Digital transformation and

intelligence
Key findings from a global digital telco maturity study

April 2020

Kris Szaniawski
Practice Leader, Telecoms Operations and IT
kris.szaniawski@omdia.com
Brought to you by Informa Tech
Digital
transformation
requirements

Page 2
 New technologies, changing business models, and increased customer expectations are
transforming the digital economy
Contested
markets
Empowered
customers commoditization

Disruptive
business Regulatory
models The Digital environments
Economy will be
worth $4.6 trillion
by 2025
Pressure on
New margins
technologies

COVID-19

New entrants

Information Classification: General

 Key drivers for digital transformation
Omdia conducted a global survey of senior What are the key drivers for service providers’ digital
decision-makers at 62 service providers with transformation?
a view to highlighting what is driving digital
transformation and which technology areas
are being targeted by service providers.

The survey suggests that the key drivers for

senior telco decision-makers include:

• the need to reduce operational cost

• improve operational efficiency

• increase revenue

• enable innovation

Sample size: 62
Source: Omdia
© 2020 Omdia

Page 4
Information Classification: General
 How service providers are responding to these drivers
• Service providers need to transform technology Which capabilities are the key priority for service providers?
capabilities across four key domains that sit at the
core of a successful digital transformation:
1. supporting improved customer experience
2. diversifying revenue streams through vertical
innovation
3. delivering operational excellence
4. supporting all of these through a unified
technology framework.

• The priorities include strengthening customer-

facing areas such as omnichannel, putting in place
the product and pricing enablers to support vertical
integration, prioritizing service orchestration and
service catalog capabilities, and putting in place the
necessary cloud platform capabilities.

Sample size: 62
Source: Omdia © 2020 Omdia

Page 5
Information Classification: General
Customer
experience

Page 6
 Delivering the customer experience
• The telecoms industry has changed Customer experience changes being made
dramatically over the last five years. ICPs pose
a viable threat to service providers and have
impacted customers’ expectations.

• Creating consistency across channels is

essential for CX. Service providers want to
deliver an omnichannel experience, and
overcome the historically siloed nature of the
service provider organization.

• Consistency in the marketing experience is

another area of opportunity for customer
experience transformation.

• But lower priority given to transforming

traditional retail and dealer channels, due to
customer preference for digital engagement Sample size: 62
Source: Omdia
© 2020 Omdia
channels. This will now accelerate.

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Information Classification: General
 Delivering CX by creating consistency across channels
• One way in which service
providers can make
improvements to the customer
experience is in improving and
standardizing their approach to
omnichannel.
What key capabilities are you putting in place to deliver an omnichannel
experience to customers?
Consolidated product catalog used across all channels that includes all the CSP's
service offerings 31%
Consolidated product catalog that drives back-end order management and
provisioning 52%

• Of the 97% of service providers Ability to manage and maintain third-party services, including integrating with
partner ordering processes 50%
that plan to transform the Each front-end channel able to deliver differentiated features and capabilities based
omnichannel experience over on a unified backend default setting 31%
the next 18 months, 65% will Consistent rules of customer engagement and centralized customer interaction view
65%
across all channels
focus on creating a unified view
Utilizing centralized resource management and omni-channel real-time stock
of the customer and consistent information 42%
rules of customer engagement Consistent order entry processes across all channels, allowing order to be initiated
40%
from one channel and continue with other channel
across channels.
Consistent trouble ticketing system with unified rules and workflows delivered
across all channels 19%
• This will also help to create
Have not any plan 2%
consistency among other
customer-facing processes such 0% 20% 40% 60% 80%
as marketing initiatives. Sample size: 62
© 2020 Omdia
Source: Omdia

Page 8
Information Classification: General
Vertical innovation

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 Enabling vertical innovation
• The need to diversify revenue streams is a
key driver of digital transformation Vertical innovation changes being made

• As service providers look to verticals to

diversify their revenue streams, many are
looking toward services that are ‘low-hanging
fruit.’ Mobile payments make sense for many
service providers because they already offer
some form of payment or direct carrier
billing services.

• Although there is no one-size-fits-all

approach to vertical innovation, service
providers will not be able to branch out into
new industries on their own.

