Fast-Forward to Omni-channel Management/media/Informa-Shop-Window/... · operational support systems (OSS) and business support systems (BSS). However, exceptions to this ... to fulfill

Fast-Forward to Omni-channel Management

OvumOvumTMT intelligence |

Core principles, best practices, and guidance for faster development of Omni-channel Management with two reference cases: 1. D+M Omni-channel Management implementation in the audio consumer product industry

2. Vodafone & Huawei TM Forum Catalyst project for telecommunications Omni-channel Management

2 TMT intelligence informa © 2017 Ovum. All rights reserved.

ContentsSummary........................................................................................................................................................3

Background .................................................................................................................................................3

Ovum view ...................................................................................................................................................3

Enterprise vision ............................................................................................................................................3

Organizations must act fast, but first they must decide on the market role they want to fulfill .............3

Omni-channel Management capability model ...............................................................................................3

Recognize customers and their personas ..................................................................................................4

Orchestrate the customer experience throughout the customer journey – based on real-time predictive intelligence ................................................................................5

Adapt continuously to remain relevant ......................................................................................................5

Protect the customer ..................................................................................................................................6

Getting started ..............................................................................................................................................6

A recommended approach ..........................................................................................................................6

Starting the transition .................................................................................................................................7

Cross-industry references ............................................................................................................................9

Reference Case 1: How Denon & Marantz (D+M) transformed its business ............................................9

Reference Case 2: Vodafone, Huawei, and the Omni-channel Management ecosystem – a faster way to Omni-channel Management delivery ...........................................................9

Making it happen – the architectural approach .......................................................................................12

Key lessons from Vodafone, Huawei, and their ecosystem partners ......................................................13

Additional use cases identified by the Omni-channel Management Alliance .............................................13

Summary of core principles and best-practice approaches for Omni-channel Management ....................14

Core principles and best practices ...........................................................................................................14

Next steps ..................................................................................................................................................15

Appendix ......................................................................................................................................................15

Methodology ..............................................................................................................................................15

Further reading .........................................................................................................................................15

Glossary .....................................................................................................................................................15

© Copyright Ovum 2017. All rights reserved.

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3TMT intelligence informa© 2017 Ovum. All rights reserved.

SummaryBackgroundIn Omni-channel Management, speed-to-capability is critical. The risk of customer churn increases if customers' expectations are not met. Yet Ovum's most recent research indicates that 70% of communications service providers (CSPs) and those with ambitions to become digital services providers (DSPs) are still in the early development stages of their Omni-channel Management capabilities.

These developments can be accelerated if CSPs follow the fundamental principles and best practices outlined in this report. We highlight two case studies that illustrate the level of business transformation required and how progress can be accelerated by adopting the right holistic and customer experience-driven approach.

Ovum viewOvum defines Omni-channel Management as the means by which an enterprise enables interactive engagement with its customers in any channel or combination of channels, digital or physical, to achieve a customer's desired outcome, by delivering a contextually relevant and rewarding experience – consistently, securely, and often in real time. Above all it demands a single-minded commitment to the customer without which investment in the latest technologies proves to be wasted. This paper outlines some of the fundamental principles and best practices, including use cases for Omni-channel Management.

Enterprise visionOrganizations must act fast, but first they must decide on the market role they want to fulfillThe enterprise leadership must first clarify the purpose and aspirations of the business.

Before setting the Omni-channel Management course, the leadership of the enterprise should clarify its ambitions for the future and the company's role in the marketplace as an Omni-channel Management experience.

The MIT Center for Institutional Research (MIT-CISR) identified four main digital models.

Supplier A supplier may have no direct relationship with the end consumer and may sell through other companies. Organizations likely to succeed in this role will develop expertise to become a low-cost producer. Traditional CSPs will typically not feature in this role due to their legacy commitments in operational support systems (OSS) and business support systems (BSS). However, exceptions to this include over-the-top players and specialist suppliers targeting niche market segments utilizing B2C, B2B, and B2B2C models.

Omni-channel Omni-channel Management capability is more obvious for companies that sell directly to consumers or business customers.

Modular producerThese companies play a component role in multiple ecosystems. Examples include PayPal, AWS, Intel, Concur, and identity providers. They are typically digital by nature.

Ecosystem driverCompanies that enjoy the greatest success can drive the ecosystem. Amazon, Alibaba, and eBay have succeeded in this space as millions of consumers have routinely turned to them.

Self-assessment by attendees at a recent Open ROADS event sponsored by Huawei showed that 52% consider themselves Omni-channel Management players, 33% suppliers, and 7% each as either ecosystem drivers or modular producers.

Omni-channel Management capability model

Ovum has identified four core capabilities supported by 12 attributes that need to be enabled if customers are to enjoy a positive experience consistently throughout every journey.

