Business Improvement Guidance Strategy & Implementation Stage

Program Report Delivery- RFI Business Process Management
1. Executive Summary - Program Overview
2. Trend, Market & Competitor Analysis – Extenal
3. Company Performance & Initiative – Internal Insight
4. SWOT Analysis .. Or another
5. Business Process Management (BPM) Maturity Model - Current State vs. Target State -
Assesment
6. Process, Organization, Technologies & Culture to consider to reach our BPM Transformation
Strategic Objectives
1
<Office> 131116_Indosat Managed S ... OG_v17
3 Model Operating Model
Agile Waterfall Legacy
2
At the Strating point- what the End Game
There is no “silver bullet” framework to drive the Transfomation/change
This Matrix below can be

used to gather the
internal Insight to got
better undesrtatend the
cusotmer needs before
the transformation
plan/design
3
Indonesia Digital Economy Outlout - SME Stregthenen
4
5
Indonesia Digital Trend area Align with the Telkomsel going to be
driver for Indonesia Digital Community
6
Indonesian Technology Trend – New Technology for
Enterprise 2020
7
Business Segmentation
8
Where are the Enterprise Territories & Segments
9
Key Focus Area for Enterprise
10
Managing VUCA -
Covid
REgulation---
11
Managing VUCA in Telco Industry
Ambiguity
Volatility Uncertainty Complexity
Future applications
Regularity authorities Market Infrastructure
Consumer expectations
Individuals stock Consumers behavior Network provisioning
Next generations
Market GDP growth Network operations
New routes to innovation
Budget Services delivered
Public policy or political decisions
Cut throat competition
Volatility is replaced Uncertainty is replaced Complexity is Ambiguity is replaced
with vision with understanding replaced by clarity by agility.
6 important mitigation challenges having VUCA conditions are:

1. Adopting the latest Technology
2. Availability of Content
3. The Security Threats
4. Tough Competition from OTT
5. 5G technology
6. VUCA Center Study- Agile Organization
12
Telco Trend up to 2030
13
14
5 Key Chareteristic for Telco Network if the Future
1. End-to-end process changes and simplification :

network-functions virtualization (NFV) and software-defined networking (SDN)\
2. Jointly defined use cases : Comercial&Network to priority implentetion of IoT for Cusotmer
3. Capability enhancements. Moving toward a NaaS model requires new capabilities within the network
team. Previously, network teams were more engineering and operations focused; they now need to
1
develop service-management and software-development capabilities
15
Transfromation from NaaS to Virtual Network function
16
5 Key Chareteristic for Telco Network if the Future
2 Option in Agile Organization

- Based on the nature of activities. Functions that have shorter lead times and are closer to the
customer, such as provisioning and configuration changes, move to an agile model, while infrastructure
changes that require longer lead times remain traditionally managed.
- Full agile. In this model, all functions are moved into agile tribes.
17
Transformation from Function Organization to Agile
/customer/Product centric organization
18
1
3 Option in Automated Process

Adoption of analytics and automation is increasing, and many telcos have started building use cases
and setting up centers of excellence.
- Look beyond the telecom nature
- End-to-end automation
- Architeture that Support s scale
19
Tranfromation netwotk to Digital Architecture to Unlock
new Productivity
20
1
Personalized With the advent of NaaS, there will be increasing demand to offer customized bandwidth for
different types of services. Network slicing enables operators to configure multiple logical networks to run
on top of a shared physical infrastructure. Deploying network slicing involves two important considerations
for operators:
- ‘Hyperpersonalized’ business models.
Network slicing allows for operators to provide personalization at various levels. At the highest level,
operators can distinguish between B2B and B2C services
- Trade-offs between multiple virtual layers and multiple physical layers.
As the list of possible next-generation services keeps growing, implementing multiple virtual-network
slices for each type of service may be very inefficient in terms of resources. Alternatively, deploying
separate physical subnetworks with their own physical and functional layers may be a more viable option,
but it requires more investment. The right balance between these two options needs to be studied based
on the overall company strategy and outlook.
21
Insight generating Given that all customer services have to pass through the network in one form or
another, the network collects a trove of valuable information on the customers. Here the need to be
tranfro for telco team :
-Going beyond the network.
While telcos are already making progress in leveraging advanced analytics on network data to drive
operational insights (such as predictive-maintenance models), network teams can potentially increase
impact from these data significantly by combining them with customer insights
- Cross-functional engagement.
Getting the most value from analytics use cases would require engaging cross-functionally with other
relevant teams to ensure there is a holistic view of value and there are robust approaches to execute
22
Market Trend – Ecommerce & Logistic Players already step ahead
for Tehcnology adaptation
23
Global Distribution for Transformation Approach
24
15 Key Transformation for Asia Telco Company (1/3) – Customer
/Product
25
15 Key Transformation for Asia Telco Company (2/3) - Technology
26
15 Key Transformation for Asia Telco Company (3/3) –
Foundation/Organization change
27
Boradband Data : Unsustainable in mobile as well as fixed
28
Boradband Data : New BBC iPlayer breaks UK ISP model
29
Today and Tommorrow Telco Revenue sources
30
31
32
33
Content
• Key Message for Business

