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

Take
Sell Me Responsibilit
Products Sell Me A y For
That I Will Solution To A Operating
Use To Solve Problem The Solution
A Problem To 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 Changes
The Nature Of Changes
Customer To The
The Business Organis The Information
Relationship ation You Have On
With The Cost The Customer
Customer Model

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 operational framework
effective
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 Operations Fulfilment Assurance Billing and
Commit Lifecycle Lifecycle Support and Revenue
Product 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
Processes
Enabling 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
Services and Services Services Service

Vision and
Strategy

M
Business
a
Planning, Human n Information
Financial Facilities
Merger, Resource Technology
Acquisition Managementa Management
Management Management
g
eLegal,
Regulatory, Knowledge,
Governance m
Environment,
External
Improvement
and Relationship
Compliance e and
Health
Management
and Change
Safety Management
n
Management
t
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

Industrialisati Productisation
on
Defined Set of
Common Products/Solutions/
Implementation and Services and
Operation Packaging/Delivery
Approaches 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
Sell
ation
v
Inno Market
Implement
e
Verify
Valu
Clarify
Develop
Discern
tiv ity
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
Finance Business Model How Do You Make Money?
Networking and
Alliances How Do You Work With Other Organisations For Mutual Benefit?

Processes Core Processes How Do You Create and Add Value To Your Products And Services?
Enabling Processes How Are Core Processes Supported And Enabled?
Product
Products Performance How Do You Design Your Core Products And Services?
and Product System How Do You Connect Or Provide A Common Platform For Your
Services Products And Services?
Service How Do You Provide Value To Your Customers Beyond Your Core
Products And Services?

Provision Channel How Do You Get Core Products And Services to Market?
and Brand
Delivery How Do You Communicate Your Core Products And Services?
Customer
Experience How Do Customers Feel When They Interact With Your Organisation
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
December 31, 2011 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
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 Offer Product
Market Product and Marketing
Strategy and Offer Portfolio Offer Capability Development Sales Marketing
Policy Planning Capability Delivery and Development Communications
Delivery 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 Development
Strategy and Capability and
Planning Delivery 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 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
December 31, 2011
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
organisation’s 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
Strategy, Infrastructure product/solution/service demand
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

Supply Chain
Level 2
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

Product and Offer

Level 3
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

Market Strategy Product and Offer Product and Offer Marketing Product and Offer Product Marketing
and Policy Portfolio Planning Capability Delivery Capability Delivery Development and Sales Development Communications
Retirement and Promotion

Gather and Analyse Gather and Analyse Define Product Define Marketing Monitor Sales and Define Product
Capability Gather and Analyse Channel Best Marketing
Market Product Capability
New Product Ideas Promotion Strategy
Information Information Requirements Requirements Practice

Capture Product Assess Develop Product

Establish Market Establish Product Gain Marketing Develop Sales and
Capability Performance of and Campaign
Strategy Portfolio Strategy Capability Approval Channel Proposals
Shortfalls 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 Business to Marketing Commercialisation Promotional
Capability
Products 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

Capability Delivery Manage Product and Campaign
Development Effectiveness
Methodology

Launch New
Level 4 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 Operations Manage Service Development

Develop Service Partnership Manage Service Capability

Requirements Delivery Manage Service Deployment

Gain Enterprise Commitment to Manage Handover to Service

Service Strategies# Operations Manage Service Exit

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

Strategies Design Resource Capabilities Specifications

Enable Resource Support and

Produce Resource Business Plans Operations Manage Resource Development

Develop Resource Partnership Manage Resource Capability

Requirements Delivery Manage Resource Deployment

Gain Enterprise Commitment to Manage Handover to Resource

Resource Plans Operations Manage Resource Exit

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 Contract

Strategy and Goals Suppliers/Partners Variation

Define Supply Chain Support Manage Supplier/Partner

Strategies Manage the Tender Process Termination

Produce Supply Chain

Business Plans Gain Tender Decision 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
Research and analyse demographic, customer, technology and marketing information to
Gather and Analyse 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
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
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
Retirement
4
Supply Chain
Product and Offer Product and Offer Service Capability Service Resource Resource Supply Chain
Development and Development and Capability Development and Development and
Capability Delivery Capability
Retirement Retirement Delivery Retirement Change
Delivery Delivery
Management

Resource 8 7
15
13 Capability 9
Delivery
Resource
11
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
Supply Chain
Capability Development and Service Capability Development and Capability Development and Capability
Development and
Delivery Retirement Delivery Change
Retirement Delivery Retirement 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
December 31, 2011
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 
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@ala

nmcsweeney.com

December 31, 2011 45