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

October 12, 2017 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

October 12, 2017 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
October 12, 2017 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
October 12, 2017 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

October 12, 2017 6

Spectrum Of Product/Solution/Service

Take
Sell Me Responsibilit
Products That Sell Me A y For
I Will Use To Solution To A Operating
Solve A Problem The Solution
Problem To The
Problem

October 12, 2017 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

October 12, 2017 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

October 12, 2017 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
October 12, 2017 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
October 12, 2017 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
October 12, 2017 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

October 12, 2017 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

October 12, 2017 14

 Sample Enterprise Business Process Models - 1
Business Environment
Competitors, Governments Regulations and Requirements, Standards, Economics

Customers 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

Suppliers Processes
October 12, 2017 15
Sample Enterprise Business Process Models - 2
Align

Supply Chain
Innovate Plan

Source Make Fulfil Customers

Sell

Build

People Finance Information Environment Governance

October 12, 2017 16

Sample Enterprise Business Process Models
Common Structure
Vision, Operational Processes With Cross Functional Linkages
Strategy,
Business Develop and
Market and Deliver Manage
Management Manage
Sell Products Products and Customer
Products and
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

October 12, 2017 17

Achieving the Potential New Product/Service/Solution
Innovation Industrialisation and Productisation

Productisation is a pre-requisite for and an enabler of

industrialisation

Industrialisati Productisation
on
Defined Set of
Common Products/Solutions/
Implementation and Services and
Operation Packaging/Delivery
Approaches Options

October 12, 2017 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

October 12, 2017 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

October 12, 2017 20

Innovation Extends Creativity To Implementation
And Generation Of Value

Manage
Sell
Market
Implement
Verify
Clarify
Develop
Discern
Using a Structured Approach
to Industrialising Innovation
Maximises Value

October 12, 2017 21

Where Organisations Look For Innovation

Product/solution/service innovation is just one aspect of a

wider view of innovation

October 12, 2017 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?
October 12, 2017 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 organisations portfolio
Enable the organisation strategic and business
product/solution/service vision
Drive internal and customer-oriented processes to meet market
demand and customer expectations

October 12, 2017 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

October 12, 2017 25

Strategy, Infrastructure and
Product/Solution/Service (SIPSS) Function
Innovation
development of new
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
October 12, 2017 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

October 12, 2017 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

October 12, 2017 28

SIPSS Vertical Process Views
Strategy and Commit
Responsible for the generation of
strategies and establishment of
business commitment in support of
the Infrastructure and
Product/Solution/Service Lifecycle
processes involving all levels of
operation from market, customer
and products/solutions/services,
through the services and the
resources on which these depend to
the involvement of suppliers and
partners in meeting these needs
October 12, 2017
Strategy, Infrastructure and
Product/Solution/Service
(SIPSS)
Infrastructure Lifecycle
Management
Responsible for the definition,
planning and implementation of all
necessary infrastructures
(application, IT and network), as
well as all other support
infrastructures and business
capabilities (operations centers,
architectures, etc.)
Product, Solution and Service
Lifecycle Management
Responsible for the definition,
planning, design and
implementation of all
products/solutions/services in the
organisations portfolio to required
profit margins customer satisfaction
and quality commitments,
delivering new and retiring existing
products/solutions/services to the
market
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 the
Management 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
October 12, 2017 30
Horizontal Process Functional Structure

Four levels of process detail

Level 1
within horizontal structure

Level 2

Level 3

Level 4

October 12, 2017 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
October 12, 2017 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

October 12, 2017 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

October 12, 2017 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

October 12, 2017 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

October 12, 2017 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

October 12, 2017 37

Product And Offer Development And Retirement
Levels 3 and 4 Process Details
Gather and Analyse
New Product Ideas
Research and analyse demographic, customer, technology and marketing information to
identify new product and offer potential opportunities, compare current capabilities
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
Retirement Develop and document the detailed product-related technical, performance and
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
October 12, 2017 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
October 12, 2017 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

October 12, 2017 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
October 12, 2017 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

October 12, 2017 42

Use The Framework As A Checklist For
Product/Solution/Service Development
Marketing and Offer Management
October 12, 2017
Market Strategy and Policy
Product and Offer Portfolio Planning
Product and Offer Capability Delivery
Marketing Capability Delivery
Product and Offer Development and Retirement
Gather and Analyse Market Information
Establish Market Strategy
Establish Market Segments
Link Market Segments and Products
Gain Commitment to Marketing Strategy
Gather and Analyse Product Information
Establish Product Portfolio Strategy
Produce Product Portfolio Business Plans
Gain Commitment to Product Business Plans
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
Define Marketing Capability Requirements
Gain Marketing Capability Approval
Deliver Marketing Infrastructure
Manage Handover to Marketing Operations
Manage Marketing Capability Delivery Methodology
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
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

October 12, 2017 44

More Information

Alan McSweeney
alan@alanmcsweeney.com

October 12, 2017 45