Telstra Bets Its Future On All Things Connected

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.
Read more

The European Mobile Workspace Will Transform The Way We Work

The provider of your mobile workspace solutions will be more than just a provider of technology. Rather, the right provider will have to bring the right assets and experience to act as a strategic partner during the mobile mind shift transition. Therefore, a critical first step to succeed is to understand the vendor landscape for mobile workspace solutions. Picking the right service partner is particularly hard across Europe where specific user requirements and a fragmented and heterogeneous vendor landscape make the selection a complex task. My new report, Market Overview: European Mobile Workspace Services, assists CIOs in drawing up a mobile workspace strategy by providing an overview of the market and the key vendors. It includes profiles of Atos, Computacenter, CSC, HP, IBM, Orange, Telefónica, T-Systems, Unisys, and Vodafone. The key takeaways are as follows:

  • Business processes define mobile workspace solutions – not vice versa. CIOs need to collaborate with business-line managers to analyze and define actual business processes that can be enhanced through mobile workspace solutions. Only then can CIOs define the business technology that is required to support the business.
  • The European mobile workspace market is heterogeneous. Forrester data highlights big differences in business requirements and approaches regarding mobile workspace solutions. These differences make it all the more important for the CIO to select a vendor that understands specific business requirements and national markets for mobile workspace solutions.
Read more

Telcos Prepare For A Roller Coaster Ride In 2015 And Beyond

We predict that the telecom business model will undergo dramatic transformation in 2015: a minority of telecoms will manage to reinvent their business model and will enter new market segments and get stronger. Meanwhile a majority of telcos will be bought or go out of business, thus driving consolidation.
At the same time, for business leaders, having access to quality network infrastructure represents a vital underpinning for their digital business and their long-term competitive advantage. We predict that by 2015 and beyond:
 
  • The telco business model will shift from sustaining to enabling critical infrastructure. Traditionally, the telco business model focused on sustaining operational efficiency of network infrastructure. In the years ahead, we predict a shift toward enabling solutions that support telco clients to engage with their customers more effectively. This mirrors not only the CIO’s shift from IT towards business technology but will also be the overarching theme during the transformation of the telco business model.
Read more

Vodafone Transforms Itself To Support The Business Technology Agenda

Today, Vodafone is already one of the largest global telcos, with direct presence in 60 countries and many more through partnerships. But while managed mobility remains at core of Vodafone’s strategy, the company’s ambition is to be “the world’s leading total communications provider in enterprise” and to “help customers to build better businesses.” Given its origin and history as a mobile-only telco, achieving this goal is a tall order.

Yet, Vodafone has changed dramatically in the last few years. It acquired Cable & Wireless Worldwide in 2012, which gave it access to a larger global network and to a larger customer base of multinational customers. In 2013, Vodafone sold its 45% stake in Verizon Wireless, which provided it with significant cash assets for M&A-related activities. At that time, Vodafone also launched its infrastructure Project Spring, which added another £7 billion to an existing planned spend of £12 billion.

Read more

Categories:

Don’t Wait For Governments To Pave The Way For Digital Business

Digital transformation will fundamentally affect all aspects of business and society, which makes it a key theme not only for business leaders and CIOs but also for governments. Over the past few years, several governments across Europe, as well as the European Union (EU) itself, have each developed their own respective initiative to address the opportunities and challenges that come with digital.

However, from the CIO’s perspective, these digital agendas often fail to meet the requirements that businesses encounter as part of their digital transformation projects. While the digital agendas emphasize infrastructure and regulatory initiatives such as broadband coverage and Net neutrality, CIOs and their business partners would also benefit also from a focus on “soft issues,” such as promoting an interdisciplinary approach in university education and driving digital innovation across industry sectors. We believe that:

  • Governments recognize the digital transformation of businesses and society . . . Governments across Europe, as well as the European Commission of the EU, have recognized the importance of digital transformation to their constituencies and citizens. Various digital agendas have been developed and rolled out over the past few years with great fanfare. But in the end, most digital agendas remain high-level discussion papers.
  • . . . but governments underestimate the magnitude of digital transformation. Most digital agendas lack any real insights about broader business requirements for being successful in the digital economy — let alone any technological insights. Digitization is treated like one of many initiatives rather than the overarching theme for business and society.
Read more

Observations From IFA 2014

I recently visited the oldest and largest global consumer electronics trade fair, Internationale Funkausstellung (IFA), which took place in Berlin. IFA highlighted that the technology sector retains its appeal. On IFA‘s 90th anniversary, about a quarter of a million visitors attended, and orders for products worth about €4 billion were placed at the event. IFA’s floor space was sold out, despite a 3% expansion.

