Tag: data-driven

The data-driven telco: How to progress

Becoming data-driven is an evolving journey

Telcos have started on the path to leveraging data more fully but techniques, technologies and their implications are continuously emerging and evolving – posing new opportunities and challenges for the teams responsible for plotting their course.

Although somewhat overused, the “data-driven” refrain provides a banner under which the Chief Data Officer (CDO) and other teams throughout the telco can remind the organisation of the importance of the work that they are doing.  As new technologies become available and capabilities such as automation progress in their sophistication, there will continue to be a steady stream of demands on the data team from across the organisation.  There will also be an increase in demand from outside the organization as telcos begin to play in multiple new ecosystems.

Enter your details below to download an extract of the report

STL Partners conducted primary and secondary research to determine the current priorities for telcos that have progressed some way down the data-driven track.  During our primary research, we spoke to four Chief Data Officers (CDOs) – or equivalent – at Orange, Zain, Telefónica and Vodafone and asked them about their core focus areas in the short- and mid-term and how they were driving forward the data-driven telco agenda. Topics for discussion included:

  • Their vision and expected future strategy
  • Their current focus areas
  • The work that they are undertaking to improve organisational structure and culture
  • Their priorities for future technology roll out.

As shown in the figure below, we note that some areas of priority remain unchanged from previous years and continue to be a focus in 2023, while new ones (shown in red) are appearing on the horizon.

Priorities for the CDO and their team

Roles of data-driven telco CDO

Source: STL Partners

Priorities are evolving from being focused specifically on accessing data and other relatively discrete A3 projects, to much more strategic and organisation-wide activities. As such, the scope of the CDO role is expanding.

Table of contents

  • Executive Summary
    • Recommendations
    • Vision and strategy
    • Organisation and culture
    • Technology
    • Next steps
  • Introduction
  • Priority 1: Select the right internal focus
    • How to select the most impactful projects
    • How to maintain a pipeline of successful projects
  • Priority 2: Create a joined-up organisation
    • A joined-up organization structure
    • Promoting the data culture
    • Skill sets of the Chief Data Officer (CDO)
  • Priority 3: Delivering a useable data set
    • Building a long-term data quality practise
    • Hybrid-cloud data deployment
  • Priority 4: Building data tools for all
  • Conclusion

Related research

 

Enter your details below to download an extract of the report

Breaking down silos for telco adaptability

Dismantling silos and going agile

Traditionally, telcos have been managed top down and organised around the main functional units of network, IT, marketing, sales, customer care, finance and shared services (e.g., HR, legal, facilities). Each unit (silo) has had its own objectives, budget and systems, which may have come into conflict with those of other units from time to time and/or resulted in overlapping efforts and duplication of work. More recent thinking shows that there are benefits for those that can break away from siloed structures, but telcos have struggled to do so.

This report looks at the ways in which some telcos have approached the task of dismantling silos and going agile. The researcher was not an agile specialist but has experience of such transitions from a strategic perspective. For the purposes of this report, agile working is defined as a system of work where cross-functional teams are formed around critical tasks. Team members work towards a common purpose and are autonomous, allowing for fast decision making. A typical agile organisation structure comprises tribes, chapters and squads. The nuances of different agile models are not discussed in depth. The focus is to identify lessons and recommendations based on real-world telco experiences.

In each of the five case studies we address these questions:

  • Why was the action considered? What was the rationale for the telco to embark on the transformation? What were the key strategic drivers?
  • What was the process of change? Over what timeframe was the transformation implemented, and how was it achieved?
  • What was implemented? Which structures were used, and which parts of the organisation were impacted?
  • What were the outcomes? What were the successes and challenges faced?
  • What lessons were learned? What should other telcos consider when looking to breakdown silos?

Enter your details below to download an extract of the report

The silo situation

Traditional telcos divide employees into functional silos, grouping them based on their job titles, responsibilities and skills. These groups focus on group goals and tasks which can result in a “silo mentality” where information, resources and skills become trapped as there is limited incentive for communication. Figure 2 shows a typical silo organisation structure.

Typical silo organisation structure seen in telcos

Silos can inhibit organisational productivity and innovation, as many critical activities fall across multiple functional areas. For example, customer proposition development includes the activities of identifying needs and developing products, pricing, advertising, sales strategy, customer experience and care, subscriber acquisition and retention costs (device subsidies) and overall business casing/budgets (see Figure 3). Each activity requires collaboration between different functional teams, who may have different agendas – it also results in confusion as to where responsibility for customer proposition development lies overall.

