A study done by Ericsson and Ernst & Young identified 5 successful strategies for the most efficient, and productive telecommunications companies: experience, simplification, smart asset, organisational capacity and cooperation.
Studying the winning strategies
The 5 key operating principles in the study by Ericsson and Ernst & Young that telecommunications companies can use to get the best return on their capital investment are the winning strategies for success in terms of efficiency.
Experience and simplification
The first feature is the so-called “experience centric” approach, focussed on Key Performance Indicators (KPIs), which allow understanding of “what” customers are asking for, “when” and “how”. The results obtained in this phase can be used to complete the organisational structure and thus to build new OSS (Operations Support System) and BBS (Business Support System) systems. Another distinctive feature of an efficient telecom is that of simplification, meaning the ability to reduce as much as possible the elements of complexity in order to lower costs and increase revenue. The principle can be applied through a series of actions such as automating key processes, standardising non-critical activities, slimming down the portfolio of offerings, products and services, modernising support systems and facilitating interactions with customers.
Organisation and cooperation
Then there is what is called the “smart asset”, which allows a company to centre on its own asset and share knowledge and resources. Just as important is the organisational capacity to increase income and reduce costs using synergies and sharing knowledge between departments and divisions; the so-called “organisational leverage”. Finally, the most efficient Telco focus on cooperation, signing agreements to strengthen themselves in terms of innovation and reduce the interval between the time that a product or service is designed and when it is effectively put on the market.