Move To Service Management
Trends in information technology such as cloud and XaaS
are moving companies from product to service and utility
suppliers
Evolution of telecoms companies mirrors the path many
companies want to follow
Move from provision of telecoms links to services (voice, data,
television, gaming, wireless)
Telecoms industry can provide a model for business processes
and best practices for other industries looking to move to greater
service orientation
Move to services can be challenging for companies
A structured approach to innovation in important in such a
move
June 11, 2014 5
Spectrum Of Product/Solution/Service
Product
Collection
Of Products
Provided As
A Package
Solution
Limited
Services
Extended Services
Such As Warranty
And Support,
Warranty Renewal
Utility
Services
Ongoing
Services
Services
Supplied
As Part Of
Solution
Solution As A
Service (Cloud,
XaaS, Utility
Services, etc.)
June 11, 2014 6
Migration From Products to Services
Product Solution
Limited
Services
Utility
Services
Ongoing
Services
Where Many
Companies
Are Now
Where Many
Companies
Want To Be
Need A Structured Process For
Innovation To Achieve Services Vision
June 11, 2014 7
Spectrum Of Product/Solution/Service
Sell Me
Products That
I Will Use To
Solve A
Problem
Sell Me A
Solution To A
Problem
Take
Responsibilit
y For
Operating
The Solution
To The
Problem
June 11, 2014 8
Innovation Means
Acceptance of change innovation implies and requires change

Innovation exposes an organisation to change

A secondary affect of successful innovation is the willingness of an organisation to
change

To be good at innovation means to be good at change

Innovation means welcoming change and being able to successfully deliver change

Innovation means continuously challenging accepted conventions

If you cannot change, you cannot innovate
June 11, 2014 9



Changes Implied By And Required For Move To
Utility Services
Changes
The Nature Of
The Business
Relationship
With The Customer


Implementing and Sustaining
Underlying
Organisation
Change
Changes
The Nature
Of Financial
Relationship
With The Customer

Changes
To The
Organisation
Cost Model

Changes
The Services
Provided

Changes
The Information
You Have On
The Customer
June 11, 2014 10
Changes Implied By And Required For Move To
Utility Services
Changes The Nature Of The Business Relationship With The
Customer: organisation becomes responsible for service
management (availability, continuity, capacity, change, release, risk,
security, access, facilities, compliance and many others)
Changes The Nature Of Financial Relationship With The Customer:
from initial payments and with smaller recurring component to near
continuous payment for service
Changes To The Organisation Cost Model: shift costs to organisation
from customer as initial and ongoing investment required to
generate recurring service revenue with consequences for cashflow
and growth
Changes The Services Provided: from initial supply with some
packaged services and ongoing support/warranty to service
management-oriented services
Changes The Information You Have On The Customer: you know
their pattern of usage of your service (product) and can obtain and
exploit such insights
June 11, 2014 11
eTOM (enhanced Telecom Operations Map)
Provides a detailed process framework for a telecoms utility
companies that can be adopted by non-telecoms organisations
moving to solutions as a service operating model
Developed by TM Forum - www.tmforum.org
eTOM -
http://www.tmforum.org/BusinessProcessFramework/1647/home.html
Reference framework that classifies and defines the business
activities used by a company involved in delivering (online) services
three major process areas:
Strategy, Infrastructure and Product concerned with planning and lifecycle
management
Operations concerned the core of operational management
Enterprise Management concerned corporate or business support
management
Offers the potential for non-telecoms companies to learn from an
effective operational framework
June 11, 2014 12
eTOM Business Process Framework Overview
Strategy,
Infrastructure
and Product
Operations
Enterprise
Management
Customer
Strategy, New Ideas, Products And Associated
Supporting Infrastructure Moved to
Production and Steady-State Operations
Fundamental Supporting
Business Processes Needed To
Run Any Business
Operational
Processes Sales,
Fulfillment,
Assurance, Billing
and Support
June 11, 2014 13
eTOM Business Process Framework - Detail
Strategy, Infrastructure and Product Operations
Strategy and
Commit
Infrastructure
Lifecycle
Management
Product
Lifecycle
Management
Operations
Support and
Readiness
Fulfilment Assurance
Billing and
Revenue
Management
Marketing and Offer Management
Service Development and Management
Resource Development and Management
Supply Chain Development Management
Customer Relationship Management
Service Management and Operations
Resource Management and Operations
Supplier/Partner Relationship Management
June 11, 2014 14
eTOM Enterprise Business Process Model Common
Structure
eSample business process model has a three pillar structure that is common to
other business process models
Generic structure that forms a template for specific actualisations
eTOM provides a detailed template for communications service providers that can
be applied to other similar service companies
Vision,
Strategy,
Leadership,
Business
Management
Operational Processes With
Cross Functional Linkages
Management and Support
Processes
June 11, 2014 15
Sample Enterprise Business Process Models - 1
Business
Controlling
Process

