OSS orgitecture

So far this week we’ve been focusing on ways to improve the OSS transformation process. Monday provided 7 models for achieving startup-like efficiency for larger OSS transformations. Tuesday provided suggestions for speeding up the transition from OSS PoC to getting the solution into production, specifically strategies for absorbing an OSS PoC into production.

Both of these posts talk about the speed of getting things done outside the bureaucracy of big operators, big networks and big OSS. Today, as the post title suggests, we’re going to look at orgitecture – how re-designing the structure and culture of an organisation can help streamline digital transformations.

Do you agree with the premise that smaller entities (eg Agile autonomous groups, partners, consultants, etc) can get OSS tasks done more efficiently when operating at arms-length of the larger entity (eg the carrier)? I believe that this is a first principle of physics at play.

If you’ve worked under this arms-length arrangement in the past, you’ll also know that at some point those delivery outcomes need to get integrated back into the big entity. It’s what we referred to yesterday as absorption, where the level of integration effort falls on a continuum between minimally absorbed to fully absorbed.

OSS orgitecture is the re-architecture of the people, processes, culture and org structure to better allow for the absorption process. In the past, all the safety-checks (eg security, approvals, ops handover, etc) were designed on the assumption that internal teams were doing the work. They’re not always a great fit, especially when it comes to documentation review and approval.

For example, I have a belief that the effectiveness of documentation review and approval is inversely proportional to the number of reviewers (in most, but not all cases). Unfortunately, when an external entity is delivering, there tends to be inherently less trust than if an internal entity was delivering. As such, the safety-checks increase.

Another example is when the large organisation uses Agile delivery models, but use supply partners to deliver scope of works. The partners are able to assign effort in a sequential / waterfall manner, but can be delayed by only getting timeslices of attention from client’s staff (ie resources are available according to Agile sprint planning).

Security and cutover planning mechanisms such as Change Review Boards (CRB) have also been designed around old internal delivery models. They also need to be reconsidered to facilitate a pipeline of externally-implemented change.

Perhaps the biggest orgitecture factor is in getting multiple internal business units to work together effectively. In the old world we needed all the business units to reach consensus for a new product to come to market. Sales/Marketing/Products had to work with OSS/IT and Networks. Each of these units tend to have vastly different cultures and different cadences for getting their tasks done. Delivering a new product was as much an organisational challenge as it was a technical challenge and often took months. Those times-to-market are not feasible in a world of software where competitive advantages are fleeting. External entities can potentially help or hinder these timeframes. Careful design of small autonomous teams have the potential to improve abstraction at the interlocks, but culture remains the potential roadblock.

I’m excited by the opportunity for OSS delivery improvement coming from leveraging the gig economy. But if big OSS transformations are to make use of these efficiency gains, then we may also need to consider culture and process refinement as part of the change management.

Seven OSS transformation efficiency models

Do you work in a large organisation? Have you also worked in smaller organisations?
Where have you felt more efficient?

I’ve been lucky enough to work on some massive OSS transformations for large T1 telcos. But I’ve always noticed the inefficiency of working on these projects when embedded inside the bureaucracy of the beast. With all of the documentation, sign-offs, meetings, politics, gaining consensus, budget allocations, etc it can sometimes feel so inefficient. On some past projects, I’ve felt I can accomplish more in a day outside than a week or more inside the beast.

This makes sense when applying the fundamental law of physics F = M x a to OSS projects. In other words, the greater the mass (of the organisation), the more force must be applied to reach a given acceleration (ie to effect a change).

It’s one of the reasons I love working within a small entity (Passionate About OSS), but into big entities (the big telcos and utilities). It’s also why I strongly believe that the big entities need to better leverage smaller working groups to facilitate big OSS change. Not just OSS transformation, but any project where the size of the culture and technology stack are prohibitive.

Here are a few ways you can use to bring a start-up’s efficiency to a big OSS transformation:

  1. Agile methodologies – If done well, Agile can be great at breaking transformations down into smaller, more manageable pieces. The art is in designing small autonomous teams / responsibilities and breakdown of work to minimise dependencies
  2. Partnerships – Using smaller, external partners to deliver outcomes (eg product builds or service offerings) that can be absorbed into the big organisation. There are varying levels of absorption here – from an external, “clip-the-ticket” offering to offerings that are fully absorbed into the large entity’s OSS/BSS stack
  3. Consultancies – Similar to partnerships, but using smaller teams to implement professional services
  4. Spin-out / spin-in teams – Separating small teams of experts out from the bureaucracy of the large organisation so that they can achieve rapid progress
  5. Smart contracts / RFPs – I love the potential for smart contracts to automate the offer of small chunks of work to trusted partners to bid upon and then deliver upon
  6. Externalised Proofs of Concept (PoC) – One of the big challenges in implementing for large organisations is all of the safety checks that slow progress. Many, such as security and privacy mechanisms, are completely justified for a production network. But when a concept needs to be proved, such as user journeys, product integrations, sand-pit environments, etc, then cloud-based PoCs can be brilliant
  7. Alternate brands – Have you also noticed that some of the tier-1 telcos have been spinning out low-cost and/or niche brands with much leaner OSS/BSS stacks, offerings and related culture lately? It’s a clever business model on many levels. Combined with the strangler fig transformation approach, this might just represent a pathway for the big brand to shed many of their OSS/BSS legacy constraints

Can you think of other models that I’ve missed?