Four core capabilities illustrated here are fundamental for Omni-channel Management:•Recognize – the customer or persona type (e.g., a

prospective or existing customer)


•Orchestrate – intelligent orchestration of the customer experience throughout the customer's journey in real time by use of predictive analytics and data aggregation at the back end

•Adapt – the ability to adapt at the right pace to ensure a persistently relevant customer experience across all interactions

•Protect the customer – in terms of privacy and protection against the unauthorized or fraudulent use of customer data; essential in all transactions

These 12 attributes shown in the 10 outer circles plus the privacy protection and cybersecurity wrapper, highlighted in the green circle, must be supported in every interaction and form the basis of an Omni-channel Management strategy.

Recognize customers and their personasRecognizing the customer as an individual is vital to delivering a personalized experience and can be achieved through authentication, using a unique identifier such as a mobile phone number, login details, token, or biometric means, depending on the nature of the business and level of security required. Personas, however, are typically recognized by their patterns of behavior. Where behavioral patterns match those of an archetypical persona, the relevant response can be triggered and resulting outcomes monitored through both real-time analytics and machine learning.

Customer recognition goes deeper than simple identity; it also must include insight into customers'

Orchestrate

Recognize

Cybersecurity

Privacy protectionAd

apt

Customer’schoice

Any combinationof channels

Digitaland physical

Recognize thecustomer/persona

Recognize Orchestrate Adapt Protect

Customer-adaptiveVoC

Integrated valuechain or network

Minimizecustomer effort

Continuity ofexperience

Two-way and peer-to-peer

Contextuallyrelevant interactions

TrueOmni-channelManagement

Figure 1: The four core capabilities and 12 attributes for Omni-channel Management

Source: Ovum


implied intent, based on the nature of their interactions allied to their historical data, if it exists. Finally, customer choice (the third attribute) and preferences must be supported, in terms of how customers' information will be used or shared across each channel they choose to use, both digital and physical.

Supporting attributesThe ability to recognize customers and their personas through authentication techniques or, in the case of prospective customers, based on their online behaviors and how they match a persona profile.

Orchestrate the customer experience throughout the customer journey – based on real-time predictive intelligenceThis is at the heart of Omni-channel Management: the ability to orchestrate content, knowledge, and appropriate responses to customer interactions throughout their journeys and deliver a consistently positive experience at scale. This requires intelligent automation based on predictive analytics and implies a high level of customer data integration of historic information from CRM and back-office systems and contextual data gleaned from customer interactions in real time. This provides real-time insights to trigger the right information and content allied to the next best action or offer. To trigger the right response and deliver continuity and consistency of experience, customers' interaction data must persist across all the channels they use in the course of their journeys.

The entire value chain, particularly fulfilment and logistics, must also be integrated and connected to fulfill customers' orders and, if necessary, allow customers to reschedule delivery at a time and place that suits them, including availability of self-service channels. Underlying interaction processes must make life as easy as possible for the customer and be intuitive.

Supporting attributes•Customer choice – The provided services must

allow customers to interact how and when they like in the most convenient channel(s) that suit their preferences at a time of their choosing. This includes enabling customers to swap channels and pause and resume interactions at will in

any mix of digital and physical channels, such as offline channels including retail stores, home visits, or, in B2B, a place of work.

•Minimize customer effort – The Omni-channel experience must be easy and intuitive for the customer to achieve their aims with minimum friction or effort. Data persistence across channels is a major contributor to achieving this goal.

•Contextually relevant interactions – This is based on inferring customers' or prospects' intent from their behaviors and history or customer records to trigger the most relevant action or content to enable them to fulfill their goals.

•Two way and peer to peer – This means customers can initiate the interaction, not just receive and respond to marketing communications. Customer communities or peer reviews should be included in the Omni-channel ecosystem as customers often trust peers more than an organization's outbound communications or marketing.

•Continuity of experience – The customer experience must be consistent and seamless when the customer moves from one channel to another. Journey data should persist across all channels so customers are not required to authenticate or repeat themselves on a different channel.

• Integrated value chain – If customers buy online, for example, delivery of their products must be predictable, reliable, and traceable. If they wish to change the delivery date, back-office and logistics systems must update in real time. Integration of the fulfillment and logistics functions must ensure that product is in stock before offers are made to avoid disappointment due to failed or unfulfilled orders.

Adapt continuously to remain relevantTo ensure adaptation is continuous and relevant, two types of closed loops are required: external and internal.

External closed loopsThere are two dimensions to consider. The first is dynamic real-time adaptation based on digital clues from the customer interaction, to trigger contextually relevant responses. As patterns of behavior are sensed through real-time predictive analytics, content or next best actions can be triggered to help customers fulfill their objectives


or provide feedback. Machine learning augments analytics to provide continuous, closed-loop automated learning and journey optimization linked to customer needs.

The second dimension is to leverage customer feedback and assess the customer's emotion during the interaction and monitor changes in behavioral patterns. This feedback is then used to continuously recalibrate Omni-channel experiences to ensure that they continue to meet customer expectations and provide a sustainable source of competitive differentiation. A robust voice-of-the-customer (VoC) program will include feedback from all interaction channels and potentially machine learning, sentiment analysis, and increasingly Internet of Things (IoT) inputs, providing another feedback mechanism to assess the underlying experience.

