Customer Centricity

The one reason you should radically redesign your core operating model

At TM Forum Live! KPN’s Bouke Hoving will present a case study on  ‘Escaping the Labyrinth: KPN’s simplification program for tracking your customer’s journey’. Here’s his take on the one reason companies are failing to truly transform.

Most corporations are in the midst of their business transformation. But a few are still ages behind because of several reasons: They don’t know where to start, they don’t have a clear vision, the internal organization is not ready yet, or there’s a lack of faith that transformation is key to survive in this era of rapid changing business environments.

Last year KPN won the TM Business Transformation of the Year Award. But that doesn’t mean we’re done. On the contrary, we’ve now hit our second transformation phase. We know that every single day we get blown away by new challenges, and that even we are being caught up by the newest technologies.

That’s why I’m addressing the urgency to stop for a moment. Stop, and be aware of the situation that your company is in right now. Maybe your company, like ours at KPN, is on a good path forward and the results of the transformation are producing nice double-digit NPS (Net Promoter Score) results. But, that doesn’t mean you’re in a safe place.

“Telcos should redesign the core of their operating model, which is built on connecting, disconnecting and reconnecting telephone numbers.”

Here at KPN we know that we need to get rid of the difference between fixed and mobile silos. All with the customer in mind, of course. Because why should customers wait two weeks for their home connections when they can buy a mobile phone with instant connection within a few minutes? To fix this at the front-end level (customer interaction) we need to take a closer look at what’s wrong on the back-end. And that is where many companies still fail at this moment.

Yours too.

Beyond repair

Why? The answer to that is a no-brainer: Your core operating model is beyond repair. We all know it. But we try to ignore it. At KPN we also ignored it for a long time. But we couldn’t wait anymore.

I can almost hear you thinking: Really? Yes, really. This is it. It’s the one reason I promised to give you. It’s a simple one, but it’s not easy to process. The sooner you realize that your core operating model doesn’t meet this era’s needs anymore, the better.

The way we, at KPN, believe in continuing our transformation is by making the right strategic choices and partnerships. For our second phase we have therefore selected ZTEsoft to help us with redesigning our core operating model, because they are a light-year ahead of us with their solutions. ZTE’s vision is the perfect fit with our internal goals, but above all with our most important customer need: Instant satisfaction.

Yes, the customer’s wish is our demand. Always.

TM Forum Live! takes place May 15-18 in Nice, France.  Find out more at www.tmforumlive.org



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About The Author

Bouke is responsible for KPN's transformation programme 'Simplification' - aimed at a radical simplification of products, processes and IT & networks - and for all Innovation programmes.

2 Comments

  1. I can relate to and vouch for the lines Bouke has authored in his case study . unless the core operating model doesn’t change every thing else will fall apart . In addition, one more important aspect to mention which poses big challenge after embarking on journey to transform the core operating models is the amount of cultural change it demands . the change and transformation of core operations also means paradigm shift in how the organization needs to synchronize for this change to get the best results and this demands lots of meticulous execution and unshakable belief in the in the initiative all along.

  2. if the rate of change on the outside exceeds the rate of change on the inside, the end is near–Jack Welch

    and what Bouke mentioned in the case study is ‘The transformation and change of the core operating model’ is the central part of the change needed inside the organization.

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