The key to these strategies is not so much the carve-out, the process of getting small teams to do tasks efficiently, but the absorb-in process. For example, how to absorb a cloud-based PoC back into the PROD network, where all safety checks (eg security, privacy, operations acceptance, etc) still need to be performed. More on that in tomorrow’s post.

OSS Best Practices, cough, splutter

Organizations that seek transformations frequently bring in an army of outside consultants [or implementers in the case of OSS] who tend to apply one-size-fits-all solutions in the name of “best practices.” Our approach to transforming our respective organizations is to rely instead on insiders — staff who have intimate knowledge about what works and what doesn’t in their daily operations.”
Behnam Tabrizi, Ed Lam, Kirk Gerard and Vernon Irvin here

I don’t know about you, but the term “best practices” causes me make funny noises. A cross between a laugh, cough, derisive snicker and chortle. This noise isn’t always audible, but it definitely sounds inside my head any time someone mentions best practices in the field of OSS.

There are two reasons for my bemusement, no, actually there’s a third, which I’ll share as the story that follows. The first two reasons are:

  • That every OSS project is so different that chaos theory applies. I’m all for systematising aspects of OSS projects to create repeatable building blocks (like TM Forum does with tools such as eTOM). But as much as I build and use repeatable approaches, I know they always have to be customised for each client situation
  • Best practices becomes a mind-set that can prevent the outsiders / implementers from listening to insiders

Luckily, out of all the OSS projects I’ve worked on, there’s only been one where the entire implementation team has stuck with their “best practices” mantra throughout the project.

The team used this phrase as the intellectual high-ground over their OSS-novice clients. To paraphrase their words, “This is best practice. We’ve done it this way successfully for dozens of customers in the past, so you must do it our way.” Interestingly, this project was the most monumental failure of any OSS I’ve worked on.

The implementation team’s organisation lost out because the project was halted part-way through. The client lost out because they had almost no OSS functionality to show for their resource investment.

The project was canned largely because the implementation company wasn’t prepared to budge from their “best practices” thinking. To be honest, their best practices approaches were quite well formed. The only problem was that the changes they were insisting on (to accommodate their 10-person team of outsiders) would’ve caused major re-organisation of the client’s 100,000-person company of insiders. The outsiders / implementers either couldn’t see that or were so arrogant that they wanted the client to bend anyway.

That was a failure on their behalf no doubt, but not the monumental failure. I could see the massive cultural disconnect between client and implementer very early. I could even see the way to fix it (I believe). I was their executive advisor (the bridge between outsiders and insiders) so the monumental failure was mine. Not through lack of trying, I was unable to persuade either party to consider the other’s perspective.

Without compromise, the project became compromised.

All OSS products are excellent. So where’s the advantage?

“You don’t get differential advantage from your products, it’s from the way you speak to and relate to your customers . All products are excellent these days.”

The quote above paraphrases Malcolm McDonald from a podcast about his book, “Malcolm McDonald on Value Propositions: How to Develop Them, How to Quantify Them.”

This quote had nothing to do with OSS specifically, but consider for a moment how it relates to OSS.

Consider also in relation to the diagram below.
Long-tail features

Let’s say the x-axis on this graph shows a list of features within any given OSS product. And the y-axis shows a KPI that measures the importance of each feature (eg number of uses, value added by using that feature, etc).

As Professor McDonald indicates, all OSS products are excellent these days. And all product vendors know what the most important features are. As a result, they all know they must offer the features that appear on the left-side of the image. Since all vendors do the left-side, it seems logical to differentiate by adding features to the far-right of the image, right?

Well actually, there’s almost no differential advantage at the far-right of the image.

Now what if we consider the second part of Prof McDonald’s statement on differential advantage, “…it’s from the way you speak to and relate to your customers.”

To me it implies that the differential advantage in OSS is not in the products, but in the service wrapper that is placed around it. You might be saying, “but we’re an OSS product company. We don’t want to get into services.” As described in this earlier post, there are two layers of OSS services.

One of the layers mentioned is product-related services (eg product installation, product configuration, product release management, license management, product training, data migration, product efficiency / optimisation, etc). None of these items would appear as features on the long-tail diagram above. Perhaps as a result, it’s these items that are often less than excellent in vendor offerings. It’s often in these items where complexity, time, cost and risk are added to an OSS project, increasing stress for clients.

If Prof McDonald is correct and all OSS products are excellent, then perhaps it’s in the services wrapper where the true differential advantage is waiting to be unlocked. This will come from spending more time relating to customers than cutting more code.

