Value a CTO can bring to the Telco board and shareholders · • Moving from KPI based to KQI models EXTERNAL FOCUSSED TECHNOLOGIST • Creating new structures and competencies in

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Value a CTO can bring to the Telco board and

shareholders

World Communication Awards, London

December, 2015




The changing role of the CTO and technology

driven business strategy

"I am involved in

every business

decision. That's a

big change."

The CEO said "here's the

product I want, how are you

going to build it, when can

you build it by and how

much will it cost?"

This is what's

happening with

technology, so

how do we need to

change the

business.

"What I am seeing now is a

technology-driven business

strategy, versus a

business-driven technology

strategy,"

CTO




A paradigm shift to technology-driven Telecom

business strategies

Rapid evolution in technology- CTO's function has become

dynamic from static earlier

Technology as driver of business strategy- from an enabler to the

business spearhead

Convergence of Network and IT- technology's role has become all

pervasive

Accelerating Growth in Technology

What has changed

M2M and Internet of

Things

Migration to horizontal

business modelConversion to unified

communication

Network

virtualization

Security

compliance




Leading Telcos follow Yield or Growth strategies

Share change refers to the change in the number of shares outstanding, not to the change in share priceNote: Leading communication service providers by average annual TSR 2009-2013 in %, Multiple change as the remaining TSR component not included in analysis Source: BCG Value Creators Report, S&P Capital IQ, Thomson Reuters Data Stream, Bloomberg

-10

0

10

20

30

-10 0 10 20 30

Etihad Etisalat

Time Warner Cable

SBA Communications

Liberty Global

SoftBank

Telefónica

Bharti Airtel

Telecom Italia

OrangeKPN

Growth - TSR contribution in p.p. 2009-2013

Verizon

Telstra

Vodafone

Iliad SA

TIM

Axiata

BT Group

TelenorSingTel

Swisscom

Dividend - TSR contribution in p.p. 2009-2013

TeliaSonera

Dt. Telekom

AT&T

Bubble size

indicates market

capitalization as of

31 Dec 2013

"Growth"

"Yield"

Sales growth

Margin change

Growth

Dividend yield

Share change1

Net debt & leverage

Yield



TATA are trademarks of Tata Sons Limited in certain countries. 5

CTO

• Future focused

• Legacy migration

• Biz and Network

impact due to

adoption of new

technologies

CIO

• Operations focused

• Takes on more ops

responsibilities (SF &

SA)

CMO

• Technical & Feature

focused

• Works closely with

CIO org

New Roles

• IT Generalists

• SDN Engineers

• Cloud Orchestration

• The CTO and CIO will remain as two separate roles particularly in large operators — but might merge under a CTIO group.

• The CIO’s organisation increasingly takes on network operations while the CTO’s responsibilities become future focused.

• New Roles would be created

Roles & responsibilities have changed




Now

Role of a CTO - then and nowAn enabler of business functions

• Managing organisations and teams

• Design, build, operate and performance of the

Network

• Continuous improvement, technology

(Network/IT) and organisational transformation

• Partner selection and performance

• Focus on engineering and R&D department

• Focus on innovation, future technology

roadmap, disruptive product development and

speed to market

• Maximising value from vendor neutral partner

and competitor relationships

• Mitigating risk and opportunity

• Contributing to the business strategy and the

bottom line

• Driving Network KPI’s aligned to Customer

Experience SLA’s / Metrics

Old Engineering part Business Strategy part

+




The Telco CTO now sits in meetings with shareholders and sits on a management committee that decides the future direction of the company.

The CEO and the business rely on their CTOs for business innovation.

In April 2014 a survey of CEOs by Gartner

found that CEOs and Boards turned to

CTOs first for innovation advice -- above

chief marketing officers, business unit

leaders, chief operating officers, chief

digital officers and chief strategy officers.

