Presented by Covalensedigital

Value Creation in the digital world

The old order changeth, yielding place to new,” wrote Alfred, Lord Tennyson in his poem “The Passing of Arthur.”

This is a truism of life which has eventually caught up with the world of the telco.

As various forces converge to sweep the world into the digital era, keeping the ship afloat is certainly a pressing priority.

Deciding which direction represents the best growth trajectory is a major consideration for players in the telco industry.

This article is the first of three seeking to cast some light on the characteristics of that direction in the context of the telecom operator and the service provider.

Value levers

“Value” is the pillar on which organizations seek to compete. There are three broad domains in which value is created and one which preserves value.

Value creation is related to customers, operations, and products/services, while preservation comes from governance.

In the telco world, which has historically been network-centric, value creation has come from connectivity and bandwidth – both physical and for services such as the Internet and private enterprise networks like VPNs.

Operations and product/service development were geared around these services.

With the steep growth in OTT services brought on by the digital era – through cloud, social media, content, and applications – telcos have been evolving their business models.

This was inevitable given the slowing growth in subscriber bases though the COVID-19 crisis has emphasised the demand for even greater and more reliable connectivity.

As services demand grows, triggered by environmental factors as well as innovation in various walks of life, value creation hinges on excellence across all domains.

However, competitive differentiation and growth trajectories hinge on core competency anchored in one of the three domains.

The next two articles in this series will explore the levers which create value in the three domains, using the context of the digital telco.

Click here to learn more about Covalensedigital’s products and services for telcos.

This article was published in partnership with Covalensedigital.

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Value Creation in the digital world