Applying eTOM (enhanced
Telecom Operations Map)
Framework to Non-
Telecommunications Service
Companies - An
Product/Service/Solution
Innovation Example
Alan McSweeney
As Its Simplest, Innovation Is …
• A good idea successfully implemented and operated
• This implies the need for effective processes for generating
and identifying good ideas and for bringing them to
fruition
December 31, 2011 2
Successful Innovation Means …
• Having a function and associated processes for Product,
Solution and Service Lifecycle Management (PSSLM)
− Structured approach to the introduction of innovations within
product/service/solution offerings from concept to delivery and
operation
• There is no easy way to creating a new
product/solution/service designed for large-scale sale and
use
December 31, 2011 3
Move To Service Management
• Trends in information technology such as cloud and XaaS
are moving companies from product to service and utility
suppliers
• Evolution of telecoms companies mirrors the path many
companies want to follow
− Move from provision of telecoms links to services (voice, data,
television, gaming, wireless)
− Telecoms industry can provide a model for business processes
and best practices for other industries looking to move to greater
service orientation
• Move to services can be challenging for companies
• A structured approach to innovation in important in such a
move
December 31, 2011 4
Spectrum Of Product/Solution/Service
Services Solution As A
Supplied Service (Cloud,
As Part Of XaaS, Utility
Solution Services, etc.)
Limited Ongoing Utility
Product Solution
Services Services Services
Collection Extended Services
Of Products Such As Warranty
Provided As And Support,
A Package Warranty Renewal
December 31, 2011 5
Migration From Products to Services
Where Many Where Many
Companies Companies
Are Now Want To Be
Limited Ongoing Utility
Product Solution
Services Services Services
Need A Structured Process For
Innovation To Achieve Services Vision
December 31, 2011 6
Spectrum Of Product/Solution/Service
Sell Me Take
Products That I Sell Me A Responsibility
Will Use To Solution To A For Operating
Solve A Problem The Solution To
Problem The Problem
December 31, 2011 7
Innovation Means …
• Acceptance of change – innovation implies and requires change
• Innovation exposes an organisation to change
• A secondary affect of successful innovation is the willingness of an organisation to
change
• To be good at innovation means to be good at change
• Innovation means welcoming change and being able to successfully deliver change
• Innovation means continuously challenging accepted conventions
• If you cannot change, you cannot innovate
December 31, 2011 8
Changes Implied By And Required For Move To
Utility Services
Changes
The Nature Changes
Of Financial The Services
Changes Relationship Provided
With The Customer Changes
The Nature Of Changes
To The
The Business The Information
Organisation
Relationship You Have On
Cost Model
With The Customer The Customer
Implementing and Sustaining
Underlying
Organisation
Change
December 31, 2011 9
Changes Implied By And Required For Move To
Utility Services
• Changes The Nature Of The Business Relationship With The
Customer: organisation becomes responsible for service
management (availability, continuity, capacity, change, release, risk,
security, access, facilities, compliance and many others)
• Changes The Nature Of Financial Relationship With The Customer:
from initial payments and with smaller recurring component to near
continuous payment for service
• Changes To The Organisation Cost Model: shift costs to organisation
from customer as initial and ongoing investment required to
generate recurring service revenue with consequences for cashflow
and growth
• Changes The Services Provided: from initial supply with some
packaged services and ongoing support/warranty to service
management-oriented services
• Changes The Information You Have On The Customer: you know
their pattern of usage of your service (product) and can obtain and
exploit such insights
December 31, 2011 10
eTOM (enhanced Telecom Operations Map)
• Provides a detailed process framework for a telecoms utility
companies that can be adopted by non-telecoms organisations
moving to solutions as a service operating model
− Developed by TM Forum - www.tmforum.org
− eTOM -
http://www.tmforum.org/BusinessProcessFramework/1647/home.html
• Reference framework that classifies and defines the business
activities used by a company involved in delivering (online) services
– three major process areas:
− Strategy, Infrastructure and Product – concerned with planning and lifecycle
management
− Operations – concerned the core of operational management
