Communication service providers (CSPs) — especially standalone operators — tend to face serious roadblocks in the initial stage of IT transformations. Discussions about IT architecture and vendor options often lead to analysis paralysis, which hinders progress to the point where operators are unable to keep pace with industry evolution. This Viewpoint provides a blueprint for mastering large-scale IT transformations.
Many business support system (BSS) transformations fail at the initial stage. This is usually due to IT and business units including numerous requirements based on legacy systems and detailed architectural decisions, making it difficult to produce a manageable requirements list. CSPs can avoid becoming overwhelmed in the initial stage by concentrating on essential requirements using this six-step method:
Following these six steps can help CSPs reach decisions about digital transformations significantly faster, with fewer iterations.
A well-defined strategic vision is pivotal to effective business transformation. Key decisions, especially those aimed at reducing business complexity, are fundamental to value creation. Transformations may seem challenging to CSPs, but they do not have to be, especially if they follow an expedited bidding process. For example, rather than expecting potential vendors to address hundreds or even thousands of individual features for inclusion, CSPs should ask them to provide a vision for a system that will bring their technology capabilities in line with market best practices. In other words, let outside-in innovation drive the process and transformation. This will help deliver a substantial business capability uplift, rather than relying on an inward-looking approach that results in replicating existing functionality.
Choosing the right vendor for a transformation project is critical, and the first step is having a good selection of potential partners to pick from. This requires a thorough assessment of the integrator landscape to develop a good understanding of the differences in quality, capabilities, and pricing between vendors. CSPs should aim for a list of six to 10 vendors that appear to meet their minimum criteria (see Figure 1).
After compiling a list of potential integrators, it is critical to learn as much about each as quickly as possible. Q&A sessions can be an efficient way to do this. Project owners gain an early indication of the vendor’s commitment to the project, and vendors gain insights into the project owner’s ability to communicate and set realistic deadlines. After the Q&A, the request for proposal (RFP) should be shared with all viable candidates.
Several factors are important to keep in mind at this stage. First, selecting a vendor is not about identifying a company that can deliver the project, it’s about finding a partner that can enable long-term changes. Second, the CSP is not the only entity at risk. Vendors are also investing significant resources in the bidding process (and, indeed, in the project itself).
For these reasons, it’s critical to carefully formulate the team examining the RFPs and evaluating vendor performances. The team should include members with technical expertise, those with business expertise, and it should include as many seniority levels as possible.
Many companies are opting to test-drive vendor systems to help them determine which systems fit their requirements and identify potential issues early in the process. This often involves a one-to-several-week(s) test of each potential vendor solution on a plain-vanilla test bed, sometimes called “sandboxing.”
It’s also important to evaluate each vendor’s ability to deliver the desired migration approach and accommodate necessary change requests.
Once the two best-suited vendors have been selected, contracting and pricing negotiations can begin (see Figure 2). Ideally, CSPs should aim to complete the initial selection process in four to six weeks and spend about three weeks on final negotiations (see Figure 3). Although achieving the final contract is an important milestone, the transition team must keep in mind that its transformation journey is only just beginning.
Changing the BSS — set out as a corporate transformation — will impact the way the company functions, change how customers will be served, and how business units (BUs) and IT units interact, so early and frequent communication is essential. Every employee should understand the significance of the transformation project, and the IT teams closely involved with the transformation must be ready for the initial software delivery. The CSP’s internal communications department should be tapped early on to help with both targeted and company-wide communication management.
It is also important to limit changes to the current IT system as much as possible. Limiting change requests at specific stages and instituting a hard freeze before go-live help IT stay focused on the transformation. Clearly defined out-of-the-box (OOTB) minimum thresholds, especially when mandated by top management, help reduce costs and ensure future upgradability (see Figure 4).
When failed transformations are examined, they often show a lack of product pruning and data cleansing prior to the migration. As-is migration (especially of complex, long-tail-prone product lineups) makes the migration process more difficult and usually leads to significant delays. Data migration complexity is often underestimated (data quality, multiple sources, etc.); therefore, migration must ensure master data management uplift and the enabling of full AI. Figure 5 shows how BUs and IT need to focus on product complexity/quantity reduction in the legacy system.
A culture of change is another crucial factor for an organization undergoing this type of transformation. A comprehensive change management program reduces job-security anxiety and helps employees embrace change by highlighting future career opportunities.
Training and support to help employees navigate the new system is critical to establishing lasting change.
The transformation should be positioned as an opportunity to learn new skills, technologies, and approaches, not a way to make people redundant.
Transformation projects typically take a year and a half to two years; some take longer. To keep team members motivated, wins should be communicated and celebrated company-wide. By celebrating successes along the journey, a sense of momentum and excitement can be cultivated throughout the organization, especially if these messages come from senior management. Facilitating active C-suite involvement in the transformation is imperative, whether through internal communication, townhall meetings, or other means.
A competent, committed team is critical to project success; this requires a balanced BU-IT coalition and support from a transformation unit. At a minimum, the transformation team needs:
Seniority in the organization should not be the sole consideration when selecting individuals for important roles in the transformation. Drive and commitment should also be considered, and these attributes should be rewarded. Transformation leaders must possess a good understanding of existing capabilities, systems, and the network landscape, including how to create business value and potential ways to address the organization’s deficiencies. Outlining a clear career-progression path for transformation leaders after the implementation helps align their ambitions with that of the transformation.
All companies face challenges during major IT transformations, but with the right team and careful planning, these transformations can result in vastly improved digital experiences for employees and customers, as well as an organization that is better equipped for the future. When attempting large-scale transformations, these actions can help ensure success:
By Christoph Uferer, Mark Rowland, Kurtuluş Alıç, Jochen Rosen, Daniel Guzmics