Telstra Shows Promise For European CIOs As A Network Solutions Provider In Asia

Dan Bieler

At a recent event in Sydney, Telstra, Australia’s incumbent network solutions provider, provided new insights into its strategic activities under its new CEO Andrew Penn. Overall, Telstra’s strategy remains in line with that communicated last year; we suggested then that for European CIOs and technology managers, Telstra represents an attractive network solutions provider for their organizations’ activities in Asia. But Telstra has evolved since then. Discussions with Telstra executives have provided us with new information and have led us to several new observations:

  • Telstra’s digital strategy is beginning to take shape but remains fragmented. Like many other telcos, Telstra has created a digital division to develop digital retail offerings for SMBs and consumers. In its current shape, this approach carries some risks, as Telstra’s Global Enterprise Services and Software divisions are also pursuing separate digital activities. As a result, duplicate and potentially contradictory digital offerings could emerge. Although Telstra claims that it is coordinating these activities, the current set-up underlines the fact that Telstra doesn’t yet have a digitized strategy; it is instead pursuing several digital strategies. This could cause confusion for customers, inefficiencies for Telstra, and flawed end-to-end customer journey mapping, thus undermining the value that Telstra can deliver to CIOs as a business enabler.
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Telstra Bets Its Future On All Things Connected

Dan Bieler

I recently visited Telstra’s “Let’s Connect” Analyst Summit 2014 in Sydney, the analyst event of Australia’s incumbent telecom provider, Telstra. CIOs of MNCs who have been tasked with finding the right provider in Australasia need to balance their requirements for true end-to-end solutions that many tech services providers promise with the need for reliable collaboration and connectivity services as well as cloud and services solutions. Telstra brings attractive assets and strengths to the table regarding these core focus areas. My main takeaways are that:

  • Telstra is a strong network services provider in Australasia. European CIOs who require a strong network service provider in the developed markets of Asia and Australia find a solid partner in Telstra. There Telstra stands out through high-quality network infrastructure and local teams on the ground.
  • Telstra provides telco industry benchmark offerings in healthcare. Telstra is dedicated to becoming a strong provider of healthcare solutions that rely on connectivity. CIOs in the healthcare sector should look to Telstra for solutions such as hospital-in-the-home partnerships, medical care in remote communities, as well as telemedicine services.
  • Telstra takes organizational and cultural transformation very seriously. Telstra is fully aware of the need to transform its organizational structures and operating culture and to transform toward a more service- and software-focused telco. Although this transformation will take time to implement, CIOs will find a network service provider that is committed to transformation at the very top of management.
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Telstra Analyst Event 2013: Report From The Customer Advocacy Journey Triathlon

Dan Bieler

With Dane Anderson, John Brand, Tim Sheedy, Clement Teo, and Bryan Wang

During his keynote at Telstra’s recent annual analyst event in Sydney, the CEO compared Telstra’s customer advocacy strategy to a triathlon that the firm has just begun. We believe this is a fitting analogy for progress communicated at the event. Our main observations are:

  • Telstra’s transformation remains a work in progress. Telstra is not unique from other incumbent telcos that transform away from traditional — and declining — sources of revenue. Its strong domestic position seems secure for now. But its prospects in new market categories, both inside and outside of Australia, are less certain. Telstra is not particularly innovative compared with telcos in the US or Europe. Yet Telstra benefits from a credible transformation strategy, which it is gradually implementing. For instance, Telstra has built a large IP-based digital media file exchange platform to serve global broadcasters and content providers.
  • Telstra ought to use its Net Promoter Score to drive cultural change. Its strategic goal to push for world-class customer advocacy is a key differentiator and convincing. However, we believe Telstra needs to use the NPS also as a driver of internal cultural change. For instance, Telstra should analyse transactional processes of device purchasing from branded retail stores. Moreover, Forrester research indicates that NPS has limits when it comes to explaining the “how” and “why” of customer experience.
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How Telstra drove global operations through business-led IT Transformation

Charlie Dai

IT complexity hurts business.  This is even more the case when a company has global markets and global operations.  Essential business needs such as a single integrated view of global customers, or consistent product or service portfolio become impossible to achieve. 

Managing IT complexity to support business strategy is a big challenge for enterprise architects at large companieswhen a company has global operations, as is the case for Telstra, an Asia-based telecommunications firm. However Telstra’s enterprise architecture (EA) team addressed its challenges by focusing on customer engagement, improved agility, and global business strategy enablement.  Because of their success, they were one of the six firms to win the InfoWorld/Forrester Enterprise Architecture Award  in 2012. 

In my recent report “Case Study: Telstra’s Business-Led IT Transformation Facilitates Global Operations”, I analyzed the key practices they made to support their business-driven transformation. These practices include
  • Build Capability Maps To Link Business Goals And Transformation Requirements. Business capability maps are a core tool that enterprise architects use to identify their organization’s strengths and gaps and support its business strategy. Architects should leverage industry standard frameworks like eTOM to build a custom map, overlay it with business goals, and use it to assess and prioritize needed changes.
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