Digital transformation is essential for the future survival of communication service providers. Today's consumer is rapidly evolving into the digital consumer of the future. The process of understanding customer requirements and subsequent delivery of compelling services and quality customer experience requires a digital infrastructure. This IDC research, sponsored by TCS Digital Software & Solutions Group, revealed five critical success factors for digital transformation in the communications industry.
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Success Factors for Digital Transformation in Communications
1. Success Factors for Digital Transformation
in Communications
TCS Digital Software & Solutions Group
Sponsored By
December 2015
2. Digital transformation is multi faceted
and accelerated
2
Leadership
Transformation
Omni-Experience
Transformation
Information
Transformation
Operating Model
Transformation
WorkSource
Transformation
3. And most CSPs are in early stages of digital
transformation
3
Source: IDC, IDC MaturityScape: Information Digital Transformation, #255774
4. Though most CSPs are underway with DX, it
can be a long process
18%
46%
36%
Executing
Implementing
Planning/ Evaluating
How far along is your company into the digital
transformation process?
Digital transformation is
being implemented or under
evaluation by many CSPs
Only a small percentage of
companies are well along in
the process and are actually
executing their business
strategy largely on digital
platforms
Most CSPs are still just one
to two years into the digital
transformation process
4
5. New IDC research revealed five critical success
factors for DX in the communications industry
1. Establish a digital strategy and a five-year plan
2. Leverage analytics to better understand customers and
reduce churn
3. Develop an Omni-channel platform that can evolve with
the business strategy
4. Legacy migration should be an essential aspect of
Digital Transformation
5. Evaluate end-to-end integrated digital IT options to help
speed time to market.
5
6. Establish a digital strategy and a five-year
plan
6
Increase
agility
Reduce
time to
market
Improve
margins
Digital Transformation
Key Benefits
7. Better understanding and serving customers
is key priority of digital transformation
7
Improve CEM
Improve customer interaction
Proactive monetization
Attract new customers
7
"The main driver of digital
transformation is to improve
our business by understanding
customers' buying and usage
patterns so we can retain
customers and upsell existing
customers and attract new
ones.“
- Large US–based telco
executive
8. Leverage analytics to better understand
customers and reduce churn
8
Q. To what extent are the following top priorities for deploying business analytics?
0 2 4 6 8
External monetization
Portfolio optimization or new offer affinities
Realizing opex efficiencies
Proactive CEM
Better agility by reducing time to market
Upsell/cross-sell
Reduced customer churn
(Number of responses)
Top Priority for Leveraging Analytics Is Reducing Customer Churn to Promote
Revenue Growth
9. Develop an Omni-channel platform that can
evolve with the business
9
Tactical,
functional
and siloed
capabilities
Integrated
online,
mobile and
retail store
customer
experience
Level of
investment in
digital
transformation
for Omni-
channel
engagement
Time
Comprehensive
proactive
platform
analyzing online
activity, user
preferences,
tracks
transactions
10. Implement a digital IT strategy that
addresses legacy transformation
CSPs should set a goal of migrating the majority of customer interactions to digital
channels by 2020.
IDC research revealed that CSP legacy systems are a key impediment to
implementing Omni-channel integration
Silos, and other legacy systems are key factors for the elongated process of digital
transformation across the industry. To realize the potential of analytics and digital,
communications companies have to accelerate the transition from legacy systems to
more agile, digital technologies.
The shift to digital will require the modernization and integration of disparate legacy
and siloed software platforms
• Process of legacy system transformation in order to access data across channels
will be long and complex.
This parallel process can be costly, but CSPs should start by transitioning one
customer-facing business process such as customer service or sales.
Evaluating packaged digital solutions with integrated analytics platforms can also help
speed the transition to digital while helping reduce churn and expand sales.
10
11. Evaluate integrated digital IT options to help
speed time to market
1111
Packaged
software
Professional services for
planning or integration
In-house
developed
systems
End-to-end
solution
combining
predictive
analytics
with CEM
CSPs can leverage a are
a hybrid approach,
piecing together different
solutions…
But the goal should be
an integrated solution
with a logical roadmap…
That will facilitate an
optimal and timely
transition with specific
goals
12. Essential Guidance for Communications
Companies
Begin by determining key priorities to improve differentiation and competitive
positioning
• Interacting with the customer in a digital environment can enable
personalized next-best interactions to drive cross-sell and upsell and
proactively reduce churn
Leverage customer insights through proactive CEM to keep customers happy
and returning
• Customer experience is directly related to customer loyalty and minimizes
churn
• Aim to deliver a seamless Omni-channel experience to establish brand
differentiation and loyalty as well as improve agility and the speed of
monetization
Consider implementing an integrated prescriptive analytics platform
• Packaged solutions can speed time to market
• Implement a digital platform for improved operating efficiencies and
smarter customer segmentation and service development
12
14. TCS Customer Intelligence & Insights for
Communications
Making Digital Transformation Achievable—Quickly and Cost-effectively
TCS can help you on your journey to successful digital transformation
Build enduring customer relationships based on deep customer insights
Increase wallet share and new revenue opportunities by exploiting digital channels
Drive operational excellence and deliver superior customer experience leveraging
operational analytics
Click here to see how you can accelerate your digital transformation journey with CI&I for Communications.
Solution for the future with more agility and lower risk:
A cloud-based scalable, customer engagement platform with
real-time, action-oriented analytics built on patented innovation
TCS’ Customer Intelligence &
Insights for Communications is
customer and operational
analytics software that delivers:
The complete TCS Digital Software & Solutions Group portfolio includes: TCS Intelligent Urban Exchange,
TCS Digital Commerce and TCS Customer Intelligence & Insights for Communications, Banking, and Retail
Innovative industry first solutions:
Advanced analytics built for communications draws on TCS’s
expertise, vision and industry roadmap to ensure sustainable,
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Fast deployment, low TCO and rapid ROI:
Open platform design and modular architecture includes out of
the box use cases for communications and ready-made KPIs for
fast and cost effective implementation