Collaborating to Win in the

Digital Platform Era

Nik Willetts, CEO

@nikwilletts
#tmfaction
2017 TM Forum | Page 1
Accelerating Industry Transformation Through Collaboration

Membership
TM Forum is the global industry 28 years guiding the industry
Development 90,000+ member
association driving digital through complex transformation professionals
business transformation of the Neutral, non-profit led by the 850+ member companies
communications industry through worlds leading Service Providers
collaboration and innovation. Global presence
TM Forum members generate US$2 trillion in revenue & serve 5 billion customers across 180 countries

2017 TM Forum | Page 2

3 Strategic Pillars focused on Driving Transformation

NAVIGATING AND ACCELERATING

1 > DIGITAL BUSINESS TRANSFORMATION <

RETHINKING THE OPERATING MODEL

2 > REIMAGINING I.T. <

DIGITAL ECOSYSTEM CURATION &

3 > MANAGEMENT <

2017 TM Forum | Page 3

 Our Approach: Focus on Practical Outcomes & Tools

Execute Innovate Explore

Use proven assets, tools and best practices Collaborate with industry peers to Tackle new challenges through
to solve known industry problems solve todays big challenges research & peer discussions
Digital Maturity Model & Metrics

Agile IT & Frameworx

Business Transformation

Operations A blueprint for best Collaborative Research & Analysis

Accelerating Digital

practice business
operations to accelerate
R&D Projects In-depth analysis of the key
Revenue Member-driven challenges and opportunities
and de-risk
on our industrys radar
Management transformation projects development
collaborations to shape
Open APIs TM Forum Inform
the future of our industry
Data Analytics Standardized The latest news, opinions and
& AI interoperability for thought leadership
IT systems and partner
integration Catalyst Projects
Toolkits & Models Rapid fire, member-driven Conferences &
Customer
Centricity proof-of-concept projects Webinars
Best Practice Guides |
Apps, Technical Reports Gathering the community to
| Maturity Models work through all the key issues
Trust TM Forum
(Security, Privacy & Training &
Business Assurance) Community TM Forum {open}:hack
Certification
Share and grow ideas and Hands-on exploration of new
Training | Conformance
connect with peers solutions in real-time
Internet of Certification | Coaching |
Everything (IoE) Maturity Assessments

2017 TM Forum | Page 4

Collaboration is the name
of the game in Digital.

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From Value Chain to Value Fabric: Uberization

RAW MATLS PRODUCTION ASSEMBLY DISTRIBUTION

Source Content Edit/Curate Create Bundles Multiple channels

Elements of value exchange

PRODUCERS CONSUMERS

PLATFORM

2016 Parker & Van Alstyne, with Choudary licensed under Creative Commons Attribution-ShareAlike 4.0 International (CC BY-SA 4.0).
2017 TM Forum | 6
The Relentless Digitalization of the B2C Economy Continues

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 CSPs Are Failing to Capitalize on Value of Digitalization
Despite enabling the digital economy, telecom operators proportion of growing industry profits is forecast to
reduce from 58% in 2010 to 45% by 2018, due to failure to effectively launch, scale and monetize new
services. Inability to innovate, lack of operational agility, and culture/talent are primary causes.

Source & Accenture/WEF analysis based on data from S&P Capital IQ

2017 TM Forum | 8
What needs to change,
and HOW?

CONFIDENTIAL | 2017 TM Forum | Page 9

 CSPs Must Embrace Transformation in Two Directions
Communications Service Providers (CSPs) are embracing transformation in two directions: digitalization of
existing business, and business model transformation to be an enabler of digital for multiple verticals.

Digital Service Enabler 2020 CSP

Platform-based business model Software-defined Telco
CSP capabilities open to ecosystem DSP and DSE capabilities
partners Agile, Innovative, Transformed
Digital services enablement

Mixed ecosystem curator & participant Analytics driven to create customer-

roles defined experiences and as-a-
service for ecosystem partners

Traditional CSP Digital Service Provider

Traditional sources of revenue
(connectivity, voice/text, data) and
business model
CSP-controlled customer interaction
Highly automated, real-time, on-
demand dynamic digital infrastructure
Digital channels with customer-
controlled interaction/self-service
Rich customer experience

Digital services provisioning

Diagram Source/Inspiration: Nick Gurney & Robert van den Dam, Outthinking Disruption in Communications, IBM Institute for Business Value Report.
2017 TM Forum | Page 10
But the Path to Digital Is Not Linear, Or Simple
Seizing these opportunities requires transformation to dramatically improve business agility and customer
centricity to survive in the red ocean battleground, while also embracing new growth opportunities.