What if we take it a step further? What if we seek to better understand our clients’ differential advantages in their markets? Perhaps this is where we will unlock an entirely different set of features that will introduce new bands on the left-side of the image. I still feel that amazing OSS/BSS can give carriers significant competitive advantage in their marketplace. And the converse can give significant competitive disadvantage!

Are you desperately seeking to increase your OSS‘s differential advantage? Contact us at Passionate About OSS to help map out a way.

Can OSS/BSS assist CX? We’re barely touching the surface

Have you ever experienced an epic customer experience (CX) fail when dealing a network service operator, like the one I described yesterday?

In that example, the OSS/BSS, and possibly the associated people / process, had a direct impact on poor customer experience. Admittedly, that 7 truck-roll experience was a number of years ago now.

We have fewer excuses these days. Smart phones and network connected devices allow us to get OSS/BSS data into the field in ways we previously couldn’t. There’s no need for printed job lists, design packs and the like. Our OSS/BSS can leverage these connected devices to give far better decision intelligence in real time.

If we look to the logistics industry, we can see how parcel tracking technologies help to automatically provide status / progress to parcel recipients. We can see how recipients can also modify their availability, which automatically adjusts logistics delivery sequencing / scheduling.

This has multiple benefits for the logistics company:

  • It increases first time delivery rates
  • Improves the ability to automatically notify customers (eg email, SMS, chatbots)
  • Decreases customer enquiries / complaints
  • Decreases the amount of time the truck drivers need to spend communicating back to base and with clients
  • But most importantly, it improves the customer experience

Logistics is an interesting challenge for our OSS/BSS due to the sheer volume of customer interaction events handled each day.

But it’s another area that excites me even more, where CX is improved through improved data quality:

  • It’s the ability for field workers to interact with OSS/BSS data in real-time
  • To see the design packs
  • To compare with field situations
  • To update the data where there is inconsistency.

Even more excitingly, to introduce augmented reality to assist with decision intelligence for field work crews:

  • To provide an overlay of what fibres need to be spliced together
  • To show exactly which port a patch-lead needs to connect to
  • To show where an underground cable route goes
  • To show where a cable runs through trayway in a data centre
  • etc, etc

We’re barely touching the surface of how our OSS/BSS can assist with CX.

The OSS Tinder effect

On Friday, we provided a link to an inspiring video showing Rolls-Royce’s vision of an operations centre. That article is a follow-on from other recent posts about to pros and cons of using MVPs (Minimum Viable Products) as an OSS transformation approach.

I’ve been lucky to work on massive OSS projects. Projects that have taken months / years of hard implementation grind to deliver an OSS for clients. One was as close to perfect (technically) as I’ve been involved with. But, alas, it proved to be a failure.

How could that be you’re wondering? Well, it’s what I refer to as the Tinder Effect. On Tinder, first appearances matter. Liked or disliked at the swipe of a hand.

Many new OSS are delivered to users who are already familiar with one or more OSS. If they’re not as pretty or as functional or as intuitive as what the users are accustomed to, then your OSS gets a swipe to the left. As we found out on that project (a ‘we’ that included all the client’s stakeholders and sponsors), first impressions can doom an otherwise successful OSS implementation.

Since then, I’ve invested a lot more time into change management. Change management that starts long before delivery and handover. Long before designs are locked in. Change management that starts with hearts and minds. And starts by involving the end users early in the change process. Getting them involved in the vision, even if not quite as elaborate as Rolls-Royce’s.

An OSS theatre of combat

Have you sat on both sides of the OSS procurement process? That is, been an OSS buyer (eg writing an RFP) and an OSS seller (eg responded to an RFP) on separate projects?

Have you noticed the amount of brain-power allocated to transferral of risk from both angles?

If you’re the buyer, you seek to transfer risk to the seller through clever RFP clauses.
If you’re the seller, you seek to transfer risk to the buyer through exclusions, risk margins, etc in your RFP response.

We openly collaborate on features during the RFP, contract formation, design and implementation phases. We’re open to finding the optimal technical solution throughout those phases.

But when it comes to risk, it’s bordering on passive-aggressive behaviour when you think about it. We’re also not so transparent or collaborative about risk in the pre-implementation phases. That increases the likelihood of combative risk / issue management during the implementation phase.

The trusting long-term relationship that both parties wish to foster starts off with a negative undercurrent.

The reality is that OSS projects carry significant risk. Both sides carry a large risk burden. It seems like we could be as collaborative on risks as we are on requirements and features.

Thoughts?

OSS transformation is hard. What can we learn from open source?

Have you noticed an increasing presence of open-source tools in your OSS recently? Have you also noticed that open-source is helping to trigger transformation? Have you thought about why that might be?

Some might rightly argue that it is the cost factor. You could also claim that they tend to help resolve specific, but common, problems. They’re smaller and modular.

