13 Chapter II Literature Review The following chapter presents a review of the academic literature pertinent to the thesis subject. The literature review aims to create a solid theoretical foundation on which this research will be grounded. This chapter will investigate, discuss, and analyse established theories, models, and research related to the TRICORN process, agile methodologies such as Scrum, the integration of traditional and agile approaches, and the use of analytical tools like Porter's Five Forces, SWOT analysis, Kotter's Change Management Model, and Value Stream Mapping. It will also explore how these concepts and models are applied in various organizational and project contexts. The information and knowledge obtained from this literature review will guide the formulation of the conceptual framework and research design of the study. Also, the review will provide a basis for the interpretation and discussion of the research findings in the context of existing theories and empirical studies. The ensuing sections will explore each of the identified areas in greater detail, starting with an examination of the TRICORN process and agile methodologies such as Scrum. Following this, the review will delve into the integration of traditional and agile approaches, followed by a discussion on the various analytical tools used in the study. The closing section will cover the methodologies used in analysing interview data, thematic analysis, and the concept of key stakeholders in qualitative research. II.1 Theoretical Foundation II.1.1 Existing PT Aurora Networks Indonesia Collaboration Framework During Sales & Delivery Process (TRICORN Model) 14 The TRICORN model is a customer engagement framework that plays a crucial role in the sales process within PT Aurora Networks Indonesia. This model aims to streamline and optimize customer interactions by assigning three key roles: Sales Case Owner, Customer Solution Owner, and Project Execution Owner. The Sales Case Owner takes the lead in driving sales opportunities and acts as the main point of contact for the customer throughout the entire sales cycle. The Customer Solution Owner is responsible for ensuring the solution offered aligns with customer requirements and oversees the design and feasibility of the proposed solution. Lastly, the Project Execution Owner ensures a smooth transition from the sales phase to project execution, overseeing the successful implementation of the solution. The TRICORN model allows for flexibility in role assignment, ensuring that the best-suited individuals participate in each aspect of the sales process. This model promotes effective customer engagement, collaboration, and efficient project execution, enhancing sales performance and customer satisfaction (Aurora Networks, 2022). 15 Figure II-1 TRICORN Model. Source: Aurora Networks (2022) 16 Sales Case Owner: The Sales Case Owner plays a pivotal role in driving sales opportunities and acts as the primary point of contact for the customer throughout the sales cycle. This role takes ownership of the sales case, from the initial Go decision (Gate 2) to the handover for execution (Gate 6). The Sales Case Owner is responsible for capturing the customer's business requirements, exploring, and resolving their pain points, and ensuring the solution aligns with their needs. They collaborate closely with internal teams and stakeholders to drive the case forward, ensure contractual compliance, and maintain complete and up-to-date documentation. By effectively managing the sales case, the Sales Case Owner contributes to the success of the sales process and fosters strong customer relationships (Aurora Networks, 2022). Customer Solution Owner: The Customer Solution Owner is accountable for the design and feasibility of the solution offered to the customer. This role ensures that the proposed solution is fit for purpose, addresses the customer's requirements, and delivers value. They collaborate closely with various stakeholders, such as the Lead Solution Manager, Lead Services Solution Manager, and Pricing Manager, to develop a comprehensive and optimized solution. The Customer Solution Owner validates the costs of the entire solution, including all services in scope, and collaborates with technical experts to address any queries or complexities. Their role is to ensure that the solution aligns with the Lead Business Group's strategy, meets the customer's expectations, and provides a competitive advantage. By driving solution design and alignment, the Customer Solution Owner contributes to the overall success of the sales process (Aurora Networks, 2022). Project Execution Owner: The Project Execution Owner (PEO) takes on a critical role in the TRICORN model, particularly during the transition from the sales phase to project execution. In the presales phase, the PEO validates services contributions to the bid, reviews bid documents, identifies risks, and contributes to mitigation plans. They assess the 17 feasibility of successful delivery, validate the solution, and address any technical queries or concerns. During the delivery phase, the PEO ensures the project is executed within the required time, quality, and cost parameters. They drive project execution, collaborate with the Customer Project Manager, and ensure customer acceptance. In complex multi-BG cases, the PEO coordinates cross-BG delivery aspects, interlocks with the Lead Solution Manager, and nominates a Lead Technical Manager for E2E delivery scope assessment. The Project Execution Owner's role is vital in ensuring the successful implementation and realization of the solution (Aurora Networks, 2022). II.1.2 Existing PT Aurora Networks Indonesia Sales Process and Milestones Aurora Networks’ sales processes describes the phases, tasks, roles and responsibilities, inputs, deliverables, and mandatory decision points (gates) for Opportunity management. It is customer focused, which process is tightly linked with Customer Buying Process and choice criteria and is primarily measured by Value as defined by Customer; establishes common way of