Product Development Transformation

1
Product Development Transformation

• WLR Commercial Group
• 22nd May 2008

2
Programme Mission
To deliver a world class product development
capability which is fully equivalent and
provides a high degree of transparency to our
customers. The development process will be
characterised by a clearly defined set of
activities and operate within an agreed set of
commercial parameters. Products will fully meet
customer requirements be delivered into the
market in reduced cycle times and will exhibit a
high degree of quality in terms of right first
time performance and levels of automation.
3
Spectrums brief at the outset of the project

• Project objectives
• Support Openreach in delivering a world class
  product development capability that meets the
  needs and expectations of its customers and
  stakeholders
• Improve customer and stakeholder satisfaction by
  strengthening Openreachs ability to respond to
  market requirements for product development
• Build a realistic picture of how best to match
  the variety of expectations in a highly regulated
  and politicised environment that Openreach is
  exposed to
• Validate the work which has already been
  completed and that which is currently underway
  and to benchmark it against industry standards
• Priorities identified in initial conversations
  with Openreach
• Propose a process that is good and can also be
  communicated in a clear, transparent way
• Be prepared to look at the whole process from
  scratch
• Identify quick wins that can be implemented
  ideally by end of 1Q08, to generate visible
  improvements for external and internal
  stakeholders and ensure that changes gains
  traction
• Provide implementation plan on time for
  incorporation into Openreachs FY 2008/09 budget

4
Product development is a key contributor for
Openreach to achieve its commercial objectives
Corporate objectives
Inputs
Outputs

• Financial objectives
• Budget
• Operational targets
• Technology strategy
• Regulatory requirements

Customer needs
Top-line revenue growth
Improved EBIT
Flexi Cease
WLR baseline
Product development
Better customer experience
95 right first time
SFI
Migrations
Name the day bband
Fulfilment of TSR obligations
Cross functional contributions (examples)

• Customer needs and perception
• IT delivery capability
• Changes for field force and Operations capacity
  to train
• Process changes in Services
• HR issues

Operational improvements
5
Openreachs products also drive the rest of the
industry
Today
Openreach is the trading platform for the entire
UK telecoms industry (OTA)
Tomorrow?
Next generation high speed broadband will be
essential for the UK's future economic success
(UK Government)
Digital Region is the first large scale next
generation access public intervention in the UK,
based in South Yorkshire (Ofcom)
We must not be in a situation where our
creativity and growth of our businesses are
stifled by inadequate communications and
regulatory frameworks (UK Government)
6
Openreach applies a standard Stage-Gate process
and has over time launched a significant number
of new developments
P0. Concept
P1. Specify Plan
P2. Design Implement
P3. Testing / Trial
P4. Launch Prep
P5. Closure
In-life product
SOR
D0
D1
D3
D4
D2
Product launches

• LLU migration to EMP completed
• More than 100 product related undertakings
  delivered
• WLR3 on EMP up and running (although work remains
  to be done)
• Orchid launched
• SFI launched

7
From the end of FYI 08/09 forward commercial new
product developments will begin to outweigh TSR
requirements
Evolution of Openreach product development
NGA
Next Generation voice services
Focus on WLR 3
Enhancements to LLU
LLU fully migrated to EoI
Ethernet development
EMP platform launched
Establishing the organisation
Today 4.8m unbundled ilnes
Jan 2006 0.2m unbundled lines
Increasingly commercial and forward looking debate
8
However, the process in its current form doesnt
satisfy any of the stakeholders involved
Confusion and stress internally
Frustration externally
Just decide, communicate it and then stick to it
Weve so far been driven by TSR requirements. We
still need to transition to more commercial
thinking
We submit a request and then it disappears and
only reappears 100 days before launch and you
only get details 50 days before
There is no proactivity in communicating
progress or emerging issues
Decision making just feels like a power struggle
There is not enough thinking about the zoomed out
picture for example WLR vs LLU substitution
There are too many silos in product development
we ought to bundle projects strategically
We had to explain to them what a Roadmap was
It is very hard to get them to commit to
something
There are too many silos in product development
we ought to bundle projects strategically
Wed rather have a straight no than a slow no
Stakeholder involvement is down to the
individual Project Manager
I couldnt tell you who was the end-to-end owner
9
(No Transcript)
10
Openreachs product development is clogged up by
the sheer volume of requests
We never say NO the business is scared to say
we are full
External SORs
Change requests to improve existing products
Openreach SORs

• Openreach constraints
• Limited EMP capacity for change
• Limited organisational capacity for change (e.g.
  capacity for training)
• Budget constraints
• Need to process internal improvements and fixes
• Increasing workload through regression testing of
  old releases