I’d argue that the reason relates to our most recent two blog posts. They’re fast to install and they’re easy to run in parallel for comparison purposes.

If you’re designing an OSS can you introduce the same concepts? Your OSS might be for internal purposes or to sell to market. Either way, if you make it fast to build and easy to use, you have a greater chance of triggering transformation.

If you have a behemoth OSS to “sell,” transformation persuasion is harder. The customer needs to rally more resources (funds, people, time) just to compare with what they already have. If you have a behemoth on your hands, you need to try even harder to be faster, easier and more modular.

I have the need for OSS speed

You already know that speed is important for OSS users. They / we don’t want to wait for minutes for the OSS to respond to a simple query. That’s obvious right? The bleeding obvious.

But that’s not what today’s post is about. So then, what is it about?

Actually, it follows on from yesterday’s post about re-framing of OSS transformation.  If a parallel pilot OSS can be stood up in weeks then it helps persuasion. If the OSS is also fast for operators to learn, then it helps persuasion.  Why is that important? How can speed help with persuasion?

Put simply:

  • It takes x months of uncertainty out of the evaluators’ lives
  • It takes x months of parallel processing out of the evaluators’ lives
  • It also takes x months of task-switching out of the evaluators’ lives
  • Given x months of their lives back, customers will be more easily persuaded

It also helps with the parallel bake-off if your pilot OSS shows a speed improvement.

Whether we’re the buyer or seller in an OSS pilot, it’s incumbent upon us to increase speed.

You may ask how. Many ways, but I’d start with a mass-simplification exercise.

Re-framing an OSS replacement strategy

Friday’s post posed a re-framing exercise that asked you (whether customer, seller or integrator) to run a planning exercise as if you MUST offer a money-back guarantee on your OSS (whether internal or external). It’s designed to force a change in mindset from risk mitigation to risk removal.

We have another re-framing exercise for you today.

As we all know, incumbent OSS can be really difficult to replace / usurp. It becomes a massive exercise for a customer to change the status quo. And when you’re on the team that’s trying to instigate change (again whether you’re internal or external to the OSS customer organisation), you want to minimise the barriers to change.

The ideal replacement approach is to put a parallel pilot in place (which also bears some similarity with the strangler fig analogy). Unfortunately the pilot approach doesn’t get used as often as it could because pilot implementation projects tend to take months to stand up. This implies significant effort and cost, which in turn implies a major procurement event needs to occur.

If the parallel pilot could be stood-up in days or a couple of weeks, then it becomes a more useful replacement persuasion strategy.

So today’s re-framing exercise is to ask yourself what you could do to stand up a pilot version of your OSS in only days/weeks and at very little cost?

Let me add an extra twist to that exercise. When I say stand up the OSS in days/weeks, I also mean to hand over to the users, which means that it has to be intuitive enough for operators to begin using with almost no training. Don’t forget that the parallel solution is unlikely to have additional resources to operate it. It’s likely that the same workforce will need to operate incumbent and pilot, performing a comparison.

So, what you could do to stand up a pilot version of your OSS in only days/weeks, at very little cost and with almost immediate take-up by users?

What’s the one big factor holding back your OSS? And the exercise to reduce it

We’ve talked about some of the emotions we experience in the OSS industry earlier this week, the trauma of OSS and anxiety relating to OSS.

To avoid these types of miserable feelings, it’s human nature to seek to limit them. We over-analyse, we over-specify, we over-engineer, we over-document, we over-contract, we over-react, we over-estimate (nah, actually we almost never over-estimate do we?), we over-resource (well, actually, we don’t seem to do that very often either). Anyway, you get the “over” idea.

What is the one big factor that leads to all of these overs? What is the one big factor that makes our related costs and delivery times become overs too?

Have you guessed yet?

The answer is…… drum-roll please…… RISK.

Let’s face it. OSS projects are as full as a centipede’s sock drawer when it comes to risk. The customer carries risks, the supplier carries risk, the integrators carry risk, the sponsors carry risk, the end-users carry risk, the implementers carry risk. What a burden! And it is a burden that impacts in many ways, as indicated in the triple constraint of OSS projects.

Anyone who’s done more than a few OSS projects knows there are many risks and they tend to respond by going into over-mode (ie all the overs mentioned above). That’s a clever strategy. It’s called risk mitigation.

But today’s post isn’t about risk mitigation. It takes a contrarian approach. Let me explain.

Have you noticed how many companies build risk reduction techniques into their sales models? Phrases like “money-back guarantee” abound. This technique is designed to remove most of the risk for the customer and also remove the associated barrier to purchase. To be fair, it might not actually be a case of removing the risk, but directing all of the risk onto the seller. Marketers call it risk reversal.

I’m sure you’re thinking, “well that’s fine for high-volume, low-cost products like burgers or books, but not so easy for complex, customised solutions like OSS.” I hear you!

I’m not actually asking you to offer a money-back guarantee for your OSS, although Passionate About OSS does offer that all the way from our products through to our high-end consultancy services.

