Telefónica relies on partnerships for a new, open approach to BSS
Group Head of IT Architecture Javier Garcia is not afraid to admit that, like many other operators, Telefónica has had mixed success when it comes to business support system (BSS) transformation projects. “We’ve been learning during the last few years, and we have a lot of experience, bad and good. Sometimes we haven’t achieved our expectations but we keep evolving the journey.”
Mark Newman20 Dec 2021
Telefónica relies on partnerships for a new, open approach to BSS
Group Head of IT Architecture Javier Garcia is not afraid to admit that, like many other operators, Telefónica has had mixed success when it comes to business support system (BSS) transformation projects. “We’ve been learning during the last few years, and we have a lot of experience, bad and good. Sometimes we haven’t achieved our expectations but we keep evolving the journey.”
But Telefónica has now settled on a new approach which, it hopes, will meet the requirements of today’s business, and of future opportunities enabled by new network technologies such as 5G. This new strategy, which is based on TM Forum’s Open Digital Architecture, embraces concepts including “best-of-breed”, openness, configuration and the recruitment of a dedicated systems integrator.
Speaking as part of a TM Forum webinar, Next-generation BSS architectures: the Telefónica way, Garcia outlined the approach that Telefónica Group is taking to BSS transformation across all its operating companies. Joining him on the webinar were business leaders from Salesforce, Matrixx and Compax – three of the main technology partners of Telefónica in its BSS transformation of Telefónica Deutschland.
From best-of-suite to best of breed
While the period 2010 to 2020 saw a preference for operators taking a “best-of-suite” approach towards BSS/OSS transformation, the 2020s are seeing a swing back in favor of “best of breed”.
Rather than having a large, single stack, Telefónica has learned that “a different pace is needed” for each one of its BSS systems or components. The starting point, in terms of this new approach, is decoupling technical and commercial processes to enable each to evolve at its own pace. Telefónica is transitioning to having just one converged charging system for its BSS in each of its markets and decoupling the technical and commercial catalogues. For its BSS transformation in Telefónica Deutschland, the operator chose Matrixx to supply its online charging system, Salesforce for CRM and Compax for billing. Telefónica defines its microservices architecture before entering into discussions with each vendor.
The working relationship between Telefónica, its vendors, and the relevant systems integrator (in Germany’s case Tech Mahindra), is crucial, notes Garcia. “We have moved to a partnership model,” he says. Rather than asking its vendors to customize their products to meet the specific requirements of a specific operator, Telefónica is now trying to rely on its vendors’ technology roadmaps to satisfy future business requirements. Its preferred approach is now to configure rather than to customize, with a target of 90% configuration.
In adopting this new approach Garcia recognizes the importance of building a strong bond with the business. “They need to be involved in the project as soon as we have a clear view of the technology. They help us to define the plan that we commit to,” he says. By partnering, the IT team has been able to win support for not committing to investment in systems for products and services which are not growing. For example, there will be no new BSS investment for its fixed-line copper business.
The new approach is based on agile software development and building a minimum viable product (MVP) with a greenfield strategy. Moving to the cloud, and taking a hybrid cloud approach, is central to these changes, enabling the IT team to deliver changes as fast as the business needs them and, where possible, automating different functions and processes.
Jennifer Kyriakakis, Founder and Chief Marketing Officer of Matrixx, welcomes Telefónica’s change of strategy even though “it's not a model that we've been used to working with”. Kyriakakis notes that normally “you get requirements from a customer and you're not involved in those early conversations”. But bringing vendors into discussions early means that “there's skin in the game” for all vendors, in whose interest it is work together because “we all have the same business outcome in mind”.
There are positive signs that Telefónica’s approach is getting more popular. “We have, as we speak, five ongoing transformation projects in four different operators, where we are following the guiding architectural principles outlined by Javier,” says Jean-Marie Pierron, VP Industry Solutions at Salesforce. Such a partner-driven, collaborative approach comes naturally to Salesforce, which has more than 5,000 companies in its own partner ecosystem, according to Pierron.
All three of Telefónica’s vendors in the webinar talked about the importance of collaboration, co-creation and joint problem solving. Fritz Thimler, VP for international business at Compax, reckons that the key to the successful partnership was working together and developing a solution – initially in the form of a proof of concept – to a business problem.
