Transformation Day Day... · HFC network starting point >1000 homes = 32-128 homes 100 –1000...
Transcript of Transformation Day Day... · HFC network starting point >1000 homes = 32-128 homes 100 –1000...
Transformation Day
Technological Transformation
Technological Transformation
NOS’ Fixed Network Strategy
NOS’ Mobile Network Strategy
Innovation as a service
Evolve HFC Grow FttH+
Full duplex(N+0)
Distributedarchitecture
DOCSIS 3.1
10 GPON
Footprint
Mbps
HFC network starting point >1000 homes
=
32-128 homes
100 – 1000 homes
Capacity is managed inan efficient “need to” basis
Docsis 3.1 is the current norm
Removes active elementsfrom the network (less opex)
Is a step function deployment strategy
Evolution to Remote Phy / Mac Phy in order to move fibre deeper into the network as needed
10-100 homes
Standalone Shared (with VDF)
Penetration
Market Share
CAPEX
HH Density
FttH Cost Per Home Passed
≈100-250€2014-2017
≈100€
>15%>25%4P
40%
3P
60%35 – 40 €
AVERAGE SAC
CPE
350 – 400 €
Sales commissions
Installation + Other
Peak funding reached in first 2 years – network CAPEX and SAC
3-4 years to reach target penetration
Target IRR 18%
AVERAGE ARPU AND CUSTOMER PROFILES
70
90
110
130
150
170
190
210
CAPEX PER HOME FTTHNETWORK (NOS, DST AND VDF)
FTTH SWAP: HP DELIVEREDTO DATE (CUMULATIVE)
Mar 18 Apr 18 Jun 18May 18
(Euro)
2018 Forecast YEND
20162015 2017
Cost per Home (FttH – NOS)
Cost per Home (FttH – Total)
-50%
2.6 million FttH households to be swapped withVodafone until 2022 (1.2 million NOS, 1.4 million Vodafone)
VDF to NOS NOS to VDF
% NOS HOMES PASSED WITH FTTH
3,2%
9,4%
16,4%
18,5%
27,8%
2014 2015 2016 2017 2018e
NOS FTTH EVOLUTION (NOS, DST AND VDF)
2014 2018E 2022E
HFC FTTH (NOS)
3.2
1.2
3.23.5
3.8 3.94.3 4.4 4.4 4.4 4.4
(Million homes)
NOS’ Fixed Network Strategy
NOS’ Mobile Network Strategy
Innovation as a service
Technological Transformation
By the end of the project, we will have the most advanced network in Portugal with a significant advantage in terms of future CAPEX requirements
Best user experience
Significant reinforcement of capacity and coverage, in line with traffic and customer growth
Focus on 4G technology
Compact and multi-technology architecture
2G/3G/4G Equipment enabling more efficient network resource management, reduced energy consumption and operating costs
3G to 4G network reconversion
3G network convertedto 4G, keeping pacewith handset migration
Quick responseand less investment
Gbps ready network, IoT and 5G evolutionary
Layers of 4G capacity and new funcionalities enable evolution to Gbps IoT HW ready for NB IoT
5G evolutionary network
+200% 4G capacity
Increased 4G capacity and coveragein 90% of network
Option to gradually refarm 2100Mhz(+4G capacity and 3G network renewal)
Future Proof 4G network
Complete modernization of 3G network
Global network optimization
+ Voice Capacity / EDGE data
+ 2G capacity (TRX): 25%
15% of sites with reinforced coverage
Global network optimization plan
Improve 3Gand 4G data QoE
+ data coverage (90% ofpopulationcovered)
Enable new4G offers over 150/50M
+ voicecoverage
Improvement of voicecall quality
Decrease in dropped calls
250%
200%
150%
100%
50%
0%
A B C D E F G H I J K L M N O P Q R S T
DISTRICTS
HUAWEI NOKIA
Optimized Clusters: 12%
Madeira & Porto Santo: (97%)
Torres Vedras: (96%)
Coimbra: (96%)
Braga e Guimarães: (98%)
Penafiel e Paços de Ferreira (98%)
S.J. Madeira & Recarei: (91%)
Modernized Zones: 19%
Alto Douro e Minho: (93%)
Vila Real: (92%)
Zones being modernized: 26%
Beira Litoral: (67%)
Porto: (51%)
Zones to be started: 43%
Modernized Zones: 17%