What I am asking you to do (whether customer, seller or integrator) is to run a planning exercise as if you MUST offer a money-back guarantee. What that forces is a change of mindset from risk mitigation to risk removal. It forces consideration of what are the myriad risks “in the system” (for customer, seller and integrator) and how can they be removed? Here are a few risk planning suggestions FWIW.

Set the following challenge for your analysts and engineers – Don’t come to me with a business case for the one-million-and-first feature to add, but prove your brilliance by showing me the business case for the risks you will remove. Risk reduction rather than feature-add or cost-out business cases.

Let me know what you discover and what your results are.

Identifying the fault-lines that trigger OSS churn

Most people slog through their days in a dark funk. They almost never get to do anything interesting or go to interesting places or meet interesting people. They are ignored by marketers who want them to buy their overpriced junk and be grateful for it. They feel disrespected, unappreciated and taken for granted. Nobody wants to take the time to listen to their fears, dreams, hopes and needs. And that’s your opening.
John Carlton
.

Whilst the quote above may relate to marketing, it also has parallels in the build and run phases of an OSS project. We talked about the trauma of OSS yesterday, where the OSS user feels so much trauma with their current OSS that they’re willing to go through the trauma of an OSS transformation. Clearly, a procurement event must be preceded by a significant trauma!

Sometimes that trauma has its roots in the technical, where the existing OSS just can’t do (or be made to do) the things that are most important to the OSS user. Or it can’t do it reliable, at scale, in time, cost effectively, without significant risk / change. That’s a big factor certainly.

However, the churn trigger appears to more often be a human one. The users feel disrespected, unappreciated and taken for granted. But here’s an interesting point that might surprise some users – the suppliers also often feel disrespected, unappreciated and taken for granted.

I have the privilege of working on both sides of the equation, often even as the intermediary between both sides. Where does the blame lie? Where do the fault-lines originate? The reasons are many and varied of course, but like a marriage breakup, it usually comes down to relationships.

Where the communication method is through hand-grenades being thrown over the fence (eg management by email and by contractual clauses), results are clearly going to follow a deteriorating arc. Yet many OSS relationships structurally start from a position of us and them – the fence is erected – from day one.

Coming from a technical background, it took me far too deep into my career to come to this significant realisation – the importance of relationships, not just the quest for technical perfection. The need to listen to both sides’ fears, dreams, hopes and needs.

Addressing the trauma of OSS

You also have to understand their level of trauma. Your product, service or information is selling a solution to someone who is in trauma. There are different levels, from someone who needs a nail to finish the swing set in their backyard to someone who just found out they have a life-threatening disease. All of your customers had something happen in their life, where the problem got to an unmanageable point that caused them to actively search for your solution.
A buying decision is an emotional decision
.”
John Carlton
.

My clients tend to fall into three (fairly logical) categories:

  1. They’re looking to buy an OSS
  2. They’re looking to sell an OSS
  3. They’re in the process of implementing an OSS

Category 3 clients tend to bring a very technical perspective to the task. Lists of requirements, architectures, designs, processes, training, etc.

Category 2 clients tend to also bring a technical perspective to the task. Lists of features, processes, standards, workflows, etc.

Category 1 clients also tend to break down the buying decision in a technical manner. List of requirements, evaluation criteria, ranking/weighting models, etc.

But what’s interesting about this is that category 1 is actually a very human initiative. It precedes the other two categories (ie it is the lead action). And category 1 clients tend to only reach this state of needing help due to a level of trauma. The buying decision is an emotional decision.

Nobody wants to go through an OSS replacement or the procurement event that precedes it. It’s also a traumatic experience for the many people involved. As much as I love being involved in these projects, I wouldn’t wish them on anyone.

I wonder whether taking the human perspective, actively putting ourselves in the position of understanding the trauma the buyer is experiencing, might change the way we approach all three categories above?

That is, taking less of a technical approach (although that’s still important of course), but more on addressing the trauma. As the first step, do you step back to understand what is the root-cause of your customer’s unique trauma?

Would an OSS duopoly be a good thing?

The products/vendors page here on PAOSS has a couple of hundred entries currently. We’re currently working on an extended list that will almost double the number on it. More news on that shortly.

The level of fragmentation fascinates me, but if I’m completely honest, it probably disappoints me too. It’s great that it’s providing the platform for a long-tail of innovation. It’s exciting that there’s so many niche opportunities that exist. But it disappoints me because there’s so much duplication. How many alarm / performance / inventory / etc management tools are there? Can you imagine how many developer hours have been duplicated on similar feature development between products? And because there are so many different patterns, it means the total number of integration variants across the industry is putting a huge integration tax on us all.

Compare this to the strength of duopoly markets such as:

  • Microsoft / Apple (PC operating systems)
  • Google / Apple (smartphone operating systems)
  • Boeing / Airbus (commercial aircraft)
  • Visa / Mastercard (credit cards / payments)
  • Coca Cola / Pepsi (beverages, etc)

These duopolies have allowed for consolidation of expertise, effort, revenues/profits, etc. Most also provide a platform upon which smaller organisations / suppliers can innovate without having to re-invent everything (eg applications build upon operating systems, parts for aircraft, etc).

