But Everyone Else is Doing It!
BLOGGER: RUTH WASSERMAN
As a parent, one of the phrases I least enjoy hearing is, “But everyone else is doing it!” While this logic is annoying when heard from kids, keeping up with the industry and competitors can sometimes be a compelling business reason for action.
Why undergo a transformation project?
Coleman Parkes Research’s latest white paper, Transformation: Governance, Benefits and How to Get it Right, details the tremendous, worldwide interest in transformation. (Nearly) everyone is doing it! The white paper is based on a global study looking at transformation activity in the telecommunications service provider marketplace. Senior IT, operations and business executives at over 100 service providers around the globe who are engaged in some form of transformation activity, provided input into this important study concerning their experiences, challenges and the benefits seen from undertaking a transformation program. Care was taken to ensure that a broad cross section of C-level executives from technology and business were interviewed.
It is safe to say that transformation is on the agenda for many major service providers, as the majority of the people contacted did indeed have a program under way or planned. This was especially the case in the more mature markets. Overall, 74 percent of all service providers had either undertaken a transformation program in the last three years, were running a program, or were planning one in the near future.
Everyone is doing it...
And with fully two thirds of those undergoing a transformation project having completed more than half of the entire process, transformation has been on the agenda for some time. Furthermore, the majority of companies (69 percent) feel an accelerated need for transformation.
Why? Companies are focusing on transformation activities as a means to reduce costs and the dependence on legacy-based systems; improve business and technological flexibility and get product to market faster and more efficiently. Many service providers fear what will happen if they don’t transform, including spiraling costs (54 percent), failure to meet customer demands (48 percent) and a loss of the competitive edge (45 percent).
Overall, one third of service providers also see transformation as a vitally important and a top priority and a further two in five see it as important. There is clear evidence that transformation is important in developing regions. This is evidenced by the fact that four in ten service providers from Central and Latin America, Eastern Europe and Asia Pacific (excluding Australia and New Zealand) say that transformation is their top priority, significantly higher than service providers in developed regions. So to stay ahead of the competition and reduce operational costs, service providers need to undertake carefully planned transformation projects.
What is driving so many companies to transform? Stay tuned for the next post on the series to find out…
Edited by Eric Danis
Read the previous post on transformation: Why Transform? Don’t Ask the Caterpillar
[...] our last blog post in this series, we noted the worldwide interest in transformation programs. Why are so many service [...]