Extract from a larger presentation delivered during 2015 TMForum at Nice, France, about customer experience new normal imperatives and Digital Transformation blue-print for Telecommunications Operators.

1. Taming Digital Transformation and Customer Experience New
Normal imperatives: A Strategic Blueprint For Telcos
Souhail Haddaji
Vice President Product Development at du (Dubai)
TM Forum, Nice France
June 2015

2. Acknowledgement
First of all, I would like to thank Mr. Osman Sultan, our CEO and all CXOs at du, for their leadership, digital vision and for inspiring du’s
men and women to be on digital front, after building in just few years, a great Telecom success story.
I would like also to thank the respected academics and professionals authors below, whose insightful papers were truly inspirational
and helped me grasp, a little bit more, the intricate reality behind digital disruption and its impacts on Telcos.
• Alexander Mogg and Klaus-Ulrich Feiler, from Roland Berger Germany
• Darrel K.Rigby, from Bain & Company Boston office
• Eric Hazan from McKinsey Paris office
• George Westerman, Didier Bonnet and Andrew McAfee for their book: Leading Digital (Harvard Business Review Press)
• Ines Guzman and Jean-Marie Pierron from Accenture
• Dr. Jeanne W. Ross (MIT Sloan/CISR)
• Kim Wagner from The Boston Consulting Group
• Marcus Blosch and Ed Thompson from Gartner (my former company, where I had the privilege to work with so many
bright colleagues)
• Professor Phillip Anderson, from INSEAD (for inspiring me to embark on this research journey)
• Dr. Roman Friedrich from strategy& (former Booz & Company) , Stockholm and Düsseldorf offices
• Michael Fitzgerlad (MIT), Nina Kruschwitz (MIT), Didier Bonnet and Patrick Ferraris from Capgemini Consulting(with
whom I had the privilege to work at Capgemini Consulting Paris office)
• All my present and former colleagues, with whom I had so many fruitful discussions to mature this work.
Last but not least, I would like to thank TMForum New York office team (Rebecca and Jessica) , who kindly invited me to speak at dd14
(digital disruption) in San Jose, California in December 2014 and again at TMForum Live! in Nice, France in June 2015.
The following presentation is an extract from a larger deck I presented during TMFroum Digital session.
Below, is the link to associated paper-interview published by MIT Sloan and TM Forum post event.
https://inform.tmforum.org/nfv-it-transformation/2015/06/souhaill-haddaji-du-on-digital-transformation-and-the-new-customer-
experience-normal/
Souhail Haddaji
15th June 2015,
Dubai, UAE

3. Executive summary
Note 1: “new normal” concept was introduced in 2009 by Mohamed El-Erian , Chief Economic Adviser at Allianz and former CEO and co-Chief Investment Officer at PIMCO.
1. Telcos business model is under tremendous pressure: value chain positioning threatened by OTTs; power shifted
from firms to customers; core services matured leading to slow/negative growth; IT infrastructure is not
adequate for digital age. Thus, Digital transformation is not an option anymore; it has become a matter of
survival for telcos.
2. Digital Transformation is hard and risky, but clear strategy, vibrant communication; clear accountabilities and
employees engagement can triple the odds of success.
3. The first step of digital journey starts with Telco’s ultimate compass…its customers, to build intimacy. The
Second building block is Customer Experience “new normal”1 for digital age: Omni-channel enabled, 3rd party
co-created, real-time personalized and Digically mashups.
4. To build capabilities to support the above, telcos CIOs need to transform IT through a bimodal regime, and
expose internal capabilities to 3rd parties, for customer value co-creation. On the soft side, CIO needs to build
trust by handing over more power to business CXOs, with a special attention to the effectiveness of relationship
within triumvirate CMO-CIO-CDO.
5. Vertical organizational models were very effective during acquisition intensive past decade. But are not adequate
for digital age. They need to evolve into delayered, collaboration oriented horizontal structures.
6. Telcos, like any other organizationally large and complex systems, suffer from entropy which pushes things in the
direction of less order rather than more. Thus, a rigorous yet just enough governance, is key to constantly steer,
this life-saving journey, toward the Digital operator end game.
7. IoT, M2M, Cloud, Smart-cities, location based services offer significant growth potential for Telcos who will
succeed in their digital transformation journey toward a customer value fabric open ecosystem.