Buuuut……

Then I think about the impediments to achieving drastic consolidation through mergers and acquisitions (M&A) in the OSS industry.

There are opportunities to find complementary product alignment because no supplier services the entire OSS estate (where I’m using TM Forum’s TAM as a guide to the breadth of the OSS estate). However, it would be much harder to approach duopoly in OSS for a number of reasons:

  • Almost every OSS implementation is unique. Even if some of the products start out in common, they usually become quickly customised in terms of integrations, configurations, processes, etc
  • Interfaces to networks and other systems can vary so much. Modern EMS / devices / systems are becoming a little more consistent with IP, SNMP, Web APIs, etc. However, our networks still tend to have a lot of legacy protocols to interface with our networks
  • Consolidation of product lines becomes much harder, partly because of the integrations above, but partly because the functionality-sets and workflows differ so vastly between similar products (eg inventory management tools)
  • Similarly, architectures and build platforms (eg programming languages) are not easily compatible
  • Implementations are often regional for a variety of reasons – regulatory, local partnerships / relationships, language, corporate culture, etc
  • Customers can be very change-averse, even when they’re instigating the change

By contrast, we regularly hear of Coca Cola buying up new brands. It’s relatively easy for Coke to add a new product line/s without having much impact on existing lines.

We also hear about Google’s acquisitions, adding complementary products into its product line or simple for the purpose of acquiring new talent / expertise. There’s also acquisitions for the purpose of removing competitors or buying into customer bases.

Harder in all cases in the OSS industry.

Tomorrow we’ll share a story about an M&A attempting to buy into a customer base.

Then on Thursday, a story awaits on a possibly disruptive strategy towards consolidation in OSS.

Think for a moment…

Many of the most important new companies, including Google, Facebook, Amazon, Netflix, Snapchat, Uber, Airbnb and more are winning not by giving good-enough solutions…, but rather by delivering a superior experience….”
Ben Thompson
, stratechery.com

Think for a moment about the millions of developer hours that have gone into creating today’s OSS tools. Think also for a moment about how many of those tools are really clunky to use, install, configure, administer. How many OSS tools have truck-loads of functionality baked in that is just distracting, features that you’re never going to need or use? Conversely, how many are intuitive enough for a high-school student, let’s say, to use for the first time and become effective within a day of self-driven learning?

Let’s say an OSS came along that had all of the most important features (the ones customers really pay for, not the flashy, nice-to-have features) and offered a vastly superior user experience and user interface. Let’s say it took the market by storm.

With software and cloud delivery, it becomes harder to sustain differentiation. Innovative features and services are readily copied. But have a think about how hard it would be for the incumbent OSS to pick apart the complexity of their code, developed across those millions of developer hours, and throw swathes of it away – overhauling in an attempt to match a truly superior OSS experience.

Can you see why I’m bemused that we’re not replacing developers with more UX experts? We can surely create more differentiation through vastly improved experience than we can in creating new functionality (almost all of the most important functionality has already been developed and we’re now investing developer time on the periphery).

Nobody dabbles at dentistry

There are some jobs that are only done by accredited professionals.
And then there are most jobs, jobs that some people do for fun, now and then, perhaps in front of the bathroom mirror.
It’s difficult to find your footing when you’re a logo designer, a comedian or a project manager. Because these are gigs that many people think they can do, at least a little bit.”
Seth Godin here.

I’d love to plagiarise the entire post from Seth above, but instead suggest you have a look at the other pearls of wisdom he shares in the link above.

So where does OSS fit in Seth’s thought model? Well, you don’t need an accreditation like a dentist does. Most of the best I’ve met haven’t had any OSS certifications to speak of.

Does the layperson think they can do an OSS role? Most people have never heard of OSS, so I doubt they would believe they could do a role as readily as they could see themselves being logo designers. But the best I’ve met have often come from fields other than telco / IT / network-ops.

One of my earliest OSS projects was for a new carrier in a country that had just deregulated. They were the second fixed-line carrier in this country and tried to poach staff from the incumbent. Few people crossed over. To overcome this lack of experience, the carrier built an OSS team that consisted of a mathematician, an architect, an automotive engineer, a really canny project manager and an assortment of other non-telco professionals.

The executives of that company clearly felt they could develop a team of experts (or just had no choice but to try). The strategy didn’t work out very well for them. It didn’t work out very well for us either. We were constantly trying to bring their team up to speed on the fundamentals in order to use the tools we were developing / delivering (remembering that as one of my first OSS projects, I was still desperately trying to bring myself up to speed – still am for that matter).

As Seth also states, “If you’re doing one of these non-dentist jobs, the best approach is to be extraordinarily good at it. So much better than an amateur that there’s really no room for discussion.” That needs hunger (a hungriness to learn without an accredited syllabus).

