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Building A Customer Centric Telco

  1. 2. Building a customer centric Telco A KPN case study Eric Kuisch, KPN Next Generation OSS/BSS and Service Provisioning Forum 2008 16-18 January, Amsterdam
  2. 3. Agenda <ul><li>Introduction to KPN </li></ul><ul><li>Our approach to customer centric OSS/BSS </li></ul><ul><li>Key areas for consideration </li></ul>
  3. 4. KPN Royal Dutch Telecom <ul><li>Telephony, Internet and Television in The Netherlands </li></ul><ul><li>Mobile communication in The Netherlands, Belgium (BASE) and Germany (E-Plus) </li></ul><ul><li>24.890 employees (fte’s) (18.071 in The Netherlands) </li></ul>
  4. 5. KPN development during the last hundred years 1900 – 1980 – … Network utility 1980 – 2000 – … Telecom products 2000 - … Human connectivity <ul><li>Focus: networks </li></ul><ul><li>Front-end: telephone </li></ul><ul><li>and data ‘jack’ </li></ul><ul><li>Mass processes </li></ul><ul><li>Physical logistics </li></ul><ul><li>No marketing </li></ul><ul><li>Network technology </li></ul><ul><li>& billing IT </li></ul><ul><li>Focus: products </li></ul><ul><li>Front-end: sales </li></ul><ul><li>and product mgt. </li></ul><ul><li>Mass processes </li></ul><ul><li>Physical logistics </li></ul><ul><li>Product marketing </li></ul><ul><li>The rise of IT </li></ul><ul><li>Focus: service delivery </li></ul><ul><li>Front-end: sales and </li></ul><ul><li>customer service </li></ul><ul><li>Mass customization </li></ul><ul><li>Logical logistics </li></ul><ul><li>Service marketing </li></ul><ul><li>CRM, BSS/OSS </li></ul>Requires technological and organizational transformation!
  5. 6. Vision <ul><li>KPN wants to be the preferred supplier for: </li></ul>multiaccess-, managed ICT- and network services
  6. 7. Organization KPN the Netherlands now organized along Consumer and Business divisions <ul><li>New organizational structure KPN the Netherlands effective as of 1 January 2007 </li></ul>Board of Management Consumer Baptiest Coopmans Business Eelco Blok Wholesale & Operations Eelco Blok IT NL Marcel Smits Mobile International Stan Miller KPN the Netherlands <ul><li>Network assets for both fixed and mobile </li></ul><ul><li>Efficient use of infrastructure </li></ul><ul><li>All Business operations in one division </li></ul><ul><li>Cross & up-selling </li></ul><ul><li>Innovation </li></ul><ul><li>All Consumer operations in one division </li></ul><ul><li>Cross & up-selling </li></ul><ul><li>Innovation </li></ul><ul><li>Centralized IT systems </li></ul><ul><li>Rationalization and time to market </li></ul><ul><li>International Mobile challenger </li></ul><ul><ul><li>E-Plus </li></ul></ul><ul><ul><li>BASE </li></ul></ul><ul><ul><li>Mobile wholesale NL </li></ul></ul>p
  7. 8. KPN strategy Attack-Defend-Exploit strategy to deal with shifts in the market <ul><li>Maintain market leadership ‘new world’ </li></ul><ul><li>Active migration of customers to IP services </li></ul><ul><li>Customer centricity </li></ul><ul><li>Increase market share in broadband </li></ul><ul><li>Implement VoIP, (IP)TV, ‘multiplay’, IP-VPN, E-VPN </li></ul><ul><li>Implement ‘managed ICT solutions’ and vertical solutions </li></ul><ul><li>Stop market share loss in traditional world </li></ul><ul><li>Customer centricity </li></ul><ul><li>Regain market share in traditional voice market </li></ul><ul><li>Maintain market share in mobile market </li></ul><ul><li>Implement simplified ‘voice-only’ in IP network </li></ul><ul><li>Increase bandwidth </li></ul><ul><li>Decrease level of operational costs </li></ul><ul><li>Increase customer satisfaction and productivity (Lean6Sigma) </li></ul><ul><li>‘ Zero touch’ processes due to automation and modern network </li></ul><ul><li>Adjust organization and reduce staff levels </li></ul>Attack Defend Exploit
  8. 9. Agenda <ul><li>Introduction to KPN </li></ul><ul><li>Our approach to customer centric OSS/BSS </li></ul><ul><li>Key areas for consideration </li></ul>
  9. 10. KPN Business Market Ambition: ‘Our customers appreciate our service and actively promote KPN as preferred partner in business’ Our Strategic Objectives Our Mission We have the right customer insights to support and optimize our clients business processes with outstanding ICT services <ul><li>We show best-in-class profitability and growth as the majority of our customers promotes KPN as preferred partner in business </li></ul><ul><li>We offer transparant and compelling propositions with outstanding customer service </li></ul><ul><li>We have highly motivated staff who promote KPN als employer of choice </li></ul><ul><li>Our operational performance beats customer expectation </li></ul><ul><li>Our way of working shows personal responsibility, commitment and genuine customer ownership </li></ul>staff customer
  10. 11. State of Affairs in OSS <ul><li>Customer Satisfaction </li></ul><ul><li>We need to improve our performance to become the benchmark on customer satisfaction </li></ul><ul><li>Loyalty </li></ul><ul><li>The majority of our customers don’t actively promote KPN business market </li></ul>Poor BSS/OSS design and performance is a root cause for customer complaints (no FTR delivery, long lead times, miscommunication)
