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Claro: A digital transformation of a giant enterprise
Claro: A digital transformation of a giant enterprise We speak to Cesar Augusto Dos Santos, Director of IT and CIO of giant Brazilian Communication Service Provider Claro, regarding its digital transformation at scale, as the company enters an exciting new phase of its evolution… Written by
Andrew Woods
Produced by
Craig Daniels
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A
ll major Communication Service Providers (CSPs) are undergoing unprecedented
transformation. With a constantly evolving technological scenario and customer expectations for an increasingly connected and disruptive world, Claro Brazil has been working hard to improve the experience and engagement in all its channels in a truly customer-oriented experience. Currently, there is no longer a notion of Information Technology that is only concerned with reducing cost and efficiency or availability of its systems. It is necessary for modern enterprises to innovate and modernize their platforms as well as implementing more connected and collaborative operational models with the entire ecosystem and its stakeholders. The impact of technology on organizations is currently the driving force for business transformation, contributing to the acceleration or disruption of business, thus creating new revenues and
digital first, Claro offers integrated solu-
products for a transformational journey.
tions for connectivity, entertainment,
As a leader in telecommunications
productivity and digital services in a truly
in Latin America and one of the largest
convergent way, joining fixed and mobile
multiservice operators in Brazil, Claro
platforms, thus firmly establishing itself as
Brazil is present in over 2,000 Brazilian
a leader in Pay-TV and broadband while
cities with its networks providing services
being the fastest growing operator in
to over 96% of the population. As the
mobile services, offering 5G connectivity
world continues to become increasingly
with Dynamic Spectrum Sharing (DSS).
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Innovation is key for Claro Brazil and in
technology area in the years that
2017, the company decided to put Cesar
preceded his management, due to the
Santos at the forefront of Information
integration of Claro, Net, and Embratel,
Technology. Along with over 25 years of
which today is Claro Brazil, the chal-
experience in Information Technology
lenge was duly launched. “What bothered
and 20 years working in telecom at Claro
me most was that the technology area
in Brazil, Cesar was handed the challenge
could go beyond cost control manage-
of transforming the technology area.
ment and systems availability, to a value-
With so many changes in the
added and customer-centric positioning, www.theinterface.net
5
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and with collaboration between stake-
services. It is a new operational model
holders throughout the organization,”
that crosses the entire organization.”
he told us from his Sao Paulo office.
Claro’s digital transformation journey
“We wanted to build a new architecture
started in 2018 with an ambitious and
and a sustainable operational model to
transformational Enterprise Architecture,
drive the digital transformation. At the
with a cloud platform-oriented, data-
end of the day, digital transformation
driven mindset, API-First approach that
is not just about technology, it’s about
challenged a decoupling of its legacy
the culture, people and mindset.”
system. “We introduced new digital BSS/ OSS platforms that allow us to improve
The transformation journey
not only revenue and market share, but
Transformation at scale, at a large
also new services to our customers,”
company like Claro, is not easy.
Cesar explains. When Claro started
According to Cesar, if Claro was a
this agile transformation five years ago,
startup, its challenges would be very
it was, according to Cesar, not a very
different. “Although a startup’s mindset
well-structured program, prompting
is needed to push some digital initia-
the introduction of a scaled process.
tives, and we are following this path, we
“We started from the CEO down, a very
also need to consolidate and maintain
well-structured program and last year,
the availability of our current platforms
we started Going Digital, which is a prod-
as we transform Claro’s business.”
uct-oriented process. They’re look-
Many network-based communications service providers are now
ing for the value-added services that we can provide to our customers.”
several years into their agile journeys,
Another big challenge was to change
but most have not yet achieved scale.