It also needs humility though. Even the most extraordinarily good OSS proponents barely scratch the surface of all there is to learn about OSS. It’s the breadth of sub-expertise that probably explains why there is no single accreditation that covers all of OSS.

The bird’s wings analogy for OSS RFPs

A bird sitting on a tree is never afraid of the branch breaking, because her trust is not on the branch but on it’s own wings.”
Unknown.

Last month, we posted a series entitled “How to kill the RFP.” The RFP is a common mechanism for reaching a purchasing agreement between OSS provider and network operator. Unfortunately, it’s deemed to be a non-ideal approach by many buyers and sellers alike. One of the key concepts discussed was trust. In the context of the quote above, the branch is the contract formed out of the RFP (Request for Proposal) and the bird’s wings represent the partnership being formed.

We (and our procurement teams) spend a lot of time in the formation of the contract. We want to fortify the branch to ensure it never breaks. We build massive scaffolding around it. But just like the bird analogy, the initial contract is just a starting point. The bird may wish to come back to the branch / contract from time to time. However, over the (hopefully) 10+ year lifespan of the OSS, the contract will never be able to accommodate all possible eventualities (flight paths).

Focus on building trust in the wings (the relationship) and have faith they will overcome any frailties that appear in the branch (the contract) in the long run.

There may be breaches of trust from either / both sides during the lifespan of the relationship. But the end-game should be really clear – an early OSS churn is a bad outcome for both supplier and customer.

OSS come in all shapes and sizes

As the OSS vendors / suppliers page here on PAOSS shows, there are a LOT of different OSS options, making it an extremely fragmented market. But there’s something of a reason for that fragmentation – customer requirements for OSS come in all shapes and sizes. Here are four of the major categories that I’ve been lucky enough to work on.

Tier 1 telcos – the OSS of these organisations tend to be best classified as having to cope with scale. Scale comes in multiple dimensions. The number of network devices under management tend to be large, as do the types of device. The number of subscribers and customer services tend to be large, not to mention having large amounts of change occurring on a daily basis. The number of process variants and system integrations also tend to be large. And being at scale means that they’re more likely to be able to justify the cost of customisations and automations – either to off-the-shelf products or via purpose-built tools. Budgets, both CAPEX and OPEX, also tend to be large. Except where niche slices of the total OSS suite are being delivered, the vendors that service this market are also large in terms of revenues, but also in their number of services staff available to service the customer’s unique needs. In the case of the telco, the business (and revenue model) is built around the network so it gets the clear attention of the organisation’s executives.

Enterprise customers – these OSS tend to be at the other end of the spectrum, even when the enterprise is large (eg banks). Networks tend to be more homogeneous, being IT/IP-centric. Services tend to be less customer-specific (ie for journaling costs at a business unit level rather than individual subscribers) but follow ITSM process models, so the service management daily delta is not at the same scale as the Tier 1 telco. For enterprise customers, the network is rarely core business, even if it is mission-critical to the business. As such, attention and budgets tend to be much smaller. In turn, this means that the smaller, self-service or open-source OSS products / suppliers tend to be present in this segment.

Then there are two categories of organisation that fit between the two previous ends of the spectrum:

Tier 2/3 telcos, MVNOs and data centres – Similar to the Tier-1 telco, just not at the same scale, which has implications on the nature of their OSS. They generally need all the same types of OSS tools as the T1s, just not catering for the same number of variants. Due to cost constraints, there may be one or a few significant OSS building blocks such as inventory, assurance or orchestration, but often there will also be enterprise-grade and/or open-source products in their OSS stack. CAPEX and OPEX budgets are smaller, so clever jack-of-all-trades OSS experts are often on the operational teams delivering sophisticated solutions on shoe-string budgets. Some of the best OSS experts I’ve come across can trace their roots back to these origins.

Utilities – the OSS of these organisations are a fascinating mix of the first two categories above because enterprise-grade OSS often aren’t really fit-for-purpose and carrier-grade OSS doesn’t quite suit either. Except in the case of multi-utilities (eg power + telco), these organisations tend to have very little service management change, mainly because they tend to have few to no external customers. This makes them similar to enterprise OSS. But like telcos, they often have networks that are more varied than your typical IT/IP-centric networks under management in enterprise-land. They often have less common network topologies and protocols, including older and even proprietary models that enterprise-grade OSS rarely support without expensive mediation. Just like the enterprise, the telco network (and hence the OSS) of a utility is not core business and can’t be justified through driving incremental revenues. However, it is generally mission-critical to the core business (eg tele-protection circuits are in place to ensure resilience of the electricity supply across the power network). As such, telco Network health / reliability and asset management tend to be the main focus of these OSS. And whereas telcos can delegate some responsibility for network security to their customers (using the dumb-pipe excuse), utilities bear full responsibility for the security of their telco networks and the critical infrastructure that these networks and OSS tools support.