Internal closed loops Performance must be monitored and a broad array of customer experience metrics and internal closed-loop mechanisms must be in place to drive continuous optimization. This should also include voice-of-the-employee (VoE) to help identify any barriers or inhibitors to delivery of a positive customer experience or the need for specific training to help employees meet their performance goals.

Supporting attributeCustomer-adaptive VoC – This involves provision of continuous feedback loops throughout the customer journey to trigger the most relevant responses and identify any systemic Omni-channel Management weaknesses that require attention. The external continuous feedback loop should also drive the internal feedback loops to enable the organization to sense, respond, and adapt to ensure that experiences for all customers are continuously improved and remain relevant. The VoE should be part of this mix to capture improvement suggestions from all employees as well as identify any issues preventing them from delivering a positive customer experience.

Protect the customerA core responsibility for every enterprise is to protect the customer's data from misuse. Cyber-attack is a growing threat, and as growth in online buying and other transactions continues to accelerate, the potential threat is magnified.

Recent very public cases where large CSPs have had customer records stolen or hacked illustrate the damage that this has caused to their reputations and customer trust.

Supporting attributesPrivacy protection – This ensures compliance with all legal requirements regarding customer information and respect for customers' wishes regarding privacy or sharing of their data.

Cybersecurity – Throughout every interaction, manage authentication and data security to prevent malicious or fraudulent activities and ensure that customer details are protected from cyber-attack.

Getting started A recommended approachOrganizations that have established their strategic objectives and made the decision to implement Omni-channel Management must first take stock of their current orientation toward their customers and internal capabilities so that critical gaps can be identified and closed. Table 1 is an adaptation of an Omni-channel Management maturity model, developed by the TM Forum. The model identifies five maturity states:•Siloed – typically product and transaction oriented

with no Omni-channel Management plans; delivers an inconsistent customer experience

•Early-stage Omni-channel Management – shift to customer orientation; Omni-channel Management strategy in place

•Mid-stage Omni-channel Management – making and accelerating progress

•Omni-channel Management – now fully capable across all customer journeys and delivering a consistently positive customer experience

•Optimized Omni-channel Management – continuously adapting and innovating to deliver optimized customer experience and new digital services

The Omni-channel Management maturity model helps identify critical capability gaps and provides high-level guidance on remedial actions and capabilities to be developed. The most advanced state – optimized Omni-channel – would support all four capabilities and exhibit the 12 attributes to a high degree of maturity, supported by a customer-oriented and -focused culture.


Starting the transitionTransition to Omni-channel Management requires good change management skills …A complete Omni-channel Management capability impacts the entire value chain and many departments across the organization, necessitating a holistic approach. To ensure completeness of thinking, a useful place to start is the McKinsey 7-S framework, which, despite having been around since 1982, serves to create a bird's-eye view of the business and the interplay and orchestration required between both the soft elements of shared values, skills, staff, and style of leadership and the hard elements of strategy, systems, and structure of the enterprise.

For a successful transition to Omni-channel Management operations, a commitment to the customer before other stakeholders is required. This is one of the toughest adaptations for CSPs – to

put the customer front and center of the business and build a culture that shares these values and constantly strives to this common goal.

The good news is that Omni-channel Management can be incrementally implemented with the objective of achieving quick wins to support the remainder of the transitional activities. A structured enterprise/business architecture-led approach to solution design with value and capability analysis allows identification of quick-win use cases for early implementation. Full structural change of the organization can lag these early initiatives as both systems and organizational transformations evolve.

… and a coherent approachTo fulfill the market role as a true Omni-channel player, it is vital that all developments toward that goal work together in harmony. A customer experience-driven enterprise architecture approach

Table 1: Omni-channel Management maturity model

Siloed Early-stage Omni-channel Management

Mid-stage Omni-channel Management

Omni-channel Management

Optimized Omni-channel Management

Dominant orientation

Product-centric and transactional

Shift to customer orientation/alignment; majority of employees embrace and articulate customer-centric values

Customer-centric values fully embraced; organization aligned around key customer segments

Customer oriented and aligned; customer-centric values fully embraced and embedded in the company culture

Customer oriented and aligned; continuous adaptation and focus on delivering positive outcomes proactively for customers

Business strategy

No Omni-channel Management strategy

Omni-channel Management strategy in place; partial implementation

Accelerating progress toward Omni-channel Management; improved contextual insights to drive next best action

Analytics and customer experience KPIs foster desired behaviors and customer and business outcomes

Uses insights to drive continuous innovation in digital services; co-innovates with customers and partners

Brand No brand consistency across channels; siloed operations

Progressing toward a single view of the customer to deliver a consistent customer experience with some brands

Customer, inventory, product, and order becoming more integrated to deliver a consistent customer experience across all brands

Consistent customer experience across all channels; single and real-time view of the customer, inventory, product, and orders

Realization of “anytime, anywhere, anyhow, and any device”; optimized customer experience with complete value chain integration and alignment

Data-driven approach

No plans in place to collect and use customer channel-related data

Customer data management a priority

Capability to provide contextual insight across some channels, but not yet complete across all channels

