The document discusses strategies for successful digital transformation. It argues that the most common mantras of "technology is key" and "ambition is all it takes" often fail because digital transformations require focusing on people, processes, and customer experience instead. The document outlines an approach of establishing a clear vision, getting feedback from customers, improving transparency and processes, and using technology to enable other changes rather than being the primary driver. It provides examples from one company's digital transformation journey of improving processes, using data to enhance the customer experience, and introducing new digital services and channels.

1. Change by Changing Your Mindset.
Customer Driven Digital Transformation Conference [#DTCXJULY19]
René Werner - July 19th 2018

2. The Travel Guide

3. Popular Change Mantras Out There ...
The majority of digital transformation initiatives out there are guided by three key perceiptions ...
TECHNOLOGY IS KEY AMBITION IS ALL IT TAKESDIGITAL IS THE PURPOSE
A lot of them seemingly are based on the wrong mantras:
84% of all digital transformation initiatives fail.1)
1) Source: Forbes Magazine, 2016. Survey among Forbes Global 2000 companies

4. Working Change Mantras.
The popular change mantras should be replaced by those that actually work but require a
different sort of discipline and change agents for digital transformations to succeed.
ENABLED BY PEOPLE & PROCESSES THAT DRIVE DAILY IMPROVEMENTSCUSTOMER EXPERIENCE IS KEY
Digital technologies & enablers
like RPA1) are there to enable
people & processes and come
only as a second step after
process simplification and
closing skill/culture gaps.
„Digitizing a shitty process, will give you a shitty
digitized process.“ Thorsten Dirks, prior CEO of
Telefonica Germany.
1) RPA – Robotics Process Automation.
Digitalization is not a self serving
nor a self justifying purpose – its
right of existence is drawn from
the ultimate goal: great customer
experience and hence it is one tool
among many to be leveraged.
„You´ve gotta start with the customer experience
and work backwards to the technology.“ Steve
Jobs, Founder & CEO of Apple
Marginal daily gains compound &
derisk + speed up market delivery –
cadence of small steps vs. the one
giant step that never happens.
Modern buzzword: Scrum.
„Forget about perfection; focus on progression. And
compound the improvements.“ Sir David Brailsford,
prior Manager of the British Cycling Team 2002-2014

5. Some Travel Impressions

6. 4Q173Q15 3Q173Q16
-99%
1Q18
-65%
We Have Achieved a Lot With This Approach.
Substantial movements in NPS driven by listening to customers feedback and driving
actions from there. One Paradigm – treat complaints as opportunities rather than a threat.
1Q183Q15
+30
3Q173Q16 4Q17
+32
3Q173Q16 4Q17 1Q183Q15
RETAIL SHOPS CONTACT CENTRE
44
1247
77
TOUCH POINT NPS
AGING COMPLAINTS (“Smelly Fishes”)
COMPLAINTS
MONTHLY INCOMING COMPLAINTS

7. We have shifted strongly to digital interactions.
Growth in digital transactions is strongly driven by creating service availability online
& awareness campaigns from traditional channels.
1.0x
2.0x
3.9x
2017
2016
2015
Digital
Interactions
(Indexed vs. 2015)
4.4x
SOCIAL MEDIA ENGAGEMENT
[YoY Growth – 2017 vs. 2016 in %]
SOCIAL MEDIA REACH
[YoY Growth – 2017 vs. 2016 in %]
APP ACTIVE
DOWNLOADS (‘000)
APP WEEKLY
ACTIVE USERS (‘000)
30-Apr-
’18
30-Apr-
’17
3.6x 2.9x
30-Apr-
’18
30-Apr-
’17 Peers*
15%
60%
4x
Celcom Celcom
-22%
Peers*
28%
EXISTING DIGITAL TOUCHPOINTS :
PROMOTION & NEW SERVICES
DEVELOPING NEW TOUCHPOINTS :
SOCIAL MEDIA

8. ... while traditional channels get optimized ...
Reduction in repeat callers, improved FCR, FLOA enablement and cost restructuring to
create headroom for innovations.
COST FOR PAPER BILLS
[RM‘mn per Month]
INBOUND CALL CENTRE
VOLUME [Thsd. per Month]
INBOUND CALL CENTRE COST
[RM‘mn per Month]
18-Apr17-Apr
-41%
16-Apr
-63%
18-Apr17-Apr16-Apr 16-Apr
-57%
18-Apr17-Apr

9. ... and refreshed for the future.
Increase in footfall, sales and customer satisfaction in own shops.
DEVICE SALES
[Thsd units]
ACCESSORIES
[Thsd units]
2.4x
2016 2017
VAS (insurance, device
funding) [Thsd units]
2016
4.1x
2017
4.3x
20172016

