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Digital Maturity ModelAchieving digital maturity to drive growthFebruary 20181

Digital game changerForces driving changeWhat is the DMM?Why you need it and where we’re differentSetting your digital ambitionNo one size fits allDelivering digital transformationWhere we can help you to succeedDMM endorsementsAlready making an impact in the industryContactsFurther information

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This is the digital ageEverything about business is transformingBefore you can know where to go, you need tounderstand where you areWe call that digital maturity

SOME OF THE MARKET FORCESREQUIRING COMPANIES TO ADAPT:A number of market forces are driving theneed to become digital. Still, manyEmergence of Ecosystems: New ecosystemsaccessible through digital channels reduceswitching costsReduced Ownership of Assets &Infrastructure: Growth of data is accelerating,and is forcing issues around ownership,privacy, security, transparency, and trustReduced Barriers to Digital Entry: Lowbarriers to digital entry blur industry linesDecoupled Value Chains: Increased speed,velocity, transparency and accessdisaggregate value chainscompanies are just embarking oncomplex digital transformation journeysencompassing all aspects of theirbusiness to redefine how they operate.New Entrants: Businesses are reachingfarther and disaggregating business offeringsinvading new spaces

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Deloitte and the TM forum have partnered to bring together deep industry knowledge and develop the first industry-standard digital maturity assessment toolDeveloped by Deloitte in partnership with the TM ForumOrangeTataCommunicationsPCCW GlobalChinaUnicomBearingPointWith key contributions from otherindustry and subject matter expertsHuaweiDeteconConsultingChina MobileReviewed by a broadspectrum of globaltelco businessesMicrosoftVodafone NokiaAT&T AxiataEtisalat BTTelkomChinaAmdocsNTT Group TelefonicaIndonesiaTelecom

One of the things holding the communications industry back from broader progress in digital transformation is the lack of a clear, industry-oriented roadmap. TheDigital Maturity Model is an effective tool to provide guidelines for a clear path throughout the transformation journey.Several other digital maturitymodels exist but with varyingscopes, points of view, and metricsfor measuring success.Using the Digital Maturity Model willempower businesses through everystep of their transformationjourney.The Deloitte-TM Forum model is It enables business leaders to The first industry-standarddigital maturity assessment tool The first pan-organisationaldigital model, covering 5 corebusiness dimensions The first to benchmark againstpeers and measure progressDigitalMaturityModel Assess where they are in theirtransformation journey Create goals and plans, bothshort and longer term Make impactful transformationproject investments

The DMM evaluates digital capability across 5 clearly defined business dimensions to create a holistic view of digital maturity across the ganisation &CultureProviding an experiencewhere customers viewthe organization as theirdigital partner using theirpreferred channels ofinteraction to controltheir connected futureon and offlineFocuses on how thebusiness transforms oroperates to increase itscompetitive advantagethrough digital initiatives;it is embedded within theoverall business strategyUnderpins the success ofdigital strategy byhelping to create,process, store, secureand exchange data tomeet the needs ofcustomers at low costand low overheadsExecuting and evolvingprocesses and tasks byutilizing digitaltechnologies to drivestrategic managementand enhance businessefficiency andeffectivenessDefining and developingan organizational culturewith governance andtalent processes tosupport progress alongthe digital maturity curve,and the flexibly toachieve growth andinnovation objectives The DMM takes a pan-organisation snapshot of the as-is digital capability of an organisation at the outset The DMM removes the ambiguity that can result from using multiple digital assessment tools and provides a firm basis from which to set apath to reach the desired outcomes simultaneously across the business

The 5 core dimensions are divided into 28 sub-dimensions, which in turn breakdown into 179 individual criteria on which digital maturity is assessed28 Organisation onsAgile ManagementConnectedThingsAutomated ResourceManagementLeadership &GovernanceCustomer Insights &BehaviourFinance &InvestmentData &AnalyticsIntegrated ServiceManagementOrganisational Design& Talent ManagementCustomer Trust &PerceptionMarket &CustomerDeliveryGovernanceReal-time Insights &AnalyticsWorkforceEnablementPortfolio, Ideation &InnovationNetworkSmart and AdaptiveProcess ManagementStakeholderManagementSecurityStandards & rchitecture179 digital criteria

We understand that digital transformation is a journey involving a complexecosystem of capabilities. The DMM can be used in each phase oftransformation to help identify where there are gaps, establish key areas tofocus on, and where to start.It does not replace an overarching transformation framework, but is meantto serve as a guide and tool to be referred to throughout the process.

ImagineDeliverRunWhat are the company’sWhat was imagined takesImplementation movesambitions? How can it driveshape and is tested for validity.forward. Benefits begin to bestrategic advantage? Use theConcepts are refined and arealized at scale and theDMM to explore opportunitiesplan is set for future operatingorganisation is prepared forand set a vision for the futuremodels to drive to scalecontinuous learningHow the DMM is used along the digital transformation journeyDMMDMMDMMAssess current state digitalPrioritize capabilities to enhanceMeasure the value and impactmaturitybased on business objectivesof initiatives to digital maturityIdentify the opportunities andAssess impact to digital maturityEvaluate process improvementdefine visionof the initiatives on roadmapand effectiveness

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What is myBusinessStrategyThe content of the Digital MaturityModel is constant, but the level toyour own business strategy, businessmodel, and operating model.Any organisation needs to start byconsidering these components in atop-down approach and refer tothem alongside the DMM surveyresults.business?How will I configure the businessBusinessModelwhich an organisation needs to bemature in each area is dependent onWhat is my overall focus for theOperatingModelto enable to overall businessstrategy?What are the capabilities we need toexecute against our businessstrategy and business model?Digital CapabilitiesBased on strategy, business model, and operating model What are the target maturity levels and priorities across the dimensions?What are the broader business changes that need to be considered inplanning digital transformation?