Consistent use of predictive analytics to derive and act on real-time customer insights

Agile response and adaptation based on external and internal real-time closed-loop feedback mechanisms

Technology No strategy for technology integration

Aware of technology gaps; starting to take a customer experience-driven enterprise architecture approach

Closing technology gaps; customer experience-driven enterprise architecture approach is now standard practice

Technology gaps close; augmenting customer data from third-party sources to enrich contextual insights

Agile experimentation to augment customer experience and generate positive emotions

Process and governance

No process strategy or governance exists for Omni-channel Management

Aware of process gaps; taking steps to simplify and align; started customer journey mapping

Made significant progress on process simplification and alignment mapped to customer journeys

Organization’s business processes fully aligned and optimized to support Omni-channel Management

Continuous improvement of business processes, supported by center of excellence

Roadmap and planning

No Omni-channel Management plan in place

Omni-channel Management roadmap, plan, and timeline identified and aligned to strategy

Omni-channel Management plan for selected customer journeys implemented; later stages of roadmap now detailed

Omni-channel Management covers all customer journeys; experiments identified to enhance the customer experience

Continuous improvement and experimentation to enhance customer experience and increase services penetration

Source: Huawei and Ovum


will ensure that all developments fit together as a coherent whole in support of the business strategy.

The Omni-channel Management teamExperience in retail customer experience initiatives and Omni-channel Management deployments has shown that board-level sponsorship is critical, with regular progress updates or to seek additional support when necessary. Many Omni-channel Management initiatives are led initially by the CMO or CDO, with support from IT and solution architects. Given the scope of Omni-channel Management and its cross-organization impacts, the team needs representatives from all impacted parts of the organization and requires alignment across departments as well as across all channels. New processes that span multiple departments may need to be developed. Enterprise architects should ensure that the Omni-channel Management plan fits with the strategic direction of the business, incorporates legacy processes, and does not derail existing business activities.

Customer journey mappingThe objective of journey mapping is to gain insight into customer characteristics and how they interact with the organization to fulfill its objectives. It helps to identify impediments to be removed or more granular capability gaps that must be addressed to avoid frustrating customers' objectives on their journeys. A persona is an archetype or representative of a customer segment. It helps illustrate the customer journey for the participants in the mapping exercise. As customers traverse from one step to the next, perhaps across multiple channels, their journeys will touch different parts of the organization. It is therefore important in the mapping exercise to include representatives from all departments or teams that affect the customer journey. VoC and VoE input also have a role to play in providing data to identify impediments to be addressed or strengths that can be leveraged.

Start by focusing on the most important customer journeysPotentially there may be many personas and multiple journeys, so pick the most common persona-journey combinations and identify issues along each journey that frustrate customers the most and impact churn. These also provide quick-

win opportunities to create momentum for change. Inputs from Net Promoter Score (NPS), customer satisfaction metrics, and customer effort analysis and VoC, supported by key driver analysis and associated verbatim reports, will identify initial priority customer journeys and add depth and realism to the identified persona. Use VoC feedback and mystery shopping to gain a more visceral sense of the real customer experience and to balance subjective opinion with objective VoC/VoE analysis.

Legacy systems must be considered as part of the roadmap As Sir Charlie Mayfield, chairman of the UK retailer John Lewis, said: "It's not about running the same business model. It's about changing it in flight to serve customers in the way that they want to be served in the future." Evolving the business must be done while the existing business model is running. Back-office systems cannot simply be replaced. They will continue to provide important operational value and can be augmented through Omni-channel Management development and new process and systems integration. This reinforces the importance of selecting the right prime systems integrator (see below) to develop new capabilities while integrating legacy back-office systems and unifying the customer data contained in multiple systems.

Prioritize capability gaps and develop the roadmapOnce capability gaps have been identified, they should be prioritized, starting with those on which others will depend. For example, unifying customer data is a first step toward delivering a personalized customer experience. Quick wins should be included in the roadmap to drive momentum. For example, developing a self-service capability to make it easier for the customer to get answers for common problems can help reduce costs to serve by deflecting unnecessary calls to contact center agents. That frees up agents to provide greater value to customers who still need personal help on more complex issues. Many companies have multiple CRM systems that have been heavily customized to support individual departments, yet by consolidating on a standard platform and taking advantage of best practices, costs can be substantially reduced freeing up valuable resources for Omni-channel Management investments.


Prime systems integrator selection is one of the most important decisions to aid rapid transformationExecuting the roadmap requires good change management discipline, and the prime systems integrator (PSI) role is critical to navigating the Omni-channel Management maze and to do the integration heavy lifting.

Most organizations will need support from an external partner to provide insight into the art of the possible, best practices, a modular solutions portfolio to support Omni-channel Management, and the technical skills to help develop the solution roadmap and integrate systems. Omni-channel Management requires user experience thinking and design skills, big data, and analytics-associated data science skills to drive persistent and relevant real-time personalization.