175 requests for review in Jan 08
Processing capacity per release
50
708 open requests in the system
11
Poor communication has lost Openreach a lot of
goodwill over the past year
What it looks like from the outside
P0. Concept
P1. Specify Plan
P2. Design Implement
P3. Testing / Trial
P4. Launch Prep
P5. Closure
D0
D1
D2
D3
D4
They have no concept of a customer They tell
us they arent doing it, but not why The
relationship with the industry is
broken Pretending to be consulting us is an
insult They need to put themselves into the
CPs shoes
Just decide, communicate it and then stick to
it The prioritisation process is not clear at
all It is very hard to get them to commit to
something The issue is dishonesty they are
scared
There is no proactivity in communicating
progress or emerging issues They need to work
with us who is telling me whether the product
can do what I need it to? We need more notice
about what is coming out in a release. We cant
change our interface this quickly We submit a
request and then it disappears and only reappears
100 days before launch and you only get details
50 days before
The presentation on why we should take up WLR3
was dreadful no understanding of what we want or
need Who is telling me why I should buy a
product or what it can do for me?
They are very reactive Our account team has
a hands-off approach to managing us I am new
to the interaction with Openreach. Where can I
find an update about what is happening?
12
Customers are not using the products that have
been launched
We would like to take this product but we cant
take the whole release weve got systems
limitations too
Release 700, Release 800 this means
nothing to us tell us what it does!
What it looks like from the outside
Keeping pace with and understanding new product
developments is difficult because of the
volatility of any roadmap
Ive never seen it presented end-to-end its
very hard to relate an SOR to a product
The documentation is shocking we just get a
brief summary and a deep technical document
13
Our project has identified 8 issues around
governance and behaviour that currently hamper
the processs efficiency and effectiveness
P0. Concept
P1. Specify Plan
P2. Design Implement
P3. Testing / Trial
P4. Launch Prep
P5. Closure
D0
D1
D3
D4
D2
1
Need for stronger visibility of medium term
strategic vision and roadmap
5
Closer co-ordination with BT Design
2
Focus on rigour at the front-end of the process
including higher SOR quality
Stronger monitoring of project KPIs, internal
communication and a formal post implementation
review
6
3
Need for more rigorous prioritisation in line
with roadmap
7
Review of communication channels, cycle and
information for CPs
4
Better adherence to the process and firm gates
throughout
8
Improved commercialisation of new developments
14
Addressing these issues will benefit both
Openreach and the CP community
P0. Concept
P1. Specify Plan
P2. Design Implement
P3. Testing / Trial
P4. Launch Prep
P5. Closure
D0
D1
D3
D4
D2
More rigorous decisions up front
Regular progress updates
Direction set by roadmap
Commercial discussion
Monitoring of success
Earlier commitment to specific initiatives
Fewer requests with stricter quality standards

• Benefits for both CPs and Openreach
• Focus on doing fewer things better
• Greater stability
• CP inputs early on in the process and involvement
  throughout
• Transparency of decision making, responsibility
  and progress

15
Openreach has undertaken a number of initiatives
in the past year to improve process, which the
programme can build on
Product Line SoR Forums
Review of customer engagement
Business Case focus
Review of Portfolio Leadership Meeting
Post Implementation Reviews
Delivery of products and services
Customer Needs / Strategic objectives
Introduction of dedicated deployment function
SOR and project repository
Bronze / Silver / Gold scopes
CIO review of IT supply chain
Documen-tation review
16
As an initial priority we recommend that
Openreach gain a firmer grip on the process

• Stronger internal communication of strategic
  direction and agreed budget priorities
• Tough decisions and filtering
• Clear roles and responsibilities
• Monitoring and measurement
• Managing customer and industry expectation

A
B
C
D
E
17
Activity

• Programme Mobilisation (21st April)
• Core team alignment and on-boarding
• Design of programme architecture / work packages
• Specification of outcomes for each work package
• Creation of 100 day and 12 month activity
• Consultation on new product developments added to
  the scope

18
(No Transcript)
19
(No Transcript)
20
(No Transcript)
21
(No Transcript)
22
Programme Team
Core Team
Steering Group
Errol Stafford
John Thornhill
Operations
Dave Bennett
Garry Lewis
Service
Kev Black
Colin Windsor
CIO
Jon Masters
Ian Wheeler
BTU
ERPA
Francine Ravettlat
Amy Chalfen
Legal
Steph Sharp
Mark Hurst
HR
Anna Cartwright
Alison Hilton
Spectrum
Matt Foster
Dan Kirk
Pauline Horsfall Phil Beal Kerry Brennan
SPM
Nigel Cheek
Finance
Lin Freathy
23
(No Transcript)
24
(No Transcript)
25
Next Steps

• More permanent resource (2 additional people)
  recruited to the programme team
• Spectrum involvement continues for the next 6
  weeks
• Specific activity on quick wins
• Orchid case study with the Ethernet industry
• Message Lost Reconcilliation joint business
  case trial with Carphone Warehouse
• Employing the LLU approach to requirements across
  other product areas
• EMP consumption evaluation
• Workstack analysis 1,245 requirements in Tempo