The Fundamentals Of BPM Innovation In Telecommunications

Robert Cain

Director of Product Management

HandySoft Global Corporation

SessionTitle:

The Fundamentals of BPM Innovation in Telecommunications

Welcome to Transformation and Innovation 2007 The Business Transformation Conference Welcome

Agenda

Background

Goals

Barriers & Obstacles

Key Business Innovation Strategy

Technology Innovation Strategy

Software Selection Criteria

Core Process Classification, Analysis and Prioritization

Implementation

Process Highlight: Customer Care Process

Competitive Advantage

Sustaining Innovation

Agenda

Background

Goals

Implementation

Background

KT Freetel Co. Ltd.

2,550 employees

Korea’s 2 nd largest mobile telecommunications company

Revenues > $5.6 B

Provider of voice and wireless multimedia services

Mobile banking services

Home networking

Portable Internet

Integrated services

Telematics

Multimedia messaging

Securities and entertainment applications

Television services via the EV-DO network

Video content

eMail services

Background

BPM Investment

Started in 1999 targeting:

IT development

Operations Management

Current Status:

Straddles 15 business units

Aligns 28 core business processes & 77 subprocess with those units

Agenda

Background

Goals

Implementation

Goals (50,000’)

Become industry leader

Adapt to rapid change and growth in Telecom market

Introduce a BPM system to provide customer oriented services through systemic, standardized and efficient practices.

Goals (500’)

Set realistic expectations of what a BPM solution can offer

No MAGIC BULLET solution

Standardize Core Business Processes

Automate Applicable Processes

Embrace a BPM and Workflow Platform

Make it visible as an enterprise asset

Promote process standardization throughout the organization.

Agenda

Background

Goals

Implementation

Overwhelming!

Identify and organize to provide focus:

Business

Information Systems

Organization

Business

Knowledge Worker Stovepipe

Where ever lack of standardized work methods exist, daily operations become dependent upon individual experience and knowledge

Errors are waiting in the wind.

Lack of Commitment to Continuous Process Improvement

Common process goals are not shared among team members.

Business

Lack of Process Visibility

Most employees don’t understand what “They can Change” if they don’t see or understand it.

Lack of Strategic Process Change Management

Most employees wouldn’t know how to suggest a change if they could change something.

Information Systems

Increase customer numbers while maintaining existing customers.

Infrastructure decisions are often in-flexible

CRM and CTI technology-based call centers were built using independent, commercially available technologies.

Eventually short term decisions become a burden

In this case the call center system could not deal with the dynamic and rapidly changing business environment.

Never ending Integration

Key to survival!!

Desperate need for an integrated, process-based application.

Organization

Significant growth over very short periods of time.

Fear of the unknown

How can you organize what you don’t know exists?

Many new processes that need to be standardized are discovered that were unknown need to be standardized that were unknown during conception of organization’s original vision.

Lack of Team Cooperation on Processes

Tough!

Cooperation among teams is vital to make processes more flexible and rational.

Specific to KTF

Operations management processes were not standardized

Heavy reliance on individual institutional knowledge and experience to conduct business.

Constant errors in daily execution of these processes, as well as limited visibility into the status of those processes required KTF to examine BPM.

Agenda

Background

Goals

Implementation

Core Process Standardization and Build-Up

Identify and share processes among team members.

Minimize work errors through process standardization.

Facilitate transition of work.

Process Improvement through Work Management History

Pinpoint and solve process problems through work management history that includes monitoring and statistical indices.

Secure business transparency through process monitoring.

Test work performance through development of a process management index.

Agenda

Background

Goals

Implementation

Core Process Automation and Management

Create a faster work process by setting up a Work-Portal with current work status and To Do List.

Maximize work efficiency by changing the system from a pull method to a push method.

Core Process Automation and Management (Cont.)

Prevent work delays in advance by setting up a real-time monitoring system to check work progress.

Shorten work hours.

Reduce simple/redundant work.

Process-Centered Rearrangement of Resources

Secure agility and flexibility through a safe transition from the existing systems into the new process-centered system including integration with and connection to a transactional system.

Strengthen cooperation among team members through process-centered work.

Set up an efficient management base to discern and align major IT and human resources.

Agenda

Background

Goals

Implementation

Expected Improvements

General Vendor Criteria

Is it a Web-based workflow system created by a vendor that is a recognized expert in the fields of workflow and BPM?

Is the platform based on global standards?

Does the vendor have stable financials so as to provide continuous technical support and upgrades?

Does a vendor have a future roadmap and related products or solutions that can expand the BPM platform?

Is system maintenance and upgrade easy?

Does the vendor promptly address user demands for product upgrades?

Does the platform provide for easy automation of business processes in diverse businesses in the domestic environment? Are there any sample processes?

Is the platform made by a company with diverse work experience and know-how?

Is the product made by a company that has stringent quality management and supply standards?

Scalability, Stability & Integration Criteria

Does the vendor have a customer installation similar in size and scale to your company?

Is scalability and stability of the platform verified, including number of users, system environment, performance, functionality, and stability?

Does the platform have a verified Application Program Interface (API) that can stably connect with other IT systems?

Features & Functions Criteria

Does the platform provide functions that can satisfy various workflow & BPM demands?

Is process monitoring possible in various forms?

