2. A little about Telefonica...
2
Telefonica revenues totalled €14,141m;
51% from Latam
CapEx of €1,941m including €695m on
spectrum acquisition
Network investment accounted for 82%
of total investment
Telefonica’s supply chain in Europe
processed 3m+ dispatches to a distribution
network of over 4000 stores per year
15m mobile devices brought to market per
year
Telefonica is present in 24 countries and an
average of 130,250 professionals
More than 315,7 million customer at March 2013
More than 247.31 million mobile phones accesses;
40 million fixed telephony accesses
More than 19.40 million Internet and data accesses
and 3.3 million pay TV accesses
=
Monday, 8 July 13
3. Key industry challenges - 1
3
* breakdown: 29 per cent social networking, 19 per cent email and 19 per cent instant messaging
** According to ComScore, it is 14%
Hours spent communicating weekly
16-24 year old - UK
Source: Ofcom
Monday, 8 July 13
5. Key industry challenges - 3
5
Devices
Suppliers
Telco
Operator
Internet Players
Monday, 8 July 13
6. Key industry challenges - 3
6
Traditional
Telecommunications
Telecommunications Channels, moving into
telecommunications
Device Manufacturers & Operating
Systems
Money &
Payment
Over-the-top
Other New
Business Services
Monday, 8 July 13
7. This has driven our business strategy in 3 ways...
New BusinessCore Business
Broadband&
Connectivity
Voice
+SMS
• M2M
• eHealth
• Big Data
• Financial Services
• Mobile Advertising
• Security
From To
Transactional relations Emotional relationsCustomer
Focus
Embracing
Digital
Efficiency &
Simplification
Multiple suppliers,
systems and processes
Leverage scope and
scale
7
Monday, 8 July 13
8. ...which in turn has impacted our supply chain
priorities...
Marketing
strategy
Corporate
Strategy
Sales and
Service
strategy
Business Unit
Strategy
Devices
strategy
Supply Chain
strategy
8
Monday, 8 July 13
9. ...with an increasing focus on supply chain Key
Performance Indicators
Transformation.... driven by a more global/regional approach
Products available when,
where and how the
customer wants
Monitor in-life
device performance
Support the best
whole life customer
experience
Minimise capital
invested in stock and
drive operational
efficiencies
“Closing
the loop”
9
Monday, 8 July 13
10. Some key implementation challenges we
need(ed) to address
•Different suppliers and outsourcing strategies
•More homogenised markets but different market positions
•Different distribution strategies
•Legacy process and IT
•Cultural differences
10
Monday, 8 July 13
11. What is culture?
•People form, and are formed, by culture
•“Culture” impacts Supply Chains:
•The way they work
•How they change
“Oh, yes. I make my rounds. I’m in every department most every day”
“Who Killed
Change?” - Ken
Blanchard
Roles
Norms
Values
11
Monday, 8 July 13
12. How culture impacts Supply Chain Management
Examples:
•“Open Book”, Contracts, Partnerships
•Change Mgt, Planning, Programme mgt, Process mgt
•Organisation, hierarchy
•Supplier management
•Decision making, meeting etiquette
•etc...
Culture can impact all aspects of supply chain management
12
Monday, 8 July 13
13. What kinds of culture?
•Countries
•Organisations
•Teams
Roles
Norms
Values
13
Monday, 8 July 13
14. What kinds of culture?
•Countries
•Organisations
•Teams
External
Environment
Leadership
Mission & Strategy
Organisational
Culture
Management
Practices
Structure
Systems, Policies
Procedures
Work unit climate
Motivation
Tasks and individual
roles
Individual needs
and values
Individual and organisational
performance
14
Monday, 8 July 13
15. Countries
“5D” Model - “Cultures and Organisations. Software of the
Mind” - Geert Hofstede
0
25.0
50.0
75.0
100.0
PDI IDV MAS UAI LTO
country 1
country 2
Helps with ....The Theory
•Understanding organisations; manager
<> team relationships
•Meeting & workshop expectations
•Attitude to risk and risk management
•Attitude to work and organisation
•Approach to change and change
management
15
Monday, 8 July 13
16. Organisations
“Organisational Cultural Assessment Instrument” - Kim
Cameron & Robert Quinn
•Approach to collaboration
•Approach to decision making
•Understanding motivations and
performance management
•Approach to risk and risk management
•Recognition of expertise
•Values
Helps with ....The Theory
16
Monday, 8 July 13
17. Teams
Force Field Analysis - ‘Field Theory in Social Science” - Kurt
Lewin
Today Vision
Forces
driving
change
Forces
resisting
change
•Team concerns
•Motivations
•Rationale
•Who is helping/hindering and why
Helps with ....The Theory
17
Monday, 8 July 13
19. What have we learnt
•We were right to consider “culture” as a key factor...
•...even so we under estimated its potential to impact the programme
•Using tools and frameworks in a “light touch” way has helped us (the
change team) and the wider business to talk more openly about the
challenges
•We did not recognise early enough the need to address governance
•Our suppliers (existing and potential) have been less “sensitive” to
these kinds of issues
•3rd party support (Consultants) has helped at key times...
“If you decide you divide”
19
Monday, 8 July 13
20. Some final reflections....
•Never mistake motives and action
•Remember “English” is not the “Rosetta Stone”
•Consider culture as the silent but influential person in corner
•More research required!
Its not about changing cultures but recognising them. Ignore at your
peril!
20
Roles
Norms
Values
Supply
Chain
Management
Monday, 8 July 13