− Enterprise Management – concerned corporate or business support
management
• Offers the potential for non-telecoms companies to learn from an
effective operational framework
December 31, 2011 11
eTOM Business Process Framework Overview
Operational
Customer
Processes – Sales,
Fulfillment,
Assurance, Billing
and Support
Strategy, New Ideas, Products And Associated
Supporting Infrastructure Moved to
Production and Steady-State Operations
Strategy,
Infrastructure Operations
and Product
Enterprise
Management
Fundamental Supporting
Business Processes Needed To
Run Any Business
December 31, 2011 12
eTOM Business Process Framework - Detail
Strategy, Infrastructure and Product Operations
Strategy and Infrastructure Product Operations Fulfilment Assurance Billing and
Commit Lifecycle Lifecycle Support and Revenue
Management Management Readiness Management
Marketing and Offer Management Customer Relationship Management
Service Development and Management Service Management and Operations
Resource Development and Management Resource Management and Operations
Supply Chain Development Management Supplier/Partner Relationship Management
December 31, 2011 13
eTOM Enterprise Business Process Model – Common
Structure
• eSample business process model has a three pillar structure that is common to
other business process models
• Generic structure that forms a template for specific actualisations
• eTOM provides a detailed template for communications service providers that can
be applied to other similar service companies
Operational Processes With
Cross Functional Linkages
Vision,
Strategy,
Leadership,
Business
Management
Management and Support
Processes
December 31, 2011 14
Sample Enterprise Business Process Models - 1
Business Environment
Competitors, Governments Regulations and Requirements, Standards, Economics
Customer’s Process Needs
Business
Core Processes Business
Processes That Create Value for the Customer
Controlling Measurement
Process Process
Customer Product Order Customer
Processes That Acquisition Delivery Fulfilment Support Processes That
Direct and Tune Monitor and
Other Processes Report the
Results of Other
Enabling Processes Processes
Processes That Supply Resources to Other Processes
Channel Supply Human Information Business
Management Management Resources Technology Acquisition
Supplier’s Processes
December 31, 2011 15
Sample Enterprise Business Process Models - 2
Align
Supply Chain
Innovate Plan
Source Make Fulfil Customers
Sell
Build
People Finance Information Environment Governance
December 31, 2011 16
Sample Enterprise Business Process Models –
Common Structure
Vision, Operational Processes With Cross Functional Linkages
Strategy,
Business Develop and
Market and Deliver Manage
Manage
Management Products and
Sell Products Products and Customer
and Services Services Service
Services
Vision and
Strategy
Management and Support Processes
Business
Planning, Human Information
Financial Facilities
Merger, Resource Technology
Management Management
Acquisition Management Management
Legal,
Governance Regulatory, Knowledge,
External
and Environment, Improvement
Relationship
Compliance Health and and Change
Management
Safety Management
Management
December 31, 2011 17
Achieving the Potential – New Product/Service/Solution
Innovation Industrialisation and Productisation
• Productisation is a pre-requisite for and an enabler of
industrialisation
Productisation
Industrialisation
Defined Set of
Common Implementation Products/Solutions/
and Operation Services and
Approaches Packaging/Delivery
Options
December 31, 2011 18
Innovation and eTOM
• Innovation is about managing the value from new ideas
• New and enhanced existing products, solutions and
services are just one aspect of innovation
• Product, Solution and Service Lifecycle Management
(PSSLM) is a generalised view of completing the innovation
process and achieving actualisation of ideas
December 31, 2011 19
Migration From Products to Services
Where Many Where Many
Companies Companies
Are Now Want To Be
Limited Ongoing Utility
Product Solution
Services Services Services
Use Appropriate Elements Of eTOM
Process Framework To Achieve Services
Innovation And Transformation
December 31, 2011 20
Innovation Extends Creativity To Implementation
And Generation Of Value
Manage
n Sell
atio
Innov Market
Implement
Verify
Value
Clarify
Develop
Discern y
tivit
Crea Using a Structured Approach
to Industrialising Innovation
Maximises Value
December 31, 2011 21
Where Organisations Look For Innovation
• Product/solution/service innovation is just one aspect of a
wider view of innovation
December 31, 2011 22
Where Organisations Can Look For Innovation
Business Model How Do You Make Money?
