- “Business Model Simplification” is part of dtac’s transformational projects with the aim to create continual and sustainable growth.
- dtac has run its business for more than 20 years with success, but also grew a legacy system, which grew exceedingly complex over the years.
- Customer migration from traditional to digital is the most challenging job under BMS project.
Prisana Ratanasuwanasri is Head of Business Model Simplifiscation (BMS) and Special project, formerly the head of Postpaid marketing. The newly-established department also comprises the heads of customer-related divisions, including Sarut Vanichpun from Prepaid Marketing, Roj Dachodomphun from Postpaid Marketing, Ukrit Salyapongs from Channel Strategy and Performance Management, Thanasit Kongsaksirikul from Product Management, Thibaut Girard, Head of Transformation and Panwipa Sukhagganond from Commercial Strategy and Projects. We spoke to the team about their objectives for 2018.
What is BMS?
We are a part of dtac’s transformational projects with the aim to create continual and sustainable growth, as well as serve customers’ evolving needs. dtac has run its business for more than 20 years, and we have grown during that time. At the same time, two decades of business also caused our systems to grow exceedingly complex over the years, making it a struggle to remain agile. Over the years, dtac accumulated more than 700 price plans for its post-paid customers.
The dynamism of the sector actually contributes to complexity, as companies frequently launch new products and services, each of which must be integrated with existing products and maintained on the back end with billing and network systems.
To deal with this legacy system, dtac needs to simplify across the full spectrum of its business, ranging from strategy, execution, processes and the customers’ access to services. They must all align with the new business environment: fast-changing consumer behavior, time to market, limited resources and funding. We must overhaul and reorganize to make the company move faster.
BMS is like a head chef. We develop the menu offerings, forecasting supply needs and estimating costs. The role is aimed at structuring a smoother operation and improving our products daily. Hence, the journey of BMS starts from questioning, finding root causes and enhancing existing offers.
How does BMS work?
The first phase involves diagnostics, trying to understand what customers truly want, what the business requires and manifesting this complexity. There are five work streams involved in this currently.
First – Customer value proposition. This team is checking the balance between business and customer purposes: What matters most to them. What we should simplify. What we can improve.
Second and third – Prepaid and Postpaid marketing. We want to find out what they want at the moment, allowing us to prioritize our tasks better. This is to reduce complexity caused by dynamism of the sector.
Fourth – Customer Journey. We focus on the customer experience in order to pinpoint customers’ pain points.
Last – Channel. We try to understand the current consumer behavior and ecosystem to make the most effective digital distribution channel for the sake of business opportunity.
When we truly understand the present circumstance and set a clear goal. The next phase is to design an array of tangible solutions.Why does BMS need to be set up?
Because some questions might not be answered by day-to-day operations. They largely focus on the KPI. Hence, the result is derived from execution, not strategy. BMS will play a role in joint collaboration with each division to reflect – step back, take a broader view, see the trend – to enhance our products and services in line with present and future needs.
How does simplification create a sustainable growth?
If we look at the successful startups, we can notice how agile they are, how fast the product launches, how they satisfy customers. The answer is the way they work – build, measure, learn, pivot, get feedback and redo.
In reverse, the way big companies treat customers is different. They serve the needs of customers with what they have, not based on what customers want. This clearly reflects how layers of complexity have been piled up over the past decades.
Simplification is the way to clearly define and see the status quo. What is customer’s needs? How do we serve their needs? Even if it will make us more complex internally, it will also make our customers more satisfied.
How will dtac’s business model be changed?
Our business model remains unchanged with the core value of providing internet services under the purpose “Connecting you to what matters most”. At the same time, we pledge to maintain sustainable growth.
What will be changing is the price plans that will be designed to suit the new landscape of communication use, such as the shift from voice to data.
All in all, what will be changing is the way we work to cope with dynamics of consumer behavior.
What’s the most challenging job in BMS?
Customer migration from traditional to digital is the most challenging, while we need to maintain their satisfaction or even increase it. For instance, how to encourage customers to redeem dtac rewards program through the dtac app rather than USSD. The top reason people call the call center is to check their balance. They can do that in the app or by SMS. It means that we did not do a good enough job of showing how easy life can be when entering digital sphere. If our 20 million subscribers become digital, customer data analysis will be a lot easier and the call center queue will be shorter, resulting in a better customer experience.
How does BMS contribute to dtac’s growth?
What we at dtac are doing now is a key component to getting the company back to growth. It is the right timing that BMS came along with digital transformation, which is the company’s top agenda.
Digital talent is a key to drive the company become a digital leader quickly. It helps us be more focused on sustainable growth. We would like to thank you all for being a part of BMS project.