HKT’sDigital Transformation Journey

15 May 2017

Peter Lam

Managing Director

Engineering, HKT

2

TelecommunicationBusiness

Partnership

New VASIOT

FMI

Mobile

To face up challenges by OTT / Digital Services providers at all fronts , Telcos need to embrace changes and transforms themselves from CSPs into

Providers of Integrated Digital Services

OTT

New Content

Cloud

Solution-basedService

AppsInstant Provision

Self Service

Current Business Challenges

Improve Customer Experience Maintain Market Leader Position Enable Digital Service Future Growth

3

Network Transformation

• Infrastructure virtualization to accelerate service creation and delivery

Infrastructure Cloudification with New Technologies

Strategic Transformation

• Re-envision business models

• Position as a communication platform for voice, data, video, text

• Not tied to a technology or architecture, but about connecting people, ideas, machines that need to interact with each others (like Google, Facebook .... which are all platforms)

Communication Platform as a Servicefor Humans, Machines and etc …

Operational Transformation

• Streamlines and automatesprocesses , e.g. subscriber self-provisioning

• Provides subscriber with real-timeservice management through online portal without human operators

Business Processes Automations, Enabling Customer Self-serve Channels

A Complex project involving network infrastructure, front-end and back-end supporting system, process & talent development

Digital Transformation ScopeA deep transformation is therefore required, ranging from business process, service offering, customer

facing channels, customer engagement model, all the way down to systems / infrastructure.

4

A Transformation is necessary, but …

• Where are we now?

• Where do we want to be?

• How do we get there?

Digital Transformation withOpen Digital Maturity Model & Design Thinking

GOAL

Structured Framework :To measures & benchmarks against peers or themselves while advancing Digital Transformation

Customer Centric Methodology : To realize Digital Transformation & build up the ROADS experience optimally

DesignThinking

OpenDigital

MaturityModel

5

HKT Experience: Product Development Model

Broadband Product Team

…

Each Product Development teams have their own target, strategy & action plan

How to collaborate to bring in the best benefit to the customer / company?

Data Product Team

CloudProduct Team

TVProduct Team

6

HKT Experience: Product Development Model

Broadband Product Team

Data Product Team

CloudProduct Team

TVProduct Team

We need to transform!

We need to interconnect with Microsoft Azure, Amazon, etc. to build up competitive edge of our Date Network service!

This will harm the competitive edge we currently have!

7

HKT Experience: Product Development Model

Broadband Product Team

Data Product Team

CloudProduct Team

TVProduct Team

Why don’t investing on & making use of our own Cloud resource?!

What is the best Product Evolution Roadmap?

AWS is more agile & cost effective in meeting our dynamic /special usage needs !

Why there are such gaps?

Open Digital Maturity Model help to review current situation

8

Open Digital Maturity Model Assessment in HKT

• An assessment conducted in HKT

• Representatives from :– Product / Marketing teams / Customer Services– Engineering / IT

9

Assessment Categories of Open Digital Maturity Model

10

Introducing Design Thinking for Digital Transformation

The

Missing

Link

After-sale

Service

Buying

PayLoyalty

Aware Using

Customer Experience

ROADS

Experience

Design/Develop/

Procure

Billing/

Revenue

Customer

Care

Provisioning

Customer

Retainment

Operation

Assurance

Telecom Operation

Customer

Experience Driven

Digital Operation

• To fill up gaps identified in Open Digital Maturity Model Assessment• To deliver Customer centric service with ROADS experience

Design Thinking &

Architectural

Thinking

11

Applying Design Thinking in HKT

• HKT started a series of Design Thinking Workshop with IDEO

Project Earth – HKT Digital Transformation

13

Challenges to Start Embarking the Project

How to define the

scope of the project so

as to best achieve the

goal?

How to measure the

progress, improvements & KPI of the project?

How to engage

support from different business units within

the company?

