Telco Transformation: Preliminary research results show large variation in strategy and progress

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It is a couple of weeks since we started a piece of research focused on the transformation of Communications Service Providers (CSPs).  We thought it might entice more CSP executives to respond to our survey if we gave you a peak at some of the results.  A full analysis will be made available to survey respondents that fully complete the survey.

The survey itself is available here and will take 10 minutes to complete.

It covers:

  • CSP aspirations for digital services
  • Optimal investment levels for digital services and how close CSPs are to this at present
  • Key success factors for implementation of digital services and progress in addressing these

Initial research results

Turning to this last point around implementation key success factors, below is a chart summarising the results of the first 30 or so respondents with two factors revealed (we don't show more lest we prejudice you before you complete the survey):

CSP transformation, summary chart.png

Source: CEP Transformation Survey, Preliminary research results only

It is clear that, on average:

  • 8 out of 9 of the key success factors are rated as close to or above 'Important'
  • 2 factors are rated as being particularly important - 'Senior management support' being one of these. 
  • All of the factors will take more than 2 years to 'resolve' with several close to averaging over two years (including 'Prioritising digital services'). 


So, in summary, there is a lot of important stuff to get right if CSPs are to transform themselves and successfully adopt new business models and services and it is going to take a while to get there.


Digging a bit deeper shows wide variation

As any statistician will tell you, averages are awfully misleading.  In this case, what they fail to show is the variance from respondents in the two factors we have revealed - 'Senior management support' and 'Prioritising digital services'.  The charts below show the distribution of responses among all participants (with the bubble size representing the proportion of respondents) for both factors.

CSP transformation, more details.png

Source: CEP Transformation Survey, Preliminary research results only

What these show is that:

  • While there is consistency among respondents about the importance of senior management support for CSP transformation, there is huge variability over progress.

o   Worryingly, few respondents feel they yet have the support of senior management - Only 14% rated it as 'Competed, In hand'

o   Perhaps even more worrying is that 25% are unclear on how to progress winning over their senior management team

  • For 'Prioritising digital services' things are even more varied:

o   Wide scope of responses on both importance to change and organisation progress

o   Around 28% feel it is 'Irrelevant' or of 'Limited Importance' and most of these, unsurprisingly feel it will take more than 2 years to resolve or are unclear how to resolve (but presumably don't care much about this) - the 5 bubbles in the bottom right

o   Conversely, 46% feel it is either 'Important' or 'Critical' and are equally sceptical about their organisation's ability to resolve - the 4 bubbles in the top right

 

Once we have sufficient responses, we will share the detailed results with respondents and give insight about differences by region and, potentially, by individual CSP.   Will also explore how big CSPs think new digital services could become for them over time (in revenue terms) and how much they should be investing (as a proportion of their opex and capex budgets).

The survey itself is available here and will take 10 minutes to complete