While both Telefónica and its technology partners have enthusiastically embraced this new way of doing business, it is still early days in terms of demonstrating that it will be successful. Telefónica hopes to have MVPs for both its B2B and B2C stacks in German within the next few weeks. In terms of other Telefónica markets, the company is just starting out now with this new approach in Brazil, while in the UK, where the Telefónica-owned O2 mobile operator recently merged with cable TV and broadband operator Virgin Media, the new business is still in the process of defining its future BSS requirements.
But Telefónica has now settled on a new approach which, it hopes, will meet the requirements of today’s business, and of future opportunities enabled by new network technologies such as 5G. This new strategy, which is based on TM Forum’s Open Digital Architecture, embraces concepts including “best-of-breed”, openness, configuration and the recruitment of a dedicated systems integrator.
Speaking as part of a TM Forum webinar, Next-generation BSS architectures: the Telefónica way, Garcia outlined the approach that Telefónica Group is taking to BSS transformation across all its operating companies. Joining him on the webinar were business leaders from Salesforce, Matrixx and Compax – three of the main technology partners of Telefónica in its BSS transformation of Telefónica Deutschland.
From best-of-suite to best of breed
While the period 2010 to 2020 saw a preference for operators taking a “best-of-suite” approach towards BSS/OSS transformation, the 2020s are seeing a swing back in favor of “best of breed”.
Rather than having a large, single stack, Telefónica has learned that “a different pace is needed” for each one of its BSS systems or components. The starting point, in terms of this new approach, is decoupling technical and commercial processes to enable each to evolve at its own pace. Telefónica is transitioning to having just one converged charging system for its BSS in each of its markets and decoupling the technical and commercial catalogues. For its BSS transformation in Telefónica Deutschland, the operator chose Matrixx to supply its online charging system, Salesforce for CRM and Compax for billing. Telefónica defines its microservices architecture before entering into discussions with each vendor.
The working relationship between Telefónica, its vendors, and the relevant systems integrator (in Germany’s case Tech Mahindra), is crucial, notes Garcia. “We have moved to a partnership model,” he says. Rather than asking its vendors to customize their products to meet the specific requirements of a specific operator, Telefónica is now trying to rely on its vendors’ technology roadmaps to satisfy future business requirements. Its preferred approach is now to configure rather than to customize, with a target of 90% configuration.
In adopting this new approach Garcia recognizes the importance of building a strong bond with the business. “They need to be involved in the project as soon as we have a clear view of the technology. They help us to define the plan that we commit to,” he says. By partnering, the IT team has been able to win support for not committing to investment in systems for products and services which are not growing. For example, there will be no new BSS investment for its fixed-line copper business.
The new approach is based on agile software development and building a minimum viable product (MVP) with a greenfield strategy. Moving to the cloud, and taking a hybrid cloud approach, is central to these changes, enabling the IT team to deliver changes as fast as the business needs them and, where possible, automating different functions and processes.
Jennifer Kyriakakis, Founder and Chief Marketing Officer of Matrixx, welcomes Telefónica’s change of strategy even though “it's not a model that we've been used to working with”. Kyriakakis notes that normally “you get requirements from a customer and you're not involved in those early conversations”. But bringing vendors into discussions early means that “there's skin in the game” for all vendors, in whose interest it is work together because “we all have the same business outcome in mind”.
There are positive signs that Telefónica’s approach is getting more popular. “We have, as we speak, five ongoing transformation projects in four different operators, where we are following the guiding architectural principles outlined by Javier,” says Jean-Marie Pierron, VP Industry Solutions at Salesforce. Such a partner-driven, collaborative approach comes naturally to Salesforce, which has more than 5,000 companies in its own partner ecosystem, according to Pierron.
All three of Telefónica’s vendors in the webinar talked about the importance of collaboration, co-creation and joint problem solving. Fritz Thimler, VP for international business at Compax, reckons that the key to the successful partnership was working together and developing a solution – initially in the form of a proof of concept – to a business problem.
While both Telefónica and its technology partners have enthusiastically embraced this new way of doing business, it is still early days in terms of demonstrating that it will be successful. Telefónica hopes to have MVPs for both its B2B and B2C stacks in German within the next few weeks. In terms of other Telefónica markets, the company is just starting out now with this new approach in Brazil, while in the UK, where the Telefónica-owned O2 mobile operator recently merged with cable TV and broadband operator Virgin Media, the new business is still in the process of defining its future BSS requirements.
- Watch the webinar Next-generation BSS architectures: the Telefónica way to find out more.