• Establishing a partner management strategy

and creating a partner management platform
is essential to the success of vertical Sample size: 62
Source: Omdia
innovation. © 2020 Omdia

Page 10
Information Classification: General
 Partners will play an essential role in vertical innovation
• Partner relationships will be essential to
the success of many of the vertical
services operators plan to offer
• Of the 98% of operators that plan to offer
financial technology (fintech) services, for
example, all of them plan to invest in a
platform that will enable partners to
deliver additional fintech services.
• Moreover, 85% of operators plan to
launch an e-wallet that customers can use
to make payments and purchases. An e-
wallet business model, however, will
require a network of partners that will
accept these payments.
What fintech capabilities are you putting in place?
A platform that allows individuals to use an eWallet account to
85%
pay online and offline
The platform enterprises to pay salaries, to concentrate funds,
to perform international remittance, and to reconcile accounts
55%
Provides value-added services for merchants and enterprises,
such as operation analysis, customer profiling, accurate 47%
marketing
Provides innovative financial services such as internet-based
insurance, micro loans, and credit loans
8%
Enables a wide range of partners providing services other than
100%
payment to help evolve the platform to support an ecosystem

0% 20% 40% 60% 80% 100%

Sample size: 62
Source: Omdia © 2020 Omdia

Page 11
Information Classification: General
Delivering
operational
excellence

Page 12
 Delivering operational excellence
• Achieving operational excellence is key to Operations excellence changes being made
service providers’ ability to realize their
transformation objectives of reducing costs,
increasing revenues, and enabling
innovation.

• Most operators are prioritizing

transformation of their service orchestration
and service catalog capabilities – this with a
view to creating and delivering services
faster and more efficiently.

• Almost half of operators have deployed or

have started to deploy service orchestration
and catalog capabilities.

• However, we are seeing slower progress

with network resource management, Sample size: 62
Source: Omdia
operations automation and DevOps © 2020 Omdia

Page 13
Information Classification: General
 Slower progress with service management capabilities
• Only a small proportion of operators What network operations automation are you adopting?
having so far implemented some form of
DevOps or AI-based network analysis and Supporting AI-based network analysis and processing 16%
processing or fault prediction.
Supporting automated network planning and optimization 44%
Automatic and comprehensive collection and presenting of all network
• The lack of such capabilities will clearly defects and performance data 39%
impact on how effective service providers Continuous performance monitoring and operations automation e.g.
predicting/avoiding network congestion during peak periods 55%
will be in supporting new service
Supporting AI-based automated network fault prediction, detection and
offerings. correction 16%
Correlates network resource and services to improve network
operations 40%
• Automating operations is one of the most Supporting automated troubleshooting and restoration of customer
crucial steps to take in the digital services using real-time data and policies 21%
transformation of service providers’ Adoption of DevOps methodologies and tools developing and operating
16%
new services
operating models.
Virtual network and 5G slice capability auto-scaling and auto-healing 11%
• To make meaningful the transition of Have not any plan 24%
networks toward being cloud-based and
software-driven, service providers must 0% 10% 20% 30% 40% 50% 60%
start now to transition operations to Sample size: 62
Source: Omdia © 2020 Omdia
DevOps.

Page 14
Information Classification: General
Creating a unified
technology
framework

Page 15
 Creating a unified technology framework
• A unified technology framework encompasses
the technology components, services, and Unified technology framework changes being made
functions required to support digital
transformation

• This is important because a siloed approach to

operating the network and the business has
hampered operators’ ability to innovate,
deliver services, and drive efficient operations

• Almost 90% of respondents have deployed or

started to deploy cloud platform capabilities

• Moving to the cloud has become a key

technology path for digital transformation.
Service providers are placing workloads such
as big data, analytics, CRM, and enterprise
resource platforms (ERP) on the cloud. With
Sample size: 62
network functions virtualization, core network Source: Omdia
© 2020 Omdia
functions are also being virtualized and hosted
in different cloud environments.