In addition to the required and associated technical skills, a PSI should provide clear evidence that it can help the organization build its Omni-channel capabilities on a firm foundation of principle and approach. Critically, this involves mastery of design from an outside-in customer-driven approach that incorporates continuation of legacy operations while developing a more agile Omni-channel Management platform to support the client's customers. Few systems integrators have the Omni-channel Management domain expertise required.

Ideally, the PSI will have experience across a range of industry verticals, complemented with insights and skills from the best of breed in each vertical.

Ecosystem management The PSI will often be central to selection and management of multiple Omni-channel Management vendors and may manage this ecosystem on behalf of the client. A demonstrated capability in this area is desirable.

Cross-industry referencesReference Case 1: How Denon & Marantz (D+M) transformed its businessThe D+M Group was formed in 2002 from a merger of two audio product manufacturers: the Japanese company Denon and the US company Marantz. In 2008, Bain Capital acquired the company, and in 2011, after a period of underperformance in revenue, profitability, and innovation, turnaround

specialist Jim Caudill was appointed CEO. The firm is now growing profitably and has increased the pace of innovation substantially.

The four steps taken to transform the D+M business1. Orientation to customer in purpose and values The leadership team realized that fundamental to successful transformation would be a clear sense of purpose and development and adherence to a core set of guiding values, referred to by Caudill as "winning culture values": integrity, innovation, teamwork, and excellence.

2. Standardize processes and IT and align to customer journeys The strategy was to focus on the customer, collaborate, and standardize at lower cost. This was achieved by adopting standardized applications with 80% fit and reducing costs by 50%, then developing an Omni-channel customer engagement platform to support customers proactively throughout their journeys.

3. Focus on contextually aware innovation Omni-channel insights enabled D+M to send contextually aware and personalized suggestions to customers to enhance their experience of the products. Embedded IoT devices provided usage insights for product improvements and new product development. D+M is now innovating and launching products at a much faster rate.

4. Governance and change management supported by monthly meetings and to focus attention on performance and rapid issue resolutionNPS and product quality are key focus areas. D+M monitors customer behaviors through a variety of means to gain deeper insights into customer journeys. KPIs are monitored and discussed at the monthly board-level leadership meetings. (For a detailed analysis of the D+M business transformation, see Ovum's report Denon & Marantz (D+M): Generating Growth the Customer-Adaptive Way.)

Reference Case 2: Vodafone, Huawei, and the Omni-channel Management ecosystem – a faster way to Omni-channel Management deliveryThis case study illustrates the potential for rapid development of an effective Omni-channel Management capability designed and architected


for customers. It illustrates the principles we have outlined showing how design and development make it easy for customers to fulfil their aims throughout their journeys across multiple channels. The reference implementation, which addressed the important "churn to return" use case, was completed in just a few months following a start in January 2016. The fruit of their collaboration – APPEX (Adaptive, Predictive, Personalized, Experience Excellence) – was demonstrated at TM Forum Live in Nice, France, in May 2016.

Background to the strategic partnershipBoth Vodafone and Huawei are active members of the TM Forum, a global membership association for digital business. The TM Forum provides a platform for hundreds of global members across a wide range of industries – communications, technology, cities and municipal government, finance, healthcare, etc. – to collaborate and partner to co-create, prototype, deliver, and monetize innovative digital services for their billions of customers.

VodafoneVodafone is actively seeking to develop an Omni-channel Management capability as part of its enterprise-wide CARE initiative to center the corporate focus on customers and deliver meaningful improvements to their experience, while providing an essential stepping stone toward its development as a digital service provider. Vodafone's vision for Omni-channel Management is that it must deliver the following capabilities:•enableaseamless,holistic,consistent,and

personalized customer experience•enableapurecross-channeldynamicexperience

for the customers •proactivelyidentifyanycustomersatriskofchurn

and take preemptive action to encourage them to remain as customers

Under the banner of a TM Forum catalyst project, Vodafone acted as the sponsor for this Omni-channel Management reference implementation.

HuaweiLike Vodafone, Huawei also has an enterprise-wide initiative in place to center the enterprise on the customer. Its initiative is called ROADS, which stands for

•Real time – enabling all customer requests to be addressed in real time

•On demand – enabling customers to access what they need when they need it and to customize the service as they wish

•All-online – making everything available in the cloud, including services and entertainment, and at lower cost

•DIY – providing self-care capabilities, making it easy for customers to help themselves and drive innovations in customer involvement

•Social – fostering development of user communities to share experiences and recommendations.

As part of the collaborative team, Huawei's chief role is PSI, responsible for bringing together the technology ecosystem to develop the Omni-channel Management platform, provide integration services and advanced analytics capabilities, and, critically, provide the Omni-channel Management and vertical industry domain expertise, supported by a disciplined architectural approach allied to Agile development underpinning solution design and delivery.

The technology ecosystem and Omni-channel Management AllianceBuilding on its open standards cloud-based platform-as-a-service (PaaS) to provide Omni-channel orchestration capabilities, Huawei recruited complementary technology ecosystem partners, including Apptium Technologies, Celebrus Technologies, Esri UK, Sigma Systems, NTS Retail, Sedicii Innovations, TIBCO Software, and the Multinational Alliance for Collaborative Cyber Situational Awareness, to create a complete ecosystem for this catalyst project.