Design Thinking

-Human Centric Methodology

Open Digital Maturity Model- A rigorous benchmarking tool to assess

digital transformation progress

Top Management -Buy-in & Drive

14

Area Before (Time consumed) After (Expecting Time)

ROADS No Yes

Order Capture

(e.g. one communications)

>10 Systems & Portals, Multiple Orders by

fulfillment team (~ 3 hours)

Single System, Single Order by triggered by end

Customers / service Consultant / CS (On-Line)

Product Catalogue Multiple catalogues in different systems Single catalogue in one front-end

Product & Workflow setup (existing

templates)

Manual flow between multiple technical teams

(IT, Product, Marketing, CAP, etc.)

(~ 4 weeks)

Consultant to setup the product upon Marketing pre-

defined rules and allow customer real-time subscription (<

2 hours )

Product & Workflow setup (new

service / templates)

Manual flow between multiple technical teams

(IT, Engg, ASD, Product, Marketing, CAP, etc.)

(~ 4 weeks)

Add on building blocks by Engineering/IT/ASD to be used

by Product / Marketing team to build service (in hours)

Split BillNot Support by System, all done by manual

work (Excel)

Supported by Enabling Network and Systems,

configurable by Customers / service Consultant

Customer Self-service LimitedCustomer portal supporting ordering & DIY configurations

in real-time

Customer profile Line-based single viewSingle holistic view including fixed & mobile services,

broadband, data, CPE, Cloud, VAS, etc.

Network Setup

(e.g. Enterprise IP)

Engg setup including capacity review + review

of all existing rules to avoid conflict (~ 2 – 4

weeks)

DIY configuration by end Customer / service Consultant (~

real-time)

Data ModelingSilo based, proprietary

Difficult for big data analystics

Aligned with best practice and open standards

Readily available for big data analytics

New Service Development (~ 3 – 6 months) (~2 – 4 weeks)

Our Expectations

Deliver Real-time, Online, DIY service experience according to Open Standards

New service creation within weeks or days

15

HKT Digital Transformation Roadmap

Mid-Term:

▪ Revamp OSS with BES & IES

Long-Term:

▪ Virtualize infrastructure

▪ Enhance Orchestration for Service Creation

(existing)

Today

One-Network

(existing)

Mid-Term

One-Network

(existing)Network Cloud and

Service Orchestration

Long-Term

16

One Communications

CommercialMobile

2016 Planning & Design

▪ Overall Architecture & Roadmap

▪ Design Thinking

2018-19Network Cloudification

▪ Network Cloudification

▪ Apply SDN / NFV

▪ Prepare for 5G

2017Streamline Operation

▪ BES focus on corporate market

▪ Q4 pilot launch

HKT Digital Transformation Roadmap

17

OSS Revamp : Way to Achieve

Key Requirements:

▪ One Single System for all products and services

▪ Easy to use and quick time-to-market Product Catalogue

▪ Online quoting with approval workflow

▪ Customer portal for real-time self-provisioning

▪ Holistic view of customer for operation efficiency

▪ Billing capabilities (split billing, bill organization)

Green Field Platform, new processes for both new & existing services

18

Self-Service

Sales

Order Capture

Resource

Allocation

Service

Fulfillment

Biz

Analysis

Billing

Customer Care

: HKT Systems : Huawei Systems

Voice Broadband TV Data CPECloud

BES

Billing

OSS

Biz Analysis

Campaign Mgmt Promotion Customer Segment Loyalty MgmtMarketing

Lead & Opportunity Mgmt Quote Contract Mgmt Shopping CartSales

Product MgmtBase Capability Customer Mgmt Stock MgmtOrder Mgmt

Service Desk Knowledge Base Case Mgmt Complaint & Problem Handling

Partner Mgmt

Commission Mgmt

Mediation

Provision

NORAResource Mgmt

& Configuration

Network

Configuration Activation EngineOnsite

Installation Workforce Mgmt

Service Order Mgmt ITSM

Rating & Charging Billing SettlementFinancial Mgmt

& PaymentRevenue Mgmt

Reports Customer Analytics

EUNIS TSMS

Mobile

WebSelf-Service

ChannelMobile Apps Social

Recommendation Engine

Pool SharingSplit Personal &

Organization Bills

Op

en

AP

I

Human

ChannelDirect Sales Shop Call Center PartnerAccount Manager

OSS Revamp : Functional Architecture

19

BOSS(Dragon, BOM,

CXS)