Finance Networking and How Do You Work With Other Organisations For Mutual Benefit?
Alliances
Core Processes How Do You Create and Add Value To Your Products And Services?
Processes
Enabling Processes How Are Core Processes Supported And Enabled?
Product
How Do You Design Your Core Products And Services?
Performance
Products
How Do You Connect Or Provide A Common Platform For Your
and Product System Products And Services?
Services
How Do You Provide Value To Your Customers Beyond Your Core
Service Products And Services?
Channel How Do You Get Core Products And Services to Market?
Provision
Brand How Do You Communicate Your Core Products And Services?
and
Delivery Customer How Do Customers Feel When They Interact With Your Organisation
Experience And Your Products And Services?
December 31, 2011 23
Product, Solution and Service Lifecycle Management
(PSSLM)
• PSSLM is concerned with the functions and processes need
to define, plan, design, build, deliver, maintenance,
manage revise and retirement of all products, solutions
and services in the organisation’s portfolio
− Enable the organisation strategic and business
product/solution/service vision
− Drive internal and customer-oriented processes to meet market
demand and customer expectations
December 31, 2011 24
Product, Solution and Service Lifecycle Management
(PSSLM)
• PSSLMbelongs within Strategy, Infrastructure and
Product/Solution/Service (SIPSS) function
• Responsibilities of SIPSS function
−Develop strategy
−Commit to the organisation
−Build and resources infrastructure - supports the
delivery products, solutions and services themselves and
their associated functional processes
−Develop and manage products, solutions and services
−Develop and manage the supply chain
December 31, 2011 25
Strategy, Infrastructure and
Product/Solution/Service (SIPSS) Function
– development of new
• Innovation
products/services/solutions lie in SIPSS function
• SIPSS divided into
−Horizontal functional groups
• Marketing and Offer Management
• Service Development and Management
• Resource Development and Management
• Supply Chain Development Management
−Vertical process views
• Strategy and Commit
• Infrastructure Lifecycle Management
• Product, Solution and Service Lifecycle Management
December 31, 2011 26
Strategy, Infrastructure and Product/Solution/Service
(SIPSS) - Horizontal Process Functions and Vertical Process
Views
Strategy, Infrastructure and Product/Solution/Service (SIPSS)
Strategy and Commit Infrastructure Lifecycle Product, Solution and
Management Service Lifecycle
Management
Marketing and Offer Management
Service Development and Management
Resource Development and Management
Supply Chain Development Management
December 31, 2011 27
Strategy, Infrastructure and Product/Solution/Service
(SIPSS) - Horizontal Process Function Details
Marketing and Offer Management
Product and Product and Product
Market Product and Marketing
Offer Offer Sales Marketing
Strategy and Offer Portfolio Capability
Capability Development Development Communications
Policy Planning Delivery
Delivery and Retirement and Promotion
Service Development and Management
Service Service Service
Strategy and Capability Development
Planning Delivery and Retirement
Resource Development and Management
Resource Resource Resource
Strategy and Capability Development
Planning Delivery and Retirement
Supply Chain Development Management
Supply Chain
Supply Chain Supply Chain
Development
Strategy and Capability
and Change
Planning Delivery
Management
December 31, 2011 28
SIPSS – Vertical Process Views
Strategy, Infrastructure and
Product/Solution/Service
(SIPSS)
Infrastructure Lifecycle Product, Solution and Service
Strategy and Commit
Management Lifecycle Management
Responsible for the generation of
Responsible for the definition,
strategies and establishment of
planning, design and
business commitment in support of Responsible for the definition,
implementation of all
the Infrastructure and planning and implementation of all
products/solutions/services in the
Product/Solution/Service Lifecycle necessary infrastructures
organisation’s portfolio to required
processes involving all levels of (application, IT and network), as
profit margins customer
operation from market, customer well as all other support
satisfaction and quality
and products/solutions/services, infrastructures and business
commitments, delivering new and
through the services and the capabilities (operations centers,
retiring existing
resources on which these depend architectures, etc.)
