Verizon’s Q3 earnings highlighted a major struggle for incumbent Communications Service Providers. While wireless and broadband consumer units saw healthy growth, enterprise/B2B revenue was down 4.4%.
Communications Service Providers are facing stiff competition for enterprise business from Cloud and Cable providers, and must adapt quickly to this new environment. Verizon’s CFO, Francis Shammo, talked about the need for process improvement and operational efficiency, and about expanding their vertical solutions in healthcare, energy and fleet management. These sound like smart goals, but taking a traditional technology approach could take far too long.
Traditional Transformation Approach
The traditional approach to streamlining processes and simplifying back office systems is “big bang” system transformation that delivers value at the end of relatively complex, long, projects, combined with “stackware”, where many applications like ordering, care, and billing are all “stacked” on top of each other and glued together using custom-built interfaces. This approach is the default, because the perception is that the interdependencies across existing systems make it impossible to do anything else.
Digital Transformation Approach
But now, companies in many industries are proving that technology transformation is possible in a much more incremental, low risk, way. In my recent ebook, I recommend thinking of transformation using a “T” approach (Tip #5 in the “Top 5 Ways to Win More Enterprise Business” eBook), where a common process layer is implemented on top of existing systems to enable rapid process digitalization, enable organizational command, control, and deliver continuous process improvement. This is the top of the “T”. Next, focus on streamlining a specific stage in the customer journey. This is the bottom of the “T”. After finishing the initial “T”, expand the bottom of the “T” by delivering additional stages of the end-to-end journey further streamlining operations and improving profitability.
Pega enables organizations to transform using the “T” approach with all of our Communications and media solutions, and for Enterprise/B2B customers in particular our Order Capture and Configuration solution and Fulfillment Control Center solutions use this approach to significantly reduce the time it takes to get winning enterprise proposals priced, contracted and fulfilled.
But don’t take my word for it. Watch this 2 minute video and learn how Telstra improved delivery times for its B2B IP services by 70%. Peter McDonald, General Manager of Process Excellence, states “We’ve got to get the basics right but the ‘wows’ are things like going from 70-80 days to provide a service for a B2B transaction and getting it down to 8 or 9 days”. Telstra is transforming with the “T”, and it’s working.