working, avoiding complexity, overlaps, fragmentation, and waste; and applicable to all Aurora Networks’ business units as it is flexible and scalable adapted to different type of opportunities, depending on size, complexity, and risk. 18 Figure II-2 Aurora Networks' Sales Phases & Milestones. Source: Aurora Networks (2022) 19 When Aurora Networks identifies a business potential with a new customer to have a frame contract, or renewal of existing frame contract, full sales process with six phases and six milestones is applied. Phases and milestones in the existing Aurora Networks’ sales process is described as follows: 1. Phase-1: Account planning & Business Development. During this phase the discussion to define strategic objectives and sales goals for the new customer or renewal of frame contract agreement with existing customer is conducted. Activities in this phase includes: • Analyze Business Potential by market and competition analysis. • Manage relationships to understand status, by getting new leads and manage established contacts. • Develop Account Strategy by developing Customer Success Plan, describing the objectives, approach and plans agreed for the customer. The milestone for this phase is called Gate-1, which decides whether there’s actual business potential for the customer and to move forward with next process. 2. Phase-2: Identify Opportunity. During this phase Sales team will partner with customer to identify potential business and stakeholders. Activities in this phase includes: • Engage with customer at all levels and identify leads. Understand customer priorities and pains by working as a partner. Identify high level scope and budget. • Register Opportunity: Potential opportunity registered in customer relationships management (CRM) tool with the level of details known at this stage. Initial estimation of opportunity value. 20 • Select and qualify. Select the opportunity to pursue by a thorough external analysis. Analyze the customer request, market context and competitive situation. • Define strategy. By involving experts in the business group, team collaborate to define winning strategy for developing the opportunity. • Create solution concept. By engaging experts to start early definition of possible solutions. The milestone for this phase is called Gate-2, where company decides whether there is a real customer opportunity to pursue. 3. Phase-3: Develop Opportunity. During this phase the team will develop understanding of customer needs, requirements, and build a strategy. Activities in this phase includes: • Develop high level solution which is led by customer solution owner. • Positioning by influencing the customer. This interaction is led by Account Manager. • Forecast the order intake. • Initial offer strategy development. The milestone for this phase is called Gate-3, where company decides whether it is willing and able to create an offer. 4. Phase-4: Create Offer. During this phase the team will create the best offer to customer in line with agreed strategy. Activities in this phase includes: • Establish bid management by assigning a bid manager. • Finalization of offer strategy • Development of technical offer such as BoQ (Bill of Quantity), Technical Scope of Compliance (SoC), Scope of Works (SoW), and other documents as required. • Development of Service Offer 21 • Commercial & contractual strategy • Business case development and approval The milestone for this phase is called Gate-4, where decision whether the company will continue with submission of the offer to the customer. 5. Phase-5: Win the Case. During this phase the Sales Case Owner will negotiate to win using the agreed tactics and methodologies. Activities in this phase includes: • Negotiate with customer. • Update offer & forecast based on negotiation. • Submission of revised offer based on negotiation. • Pre-align and approval of contract signing. • Win/Loss analysis The milestone for this phase is called Gate-5 which marks whether the company can sign the contract and accepts purchase orders (PO). 6. Phase-6: Handover. During this phase the team will perform handover to project execution. Activities in this phase includes: • Preparation of handover of project details and targets. • Sign-off of Project target agreement • Start of execution The milestone for this phase is called Gate-6 which marks that the project is properly handover to execution team. In the case that opportunities originated under a signed contract and having prices, Terms & Conditions (T&C) and scope matching the already approved contract frame or with pre-approved prices and T&C matching a blanket approval follow a light sales process: analysis of Customer request, offer preparation, handover and 22 delivery are highly simplified as they come under known context and well defined contracted or pre-approved boundaries. These opportunities do not require G2 and G3 and are bypassing G4/G5. Figure II-3 Sales & Execute Gates Overlap Stages. Source: Aurora Networks (2022) To make sure smooth project transition, Sales Process also define overlap stages between Sales Gates and Execute Gates. Delivery team representatives be involved early during Create Offer Phase to validate the solution being prepared by the solution team. II.1.3 Sales Process Key Roles & Responsibilities The Sales Process key roles are the ones taking main responsibilities for the opportunity and offer development. They must be nominated in Customer Relationship Management Tool. The opportunity owner should add the names of those contributing to develop the opportunity to the “Opportunity Team” as soon as Gate 2 passes, while the extended team working on the offer is nominated by the Bid Manager in the Offer Team, straight after Gate 3. Here are the key roles and their main responsibilities during Sales Process: 23 1. Account Manager: Is responsible for customer engagement, holds the business relationship with Customer and drives the Opportunity and Offer strategy; defines expected winning price and owns presentation of prices to Customer in close collaboration with the Pricing Manager.