products/solutions/services to the
to the involvement of suppliers and
market
partners in meeting these needs
December 31, 2011 29
SIPSS - Horizontal Process Functional Groups
Defines strategies, develops new
products/solutions/services, manages existing
Marketing and Offer products/solutions/services including retirement,
Management manages pricing, sales and channels and implements
marketing communications and promotion and
offering strategies
Plans, develops and delivers services to operations
domain for product/solution/service creation and
Service Development and design, managing and assessing the performance of
Management existing products/solutions/services and ensuring that
capabilities are in place to meet future
product/solution/service demand
Strategy, Infrastructure and
Product/Solution/Service
(SIPSS)
Plans, develops and delivers the resources - physical
and non-physical - needed by operations to support
Resource Development and products/solutions/services, manages and assesses
Management the performance of existing resources and ensures
that capabilities are in place to meet future
products/solutions/services needs
Focuses on the interactions required by the
organisation with suppliers and partners who are
Supply Chain Development involved in maintaining the supply chain network of
Management relationships that a service provider manages to
source and deliver products, supports sourcing
decisions, suppliers and partners selection
December 31, 2011 30
Horizontal Process Functional Structure
• Four levels of process detail
Level 1
within horizontal structure
Level 2
Level 3
Level 4
December 31, 2011 31
Product, Solution and Service Lifecycle Management
– Functional Structure – Levels 1, 2 and 3
Product, Solution and
Service Lifecycle
Level 1
Management
Level 2
Supply Chain
Marketing and Offer Service Development Resource Development
Development and
Management and Management and Management
Management
Market Strategy and Service Strategy and Resource Strategy and Supply Chain Strategy
Policy Planning Planning and Planning
Product and Offer Service Capability Resource Capability Supply Chain Capability
Portfolio Planning Delivery Delivery Delivery
Supply Chain
Product and Offer Service Development Resource Development
Development and
Capability Delivery and Retirement and Retirement
Change Management
Marketing Capability
Delivery
Level 3
Product and Offer
Development and
Retirement
Sales Development
Product Marketing
Communications and
Promotion
December 31, 2011 32
Product, Solution and Service Lifecycle Management
– Functional Structure
• Functional view of what is needed to productise the results
of innovation
• Not prescriptive of the approach
December 31, 2011 33
Marketing and Offer Management – Levels 2, 3 and
4 Level 2 Level 3
Marketing and
Offer Management
Product and Offer Product Marketing
Market Strategy Product and Offer Product and Offer Marketing
Development and Sales Development Communications
and Policy Portfolio Planning Capability Delivery Capability Delivery
Retirement and Promotion
Define Product
Gather and Gather and Define Product Define Marketing Gather and Monitor Sales and
Marketing
Analyse Market Analyse Product Capability Capability Analyse New Channel Best
Promotion
Information Information Requirements Requirements Product Ideas Practice
Strategy
Capture Product Gain Marketing Assess Develop Product
Establish Market Establish Product Develop Sales and
Capability Capability Performance of and Campaign
Strategy Portfolio Strategy Channel Proposals
Shortfalls Approval Existing Products Message
Produce Product Develop New Develop New Sales Select Message
Establish Market Approve Product Deliver Marketing
Portfolio Business Product Business Channels and and Campaign
Segments Business Case Infrastructure
Plans Proposal Processes Channels
Link Market Gain Commitment Manage Handover Develop Product Develop
Deliver Product
Segments and to Product to Marketing Commercialisation Promotional
Capability
Products Business Plans Operations Strategy Collateral
Gain Commitment Manage Handover Manage Marketing Develop Detailed Manage Message
to Marketing to Product Capability Delivery Product and Campaign
Strategy Operations Methodology Specifications Delivery
Manage Product Monitor Message
Manage Product
Capability Delivery and Campaign
Development
Methodology Effectiveness
Level 4 Launch New
Products
Manage Product
Exit
December 31, 2011 34
Service Development and Management – Levels 2, 3
and 4
Service Development and
Management
Service Development and
Service Strategy and Planning Service Capability Delivery
Retirement
Gather and Analyse Service Map and Analyse Service Gather and Analyse New Service
Information Requirements Ideas
Capture Service Capability Assess Performance of Existing
Manage Service Research
