Future is here.
I never think of the future. It comes soon enough. Albert Einstein
Forums of CSP Transformation are very clear with the current keys to success:
- Connect with your customers (customer experience management).
- Innovate in products and services with a reduced time to market.
- Transform your business in a digital business.
This is not a recipe and its ingredients. The question is: how do CSPs achieve this?
Business Transformation is not just an IT concern. IT is an enterprise function where all business processes are supported through Technology including applications, software tools (application servers, data bases…), base software (Operating systems…), infrastructure (servers, connectivity…) and data. We all agree that the IT function requires very specific skills, usually far different from the rest of the organization and it could be tempting for Management to ask the CIO to solve the business needs just implementing some magical new technology. But technology is not a medicine for a symptom.
From a technical perspective, new technology can improve the business process support but this is not enough.
From the marketing point of view, paradigms have changed to place the customer perception as the center of its strategy, but this is still not enough.
In the CSP business, market rules have been moved from physical channels to virtual channels or a combination of both. This means that business transformation requires expertise from different areas as Marketing and Strategy where IT plays as enabler.
In the following schema we summarize business transformation in a three steps approach.
People with goals succeed because they know where they’re going. Earl Nightingale.
If our company wants to be in the arena of the future, it has to change to adapt to the current market.
In order to do so, it is required that the CxO board defines the company vision, that is, where the company has to be in the future to reach the position defined.
The business vision should have the following characteristics:
- It is clear and detailed as much as possible.
- It can be explained in simple words.
- It should be understandable for everyone in the organization.
Everyone in the organization needs to know the vision. The vision needs to be set and properly documented clearly by the CxO board.
Business transformation stresses organizations, but the transformation effort will have more chances to succeed if the stakeholders know beforehand what they can expect at the end of the trip. If your vision is understandable, detailed and clear your team will buy into it.
IT Transformation Design
Nowadays IT has the role of enabler of any Business Transformation. IT supports the business and IT Transformation Design defines the critical path to succeed in Business Transformation.
Altran identifies the business goals and vision as the key drivers of IT Transformation Design. For this reason, the recommended team to conduct the IT transformation Design should be a business and technical blended one.
In order to support CSPs in the IT Transformation effort, we have created a specific Framework intended to stablish the baselines in the IT Transformation Design stages.
The Framework includes following stages:
- Business Process (Assessment and Target) to analyze business strategy, propose target business processes and identify GAPs with existing business processes.
- Architecture (Assessment and Target) to identify the applications, data and technology required to support Target Business Processes and identify GAPs with existing Architecture.
- Architecture Roadmap to stablish the strategy and plan to deliver Target Architecture.
Although, from a methodological point of view, projects are evaluated from the relationship cost versus business value and risk; it is crucial consider that business value rely on Business Strategy, so for instance, if Customer Experience Management is part of the Business Strategy, it is an error not to consider Omni-Channel related projects as a priority.
Another important consideration is to stablish how to implement all identified projects, so that, it is important that Roadmap Implementation delivers business value as soon as possible through quick-wins linked to it.
All incumbent CSPs have different legacy systems to replace, duplicated and replicated with different versions, to support different markets, products and services. This forces them to have a well addressed strategy to join for one hand quick wins (time to market), and a complete transformation that ensure them their future business availability.
We propose two tracks to address it:
- The faster one for delivering business value to the organization stakeholders.
- The slower one for projects related with technical obsolescence (legacy replacement where data migration and integration process is critical).
Both tracks must be aligned to stablish a unique architecture roadmap and obtain synergies between them, so a well-structured Program Management Office including Change Management one is a must to assure the final delivery.
Divide et impera. Julio César.
The main threats of CSP’s Roadmap Implementation can be summarized as follows:
- Sponsors are no longer in the organization.
- Business goals changes before Roadmap Implementation is finalized.
- Vision is not enough detailed and Roadmap Implementation scope is revisited and revisited.
The scope of CSP Roadmap Implementation Programs is big enough to take several years to implement. Although IT Transformation defines a roadmap with different projects, Altran proposes an “extended agile approach” in CSP Roadmap Implementation to focus on providing business value throughout the Program.
“Extended agile approach” is the philosophy behind the CSP Roadmap Implementation and it has two Key Success Factors:
- Success Factor 1: Roadmap prioritization should consider a specific area or department to be the flag bearer of the Business Transformation Program.
- Success Factor 2: Each sprint (for this kind of programs it is recommended 3 or 4 weeks long) deliverables should deliver business value and quickwins to the organization.
The world is involved in a revolution: the way we do business, the way customer operates with business, and even the way we work as employees is changing.
Everything is going to be Digital and this means that everything is going to be faster, much faster … and organizations need to move forward to adapt. Organizations need to move forward to succeed.
Is your organization ready to move forward?