Electronics companies from around the globe showcased a wide spectrum of connected devices ranging from the smart stove to the latest smartphones and computerized wristwatches — just a few days ahead of Apple announcing its latest gadgets. Although IFA primarily focuses on consumer products and services, many themes are of increasing relevance for CIOs. Leading CIOs recognize that consumer electronics have an impact on their business and that:

  • Consumer electronics offer a new customer engagement channel. Traditional businesses are facing opportunities to use the emerging possibilities for closer customer engagement that consumer electronics in combination with social media channels offer. For instance, smart TVs allow media companies to communicate in real-time with their customers while they watching or listening to the “product.” However, this requires a dramatic rethinking of marketing and sales techniques — something most of the traditional companies are struggling with. This underlines the need to view the “consumer electronics” opportunity as part of the wider digital transformation process.
Read more

Digital Transformation Is Changing The Market For Consulting - Observations About Internal Cultural Transformation At PWC

Professional services firms must go through their own digital transformation before they can truly help their customers. In this comment we highlight some observations we made during a recent analyst event of one of the leading global professional services firms PWC.

Digital strategies will not translate into sustainable business models for the digital age

PWC is right to state that customers do not need digital strategies. Instead, they need support to prepare themselves for the digital age. But digital transformation projects are not so much about technology as about redesigning business models and changing the style of doing business. Hence, successful CIOs recognize that:

  • Cultural transformation is the main challenge for digital transformation. Digital businesses map out customer journeys and ensure that products turn into plug-ins for broader digital propositions. These propositions are connected through data, communities, and collaboration. This allows the business to understand who the customers are and how they use products. It’s easier to implement technology innovations than to change habits and culture. Technology is only the catalyst for cultural and organizational transformation. The transition of Philips towards a vendor of digital propositions is a case in point.
Read more

Customer Privacy Is A European CIO Priority

With Enza Iannopollo

Customers value tailored offerings. And consumers are increasingly aware of what Forrester calls the “privacy-personalization paradox” — that is, the paradox between their desire for personalization and their desire to keep their data private. A 2013 survey by Populus for Sky IQ of 3,097 UK adults found that 51% believe it is useful for brands to know some information about them, and 53% trust brands to act responsibly with their data. The same survey reveals that 79% respondents are careful about the type of information they pass to organizations, 63% worry about how much personal data they have revealed online, 48% say that data privacy is an issue they think about, and 46% do not trust social networks with their personal data.

Read more

Telcos Badly Need Shock Therapy -- But Politicians And Regulators Are Unlikely To Support This Treatment

The other day, I met with the strategy director of a European telco. Let’s call him Art. We shared an informal discussion about the future of telcos. Personally, I am fairly skeptical about the prospects of telcos to recover ground – in particular in Europe.

Consumers are more concerned about the apps they use and the devices that they have than what connectivity they use, as I outline in the report The Future Of Over-The-Top Services. Forrester’s Customer Experience Index, which measures consumer perceptions of telco services, shows telcos near the bottom of all sector readings.

On the business side, data from Forrester’s Business Technographics® Global Networks And Telecommunications Survey, 2014 shows that business users trust systems integrators and independent solution specialists more than telcos with almost all voice and data service, because they feel that telcos don’t understand their specific business requirements as well.

Add an unfavorable regulatory environment — which, under the umbrella of the net neutrality debate, is about to close the door on commercial relationships regarding quality connectivity between content and network providers — and it becomes difficult to be wildly optimistic about the future of telcos. Yet, this is not where our discussion ended. Art pointed to three major issues where telcos will need shock therapy:

Read more

Business and network strategies will become more integrated as the network becomes the nervous system of the digital business

The enterprise network is the ugly duckling of enterprise technology landscape, looked at disparagingly by CIOs and often ignored by the business. The enterprise network is much less exciting than all the fancy projects like cloud, mobility, and big data.

Yet the enterprise network represents the vital underpinning for all these projects and increasingly evolves into a business-critical asset for companies looking to succeed in the age of the customer. It becomes the nervous system of the digital business. It facilitates deeper customer engagement by connecting manufacturers, sellers, and buyers of products in new ways, and it helps drive more operational efficiencies as it supports closer collaboration and connects previously disjointed assets. For most business leaders, the network infrastructure isn't much more than a utility, such as electricity or plumbing, while most CIOs don't know how to monetize it. This is a business challenge for the connected business as:

  • The enterprise network enables business success in the age of the customer. Customer engagement, internal collaboration, and the emergence of digital products and services all rely on a quality network infrastructure. Moreover, network data and business intelligence turn the network into an asset for monetization. As a result, the enterprise network no longer functions as a commodity but becomes a key function for success in the age of the customer.
Read more