• 4 Step for Practical Business Improvement
- Understanding of Business Objective
- SIPOC Analysis
- Resource Vs. Impact Vs. Effort Analysis
- Implementation & Sustain
34
VUCA ready in the following areas in telco :
35
Key Message of Business
Why We do Business ?
End goal of business are to generated “CASH“
How to Achieved ?
By optimize the Information, Material & Money flow
through the entire end to end supply chain process
Who Operated ?
By the right people (Attitude + Skill + Knowledge) as the foundation
36
Business Process Management Transformation become Customer Centric
Organization
Agile/
Customer Centric
Organization
37
4 Step for Business process Management Transformation
1. Understanding of Business Objective :
Deliver Product/Services “ to the right customer” at the right quality, the right cost, the right time
2. SIPOC Analysis :
End to end Supply chain analysis in term of managing the Information, Material & Money flow according to
“Agreed Standard” and “Industry benchmark”
1. Business Problem : Capacity, Quality, Cost, Delivery by Departement and Cros Function
(Organization/Data/System Silo)
2. Tools/Framework: adopt - adapt principle according the company needs and readiness
3. Balanced Scorecard: Internal vs. External, Leading Vs. Legging, Align Vertical Vs. Horizontal
3. Resource vs. Impact vs. Effort Analysis :

4. People Skill vs. Attitude Matrix
5. Value Add /NVA vs. Important Matrix
6. Data Maturity Level
7. Effort vs. Impact Matrix
8. Financial Impact analysis
4. Implementation and sustain the change:

Managing change by Portfolio, Program, or Project type
38
Understanding of Business Objective
the right customer
Deliver Product/Services “to”
“at”
the right quality, the right cost, and the right time
+ +
according to “Agreed Standard/target” and “Industry benchmark”
39
Strategy Development- Strategy Diomond
Example Strategy for National Logistic (BUMN) Company :
Indonesian Goverment Spending for logistic cost approximatly >100 Trilyun IDR/ Years
if we will take only for 10% market share : around10 TIDR/year revenue.
2
1
40
End to end Supply chain analysis in term of Optimize the Information, Material,& Money flow according to
SIPOC Analysis “Agreed Standard” and “Industry benchmark”
Description Supplier - Input Process Output - Customer

Capacity: Supplier , Funding/Financing Capacity: Facility (Machine/Fleet/Space) Avaibility , Capacity: Volume , Channel Distrbution ,
Facility Utilization Order vs. Market
Quality: Defect Rate , Obsoletes stock
Function Quality: Defect Rate , Scrap Ratio , Breakdown , Quality: Complaint , Brand Health ,
Cost: Cost/Unit , Raw Material stock Safety , Productivity , Bill of Mat.(BOM) Acc. Churn rate , Customer satisfaction
Account Payable Aging Cost: Direct Cost , Work in Process , Obsoletes , Cost /Prices: Margin , F/G , COGS ,
Overtime , Maitenance/Repair/Ovehaul Cost , Revenue , Account Receivable Aging
Business Delivery: On time delivery , Clearance's
Problem Delivery: Planning Acc. , Leadtime , Funneling (IT) Delivery: Fullfilment , Leadtime Fullfiment ,
Lead-time Time to Market
Organization/Data/System(IT/ERP) Silo
Cross
Function People/Skill
Working Capital , Overhead cost , Profitability , Cash , Asset Utilization
Make or Buy Analysis VSM QCC QC 7 Tools 5S ERCS TPM 4P/7P Analysis
Standardize work Customer Experiences
Kano Analysis Design Thinking
Tools/ Function Supplier Development Plan/Production Strategy: MTS, MTO, ETO Visual Management Automation
Approach Marketing Spend ROI Product Profitability
Sourcing from Low cost country Rough Cut Capacity Planning (RCCP) Shop floor Leadership Product Development Life Cycle Management
Cross IPO/Stock split, Streamline of Silo, Merger&Aqucition Analysis, Sales&Operation Planning, Problem Solving, Train of trainers (TOT)
Function Managing Project :PDCA, Lean, Six Sigma, Project Management, Scrum, 4xD
Internal/Operation Lost time Injured Facility Avaibility Time Defect Ratio Productivity Customer Sales Volume Revenue Customer Satisfaction
Planning Accuracy On Time Delivery Inventory Record Accuracy- IRA OEE New Customer Market share Net Promoted Score (NPS)
Balanced
Scorecard Unit cost/Product Cost Saving Audit Perfomances Page time convertion (IT) New Product/Service - NPI Customer Aqusition Cost
Finance Gross Margin EBIT EBITDA CASH ROCE Working Capital Return on Asset (ROA)
Learning&Growth Training& Development Performance Review Employee Engagement Employee Survey
Resource Analysis 1 – Attitude vs. Skill Matrix
skill
Analysis based on data and observation*:
High
3 4 1. Quadran 1: Low attitue & skill: 10~15%  realigment or replace
2. Quadran 2: Low attitude & high skill: 10-20%  coaching & conselling
1 2 3. Quadran 3: High attitude & low skill: 40-50%  training & development
skill
4. Quadran 4: High attitude & skill: <15%  retain & grow
Low High
And as the busness improvement/change agent we have to adjust our leadership