people’s mindsets and to implement an
CIOs leading enterprise agile adoption
enterprise agile culture by adopting a
need to address resistance associated
product mindset, promoting collabora-
with culture, processes, and a lack of
tion and trust, while coaching people
transparency. “In fact, these are chal-
through the change; an exercise that
lenges that we face on a daily basis,” he
requires discipline. “We know that
says, “and at the moment we are look-
Amazon, Spotify and Netflix have been
ing to scale our transformation jour-
using this methodology for at least for
ney with a view of product-oriented
10 years now, and we believe that we
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“ They understand that we must pivot IT from an operational department to a business partner, value-added and customer-centric positioning mindset” — C e s a r Au gu sto Dos Sa ntos D i re c tor of I T and CIO, Claro Brazil
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could have, as an enterprise company
Sourcing program with procurement in
or enterprise big tech company, this way
order to select real trusted vendors to
of working to launch new products.”
keep an eye on relationships and cost
One of the outcomes of the trans-
efficiency. “We’ve developed our roadmap
formation was the creation of a multi-
management in terms of how we stra-
year program: a Strategic Plan based
tegically make changes in a flexible and
on six pillars: Operational Excellence,
agile way, based on market conditions
Cost Efficiency, System Consolidation,
and business needs,” Cesar explains.
IT Modernization, Research and
In a year when the COVID-19 pandemic
Innovation, and New Agile Operational
caused an unprecedented crisis, 2020
Model. “To keep the core business
was a challenge that Claro Brazil success-
running we selected some traditional
fully overcame as it released brand new
pillars as Operational Excellence, Cost
services enabling a new e-commerce
Efficiency and System Consolidation,”
platform for the B2C segment, an API
Cesar reveals, adding, “but using a key
Management that enabled them to decou-
approach to speed up the transfor-
ple the Core and launch new services
mation with these three new pillars: IT
on digital channels, a complete ecosys-
Modernization, Research and Innovation,
tem for sales and customer service, new
and New Agile Operational Model. With
services for the B2B segment explor-
that approach, we started enabling
ing its monetization data with Microsoft
some new platforms in a cloud-based,
Azure Analytics components, and broad
API-first approach along with micro-ser-
implementation of collaborative compo-
vices to speed up new products.”
nents based on Azure. These are just some of the goals Cesar and his team
Trusted partners
achieved in 2019 and 2020. “Another
Another important aspect to developing
important aspect of the transformation
a digital transformation, especially in an
is a Data and Analytics Strategy, and we
enterprise as large as Claro Brazil, is the
have a dozen Tier 1 and Tier 2 partners
successful selection of reliable partners
and vendors helping us during this digital
who bring the experience of dozens of
transformation. Another trusted partner
similar sizable projects to enable speed
is helping us in that journey is SAS with
and assertiveness to the journey. For
its Analytics platforms across the multi-
instance, Claro developed a Strategic
ple use cases we have implemented.” www.theinterface.net
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Right people on the bus
at the vendors and business partners
Cesar and his team performed an impor-
to ensure Claro was partnering with
tant part of this transformation through
the right strategy, program roadmap
the building of the strategic plan and
and truly best-in-class organizations.
the pillars of the transformation that
“As a leader we must encourage the
closely aligned to the corporate stra-
teams to perform the best results they
tegic plan. “They understand that we
can, but I never said: ‘I am the Boss!’ The
must pivot IT from an operational depart-
most important thing to keep in mind
ment to a business partner, with a value-
is that you need to be side by side with
added and customer-centric mind-
your team and do it together. Leaving
set,” he reveals. With that in mind and
barking orders and guidelines will only
the right talent and leaders in position,
take you away from your team and help
Cesar shifted his focus to look closely
everyone lose. The way is always to listen
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to your employees’ dialogue and build
whenever necessary, adapt processes
together the best solutions. As a leader,
so that its employees can always create
you must act so that your team gets into
new solutions for the situations that will
synergy, so the skills and abilities of each
arise along its trajectory. When we rede-
member are enhanced. Do not restrict
signed our IT headquarters I encouraged
creative freedom. Perhaps this is one
the team to design, develop and imple-
of the most important lessons. Be very
ment a new work environment where we
careful not to strangle your employees’
could adopt the new mindset. The result
creative capacity with too many rules
was phenomenal. They created a truly
and plastered processes. Yes, processes
collaborative environment on their own.”
are important if you want to have quality management, but they are not everything.
