The rise of the digital economy has created both opportunities and threats, giving rise to one of the industry’s most popular buzzwords; digital transformation.
February 7, 2017
The rise of the digital economy has created both opportunities and threats, giving rise to one of the industry’s most popular buzzwords; digital transformation.
Telecommunications has traditionally been one of those sectors which has been deemed safe, after all, when will communications become redundant? This idea and perception of safety fuelled confidence in the operators, but a wave of internet ready organizations have threatened this cosy lifestyle. Adapt to the digital era or die is the overwhelming message operators are hearing on a day-to-day basis, but how good are they at changing their ways?
According to Jennifer Kyriakakis, VP of Marketing at Matrixx Software, the transition is not exactly going to plan. Kyriakakis has a slightly more pessimistic view on the industry, predicting that as many as 70% of digital transformation projects will end in failure.
“We’re seeing big mistakes being made and two approaches seem to have emerged, neither of which seem to provide the results which the operators are looking for,” said Kyriakakis.
“Firstly, you see these large scale, wholesale IT digital transformation projects which are 2-4 years long and cost hundreds of millions of dollars. In a lot of these examples, executives are taking the old school business model and trying to adapt it to the new world. They are trying to redesign business processes, but they aren’t taking a different approach to how they implement IT systems, nor how they stage the roll-out those or measure ROI.
“Some of these projects are already beginning to falter, and some are looking like very expensive mistakes.”
This is hardly something which will surprise the industry. Executives who found success in the 90s and 00s, prior to the disruption of the OTTs and digital-native competitors, are trying to use their experience to address the challenge. Experience is critical in tackling any problem, but only if experience says to adapt. If experience says an idea worked 10 years ago, therefore we can solve today’s business problems, there could be a major issue.
“The other approach is to leave the IT system intact and focus on the customer engagement layer instead,” said Kyriakakis. “The big idea on the market at the moment is that digital transformation starts from your customer’s perspective working back in.