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Mastering digital transformation
OSS/BSSUSER GROUP 2017
Presenters:Thao Tu – Head of Digital Transformation PracticeJuan Carlos Prego Perez – Head of Application Modernization Practice
Commercial in Confidence | © Ericsson AB 2017 | October 2017
The power of digitalization
80%of processes reinvented
or eliminated by…
85%of consumer relationships
will be…
47%of revenues will be
influenced by…
…DIGITAL in 2020
Source: Gartner, Forrester
Commercial in Confidence | © Ericsson AB 2017 | October 2017
Commercial in Confidence | © Ericsson AB 2017 | October 2017
Digital Transformation Principles
TARGET A UNIQUE DIGITAL POSITION
DESIGN MAGICAL EXPERIENCES
ENGAGE WITH DIGITAL SERVICES ECOSYSTEM
OPERATE A DIGITAL ORGANIZATION
EVOLVE TECHNOLOGY INTO DIGITAL
CREATE SERVICES AT DIGITAL SPEED
DIGITAL ENGAGEMENT AUTOMATED OPERATIONS PROGRAMMABLE NETWORKS
Commercial in Confidence | © Ericsson AB 2017 | October 2017
Commercial in Confidence | © Ericsson AB 2017 | October 2017
New Digital requirementsWhat is needed to become Digital?
Omni-channel and Consumerization
Circles and Customer Networks
Flexibility, Agility and Partnership
Automation and Delivery Excellence
360-Degree Customer View
Real-time Responsive Approach
Commercial in Confidence | © Ericsson AB 2017 | October 2017
Commercial in Confidence | © Ericsson AB 2017 | October 2017
Where to start the digital journeyHow to plan a Digital Transformation?
Start with Business View But lead with Technology
Develop Technology Roadmap phased based on Strategy input and current business input
Implement a strong architecture governance process to stay on track
Determine wanted position (Digital Maturity Assessment)
Determine Transformation Readiness (articulate compelling reason to act)
Determine and predict business benefits agreed with all stakeholders
Develop a new Digital Operating Model
Commercial in Confidence | © Ericsson AB 2017 | October 2017
Commercial in Confidence | © Ericsson AB 2017 | October 2017
TRANSFORMATIONACCELERATORS
Our Transformation offeringsIT TRANSFORMATION AND OPERATIONS SERVICES
Application Development and ModernizationTransformation Maturity & Strategy Digital Transformation Cloud Transformation
IT and Business Operations
OSS & BSS 5G READY INFRASTRUCTURE
Partner Products
CEM and Analytics
Service and Resource
OrchestrationCharging &
Billing
NetworkManagement
and Automation
Product & Resource
Management
MaturityAssessment
EricssonValue
Architecture
Pre-integrationCenters
ApplicationModernization
Studio
Customer & Partner
Engagement
Network Applications
NFV and Cloud Infrastructure
Mobile and Fixed Access
Transport
Commercial in Confidence | © Ericsson AB 2017 | October 2017
Organization
Customer
Value chain & ecosystem
Operations
Technology
Innovation
Understand and review where customer stands today
Analyze Customer Vision/Strategy compared to Industry
Vision & Strategy
The path towards a digital tomorrowSample Engagement
Architecture Governance
Business Benefits
Transformation Readiness
Digital Operating Model
Tactical Initiatives Support the business of Today
Strategic Initiatives Evolve towards the Digital Tomorrow
Gap Analysis
Digital Maturity Assessment
Analyze Current Issue’s and pain-points
Digital Vision & Strategy, Industry Analysis
Financial Impact Strategic Roadmap
Commercial in Confidence | © Ericsson AB 2017 | October 2017
Commercial in Confidence | © Ericsson AB 2017 | October 2017
Digital Transformation Value Assessment
Dig
ital T
rans
form
atio
n Va
lue
Asse
ssm
ent
Adaptable interactive analysis tool translates digital solution capabilities into quantifiable financial metrics and KPIs. Key to prioritizing investment decisions, developing a digital roadmap while maximizing profitability.