Talk about partnership with business
Your company needs to have agility to,
To deliver best-in-class services for the www.theinterface.net
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company, a partnership with main stake-
Claro. Maurício Santos, Claro’s Financial
holders was fundamental to develop
Services Director explains: “IT, therefore,
new products. With that approach,
started to gain a new face, with an eye on
Cesar and his team started to develop
the business, looking for innovation and
new collaborative ways of working with
new values to meet the expectations of
them. So, at the beginning of 2019, the
the digital driven market and to be in line
pillar of Research and Innovation raised
with a new customer profile, eager for
the idea to build a Digital Wallet for
convenience. In this renewed journey,
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costs of collection and commissions, in addition to attracting and retaining customers for Claro, with intelligent use of data, customer experience, and digital engagement, connecting customers to the best solutions. In a marketplace concept with banks and FinTech to create value for Claro’s digital ecosystem, Claro Pay was launched in March 2021 after a business simulation process between Nov-20 to Jan-21. Mauricio explains: “To my positive surprise, the technology team was already working on finding new business opportunities with a lot of technology, with Design Thinking and agile methodology. So, we designed Claro Pay together. IT’s vision, from the beginning was profoundly important to the project. In all phases of the project, IT work with a business mindset, partnership, and not only as an executor.” Continuing this transformation, in 2018 Claro started a customer-journey focused strategy launching a IT had an important business partner.” Claro Pay is an app with a digital
program initially called Customer Experience Center (CEC) followed by
account and mobile payments, created
SOLAR, “that means the sunshine of
with the objective of democratizing
Claro and a broader meaning for the
the use of payment services, eliminat-
real Customer-oriented approach”.
ing unnecessary bureaucracies and
Claro offers its cable and satellite
making financial services available in a
Pay-TV services, fixed and mobile broad-
safe and simple way. It aims to reduce
band, fixed and mobile lines, in addition to www.theinterface.net
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value-added and financial services. “With
analytical engines based on machine
all these services, and a fragmented
learning, and the use of robotiza-
architecture coming from companies like
tion. The micro-services-based archi-
Claro, Net, and Embratel, we needed to
tecture allows Claro to launch new
create something innovative and disrup-
features faster than ever, bringing the
tive that could bring speed and at the
greatest result for the business.
same time would bring total adherence
The project is based on a Digital BSS
to the organization’s objectives, while
architecture using the SalesForce
focused closely on the customer.”
platform, SAS Cognitive features and
The project brought disruptive archi-
micro-services Cloud-based on the
tecture and decoupled Claro from
Google/APIGee platform and provides
its legacy systems (CORE Systems),
to the customer its product personal-
using technologies based on cloud,
ization and offer greater adherence in
“ We assess whether the best journey with the greatest value for the customer and the return for the organization is in line with the main objectives of the program” — C e s a r Au gusto Dos Sa ntos D irector of I T a nd CIO, Cla ro Bra zil
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the retention and monetization of new
According to Gartner, a global consul-
acquisitions. “SOLAR aims to unify a
tancy firm, by 2024, 25% of large tradi-
360 v iew of our customers, in a journey
tional enterprise CIOs will be held
centered on their experience, person-
accountable for digital business oper-
alized in all services. In this journey,
ational results, and by 2023, over 50%
we want to personalize their experi-
of employees in lines of business will
ence with Claro,” Santos enthuses.
be technology producers. This means
“The product objectives are reviewed
that IT is becoming more strategic and
quarterly, and we assess whether
a large and crucial part of the business
the best journey with the greatest
growth. “At Claro Brazil we have IT lead-
value for the customer and the return
ers joining business strategy teams as
for the organization is in line with the
Product Managers (PM) to develop and
main objectives of the program.”
deliver more value to the business and
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customers. This is some-
by investing in a special-
thing that is changing in
ized Big Data & Analytics
a real-world of transfor-
Centre (or CBDA in
mation, as technology
Portuguese) focused on
becomes the business.
