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Transformation in action
Operators are striving to become more streamlined and profitable in response to the various forces reshaping the telecom industry. To achieve their long-term goals, many operators have begun a process of transformation that differs from typical programs of change by being multi-staged and targeted at change across the entire company, including its core values, practices and culture. Projects like migrating to next-generation networks, adopting lean management practices and establishing co-operative ecosystems are commonly part of the fully integrated transformation process.
Major challenges
Coordination on multiple layers
Transformation influences the entire business and requires careful coordination and verification on multiple layers including strategy, business model, operations and network infrastructure. Barriers must be broken down between technologies, processes and relationships to succeed.
Swift deployment
Effective transformation can empower operators to rapidly introduce new services that meet customer needs. However, fast-evolving Internet technologies and constantly emerging communication services make keeping pace a challenge.
Collaboration with other players
Operators must become more collaborative and actively generate synergy among players from wide-ranging industries who will participate in next-generation networks. Rather than "being the value chain", as in the past, operators must begin "steering the value chain" to maintain their dominance in the industry.
Keys to success
A clear vision
Transformation should begin with a clear vision for change that addresses where the company is heading and why transformation is necessary. Before proceeding with action, management should clearly communicate this vision in a manner that reaches the hearts and minds of employees and stakeholders.
Customer focus
Operators need to shift their focus from technology to customers. This means more than rewording the corporate philosophy. It means restructuring the entire enterprise to flexibly meet customer needs on a market-wide and individual basis.
Responsiveness
Greater flexibility and responsiveness to market demands is essential. Operators need to allocate ample resources to network platforms and departments serving customers as well as consider managed services and outsourcing.
Effective partnerships
Operators can increase their range of services and expand their customer base by creating business models and platforms that stress collaboration with providers, vendors and enterprises. Creating such platforms and managing their growth will be a key to success in next-generation networks.
The right technology
The right technologies can enhance an operator's network services now and in the future. Making effective choices demands close examination of the market, competitive outlook, customer requirements and economic rationality.