Digital Service Enabler 2020 CSP

Platform-based business model Software-defined Telco
CSP capabilities open to ecosystem DSP and DSE capabilities
partners Blue Ocean Agile, Innovative, Transformed
Digital services enablement

Analytics driven to create customer-

Opportunity defined experiences and as-a-
Mixed ecosystem curator & participant
roles
service for ecosystem partners

Traditional CSP Digital Service Provider

Red Ocean
Traditional sources of revenue Highly automated, real-time, on-
(connectivity, voice/text, data) and
Battlegrounds
demand dynamic digital infrastructure
business model Digital channels with customer-
CSP-controlled customer interaction controlled interaction/self-service
Rich customer experience

Digital services provisioning

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In B2B, Open Platforms Represent An Opportunity for CSPs
Digitalization of more complex B2B ecosystems are likely to follow a similar path to adoption
of cloud computing cautious, with a focus on flexibility and avoidance of lock-in.
Elements of value exchange

PRODUCERS CONSUMERS

CSP Capabilities
Multi-tenant capable
Brand & trust
Localization work
force, knowledge
E2E Security OPEN PLATFORM
E2E Management Enabled by Open APIs

2016 Parker & Van Alstyne, with Choudary licensed under Creative Commons Attribution-ShareAlike 4.0 International (CC BY-SA 4.0).
2017 TM Forum | 12
Siloed Transformation Efforts Deliver Disappointing Results
72% of transformation projects arent successful ,with a leading cause being departmental siloing. Technology
transformations often overlook the importance of taking people and the business with them on the journey.
Digital Service Enabler
Platform-based business model
CSP capabilities open to ecosystem
partners
Digital services enablement
Mixed ecosystem curator & participant
roles
Customer
Traditional CSP
Traditional sources of revenue
(connectivity, voice/text, data) and
business model
CSP-controlled customer interaction
Digital services provisioning
2020 CSP
Software-defined Telco
DSP
Culture, and DSE capabilities Strategy
People,
Agile, Innovative, Transformed
Organization
Analytics driven to create customer-
defined experiences and as-a-
service for ecosystem partners
Operations
Digital Service Provider
Highly automated, real-time, on-
demand dynamic digital infrastructure
Technology
Digital channels with customer-
controlled interaction/self-service
Rich customer experience
2017 TM Forum | Page 13
Digital Business Transformation Demands a Joined-up Approach
Combining the different elements of successful transformation into a measured journey
Digital Service Enabler
Platform-based business model
CSP capabilities open to ecosystem
partners
Digital services enablement
Mixed ecosystem curator & participant
roles
Customer
Traditional CSP
Traditional sources of revenue
(connectivity, voice/text, data) and
business model
CSP-controlled customer interaction
Digital services provisioning
2020 CSP
Software-defined Telco
DSP
Culture, and DSE capabilities Strategy
People,
Agile, Innovative, Transformed
Organization
Analytics driven to create customer-
defined experiences and as-a-
service for ecosystem partners
Operations
Digital Service Provider
Highly automated, real-time, on-
demand dynamic digital infrastructure
Technology
Digital channels with customer-
controlled interaction/self-service
Rich customer experience
2017 TM Forum | Page 14
TM Forum Digital Maturity Model Helps Navigate the Journey

Strategy

Operations
AGILITY Customer

BEATS
STRATEGY

Technology Culture, People,

Organization

2017 TM Forum | 15
Incremental Improvements in Agility Wont Cut It

WhatsApp with 55 employees giffgaff crowdsources

Amazon can provision a
adds roughly customer service and
service every 11 seconds
1 million users daily has high NPS

10,000X 1,000X 100X

CSP with 38,000 employees CSP has thousands
CSP takes 3-6 months
adds less than 5,000 of customer service reps and
to stand up a service
customers daily typically low NPS

Incremental improvements in agility wont cut it.

2017 TM Forum | 16
What would Amazon do?
From cutting the 5% to upgrading the 95%

2017 TM Forum | 17
Drivers for a new Open Digital Enablement System

Traditional Telco Business New DSP & DSE Business

CSP domain CSP domain Ecosystem domain

Humans will be incapable of
making decisions well enough
Operations and fast enough, so machines
Automated, Intelligent Operations
(processes & people) will take this role

BSS Platform-based business

models offer an opportunity
for new revenue streams,
Open Digital Enablement System increasing the importance of
ecosystem integration and
extending the ODES across
OSS organizational boundaries

Network virtualization
Network (physical) Network (virtual / hybrid) prompts significant
changes to network
management & operations

1990s IT Mindset 2017 IT Mindset

Reduce the 5% Transform the 95%
2017 TM Forum | Page 18
 Security Data Governance
Open Digital Enablement System (ODES)

Customer & Partner Management

Without Without Without

security, there Product & Offer
data, there is Management
governance,
is no business no intelligence there is
no agility

End to End Customer Facing Service Management

Domain Domain ONAP / OSM

Draft Architecture

Specific Specific
Resource Resource
Domain Specific Resource
Facing Service Facing Service Facing Service Management
Management Management

Technology Technology Technology Technology

Specific Specific Specific Specific
Legacy PNF Resource Resource Resource Resource
and EMS Management Management Management Management

Infrastructure
2017 TM Forum | Page 19
ODES Could Enable Dynamic E2E Digital Ecosystem Management

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Machine Learning & Artificial Intelligence Will Be Essential
The AI layer operates with common data from the
ODES in a closed loop decision process with
applications to each ODES platform layer (customer
experience, product & service development,
network management & optimization, IoE, revenue
assurance, fraud management)

2017 TM Forum | Page 21

TM Forums 3 Strategic Pillars

NAVIGATING AND ACCELERATING

1 > DIGITAL BUSINESS TRANSFORMATION <

RETHINKING THE OPERATING MODEL

2 > REIMAGINING I.T. <

DIGITAL ECOSYSTEM CURATION &

3 > MANAGEMENT <

2017 TM Forum | Page 22

Lets Collaborate!

Nik Willetts
nwilletts@tmforum.org
@nikwilletts
CONFIDENTIAL | 2017 TM Forum | Page 23