Telco 2.0 Methodology: Key Transformation Issues

In our introduction to the Telco 2.0 methodology we said the first step was to define the process. The process is about one thing — preparing your business for a Telco 2.0 (all-IP, modular, interoperable, layered) world. To do this we need to A-C-T, a “mash-up” of best practice in Strategic Planning, Product Innovation, and Change Management, created specifically for Telco 2.0:

1. Appreciate more fully the fifteen Telco 2.0 Key Transformation Issues that need to be addressed to stimulate sustainable growth.

2. Clarify how to approach Business Model Innovation (our next blog post on methodology). Most business people have an intuitive understanding of business models, but a documented and telco-specific framework provides the essential structure for debate and business model redesign.

3. Test the ideas in the market by focusing on a few key areas where new business models and customer propositions can be applied. Once you’ve learnt how to apply Telco 2.0 thinking you can then apply the lessons more broadly across the organisation.

The deep telco-centric insight is really in the tools that companies can use in defining Telco 2.0 strategy, rather than the process itself (which as noted is adapted from current corporate best practice). In this post we’ll drill down on the key transformation issues that need to be addressed. This situation analysis requires you to address six areas:

  • Market understanding (which our customers are generally already strong at, having plenty of feet on the telco street).
    Structural change insight (where they’re weak, so they hire us).
  • Business model (a challenge for vendors and operators with a technology- or engineering-centric culture).
  • People and processes (an even greater challenge, with telco culture self-identified as a key issue in our surveys).
  • End-user products and services (an opportunity given the slow evolution of core voice and messaging products).
  • Technology and networks (no point defining things you can’t deliver).

The inter-relationship of these is shown below:

What we’ve done is put some of the key issues onto this framework. Your market situation may vary from this example developed for one global equipment vendor, in which case you’ll need to hire us too adapt it to your circumstances.

Telco 2.0 Transformation Network (1)