Customer

A

Line 1 Line 3 Dummy

Line4

Customer

BCustomer

C

Line 2

Service

W

Service

XService

YService

Z

Service

V

Service

U

Advantage : Detach line assignment from order capture process + customer based

Generic Order System + Holistic Customer View

Ord

er C

ap

ture

Flo

w

Cu

rren

t

BESCustomer

D

Service

W

Service

XService

YService

Z

Service

V

Service

U

Line 1

Cap

ture

Flo

w

Line 2

Location A Location B

Ne

w

Selling service

BUT distort in system and input as selling

line

Revamp OSS: Redesign for Generic Order Capture

20

Telco Cloud

Infrastructure Enabling System (IES)

Virtualized Network Function (VNF)

vEPC vIMSvEPC

(for IoT)Other VNF

SDN + Datacomm Network

Cloud Platform (H/W & S/W)

Cloud Platform(H/W & S/W)

IT Cloud

Business Enabling System (BES)

MDS-P

(Provisioning

Mediation)

IT / Datacomm Infrastructure

MDS-C

(CDR

Mediation)

OCS

(Real-time

Rating)

Cloud Platform(H/W & S/W)

Cloud Platform(H/W & S/W)

Network Cloudification: Blueprint

21

W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 W14 W15 W16 W17 W18 W19 W20 W21 W22 W23 W24 W25 W26 W27 W28 W29 W30 W31 W32 W33 W34 W35 W36 W37 W38 W39 W40 W41 W42 W43 W44 W45 W46 W47 W48 W49 W50 W51 W52

JuneFebruaryJanuary March April May DecemberJuly August September October November

vIMS

CSCF

ATS

……

OCS

VNF

…...

…..

……

vEP

C

USN

UGW

……

vIMS

CSCF

ATS

……

VNF

…...

…..

……

vEPC

USN

UGW

……

IES IES

Existing ONE-CORE Network

BES

New

MDS-P

New

MDS-C

• Equipment Delivery / NFVi I&C (KSG2)

• High Level Design (HLD) / LLD

CTC NFVi

(@KSG2)

CTC NFVi

(@FTN1)

KSG2 Ready for VNF s/w I&C FTN1 Ready for VNF s/w I&C New Network Ready

Commercial Mobile

(Ph.1A Rel.1) RFS

One Comm & Enterprise Cloud(Ph.1A Rel.2) RFS

OPEN ROADS Event

HKT-Huawei Project Earth Agreement

BOM (MIP)

ONE MDS-P

ONE MDS-

C

• VNF I&C / Integration / Testing

• 2nd Site (FTN1) I&C / Integration / Testing

• Integration with BES to Support Ph.1A

• E2E Test

Project Earth 2017 Master Plan

Online Chat with experts for any enquiry and status checking

15 Minutes

~1 – 2 Days ~1 day ~1 day

Explore websites, brochures,

events marketing

Call Commercial

Hotline

Work with sales

persons

Discuss what is needed

Customer Issue Order with Sales

HKT internal fulfillment

Service Delivery

Existing Customer Journey

Customer Journey Envision

Future Customer Journey

Explore HKT Commercial service

websites

Select different products from single

portal

Explore options according to selection

Customer Issue OrderLast Mile Service

Delivery

23

Digital Transformation Sharing Workshop

• Telkom Indonesia shares the same vision that Digital Transformation is a Teleco key focus

• A two day 3-parties (HKT, Telkom Indonesia & Open ROADS Community) workshop is conducted in

Feb with very fruitful sharing and discussions

24

Way Forward

Digital Transformation Project Scope Extension• Cover other digital services of corporate market

• Expand to digital services of consumer market

Open ROADS Community Hong Kong Meeting• HKT as a Production Platform show case

Project Earth Quick Win Completion in Q4• Deliver 3 digital services of corporate market

New Revenue Stream & Profit Growth• Enable HKT to become an Omni-Channel Player for digital services

• Enable application of IoT, Big Data, Virtual Reality, Augmented Reality, AI

• To be a Eco-System Player in future