Sintra e Estoril: (100%)
Algarve + Costa Vicentina: (97%)
Zones to be started: 64%
Zones being modernized: 19%
Margem Sul: (77%)
Açores: (80%)
Lisboa Core: (29%)
PROJECT COMPLETION 2Q19 (75% BY YE18)
Before After Before After Before After
implemented excellent samples retention rate
23%
24%
100%
2017 2018 2019 2020 2021 2022 2023 2024 2025
May: EC decision as to the use of the 470-790 Mhz frequency band
700 MHz band attribution
30 June: 700 MHz attribution calendar published
Technical harmonization of the 3.4-3.6 Ghz and 24.25-25.5 Ghz bands
5G available in one major city in every member state
700 MHz band available in all member states
Gigabit Society:(5G available in major cities and major terrestrial transport paths)
December: TDT licence deadline
L2600
5G - 3500
5G – 26 000
U2100 + L2100U2100
5G-ULL1800
G900 + U900/L900G900
L800 5G-UL
L700 / 5G - 700
Super Data Layer
400-800MHz
eMBB/FWA 10G
Capacity 100MHz eMBB/FWA 1G
mMTC e URLLC
Capacity 20MHz MBB
Capacity 15 + 5MHz MBB
Capacity and Coverage
20MHz MBB UL 5G
Coverage 7.8 + 0.2MHz Voice
Coverage 10MHzMBB/IoT/VoLTE
UL 5G
Coverage 10MHz mMCT & URLLCeMBB/
100Mbps
NOS’ Fixed Network Strategy
NOS’ Mobile Network Strategy
Innovation as a service
Technological Transformation
Products and ServicesQuick to Market
New SW every month with new features and bug correction
Attackers are leading change with new methods
Vendor lead times of 2-3 quarters for development and deployment
Higher quality
Focus on OTT
Feature Rich
Record launches
Innovation
A History of Innovation
IRIS7 Day
RestartnPVR NOS Play
RDK STB 4K
YoutubeLeanback
UMA New
Interface
2011 2013 2014 2015 2016 2017 2018
and more to come …
V1
Full control of the STB
V3V2
HARDWARE:
SOFTWARE:
Quality
Scale
Innovation
Speed (features and HW)
Voice as a new control interface
RDK OPEN SOURCE
aligned with COMCAST (RDK Alliance)
SIMPLE(R) STB
More flexible installation
Eco Friendly(er)
More business opportunities
Better CustomerExperience
Satisfied Customer
- 40% Cost
+ 20% Lifetime
Moving to full IP OTT
SAME EXPERIENCE ACROSS DEVICES
ALWAYS EVOLVING
Same approach as Amazon, Google and Apple
Easier to integrate new internet driven services
Less cost
Future proof
OTT Docsis 3.1Speed test
UMASet-top box
Operating Model Transformation
Programme
Zoom-in on selected initiatives
Transformation Programme building blocks
Key drivers for Transformation
Tour of the Transformation Hub
A disruptive way of working
…the ultimate Entertainment company
…the partnerfor digital transformation
…a SERVICE 4.0 company, for superior customer value proposition
TransformationProgramme
Transform the Operating Model
Build Key Capabilites
Revolutionize Customer Centricity focusing on quality and experience
1.Achieve NPS leadership
Boost digital weight on total client interactions
Capture recurring cash savings
Build a Fitter Operating Model2.
Strategic ambition Core objectives
1. Ambitionand Vision setting
2. Transformationroadmap execution
3. Active transformation follow-up and monitoring
Ongoing
Baseline & AmbitionSet-up Launch of Transformation
Voice of the Customer
Voice of the Employee
International Outside-In Insights
Transformation Programme
Starting Point
Transformation Programme
Ambition and Guiding principles
Strategy definition for priority blocks
Programme Roadmap
* Target Operating Model
Team setup and scope definition
Goal:Customer Experience
LeadingDigital Experience
Non-incrementaltransformational lens
Simplicity, forboth Client and NOS
Qualityby design
First-time-Resolution
Higher focus,higher effectiveness