Processes That
Direct and Tune
Other Processes
Core Processes
Processes That Create Value for the Customer
Customer
Acquisition
Product
Delivery
Order
Fulfilment
Customer
Support
Enabling Processes
Processes That Supply Resources to Other Processes
Channel
Management
Supply
Management
Human
Resources
Information
Technology
Business
Acquisition
Business
Measurement
Process

Processes That
Monitor and
Report the
Results of Other
Processes
Customers Process Needs
Suppliers Processes
Business Environment
Competitors, Governments Regulations and Requirements, Standards, Economics
June 11, 2014 16
Sample Enterprise Business Process Models - 2
Supply Chain
Customers
Innovate
Sell
Align
Plan
Make Source Fulfil
Build
Finance People Information Environment Governance
June 11, 2014 17
Sample Enterprise Business Process Models
Common Structure
Vision,
Strategy,
Business
Management
Operational Processes With Cross Functional Linkages
Management and Support Processes
Develop and
Manage
Products and
Services
Market and
Sell Products
and Services
Deliver
Products and
Services
Manage
Customer
Service
Human
Resource
Management
Information
Technology
Management
Financial
Management
Facilities
Management
Legal,
Regulatory,
Environment,
Health and
Safety
Management
External
Relationship
Management
Knowledge,
Improvement
and Change
Management
Vision and
Strategy
Business
Planning,
Merger,
Acquisition
Governance
and
Compliance
June 11, 2014 18
Achieving the Potential New Product/Service/Solution
Innovation Industrialisation and Productisation
Industrialisati
on

Common
Implementation and
Operation
Approaches
Productisation

Defined Set of
Products/Solutions/
Services and
Packaging/Delivery
Options
Productisation is a pre-requisite for and an enabler of
industrialisation
June 11, 2014 19
Innovation and eTOM
Innovation is about managing the value from new ideas
New and enhanced existing products, solutions and
services are just one aspect of innovation
Product, Solution and Service Lifecycle Management
(PSSLM) is a generalised view of completing the innovation
process and achieving actualisation of ideas

June 11, 2014 20
Migration From Products to Services
Product Solution
Limited
Services
Utility
Services
Ongoing
Services
Where Many
Companies
Are Now
Where Many
Companies
Want To Be
Use Appropriate Elements Of eTOM
Process Framework To Achieve Services
Innovation And Transformation
June 11, 2014 21
Innovation Extends Creativity To Implementation
And Generation Of Value
Discern
Develop
Clarify
Verify
Implement
Market
Sell
Using a Structured Approach
to Industrialising Innovation
Maximises Value
Manage
June 11, 2014 22
Where Organisations Look For Innovation
Product/solution/service innovation is just one aspect of a
wider view of innovation
June 11, 2014 23
Where Organisations Can Look For Innovation
Finance
Business Model How Do You Make Money?
Networking and
Alliances
How Do You Work With Other Organisations For Mutual Benefit?
Processes
Core Processes How Do You Create and Add Value To Your Products And Services?
Enabling Processes How Are Core Processes Supported And Enabled?
Products
and
Services
Product
Performance
How Do You Design Your Core Products And Services?
Product System
How Do You Connect Or Provide A Common Platform For Your
Products And Services?
Service
How Do You Provide Value To Your Customers Beyond Your Core
Products And Services?
Provision
and
Delivery
Channel How Do You Get Core Products And Services to Market?
Brand How Do You Communicate Your Core Products And Services?
Customer
Experience
How Do Customers Feel When They Interact With Your Organisation
And Your Products And Services?
June 11, 2014 24
Product, Solution and Service Lifecycle Management
(PSSLM)
PSSLM is concerned with the functions and processes need
to define, plan, design, build, deliver, maintenance,
manage revise and retirement of all products, solutions
and services in the organisations portfolio
Enable the organisation strategic and business
product/solution/service vision
Drive internal and customer-oriented processes to meet market
demand and customer expectations