Shortfalls Services
Establish Service Strategy and Gain Service Capability Develop New Service Business
Goals Investment Approval Proposal
Develop Detailed Service
Define Service Support Strategies Design Service Capabilities
Specifications
Enable Service Support and
Produce Service Business Plans Manage Service Development
Operations
Develop Service Partnership Manage Service Capability
Manage Service Deployment
Requirements Delivery
Gain Enterprise Commitment to Manage Handover to Service
Manage Service Exit
Service Strategies# Operations
December 31, 2011 35
Resource Development and Management – Levels 2,
3 and 4
Marketing and Offer
Management
Resource Development and
Resource Strategy and Planning Resource Capability Delivery
Retirement
Gather and Analyse Resource Map and Analyse Resource Gather and Analyse New
Information Requirements Resource Ideas
Capture Resource Capability Assess Performance of Existing
Manage Resource Research
Shortfalls Resources
Establish Resource Strategy and Gain Resource Capability Develop New Resource Business
Architecture Investment Approval Proposal
Define Resource Support Develop Detailed Resource
Design Resource Capabilities
Strategies Specifications
Enable Resource Support and
Produce Resource Business Plans Manage Resource Development
Operations
Develop Resource Partnership Manage Resource Capability
Manage Resource Deployment
Requirements Delivery
Gain Enterprise Commitment to Manage Handover to Resource
Manage Resource Exit
Resource Plans Operations
December 31, 2011 36
Supply Chain Development and Management –
Levels 2, 3 and 4
Supply Chain Development
and Management
Supply Chain Strategy and Supply Chain Capability Supply Chain Development
Planning Delivery and Change Management
Gather and Analyse Supply Determine the Sourcing Manage Supplier/Partner
Chain Information Requirements Engagement
Establish Supply Chain Determine Potential Manage Supply Chain
Strategy and Goals Suppliers/Partners Contract Variation
Define Supply Chain Support Manage Supplier/Partner
Manage the Tender Process
Strategies Termination
Produce Supply Chain Gain Tender Decision
Business Plans Approval
Gain Enterprise Commitment Gain Approval for Commercial
to Supply Chain Plans Arrangements
Negotiate Commercial
Arrangements
December 31, 2011 37
Product And Offer Development And Retirement –
Levels 3 and 4 Process Details
Gather and Analyse Research and analyse demographic, customer, technology and marketing information to
identify new product and offer potential opportunities, compare current capabilities
New Product Ideas with the identified opportunities and develop new opportunity concepts
Assess Performance of Analyse the performance of existing products to identify inadequacies and required
Existing Products improvements using information from customers and from operational activities
Develop and document business proposals for the identified new product concept,
Develop New Product including a business case, identifying the new product requirements, service
Business Proposal components, development costs and anticipated benefits, risks and the competitive
positioning
Develop Product Ensure that product specific pricing, sales channel support and regulatory approvals are
Commercialisation identified and agreed and developed ensuring that all commercialisation aspects of the
Product And Offer Strategy product development process associated with selling the product are covered
Development And
Develop and document the detailed product-related technical, performance and
Retirement Develop Detailed operational specification including required product features, the specific service and
Product Specifications resource requirements and selections, the specific performance and operational
requirements and support activities
Manage Product Ensure the co-coordinated delivery in line with the approved business case of all
Development required product capabilities for that business case across the organisation
Manage the initial introduction of new and enhanced products into the market and
Launch New Products handover to operations for ongoing rollout
Identify existing products which are unviable and manage the processes to exit the
product from the market, identify customers impacted by the exit, develop customer
Manage Product Exit specific or market segment exit or migration strategies, develop infrastructure transition
and/or replacement strategies
December 31, 2011 38
Sample Cross-Functional Scenario - Get Approval For The
Development Of A New Product/Solution/Service
• Product/solution/service consists of components that can be reused to further
define and build new products/solutions/services
• New product/solution/service proposal is then submitted for approval
• Processes involved in this scenario are:
