Metamorphosing user experience through innovation and the race to beat others at the game resulted in the breakneck evolution of the phone to a smart phone to a tablet to a phablet and so on.
Strands of DNA that are being exchanged between the phone, the tablet and the laptops makes abundantly clear that this convergence will definitely take place, however, the form of this convergence is a matter of an intellectual debate.
The advent of 3G, 4G, LTE and other emerging technologies have challenged the very basis of the Telecom core competence. The IP world is swooping down, and, will take over traditional voice in the near future. Not just that, with all devices talking IP, the traditional SMS application, USSD & OTA applications also see a major challenge from various avatars of device applications.
With quickened technology cycles on the software as well as the hardware front, there is a great advent of capabilities in capturing and processing non structured data.
Traditionally the telecoms primarily used to do market analysis on the basis of segments drawn from co-related, longer life-span customer attributes and slicing and dicing finely into micro segments for better targeting.
Now they are looking at short life-span attributes for correlating customer context and short-span segmentation for tactical offerings of equally shorter lifespan. There is a clear shift one can notice in retention equation shifting from discounting based approaches to value based approaches for better revenue realization . The reason is obvious, telecoms are finding it more profitable to retain customers through added services viz. a viz. discounting.
All of this dynamism, in terms of the markets, the products, the services, the technology and most importantly, the fickle customer mindset, is not easy for the incumbent Telco to understand and manage. This is having a critical impact on the telco’s profitability, sustainability and competitive growth of revenue streams.
Club this with huge investments in transformation projects and the shortening of the transformation benefits lifespan, longer time to market and high costs of rolling out of products & services. The telecom industry is finding itself in an unenviable position where they seem to be unable to manage the risks associated with return on investments.
THE BIG QUESTIONS
What are the leading players attempting to achieve in this extremely dynamic business scenario?
What should one be doing in the short, mid and long term period?
Understanding this change is the first step for telecoms – are your current data models and information architecture still valid for the new customer and the new technology and the new markets and the new products? This is the first question to ask, else your next transformation will be pure data migration to a new version of database and the challenges which drive you to the transformation will remain intact in the system.
Once the change in the environment has been understood correctly, then build your business strategy to capitalize on this change and reflect on some of the most critical questions which are:
- Who is the new competition – do I acquire, collaborate or compete?
- Where is the new information I need for successfully managing my business?
- What are the new markets that are opening due to changes in the technology landscape?
- How is my customer changing and how does he want to interact with me?
- What are the changing needs and the lifespan of these needs?
Answers for these questions are not easy to come by for a traditional Telco. You need an experienced partner to define and deliver these changes. Tech Mahindra has been a specialist telecom solutions provider for the last 23 years, has the capability and the experience to help you successfully embrace the data revolution and become a true blue digital telco