June 11, 2014 25
Product, Solution and Service Lifecycle Management
(PSSLM)
PSSLM belongs within Strategy, Infrastructure and
Product/Solution/Service (SIPSS) function
Responsibilities of SIPSS function
Develop strategy
Commit to the organisation
Build and resources infrastructure - supports the
delivery products, solutions and services themselves and
their associated functional processes
Develop and manage products, solutions and services
Develop and manage the supply chain
June 11, 2014 26
Strategy, Infrastructure and
Product/Solution/Service (SIPSS) Function
Innovation development of new
products/services/solutions lie in SIPSS function
SIPSS divided into
Horizontal functional groups
Marketing and Offer Management
Service Development and Management
Resource Development and Management
Supply Chain Development Management
Vertical process views
Strategy and Commit
Infrastructure Lifecycle Management
Product, Solution and Service Lifecycle Management
June 11, 2014 27
Strategy, Infrastructure and Product/Solution/Service
(SIPSS) - Horizontal Process Functions and Vertical Process
Views
Strategy, Infrastructure and Product/Solution/Service (SIPSS)
Strategy and Commit Infrastructure Lifecycle
Management
Product, Solution and
Service Lifecycle
Management
Marketing and Offer Management
Service Development and Management
Resource Development and Management
Supply Chain Development Management
June 11, 2014 28
Strategy, Infrastructure and Product/Solution/Service
(SIPSS) - Horizontal Process Function Details
Marketing and Offer Management
Service Development and Management
Resource Development and Management
Supply Chain Development Management
Market
Strategy and
Policy
Product and
Offer Portfolio
Planning
Product and
Offer
Capability
Delivery
Marketing
Capability
Delivery
Product and
Offer
Development
and Retirement
Sales
Development
Product
Marketing
Communications
and Promotion
Service
Strategy and
Planning
Service
Capability
Delivery
Service
Development
and Retirement
Resource
Strategy and
Planning
Resource
Capability
Delivery
Resource
Development
and Retirement
Supply Chain
Strategy and
Planning
Supply Chain
Capability
Delivery
Supply Chain
Development
and Change
Management
June 11, 2014 29
SIPSS Vertical Process Views
Strategy and Commit
Strategy, Infrastructure and
Product/Solution/Service
(SIPSS)
Responsible for the generation of
strategies and establishment of
business commitment in support of
the Infrastructure and
Product/Solution/Service Lifecycle
processes involving all levels of
operation from market, customer
and products/solutions/services,
through the services and the
resources on which these depend to
the involvement of suppliers and
partners in meeting these needs
Infrastructure Lifecycle
Management
Product, Solution and Service
Lifecycle Management
Responsible for the definition,
planning and implementation of all
necessary infrastructures
(application, IT and network), as
well as all other support
infrastructures and business
capabilities (operations centers,
architectures, etc.)
Responsible for the definition,
planning, design and
implementation of all
products/solutions/services in the
organisations portfolio to required
profit margins customer satisfaction
and quality commitments,
delivering new and retiring existing
products/solutions/services to the
market
June 11, 2014 30
SIPSS - Horizontal Process Functional Groups
Strategy, Infrastructure and
Product/Solution/Service
(SIPSS)
Marketing and Offer
Management
Service Development and
Management
Resource Development and
Management
Supply Chain Development
Management
Defines strategies, develops new
products/solutions/services, manages existing
products/solutions/services including retirement,
manages pricing, sales and channels and implements
marketing communications and promotion and
offering strategies
Plans, develops and delivers services to operations
domain for product/solution/service creation and
design, managing and assessing the performance of
existing products/solutions/services and ensuring that
capabilities are in place to meet future
product/solution/service demand
Plans, develops and delivers the resources - physical
and non-physical - needed by operations to support
products/solutions/services, manages and assesses the
performance of existing resources and ensures that
capabilities are in place to meet future