− Product and Offer Portfolio Planning
− Product Marketing Communications and Promotion
− Product and Offer Development and Retirement
− Service Strategy and Planning
− Service Development and Retirement
− Resource Development and Retirement
− Product and Offer Capability Delivery
− Service Capability Delivery
− Resource Capability Delivery
• Outputs from scenario
− New product/solution/service with its associated services and resources developed,
tested and accepted
− Configuration information including pricing rules and promotions
• Steps can be iterated for rapid product/solution/service concept exploration and
examination
December 31, 2011 39
Process Interactions – Get Approval For The
Development Of A New Product/Solution/Service
Product and Offer
Capability
Delivery
Product and Offer
1 Development and
Retirement
2
Service Capability
14 Delivery
3 5
Service 6
Development and 4
Retirement
Product and Offer Product and Offer Service Resource Resource Supply Chain
Service Capability Supply Chain
Capability Development and Development and Capability Development and Development and
Delivery Capability
Delivery Retirement Retirement Delivery Retirement Change
Delivery
Management
15 Resource 8 7
13 Capability 9
Delivery
11
Resource
Development and 10
Retirement
Supply Chain
Capability 12
Delivery
Supply Chain
Development and
Change
Management
December 31, 2011 40
Process Interactions – Get Approval For The
Development Of A New Product/Solution/Service
1. Provide Product/Solution/Service Development Plan
2. Provide Product/Solution/Service Development Plan
3. Provide Resource Infrastructure Requirements
4. Provide Product/Solution/Service Deployment Plan
5. Provide Service Infrastructure Requirements
6. Provide Supplier/Partner Capability Requirements
7. Provide Supplier/Partner Infrastructure Requirements
8. Provide Resource Infrastructure Requirements
9. Provide Supplier/Partner Required Capabilities
10. Provide Resource Infrastructure Plan
11. Provide Supplier/Partner Integration Plan
12. Seek Approval For Supplier/Partner Infrastructure and Integration Plan
13. Seek Approval For Resource Infrastructure Plan
14. Seek Approval For Service Infrastructure Plan
15. Seek Approval For Product Infrastructure Plan
December 31, 2011 41
Repeat Process Cycle At Greater Levels Of Detail For
Refinement and Iterative Delivery And Identification of
Appropriate Innovations
Product and Offer
Capability
Delivery
Product and Offer
Development and
Retirement
Service Capability
Delivery
Service
Development and
Retirement
Product and Offer Product and Offer Service Resource Resource Supply Chain
Service Capability Supply Chain
Capability Development and Development and Capability Development and Development and
Delivery Capability
Delivery Retirement Retirement Delivery Retirement Change
Delivery
Management
Resource
Capability
Delivery
Resource
Development and
Retirement
Supply Chain
Capability
Delivery
Supply Chain
Development and
Change
Management
December 31, 2011 42
Use The Framework As A Checklist For
Product/Solution/Service Development
Marketing and Offer Management Market Strategy and Policy Gather and Analyse Market Information
Establish Market Strategy
Establish Market Segments
Link Market Segments and Products
Gain Commitment to Marketing Strategy
Product and Offer Portfolio Planning Gather and Analyse Product Information
Establish Product Portfolio Strategy
Produce Product Portfolio Business Plans
Gain Commitment to Product Business Plans
Product and Offer Capability Delivery Define Product Capability Requirements
Capture Product Capability Shortfalls
Approve Product Business Case
Deliver Product Capability
Manage Handover to Product Operations
Manage Product Capability Delivery Methodology
Marketing Capability Delivery Define Marketing Capability Requirements
Gain Marketing Capability Approval
Deliver Marketing Infrastructure
Manage Handover to Marketing Operations
Manage Marketing Capability Delivery Methodology
Product and Offer Development and Retirement Gather and Analyse New Product Ideas
Assess Performance of Existing Products
Develop New Product Business Proposal
Develop Product Commercialisation Strategy
Develop Detailed Product Specifications
Manage Product Development
Launch New Products
Manage Product Exit
December 31, 2011 43
Summary
• eTOM (enhanced Telecom Operations Map) business
process framework can provide a workable model for
transition to services for non-telecommunications service
providers
• Proven framework for area of services provision
• Organisations offering cloud and XaaS services moving
from products to communications-like utility services
• eTOM can be extended outside its core
telecommunications focus to these organisations
December 31, 2011 44
More Information
Alan McSweeney
alan@alanmcsweeney.com
December 31, 2011 45