10. Which has led to a recovery of market share.
Gaining back hearts and wallets of customers ...
0,2
0,5
Q1-16
-1,0
Q1-15 Q1-17 Q1-18
0,0
-1,3
0,00,0
0,1
0,4
0,0
-0,5
-0,2
-0,6
COMPETITIVENESSSTABILIZATIONCRISIS

11. The Approach to the Journey

12. The Change Approach
A change journey on a macrolevel requires a sequence of changes – evolutions that
sum up to a revolution. If you start with revolution first, your efforts & business might fail.
Introduce New Service Innovations
Fix & Refresh Enablers of BAU
Change Business Policies
Change Business Processes
Establish Voice of Customer
Performance Transparency
Team Empowerment
Performance Mgmt.
Establish
True North
& Values
Create Early Successes to
Generate Momentum
Address Structural Issues to Use
Momentum for Key BAU Wins
Build BAU of Tomorrow By Using
Credibility from BAU of Today
FIX FOCUS GROW
1
3
2
4
5
6
Awesome
Customer
Experience
Three basic mantras:
1) Transparency
2) Inspection
3) Adaptation
or in one sentence:
Learning from
Failures/ Defects

13. The General Mentality – Continous Improvement
A change journey in a fast moving industry requires on a microlevel a culture of
continuous improvement. You are never done improving !
Adapt
 Approach
 Business Rules
 Processes
Enable People
 with skills
 decision powers
 right execution culture
to solve real business problems
Leverage Technology
 to cooperate
 to drive better customer
experiences
 to capture efficiency &
effectiveness opportunities
Facilitate
 with cooperation platforms
 target alignments
 with performance &
progress transparency
Align
 with why (purpose)
 clear directional targets
 clear measurable, time boxed
objectives
to solve real business problems
Retrospect
 Lessons learnt & areas to improve
 Things to strengthen & keep
 „Use failures/defects as
opportunities rather than blame“
Continuous
Improvement
Three basic mantras:
1) Transparency
2) Inspection
3) Adaptation
or in one sentence:
Learning from
Failures/ Defects

14. Starting A Change Agenda – True North.
Moving on a transformation journey requires energy from everybody involved. So you have to
create a sense of purpose and get the emotions on your side to answer „Why are we doing this?“
How serious you are about your purpose statement is driven by how visible top management „walks the talk“
Examples at Celcom: Turun Padang, Customer Arena, Call Center Days, Complaint Mgmt by C-Levels.
1
Establishing
True North

15. True North & Values.
Create a clear reference system for everybody in the company of what is the
expected behavior. Ingrain this into your people management practices.
1
Establishing
True North

16. Establish Voice of Customer Feedback.
Realtime customer feedback with analytics to address problem areas.
Automated Generation of
Heatmap from VOC
“Pounding the Rock”Realtime VOC Feedback
Crowdsourcing of “Voice of
Customer” on various channels &
customer journey
Per channels, we create heat
maps by automatically tagging to
the channel & journey
Daily scrums leveraging on
heatmaps to address problem
areas
>5mn Yearly Survey Sent
(about 1-1.5 Mn. Responses)
2
Establish
Voice of
Customer

17. Performance
Culture
Performance Management & Transparency.
Establish performance culture with respective consequence management on both
sides as well as performance transparency.
Performance Management
Performance Transparency
 Clear performance criteria aligned with
CE focus
 Talent & Improver Management
 Skilling program with annual
certification & exams for three tracks
 Genesis Leaderboard with full staff
performance visible to everybody daily,
 gamification: daily quizzes to keep rank,
ability to credit points to colleagues for
outstanding customer experience
3
Performance
Transparency

18. Change Business Policies & Processes
To get change in specific policies and processes embedded, you can not stay at an intentional level of
grandiose ambitions. Your colleagues need to understand the „How“ they can apply their energy to help.
From Theory &
Boardroom Directions
To Practice & the
Frontliners in the Field
4
Change
Business
Processes

19. Example - From Fuzzy to Specific.
Customer experience ambitions broken down to actionable, time-boxed and specific
deliverables for processes and policies to drive actions.
AREAS
to compete
Subareas
to LEAD
or be
PARITY
KPI &
Performance Level
to Achieve
Subareas
“TIME”
of Arrival
Specific
TARGET
EXPERIENCE
Guidelines
per Area
8 Areas
to
compete
Network Products
Channels
Physical Digital
Brand IT Culture/ORGAnalytics
INDUSTRY
LEADING
PARITY
1 XXX AREAS
OTHER
(COVERAGE, ...)
1
• NETWORK tNPS XXX AREAS
• NW OUTAGE HOURS
• AVG. VIDEO RESOLUTION
• VIDEO START DELAY
TRESHOLD
FOR
KPI FOR
• tNPS +XX
• XX hr/month
• >XXp
• <X sec
1
INDUSTRY
LEADING
PARITY
1 M./YEAR
M./YEAR
XX AREAS
OTHERS
4
Change
Business
Processes