Agile, autonomous and accountable teams
New technologies, new skills
07 0906 08
01 02 03 0504
Create a transformational customer experience CUSTOMER EXPERIENCE
Develop digital offers and business models OFFER AND BUSINESS MODEL
Establish customer centric processes in the organization, focused on service and data-driven
CUSTOMER CENTRIC PROCESSES
Implement productivity levers to simplify currentprocedures and generate efficiency
FITNESS
Build skills in the organization to address the transformation goals ENABLERS
TRANSFORMATION PROGRAMME
TRANSFORMATION PROGRAMME
Digital
Data Management & Adv. Analytics
RPA & AI
New Ways of Working
4
3
2
4
CustomerLighthouse
Next Gen Marketing & Sales
CustomerService 4.0
Service Failure Avoidance and Mgmt
Offer Simplification
Segment of One
RelationshipLifecycle
Management
E2E Process Integrity
New Service Models
RelationshipLifecycle
Management
Zero Waste
Simplify & Automate
60# # of initiatives
3 4 5 3
2 2 3
7 5 4
4 5
CUSTOMER EXPERIENCE
OFFER AND BUSINESS MODEL
CUSTOMER CENTRIC PROCESSES
FITNESS
ENABLERS
Initiative Active MonitoringInitiative Design Initiative Execution
Expected annual impacts defined, including investments needed
Detailed implementation plan, including resources and change management
48
• Fecho de DS = Fim de desenho detalhado da solução
• Início Desenvolvimento IT = Negociações completas, equipas formadas e kickoffsiniciados
• System Ready = desenvolvimentos concluidos e testados com qualidade
• Business Ready = Áreas alinhadas e envolvidas, pessoas formadas, dashboardsde monitorização prontos
• Check Points Dev = Demos periódicas feitas à equipa core
• Go Live = Roll-out
MilestonesFase 0
Centralização de Criação
Fase 1Limpeza
Fase 2Caracterização
Fase 3Utilização Holistica
Setup Inicial
Gestão da Mudança
Início Desenvolvimento IT
Configurações e Bloqueio
Desenvolvimento Relatórios
Testes Aceitação
System Ready
Formação
Business Ready
Go Live
Desenho solução
Aprovação DS
Fecho de DS
Estimativa de Esforço Final
Início Desenvolvimento IT
Desenvolvimento MGM
Preparação Sist. In house
Check Points Dev
Testes Aceitação
System Ready
Formação
Business Ready
Go Live
Desenho solução
Aprovação DS
Fecho de DS
Estimativa de Esforço Final
Início Desenvolvimento IT
Desenvolvimento IT
Check Points Dev
Teste Aceitação
System Ready
Formação
Business Ready
Go Live
Desenho solução
Aprovação DS
Fecho de DS
Estimativa de Esforço Final
Início Desenvolvimento IT
Desenvolvimento IT
Check Points Dev
Teste Aceitação
System Ready
Formação
Business Ready
Go LiveMar 20Oto 19 Nov 19 Dec 19 Jan 20 Fev 20Fev 19 Mar 19 Abr 19 Mai 19 Jun 19 Jul 19 Ago 19 Set 19Set 18 Oto 18 Nov 18 Dec 18 Jan 19
17-09-2018
30-11-201801-10-2018
15-10-2018
16-10-2018
13-12-2018
14-12-2018
15-10-2018 16-11-2018
01-11-2018
01-112018
20-122018
24-012019
21-022019
21-032019
18-042019
17-05-2019
30-05-2019
31-05-2019
19-042019
15-03-2019
29-03-2019
24-052019
21-062019
19-072019
16-08-2019
19-09-2019
20-09-2019
17-05-2019
03-06-2019
18-10-2019
31-10-2019
01-11-2019
24-062019
22-072019
19-082019
23-092019
Capacidade de controlar Fraude em UA’s com dívida, melhorando a experiência do Cliente.
Catálogo de Moradas único, limpo e enriquecido. Com a criação da equipa de Qualidade de Moradas é garantida a centralização da criação e edição das moradas e proteção da integridade do Catálogo.
Lançamento da nova pesquisa de moradas nos principais front ends,com possibilidade de venda de multi-tecnologia. Redução de
incumprimentos por morada incorreta, usando o modelo preditivo.
Utilização do catálogo, normalizando as moradas de faturação e contacto.