This has developed into an industry wide Omni-channel Management Alliance (OCM-A), which was formalized at the Open ROADS Community meeting on November 14, 2016, in London to address the digital transformation challenges faced by telcos and related DSPs. OCM-A founding technology alliance partners include Celebrus, Huawei, NTS Retail, Ogilvy, Teletech, TIBCO Software and Vodafone. •Celebrus Technologies – Collects, contextualizes,

and delivers individual-level customer behavioral and experiential data from across all digital and other touchpoints in real time. This provides a key


component to feed data to an "inference engine" supporting next best action/offering as well as developing insight into how customers choose to interact with an operator.

•NTS Retail – Designed for the CSP/DSP industry, NTS Retail provides the customer engagement, point-of-sale, and fulfillment capabilities as well as in-store analysis essential for meeting customer demands. This includes a holistic real-time view of cross-channel orders and inventory data for fulfillment of Omni-channel shopping processes such as reservations, ordering, shipping, and direct-to-store returns.

•Ogilvy – Supports businesses by enabling them to gain deeper and more intimate insights into their customers and the customer landscape. Using a blend of open and closed graph data interpreted through analytics, Ogilvy identifies personas and journeys that reflect real-world behaviors, attitudes, and insights in the context of the competition and category. These insights are then used to craft customer experiences that increase the attractiveness of the brand.

•Teletech – Provides the means to orchestrate customer experience across each customer journey, by providing relevant interaction content and workflows to help customers complete their journeys with minimum friction. Its analytics and integration capabilities help organizations connect data, knowledge, and content and deliver it in

real time to the customer or an agent serving the customer.

• TIBCO Software – Interconnects the digital ecosystem value chain of people, processes, APIs, data, and systems in real time, providing customers with the best Omni-channel digital experience. This accelerates the concept-to-market cycle by empowering a business to model the optimal commercial offer that is contextual to customer behavior, thereby improving business outcomes from increased cross-selling and up-selling

The ongoing intent of the alliance is to create an open platform for ecosystem peers willing to realize Omni-channel Management transformation in the telecoms industry. Key aims include building a mature ecosystem for Omni-channel Management and encouraging the incubation of actions that help measure and improve the maturity level of telco Omni-channel Management.

Expectations are established for all participating organizations regarding contributions and responsibilities. Outputs include standards and architecture, best practices, and implementation references.

Recruitment of new ecosystem partners is an ongoing process to meet new Omni-channel Management use cases, such as IoT and streaming services.

Figure 2: “Churn to return” customer journey

Source: Huawei


The development teamThe joint Vodafone-Huawei development team consisted of an essential mix of key operational stakeholders such as back-office and front-office members, customer experience professionals, enterprise architects, data scientists, and the APPEX Catalyst team. Each ecosystem member played an important role in the overall solution design and development.

The "churn to return" use case reference implementation Bringing it to life through personas and journey mapsThe approach the team took was to create persona-based journey maps that would provide a useful proxy for a typical customer churn event.

In the reference implementation scenario, outlined in Figure 2, the persona selected was a heavy user with a low NPS score whose service contract was due to expire. The customer logs in via the mobile app on a smartphone, which also provides location data. The app indicates there is a service issue with coverage at the customer's home that contributes to the dissatisfaction. The customer checks usage, and the analytics and decision engine generates an alert of a potential churn event. This in turn triggers a personalized offer to the customer, taking into account the customer's lifetime value and product history. The customer then reviews the offer and compares it with alternatives.

The offer includes a solution to the customer's coverage issue at home, as well as a compelling upgrade offer to the service bundle. The customer has some questions and, via a chatbot, requests a call from a care center agent, who can provide a more detailed explanation or further personalize the offer. The care agent arranges an in-store visit, where the customer can examine and collect the offered products and modify the offer to ensure that it precisely meets the customer's needs. Any other issues can also be addressed by retail store staff, leading successfully to retention of the customer.

Making it happen – the architectural approach Value stream mappingValue streams and dependencies by stakeholders were mapped to determine how value should flow to the customer and back to the business symbiotically.

Developing the capability roadmap to business outcome The mapping of data, processes, applications, existing capabilities, and information was used to inform the design of the reference implementation solution and identify the dependencies and additional capabilities required to support each step of the customer journey to achieve the desired outcome. This is illustrated in Figure 3.

Figure 3: Business architecture-led approach to value and capability mapping

Source: Huawei


The reference implementation used an Agile rapid development approach, with each ecosystem member contributing APIs and technical guidance to the PSI, which provided integration services and testing. The final solution was delivered on a cloud server and is readily available as a full working demonstration with all the elements illustrated in Figure 2, including customer web- or app-based touchpoint analytics, authentication and single sign-on, predictive analytics to trigger personalized offer creation, customer communication, scheduling, in-store touchpoint analytics, and fulfillment.

