© 2018 TM Forum | 1

Catherine Haslam, Senior analyst, TM Forum

Digital Transformation World 2018

Leveraging TM Forum’s Digital Maturity Model to Navigate the Maze of Digital Transformation

© 2018 TM Forum | 2

• The business is digital– Over 80% of CSPs identify themselves as more

than connectivity providers

– ~85% of CSPs are somewhere on a digital transformation journey

• Transformation success is not guaranteed– 70% of all digital transformation projects fail

(McKinsey). CSPs need to buck the trend

• Measuring progress is just good business practice– Where you are

– Where you want to be

– How many steps to get from one to the other

• Comparison - benchmarks compare on a like for like basis– Internally

– Externally

Why would we want a digital maturity model?

9%

26%

41%

20%

1%

3%DTT2

We are aware of the need to transform but have not started

We are in the planning process

We are just starting implementation

We are well along the road and reaping significant benefits

Digital transformation is not necessary for us to succeed

Other (Examples: We are transforming to cut costs; we have started transformationbut haven't realized any benefits yet)

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• Digital transformation and therefore digital maturity:

– Is too vague – no one really knows what digital transformation means. Different definitions and interpretations

– Covers many different areas which will transform in different ways and at different rates

– Can’t be assessed by common metric. The same metrics won’t apply across all areas and progress measurement is too subjective

– Is not transparent. No single person has a complete view so cannot give accurate scores

– There is little reward for lots of effort “we’re better just getting on with it.”

Why wouldn’t we want a digital maturity model?

It’s complicated…but not impossible.

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Challenge 1

Digital transformation needs defining in a logical way that covers all the areas involved

“

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TM Forum’s Digital Maturity Model – all encompassing

Any measurement of digital maturity has to encompass every area of the business

Culture, PeopleOrganization

5 Dimensions

Customer Strategy Technology Operations Culture, People & Organization

Transformation needs to happen in concert, not departmental silos

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Challenge 2

Digital transformation measurement needs to be specific to be valuable

“

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Specifics count more

We know primary drivers… …and barriers

11%

11%

20%

22%

23%

27%

27%

28%

37%

40%

42%

12%

14%

20%

15%

16%

25%

24%

16%

41%

29%

32%

0% 10% 20% 30% 40% 50%

Lack of an industry roadmap

Legal/regulatory requirements

No sense of urgency

Weak governance structures

Organizational risk aversion

Availability of budget/resources

Complexity (product portfolio,…

Availability of skills

Lack of top management support

Cultural and organizational issues

Lack of clear, aligned vision and goals

DTT 1 DTT 2

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TM Forum’s Digital Maturity Model - specific

28 Sub-Dimensions

Customer Engagement

Customer Experience

Customer Trust and Perception

Customer Insights & Behaviour

Portfolio, Ideation and Innovation

Stakeholder Management

Strategic Management

Brand Management

Ecosystem Management

Market & Customer

Finance & Investment

Network

Security

Technology Architecture

Applications

Connected Things

Delivery Governance

Data & Analytics

Smart and Adaptive Process Management

Standards and Governance Automation

Agile Change Management

Automated Resource Management

Real-time insights and analytics

Integrated Service Management

Culture

Leadership & Governance

Workforce Enablement

Organisational design Talent Management

Culture, PeopleOrganization

5 Dimensions

Customer Strategy Technology Operations Culture, People & Organization

▪ Any measurement of digital maturity has to be specific to be meaningful

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Challenge 3

Metrics need to

– apply across all areas

– Be objective to make meaningful comparisons possible

“

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TM Forum’s Digital Maturity Model - objective

28 Sub-Dimensions

Customer Engagement

Customer Experience

Customer Trust and Perception

Customer Insights & Behaviour

Portfolio, Ideation and Innovation

Stakeholder Management

Strategic Management

Brand Management

Ecosystem Management

Market & Customer

Finance & Investment

Network

Security

Technology Architecture

Applications

Connected Things

Delivery Governance

Data & Analytics

Smart and Adaptive Process Management

Standards and Governance Automation

Agile Change Management

Automated Resource Management

Real-time insights and analytics

Integrated Service Management

Culture

Leadership & Governance

Workforce Enablement

Organisational design Talent Management

179 Criteria Questions

179 specific digital criteria to test your organizational maturity – with 5 levels of scoring unique to each criterion

5 Dimensions

Customer Strategy Technology Operations Culture, People & Organization

▪ Any measurement of digital maturity has to be objective to deliver usable results

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Metrics are specific and objective

Standard surveys have the same subjective descriptions

The TM Forum DMM has unique, objective descriptions for each 1-5 level of each 179 criteria statements

1.1.3

The organization

makes it easy for

customers to

personalize their

experience themse

lves across

multiple digital

channels and

devices

1.1.3.1 Personalizations

on web portals are

limited to stand-

alone profiles.

