Digitalization in telecom

Digitalization is our times most powerful driver of change. It brings change across all aspects of business and across all businesses. With digitalization we need to think differently, it is not primarily about doing what we already do today better it is about doing things differently.

The power of digitalization

Gartner predicts that by 2020 a customer will manage 85% of the relationship with an enterprise without interacting with a human. Digital engagements will get more personal, relevant and extends far beyond what used to be possible. Sometimes this is small simple things like a mail update of a payment or the arrival time of the taxi. Sometimes it is whole new content rich experience

Digital operations are expected to be more automated, dynamic, and create an efficiency far beyond what the traditional processes do today. By 2020, Gartner predicts that information will be used to reinvent, digitalize or eliminate 80% of business processes and products from the last decade. We will see more and more of the originally human defined processes to be reshaped into machine execution leaving radically more valuable output with greatly improved productivity as the result.

But maybe most importantly; digitalization gives rise of new business models where new the new digital assets such as data from relations and operations forms a new base of innovation and partnerships. This is the typical starting point of the Internet disruptors as we have seen in recent years.

So, if this is the general picture, the telecom industry is no different.


Digitalization in the telecom industry

We are witnessing the same development in the telecom industry as in other industries, and even if there are lots of buzz around digitalization the reality is that we are still at a very early stage.

Most operators are focusing on improving the engagement with users in order to engage in a way that people wants to engage. Omni-channel, self-service and personalization are some of the most important areas today and this is going to evolve going forward. But also, operators are increasingly automating and building in analytics with fast feed-back loops both in the customer as well as network facing sides of the operation. All with the purpose of creating a good end-user experience and at the same time improve asset utilization.

Equally we see large number of business model innovations where various assets from the operation and network are exposed to new partners. I believe it is fair to say that particularly the business model side of digitalization has still much to go. But digitalization is a force that will remain vital for many years to come and we are just in an early stage of this digitalization journey.

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