Vodafone Creating the perfect digital order FINALv03 - Pega · PDF file• Start with...
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PegaWorld Vodafone is one the world’s largest Communications companies, with over 400 million customers and 90 thousand employees in over 30 countries. One of the largest markets is in Germany. Their enterprise business shows continuous growth and has become increasingly complex due to acquisitions and fragmented IT systems, and at the same time Vodafone wants to create standardization and synergies. Vodafone Germany took the approach to decouple their legacy from the business to become more agile. The lifeblood of their enterprise business is processing customer requests and orders. The “perfect order” is digitally captured, right the first time, visible, and automated. It creates a differentiated customer experience, reduced onboarding times, increased sales and operational efficiency. In this session you’ll learn how Vodafone is using Pega to deliver digital order capture, technical order fulfillment, and business process automation with case management. And you’ll learn how they’ve approached transformation using a phased, pragmatic approach that won the 2014 Gartner BPM Excellence award. 1
Transcript of Vodafone Creating the perfect digital order FINALv03 - Pega · PDF file• Start with...
PegaWorldVodafone is one the world’s largest Communications companies, with over 400 million customers and 90 thousand employees in over 30 countries. One of the largest markets is in Germany. Their enterprise business shows continuous growth and has become increasingly complex due to acquisitions and fragmented IT systems, and at the same time Vodafone wants to create standardization and synergies. Vodafone Germany took the approach to decouple their legacy from the business to become more agile. The lifeblood of their enterprise business is processing customer requests and orders. The “perfect order” is digitally captured, right the first time, visible, and automated. It creates a differentiated customer experience, reduced onboarding times, increased sales and operational efficiency. In this session you’ll learn how Vodafone is using Pega to deliver digital order capture, technical order fulfillment, and business process automation with case management. And you’ll learn how they’ve approached transformation using a phased, pragmatic approach that won the 2014 Gartner BPM Excellence award.
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Jens Fudickar
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Who is talking to you?
• Graduate engineer for Computer Science at University of Applied Science, Gießen-Friedberg
• Working for Vodafone Germany since 1999 in various roles
• Project lead of the first Pega implementation project in Vodafone Germany
• Head of the Enterprise BPM Competence Group
AgendaThe ProjectE2E Overlay for Enterprise customers enabled business
The JourneyThree projects to come from an idea to the vision
VodafoneFacts & Figures
The Overlay and Big TStart small and grow later
The TakeawaysBenefits and lessons learnt
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VODAFONE
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Facts & Figures
Globally at home. Infinitely active.
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What characterizes us
• Vodafone Group: established in 1984 in Newbury, United Kingdom• Stakes in mobile communications networks
in 30 countries and partner companies in further 50 countries
• A total of about 404 million customers around the world
• A global employer of approximately 91,000 people
• One of the largest companies in the world• Second most valuable brand in Europe
Everything from a single source
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Implementing the vision “Digital Vodafone Germany – pioneers of the mobile world
• Vodafone Germany *– Integrated communications group offering mobile radio,
fixed network and broadband services, mobile data services and TV from a single source
– 10,500 employees– Sales revenues: € 9.8 billion **– Approximately 32.3 million mobile and
2.95 fixed network customers– Roughly 23 percent of Vodafone
Group‘s earnings (EBITDA)
• Kabel Deutschland *– 3,700 employees– Sales revenues: € 1,9 billion– 8,4 million customers, of which
2,2 million are broadband customers* As of FY 2014/15** Combined with Kabel Deutschland
Vodafone: Good connections for companies
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The Challenge: support dedicated Enterprise Business processes for best customer experience
Relevant Growth for years
Business Transformation
ongoing
IT-Strategy supports
Transformation
THE PROJECT
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E2E Overlay for Enterprise customers enabled business
Business Environment | Increasing complexity through merging industries, globalisation &
digitisation
Market | Cost pressure through commoditisation and strong digital competition
Enterprise Customers | Need for secure, reliable, and adaptable service & network provider
Vodafone | Need for differentiation while increasing efficiency and stabilising margins
Digital Transformation | Challenges & Demands
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Transformation need driven by four major fields of challenges & demands
Vision of Digitalizing customer requests & orders will drive the excellence of our lifecycle processes
Commercial Fulfilment
Technical Fulfilment
Product Portfolio & Product
Specifications
Customer Data & Sales Assignment
Standard Price
Availability Information
Sales Management
CleanDigital
Request /Order
Transitions to Customer Lifecycle (Online, Cust.Care)
User Profile
Offer Configuration /Guided Selling
Generate Clean Requests
Common Enabler in
Place
Request Orchestration Run
Online Self Service
Cross-Channel automation of customer care
workflows, interaction and E2E
processes
Transparent and proactive technical SLA and incident
management
Customer gets product faster
Customer experiences
“First Time Right”
Customer is understood and
informed
Customer gets easy buying experience
• 360 view on customer in Sales and Service – know customers situation and needs• Offers focused on customer‘s needs• Cross channel service journey & cross channel status information
• Significant increase in number of orders and requests without errors and clearings• Offering of feasible products only
• Significantly quicker fulfilment of customer‘s orders and requests• Elimination of manual interfaces and workarounds• Increased sales efficiency
• Clear presentation of product portfolio and intuitive guidance for offer & order configuration• Fully automated and paperless end-to-end processes• Transparent end-to-end orders and trackable end-to-end SLAs
SELL BUILD RUN
Impact on Customer ExperienceImplementing the vision “Digital Onboarding” will lead to superior customer experience
Enterprise Business IT-Overlay
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Overlay allows customer and user oriented seamless processes
Customer Self Care
DO
Solution Catalogue
Local Customer Hub
BPA – Business Process Automation
Digital Order
Products
Customer Data
eTop
Lead & Prospect
ManagementDigital
Proposal
BUILDSELL RUN
BillingOpportunity Management
CommercialFulfillment
Input Management
Case Management
Customer Care
Order & Contract
ManagementServiceConfig.
