Which areas of their business should network operators prioritize for digitization?

Posted by media on June 7, 2016 at 9:00 AM


Saving on costs is one of the main benefits derived from any digitization process. And the best way of achieving this is digitizing the aspects of a business that have the greater impact on the company’s profitability.

According to a survey by McKinsey, around 80 network operators worldwide have revealed that there is a strong correlation between 5 specific aspects of the business and their potential benefits if they go digital. The study highlights that telcos that have undergone digital transformation of these 5 aspects have increased their profit margin to 43%, while those who have not reach, on average, a much more modest 21%.

What are the 5 areas within telecom companies that must be prioritized for digitization to maximize overall profitability?

This post is also available in Spanish.

The results of any digital transformation processes are not easily quantifiable in the short-term. However, if the following 5 aspects of a business are digitized it will certainly impact on the company’s profitability in a positive manner:

1. Customer analysis

It is essential to establish a robust system of analytics in order to achieve a 360º understanding of clients and their interactions with the company.

Telecom companies who are able to deeply analyze their consumer data are similarly able to make highly customized offers to suit individual customer needs, avoiding generalized, indiscriminate offers and working more harmoniously with the marketing, sales and customer service departments. Data analysis prevents action based on assumption and reduces the wasting of resources.

2. Oder management process

The digitization of the order management process makes a significant part of the current buying process redundant.

Nowadays, there are two key factors that make telecom companies stand out to clients: the quality of the service provided and the buying experience, whether online or in-store.

What is a digital consumer looking for?


 The faster, the better


Getting what they want, when they want it


"I'll buy it later with my smartphone"

In order to 100% digitize a company’s buying process, it is essential to use automated management systems for orders that are linked to all steps in the process, from validating the required services to signing contracts, authorizing payments, invoicing, all communications with clients, etc.

For example, a well-designed full-service application designed for smartphones should effortlessly guide clients in their choice of the correct tariff for their needs and lifestyle. This also helps to reduce the costs needed to attend clients through a call center, thus preventing customer churn.

Whitepaper: eSignatures for Telcos


3. Customer Relations 

Establishing a solid CRM system helps a company to know their clients better and more effectively customize their offers.

Through a well-configured CRM platform, all client activity on any channel both online and offline can be tracked. Knowing how clients tend to get in touch with a given company and what products or services they tend to browse or purchase at any given moment helps to anticipate future demand for products, thus allowing companies to customize exactly what kinds of offers an individual client will receive and by what means.

The correct use of a CRM tool would not only result in an increasingly accurate knowledge of clients, but also reduce costs, increasing client satisfaction and customer loyalty as well as helping the company to set itself apart from competitors.


4. IT Applications

It is essential to simplify the array of applications used when scaling a business in the face of market demand.

One of the primary obstacles in any digital transformation process is having to restructure the company’s IT department. By spending time and effort dismantling systems that have been developed over years by different IT teams and which may probably include overlapped, connected and/or interdependent systems, it is difficult to know where to start in order to make the changes necessary to digitizing the entire system.

  • Uninstalling reduntant programs.
  • Automating core procedures.
  • Consolidating any overlapping capabilities.
  • Fewer dedicated personnel needed.
  • Unified vision of client invoicing.
  • Greater efficiency resolving issues.
  • Lower margin of error.


5. IT Infrastructure

The automated management of a company's IT infrastructure is crucial for reducing costs and processing larger amounts of data.

Since the volume of client data that telecom companies have at their disposal increases, and given that all this information needs to flow and be easily distributed among all applications and departments in real time, a greater storage capacity and more powerful processors are required. This need not be achieved by adding new layers to the older IT systems already in place, but by simplifying and automating the established infrastructure, both systems and procedures.

What do leading operator networks do?

  • Use server automation solutions to handle increases in usage.
  • Load balancing: redirecting traffic to different servers depending on the volume of data being processed.
  • Automate the ticketing process (for customer complaints or queries).

This approach not only results in a more cost efficient infrastructure, but also allows network operators to be more flexible with regards to the increased number of clients they can effectively reach, as well as take on and process larger volumes of data in less time. In this way, IT managers can dedicate more time to improving the efficiency of work procedures and not worrying too much about enhancing the IT infrastructure.

If you are looking to offer clients the option of signing any document or contract in a simple, convenient and efficient way, we recommend trying our electronic signature solution. Register now and try all features offered for a free 14-day trial.

If you wish to know more about how electronic signatures can benefit network operators, download the following whitepaper entirely for free.

This post is also available in Spanish.

Whitepaper eSignature for Telcos and Network Operators


Source: McKinsey&Company

Topics: Digital Transformation

Blog Subscription

Recent Posts