Key lessons from Vodafone, Huawei, and their ecosystem partnersThe case study and reference implementation are excellent examples of the principles and best practices outlined earlier. It shows that by taking a customer experience-driven architectural approach, allied to an Agile and highly collaborative development environment, with representatives from the business and IT, rapid progress can be made to develop Omni-channel Management capabilities. By designing the experience through the eyes of

the customer, opportunities to improve customer experience and thus maximize opportunities for revenue and profitable growth through timely, automated, and relevant intervention will multiply. There are, of course, many more use cases and customer journeys to be mapped; however, over time, many use case components can be reconfigured to fit new needs, reducing the level of invention and speeding time to capability. Although limited to a single use case, the four essential capabilities – recognize the customer; orchestrate the experience; adapt in real time based on the results and feedback; and protect the customer's privacy and cyber-security – are all evident in the "churn to return" reference implementation.

Additional use cases identified by the Omni-channel Management Alliance The Omni-channel Management Alliance has also identified further use cases that are relevant to CSPs. These are outlined in Table 2.

Table 2: Use cases identified by the Omni-channel Management Alliance

Use case User statement Operator statement

I like to use my operator's self-care app

My operator offers me a good self-care app where I can get accurate and real-time information about my account/service/product and any ongoing problems I have raised.When I need to check my account, learn how to use a new product, or raise a query, I prefer to use the app, rather than call an agent.

Many of my customers are happy to use the app, which reduces my PTC and support costs while increasing customer satisfaction. I better understand the wants and needs of those users who adopt the self-care app, and can use this information to attract more customers over other channels to use the app without impacting customer satisfaction.

The shop understands me

When I enter into the shop, I am led to a dedicated person who already knows my current status as a customer, and is able to address any concerns I might have about existing or new packages, devices, or services. If I want to experience and/or buy new services or devices, the shop has them in stock, and I can purchase and use them immediately.

My associates in the shop are empowered by customer journey analytics, which helps them to fully understand the specific wants and needs of each customer that walks in.My customers have already been offered convenient, relevant, and accurate information via digital channels before they enter the shop – therefore, all they need to do in the shop is physically experience the product or service, confirm their acceptance, and purchase it.

The operator understands and cares about me

My operator proactively understands my circumstances, and any service or product issues I might have. The operator treats me in a comprehensive and personalized way, and provides me with contextual help for problems and suitable offers at the right time, and seamlessly over my preferred interaction channels.I feel that I am known, remembered, understood, and cared for by the operator. I am delighted with my operator, and I do not want to churn.

I know the circumstances of each customer, can identify those who are at risk of leaving based on real-time analytics, and have solutions. I can interact with those customers over their preferred channels to provide tailored offers or solutions that will delight them and prevent them from leaving.

The service agent is very helpful

The service agent understands my circumstances and offers appropriate advice based on my personal preferences. If the agent cannot solve my problem immediately, I will be told how long I will have to wait, and will be contacted via my preferred channel once the issue is resolved.

When my customer service agents need to make outbound calls or start webchat conversations, they already know the customer problem and preferences, because they are empowered by customer journey analytics.Information is shared across all of my channels and customers can collaborate to solve individual customer issues.

I am remembered

I do not need to repeat my circumstances, needs, or problems if I move from one service agent to another, or from one channel to another, as insight into my behaviors, messages, and experiences on other channels is made available to the service agent. If one agent knows that I am a family user, I expect all others to know this as well.

All of my associates and channels have access to a universal customer view for each customer, and are context-aware. This helps them to better serve the customer and be more efficient, meaning their time if used as effectively as possible.

Source: The Omni-channel Management Alliance


Summary of core principles and best-practice approaches for Omni-channel ManagementWe have covered considerable ground in this report. As stated from the outset, Omni-channel Management is a complex and dynamic topic. However, it provides a platform for growth and the avenue for delivery of new services that CSP/DSPs must have if they are to remain relevant to their customers.

Core principles and best practices•Developclarityofpurposeofwherethecompany

needs to be. What position will it occupy within the MIT-CISR matrix? Commence cultural change to customer centricity.

•Createatruecustomerorientation,includingaclear statement of values, which is the starting point for Omni-channel Management delivery.

•Understandyourcurrentevolutionarymaturitylevel and identify capabilities that are essential to progress to higher levels. Figure 2 provides a starting point.

•Takeanenterprisearchitectureapproachtosolution design that is customer experience-driven and focused on customer and business

outcomes, identify capability gaps, and engage in top-down as well as bottom-up collaboration. Omni-channel Management is a team game involving cross-enterprise collaboration.

•Don'tforgetthesoftelementsthataresocrucialto managing an enterprise transformation, as outlined in the McKinsey 7-S framework. A holistic approach is essential.

•Developtheroadmapandsupportingbusinesscase to deliver quick wins to build momentum and longer-term capabilities that will open new sources of value creation and delivery, such as telco data-as-a-service, a data management platform, and innovative new services driven by much deeper insight into the customer domain and competitive environment. Legacy transition plans must also be included in the roadmap.

