You are on page 1of 45

Applying eTOM

(enhanced Telecom
Operations Map)
Framework to NonTelecommunications
Service Companies - An
Product/Service/Solution
Innovation Example
Alan McSweeney

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

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 largescale sale and use

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

Spectrum Of Product/Solution/Service
Service
s
Supplie
d As
Part Of
Solutio
n
Product

Collectio
n Of
Products
Provided
As A

Solution

Solution As
A Service
(Cloud,
XaaS,
Utility
Services,
etc.)
Limited
Services

Extended
Services Such
As Warranty
And Support,
Warranty

Ongoing
Services

Utility
Services

Migration From Products to Services

Where
Many
Companie
s Are Now

Product

Where
Many
Companie
s Want To
Be

Solution

Limited
Services

Ongoing
Services

Need A Structured Process


For Innovation To Achieve
Services Vision

Utility
Services

Spectrum Of Product/Solution/Service

Sell Me
Products
That I Will
Use To
Solve A
Problem

Sell Me A
Solution
To A
Problem

Take
Responsi
bility For
Operating
The
Solution
To The
Problem

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

Changes Implied By And Required For


Move To Utility Services
Changes
The Nature
Of Financial
Relationship
With The Customer

Changes
The Nature Of
The Business
Relationship
With The Customer

Changes
To The
Organisation
Cost Model

Changes
The Services
Provided

Implementing and Sustaining


Underlying
Organisation
Change

Changes
The Information
You Have On
The Customer

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

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

eTOM Business Process Framework


Overview
Operational
Processes
Sales,
Fulfillment,
Assurance,
Billing and
Support

Customer

Strategy,
Infrastructur
e and
Product

Strategy, New Ideas, Products


And Associated Supporting
Infrastructure Moved to
Production and Steady-State
Operations

Operations

Enterprise
Management
Fundamental
Supporting Business
Processes Needed To
Run Any Business

eTOM Business Process Framework Detail


Strategy, Infrastructure and Product
Product
Infrastruct
Lifecycle
ure
Lifecycle Manageme
nt
Manageme
nt
Marketing and Offer Management
Strategy
and
Commit

Operations
Operations Fulfilment
Support
and
Readiness

Assurance Billing and


Revenue
Manageme
nt

Customer Relationship Management

Service Development and


Management

Service Management and Operations

Resource Development and


Management

Resource Management and Operations

Supply Chain Development


Management

Supplier/Partner Relationship Management

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
Manageme
nt

Operational Processes
With Cross Functional
Linkages

Management and
Support Processes

Sample Enterprise Business Process


Models - 1
Business Environment

Competitors, Governments Regulations and Requirements, Standards,


Economics

Customers Process Needs


Business
Controllin
g Process
Processes
That Direct
and Tune
Other
Processes

Core Processes

Processes That Create Value for the Customer


Customer
Acquisitio
n

Product
Delivery

Order
Fulfilment

Customer
Support

Enabling Processes

Processes That Supply Resources to Other Processes


Channel
Managem
ent

Supply
Managem
ent

Human
Resources

Informati
on
Technolog
y

Suppliers Processes

Business
Acquisitio
n

Business
Measurem
ent
Process
Processes
That
Monitor and
Report the
Results of
Other
Processes

Sample Enterprise Business Process


Models - 2
Align

Supply Chain
Innovate

Plan

Source

Make

Fulfil

Customers

Sell
Build

People

Finance

Informati
on

Environm
ent

Governan
ce

Sample Enterprise Business Process


Models Common Structure
Vision,
Strategy,
Business
Manageme
nt

Operational Processes With Cross


Functional Linkages
Develop

and
Manage
Products
and
Services

Market and
Sell
Products
and
Services

Deliver
Products
and
Services

Manage
Customer
Service

Vision and
Strategy

Management and Support Processes


Business
Planning,
Merger,
Acquisition

Governanc
e and
Complianc
e

Informatio
Human
n
Financial
Facilities
Resource
Technology
Manageme
Manageme
Manageme
Manageme
nt
nt
nt
nt
Legal,
Knowledge
Regulatory
External
,
,
Relationshi
Improveme
Environme
p
nt and
nt, Health
Manageme
Change
and Safety
nt
Manageme
Manageme
nt
nt

Achieving the Potential New


Product/Service/Solution Innovation
Industrialisation and Productisation

Productisation is a pre-requisite for and an enabler of


industrialisation

Industriali
sation
Common
Implementation
and Operation
Approaches

Productisa
tion
Defined Set of
Products/Soluti
ons/ Services
and
Packaging/Deliv
ery Options

Innovation and eTOM


Innovation

new ideas

is about managing the value from

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

Migration From Products to Services

Where
Many
Companie
s Are Now

Product

Where
Many
Companie
s Want To
Be

Solution

Limited
Services

Ongoing
Services

Use Appropriate Elements Of


eTOM Process Framework To
Achieve Services Innovation
And Transformation

Utility
Services

Innovation Extends Creativity To


Implementation And Generation Of Value
Manage

io
t
a
v
o
n
In
n

Sell
Market

Implement

Verify
Clarify

ue
l
a
V

Develop
Discern

vit
i
t
a
e
r
C
y

Using a Structured
Approach to
Industrialising
Innovation
Maximises Value

Where Organisations Look For Innovation


Product/solution/service

innovation is just one


aspect of a wider view of innovation

Where Organisations Can Look For


Innovation
Financ
e
Proces
ses
Produc
ts and
Service
s
Provisi
on and

Business
Model

How Do You Make Money?