products/solutions/services needs
Focuses on the interactions required by the
organisation with suppliers and partners who are
involved in maintaining the supply chain network of
relationships that a service provider manages to source
and deliver products, supports sourcing decisions,
suppliers and partners selection
June 11, 2014 31
Horizontal Process Functional Structure
Four levels of process detail
within horizontal structure
Level 1
Level 2
Level 3
Level 4
June 11, 2014 32
Product, Solution and Service Lifecycle Management
Functional Structure Levels 1, 2 and 3
Product, Solution and
Service Lifecycle
Management
Marketing and Offer
Management
Service Development
and Management
Resource Development
and Management
Supply Chain
Development and
Management
Market Strategy and
Policy
Product and Offer
Portfolio Planning
Product and Offer
Capability Delivery
Marketing Capability
Delivery
Product and Offer
Development and
Retirement
Sales Development
Service Strategy and
Planning
Service Capability
Delivery
Service Development
and Retirement
Resource Strategy and
Planning
Supply Chain Strategy
and Planning
Resource Capability
Delivery
Resource Development
and Retirement
Supply Chain Capability
Delivery
Supply Chain
Development and
Change Management
Product Marketing
Communications and
Promotion
Level 1
Level 2
Level 3
June 11, 2014 33
Product, Solution and Service Lifecycle Management
Functional Structure
Functional view of what is needed to productise the results
of innovation
Not prescriptive of the approach
June 11, 2014 34
Marketing and Offer Management Levels 2, 3 and
4
Marketing and
Offer Management
Market Strategy
and Policy
Product and Offer
Portfolio Planning
Product and Offer
Capability Delivery
Marketing
Capability Delivery
Product and Offer
Development and
Retirement
Sales Development
Product Marketing
Communications
and Promotion
Gather and
Analyse Market
Information
Establish Market
Strategy
Establish Market
Segments
Link Market
Segments and
Products
Gain Commitment
to Marketing
Strategy
Gather and
Analyse Product
Information
Establish Product
Portfolio Strategy
Produce Product
Portfolio Business
Plans
Gain Commitment
to Product
Business Plans
Define Product
Capability
Requirements
Capture Product
Capability
Shortfalls
Approve Product
Business Case
Deliver Product
Capability
Manage Handover
to Product
Operations
Manage Product
Capability Delivery
Methodology
Define Marketing
Capability
Requirements
Gain Marketing
Capability
Approval
Deliver Marketing
Infrastructure
Manage Handover
to Marketing
Operations
Manage Marketing
Capability Delivery
Methodology
Gather and
Analyse New
Product Ideas
Assess
Performance of
Existing Products
Develop New
Product Business
Proposal
Develop Product
Commercialisation
Strategy
Develop Detailed
Product
Specifications
Manage Product
Development
Launch New
Products
Manage Product
Exit
Monitor Sales and
Channel Best
Practice
Develop Sales and
Channel Proposals
Develop New Sales
Channels and
Processes
Define Product
Marketing
Promotion
Strategy
Develop Product
and Campaign
Message
Select Message
and Campaign
Channels
Develop
Promotional
Collateral
Manage Message
and Campaign
Delivery
Monitor Message
and Campaign
Effectiveness
Level 2 Level 3
Level 4
June 11, 2014 35
Service Development and Management Levels 2, 3
and 4
Service Development and
Management
Service Strategy and Planning Service Capability Delivery
Service Development and
Retirement
Gather and Analyse Service
Information
Manage Service Research
Establish Service Strategy and
Goals
Define Service Support Strategies
Produce Service Business Plans
Map and Analyse Service
Requirements
Capture Service Capability
Shortfalls
Gain Service Capability
Investment Approval
Design Service Capabilities
Gather and Analyse New Service
Ideas
Assess Performance of Existing
Services
Develop New Service Business
Proposal
Develop Detailed Service
Specifications
Manage Service Development
Manage Service Deployment
Develop Service Partnership
Requirements
Gain Enterprise Commitment to
Service Strategies#
Enable Service Support and
Operations
Manage Service Capability
Delivery
Manage Handover to Service
Operations
Manage Service Exit
June 11, 2014 36
Resource Development and Management Levels 2,
3 and 4
Marketing and Offer
Management
Resource Strategy and Planning Resource Capability Delivery
Resource Development and
Retirement
