ETOM Processes

Applying eTOM (enhanced Telecom Operations Map) Framework to Non-Telecommunications Service Companies - An Product/Service/Solution Innovation Example

Alan McSweeney

April 19, 2023 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

April 19, 2023 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

April 19, 2023 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

April 19, 2023 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.)

April 19, 2023 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

April 19, 2023 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

April 19, 2023 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

April 19, 2023 9

Changes Implied By And Required For Move To Utility Services

ChangesThe Nature OfThe BusinessRelationship

With The Customer

Implementing and SustainingUnderlying

OrganisationChange

Changes The NatureOf FinancialRelationship

With The Customer ChangesTo The

OrganisationCost Model

ChangesThe Services

ProvidedChanges

The InformationYou Have On

The Customer

April 19, 2023 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

April 19, 2023 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

http://www.tmforum.org/

http://www.tmforum.org/BusinessProcessFramework/1647/home.html

April 19, 2023 12

eTOM Business Process Framework Overview

Strategy, Infrastructure and

ProductOperations

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

April 19, 2023 13

eTOM Business Process Framework - DetailStrategy, 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

April 19, 2023 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

April 19, 2023 15

Sample Enterprise Business Process Models - 1

Business Controlling

Process

Processes That Direct and Tune Other Processes

Core ProcessesProcesses That Create Value for the Customer

Customer Acquisition

ProductDelivery

OrderFulfilment

CustomerSupport

Enabling ProcessesProcesses 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

Customer’s Process Needs

Supplier’s Processes

Business EnvironmentCompetitors, Governments Regulations and Requirements, Standards, Economics

April 19, 2023 16

Sample Enterprise Business Process Models - 2

Supply Chain

Customers

Innovate

Sell

Align

Plan

MakeSource Fulfil

Build

FinancePeople Information Environment Governance

April 19, 2023 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

April 19, 2023 18

Achieving the Potential – New Product/Service/Solution Innovation Industrialisation and Productisation

Industrialisation

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

April 19, 2023 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

April 19, 2023 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

April 19, 2023 21

Innovation Extends Creativity To Implementation And Generation Of Value

Discern

Creativity

Develop

Clarify

Verify

Implement

Market

Sell

Innovation

Value

Using a Structured Approach to Industrialising Innovation

Maximises Value

Manage

April 19, 2023 22

Where Organisations Look For Innovation

• Product/solution/service innovation is just one aspect of a wider view of innovation

April 19, 2023 23

Where Organisations Can Look For Innovation

FinanceBusiness Model How Do You Make Money?

Networking and Alliances How Do You Work With Other Organisations For Mutual Benefit?

ProcessesCore 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?

April 19, 2023 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 organisation’s portfolio− Enable the organisation strategic and business

product/solution/service vision−Drive internal and customer-oriented processes to meet market

demand and customer expectations

April 19, 2023 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

April 19, 2023 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

April 19, 2023 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





April 19, 2023 28

Strategy, Infrastructure and Product/Solution/Service (SIPSS) - Horizontal Process Function Details





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

ProductMarketing

Communicationsand 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

April 19, 2023 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 organisation’s portfolio to required profit margins customer satisfaction

and quality commitments, delivering new and retiring existing products/solutions/services to the

market

April 19, 2023 30

SIPSS - Horizontal Process Functional Groups

Strategy, Infrastructure and Product/Solution/Service

(SIPSS)





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

April 19, 2023 31

Horizontal Process Functional Structure

• Four levels of process detail within horizontal structure

April 19, 2023 32

Product, Solution and Service Lifecycle Management – Functional Structure – Levels 1, 2 and 3

Level 1Level 2

Level 3

April 19, 2023 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

April 19, 2023 34

Marketing and Offer Management – Levels 2, 3 and 4 Level 2 Level 3

Level 4

April 19, 2023 35

Service Development and Management – Levels 2, 3 and 4

April 19, 2023 36

Resource Development and Management – Levels 2, 3 and 4

April 19, 2023 37

Supply Chain Development and Management – Levels 2, 3 and 4

April 19, 2023 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

April 19, 2023 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

April 19, 2023 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 Development and

Retirement


Resource Development and

Retirement


Supply Chain Development and

Change Management



Retirement



Retirement



Retirement



Change Management

1

2

34

5 6

8 79

10

11

12

13

14

15

April 19, 2023 41

Process Interactions – Get Approval For The Development Of A New Product/Solution/Service

1. Provide Product/Solution/Service Development Plan2. Provide Product/Solution/Service Development Plan3. Provide Resource Infrastructure Requirements4. Provide Product/Solution/Service Deployment Plan5. Provide Service Infrastructure Requirements6. Provide Supplier/Partner Capability Requirements7. Provide Supplier/Partner Infrastructure Requirements8. Provide Resource Infrastructure Requirements9. Provide Supplier/Partner Required Capabilities10. Provide Resource Infrastructure Plan11. Provide Supplier/Partner Integration Plan12. Seek Approval For Supplier/Partner Infrastructure and Integration Plan13. Seek Approval For Resource Infrastructure Plan14. Seek Approval For Service Infrastructure Plan15. Seek Approval For Product Infrastructure Plan

April 19, 2023 42

Repeat Process Cycle At Greater Levels Of Detail For Refinement and Iterative Delivery And Identification of Appropriate Innovations



Retirement



Retirement



Retirement



Change Management



Retirement



Retirement



Retirement



Change Management

April 19, 2023 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

April 19, 2023 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

April 19, 2023 45

More Information

Alan [email protected]

mailto:[email protected]

Documents

ETOM Processes