Page 16
Information Classification: General
 Less progress with AI and big data
• Operators are not sufficiently prioritizing AI
and big data capabilities in developing their
unified technology framework.
• They need to exploit big data and AI/ML to
deliver agility and automation – using these
technologies to address a wide range of use
cases such as network automation and
personalized customer experience and care.
• Service providers must give equal priority to
a wide range of components, encompassing
platforms, applications, and data, if they are
to deliver on the promise of digital
transformation, and none of this will be
possible without strong data and AI
What is the status of your Big Data and AI capabilities?
Have a data integration platform in place that can collect and manage
23%
all types of data, including unstructured, with graphical user interface
Have unified meta data management with existing applications based
on it 19%
Intelligent data development platform is used to support data
development and workflow 23%
Manage data assets in a unified catalog and be able to evaluate the
use ratio of data assets 21%
Have a unified maintenance & monitoring tool with analysis &
intelligence capability 23%
Enhance data quality inspection & controlling mechanism with a
systematic tool and rule library 27%
Have a platform to provide data service to internal and external
16%
parties
Realizing AI services based on AI engine that provides services to
internal and external parties 11%
Leveraging AI capabilities in various scenarios to improve customer
10%
experience and operation efficiency

underpinning. Have not any plan 37%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Sample size: 62
Source: Omdia © 2020 Omdia

Page 17
Information Classification: General
Summary

Page 18
 Digital transformation requires a more joined-up approach
• Areas where service providers have made strong progress are relatively focused - these include customer-facing areas such as
omnichannel experience and mobile payment platform transformation, activities associated with putting in place cloud platform
capabilities, and to a lesser extent the shift toward more collaborative partner-focused ecosystems

• Service providers also intend to address a wide range of technology areas over the next 18 months, but worryingly, what service
providers plan to prioritize next appears to be a relatively uncoordinated mix of initiatives

• Meanwhile, service providers are lagging in many of the areas associated with intelligent operations including implementing big data
platforms, making use of AI for network operations automation and DevOps.

• It must be of concern that so many service providers are lagging in these areas, because intelligence must sit at the core of an effective
digital transformation and has the potential to act as a digital transformation accelerator

Service providers must prioritize the appropriate platforms, applications, and data, if they are to deliver on the
promise of digital transformation. In short, operators must adopt a more joined-up approach that is aligned around
their key business and transformation priorities

Page 19
Information Classification: General
Thank You
02 April 2020

Get in touch
Americas
E: customersuccess@omdia.com
08:00 – 18:00 GMT -5

Europe, Middle East & Africa

E: customersuccess@omdia.com
8:00 – 18:00 GMT

Asia Pacific
E: customersuccess@omdia.com
08:00 – 18:00 GMT +8 Brought to you by Informa Tech
Business Value Driven
Transformation Approach
Vision & Action

Steven 2020
Cho
 Our Target: Become Industry Sharing Platform Provider
Vision
Whale Cloud is aiming to be the industry-wide Best
• 20+ years of telecom industry
experience
• Largest ecommerce in the World
• Market share of public cloud: #1 Digital Platform Provider, with ‘Industry co-construction
• 150+ CSP customers
• 80+ countries presence
in APAC, Top 3 Worldwide
and industry sharing’ features, and the ability to realize
self-reinforcement through an ‘All-Online’ approach.

Partner
Whale Cloud
Action

The DT toolkit is the DT Steering Wheel to navigate you through

the digital transformation. It consists of a digital transformation
Share Online maturity map (DTMM), a standard operating process (SOP), and
Knowledge
Practices a set of Metrics.

DT Accelerator products and solutions: Use Cloud as the

basics, Data analysis and management as the core, Connect
external digital service，Link terminals with your network,
Digital Assets
China International
Accumulate industrial experience. This delivers digital
capability with plug-and-play.
 Our Approach:
Business-driven, standardized, actionable and measurable

1.Find 2. Implement 3. Measure

Digitization Metrics
Specific Goal & KPI KPI Monitoring & Measurement
Digital
Vision
SOP (Standard Operating Process)
Analyze the BP BP Optimization
Transformation
starts with business Digitization Level
goals and vision
backed by top DTMM (Digital Telco Maturity Map)
management, the
TO-BE Blueprint
approach should be Functionality Optimization
actionable and
measurable.
AS-IS Assessment Observation & Analysis Architecture Optimization
 Digital Transformation’s IT Capability Navigator

(Digital Telco Maturity Map)

4 Phases of Maturity

beginner developing developed leader

V2.0
4 Main Sectors 400+ Checkpoints in Level-5

Abstract from
• Internet Player

• Standards & Consultancy

• Leading CSP Strategy

Benefits For CSP

Can use DTMM to identify its general maturity degree and weak
points to improve

Benefits For Whale Cloud

Share our understanding with Our Customer and the Industry, and
Work as a guideline for our R&D Production to develop the future
roadmap
Step 1: Select the DT Scope

