Over the last decade, Communications Service Providers (CSPs) have used digital strategies to achieve some notable successes, becoming more efficient, creating and offering new digital services in existing markets and entering into new adjacent markets.
But have they managed to translate their digital achievements into sustained financial gains?
We conducted a research study to answer this question. The Accenture research study is based on a sample of the leading 50 CSPs globally, operating in 26 countries and representing almost 80% of industry revenues. Read the full report to find out how CSPs measure up, and what actions they need to take to become an enabler at the middle of the digital economy.
Many businesses continue to apply digital only to drive efficiencies, digitizing core operations only to improve short-term competitiveness.
Less than 24 percent of companies (Digital Leaders + Digital Higher Performers) have made a strong commitment to digital.
Only two communications companies have strong performance across both the four dimensions of the Digital Performance Index and the five dimensions of the High Performance Business Framework.
Digital High Performers who differentiate themselves have acted decisively, used technology to unlock new revenue streams, anticipated customer preferences and renewed their business model.
In order for CSPs to rotate to the new, they need to focus on infrastructure, operations, customer engagement and services.
The study shows that the vast majority of communications service providers are not yet translating their digital investments into better financial performance. However, it is also clear that successful operators have taken –and are taking – a number of leading actions on their paths to digital leadership:
Incorporating digital into growth strategy and internal operations through the creation of dedicated organization roles and open innovation.
Focusing on product development of digital services, with help of crowdsourcing, strategic partnerships and platform creation.
Digitizing the customer-facing process in order to deliver a seamless, customized experience.
Digitizing internal operations through the assessment of current operations, automation of day-to-day processes and digitally based internal collaboration.
CSPs have the potential to become the enabler at the middle of the digital economy and by operating with a fully transformed digital core, operators will be able to compete as a disrupter and win against the digital giants.