style in driving the change : directing, coaching, supporting and delegation mode to
our team.
Key note: Who Organization/structural Leaders vs. Community Leaders ?
* Note:
• Data: Assestment, Performance review, Personal Opinion - 360 degree eveluation will be perfect
• Observation: Engage directly with team to verify data ( canteen, smoking area, public area interaction vs.
office/factory/formal interaction)
42
Resource Analysis 2 – Value /Non Value add vs. Importance matrix
Analysis based on data and observation:

1 NVA & unnecessary : 20-30 % Quick win
2 NVA & necessary: 15- 25%  ERCS
3. VA & unnecessary: just chant happen
4. VA & necessary : <10%  Innovation –significnaly change
process/improve performances
Combining this 2 matrix to got the balance of your

priority agenda in improving business
43
Resource Analysis 3 – Data Analysis
Knowing your data maturity level will help to define the tools /framework that suitable/fit to organization
Little data Thick data Big data

• How & why • What, where, when, how
• It’s big data for one
• Description • Multi structured
• Focus on persoal/spesific
• Collected by poeple • Collected by machine
goals
• In-depth • Broad
• Individual grant access to it,
• Behaviors, action, emotions, • Behaviour//action of many people
rather that company
intentions, motivation of a few • Poeple are hot highly aware of data
• Collected as a part of study being collected
Example:
• Analysis include s developing codes, • Analysis using statistical methods
 Machine Performances data,
summaries & themes
check sheet data, etc.
Example:
Example :  Transactional data, Customer services
 usability test, contextual research, logs, Sensor data, social media posts,
interviews, diaries, etc. A/B test, etc.
“Discovery (Behavioral analytics vs. Observation) and

Improve (A/B tests vs/ Usability tests) the Pairings” the type of data are the key
44
Finance Impact Analysis 3 – 3 Major Improvement Area
1 Revenue uplift Improvement
Revenue
2 Profitability Improvement
EBIT
1. Gap to budget
Variable
cost 2. EBIT Vs Last year
3. Cost Avoidances
Return
Return on
on Total
Costs
Capital
Capital
Employed
Employed
Fixed cost
Capital 3 Cash Improvement

Capital Expenditures
Employed 1. Gap to Budget
Stocks/Inventory
2. Depreciation or Interest or
Trade Receivables Tax or Working Capital or
Transition Costs
Trade Payables
45
Financial Impact Analysis – Profit&Loss Impact
Reduction of 10 % of the Equivalent to obtain the

Current situation
purchases same improvement
Revenue 1000 1000 1250 (+ 25%)
Purchases 500 (50%) 450 (- 10%) 625 (50%)
Salaries 300 (30%) 300 375 (30%)
Fixed charges 100 (10%) 100 100 (10%)
Margin 100 (10%) 150 (+ 50%) 150 (+ 50 %)
To increase the margin by 50 % a company can :

Reduce Purchases by 10 % or Increase Revenue by 25 %
46
Financial Impact Analysis – Working Capital –Cash Impact
Example Best Practise :Proces/Inventory Improvement
1. Online system : Reduce time to purchase(Funnling) average 20 minute to 15 minute
Web funnneling & time acess
start End
Landing page Purchase
2. Logistics : Leadtime delivery reduction 3 Days to 2 Days Example Best Practise in AR :