These are only broadly general categories and there are more than 50 shades of grey in between. Are there any other broad categories that you feel I’m missing?

What to read from a simple little OSS job advertisement from AWS

Not sure if you noticed, but AWS posted this job advertisement on LinkedIn a couple of days ago – Business Portfolio Leader – Telecom OSS/BSS Solutions.

The advertisement includes the following text:
Amazon Web Services (AWS) is leading the next paradigm shift in computing and is looking for a world class candidate to manage an elite portfolio of strategic AWS technology partners focused on the Operation support System (OSS) and Business Support System (BSS) applications within telecommunications segment. Your job will be to use these strategic partners to develop OSS and BSS applications on AWS infrastructure and platform.”

How do you read this advertisement? I have a few different perspectives to pose to you:

I can’t predict AWS’ future success with this initiative, but I’m assuming they’re creating the role because they see a big opportunity that they wish to capture. They have plenty of places they could otherwise invest, so they must believe the opportunity is big (eg the industry of OSS suppliers selling to CSPs is worth multi-billions of dollars and is waiting to be disrupted).

OSS/BSS are typically seen by CSPs as a very expensive (and risky) cost of doing business. I’m certain there’s a business model for any organisation (possibly AWS and its tech partners) that can significantly improve the OSS/BSS delivery costs/risks for CSPs.

The ad identifies CSPs (specifically the term, “major telecom infrastructure providers”) as the target customer. You could pose the concept that the CSPs won’t want to support a competitor in AWS. The CSPs I’m dealing with can’t get close to matching AWS cost structures so are partnering with AWS etc. Not just for private cloud, but also public and hybrid cloud too. The clip-the-ticket / partnership selling model appears to be becoming more common for telcos globally, so the fear-of-competition barrier “seems” to be coming down a little.

The other big challenge facing the role is network and data security. What’s surprised me most are core network services like directory services (used for internal authentication/AAA purposes). I never thought I’d see these outsourced to third-party cloud providers, but have seen the beginnings of it recently. If CSPs consume those, then OSS/BSS must be up for grabs at some CSPs too. For example, I’d imagine that OSS/BSS tools were amongst the 1,000 business apps that Verizon is moving to AWS.

The really interesting future consideration could be the advanced innovation that AWS et al could bring to the OSS space, and in ways that the telcos and OSS suppliers simply can’t. This recent post showed Google’s intent to bring AI to network operations. It could revolutionise the OSS/BSS industry. Not just for CSPs, but for their customers as well (eg their enterprise-grade OSS). Could it even represent another small step towards the OSS Doomsday Scenario posed here?

And just who are the “strategic partners” that AWS is referring to? I assume this old link might give at least one clue.

I’m certainly no Nostradamus, so I’d love to get your opinions on what ramifications this strategic hire will have on the OSS/BSS industry we know today.

How to kill the OSS RFP (part 3)

As the title suggests, this is the third in a series of articles spawned by TM Forum’s initiative to investigate better procurement practices than using RFI / RFP processes.

There’s no doubt the RFI / RFP / contract model can be costly and time-consuming. To be honest, I feel the RFI / RFP process can be a reasonably good way of evaluating and identifying a new supplier / partner. I say “can be” because I’ve seen some really inefficient ones too. I’ve definitely refined and improved my vendor procurement methodology significantly over the years.

I feel it’s not so much the RFI / RFP that needs killing (significant disruption maybe), but its natural extension, the contract development and closure phase that can be significantly improved.

As mentioned in the previous two parts of this series (part 1 and part 2), the main stumbling block is human nature, specifically trust.

Have you ever been involved in the contract phase of a large OSS procurement event? How many pages did the contract end up being? Well over a hundred? How long did it take to reach agreement on all the requirements and clauses in that document?

I’d like to introduce the concept of a Minimum Viable Contract (MVC) here. An MVC doesn’t need most of the content that appears in a typical contract. It doesn’t attempt to predict every possible eventuality during the many years the OSS will survive for. Instead it focuses on intent and the formation of a trusting partnership.

I once led a large, multi-organisation bid response. Our response had dozens of contributors, many person-months of effort expended, included hundreds of pages of methodology and other content. It conformed with the RFP conditions. It seemed justified on a bid that exceeded $250M. We came second on that bid.

The winning bidder responded with a single page that included intent and fixed price amount. Their bid didn’t conform to RFP requests. Whereas we’d sought to engender trust through content, they’d engendered trust through relationships (in a part of the world where we couldn’t match the winning bidder’s relationships). The winning bidder’s response was far easier for the customer to evaluate than ours. Undoubtedly their MVC was easier and faster to gain agreement on.

An MVC is definitely a more risky approach for a customer to initiate when entering into a strategically significant partnership. But just like the sports-star transfer comparison in part 2, it starts from a position of trust and seeks to build a trusted partnership in return.

This is a highly contrarian view. What are your thoughts? Would you ever consider entering into an MVC on a big OSS procurement event?