Success Factors for Digital Transformationin Communications

TCS Digital Software & Solutions Group

Sponsored By

December 2015

Digital transformation is multi faceted

and accelerated

2

Leadership Transformation

Omni-Experience Transformation

InformationTransformation

Operating ModelTransformation

WorkSourceTransformation

And most CSPs are in early stages of digital

transformation

3

Source: IDC, IDC MaturityScape: Information Digital Transformation, #255774

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

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

Establish a digital strategy and a five-year

plan

6

Increase agility

Reduce time to market

Improve margins

Digital Transformation

Key Benefits

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

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

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

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

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

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

TCS Customer Intelligence &

Insights for Communications

13

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.

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