accelerating the adoption
Enterprises are optimiz-
of big data, machine learn-
ing their approaches to
ing and AI. Additionally,
strategy, governance,
CBDA is responsible for
and operating models
data security and data
to reflect the long-term
governance; important
prospect of ongoing
disciplines that consoli-
turbulence, uncertainty
date and disseminate best
and transformation.”
practices, while setting
One of the key charac-
the rules of access for
teristics of organizations
each type of data such as
that have adapted well
sensitive and non-sen-
to this turbulent environ-
sitive customer data.
ment is that they accel-
The CBDA is a multidis-
erate efforts to break
ciplinary team composed
down operating models
of data scientists, data
and the organizational
engineering, statistics,
boundaries as well as
big data tech experts,
those related to role.
cloud experts and telecom experts. The team is
Data-driven journey
organized into Analytics
In order to reach the
Squads, acting in prior-
market’s expectation for
itized use cases or
high quality services and
complementary trans-
customer convenience,
formational project team
such as new payment
that require data and intel-
methods, cloud comput-
ligence to improve their
ing and IOT, Claro started
results. To succeed, the
its Data Strategy in 2017
CBDA only prioritizes use
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“ We have completed our mission planned for 2019 and 2020 with great success, but we know this is not enough” — C e s a r Au gusto Dos Sa ntos Di recto r of I T a nd CIO, Cla ro Bra zil
cases that can be measured financially.
home or on the antenna. In these cases,
Successful use cases include credit
algorithms are transformed into APIs
score algorithms, the location of best
to easily integrate with legacy systems,
offers that match with the customer’s
BOTs and RPAs, thus closing the cycle
profile and consumption habits, and eval-
of automation and auto-learning.
uations of the best places to expand the
The CBDA also generates business
net, evaluate the best places to open new
value to B2B clients, as the intelligence
stores and identify why some places or
created to solve internal problems is
devices (smart phones or modems) have
transformed into APIs which are exposed
poor network signal quality – in order to
in the Claro Insights Portal. Using the
take appropriate action. The actions can
CBDA, Claro utilizes its Datalake, which
automatically reconfigure the device or
has a big volume of data (+20 Petaytes),
open a work order to a technician who
to create the portal of intelligent solu-
can fix the problem at the customer’s
tions that optimizes decision-making
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while contributing to better results for
of services available. As a cloud-based
the company’s business. With an intuitive
product, the portal is available 24x7,
interface that facilitates the onboard-
and can be accessed from anywhere
ing of new customers and the hiring
and at any time through any device.”
of new services, the portal provides,
“They can then manage this consump-
through its showcase, the documenta-
tion with payment methods available
tion and internal processes of how to
directly at the portal. Until now, we had
contract, use and manage the consump-
long cycles in the development of new
tion of services. “The customer can
intelligent data services and, little inno-
monitor the consumption and perfor-
vation, directly affecting time-to-mar-
mance of the contracted products
ket for a solution to create, publish and
through analytical dashboards,” says
manage the services. To build this journey
Cesar. “For Claro, it is easy to manage
we always had a great support from SAS
its customers and make new releases
and Microsoft as Trusted Partners. Doing www.theinterface.net
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things in a collaborative way of working was fundamental for the success.”
Claro: The future and a solid foundation The digital transformation, well underway at Claro Brazil, lights the way to an exciting future for the Brazilian telco. “The future is here and now, and we believe we have delivered a solid foundation to continue delivering value to the business and transforming Claro Brazil to continue building upon and unlocking the door to greater innovation through a best-in-class Information Technology function,” Cesar enthuses. “We have accomplished great successes so far and have more to achieve. We have a 3-year strategy plan (TRANSFORMA_TI) that establishes where we want to be in this period of time, and this gives us the right way to capture the benefits of the transformation as soon as possible.” “We have completed our mission planned for 2019 and 2020 with great success, but we know this is not enough. The journey is only starting as our environment is very dynamic, technologically fast and perhaps will never end as we are also constantly evolving and always seeking excellence within our sector.”
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