IT transformations - Capgemini Consulting Nederland
IT transformations - Capgemini Consulting Nederland
IT transformations - Capgemini Consulting Nederland
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Figure 1: Forecast of Mobile Service Revenue Growth in Western Europe (%),<br />
Global Telecom CAPEX Growth (%) and Volume of Network Traffic in<br />
Western Europe (Zettabyte per Month)<br />
Window of Opportunity for<br />
Sustainable Transformation<br />
5.8%<br />
4 %<br />
661.2<br />
Widening spread<br />
between costs<br />
and revenue will<br />
limit efficiency<br />
of lean measures<br />
2.49 %<br />
2.4%<br />
356.2<br />
69.9 %<br />
168<br />
1.04 % 0.69 %<br />
2010 2011 2012<br />
2013<br />
-0.68 %<br />
Growth in CAPEX Revenue Growth Volume of Data<br />
Source: Informa, Mobile Europe Revenue Forecasts, 2009; Cisco, Cisco Visual Networking Index: Global Mobile Traffic<br />
Forecast Update, 2009-2014; 2009; Infonetics Report: Service Provider CAPEX to Bottom in 2010, Investments to Rise in<br />
2011, November 2009<br />
Threat from New Competitors<br />
Another challenge, which poses a<br />
potential threat to operators, is the<br />
infringement of online players in<br />
the traditional telco territory. The<br />
recently announced Facebook-Skype<br />
alliance 3 which will enable Skype<br />
users to call and send SMS to their<br />
Facebook friends directly on their<br />
mobile phones and landlines has the<br />
potential to cannibalize voice and<br />
SMS revenues of operators.<br />
While it is often easy to overstate the<br />
threat of these kinds of initiatives<br />
from non-traditional competitors,<br />
their global scale, all embracing<br />
nature, and network effect does<br />
represent a substantial threat if these<br />
kinds of services gain traction.<br />
These types of transformational<br />
challenges, on top of the more<br />
traditional competitive and<br />
operational challenges, do require<br />
a new set of responses. In the<br />
next section we will discuss these<br />
responses in detail.<br />
Digital Renewal: Key Priorities for<br />
TME Players<br />
When assessing the range of response<br />
measures being adopted by telecom<br />
operators, it is possible to group them<br />
into five broad priority areas<br />
(see Figure 2):<br />
■■<br />
■■<br />
■■<br />
■■<br />
■■<br />
Enhancing customer relationship<br />
Upgrading infrastructure<br />
Simplifying <strong>IT</strong><br />
Streamlining operations<br />
Improving product lifecycle<br />
management.<br />
We have assessed these responses<br />
under the heading of Digital Renewal.<br />
In the subsequent subsections, we<br />
detail the five key elements of this<br />
approach.<br />
Customer Relationship Renewal<br />
Key Issues<br />
There are two broad themes under<br />
the heading of customer relationship<br />
renewal. The first of these is how<br />
to re-balance the acquisition and<br />
retention costs, and the associated<br />
3 Company Website.<br />
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