GearUp session—Are you ready for BizOps?
Now, first of all, what do I mean by "BizOps"? Well, in DevOps, we talk about how to become more agile through a software development process that emphasizes communication and collaboration where building, testing, and releasing software happen rapidly, frequently, and more reliably.
Business at your fingertips
With BizOps, we achieve agility by communication and collaboration between upper management, Marketing, IT, Finance, and Engineering. The aim here is to establish new ways of working and achieve an organization that reacts on real-time business insights. The goal of “business at your fingertips” is what I want to achieve.
Look at this picture; it is a cockpit model of the business. Here is an example of a case with five indicators to drive your business: spend, SLI (Service Level Index)—which is an Ericsson defined measurement that can be transposed to NPS (Net Promotor Score), volume, revenue loss, and special focus.
This is how I would like the idle screen of my computer to look. Every second I know exactly how my business is going and what actions I need to take. You can define the time period. In this example, the indicators show the percentage of change from the day before. It is a rolling 24-hour measurement. You could also do this per hour, every 6 hours, and so on. It depends very much on what you want to compare, what has happened in the market, and what activities you have launched and the corresponding impact.
5 indicators to drive your business
The five indicators in the picture show how your business is performing, at every instant in time. Since an SLI graph is included, you have a pretty good idea about how your business is going to look in the next hour, the next day, and the next week. To me, implementing something like this would take telecom from sitting in the back seat today looking in the rear mirror to moving up to the front seat, steering and controlling the business. And, all that happens in near real time. Having said that, it is of course important that you use this not as a reporting tool, but as a tool to drive your revenues and efficiency.
The impact of every change you do in offerings, campaigns, activation of network, or terminal functions is at your fingertips instantly—giving you the possibility to tune, measure, tune, measure...and by doing that, excel in your business. In today's environment, the trick to being successful is not to find a fantastic idea that gives you double-digit growth; rather, it is to get your organization to work with small incremental gains (in revenue and efficiency) every day, every hour. And BizOps is a way to do just that.
Focus on the vital few requirements
The best thing, I think, is that you can start today, having a subset of the information. All that is required is a targeted systems integration project. When I say "targeted" I mean, don't overdo it. Most IT projects become too ambitious with too many specific requirements. Focus on the vital few, what you want in order to drive revenue and efficiency today and tomorrow.
If we take one example and look on the spend graph (that is most commonly known as ARPU in telecom), we find the percentage of change in customer spending on your service compared to how much they spent yesterday. Naturally you can get this per region, per customer segment, per service, or by any combination of those. Again, it will not tell you why; it will tell you what has happened. So view it as a big alert (positive or negative). For the "why" portion, you need to have an expert analytics system or the like. In this context, I really would like to push for the positive alert here.
Dynamic Targeted Offerings
Every time I talk with a service provider about this, the negative alerts come up. Positive alerts, however, give you as a company the possibility to become very agile and customer oriented making use of Dynamic Targeted Offerings. Make incremental changes, targeted at a certain segment, and try the offering for that segment. Measure, tune, and then roll the change out in the whole country. Then, again, measure and tune.
In a similar way to using the Spend indicator, you can drill down into your business situation with respect to:
- Data volume
- SLI (my personal favorite) in real time
- Revenue loss
- Special focus
All of the above are, of course, not isolated indicators and, thus, correlation will be key in decision making. For example, if you launch a new data compression algorithm and you see that the volume of traffic goes down, you can then correlate that with SLI to see if you compressed too much. Again, do that per customer segment. At a certain level of SLI degradation, you will also see a corresponding revenue loss. All this at your fingertips.
To me, it is about knowing and being able to act on your business situation before the outcome hits you. Today, each one of you have the data. What is lacking is to get it presented in an actionable way and then we come to the toughest part and that is to act on the data!