Customizations

are lost post

software upgrade

1.1.3.2 Profiles are

common across

portals which rely

on initial data

entry and can be

linked to other

profiles (for

example social

media)

1.1.3.3 Initial data entry is

captured on first

digital channel for

new customers

and propagated to

other pre-defined

channels post

registration

1.1.3.4 Initial data entry is

captured on first

digital channel for

new customers

and propagated to

all other customer

pre-selected

channels

1.1.3.5 Personalization

changes

propagated in a

federated manner

to all existing

multiplay channels

and available by

default for future

channels

H ow strongly do you agree that your organization makes it easy for customers to personalize their experience?

Strongly disagree

Moderately disagree

Slightly disagree

Neutral Slightly agree

Moderately agree

Strongly agree

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Challenge 3

One size doesn’t fit all – my digital transformation objectives are different from others

“

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One size doesn’t fit all

CSPs will define different transformation journeys

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Prioritise Focus Areas within Dimensions ….

0.0

0.5

1.0

1.5

2.0

2.5

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anag

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Culture Customer Operations Strategy Technology

Priority Sub-Dimensions by Dimension

Total

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… or by Sub-Dimension

0.0

0.5

1.0

1.5

2.0

2.5

Total

Priority investment areas?

Leverage Industry leadership?

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16… to find out where your organization needs to focus to achieve digital excellence …

View your organization’s digital heatmap

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Challenge 4

We want to know where we are compared to others

“

© 2018 TM Forum | 18

18

Pilot activityCompare OpCos – Capability, Ambition, Alignment

Compare and contrast OpcOs current capability scores

Compare and contrast OpCo ambition

Share best practice, align capabilities, synergise cross-Op Co collaboration and intent, envision common

future state driven by customer empathy

Question relative view of importance

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19

0%

10%

20%

30%

40%

50%

60%

70%

OpCo 2 OpCo 8 OpCo 1 OpCo 3 OpCo 4 OpCo 5 OpCo 6 OpCo 7

Culture

Customer

Operations

Strategy

Technology

Pilot activityTrack commitment, reveal proof points for compelling change

Prove across the organization that something should be done e.g. about Culture and Customer – understand how to drive maturity of these areas higher

Incomplete survey response

© 2018 TM Forum | 20

TM Forum Digital Maturity Model –Endorsements

DMM Certified Partner

© 2018 TM Forum | 21

Agreed

Heatmap

You are not alone - DMM Guided Methodology

Prepare for the

Transformation

Launch

initiative

Structure

Survey

Appoint

Xform Team

Run

Survey

Analyze

the results

Baselining

Workshop

Execute

Transformation

ProgramRebaseline

Maturity

Level met?

Workshop

Event

Decide

investment

priorities

Business

Value Impact

Priorities

Cost

Reduction

Revenue

Enhancement

Customer

Satisfaction

Measure

KPI

Impacts

Evidence

Maturity

Delivery

Maintain change

communications

GC Index View

Decide

survey depth

Engage

Change

Agents

Bank

Benefits

Key DMM

Methodology

Step

Supporting

Activity

Maintain survey

communications

Communicate

intent

Produce

workshop

input

materials

Publish to

benchmark

Foster

compelling

need for

change

‘Tester’

DTT/DMM

surveys

Survey & Results Phase

Internal or CP driven execution phase

© 2018 TM Forum | 22

An end-end digital transformation assessment tool to help guide organizations on your digital journeys

TM Forum’s Digital Maturity Model

28 Sub-Dimensions

Customer Engagement

Customer Experience

Customer Trust and Perception

Customer Insights & Behaviour

Portfolio, Ideation and Innovation

Stakeholder Management

Strategic Management

Brand Management

Ecosystem Management

Market & Customer

Finance & Investment

Network

Security

Technology Architecture

Applications

Connected Things

Delivery Governance

Data & Analytics

Smart and Adaptive Process Management

Standards and Governance Automation

Agile Change Management

Automated Resource Management

Real-time insights and analytics

Integrated Service Management

Culture

Leadership & Governance

Workforce Enablement

Organisational design Talent Management

179 Criteria Questions

179 specific digital criteria to test your organizational maturity – with 5 levels of scoring unique to each criterion

Culture, PeopleOrganization

5 Dimensions

Customer Strategy Technology Operations Culture

© 2018 TM Forum | 23

Find out more about the Digital Maturity Model on the TM Forum stand