Gather and Analyse Resource
Information
Manage Resource Research
Establish Resource Strategy and
Architecture
Define Resource Support
Strategies
Produce Resource Business Plans
Map and Analyse Resource
Requirements
Capture Resource Capability
Shortfalls
Gain Resource Capability
Investment Approval
Design Resource Capabilities
Gather and Analyse New
Resource Ideas
Assess Performance of Existing
Resources
Develop New Resource Business
Proposal
Develop Detailed Resource
Specifications
Manage Resource Development
Manage Resource Deployment
Develop Resource Partnership
Requirements
Gain Enterprise Commitment to
Resource Plans
Enable Resource Support and
Operations
Manage Resource Capability
Delivery
Manage Handover to Resource
Operations
Manage Resource Exit
June 11, 2014 37
Supply Chain Development and Management
Levels 2, 3 and 4
Supply Chain Development
and Management
Supply Chain Strategy and
Planning
Supply Chain Capability
Delivery
Supply Chain Development
and Change Management
Gather and Analyse Supply
Chain Information
Establish Supply Chain
Strategy and Goals
Define Supply Chain Support
Strategies
Produce Supply Chain
Business Plans
Gain Enterprise Commitment
to Supply Chain Plans
Determine the Sourcing
Requirements
Determine Potential
Suppliers/Partners
Manage the Tender Process
Gain Tender Decision
Approval
Manage Supplier/Partner
Engagement
Manage Supply Chain
Contract Variation
Manage Supplier/Partner
Termination
Gain Approval for Commercial
Arrangements
Negotiate Commercial
Arrangements
June 11, 2014 38
Product And Offer Development And Retirement
Levels 3 and 4 Process Details
Product And Offer
Development And
Retirement
Gather and Analyse
New Product Ideas
Research and analyse demographic, customer, technology and marketing information to
identify new product and offer potential opportunities, compare current capabilities
with the identified opportunities and develop new opportunity concepts
Assess Performance of
Existing Products
Develop New Product
Business Proposal
Develop Product
Commercialisation
Strategy
Develop Detailed
Product Specifications
Manage Product
Development
Launch New Products
Manage Product Exit
Analyse the performance of existing products to identify inadequacies and required
improvements using information from customers and from operational activities
Develop and document business proposals for the identified new product concept,
including a business case, identifying the new product requirements, service
components, development costs and anticipated benefits, risks and the competitive
positioning
Ensure that product specific pricing, sales channel support and regulatory approvals are
identified and agreed and developed ensuring that all commercialisation aspects of the
product development process associated with selling the product are covered
Develop and document the detailed product-related technical, performance and
operational specification including required product features, the specific service and
resource requirements and selections, the specific performance and operational
requirements and support activities
Ensure the co-coordinated delivery in line with the approved business case of all
required product capabilities for that business case across the organisation
Manage the initial introduction of new and enhanced products into the market and
handover to operations for ongoing rollout
Identify existing products which are unviable and manage the processes to exit the
product from the market, identify customers impacted by the exit, develop customer
specific or market segment exit or migration strategies, develop infrastructure transition
and/or replacement strategies
June 11, 2014 39
Sample Cross-Functional Scenario - Get Approval For The
Development Of A New Product/Solution/Service
Product/solution/service consists of components that can be reused to further
define and build new products/solutions/services
New product/solution/service proposal is then submitted for approval
Processes involved in this scenario are:
Product and Offer Portfolio Planning
Product Marketing Communications and Promotion
Product and Offer Development and Retirement
Service Strategy and Planning
Service Development and Retirement
Resource Development and Retirement
Product and Offer Capability Delivery
Service Capability Delivery
Resource Capability Delivery
Outputs from scenario