20. LEVERAGE INSIGHTS
(Automation)
INSIGHTS CREATION
(Pattern Recognition)
CREATE CX DATA
(Data Unification)
Roadmapping Technology as an Enabler – AI.
After policies and processes are getting fixed, a clear cut roadmap that is linked to the
overall ambition of the company can be set for technology enablers such as AI.
GENERATE INTERACTION DATA
Retail Shops/
Branches
Contact
Centres
Traditional Channels: Enrich Interaction Data
IVR ...
Digital Channels: Drive Migration to Digital
Company
Website
Social
Media
Company
App
Others: Get deeper Usage Insights
Network
Experience
Product Usage
Experience ...
1 2 3 4
Customer
Identification
Journey
Stitching
Experience
Issue Clustering
Core AI Application
Experience Opportunity
Identification
Channel Preferences &
Effectiveness, Interaction
Bottlenecks
Customer Sentiment
(State & Forecast)
Channel Volumes
(State & Forecasts)
Automation: Use AI to Drive Action
Intent Recognition
(State & Forecast)
Customer
Service Bots
Customer
Service Agent
Scheduling
Network Field
Force Dispatch
...
Support: Use Insights to Drive
Better Human Action
Better Up- &
Cross-Selling
Better Network
Planning
Ambient
Retail
Influencer
Marketing
Six Sigma
Initiatives
AI Enabling AI Harvest
5
Fix & Refresh
Enablers of
BAU

21. Evolution to Holistic Social Media Operations.
Innovation driven by clear view on customer preferences & needs and enabled by
new servicing processes, policies, organisational approach and tech.
Customer Engagement
Analytics and Measurement
Generate Data (Quality & Quantity)
• Connect and crawl the social web
• Derive actionable insights
• Intelligent listening
• Engage key influencers
• Drive media value
• Posting the right content
• Develop actionable insights. Eg, complain resolution,
social selling & conversion etc
• Define and track social metrics
• Identify key influencers
• Identify key customer segments
Social Media Servicing
Celcom Community
Social Media Analytics
CELCOM SOCIAL MEDIA EXCHANGE
(SMEX)
Setting up of social media hub to service &
engage with customer, managing brand and
contextual offerings
6
Introduce
New Service
Innovations

22. Introduction of Virtual Agents As New Services.
Launched smart virtual agents with distinct character for a more personalized and
24/7 experience with transaction capability.
Clive & Emma
State-of-art intelligent Virtual Agent with 2 personas
powered by Microsoft technology.
Currently, it can perform the following functions:
• Prepaid & Postpaid – check bill/balances, reload/pay
bills, check data usage, add VAS & Mobile Internet
• Humanized tone
• Small Talk & Personas
• Ability to handover to Live Agents
Next phase is to grow the Virtual Agent to perform
more activities
• Handling of natural language capabilities
• Interface from “voice to text” and from “text to voice”
• Handling of more transactions
• Expansion to other servicing channels like FB Messenger
6
Introduce
New Service
Innovations

23. Parting Thoughts from the Journey

24. Working Change Mantras.
The popular change mantras should be replaced by those that actually work but require a
different sort of discipline and change agents for digital transformations to succeed.
ENABLED BY PEOPLE & PROCESSES THAT DRIVE DAILY IMPROVEMENTSCUSTOMER EXPERIENCE IS KEY
Digital technologies & enablers
like RPA1) are there to enable
people & processes and come
only as a second step after
process simplification and
closing skill/culture gaps.
„Digitizing a shitty process, will give you a shitty
digitized process.“ Thorsten Dirks, prior CEO of
Telefonica Germany.
1) RPA – Robotics Process Automation.
Digitalization is not a self serving
nor a self justifying purpose – its
right of existence is drawn from
the ultimate goal: great customer
experience and hence it is one tool
among many to be leveraged.
„You´ve gotta start with the customer experience
and work backwards to the technology.“ Steve
Jobs, Founder & CEO of Apple
Marginal daily gains compound &
derisk + speed up market delivery –
cadence of small steps vs. the one
giant step that never happens.
Modern buzzword: Scrum.
„Forget about perfection; focus on progression. And
compound the improvements.“ Sir David Brailsford,
prior Manager of the British Cycling Team 2002-2014

25. THANK YOU !!!
If you have questions contact me as below:
rene.werner@celcom.com.my
Linkedin.com/in/rene-werner