Incident Management
Service Monitoring
Online Billing
Availiability Check
Technical Fulfillment
Service Management
THE OVERLAY AND BIG T
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Start small and grow later
Why BPM and Pega PRPC• In Vodafone Germany the enterprise business is different from the consumer business• Consumer is “standard” business and highly automated.• Enterprise business is reusing consumer standards but highly individualized and
accordingly less automated.• The consumer systems did not fit the enterprise needs since only parts of the enterprise
processes are supported. • Simple tools (e.g. based on Excel) are used to fit the gaps between the consumer
systems. This leads to the situation that the user has to know what when and where he has to do. There is no application based workflow support.
• Enterprise IT decided to choose a BPM based approach to improve process adherence.• Pega PRPC was chosen because of the
• core functionality• “WYSIWYG” process design• the possibilities to build flexible and specialised processes• Fast software delivery capabilities
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BPM overlay cross the legacy
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• Common problem of IT landscapes:– Lots of legacy – Lack of integration– No process flows between the legacy systems– No time and no money for greenfield approach
• Vodafone’s solution approach:
Use BPM as overlay and orchestration solution to navigate and coordinate between the different legacy systems
Start small and grow later
Enterprise IT - general approach IT ArchitectureFrom initial situation to future mode of operations.
0. Initial Situation• Legacy dominated• Enterprise Business based on Consumer• Multiple systems / manual interactions
1. Enablement• Process oriented frontends• End-2-End approach• Business Process Management enabled
• Frontend stable and decoupled• Core function separation• Optimization / Replacement
2. Decomposition
3. Endstate• Roadmap to Target• Optimization / Replacement completed• Reuse of capabilities and overlay
• Incremental Strategyto supporturgent needs
• Limited risk
• Decoupling supports most future options for legacy stack
2010 2011 2012 2013 2014 2015
Dig
ital
Ord
erBP
A
Preparation
R 1.1
R 1.2
R 2
Preparation
R 1
R 2
eTop
Preparation
R 1 Showcase
R 2.1
R 2.2
R 3.1
R 3.2
Project History
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Planning Implementation Rollout
The Big T
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How to solve the time & budget dilemma
• Business Idea:Full blown solution to handle all type of enterprise customer requests in a fully automated system, fully integrated into legacy.
• The Challenge:– Less Time– Less Budget – ….
• The SolutionThe Big T Fu
ll B
low
n P
roje
ct S
cope
The Big T – Step 1
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Case overlay versus detailed automation
• Generic case process to handle all requests end to end.
• Focus on catching all request types and not on automation.
• Most steps are manual assignments which tell the user what to do in the legacy systems.
• Concentration on status aggregation of legacy processes to have one system which knows the case status and the detailed legacy status.
• Access into legacy applications using deep-links.• The consequences are, that there are initially
additional efforts because of duplicate work of the users in multiple systems.
Project ScopeStep 1
The Big T – Step 2
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Case overlay versus detailed automation
• Build specific case processes for the most important processes.Importance could be based on numbers, duration, pain, quality, …
• Automate single assignments by integration into legacy
• Introduce new interfaces to the legacy
The Big T – “Final” Step
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Case overlay versus detailed automation
• Build more specific case processes
• Automate more assignments by integration into legacy
• Replace legacy functionality by BPM functionality.
• Not all steps must be automated!
