The telecoms industry is no stranger to change. After all, the leading players in this sector have delivered network connectivity and devices that sit behind many of the world’s game-changing digital innovations. Take digital pioneer Uber as an example; it simply wouldn’t exist without the proliferation of smartphones and underpinning mobile network engines. But there’s a problem for the telecoms companies providing the networks and devices enabling these new business models. These telco giants need to accelerate their own digital transformations but, unlike digital start-ups, they have made massive investments in legacy IT over the past few decades and can’t simply ‘switch on digital’.
Nonetheless, business leaders recognise that, as consumers increasingly demand a digital customer experience, one that offers instant gratification, they must embrace the digital economy. Failure to become a truly digital company, is not an option. You only have to look at the number of big name companies that have gone out of business in recent years because they couldn’t, or wouldn’t, transform.
So, how can traditional telecoms companies survive in today’s fast-changing digital economy? Not known for their agility, how do they forge ahead quickly with digital transformation programmes that ensure their business models and operations are fit for the future? There are many recommendations for accelerating transformation, embracing technical, operational and process change, but I’m going to focus on just three in this blog.
Tip 1 – Modernise legacy applications, rather than dispose of them
At Sopra Steria, we encourage those clients with a heavy investment in legacy assets to modernise what they’ve invested in over the years, while ensuring they also keep pace with modern, cloud-based developments. It’s clearly not feasible to replace decades-old systems and applications in their entirety. That’s especially so in an industry experiencing significant pressure on revenues and margins (e.g. decreased roaming revenues, commoditisation and price erosion) and needing to continue investing in their networks (SDN/NFV & 5G, etc). So, my recommendation is to adopt an evolutionary approach. Ask what you need to do to extract more value from existing IT assets in line with a digital strategy. Then look at the real business triggers for legacy applications to become redundant or the option to replace with new, cloud-native ones. Be selective in your investments and opt for projects that give a rapid ROI. Modernisation offers a quick win as you accelerate your digital transformation.
Top 2 – Use Agile coaches to turn DevOps from theory into reality
We all know that speed to market with new services and products that give customers the digital experience they’re looking for is vital. To achieve this, organisations recognise that they need to transform their software development processes. Traditional lengthy waterfall-style development must be replaced with a DevOps culture that enables rapid, frequent releases through Agile sprints. This is typically a strategic top-down decision that sounds good in theory. The message is clear: we need to release fast, often and with assured quality; and we need to be agile so that we can respond quickly as the market changes. Yet that message becomes lost as it filters down through the management layers and those people expected to put theory into practice struggle to make it happen. I’ve seen enterprises overcome this by embedding Agile coaches at different layers of the organisation. These are people with practical experience of DevOps and Agile, able to lead and demonstrate this new way of working. This is a case of ‘don’t just tell us how to do it, show us as well’.
Tip 3 – Address adoption challenges with a defined vision and value position
Even with Agile coaches embedded in the end-to-end DevOps cycle, we still see instances where an organisation has implemented a new system or launched an innovative app that fails to gain traction with users. Let’s say, for example, you want to launch a mobile-front end on your Oracle DB system, enabling your employees to access what they need, where and when they need it. Or you might have invested millions in a new cloud platform for better visibility and control. If you want to avoid this being money down the drain, you must encourage user adoption. This requires communication of the ‘vision for’ and ‘value of’ your investment. So, it’s not just a case of communicating what the new capability is for (the vision), but clearly articulating the benefit it will bring both to the business and the users themselves (the value). If it’s a sales application, why would your salespeople use it if they perceive that’s it’s just a management tool for tracking what they do? How much more enthusiastic would they be if they understood how it will help them to sell more, faster? It sounds a simple tip for ensuring successful adoption of new digital tools, but the lack of a defined vision and value proposition can so easily stand in the way of you achieving your desired business outcomes.
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The above three tips are just a flavour of the new thinking and approaches that telcos must take on board to survive in today’s digital economy by accelerating their digital transformations.
Authored by Jason Butcher