4. Content
1. Digital Disruption: Telcos at crossroads
2. Digital Transformation: A Strategic Blueprint for Telcos
3. Building Customer Intimacy: The first building block
4. Customer Experience New Normal: Omni channel, real-time, Self-service, Digical Mashups
5. From Information Technology to Business technology: CIO’s role in transition
6. Journey to Digital Operator: Organizational Implications
7. Conclusions and Outlook

5. Telcos traditional business model is under pressure
Telcos Business
Model under pressure:
1. Value chain
position at risk
2. Slow Growth
3. Margin Squeeze
OTTs Value
chain
threats
Core
services
Maturity
Ageof
Digital
Customer
Inadequacy
ofIT
Capabilities
Telcos traditional business model is
under pressure from various angles:
1. In the age of customer, power has
shifted from firms to their clients.
2. Competition has increased and
Core services and products have
matured (Voice, SMS…) , leading at
best to slow and at worst to
negative growth.
3. With Facebook-whatsapp,
Microsoft-Skype, Google-MVNOs,
Telcos traditional value chain
positioning is under attack by
innovative and resourceful OTTs
pure digital players.
4. Telcos were built as highly effective
acquisition machines, powered by
specialized but siloed IT systems.
These vertically siloed IT
capabilities are not adequate for
digital age, where there is a need
for more horizontal Omni-channel
enabled and 3rd party open IT
architecture.
For Telcos, transitioning to Digital Operator, is not optional anymore, it has become a
matter of survival
© Souhail Haddaji, Taming Digital Transformation and Customer Experience New Normal imperatives: A Strategic Blueprint For Telcos, TMForum, Nice France, June 2015

6. Telecommunications is among 3 most impacted industries by
digital disruption
Projected Digical transformation by industry
through 2025
Source: Bain 2014

7. Digital transformation is key for telcos new positioning
Source: Analysys Mason
Traditional Telco Business model under pressure Telcos Strategic Responses to Industry new Dynamics
The objective of this presentation is to propose for Telcos, a Digital Transformation strategic
blue print to help structure and align the efforts required across the organization

8. Clearing CFOs reluctances: show me digital transformation ROI !
Digital leaders get better financial results than their
industry peers
Compared to their peers, digital leaders enjoy
stronger revenue growth
Several rigorous and independent research confirm that, compared to their peers, Digital
leaders display a healthier financial metrics
Source: MIT Sloan and Capgemini Consulting (2013) Source: Harvard Business Review (2015)

9. Content
1. Digital Disruption: Telcos at crossroads
2. Digital Transformation: A Strategic Blueprint for Telcos
3. Building Customer Intimacy: The first building block
4. Customer Experience New Normal: Omni channel, real-time, Self-service, Digical Mashups
5. From Information Technology to Business technology: CIO’s role in transition
6. Journey to Digital Operator: Organizational Implications
7. Conclusions and Outlook

10. Structure, Processes, Metrics, Talent and Culture
Networks
Telcos digital transformation: a high level target blue print
Bi-Modal IT
Horizontally layered and de-siloed organization,
powered by Digital savvy and engaged talent
Digital Governance
DigitalGovernance
DigitalGovernance
Customers
OCS,
PCRF
SDN, NFV
Access Networks:
xG, Fiber, Wi-Fi
Integration APIs
Core BSS/OSS
Applications aware
Network services
3rd
Parties
Cloud
Enablers
Customer Intimacy
(from data to customer
contextual Knowledge)
Digital and Physical (Digical)
mashups of Customer
Experience
Customer Centric
Value Propositions
Omni channel enabled customer facing channels
Big Data Analytics.,
Real Time
Decisions &
Recommendations
Digital Experience
Delivery Platform
Customers segments, Value Propositions, Customer Experience and Channels
IT as a Commodity
3rd
Parties
Cloud
Enablers
External
Partners
External
Partners
Telcosand3rdexternal
partnersco-creationofvalue
propositionstocustomers
Telcosand3rdexternal
partnersco-creationofvalue
propositionstocustomers
© Souhail Haddaji, Taming Digital Transformation and Customer Experience New Normal imperatives: A Strategic Blueprint For Telcos, TMForum, Nice France, June 2015
Legacy
Digital
Building
Blocks
Exposed APIsExposed APIs