The CTO- the source of the technology innovation which drives the business strategy




Value that CTO drives for a business

• To evolve and become future focused

• How best to build and launch new services, applications, and functions

• Moving from technology roll out to service innovation & monetisationVISIONARY

• Transformation plan and integration with existing platforms ensuring monetisation of new and existing assets with focus on standardisationBIG THINKER

• Business Process efficiency and re-alignment

• Organisational optimisation and re-design

• Driving network performance & operational efficiencyOPERATIONS MANAGER

• Drive Network KPI’s/SLAs aligned to customer experience

• Embrace and utilise innovation

• Shape the customer relationship beyond the transaction

• Moving from KPI based to KQI models

EXTERNAL FOCUSSED TECHNOLOGIST

• Creating new structures and competencies in the organization

• Integration & automation between legacy and NFV environmentINFRASTRUCTURE MANAGER




Strategic challenges

Challenges faced by CTOs

Wireless – explosion in data demand and need for differentiation

Wireline – re-inventing the network investment story

Convergence – right positioning and network implications

How to address revenue decline and keep invest for high-speed infrastructure under control?

How do we translate network investment into cash flow and advantage against cable?

How to use convergence profitably and create business advantage?

Customer experience –

differentiating through superior

service

How to improve customer experience with prevailing revenue pressure and increasing network costs?

1

2

3

4

Key questions facing the Telcos CTO’s challenges

• Shorter lifecycle of technology

• Unconventional data monetisation

• Faster technology deployment needs

• Opex reduction by focusing on non-

core non-smart infrastructure

• Drive revenues

• Convergence of Telecom (Wireline

and Wireless networs, IT and telecom

networks)

• Rising Customer expectation

FOCUS ON FUTURE TECHNOLOGIES AND TRANSFORM SERVICES

COST-EFFECTIVELY FOR BETTER CUSTOMER EXPERIENCE




Offering lower prices for services

Assisting in implementation

Minimal information sharing

Operating the existing network

We are the transformation partners to Telcos

from 'services provider' ... ... to 'transformation partner'

Assist in the transfer from legacy to new tech

network

Delivering cost transformation

Developing solutions along with Telcos and

OEMs as a partner

Risks and rewards transformation model

Managing the technical and operational KPIs Managing the customer experience and value




Operational Model• Technology & Tools Innovation

• Workforce Improvement

• Spares Management

• Repair Avoidance

Improved Automation• Improved utilisation

• Adopting new Service Mgmt

framework

Business Agility• Business SLA’s *

• Demand Management*

Process Transformation• Service Strategy functions

• Shift-Left by design

• Demand management

Business Alignment• Service Catalogue *

• Service Based Pricing *

Organisation Transformation• Design

• Performance Culture

Current Mode

Operation

[CMO]

Future Mode

Operation

[FMO]

eTOM Roadmap,

TNOM3 and A4

Framework

Transitioned

Operating ModelTarget Operating

Model

Business Value Integration

Operational Transformation

Establish and improve the capability to deliver the program

objectives

Improve Institutionalize Evolve

* Areas of joint development

Design and Deliver the change strategy through out the program

Establish innovation framework and drive innovation

Establish the benefit realization framework, track the progress on

the outcomes

Transformation Management Office

Stakeholder Management

Engagement Management

Organization Change Management

Capability Development

Co-innovation

Benefit Realization

Process Outcomes

Near Business Outcomes

Business Outcomes

Operations

FocusValue Extraction

Identify and manage the expectations of the stakeholders though

out the program

Plan and drive the overall journey of Field Operations transformation

The role of the Managed Service Partner is to

facilitate and manage Transformation

Business Focus




3000+Multi Domain / vendor agnostic Network

specialist across multiple technologies 6Global Delivery Centers including

on-site customer delivery centers

Managed Services for Network & Business Operations across Telco lifecycle areas, as well as Consultancy &

Business Enablement services, to global enterprises and telecommunications companies, via a Global Delivery Model

Business Process Management

Operational Performance

Improvement

Transformation

Network Audit and Consultancy

Security Audit and Consultancy

Business Consulting

Fulfillment

Assurance

Network Engineering and Planning

B2B Enablement

Service Monetization

Customer Experience Management

Business

EnablementNetwork and

Services

Business

ExcellenceAudit and

Consultancy

Simplify Complexity by Improving Process Efficiency

Accelerate

Time-to-Market with Proven Experience and Expertise

Improve End Customer

Experience by Enhancing

Service Availability

Reduce Costs

by Optimizing People, Processes and Technology

About TCTS

Thank you

Documents

Value a CTO can bring to the Telco board and shareholders · • Moving from KPI based to KQI models EXTERNAL FOCUSSED TECHNOLOGIST • Creating new structures and competencies in