  11. 12. Business Processes Future proof IT Architecture Way of Working <ul><ul><li>Define business architecture to realise the customer experience </li></ul></ul><ul><ul><li>Organise operational execution </li></ul></ul><ul><ul><li>Strong BPM to implement change </li></ul></ul>Applications, information, IT-infrastructure People, skills, organisation, working methods Next Generation BSS/OSS development: it needs a business approach! Governance Customer Excellence <ul><ul><li>Define TO BE customer experience and key performance indicators </li></ul></ul><ul><ul><li>Outside in approach: customer first </li></ul></ul>What How A business program approach is required to enable consistent, multidisciplinary implementation of next generation BSS/OSS
  12. 13. Agenda <ul><li>Introduction to KPN </li></ul><ul><li>Our approach to customer centric OSS/BSS </li></ul><ul><li>Key areas for consideration </li></ul><ul><ul><li>Customer Experience </li></ul></ul><ul><ul><li>Governance </li></ul></ul><ul><ul><li>Way of Working </li></ul></ul><ul><ul><li>Business processes </li></ul></ul><ul><ul><li>IT Architecture </li></ul></ul>
  13. 14. Next Generation OSS development: The Customer Experience <ul><li>Customer experience drives all major business processes </li></ul><ul><li>Customer insights and KPN experience were combined to define the priorities for TO BE customer experience </li></ul><ul><li>Step wise implementation in all channels and customer segments (SME/SOHO, Large/Major Enterprise, Corporate) </li></ul><ul><li>Net Promotor Score ® is applied for implementation in key touchpoints </li></ul>Renewal , churn Offering Distribution Activation Billing & collection Customer service Usage Reorientation Sales Renewal/ Churn Product Offering Delivery Activation Billing & Payment Customer Service Usage Reorientation Sales BSS OSS
  14. 15. Next Generation OSS development: The Governance <ul><li>Define target Business Architecture </li></ul><ul><ul><li>Target portfolio </li></ul></ul><ul><ul><li>Customer centric processes </li></ul></ul><ul><ul><li>IT target architecture </li></ul></ul><ul><li>Endorse Roadmap driven Development </li></ul><ul><ul><li>At least 80% of innovation investment is in target business architecture </li></ul></ul><ul><ul><li>Freeze changes in legacy IT </li></ul></ul><ul><ul><li>Release management enables firm priorities and risk management </li></ul></ul><ul><li>Simplify and standardize portfolio </li></ul><ul><ul><li>Standard IP based basic services, tailor made propositions </li></ul></ul><ul><ul><li>Leverage All IP infrastructure </li></ul></ul>
  15. 16. Next Generation OSS development: The Way of Working <ul><li>Informal working methods and bespoke tooling are numerous. Implementation of new BSS/OSS are moments of truth to change this way of working without compromise. Constant communication on required change is key ... </li></ul><ul><li>Enable staff to contribute from the very start to new way of working. Realisation of quick wins are instrumental to build staff morale </li></ul><ul><li>We widely employ Lean Six Sigma to learn quality improvement from a customer perspective and boost problem solving skills of our staff </li></ul><ul><li>“ Old OSS never die, they simply fade away…” Implement temporary tooling to accomodate staff while new IT is being developed. </li></ul><ul><ul><li>Our early trials with Corizon show encouraging potential </li></ul></ul>
  16. 17. Next Generation OSS development: The Business Processes <ul><li>Customer Centric </li></ul><ul><ul><li>Define process from customer perspective </li></ul></ul><ul><ul><li>First Time right principle </li></ul></ul><ul><ul><li>Uniform processes in all channels </li></ul></ul><ul><li>Business focused </li></ul><ul><ul><li>Flexibility, time-to-market </li></ul></ul><ul><ul><li>Proces architecture in line with commercial formula </li></ul></ul><ul><li>3 Basic data models </li></ul><ul><ul><li>Customer model </li></ul></ul><ul><ul><li>Productmodel </li></ul></ul><ul><ul><li>Ordermodel </li></ul></ul><ul><li>IT requirements </li></ul><ul><ul><li>Based on services, not applications </li></ul></ul><ul><ul><li>COTS IT solutions </li></ul></ul><ul><li>Validation with Customer Use Cases </li></ul><ul><ul><li>Real-time offer possibility </li></ul></ul><ul><ul><li>Real-time appointment on delivery </li></ul></ul><ul><ul><li>360 customer view in all channels </li></ul></ul>GUIDELINES
  17. 18. Next Generation OSS development: The IT Architecture The Service Network Integrator bridges the gap in customer centric OSS/BSS The Service Network Integrator is the workflow manager for communication between customer representatives and operational delivery units… Product portfolio Customer communication Service Network Integrator Product A Product B Product N Assignment Assignment Status/Referral Status/Referral Assignment 3a 3b 3c 4c 4b 4a Status/Referral 2 1 3 4
  18. 19. Questions & Answers <ul><li>? </li></ul>