Networking
and Alliances

How Do You Work With Other Organisations For


Mutual Benefit?

Core
Processes

How Do You Create and Add Value To Your


Products And Services?

Enabling
Processes

How Are Core Processes Supported And Enabled?

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?

Channel

How Do You Get Core Products And Services to


Market?

Brand

How Do You Communicate Your Core Products And


Services?

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

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

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

Strategy, Infrastructure and


Product/Solution/Service (SIPSS) - Horizontal
Process Strategy,
Functions
and Vertical Process Views
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

Strategy, Infrastructure and


Product/Solution/Service (SIPSS) - Horizontal
Process Function Details
Marketing and Offer Management

Market
Strategy
and Policy

Product
and Offer
Portfolio
Planning

Product
and Offer
Capability
Delivery

Marketing
Capability
Delivery

Product
and Offer
Developme
nt and
Retirement

Product
Sales
Marketing
Developme
Communications
nt
and Promotion

Service Development and Management


Service
Strategy
and
Planning

Service
Capability
Delivery

Service
Developme
nt and
Retirement

Resource Development and Management


Resource
Strategy
and
Planning

Resource
Capability
Delivery

Resource
Developme
nt and
Retirement

Supply Chain Development Management


Supply
Chain
Strategy
and
Planning

Supply
Chain
Capability
Delivery

Supply
Chain
Developme
nt and
Change
Manageme
nt

SIPSS Vertical Process Views


Strategy, Infrastructure
and
Product/Solution/Servic
e (SIPSS)

Strategy and Commit

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/service
s, through the services
and the resources on
which these depend to the
involvement of suppliers
and partners in meeting

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/service
s in the organisations
portfolio to required profit
margins customer
satisfaction and quality
commitments, delivering
new and retiring existing
products/solutions/service
s to the market

SIPSS - Horizontal Process Functional


Groups
Marketing and Offer
Management

Service
Development and
Management
Strategy,
Infrastructure and
Product/Solution/Se
rvice (SIPSS)
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

Horizontal Process Functional Structure

Level 1

Level 2

Level 3

Level 4

Four levels of process


detail within horizontal
structure

Product, Solution and Service Lifecycle


Management Functional Structure
Level
Levels 1, 2 and 3
Marketing and
Offer Management

Product, Solution
and Service
Lifecycle
Management
Service
Resource
Development and
Development and
Management
Management

Supply Chain
Development and
Management

Market Strategy
and Policy

Service Strategy
and Planning

Resource Strategy
and Planning

Product and Offer


Portfolio Planning

Service Capability
Delivery

Resource
Capability
Delivery

Product and Offer


Capability
Delivery

Service
Development and
Retirement

Resource
Development and
Retirement

Marketing
Capability
Delivery
Product and Offer
Development and
Retirement
Sales
Development
Product Marketing
Communications
and Promotion

Level
2

Supply Chain
Strategy and
Planning
Supply Chain
Capability
Delivery
Supply Chain
Development and
Change
Management

Level
3

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

Marketing and Offer Management Levels


2, 3 and 4
Level
Level
Marketing
and Offer
Management

Market
Strategy and
Policy

Product and
Offer Portfolio
Planning

Gather and
Analyse
Market
Information
Establish
Market
Strategy
Establish
Market
Segments
Link Market
Segments and
Products
Gain
Commitment
to Marketing
Strategy

Product and
Offer
Capability
Delivery

Marketing
Capability
Delivery

Gather and
Analyse
Product
Information

Define
Product
Capability
Requirements

Define
Marketing
Capability
Requirements

Establish
Product
Portfolio
Strategy
Produce
Product
Portfolio
Business
Plans
Gain
Commitment
to Product
Business
Plans

Capture
Product
Capability
Shortfalls

Gain
Marketing
Capability
Approval

Approve
Product
Business Case

Deliver
Marketing
Infrastructure

Level
4

Deliver
Product
Capability
Manage
Handover to
Product
Operations
Manage
Product
Capability
Delivery
Methodology

Product and
Offer
Development
and
Retirement

Manage
Handover to
Marketing
Operations
Manage
Marketing
Capability
Delivery
Methodology

Product
Marketing
Sales
Communicatio
Development
ns and
Promotion
Define
Gather and
Monitor Sales
Product
Analyse New
and Channel
Marketing
Product Ideas
Best Practice
Promotion
Strategy
Assess
Develop
Develop Sales
Performance
Product and
and Channel
of Existing
Campaign
Proposals
Products
Message
Develop New
Product
Business
Proposal