Adaptação dos front endssecundários e back ends
Centralização da Criação de moradas
Initiative life-cycle
Go live preparation, operational KPIs defined and tracing process in place
Training sessionsfor new processes
New software, new tools
KPIs defined and dashboards ready
Robust iterative process to challenge results and enable early response
Calculate monthly KPIs
Match expected vs real impact
Monthly forum with Executive Board
Adjust activities and recalibrate
Focus on vision and ambition
set-up
Main focus on initiative design
and planning
Main focus on implementation
and capture of quick wins
Main focus onmonitoring and
boosting impacts100
FY18 FY22
60
FY17
0
FY21
40
FY20FY19
80
20
All initiatives in monitoring mode
1st wave initiatives into monitoring mode
Launch of 1st
wave initiatives
Launch of 3rd
wave initiatives
1st wave initiatives into execution
mode
Launch of 2nd wave initiatives
2nd wave initiatives into execution
mode
Enhancecollaboration leveraging
new work methods (agile)
Boost productivity with collaborative, simple
and social tools
Catalyse new practices with innovative spaces"Transformation Hub"
People
Dedicated team of PMOs
Initiatives locatedat the Hub and
staffed with people from key areas
People selected from top talent
pools and with key subject matter
expertise
IT involved and accountable early
on to speed up developments
and ensure early feedback loops
Weekly sponsor updates and
bi-weekly Board meetings ensures
strategicalalignment
40% time allocation for
initiative members
We revised our employee Bonus targets to reflect the Transformation ambition and reinforce our commitment to customer experience
We adopted multiple tools… …with specific goals in mind
Collaboration & Communication
Team planning Project management
office
Seamless synchronization
Live collaboration
More collaboration
Better communication
Omnichannel engagement
More productivity
Higher motivation
Increasedco-responsability
People Tools
Single space dedicated to the programme allows teams to focus on the transformation initiatives
Broad common areas to promote interaction, team work and awareness of other initiatives
Spaces dedicated to team needs during the work day: thinking rooms, quiet rooms, phone booths,chat & lounge rooms
Workplace equipped with most recent technology to foster collaboration, e.g. seamless connectivity and best-in-class VC
Focus
Collaboration
New needs
New technologies
Workstations
Thinking rooms
Standing tables
Quick meeting stations
Brainstorm rooms
VC meeting rooms
Quiet room
Chat&lounge room
19
2
5
6
3
3
1
1
People Tools Space
01
Transformation Programme layers
02
Selected initiatives
03
Areas for initiative zoom-in
TRANSFORMATION PROGRAMME
Enablers
Fitness
Customer Centric Processes
Offer and Business Model
Customer experience
Advanced Analytics Programme
Digital Programme
Automation and Robotization
Service Architecture
Equipment Recovery Optimization
Troubleshooting Management
Service to Sales
Key Driversof Change
Approach ofTransformation
Initiative Ambition
Advanced Analytics
DATA STRATEGY
Data-centricity culture
Data recognized as key asset
Data available and usedfor all company's decisionprocesses
Value from data constantlymonitored
ADVANCED ANALYTICS & AI
Business outcome driven
AA key value generators and path to new businessmodels
AI and ML constantly used forreal time decision making
Use case industrialization
DATA AND ANALYTICS GOVERNANCE
Organization synchronized
Fully functional, vested andcoordinated AA organization
Mechanisms in placeto control data platformsand quality
A P P R O A C H
Squad operating model ensuring E2E development
UCs to create relevant valuein the short term
Use Case Owner
Business Translator
Data Scientist
Data Engineer
Subject matter expert
Smash voluntary churn
Intelligent collections
NBO@B2B
TV QoS from customer’s eyes
A P P R O A C H
Digital
A P P R O A C H
Automation and robotisation
More than 600 processes identified with high prevalence of automation potential
Marketing & Brand Strategy
CRM & MicrosegmentingCampaigndevelopment
Campaignexecution
Sales Strategy & Planning
Channel ManagementSale of products and services
Up-sell and Cross-sell
Order entry & Handling
Provisioning & Activation
Customer Service Strategy & Planning
Commercial enquiries Technical enquiries
BillingPayment processing & collection
Churn prevention Retention Deactivation Winback Value Management
Market intelligenceand segmentation
Product/segment strategy & planning
Proposition development
Proposition life cycle mgmt
Relationshiplife cycle mgmt
Network and Tech. strategy & planning
Network and Techn. development
Technology deployment Fault repair
IT strategy & planning Service Design IT development Service Transition
Strategy/Business Development and CF
Business Planning Corp. Comm & IR LogisticsData & Knowledge Management
Finance & Audit Legal & Regulation Real Estate ManagementHR Management and Admin
Procurement
Process Dev. & Governance
Culture Organization
Marketing Campaigning
1
2
3
4
5
6
7
8
9
10
11
Lead Generation& Sales
Order Fulfilment
Customer Service
Billing & Collection
Retain & Winback
Product Mgmt.& Innovation
Network & Technology Mgmt.