The Tailored DTMM Edition

Business Scope

Business Model

Transformation Vision

Transformation Priority
 Step 2: Assess Digital Maturity In Specified Scope

beginner developing developed leader

Digital Channel

CS Digital Experience AS-IS

Customer
Satisfaction Intelligent Customer Service

Capability of Agile Service Governance/Enabling

OE
Lean Network Management
Operation
Excellence
Digital Government

VI Digital Enterprise
Vertical
Platform Economy
Innovation

Unified Technology Framework

TF Unified Data Mid-End

Technology
Security System
Fusion
 Step 3: Drill Down to Low Level

beginner developing developed leader

Smart Store

Intelligent Dealer Channel Mgmt & Operation

Web Channels

Mobile Channels

E-commerce Channels

B2B

B2P

True Omni-channel Customer Journeys

across Conventional and Digital Channels
We need to offer a truly Omni channel experience to our customers,
Customer's Participation in the ensuring the same customer experience independently of the channel used,
Design of Services TO-BE with online and self-service capabilities that do not require human
Core Digital Engine-driven Real-time
Services
intervention for a specific operation.

Comprehensive Customer Profile

Tag Your Customers

Tag Operation Having a 360-degree view of customers and use analytics to understand
Enterprise Market Planning Capability
their needs and thus offer the right product to the right customer at the right
TO-BE
time.
Omni-Channel Campaign Toolkits

Campaign Evaluation

Customer Insight-based Purchase Process

Chatbot Assistant

Intelligent Call Center

Proactive Care

Closed Loop Customer Feedback Transformation Vision Business Goals

Active Customer Callback, Investigation and
Improvement
 Step 4: Implement the To-Be for Specified DTMM Item

2020 2021 2021 2022

Online Personalization Intelligence Ecosystem

Online Interaction Channels System of ‘MSISDN as the Digital ID’ System of ‘Channel-sharing’ Super Mobile APP – ‘Digital
CSP’

Online Marketing Platform More Accurate Customer Insight & Intelligent Outbound driven
Marketing Capability as a Service
Recommendation Engine Campaign

Omni-channel Customer Experience

Upgraded Call Center AI driven Chatbot Chatbot as a Service

28
29

Step 5: Evaluate the Phased evolution: from As-Is to To-Be A Company of Alibaba Group

90%

80%
As-is
Individual Customer 70%
Channel To-be
D- (5, 62.5%)
60%
‘B’ for ‘Beginner’
Business Customer ‘D-’ for ‘Developing’
50% ‘D+’ for ‘Developed’
Channel
‘L’ for ‘Leader’
40% D- (3, 37.5%)
B (3, 37.5%) Healthy Trend
30%
Omni-channel D+ (2, 25%) Unhealthy Trend
L (2, 25%)
Experience 20%
B (1, 12.5%) Figure 71, Rating Migration
Real-time 10% Trend of ‘As-is’ vs. ‘To-be’ at
Level 3
Service
D+ (0%, 0) 2 4 6 8
L (0%, 0)

Customer
Insight

Intelligent Omni- Figure 72, Summary of Ratings of ‘As-is’

As-is To-be vs. ‘To-be’ at Level 3
channel Marketing
90%
Personalized
Customer Care 80%
6
Intelligent 70%
(5, 62.5%)
Interaction
60%

50% 4
Beginner 25 Developing 50 Developed 75 Leader 100
(3, 37.5%)
40% (3, 37.5%)

30% (2, 25%)

As-is To-be (2, 25%)
2
20%
Rate Radar of ***‘As-is’ Digital Maturity and ‘To-be’ Digital 10% (1, 12.5%)
Maturity of (0, 0%) (0, 0%)
Quadrant ‘Customer Satisfaction – Level-3’
Beginner Developing Developed Leader
 Transform from Business Users’ Perspective

SOP (ZSmart Standard Operating Process)

ZSmart is embedded with Standard Operating Processes
(SOP), which are the best practices derived from more
3 10 200+ than our 150 BSS/OSS transformations practices and in
1.0
V Domains Groups OOTB BPs
conformance to eTOM framework.