Even if a process is ongoing, can you easily change a process template that can change the ongoing process?

Does the platform support diverse workflow management and work distribution function?

Does the platform provide various statistical management and analysis reports?

Does the platform provide a convenient and easy-to-use development environment?

Is it easy to manage organizational charts such as setting up TFT or temporary teams and eliminating the team at anytime if necessary?

Agenda

Background

Goals

Implementation

Classify core processes according to function and business areas.

Group all corporate processes into a hierarchy:

Mega Process (Business Area)

Core Process (Process Chain)

Process

Develop a criteria for identifying and selecting core processes

Prioritize BPM Projects based on:

Process Effectiveness

Process accessibility

Team discussions

Processes that would have the most positive impact not only on the company overall but on those people actually doing the work.

Core Process Classification, Analysis and Prioritization Legend First priority Second priority Third priority Fourth priority 1 2 3 4

Agenda

Background

Goals

Implementation

Expected Improvements

Implementation

Split business processes and application logic

Reduce Process Change Burden

Less accountability for application variations.

Simplify Application Development

Improve development productivity and reduce maintenance.

Simplify Application Logic

Logic can be componentized for more optimal maintenance.

Implementation

Institute a Portal

Ease of Access to Knowledge and Information

Customized User Interfaces

Single Point of Access

Consolidate multiple applications required for completing work.

Community Collaboration

File attachment, comments, forums.

Implementation Current Work List Work Statistics Pending Work Work Processes User can Start Customized UI

Implementation

Center all Systems on BPM & Workflow

For example KTF utilized:

ERP (SAP)

FreeNet (Enterprise Knowledge Portal) Intranet

e-HR, CReaM (CRM)

other systems as stove-piped technologies.

All the distinct systems are now centered on BPM & Workflow.

Implementation

Agenda

Background

Goals

Implementation

Process Highlight: Automated Customer Care Process

Management Benefits

Standardization of customer care process:

Eliminated the arbitrary prioritization of employee worklists.

Increased the efficiency of work processing

Minimized educational training for new workers.

Provided visibility into the customer care process

Critical customer satisfaction goals.

Management Benefits

Better customer profile

Increased customer data collection

Classify data as a complaining customer, or VIP, and the system can come up with a strategic marketing plan for each customer.

Customer care-related teams operate within a unified communication platform.

Call Center Benefits

Absolute guarantee that registration of feedback on customer care process is transferred to IT team.

Customer feedback can be updated using prior customer care knowledge.

IT Benefits

Excessive use of automated service is prevented.

Visibility customer service routing.

Employee evaluations based on customer care performance.

Customers

Fast feedback and response to customer complaints.

Improved customer service.

Agenda

Background

Goals

Implementation

Measured as:

Quantitative Effects of BPM & Workflow Initiatives

Qualitative Effects of BPM & Workflow Initiatives

Work Process Standardization

Work Process Status Monitoring Improvements

Statistical Data

Quantitative Effects of BPM & Workflow Initiatives

Reduction in work cycle times.

Elimination of work delays

automatic work notification.

Minimized paperwork

Use of electronic data (invoices, purchase request forms, order forms, etc.) resulting in minimized paperwork.

Elimination of redundant data input

Electronic document transfer prevented redundant input of identical data.

Quantitative Effects of BPM & Workflow Initiatives (Cont’d)

Better collaboration between related departments.

Real-time, step-by-step management.

Increased worker productivity.

Reduction in claim response times.

Faster and Educated Process Modifications

Process designs can be easily understood and changed quickly and easily in the work environment.

Standardization of work processes on the BPM & Workflow Platform.

Standardization through user authority setup and business rule application.

Ease of Use

Users are able to easily perform tasks without relying on a manual.

Visibility

Process participants can observe work through a standard process (from start to finish) and clearly see the object and contents of the work.

Exception Handling

Automatically flagged

Follow-up measures are automatically initiated according to pre-defined business rules.

Work Process Status Monitoring Improvements

Work transparency

Instant access to work details and based on defined process.

Better Management Visibility

Process monitoring, automatic work notification

Continuous Status Availability

Due date, emergency, delay, etc., available continuously.

Real-Time Customer Support

Customer requests .

Work Process Status Monitoring Improvements (Cont’d)

Simplified reporting

Process efficiency, etc.

Faster Service Introductions

Fast-paced work processes.

Improvements to work management, work negotiation, and managerial functions.

Work Load Management

Bottle-neck incidence.

Problem identification.

Agenda

Background

Goals

Implementation

• Continuously monitor operations, and incorporate user demands in order to maximize applications through exhaustive analyses.

• Further expand BPM & Workflow to the cut-off process between core systems.

Monitor & improve existing processes.

• Create and manage an expert group in each core area to activate culture and cooperation around the BPM & WorkFlow solution.

• Continuous promotion of BPM & WorkFlow solution benefits.

Establish and leverage expert BPM & Workflow group

carry out process optimization through process data collection.

• Establish strategic goals and CSFs (Critical Success Factors) based on KPIs (Key Performance Indicators) linked with processes and continuously analyze process performance.

• Employee performance

Customer service, quality, cycle times, and costs.

• Define the knowledge required for each process, and find out from where the knowledge comes. Then supply the knowledge just-in-time at point of need. Accumulate the results of the process to create a useful knowledge base for the organization.