New product/solution/service with its associated services and resources developed,
tested and accepted
Configuration information including pricing rules and promotions
Steps can be iterated for rapid product/solution/service concept exploration and
examination
June 11, 2014 40
Process Interactions Get Approval For The
Development Of A New Product/Solution/Service
Product and Offer
Capability
Delivery
Product and Offer
Development and
Retirement
Service Capability
Delivery
Service
Development and
Retirement
Resource
Capability
Delivery
Resource
Development and
Retirement
Supply Chain
Capability
Delivery
Supply Chain
Development and
Change
Management
Product and Offer
Capability
Delivery
Product and Offer
Development and
Retirement
Service Capability
Delivery
Service
Development and
Retirement
Resource
Capability
Delivery
Resource
Development and
Retirement
Supply Chain
Capability
Delivery
Supply Chain
Development and
Change
Management
1
2
3
4
5
6
8 7
9
10
11
12
13
14
15
June 11, 2014 41
Process Interactions Get Approval For The
Development Of A New Product/Solution/Service
1. Provide Product/Solution/Service Development Plan
2. Provide Product/Solution/Service Development Plan
3. Provide Resource Infrastructure Requirements
4. Provide Product/Solution/Service Deployment Plan
5. Provide Service Infrastructure Requirements
6. Provide Supplier/Partner Capability Requirements
7. Provide Supplier/Partner Infrastructure Requirements
8. Provide Resource Infrastructure Requirements
9. Provide Supplier/Partner Required Capabilities
10. Provide Resource Infrastructure Plan
11. Provide Supplier/Partner Integration Plan
12. Seek Approval For Supplier/Partner Infrastructure and Integration Plan
13. Seek Approval For Resource Infrastructure Plan
14. Seek Approval For Service Infrastructure Plan
15. Seek Approval For Product Infrastructure Plan
June 11, 2014 42
Repeat Process Cycle At Greater Levels Of Detail For
Refinement and Iterative Delivery And Identification of
Appropriate Innovations
Product and Offer
Capability
Delivery
Product and Offer
Development and
Retirement
Service Capability
Delivery
Service
Development and
Retirement
Resource
Capability
Delivery
Resource
Development and
Retirement
Supply Chain
Capability
Delivery
Supply Chain
Development and
Change
Management
Product and Offer
Capability
Delivery
Product and Offer
Development and
Retirement
Service Capability
Delivery
Service
Development and
Retirement
Resource
Capability
Delivery
Resource
Development and
Retirement
Supply Chain
Capability
Delivery
Supply Chain
Development and
Change
Management
June 11, 2014 43
Use The Framework As A Checklist For
Product/Solution/Service Development
Marketing and Offer Management Market Strategy and Policy Gather and Analyse Market Information
Establish Market Strategy
Establish Market Segments
Link Market Segments and Products
Gain Commitment to Marketing Strategy
Product and Offer Portfolio Planning Gather and Analyse Product Information
Establish Product Portfolio Strategy
Produce Product Portfolio Business Plans
Gain Commitment to Product Business Plans
Product and Offer Capability Delivery Define Product Capability Requirements
Capture Product Capability Shortfalls
Approve Product Business Case
Deliver Product Capability
Manage Handover to Product Operations
Manage Product Capability Delivery Methodology
Marketing Capability Delivery Define Marketing Capability Requirements
Gain Marketing Capability Approval
Deliver Marketing Infrastructure
Manage Handover to Marketing Operations
Manage Marketing Capability Delivery Methodology
Product and Offer Development and Retirement Gather and Analyse New Product Ideas
Assess Performance of Existing Products
Develop New Product Business Proposal
Develop Product Commercialisation Strategy
Develop Detailed Product Specifications
Manage Product Development
Launch New Products
Manage Product Exit

June 11, 2014 44
Summary
eTOM (enhanced Telecom Operations Map) business
process framework can provide a workable model for
transition to services for non-telecommunications service
providers
Proven framework for area of services provision
Organisations offering cloud and XaaS services moving
from products to communications-like utility services
eTOM can be extended outside its core
telecommunications focus to these organisations
June 11, 2014 45
More Information
Alan McSweeney
[email protected]