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Revenues across the telecom industry’s crucial B2B segment are slowly declining.
The needs and desires of buyers aren’t being fulfilled. Sensing opportunities for disruption, new competitors are circling, with capabilities that many incumbents can’t easily match. It’s no wonder that transformation has risen to the top of the agenda for telecom CEOs and boards.
Telecom operators know that to better serve existing customers, win over new ones, reverse declining revenues and stymie competitors, they will need a major shift in their capabilities and outward-facing identity. This requires transformation. But knowing the effort and investment involved in transformations, and the high rates of failure, how can telecom leaders improve the odds for success
The four building blocks of transformation
At PwC, we’ve found that four building blocks are essential to every major change effort across all industries, including telecommunications:
1. Create a strategic identity.
Articulate a single desirable future for your enterprise and focus all your efforts on achieving it.
2. Design for trust.
Develop ways to attract and deserve the commitment of everyone related to your enterprise particularly customers and employees.
3. Master the pivot from sprint to scale.
Test new practices in an intensive, experimental, startup-style manner. Pick the approaches that work, and rapidly implement them throughout the larger system.
4. Treat your legacy as an asset.
Save the best of your past, divest the rest for advantage and use the income to fund the future.
Build trust through outstanding customer experience
Telecom companies need to design around the customer to create a better experience, embodying the trust that they seek to earn in the quality of that experience. Some of the ways in which telecom firms can achieve this include: moving beyond the one-size-fits-all approach to service delivery and customising the customer experience; presenting customers with proactive product recommendations; offering ‘freemium’ models, or try-before-you-buy products and services; and streamlining the contracting process.
Achieving successful transformation for telecom companies is a challenging undertaking for any operator. But conditions within the B2B segment of the industry suggest that for many operators, transformation is not only inevitable, but increasingly urgent. The benefits of transformation are considerable, in terms of both cost reduction and revenue growth. And transformation will enable operators to leverage their legacy assets their customer relationships and networks in ways that they can’t today. The leaner, more agile and customer-centric telecom operator will be fit for growth in the difficult B2B landscape.
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