11. Content
1. Digital Disruption: Telcos at crossroads
2. Digital Transformation: A Strategic Blueprint for Telcos
3. Building Customer Intimacy: The first building block
4. Customer Experience New Normal: Omni channel, real-time, Self-service, Digical Mashups
5. From Information Technology to Business technology: CIO’s role in transition
6. Journey to Digital Operator: Organizational Implications
7. Conclusions and Outlook

12. Telcos’ journey to digital operator must start from their ultimate
compass: their customers !
Building Customer Intimacy
- Empowered by technology, today customers
know more than their service providers about
their products and services, pricing, and
reputation.
- Telcos need to develop a healthy obsession
with their customers: their needs; their
aspirations; what interactions frustrate theme
most, the ones that delight them.
- Customers should be at the heart of every
decision organization makes and every dollar
invested.
- Key building bloc : “One common and shared
Customer Reality”
- How ? by collecting and normalizing the
various flow of customer data, generated across
various touch point, and building a common,
shared and actionable customer knowledge.
“One common and shared Customer
Reality “
Source: McKinsey, 2014

13. Content
1. Digital Disruption: Telcos at crossroads
2. Digital Transformation: A Strategic Blueprint for Telcos
3. Building Customer Intimacy: The first building block
4. Customer Experience New Normal: Omni channel, real-time, Self-service, Digical Mashups
5. From Information Technology to Business technology: CIO’s role in transition
6. Journey to Digital Operator: Organizational Implications
7. Conclusions and Outlook

14. Online moved from cost effective sales channel, into main sales
channel for Telcos
Customer experience “new normal”: Omni-channel enabled, 3rd
party co-created, real-time personalized and Digically mashups
Whohasaccesstocustomersqueries?
Source: McKinsey
Digital disruption widely expanded boundaries of
traditional Customer Care
Source: Roland Berger
The entry of Free, a simple, online-only mobile telecom
service in France, forced competitors to follow suit,
driving online sales of mobile plans
In today’s age of customer, power already shifted from firms to
connected customers powered by Technology and social networks
Omni-Channel : Customers want to start , cross, and
finish their journey from the channel of heir choice

15. Expose internal capabilities to 3rd parties to create a customer value
fabric open eco-system
Bi-Modal IT
Customers
Integration APIs
Core BSS/OSS
3rd
Parties
Cloud
Enablers
Customer Intimacy
(from data to customer
contextual Knowledge)
Digital and Physical (Digical)
mashups of Customer
Experience
Customer Centric
Value Propositions
Omni channels
Big Data Analytics.,
Real Time
Decisioning &
Recommendations
Digital Experience
Delivery Platform
Customers segments, Value Propositions, Customer Experience and Channels
IT as a Commodity
3rd
Parties
Cloud
Enablers
External
Partners
External
Partners
Telcosand3rdexternal
partnersco-creationofvalue
propositionstocustomers
Telcosand3rdexternal
partnersco-creationofvalue
propositionstocustomers
© Souhail Haddaji, Taming Digital Transformation and Customer Experience New Normal imperatives: A Strategic Blueprint For Telcos, TMForum, Nice France, June 2015
Exposed APIsExposed APIs

16. Content
1. Digital Disruption: Telcos at crossroads
2. Digital Transformation: A Strategic Blueprint for Telcos
3. Building Customer Intimacy: The first building block
4. Customer Experience New Normal: Omni channel, real-time, Self-service, Digical Mashups
5. From Information Technology to Business Technology: CIO’s role in transition
6. Journey to Digital Operator: Organizational Implications
7. Conclusions and Outlook