IT Management
SupportFunctions
Governance& Culture
CU
STO
MER
FA
CIN
GEN
AB
LIN
G
D R I V E R SO F C H A N G E
We have assessed the full organisation to identify repetitive processes
Identified 14 areas with high prevalence of automation suitable processes
Selected backoffice, customer service, accounting and network operations areas
Selected >80 processes for this robotisation wave
We developed an approach to select the 4 areas with highest potential
Within those areas, we identified the processes with most fit to be automated
A P P R O A C H
CoE RPA NOS
Business Areas IT
Applications
Security
…
Customer Service
Back Office
Network Operations
Accounting
Field Force
Sales
Planning and Control
HR
…
A P P R O A C H
Service Architecture
CLIENT CENTRICITY
SERVICE QUALITY ENABLERS
CLIENT EXPERIENCE
Customer service issues are resolved at and
Voice of the Customer
that take into account a omnichannel service
orchestrationwith new processes, tools and incentives
A P P R O A C H
B2B Sales
Customer Service
Inbound & Web
Customer Service
Retail
Customer Service
Technical CS
Field Force
Loyalty
Technical CS
Customer Service
Loyalty
Retail
Loyalty
Design customer-centric Processes
Implement multi-channel Integrated
Tools
Define cross-channel Incentives
Foster omnichannel
Culture
Track omnichannel
Reporting
Strategic dimensions
Handovers addressed
A P P R O A C H
Equipment Recovery Optimization
•
Customer Journey Disconnection
•
•
Real time reporting and monitoring
Flexibility on drop-off location and slots
Seamless and consistent experience across channels
A P P R O A C H
Troubleshooting and managing technical failures
Customer journey I need technical help
PHYSICAL SUPPORT
SELFSUPPORT
REMOTE SUPPORT
Illustrative: No TV access troubleshooting
A P P R O A C H
Self diagnosis
Automatic channels
Remote assisted
Store Assisted
Local Assisted
Client Channel Interface
Channels
Troubleshooting platform
Troubleshooting enablers
Data Repositories
Network record
Client history and profile
Client network record
Common faults and planned interventions register
A P P R O A C H
Device Client Network Local loop and e Access network
Transport network
Core Network/Service platforms
HandsetTV Box
Router/Pen/ONT
WiFi Coax
Ethernet Antenna
RF internal passive, TAP,
Drop
Node, Amp, OLT…
Mobile
IP, Dark Fibre, DTH …
TV, Voice, Net, Services…
Serviceto Sales
Call centre capacitated with strong sales skills
Sales oriented training and coaching
Client need based scripts across segments
Strong reporting model, enabling granular and real time performance
Holistic incentive model, assuring engagement from all stakeholders
A P P R O A C H
Wrap-up
[%, Thousands, M €]
Note: Figures as reported in each period.
2014 2017
RGUs Total OPEX Direct CostsRevenues Non-Direct Costs
EBITDA
+13%+178 M €
+12%+108 M €
+21%+85 M €
+5%+23 M €
+14%+70 M €
+23%+1,786 k
+22%CAGR
+4%CAGR
+17%CAGR
Fixed Growth 2014-2018E
Fixed Capacity Unit Costs Per Mbps-95%
2,2x
1,2x
1,9x
Fixed Traffic
Fixed BB Subs
Fixed Traffic / Sub
+40%CAGR
+10%CAGR
+30%CAGR
Mobile Growth 2014-2018E
Mobile Capacity Unit Costs Per Mbps-37%
3,9x
1,5x
2,8x
DataTraffic
Mobile RGUs
Data Traffic / RGU
70
30
Q1’14 Q1’18
87 90
2014 2018E
-57%
+1%
CAGR (%): -19%
CAGR (%): 0.2%
NOS Network OPEX per Gbps (Fix+Mob) [€/Gbps]
NOS Network OPEX [M €]
Operating & Structure Costs 2017 [M €]
322M€
Wages& Salaries
Other
Supplies &Ext. Services
Maintenance& Repairs
SupportServices
Commercial & Customer Related Costs 2017 [M €]
CustomerRelated
133M€
Commercial
Direct Costs 2017 [M €]
529M€
Programming
Traffic + Interconn
Other
ADDRESSABLE COSTS= 45% OPEX
Premium sports costs +40M€ since 2015 (additional 15M€ to be absorbed until 1H20)
2015 2016 2017
173
196
172
181
194
150
369352
344
Customer Related Technical
Telco CAPEX [M €]
Customer Related CAPEX, % of Telco Revenues [M €, %] 2017 Customer Related CAPEX Breakdown [%]
2015 2016 2017
14%
196181
150
13% 10%
-24%
CPE≈30%
Installation≈20%
Commissions& Others
≈50%
Technical CAPEX, % of Telco Revenues [M €, %] 2017 Technical CAPEX Breakdown [%]
+12%
≈ 35%
≈ 65%
173 172
194
13% 12% 13%
2015 2016 2017Baseline NW Expansion, substitution, integration proj. & others
Transformation Day