Develop New
Sales
Channels and
Processes

Select
Message and
Campaign
Channels

Develop
Product
Commercialis
ation Strategy

Develop
Promotional
Collateral

Develop
Detailed
Product
Specifications

Manage
Message and
Campaign
Delivery

Manage
Product
Development

Monitor
Message and
Campaign
Effectiveness

Launch New
Products

Manage
Product Exit

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

Map and Analyse


Service Requirements

Gather and Analyse New


Service Ideas

Manage Service
Research

Capture Service
Capability Shortfalls

Assess Performance of
Existing Services

Establish Service
Strategy and Goals

Gain Service Capability


Investment Approval

Develop New Service


Business Proposal

Define Service Support


Strategies

Design Service
Capabilities

Develop Detailed
Service Specifications

Produce Service
Business Plans

Enable Service Support


and Operations

Manage Service
Development

Develop Service
Partnership
Requirements

Manage Service
Capability Delivery

Manage Service
Deployment

Gain Enterprise
Commitment to Service
Strategies#

Manage Handover to
Service Operations

Manage Service Exit

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

Map and Analyse


Resource Requirements

Gather and Analyse New


Resource Ideas

Manage Resource
Research

Capture Resource
Capability Shortfalls

Assess Performance of
Existing Resources

Establish Resource
Strategy and
Architecture

Gain Resource
Capability Investment
Approval

Develop New Resource


Business Proposal

Define Resource
Support Strategies

Design Resource
Capabilities

Develop Detailed
Resource Specifications

Produce Resource
Business Plans

Enable Resource
Support and Operations

Manage Resource
Development

Develop Resource
Partnership
Requirements

Manage Resource
Capability Delivery

Manage Resource
Deployment

Gain Enterprise
Commitment to
Resource Plans

Manage Handover to
Resource Operations

Manage Resource Exit

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

Determine the
Sourcing
Requirements

Manage
Supplier/Partner
Engagement

Establish Supply
Chain Strategy and
Goals

Determine Potential
Suppliers/Partners

Manage Supply Chain


Contract Variation

Define Supply Chain


Support Strategies

Manage the Tender


Process

Manage
Supplier/Partner
Termination

Produce Supply Chain


Business Plans

Gain Tender Decision


Approval

Gain Enterprise
Commitment to
Supply Chain Plans

Gain Approval for


Commercial
Arrangements
Negotiate Commercial
Arrangements

Product And Offer Development And


Retirement Levels 3 and 4 Process
Details
Gather and

Product And
Offer
Development
And Retirement

Analyse New
Product Ideas
Assess
Performance of
Existing
Products
Develop New
Product
Business
Proposal
Develop Product
Commercialisati
on Strategy
Develop
Detailed
Product
Specifications

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
Analyse the performance of existing products to identify
inadequacies and required improvements using information
from customers and from operational activities

Manage Product
Development

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
Develop and document the covered
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

Launch New
Products

Manage the initial introduction of new and enhanced products


into the market and handover to operations for ongoing rollout

Manage Product
Exit

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

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

Process Interactions Get Approval For


The Development Of A New
Product/Solution/Service
1
2
3
Product and
Offer
Capability
Delivery

1
5

Product and
Offer
Development
and
Retirement

Service
Capability
Delivery

1
4

Product and
Offer
Capability
Delivery
Product and
Offer
Development
and
Retirement
Service
Capability
Delivery

Service
Development
and
Retirement

1
3

Service
Development
and
Retirement

4
Resource
Capability
Delivery

Supply Chain
Capability
Delivery
Supply Chain
Development
and Change
Management

Resource
Supply Chain
Development Supply Chain Development
Capability
and
and Change
Delivery
Retirement
Management

Resource
Capability
Delivery
Resource
Development
and
Retirement

1
0
1
2

9
1
1

Process Interactions Get Approval For


The Development Of A New
Product/Solution/Service
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

Provide Product/Solution/Service Development Plan


Provide Product/Solution/Service Development Plan
Provide Resource Infrastructure Requirements
Provide Product/Solution/Service Deployment Plan
Provide Service Infrastructure Requirements
Provide Supplier/Partner Capability Requirements
Provide Supplier/Partner Infrastructure Requirements
Provide Resource Infrastructure Requirements
Provide Supplier/Partner Required Capabilities
Provide Resource Infrastructure Plan
Provide Supplier/Partner Integration Plan
Seek Approval For Supplier/Partner Infrastructure and Integration
Plan
Seek Approval For Resource Infrastructure Plan
Seek Approval For Service Infrastructure Plan
Seek Approval For Product Infrastructure Plan

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

Product and
Offer
Capability
Delivery

Product and
Offer
Development
and
Retirement

Service
Development
and
Retirement
Service
Capability
Delivery

Service
Development
and
Retirement

Resource
Capability
Delivery
Resource
Capability
Delivery
Resource
Development
and
Retirement
Supply Chain
Capability
Delivery
Supply Chain
Development
and Change
Management

Resource
Supply Chain
Development Supply Chain Development
Capability
and
and Change
Delivery
Retirement
Management

Use The Framework As A Checklist For


Product/Solution/Service Development

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

More Information
Alan McSweeney
alan@alanmcsweeney.com