Digital Transformations Re-Engineering for Success for the 21st Century

Apr 25th, 2017

Digital Transformations Re-Engineering for Success for the 21st Century

Digital services have impacted the providers in three major areas-revenue generation, enhanced customer experience, and cost optimization. Increase in the revenue generation through the use of modern upsells and giving digital services to the customers is a win-win situation for the entrepreneurs. In addition, there is an increase in operational efficiencies and cost savings. Gartner says, the shift “demands a greater fusion of business and IT capabilities among executives.” digital IT has improved customer experience that in result has a positive impact in multiple key performance indicators- encouraging average revenue per customer, reducing churn. According to Gartner digital business may have a new set of metrics to estimate success and modern incentive schemes for sales to enhance customer experience. This will significantly impact the growth of success. We shall read all these points in brief in this blog post.

Before learning about digital era it is important to understand the concept if two-speed IT and why was it not suitable for the rise of industrialization. Although two-speed IT once was a concept that any IT department should include in strategic planning to allow the projects to implement quickly without being distracted by balances and checks to maintain critical business IT operations, there were many downsides to it. It has been a decade, CIOs and IT leaders have experimented on two-speed IT in order to drive business agility. The result showed the number of downside overlapping the advantages.

Pull the Plug on Two-Speed IT

By separating the management of client-oriented front-end networks from deal-oriented and back-end processes, two-speed IT enabled companies to unclasp light for their digital inventions while sticking to traditional IT for complex back-end processes. The digital world was expected to bring new changes to the IT sector by making up a connection with traditional IT. the approach was sensed as a compromise that can delay the progress of the companies.

Disadvantages of Two-Speed IT

  • A disadvantage in the Talent: One of the most critical issue that CIOs face today is developing or recruiting top talent. Two-sped IT was found as the major reason for top talents getting stuck with the slow group. They had zero percent chances to switch to other opportunities. This led to talent drain. With two-speed IT, it was harder to acquire new talents.
  • Hurry up and Wait: Due to the slow speed, slow traditional test and release cycle of two-speed IT many fast-moving projects were delayed.
  • Inefficient End Stage Testing Process: in the traditional test and release process, testing is done at the end of the process. This was more time-consuming and expensive as all the errors were rectified at the end of the product development.


The Rise of the Digital Enterprise

These days we can think of IT organizations as a cloud-first and mobile model from the digital world. Adopting digital and agile approach can speed up software and engineering innovations enabling the organization to grow and run with the speed of customer expectations. With the help of cloud computing we can seamlessly combine cloud services with multiple developments.

The rise of digital enterprise has a huge impact on IT industry. According to Gartner Communication Service Providers (CSPs) create new revenue streams and improve consumer engagement with the help of digital transformation.

How Cloud Computing Enhances Agile Development?

  • It promotes work without interruption through number of unlimited testing. It also helps in staging servers to the development team
  • It allows developers to experiment through fast innovation by enabling faster testing and builds
  • It generates number of environments for testing all the features to allow many people work on different parts of the code
  • It helps in enabling readily available and secure source code that can be scaled companies can scale up to thousands of developers without infrastructure needs
  • It helps in automating feedback at all stages of a project. The instant feedback generated is valuable to software methodology

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Digital Enterprise Services Opportunity

As per Gartner’s prediction in the year 2017, 8% of the global revenue for CSPs will be generated from digital services. These digital enterprise services (DES) involves consumption or usage of offering like Over-the-Top (OTT) streaming video, machine-to-machine (M2M) services, and Internet of Things (IoT). since 2013, the growth rate of these services have increased at the rate of 30% . on the other hand, traditional services have grown only by 2%, it has become important for the organizations to enter the world of digital economy.

According to Gartner, one of the biggest growth opportunities for CSPs in digital services are VOD and IPTV with a projected $40.6 billion worldwide CSP revenue opportunity this year. The next big opportunity will be mobile Payments and Remittance. These services have generated revenue equal to $13.4.

Four Tenets of CSP Digital Transformation

According to Gartner these Four Tenets of Digital Transformation are for CSPs:

  • Strategy – Prioritize objectives, articulate vision and goals, develop a plan for digital transformation to encompass overall business strategy.
  • Technology – initiates open ecosystems, move from products to platforms, and adopt bimodal IT.
  • Process – methodologies and tools to increase agility, and data and customer centricity.
  • People – recruit more talent, and Collaboration and teamwork.

Best Practices

  • Establishing strong capabilities in product development.
  • initiating open platform strategies.
  • Defining a distinguished value proposition and optimizing customer journey.
  • Augmenting talent with IT expertise.
  • Implementing cubicles of excellence for service domains.
  • Developing deep industry vertical skill
  • Developing bridge form strategic partnerships and alliances.
  • Revising performance and incentive metrics.
  • Realizing organizational synergies.
  • Demonstrating stakeholder value

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