In the wake of Covid-19, the telecom industry underwent a seismic shift, altering business plans across the globe. The pandemic acted as a catalyst, prompting rapid transformations among operators worldwide.
In a recent survey, it was revealed that 60% of companies had to adjust their digital transformation strategies due to Covid-19 in 2020, and this figure rose to 62% in 2021. The telecommunications market is now projected to reach an astounding 2,467 billion by 2028, boasting a Compound Annual Growth Rate (CAGR) of 6.2% from 2023 to 2030.
However, this accelerated pace of change has led to varying levels of digital maturity across telecom companies. Many are still striving to provide optimal value to their customers within the digital realm. Despite the inevitability of the digital transformation for telecom, several companies are yet to embark on their journey.
Embarking on such a transformative journey without a roadmap might seem overwhelming. Here, we offer insights into five pivotal areas that define the future of the telecom industry, as well as guidance for initiating your own company’s digital transformation.
1. Assess Your Starting Point:
The inception of your digital transformation marks a crucial juncture for evaluating your business and making strategic decisions. Boston Consulting Group (BCG) outlines three key-choice categories: the breadth of transformation, technology shifts, and foundational adjustments.
It’s crucial to consider the trends shaping the future of communications, such as Artificial Intelligence, the rise of connected devices, automation, customer-centricity, and enhanced connectivity. Your technological decisions must seamlessly align with your business objectives.
Tip: Reassess your core competencies and pinpoint your unique market strengths. Mapping your digital journey is essential to extract its maximum potential.
2. Embrace Automation and Robotic Process Automation (RPA)
According to McKinsey, disruptive business model shifts have transpired within telecom, with technologies like AI, big data, and the Internet of Things (IoT) redefining service delivery and value capture.
Automation and AI play pivotal roles in steering digital transformation in telecom. Robotic Process Automation (RPA) software, for instance, optimizes client processes and overall operational efficiency. When wielded adeptly, these technologies enhance productivity and save valuable time.
Tip: Regularly update your IT infrastructure and software to stay in tune with evolving demands. Up-to-date software bolsters productivity and safeguards against vulnerabilities.
3. Embrace the Connectivity Imperative
Mobile communications represent one of the most profound revolutions of this century. Connectivity now reigns supreme among Communication Service Providers (CSPs). The advent of 5G is poised to revolutionize service quality, user experience, and speed.
Tip: Prioritize the integration of 5G into your omnichannel strategy. Delivering 5G connectivity ensures an unparalleled customer experience, positioning you as a trailblazer in the market.
4. Elevate the Digital Customer Experience
A staggering 90% of companies grapple with the challenge of enhancing customer journeys and experiences. However, customer experience (CX) has evolved into a pivotal factor for telecom businesses. It profoundly impacts customer retention and key metrics like Average Revenue Per User (ARPU). This significance is amplified by the sector’s recent reputation challenges.
Tip: Implement enterprise-wide Customer Relationship Management (CRM) systems to centralize customer data and streamline processes. Engage customers through their preferred channels for seamless interaction.
5. Leverage Strategic Partnerships
Partnerships play a pivotal role in bridging service gaps and amplifying offerings. Collaborating with partners facilitates the creation of an omnichannel strategy, offering a unified experience that solidifies customer relationships and enhances sales.
Tip: Forge an omnichannel ecosystem with strategic partners. Telecom companies can collaborate with partners for selling, co-selling, or white-labeling services. This approach consolidates the ecosystem, culminating in a unified service offering for customers, says Infobip.
When starting your digital transformation, platforms like Twoosk can help you on that journey. Harness the power of technology in this evolving industry while aligning with the demands of digital transformation.
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