The Digital Maturity Model provides a view across all capabilities, helping you to prioritize focus areas and improve in line with your overarching digital ambitionsTarget digital capabilitiesand maturity levels dependon the value created andthe results that areimportant to you.Use these businesspriorities in parallel to theDMM survey results todrive action and initiatedigital transformation inyour rganization& CultureFor example: If you’re your business Then it will be more important to focus on having amodel is highly dependent onmature platform-based infrastructure to facilitate anpartners to deliver open ecosystem with go-to-market partners

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The Digital Maturity Model provides a view across all capabilities, helping you to prioritize focus areas and improve in line with your desired outcomeOnce you have identifiedImagineDeliverRunyour level of maturity andexisting gaps, our digitalofferings can help youadapt, compete and win.We can help you defineand reach your goals, andbring them to marketquickly.DEFINE STRATEGYCREATE EXPERIENCESBUILD PLATFORMSDevelop and align on enterprisedigital direction including brand,growth, customer experienceand product strategyArchitect and deliver omnichannel, mobile and IOTexperience and solution designEnable digital capabilities withomni-channel and commerceplatforms, including data securityand cloud integrationIGNITE INNOVATIONREINVENT THE CORESECURE CYBERDefine ideation and creativestrategy processes to embedinnovative thinkingRedefine core businesscapabilities and processes tooptimize for digitalDeliver data protection, ID andasset management forensicssolutionsDERIVE INSIGHTSLEAD THE CHANGESUSTAIN AND OPTIMIZEPerform market, customer andcompetitive analysis to supportthe direction of the digitalenterpriseDrive change in the DNA of thebusiness, including evolving theorganizational designSupport deployment oforganisation change and platformsto drive value realization andsustained business agility

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TM Forum members that have already endorsed the DMM and recognise the potential it has to support digital transformation across the telco industryVodafone“Vodafone see great value in the work being done through TM Forum on Digital Transformation. The Digital Maturity Modeland Metrics builds on the common vocabulary already provided through Frameworx and we see it as a valuable resourceto guide member companies through this Digital Transformation.Lester Thomas, Chief IT Systems Architect, VodafoneBT“Using the collaborative power of the TM Forum, and working with a number of our fellow members, BT has helpeddevelop an industry standard Digital Maturity Model. This model enables organisations to assess their current digitalcapability and identify areas where they have deficiencies that will enable them to prepare for their own digitaltransformation journey.”George Glass, Chief Systems Architect, BTChinaUnicom“China Unicom has been on the way of digital translation in the areas of network, business, services, IT Architecture,Culture and HR in the recent years. Along with the era of 5G and IoT, China Unicom will accelerate its transformationjourney to support Digital Operation Transformation. We are happy to see TM Forum, as leading industry association,proposing DMM based on long-term collaboration with industry players and believe DMM will provide the benchmarkingguidance for the industry and help the industry transformation. We will continue to work with TM Forum closely on DMMand contribute to the industry together.”Liu Haizhou, Director of IT Planning Division, IT Department, China Unicom GroupChinaMobile“The digital transformation of the industry is already coming. The TM Forum's Digital Maturity Model will be very helpful totell the CSP where we are and how we are on this way. Then we can make right decision and right measures on our wayforward.”Wang Ye, Deputy Director, Network Management Support Division, Networks Department, China Mobile Group Corporation

TM Forum members that have already endorsed the DMM and recognise the potential it has to support digital transformation across the telco industryAmdocs“TMForum's digital maturity model provides a comprehensive self-examination tool that serves as a roadmap for CSPsgoing digital. Over the past year, we've helped CSPs evolve into DSPs realizing the full potential of their digitaltransformations. It is clear that CSPs can follow more than one path towards digital maturity as each business hasdifferent strengths and needs. The first step towards finding the best path forward is for CSPs to determine their place onthe digital maturity scale using TMForum's model.”Gary Miles, Chief Marketing Officer at AmdocsBearingPoint“We are delighted to contribute to TM Forum's Digital Maturity Model. As a digital transformation tool, it provides a segueinto broader business model innovation, which is the only way for companies to survive and thrive in the digital economy".Angus Ward, Partner BearingPoint.Huawei“Through industry collaboration across the globe, the TM Forum has delivered an open, impartial and authoritativeindustry standard Digital Maturity Model. Huawei looks forward to using it to accelerate digital transformation of ourcustomers, and enhance Huawei product development strategies’Lee Yee, VP Carrier Business Group, Software Marketing and Solution SalesGC IndexFor organisations to be successful in their Digital Transformation they need a framework and language for their peoplethat is simple, effective, and outcome driven. It needs to be scaleable, reliable and adaptable but most importantly it needsto align everybody to make an impact on the Digital Transformation Journey. That framework is The Digital Maturity Model,the language is The GC Index .Nathan Ott CEO - The GC Index

TM Forum members that have already endorsed the DMM and recognise the potential it has to support digital transformation across the telco industry“Companies will find the Digital Maturity Model to be an extremely helpful tool to evaluate their current level of digitalefficacy and create a clear roadmap for next steps on their unique digital transformation journey.”Tim Greulich, Senior Manager, Deloitte DigitalDeteconConsulting“We now have an industry standard TM Forum Digital Maturity Model built from a wealth of know-how and expertise fromthe communications industry. TM Forum Digital Maturity Model is a great way of uncovering of what is important fororganizations to consider on planning for their own digital journeys, helping them benchmark where they sit in their digitaljourney across its organization and articulating the way forward with a common language across all stakeholder groups.We’ve been very much involved in helping to create it and we expect to continue to work closely with TM Forum to drivethe evolution of the Digital Maturity Mo