Customer Centric Process

BP1-1 Insight-to-Action BP1-5 Usage-to-Payment
BP1-2 Request-to-Answer BP1-6 Termination-to-Confirmation
BP1-3 Request-to-Change BP1-7 Complaint-to-Solution

Customer BP1-4 Order-to-Payment BP1-8 Problem-to-Solution Customer

* C2C processes enables CSP’s day-to-day

Operation Domain Product Domain
interactions with the customers, which covers
all possible interactions triggered by a
BP3-1 Inventory Management BP2-1 Concept-to-Market
customer.
BP3-2 Channel Partner Management BP2-2 Market Strategy-to-Campaign
BP3-3 Industrial Partner Management
** Domain processes implement CSP’s goals
started from the overall strategy. They are not
directly initiated by a customer (e.g. marketing Network Domain
campaign, product lifecycle management,
network operations). PA Production Order-to-Acceptance CAM Capacity Management
TS Trouble Ticket-to-Solution SLM Service Lifecycle Management
UU Usage-to-Usage Data RLM Resource Lifecycle Management
 DTMM helps to Improve SOP Digitization Level

From As-Is to To-Be

Automation Level(SOP) Manual Process
Digitization Level(DTMM)
Standalone system assisted operation
L1 L2 L3

Process-Driven Level Reservation Experience

The Process-Driven Level of a business process, which
tells of the controllability, and traceability of a particular
business process by taking an inspection on the Customer can make
Customer can make reservations through
condition of with or without a system-driven end-to-end
reservation through omni-channel
workflow, or even as a fake flow (existing in the form of Customer make a some online reservation, for e.g.
single functionality) in case of extreme situations. reservation during channels, such as Facebook, call
order capture. app. center, etc.

Automation Level Onsite Installation Experience

Fully Automated 0-25% manual operation

Mostly Automated 25-50% manual operation AI Capabilities can

Installation work be used to improve
Slightly Automated 50-75% manual operation order can be customer experience
accepted and and efficiency, for
Heavily Manual 75-100% manual operation processed through e.g. ID identification,
Printed work order field technician APP. Quality Check.

Typical BP: Registration Order

BP1-4 Order-to-Payment
 Everything We Do for IT and the User Is Business-driven

Enterprise KPIs vs Digital KPIs

Enterprise KPIs Enterprise KPIs V2

• Assess Overall Enterprise Performance • Expect Enterprise KPIs
• For e.g. financial, operational, customer, marketing KPIs to Evolve addressing
business priority

Digital Business KPIs

• Assess Progress in Becoming a digital
business
Start of Digital Business End of Digital Business
• For e.g. percentage of customer service
Transformation through selfcare channels Transformation
 If You Cannot Measure It, It Doesn’t Exist

Digitalization Dashboard Whale Cloud Digital Metrics

Dimension Topic

Revenue Increase
Revenue and
Margin
Cost Reduction

Customer Growth

Customer
Customer Satisfaction
Experience
New Business Increase

Partner Ecosystem

Operational
Network Operation
Efficiency
Business Operation
 Digitalization KPI Principle

Digitalization Metrics AS-IS TO-BE

Target

To measure business progresses

and digital maturity, we have
3 120+ developed a set of KPIs &
1.0
V Dimensions Metrics Estimation
Monitoring &
Measurement measurement approaches

Digitalization KPI Balance Point Enterprise KPI

④
④
②
③

① ①

% Customer Contacts $ Customer Management Net Promoter Score Cost-to-serve Net Promoter
via self-help channel Cost, Per Customer Request (Transactional) Score (Relational)
 The Truth of Digital Transformation: Not One Day Effort

Long-Term

# AI Enabling Dual-engine Driven

Intelligent DTMM Level: Leader Intelligent
Scenarios

Mid-Term

Cloud Native, Micro service,

% Centralized Automated +
Digital DevOps
Defined Product DTMM Level: Developed Measurable

Today

# Seconds per Service Cloud-based

Managed +
Automated Activation, from DTMM Level: Beginner +
Standardized
Quotation to Activation Developing

Transformation Digitalization
IT Business
Objective Metrics

Whale Cloud Digital Assets for Digital Transformation

Selected Digital Transformation Cases

Post Zain Ncell

KPN Smartfren Hyperoptic

China Mobile China Telecom China Unicom

THANK YOU