For many years KPN has been the leading telecommunications provider in the Netherlands , but the world of telecommunications is rapidly changing . So KPN felt the urge to transform their business operation model , replacing a siloed product orientation with a customer-centric approach .

Working closely with technology partner Oracle , KPN implemented an innovative simplification program that enhanced customer experience and simultaneously reduced cost . This program , initiated in 2013 , won the ‘ Business Transformation of the Year Award ’ at the TM Forum Digital World Awards 2016 .

Bouke Hoving , Executive Vice President Simplification & Innovation and Chief Information Officer at KPN , speaks with Michel van Woudenberg , Vice President Customer Experience EMEA at Oracle , about the need for change and how to gain a competitive advantage through business transformation .

Michel van Woudenberg , Vice President Customer Experience EMEA , Oracle

Bouke Hoving , EVP KPN

WHY DID KPN EMBARK ON A JOURNEY TO FUNDAMENTALLY TRANSFORM THE WHOLE ORGANISATION ?

B : We had no other choice . In order to keep our leading position we had to make a bold move .

M : All aspects of the business are changing . It all starts with consumer expectations . Consumers are demanding the highest levels of engagement with 24 / 7 availability and they are ready to give immediate feedback if they are not getting it – sharing their experience through social media with a broad audience .

These consumers are also employees , which means that employee expectations have also changed . However , unlike 10 years ago the technology used in corporate organisations is less sophisticated than in the private environment .

This creates tension . Especially with millennials , who demand access to information anywhere , anytime . This requires more than a quick technology upgrade . It requires a fundamental re-alignment of all business functions . There is an Airbnb or Uber for every line of business challenging the status quo and transforming business models .

“ Innovation attacks incumbents where the greatest sources of customer friction meet the largest profit pools .” Michel van Woudenberg , VP Oracle

B : As a company we do not only have to respond to these demands , but we have to be disruptive ourselves as well . We replaced our siloed product orientation with a customer centric approach . That is what we achieved with the simplification program .

WHEN IT COMES TO TRANSFORMATION , SIZE IS NOT AN ADVANTAGE . WHAT IS YOUR ADVICE TO LARGE ORGANISATIONS THAT NEED TO TRANSFORM RAPIDLY ?

M : Let me first acknowledge that it is not easy for an organization that has been around for a long time . Every person that operates in a silo can perfectly explain why his job should be carried out exactly the way he is doing it . So change needs to come from the top . But not in a classic top-down fashion . My advice is to create an environment where people can experiment . You try something and if you fail you apply the lessons learned in your next attempt . Move quickly . This is where modern technology helps to accelerate the business . Companies no longer need to invest millions of euros before they can see the benefits . Our goal was to provide KPN with capabilities from the cloud that they could try out first before rolling them out .

B : Being a status quo company , the ambition of becoming the best service provider of the Netherlands meant that we had to shift our business model from product orientation to customer focus . Ultimately we have transformed all our processes and systems . We have solved fragmentation by putting the customer first and we have simplified the customer journey by applying smart technology .

“ We need to take this whole organization along on a journey and organize ourselves around the customer rather than around the product . Because if we don ’ t than another provider will do so .” Bouke Hoving , EVP KPN

M : Successful companies are able to put speed above perfection . In the current world you cannot know where you want to be in five years time . So let ’ s spend 80 % of our time and energy where we want to be next year and 20 % where we want to be in the next three years , because the world is changing fast .

BOUKE , WHAT WOULD YOUR ADVICE BE FOR LARGER COMPANIES TO GAIN SPEED ?

B : Look at transformation as a journey . First focus on getting the basics right , making the customer centricity the core of your operations . Then start with additional functions to make things more customer friendly , quicker and more digital . For us the journey is not over yet . We are in a positive flow .

MICHEL , WHAT IS THE MAGIC ?

M : It is a bit of magic and a lot of hard work . Oracle ’ s vision is to bring to our customers a platform around customer experience , which gives them the ability to operationalize end-to-end key business processes , from lead to invoice . With such agility they can operationalize their new business models .

The magic is in the cooperation between the visionary client and the inspirational technology service provider . The leadership of KPN was deeply involved in the transformation . This inspired the whole organisation and turned the transformation into a success for us all .

For further information please visit oracle . com / cx