With nearly half a billion subscribers around the globe, UK-based Vodafone Group is the second-largest mobile telecommunications company in the world. Beginning in 2006, Vodafone answered the call the business transformation with “Evolution Vodafone,” a state-of-the-art, seven-year business transformation project that transformed Vodafone’s global business operations to compete in the 21st century.
Challenged with the need to transform its back office processes and networks across 65 countries, Vodafone created a business transformation pathway so effective and a business model so future-proof, it won the gold in the 2010 SAP EMEA Quality Awards.
From the start of the project, including the all-important planning and design phase and throughout its evolution, the vision and focus was on the full introduction of a single Vodafone Future State Operating Model (FSOM). Vodafone needed to enable a true FSOM to deliver a globally unified
set of standardized business processes across its many networks. To make this vision a reality, the telecommunications leader created a new core business
model and a new procurement center supported by a shared service organization – all underpinned by a global SAP solutions platform.
“Evolution Vodafone” revealed another remarkable aspect of the transformation: the exceptionally strong correlation between Vodafone’s business transformation approach and the eight disciplines of business transformation methodology, or BTM2. There are numerous examples of how Vodafone’s business transformation has put BTM2 into action for the telecommunications industry.
For example, Vodafone applied the first BTM2 discipline, strategy management, to its primary transformation driver: moving Vodafone from a merger- and acquisition-grown technology company to a shareholder-driven, consumer-focused company. Using strategy management, Vodafone also planned from the start to join its multiple subsidiaries into one global company, making it a more flexible and competitive global player.
Another example of BTM2 in action at Vodafone is the correlation between value management and Vodafone’s desire to realize maximum potential value from its operations. Applying the value management discipline to the transformation from the beginning gave Vodafone the tools, techniques, and frameworks to achieve over US$750 million in annual cash savings by 2011. Every year since Vodafone has realized these savings, in part through shared service center standardized transaction processing and lower total cost of ownership from IT.
“Evolution Vodafone’s” application of the remaining six disciplines of BTM2 – from risk, process, program, and project management to IT transformation and change management – is just as profound as with strategy and value management. Using the disciplines of business transformation, Vodafone succeeded in transforming its back office processes to allow its local operators to focus on value creation, no matter where they are.
You can read about these disciplines and learn more about how Vodafone has permanently turned up the volume on business transformation in the complete Vodafone case study, Vodafone Answers Call to Transformation.
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