Digital transformation and digitization are overused terms that mean everything and nothing at the same time. The true meaning of digitalization is the simulation of the real, analog world in a computer compatible digital format.
For many telcos, digital transformation is synonymous with modernization of business processes to better compete with over the top (OTT) digital disruptors, such as Skype, Netflix and WhatsApp.
A 2016 study of evolution of the digital side across different industries found that telecom was the most advanced sector, ahead of financial services and public sector, while utilities and manufacturing were the worst performing.
Digital transformation, here we are
Three key things are relevant to understand why
1) the strict regulatory framework in which telecom operates
2) the multitude of technology stacks that have accumulated due to the rapid pace of innovation in the industry over the last 20 years
3) a multiplicity of IT systems inherited after years of consolidation across the sector
Do you want to know more about the digital transformation of telcos? Here the white paper by James Crawshaw.