•FindaPSIthathastheOmni-channelManagement and industry domain expertise and insights gained from other best-in-class examples, allied to technology prowess, especially in predictive analytics and the development of platforms to support Omni-channel Management. The PSI must also be able to evolve and leverage existing legacy technologies.

Table 2: Use cases identified by the Omni-channel Management Alliance (continued)

Use case User statement Operator statement

My operator’s app or website is my first choice when I want to buy digital products or services

I can trust my operator’s recommendations to me because:• The operator knows who I am and provides personalized pages. • The operator’s recommendations about accessories match my devices.• My operator’s recommendations about video/mobile payment/cloud/ IoT services are affordable/suitable for me (share of wallet/telecom infrastructure).• The service agent always calls/webchats me at the right time to provide me with assistance if I have any questions when reviewing the pages.• If I want to experience the operator in person in the physical world, it is easy to schedule an appointment for a convenient time and place.

I want to be the first-choice DSP of my current customers. To achieve this, I want to show that I know their requirements through personalized offers and Omni-channel experience management.

Smart IVR When I have a poor customer experience and call the operator’s hotline to complain, I am immediately greeted by a live customer service agent who fully understands my issues and is able to provide a solution that delights me. I may also potentially receive something (such as a discount voucher for something I value) which shows me the operator acknowledges the inconvenience I have experienced.

My analytics tell me that this high-value customer is angry, and the reasons why. The IVR routing is changed automatically to lead the customer to a customer service agent with the right answer and right compensation offer.

Consult my operator by SMS

Sending text messages to my operator to ask questions or request a new service is much more convenient for me than calling the hotline. The operator’s response is very accurate and personalized to my specific query, using vocabulary and a writing style to which I am accustomed.

I know which of my customers prefer to connect with me through text messages. I understand each text and automatically respond to each text in the right language style; for instance, if the customer is tech-savvy, my answer should be more technical. Customers who are not satisfied by my response are automatically connected to an experienced agent.

Immediately getting my hands on my favorite product

When I find a cool product online, I have several options to get it fast and easily. I can order or reserve the product and select my favorite store from where to pick it up or receive some additional consulting. I can also decide to have the product delivered to my home – even on the same day.

My stores are seamlessly connected with my online world and other customer touchpoints. This allows for unified offers and a consistent journey for my customers. A holistic view on a customer’s orders and shopping history enables me to continue engagement processes at any time and via any channel. A cross-channel inventory view turns all of my stores into fulfillment centers. This helps me run my stock management more efficiently and allows me to send out products to my customers faster.

Source: The Omni-channel Management Alliance


•Thinkandengageinopen,collaborativeecosystems that can be used to innovate continuously and drive new sources of customer value and revenue.

•Takeadvantageofprovenusecasestoacceleratedevelopment.

Next stepsTo get started, we recommend following the core principles and practices outlined above. The

two case studies demonstrate both the critical importance of commitment to the customer (D+M) and how to accelerate Omni-channel Management capabilities (Vodafone, Huawei, the ecosystem, and the Omni-channel Management Alliance). By following the principles, practices, and guidance contained in this report, organizations will accelerate their time-to-Omni-channel Management capability and put their transformation to becoming a digital services provider on a firm footing.

AppendixMethodologyThe principles and practices outlined in this report are a result of primary and secondary research and interviews with the D+M Group and Huawei.

Further readingDenon & Marantz (D+M): Generating Growth the Customer-Adaptive Way, IT0020-000231 (December 2016)The State of Customer Experience, IT0020-000225 (September 2016)"Customer-managed journeys provide the key to omnichannel success," IT0020-000172 (January 2016)How-To Guide: Customer Journey Management, IT0020-000173 (January 2016)The Customer-Adaptive Imperative, IT0020-000091 (March 2015)TM Forum: the Omni-channel Management maturity model

GlossaryB2C – business to consumer; sells directly to consumersB2B – business to business; sells directly to businesses B2B2C – business to business to consumer; sells indirectly to consumers via another business or as a component of the B2C company's product or service offeringCRM – customer relationship management systemCSP – communications service providerDMP – data management platformDSP – digital services providerKPI – key performance indicatorOCM-A – Omni-channel Management AllianceOmni-channel Management – the means by which an enterprise enables interactive engagement with its customers in any channel or combination of channels, be these digital or physical, to achieve a customer's desired outcome, by delivering a contextually relevant and rewarding experience – consistently, securely, and often in real timeOSS/BSS – operational support systems/business support systemsPaaS – platform-as-a-servicePSI – prime systems integratorROADS – an enterprise-wide initiative within Huawei to center the organization on the customer; it stands for real time, on demand, all online, DIY (do it yourself/self-service), and socialOTT – over-the-top services delivered across an IP network – the internet or private cloudTDaaS – telco data-as-a-serviceVoC – voice of the customer, a feedback mechanism for determining customer satisfaction VoE – voice of the employee, a feedback mechanism for monitoring employee morale and identifying inhibitors to achieving an employee's business and customer goals

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