Human life is getting a digital makeover. Digital transformation has become the emerging driver of change and in many aspects, it has propelled global economy towards a new industrial revolution, completely virtual in nature, albeit mammoth in scale.
The telecommunications industry is at the forefront of this transition. The past decade has seen telecommunication companies invest heavily in digital technology, which has allowed them to tap into entirely new business models across industries.
Access to a globally connected network allows availability of real-time information, customer support, marketplaces and social programs that in totality enhance the entire experience.
According to McKinsey, there is a strong correlation between profit margin and the following five areas of IT for telecommunication companies:
- Robust Consumer analytics
- Digitization of order management
- Self-service CRM
- Simplified IT interfaces
- Business Automation
One can trace back telecom investments to these five broad benchmarks. Companies with digital capabilities in these areas can record a staggering profit margin of 43% compared to the average 21%.
The digital transformation of telecom is helping companies touch newer B2B horizons.
The focus is shifting towards B2B growth markets where potential looms at maximum. According to recent statistics from Bain, growth in business services will be greater than the same in consumer markets for telecoms. The consumer market is set to grow at approximately 0.6% annually while the B2B market can grow at 2.6%. The primary cause of this surge is an increased demand for Mobile Data & Addressable IT services.
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Source: Business 2 Community (View full article)
Posted by Dan Corcoran on December 15, 2017 06:34 AM
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