Finance transformation
The telecoms market is beginning to consolidate, with mobile, broadband and TV often forming a single offering.
who are out there, but also keep the quality of the converged, fixed and mobile networks that they offer to businesses and a more mature customer set,” says Laura Morroll, director at BearingPoint. “They’re trying to be all things to all people really, at a time when connectivity is just a bread-and- butter thing.”
“[Telcos] are having to think about how they can compete with the agile mobile competitors who are out there, but also keep the quality of the converged, fixed and mobile networks that they offer to businesses and a more mature customer set.”
Laura Morroll, BearingPoint
Morroll adds that the telecoms market is beginning to converge and consolidate, often packaging broadband, mobile and TV into a single service offering. “Sky’s got into mobile, and the likes of O2 and
60%
People surveyed described
connectivity as a major priority in life.
Oliver Wyman 24
Vodafone have got into fixed Wi-Fi and broadband technology,” she explains. “Connecting customers through a more integrated connected converged package means that they’re more likely to be loyal and more likely to stick with the brand. It’s far more economical to keep hold of your customer than to bear the cost of churn when they move onto a rival.” While digital transformation will look different for every company, in practice it has two main aspects. First, there’s the shift in how they engage with the customer. This means moving from mostly human to
mostly digital interactions – possibly reducing headcounts and real estate costs in the process. “One of the big pieces of work that we do with telco businesses is about footprint optimisation and how many branches they need to be able to service an increasingly digital consumer,” says Morroll. “The store is a great connection point to the customer for making sales, but it comes with an estate cost attached. It’s about getting value from the branches that are there, while helping people self-serve more on transactions that don’t add value.” Especially since the start of the pandemic, telcos have begun to recognise the advantages of re-routing their customer service through digital channels. This in turn is forcing the need for a seamless digital journey. As West puts it: “If I ‘fill my basket’ up in an app, I don’t want to start again on my desktop – and if I buy from a retail outlet, I want the freedom to return the device through digital means. Business purchasers are also expecting more, whether they are SMEs or multinationals. Digitising the full customer experience from marketing and sales to service is expected to be seamless and robust, while supporting business customers to earn revenue.” Then there’s the shift in how telcos run internally. This might mean a wholesale change in business processes, for instance by phasing out legacy platforms and migrating systems to the cloud. One example is Three UK, which has been on a mission to cut costs by decommissioning its in-house technologies and shifting systems to Microsoft Azure. This involved slashing some 700–800 jobs, or around 15% of its total headcount. While sales did fall slightly as a result of IT transformation (down 4% in 2020 compared
Finance Director Europe /
www.ns-businesshub.com
issaro prakalung/
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