Orange Business Services Improves Speed and Profitability with New Processes and Tools
Client:Orange Business Services
- Completely transform technology and processes across 166 countries
- Increase profitability of network services
- Remove impediments to productivity
- Implement new technology and streamlined processes
- Use change-management techniques to usher in the new way of doing business
- Roll out the transformation globally
- Improved processes and increased profitability
- Shortened lead-to-quote times and enhanced quotation process
- Launched global e-bonding project
Focusing on competitive service and pricing
In the world of telecommunications, technology changes quickly. Orange Business Services (OBS) wanted a partner that could help it keep up with changing IT requirements. OBS worked with CSC to transform its technology and processes — and increase profitability.
A unit of Orange Group, OBS is a Paris-based global IT and communications company that provides B2B services including cloud computing, customer contact, mobility, M2M and security. To provide seamless global network services, OBS spends hundreds of millions of dollars each year to purchase network connectivity from local carriers and create international and domestic network backbones for clients in 220 countries.
The challenge facing OBS was daunting: Implement a global transformation program for purchasing network access and pricing OBS services that could be applied country-by-country, taking into account local preferences, while designing a comprehensive operating model to support it.
Business units undergoing the transformation included sales, marketing, sourcing, network and operations, all of which needed to align around a single global vision. CSC worked closely with OBS leadership to develop a roadmap for key IT infrastructure changes that would help the organization reduce network and access costs.
Above all, CSC needed to be aggressive in helping management change the mindset of OBS employees.
According to Sylvie Vallez, OBS senior vice president, Telecom & Enterprise Sourcing, “The first difficulty was internal: to convince the different actors that we could succeed and that they should spend some time and resources on this project.”
She says OBS employees needed to go about doing business differently: “I wanted to have people strongly challenge our current processes, our way of working; not being polluted by the day-to-day business and being able to provide a benchmark view.”
Removing silos to reduce network and access costs
As in many large multinational companies, OBS employees operated in silos. CSC’s task was to communicate with various departments to implement proven change-management practices based on the tenets of Six Sigma and CSC’s vast experience with similar transformations.
OBS has more than 200 million business customers large and small spread across the globe. Two of the company’s primary objectives in this market were to improve its network-access purchasing process while also reducing the time it takes to generate quotes for B2B services.
In addition to taking down the business silos, the company needed to develop new quotation tools that would allow OBS sales representatives to make more timely purchases at the right cost.
To achieve this, CSC designed and built a risk management model for quotations based on insurance industry best practices. This tool lets OBS identify risk factors and the margin needed to cover risk variation, while reducing repetitive manual tasks.
The biggest success, Vallez says, was an improvement in the lead time required to generate quotes. “This project has allowed us to break up the silos in the quotation process. Now the different actors are aligned on the same objectives for both competitiveness and profitability,” she says.
Improving sourcing strategies
By reviewing suppliers’ portfolios, renegotiating contracts and implementing a new negotiation methodology, CSC also helped OBS develop a new sourcing strategy. In addition, we provided OBS with an individual performance analysis of 40 purchasing managers across the globe and developed a unique predictive pricing model and tool to improve the sales and procurement processes.
By facilitating interactions between sales and sourcing teams, CSC also defined a new presales process from early lead identification to final bid submission. This was done by adapting tools and roles, as well as by making changes in responsibilities.
It resulted in improving visibility and increasing both sales responsiveness and transformation rates. We also helped OBS save costs by changing the post-sales process to reduce the gap between expected and actual contract margins.
Another part of the transformation was to help OBS better educate salespeople on the company’s offerings. For example, OBS wanted to promote Ethernet technology to its customers as a cost-effective solution. Vallez says, “We have trained salespeople on this technology [so they can] better sell it.” At the start of the transformation, the ratio of Ethernet orders was 30 percent, and afterward, the figure had increased to 80 percent.
CSC is also helping OBS roll out a new e-bonding solution, also known as electronic bonding. This evolving technology consists of a software interface that allows companies to streamline network-related high-volume transactions. OBS’s e-bonding solution is launching in three waves, starting with Europe and eventually expanding around the world.
The transformation has helped OBS offer a more up-to-date portfolio with more competitive prices and shorter lead-to-quote times. By implementing enhanced processes and new technology, OBS has been able to improve relationships with its customers and suppliers, which in turn has increased profitability. Vallez says, “I have been very happy to work with the CSC team. We have worked in a very good spirit, and I can see the benefits for the long term.”