Leadtime delivery 1. PT. PLN, Tbk
start End - Improve Payment >30days to CBD
Loading Storage/ Delivery Loading
/unloading/ Land/Sea/ /unloading/ Post paid to Pre Paid scheme
Before
Stuffing departed air Stuffing/Storage 2. Telecommunication Company
- Major account Prepaid, and in
dealer/distribution CA/deposit scheme
Inventory Inventory 3. Hotels/airlines for umroh
Shipped
Arrives - CA/deposit scheme for certain volume
Example Best Practise in AP:
by Umroh travel agent
Make or Buy Strategy: Inventory
4. Warteg/UKM/Warung
Option : Buy catering services: Days
Payables Receivables (AR) - COD scheme
Factory/Office outsources
Cash GAP 5. Warung Prasmanan
the meals services to vendor
- CBD scheme
Before inhouse to outsource 0 20 40 60 80 100 120 140
6. e-Wallet/Digital Money/Cashless
with Paymet term >30-60 Days
Cash Cash exclude credit card
Paid Received
- CA/Deposit/CBD scheme
47
Notes: PT: Payment Term, CA :Cash in Advance/deposit, CBD = Cash Before delivery, COD : Cash on Delivery, <Office> 131116_Indosat Managed S ... OG_v17
Project Management
Project Management Level Description Example
group of different program and/or project Revenue uplift 5% for Traditional Market
Porffolio Corporate
with same organization 2018
group of projects that are similar/related Increase Revenue 3% for traditonal

Program Division
to each other market in West Region 2018
Reduce Promo/product time to market
lead-time < 3 weeks
a temporary endeavor undertaken by a Channel/Distribution bonus performance
Project Function/Dept new scheme
company or organization
Increase facilities utilization by 10%
Reduce facilities breakdown by 5%
48
Project Execution and Sustain – Managing Activity
1 2 3
Business SIPOC Resource,
objective Analysis Impact,Effort
Analysis
Type Name/ID Benefit Duration Project Team Review Audiances/Review Deliverables

Gate Review :
BOD, Manager, PMO, Project handover
Project Leader –
Mandatory document sign off
Name/ID Program
Portfolio/ Financial and Daily, Weekly,
Program/ Portfolio Non Financial Start and End Manager/PMO, Monthly depend
/Program Targeted Date Project Leader, Project Review: Financial and Non
Project /Project Benefit Team Member on the activity Project Leader & Team Financial Benefit
Member - Mandatory, Validation
PMO & other
stakeholder not
mandatory) Project
Documentation
49
Project Execution and Sustain
Operation
Execution + Project
Standarization Handover
Regular Audit
Key Activities
• Implement new 1st ‘To-Be’ processes. • Obtain process sign-off and • Running operation as buisness as
• Review performance and Situational handover to Process Owner. usual according to new standard
Assessment. • Perform post handover • Performance audit
• Perform fine-tuning. monitoring.
• Execute process training where necessary.
• Prepare 2nd (final) ‘To-Be’ process docs.
• Regular Performance tracking

Key Outputs
• 2nd (Final) ‘To-Be’ process • Audit report

docs. • ‘To-Be’ process sign-off
• Award System
• Situational Assessment
50
Pillar of Success on The Execution System
Don't Let the things that you can’t do that prevent you to do the things that you can do
51

Business Improvement Guidance Strategy &amp; Implementation Stage

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Business Improvement Guidance Strategy &amp; Implementation Stage

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Program Report Delivery- RFI Business Process Management

1. Executive Summary - Program Overview

2. Trend, Market & Competitor Analysis – Extenal

3. Company Performance & Initiative – Internal Insight

4. SWOT Analysis .. Or another

Agile Waterfall Legacy

There is no “silver bullet” framework to drive the Transfomation/change

This Matrix below can be

6 important mitigation challenges having VUCA conditions are:

1. End-to-end process changes and simplification :

2 Option in Agile Organization

3 Option in Automated Process

• Key Message for Business

End goal of business are to generated “CASH“

By optimize the Information, Material & Money flow

through the entire end to end supply chain process

By the right people (Attitude + Skill + Knowledge) as the foundation

3. Resource vs. Impact vs. Effort Analysis :

4. Implementation and sustain the change:

Deliver Product/Services “to”

according to “Agreed Standard/target” and “Industry benchmark”

Description Supplier - Input Process Output - Customer

And as the busness improvement/change agent we have to adjust our leadership

Analysis based on data and observation:

Combining this 2 matrix to got the balance of your

Little data Thick data Big data

“Discovery (Behavioral analytics vs. Observation) and

1 Revenue uplift Improvement

Capital 3 Cash Improvement

Reduction of 10 % of the Equivalent to obtain the

Revenue 1000 1000 1250 (+ 25%)

Purchases 500 (50%) 450 (- 10%) 625 (50%)

Salaries 300 (30%) 300 375 (30%)

Fixed charges 100 (10%) 100 100 (10%)

Margin 100 (10%) 150 (+ 50%) 150 (+ 50 %)

To increase the margin by 50 % a company can :

2. Logistics : Leadtime delivery reduction 3 Days to 2 Days Example Best Practise in AR :

group of projects that are similar/related Increase Revenue 3% for traditonal

Type Name/ID Benefit Duration Project Team Review Audiances/Review Deliverables

• Regular Performance tracking

• 2nd (Final) ‘To-Be’ process • Audit report

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Business Improvement Guidance Strategy & Implementation Stage

Business Improvement Guidance Strategy & Implementation Stage