THE JOURNEY
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Three projects to come from an idea to the vision
BPA – Business Process Automation
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Description
BPA – Business Process Automation
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Benefits
DO – Digital Order
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Description
DO – Digital Order
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Benefits
eTop – Enterprise Technical Order Processing
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Description
• Technical fulfilment system for non automated fixed net enterprise orders
• Two main modules:– Planning & dispatching
• Project planning for big rollout projects• Skill based routing• Load based dispatching
– Technical fulfilment• Service catalogue driven process execution• Mixture of manual tasks and automated steps / integrations
• For this project Vodafone received the2014 Gartner BPM Excellence Award.
eTop – Enterprise Technical Order Processing
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Key Deliverables• Scheduling and precise controlling of
fulfilment resources• Automated, secured processes &
confidential service catalogue• Order validation & project tracking• Quality enhancements of interfaces
towards legacy systems• Introduction of new interfaces towards
legacy systems
Goals• Replacement of the old fulfilment
tool• Reduction of effort for
implementation – by appr. 30%• Reduction of average
duration/activation by 3 days• Individually and cost efficiently
adaptable for new products• Quality enhancements
eTop – Enterprise Technical Order Processing
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Benefits
Before eTop Release 2 Release 3
ImplementerDispatcherPMT-G
Savings [ fulfilment time ]
Milli
on m
in. /
yea
r
Costs vs Savings [ € ]
Mio €
Future Phases
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Description
THE TAKEAWAYS
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Benefits and lessons learnt
Business Integration
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• The first character in BPM is business• BPM projects will always have a big business impact, the way
how business is working will change.• Projects introducing BPM software are not IT projects.• Start with process definition and business alignment before
defining software requirements.• Business have to be integrated into the project from the first
step of requirement gathering over the testing into the final business transformation and rollout.
Agility against legacy and waterfall
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• It’s a dilemma • Normally the Pega process of DCO’s is the perfect approach to
deliver the software in an agile way.• Without a company culture of delivering software in an agile way
pushing agile will lead to problems.• In Vodafone Germany waterfall is established for the
project/budgeting processes and for the legacy development.• We now use the DCO approach to write the specification in an agile
way. Only when the specification is finished / signed by business we start the software development (which could be done agile again).
Agility against legacy and waterfall
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Development Lifecycle
High Level Requirements Definition
Analysis Finalisation Sprint Sprint Sprint. . .
Test AcceptanceTest Test. . .Documentation and Presentation
Setup
Requirem
ent D
efinitionIm
plementation
Iterative
Serial
Rollout Rollout. . .
Training and Enablement
Preparation FinalisationDCO DCO DCO DCO. . .UC Specification and Functional Documentation (UseCase signed, Functional Fixed)
IT Specification
G0
G1
G2
G5Go Live
G6
Requirements
SpecificationBusiness Part
IT Spec
Software
RolloutDeploy-ment / Opera-tions
Business
Business IT-Ops
IT-Development
What would I suggest?
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• Business, Business, Business!!! (From an IT-Perspective)• Processes, processes, processes!!!• Don’t use automation as the main benefit, concentrate on
process execution.Execution before Automation
• Train the Pega methodology before you start.Training is needed for business and IT AND management.
• Build a “Center of Excellence” / “Competence Group” as early as possible.
Start small and grow later
Q & A
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? ! ? ! ? ! ? ! ? ! ? ! ? ! ? ! ? ! ? ! ? ! ? ! ? ! ? ! ? ! ? !
Q & A
• Opening with the Vodafone context of strategy, transformation approach and collaboration with Pega in current program and other programs(eTOP, BPA)
• Talk about the reason for change Digital Order project; lost orders, blocked order, slow order cycle time, etc
• Describe what you have built for Digital order; working with existing industrial systems to create a better end result
• Explain why Pega was the best solution. You can go into alternatives that you evaluated.• Explain the different upstream systems/channels etc. Explain issue with orders from
upstream systems.• Discuss how you are driving the business transform to uptake the new solution.• Describe value in terms of dollars or time saved. If you don’t have actuals then you can
use expected results.• Discuss future plans or phases of program• Finishing up with the lessons learnt and some ideas of what you might have done
differently if you knew then what you know now.
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5.8
2.5 2.5
1.1
0.4 0.4
11.3
11.3
6.8
Before eTop Release 2 Release 3
ImplementerDispatcherPMT-G
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Milli
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yea
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Project eTopSavings [ fulfilment time ]
0
5
10
15
20
25
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Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Savings
Costs
Business Case
43C2 - Internal
Mio €
2012 2013 2014 2015 2016 2017
Release 2
Release 3
Costs vs Savings [ € ]