Cross silo inputs for customer proposition development

Table of Contents

  • Executive Summary
  • Introduction
  • The silo situation
  • Benefits of breaking down silos
  • Why should telcos break silos now?
  • What prevents telcos from breaking silos
  • Case Study 1: Going agile in commercial teams in a medium-sized opco
  • Case Study 2: Going agile in part of a large multinational telco
  • Case Study 3: Deploying agile at scale at Telstra
  • Case Study 4: Deploying agile working in a separate entity (TELUS Digital)
  • Case Study 5: Deploying agile working in stages (Swisscom)
  • Conclusions
  • Recommendations
  • Index

Related research

Enter your details below to download an extract of the report

Data-driven telecoms: navigating regulations

Regulation has a significant impact on global communications markets

Telco relationships with telecoms regulators and the governments that influence them are very important. For data-driven telecoms, telcos must now also understand the regulation of digital markets, and how different types of data are treated, stored and transferred around the world. Data-driven telecoms is an essential part of telecoms growth strategy. The massive growth enjoyed by the global tech giants, in contrast with the stagnation of growth in the telecoms industry, provides a significant lure for telcos, to harness data and become digital businesses themselves. Of course, this necessitates complying with digital regulations, and understanding their direction.

Additionally, by participating in digital markets, and digitising their own systems, telcos are necessarily working with and sometimes competing against the global digital, for whom this legislation is essential to their ongoing business practices. Political reaction against some practices of these digital giants is leading to some toughened stances on digital regulation around the world, and a tarnished public perception.

Most businesses are impacted by digital regulation to some extent, but it is those most deeply embedded in digital markets that feel it the most, especially the digital hyper-scalers. What do Google, Meta, Microsoft et al need to do differently as digital regulations evolve and new standards come into play? And for telcos, apart from compliance, are there opportunities presented by new digital regulations? How can telcos and the digital giants evolve their relationships with the entities that regulate them? Can they ultimately work together to create a better future based on the Co-ordination Age vision, or will they remain adversarial with lines drawn around profit vs public good?

What is digital regulation?

The report covers two important aspects of digital regulation for telecoms players – data governance and digital market regulations.

It does not cover a third theme in digital regulation – the regulation of potentially harmful content and the responsibilities of digital platforms in this regard. This is a complex and far-reaching issue, affecting global trade agreements, sparking philosophical debates and leading to some tricky public relations challenges for digital platform providers. However, for the purposes of this report we will set aside this issue and focus instead on data governance and the regulation of digital markets which have most direct relevance to telcos in particular.

Data governance is a large topic, covering the treatment, storage and transfer of all kinds of data. Different national and regional regulatory bodies may have different approaches to data governance rules, broadly depending on where they find the balance between prioritising security, privacy and the rights of the individual, against the need for a free flow of data to fuel the growth of digital industries.

Regulation around data governance also naturally splits into two areas, one concerning personal data, and the other concerning industrial data, with greater regulatory scrutiny focused on the former. The regulation of these types of data are necessarily different because concerns about privacy only really apply to data that can be associated with individual people, although there may still be requirements around security, and fair access to industrial data. Examples of data governance regulation are the EU’s General Data Protection Regulation (GDPR) concerning personal data, and The Data Act concerning industrial data, or the Data Privacy and Protection Act in the US. All of these examples will be discussed in greater detail in the main body of the report.

Enter your details below to download an extract of the report

Significant types of digital regulation

Source: STL Partners

Regulation specific to policing digital markets has emerged when regulatory bodies decide that general competition law is not sufficient to serve digital markets, and that more specific and tailored rules or reparations are needed. Like other forms of competition law, this regulation aims to promote fair and open competition and curb market participants deemed to possess significant market power. Regulations of this nature are always to some degree controversial, because the exact boundaries of what constitutes significant market power have to be defined, and can be argued to be arbitrary or incorrectly drawn. Examples of this type of regulation that will be discussed in depth later in the report are the Digital Markets Act in the EU, and the Innovation and Choice Online Act in the US.

A global perspective

The market for digital services is by its nature global. Digital giants like Google, Meta, Amazon and Apple are offering a wide variety of digital services, both b2b and b2c, all over the world. Those services will be provisioned using storage, compute power, and even human workforce, that may or may not be located in the country or even region in which the service is being consumed. Thus digital regulations, especially those concerning data governance, are globally significant.

A global market

Source: STL Partners

This report places significant focus on the regulatory agendas of the European Union and the United States. This is because these are two of the most significant and influential global powers in setting trends in digital regulation. This significance is gained partly by market size – in a global market such as that for digital services, regulations that cover a large number of potential customers are going to have more weight, and the European Union has a population of roughly 447mn, while the population of the US is around 332mn. The US also maintains its significant role in setting the digital regulatory agenda by actively seeking influence and leadership, while the EU has gained influence by being one of the most proactive, and stringent, regulatory bodies in the world.

Table of Contents

  • Executive Summary
  • Introduction
  • Important trends in data governance regulation
    • Regulation of the processing, storage and use of personal data
    • Regulation of industrial data
  • Regulation of digital markets
    • The Digital Markets Act: Governing digital monopolies
    • The US approach to digital market regulation
  • A global perspective – how EU and US digital regulation trends are spreading around the world
    • The Globalisation of the EU Regulation: The Brussels Effect
    • Digital Economy Governance in the US Foreign Policy
    • Digital in the EU-US Transatlantic Relationship
    • A Patchwork of Digital Agreements in Asia
    • A New Global Framework on Cross-Border Data Flows
  • Conclusion
    • Advice for Telcos

Related research

Enter your details below to download an extract of the report