Leveraging agile to build the telecom-vendor digital partnership of the future
RFPs work well with waterfall delivery methodology, but if you need your project to follow the business changes, you need to think of something different.
14 Jan 2020
Leveraging agile to build the telecom-vendor digital partnership of the future
Hasan Al Bitar - General Manager Digital Services Division, Omantel and Krzysztof Goworek, Chief Innovation Officer, TUATARA will present a case study at Digital Transformation Middle East in Dubai this month. Read some of Goworek’s insights on creating a digital partnership for success before the big event in the article below.
Telecoms organizations have had to make significant changes while entering the digital transformation era. They have done it well, focusing mostly on digitalization as an opportunity, instead of perceiving it as a threat. Many have rebuilt their whole business strategy and created innovative offers for customers, enabling them to strengthen their position. But changes never stop - now it's time to relook the model of cooperation with vendors to face constant changes.
The traditional model of telecom-vendor cooperation starts with a request for proposal (RFP). Composed as a defined list of requirements it is vulnerable to the unexpected. You can't create an RFP with a matrix of dozens of variables, prepared for any scenario. Among other reasons, it's simply not possible to come up with those variables since they emerge and change with rapidly changing shifting environment. Especially in the telecoms industry where most of the projects are significant and lengthy, forces that put pressure on the project from different angles make its shape fluid. What if you asked for a cube in the RFP, but you ended up with a cone after the project is delivered? It's excellent if in the meantime the trend changed and it's not ice cubes your customers are after but ice cones. Does your RFP process enable such elasticity? Or will the forces that shape your project result in a cube with angles filed off, because you pushed your vendor to squeeze timelines and compensate on quality?
RFPs work well with waterfall delivery methodology. Everything is determined top-down, vendors deliver milestones, follow a defined plan. That's a great approach if you are confident it’s a cube you wish to get after your project finishes. But if you need your project to follow the business changes, you need to think of something different.
An Agile process is a long-known answer for delivering projects with changing requirements, invented for software development companies.
The key ingredients of an agile approach are as follows:
However, while Agile is a very flexible mechanism of adjusting to change, by itself, it doesn't motivate the vendor to optimize costs and act in the best interest of the client. The company’s goal is to deliver solutions to meet changing business and customer needs, while the vendor’s goal is to complete a project as defined, on time and within budget. Those two goals are often contradictory.
We think that the best way to ensure working in the interest of both sides of the digital partnership is to make sure that telecom and vendor have the same goals. Saying that a vendor-telecom relationship needs to be a partnership is a truism. What is more specific is saying:
But how to make this happen, not just on paper, but actually reflected in revenue? We're talking Agile working as well as an innovative commercial model.
A project should not have a strict scope and list of requirements. Instead, a list of areas to work on and a high-level goal. Those working on the project should identify gaps, come up with ideas for improvements, new products, and there should be space to tweak priorities, with both partners jointly deciding on what is best for the end customer in their digital partnership. The project should have the freedom to not only observe, but to implement any industry, behavioral and business changes. This approach brings satisfaction, enthusiasm and passion for continually overachieving customer expectations and overcoming potential limits.
Telecoms organizations have had to make significant changes while entering the digital transformation era. They have done it well, focusing mostly on digitalization as an opportunity, instead of perceiving it as a threat. Many have rebuilt their whole business strategy and created innovative offers for customers, enabling them to strengthen their position. But changes never stop - now it's time to relook the model of cooperation with vendors to face constant changes.
The traditional model of telecom-vendor cooperation starts with a request for proposal (RFP). Composed as a defined list of requirements it is vulnerable to the unexpected. You can't create an RFP with a matrix of dozens of variables, prepared for any scenario. Among other reasons, it's simply not possible to come up with those variables since they emerge and change with rapidly changing shifting environment. Especially in the telecoms industry where most of the projects are significant and lengthy, forces that put pressure on the project from different angles make its shape fluid. What if you asked for a cube in the RFP, but you ended up with a cone after the project is delivered? It's excellent if in the meantime the trend changed and it's not ice cubes your customers are after but ice cones. Does your RFP process enable such elasticity? Or will the forces that shape your project result in a cube with angles filed off, because you pushed your vendor to squeeze timelines and compensate on quality?
RFPs work well with waterfall delivery methodology. Everything is determined top-down, vendors deliver milestones, follow a defined plan. That's a great approach if you are confident it’s a cube you wish to get after your project finishes. But if you need your project to follow the business changes, you need to think of something different.
Is Agile the answer?
An Agile process is a long-known answer for delivering projects with changing requirements, invented for software development companies.
The key ingredients of an agile approach are as follows:
- Focusing on customer satisfaction through early and continuous delivery of the product
- Readiness to change requirements at any stage of development
- Frequent delivery of working software
- Close cooperation between business teams and developers
- Face-to-face communication where possible
- Thinking of the simplest, most satisfying, solutions
- Focusing on being more productive and adjusting accordingly
- Continuously upgrading technical excellence and functional design
However, while Agile is a very flexible mechanism of adjusting to change, by itself, it doesn't motivate the vendor to optimize costs and act in the best interest of the client. The company’s goal is to deliver solutions to meet changing business and customer needs, while the vendor’s goal is to complete a project as defined, on time and within budget. Those two goals are often contradictory.
Shared objectives
We think that the best way to ensure working in the interest of both sides of the digital partnership is to make sure that telecom and vendor have the same goals. Saying that a vendor-telecom relationship needs to be a partnership is a truism. What is more specific is saying:
- The telecoms provider needs to put trust into the vendor's knowledge and experience and give them the empowerment to do what they do best.
- The vendor should have a customer-obsessed team and lots of courage to take risks to become a reliable partner.
A positive digital partnership
But how to make this happen, not just on paper, but actually reflected in revenue? We're talking Agile working as well as an innovative commercial model.
A project should not have a strict scope and list of requirements. Instead, a list of areas to work on and a high-level goal. Those working on the project should identify gaps, come up with ideas for improvements, new products, and there should be space to tweak priorities, with both partners jointly deciding on what is best for the end customer in their digital partnership. The project should have the freedom to not only observe, but to implement any industry, behavioral and business changes. This approach brings satisfaction, enthusiasm and passion for continually overachieving customer expectations and overcoming potential limits.
