Telco Transformation
Transforming for growth
Having already endured its own recession at the beginning of the decade, the telecommunications sector has recently been suffering the effects of the global economic downturn. Bad debt from both consumers and businesses looks set to increase; at the same time, revenue from both groups is likely to fall, or at best remain flat. Market conditions are focusing telcos' attention on operational efficiency, cost reduction, time to market and capital expenditure. At the same time, customers are demanding more for less from all providers in the telco market – fixed, mobile and ISPs. In the face of pressures like these, telcos need to become more agile, able to respond faster and more effectively to changing demands. This means transformation and rationalisation programmes are key to telcos' continued success. They need to do more with less – and to do it more quickly.
This section contains:
The benefits of transformation
Transformation enables telcos to become more agile and reactive, and hence better equipped to pursue new revenue streams, replace shortfalls and create new market opportunities. This enhances their competitive advantage over new entrants to their markets.
The telcos with the most flexible, responsive and scalable processes and systems will be best able to respond to new and increasingly demanding customer expectations. They will be equipped to maximise the return from each customer and improve the customer experience, so reducing the risk of churn. Transformation enables organisations to deliver flexible processes which allow alignment between strategy and systems.
Transformation lets organisations invest in areas that will increase customer loyalty and generate incremental revenue, while reducing unnecessary cost in the areas that do not.
Capgemini’s approach
Undertaking the transformation journey whilst maintaining “business as usual” is a tough challenge, one that has been likened to changing the wheel on a car while driving on a motorway. To help, Capgemini has developed an integrated set of applications and business processes that gives a telco the power to change the way it works so it can differentiate itself from the competition.
Successful transformations require a number of core components to be considered:
Programme Management and Governance
Transformation requires strong, yet flexible and pragmatic, Programme Management and Governance skills, of a kind that come with over 40 years’ experience in leading major projects around the world with a wide variety of telcos.
Information Management
In the past, telcos have struggled to maximise the benefit that can be generated from the effective exploitation of information. Information is about more than just technology. It’s about aligning business vision with key stakeholders and translating their information needs into technology requirements.
Customer Insight
It is now possible to understand what customers are thinking and feeling, not just what they are saying. It’s a matter of analysing what they are doing, and optimising the management of the resultant information.
Understanding the Customer Journey
Documenting how a customer interacts with an organisation exposes existing and new opportunities to impress, as well as areas where the customer is unhappy and which need to be addressed. By doing these things, you can truly bring the voice of the customer into your organisation.
Market Positioning
Examining the competitive positioning of an organisation against others in its market helps to identify areas in which to invest, in order to increase competitive differentiation. Our recommendations are supported by extensive Capgemini studies, executed by our dedicated telco research laboratory.
Identifying Opportunities for Improvement
We can help you draw up a prioritised list of areas for improvement, thereby highlighting opportunities to deliver better customer satisfaction. At the same time, activities that appear to add no value are recognised, re-evaluated and terminated where appropriate, in order to maximise revenue and reduce costs.
Business Architecture
It is important to identify and implement procedures and processes to embed the customer permanently at the heart of an organisation, and ensure accountability for managing and maintaining this is understood across the business.
Business Deployment Services
The challenge of business change is an area frequently overlooked by transformation programmes. Ensuring that the business “buys into” the transformation is key to realising the benefits. It is critical that the culture of the organisation is customer orientated; we review what needs to be done to incentivise employees to adopt a customer-centric mentality.
Capgemini’s capabilities
Capgemini is uniquely placed to offer end-to-end services, from strategic consulting through technology services to outsourcing. We are one of the few companies that can offer a completely integrated service, incorporating a range of appropriate vendor-agnostic solutions, including Billing, Customer Relationship Management (CRM), Operations Support Systems (OSS) and network management solutions.
Our Communication Transformation Platform (CTP) harnesses the full breadth of Capgemini’s global capabilities. By coupling CTP with industry-leading, reusable Intellectual Property, we help our clients accelerate transformation, be it end-to-end (whole solution), evolutionary (partial solution), or modular (single application).
Capgemini has over 5,000 Telecom, Media and Entertainment (TME) professionals in offices and skill centres around the globe, servicing over 300+ customers with help from our consulting and technology practices. We have carried out successful programmes for the world’s leading telco companies, including 250 mission-critical Business Support Systems (BSS) implementations.
Success Stories
Colt
COLT Telecom needed to replace a legacy billing system, consolidate its billing processes and drive forward operational effectiveness. Capgemini supported and managed a rapid vendor selection process, help establish a Program Management Office (PMO) and Governance, and define the business case to clearly justify the investment. Vendor selection was achieved within client desired time scales, and effective stakeholder management ensured excellent buy-in from the business for the selected vendor and implementation approach. Read COLT success story.
O2 Ireland
O2 Ireland needed to improve customer retention and grow sales from traditional direct marketing channels including delivering a personalised experience for each customer that was seamless across touch points. Capgemini worked with O2 to successfully develop and implement a strategy to build new leading practice Inbound Real-time Marketing and Customer Relationship Management capabilities. The implementation delivered average offer acceptance rates of 50% through the call centres, with high offer presentment rates and average offer value. It has also been rolled out to O2 Ireland’s own brand retail stores, and has been extended to business customer segments. Predictive Analytics resulted in 100% improvement in conversion rates for some campaigns, with pre-paid churn reduced to single figures for target groups. Read O2 success story.
Vodafone
The Enterprise Business Unit (EBU) at Vodafone UK wanted to deliver a world class customer experience and eliminate both customer impacting and internal “points of pain”. Working with Capgemini, EBU launched Project 21, a major nine-month process improvement programme aimed at fundamentally improving back-office efficiency, while simultaneously creating consistent, high-quality customer-to-employee interactions. The intention was to remove variability from operations and to ensure a positive and consistent employee and customer experience. This in turn led to enhanced customer satisfaction, more customer facing selling opportunities, boosted customer retention and improved profit performance. Project 21 has delivered increases in both EBU’s employee and customer satisfaction scores and instilled a culture of continuous process improvement. Read Vodafone success story.