Digital value assessment Financial Impact Analysis
Digital Operating Model
Transformation Readiness
Business BenefitsInfrastructure Shift
AS IS Financial Performance Model
Quantified Investment Justification
Strategic Transformation
Roadmap
To Be Financial Impact based on Transformation Scenarios
Digital Transformation Financial Impact Tool
Technology Driven use cases
Digital Solution Benefits
Customizable Metrics & Dimensioning
Interactive Financial Dashboard
5 – 7 Year Financial Horizon
Digital Initiative Prioritization
What if Scenario Analysis
Revenue; OPEX; CAPEX Impact
Application Portfolio Analysis
Application Simplification
Commercial in Confidence | © Ericsson AB 2017 | October 2017
Commercial in Confidence | © Ericsson AB 2017 | October 2017
So how do you transform while
keeping the lights on?
Commercial in Confidence | © Ericsson AB 2017 | October 2017
Commercial in Confidence | © Ericsson AB 2017 | October 2017
Survey of ~1000 CIO’s and IT Decision Makers Regarding Applications
today’s Market realities
Source: Cap Gemini report – Tangled Web of IT applications stunts digital transformation
Source: Kable Research & Analysis
48% 37% 73% 57% 76%
Rapid growth,24x7 and
anywhere access
New entrantsfully digitized
Big data forcustomer insights
Morethan
needed
Most aremission critical
20% are
redundant
20% should retire
Rationalization key to
success
60-80%IT Budget evolvingand maintaining legacy
400+Average # of FTE maintaining legacy
Commercial in Confidence | © Ericsson AB 2017 | October 2017
Commercial in Confidence | © Ericsson AB 2017 | October 2017
Take Over Legacy StackApplication Modernization
Application Development & Maintenance
A
B
Accelerating IT transformation
Taking you there!
Applications DB
Legacy Mainframe systems
App1 DatabaseApp3
App5
App2
App4
App6
Applications DB
Legacy Mainframe systems
App1 DatabaseApp3
App5
App2App4App6
Commercial in Confidence | © Ericsson AB 2017 | October 2017
Commercial in Confidence | © Ericsson AB 2017 | October 2017
Busi
ness
Val
ue
Time
Modernize
Retire
Upgrade
Retain/ Consolidate
Application Modernization
Analysis Technology Maturity
Business Value
Cost Effectiveness
Portfolio Risk
Commercial in Confidence | © Ericsson AB 2017 | October 2017
Commercial in Confidence | © Ericsson AB 2017 | October 2017
DEV OPSApplication Portfolio Analysis
Legacy Applications
IT Transformation
Cloudification
Digital Technology
Application Modernization
Enable digitalization journey through bimodal approach
ReadinessAssessment
Organization Transformation to embrace DevOps
ModernizationExecution
Progressive Adoption
ContinuousAssessment
Commercial in Confidence | © Ericsson AB 2017 | October 2017
Commercial in Confidence | © Ericsson AB 2017 | October 2017
Modernization – a continuous improvement cycle
EricssonApplication
ModernizationSolution
Agile CollaborativeDevelopment
DevOpsAdoption
TechnologyUplifts
No-Ops
Dev Ops
ContinuousMonitoring
Continuous CustomerFeedback
ApplicationDemographics
ContinuousBusinessPlanning
Commercial in Confidence | © Ericsson AB 2017 | October 2017
Commercial in Confidence | © Ericsson AB 2017 | October 2017
gaining edge, innovating and delivering value
Clean uncluttered architecture
Return on investment in less than 2 Years
Optimized team size
New capabilities to be digital ready
Reduction inannual ADM spend
Reducedmaintenance costs
New ways of working
Average drop in ticket volumes
~40%
~30%Commercial in Confidence | © Ericsson AB 2017 | October 2017
Commercial in Confidence | © Ericsson AB 2017 | October 2017
Want to learn more? Contact one of our experts
Juan Carlos Prego PerezHead of Application ModernizationEricsson Business Area Digital Services
click here
Thao TuHead of Digital Transformation Ericsson Business Area Digital Servicesclick here
Commercial in Confidence | © Ericsson AB 2017 | October 2017
Visit our website on ericsson.com