17. CIOs need to build trust, by handing over more power to business to
move IT from a “bottleneck” to a trusted business partner
Digital leaders display a high level of confidence of teams in
organization’s technology knowledge and skills
In the transition to Digital, CIOs need to build trust and
handover power to business across multiple interactions
Source: Harvard Business Review (2015) Source: J.Ross MIT (2015)

18. CMO-CIO power couple relationship improved overtime, the challenge
is to extend this effectiveness to the new triumvirate: CMO-CIO-CDO
Source: Accenture (2014)

19. Network architecture also needs to evolve toward more agility with
the introduction of NFV and SDN, to support digitalization
Investment in SDN and NFV is expected to grow by an
impressive 51% ~66% CAGR until 2023
Investment in SDN and NFV deployment is under the way at aggressive
rate

20. Content
1. Digital Disruption: Telcos at crossroads
2. Digital Transformation: A Strategic Blueprint for Telcos
3. Building Customer Intimacy: The first building block
4. Customer Experience New Normal: Omni channel, real-time, Self-service, Digical Mashups
5. From Information Technology to Business technology: CIO’s role in transition
6. Journey to Digital Operator: Organizational Implications
7. Conclusions and Outlook

21. A key challenge for Telcos transitioning to digital operator is to move
from product centric structures to a customer centric organization
Source: McKinsey 2014

22. Organizational silos, legacy processes and cultural resistance to
change are among key barriers to successful digital transformation
Source: Harvard Business Review (2015)
Digital leaders and laggards perspective on barriers to successful Digital
business development

23. Cultural alignment on digital transformation vision and objective is key
Lack of understanding, skills gaps and resistance to change can
severely hinder digital transformation efforts
Source: MIT Sloan and Capgemini Consulting (2013)

24. Digital transformation is risky but clear vision, vibrant communication, explicit
accountabilities and engaged employees can triple the odds of success
Source: McKinsey (2015)

25. Content
1. Digital Disruption: Telcos at crossroads
2. Digital Transformation: An End Game Framework for Telcos
3. Building Customer Intimacy: The first building block
4. Customer Experience New Normal: Omni channel, real-time, Self-service, Digical Mashups
5. From Information Technology to Business technology: CIO’s role in transition
6. Journey to Digital Operator: Organizational Implications
7. Conclusions and Outlook

26. Conclusions and call for action
1. Telcos business model is under tremendous pressure: value chain positioning threatened by OTTs; power shifted
from firms to customers; core services matured leading to slow/negative growth; IT infrastructure is not
adequate for digital age. Thus, Digital transformation is not an option anymore; it has become a matter of
survival for telcos.
2. Digital Transformation is hard and risky, but clear strategy, vibrant communication; clear accountabilities and
employees engagement can triple the odds of success.
3. The first step of digital journey starts with Telco’s ultimate compass…its customers, to build intimacy. The
Second building block is Customer Experience “new normal” for digital age: Omni-channel enabled, 3rd party co-
created, real-time personalized and Digically mashups.
4. To build capabilities to support the above, telcos CIOs need to transform IT through a bimodal regime, and
expose internal capabilities to 3rd parties, for customer value co-creation. On the soft side, CIO needs to build
trust by handing over more power to business CXOs, with a special attention to the effectiveness of relationship
within triumvirate CMO-CIO-CDO.
5. Vertical organizational models were very effective during acquisition intensive past decade. But are not adequate
for digital age. They need to evolve into delayered, collaboration oriented horizontal structures.
6. Telcos, like any other organizationally large and complex systems, suffer from entropy which pushes things in the
direction of less order rather than more. Thus, a rigorous yet just enough governance, is key to constantly steer,
this life-saving journey, toward the Digital operator end game.
7. IoT, M2M, Cloud, Smart-cities, location based services offer significant growth potential for Telcos who will
succeed in their digital transformation journey toward a customer value fabric open ecosystem.
© Souhail Haddaji, Taming Digital Transformation and Customer Experience New Normal imperatives: A Strategic Blueprint For Telcos, TMForum, Nice France, June 2015

27. Thank you for reading!
Your comments are welcome @
Souhail.haddaji@du.ae
Souhail Haddaji
Vice President Product Development at du (Dubai)
TM Forum, Nice France
June 2015