The What, Why and How of Digital Transformation in Telecom

Mary Evans
Last updated: 13 May 2022

The What, Why and How of Digital Transformation in Telecom

Mary Evans
Last updated: 13 May 2022

You might have come across the term digital transformation before. But what is it and why is it so important? Is digital transformation even relevant? In this article we will underline and explain what digital transformation is, why it is so useful and necessary, and how you can transform your telecommunication company.

What is digital transformation?

Digital transformation (DTX) can be hard to understand. Especially since the term is often confused with the terms digitization and digitalization. 

Now since the terms are similar to digitization it is important to make the distincti

on. And these terms do all connect with one another. However, together they form the roadmap to full digital transformation.

The first step on the way to DTX is digitization. This covers the first step to digital transformation by converting all analogue data and processes into digital. Digitization is done by scanning documents or manually inputting all the data into a system for example.

Digitalization on the other hand takes it a step further. It consists of using digital technology to change business processes. For example switching to cloud based data or by establishing automated workflows.

Digital transformation is the last step in the process. This step is the most intricate and difficult, but also the one that revolutionizes the companies the most. When you look into digital trans

formation it’s about how you can update your company with technology and software in order to ‘transform’ how you operate. 

Instead of transitioning and improving the processes, digital transformation builds new systems using new and disruptive technologies. It uses things like Artificial Intelligence, Robotic Processing Automation (RPA), or the Internet of Things (IoT).

Why telcos should digitally transform their services

There are multiple reasons and arguments for why telcos should think about digital transformation. Below we have listed three of the most important.

Reducing the labor shortage

There is a big labor shortage in the world and the customer service sector is no exception. 

One of the best solutions for this shortage is digital transformation. Many of the tasks employees do are repetitive. Think of checking customer’s usage or network, or even upgrading subscriptions. All these repetitive tasks can be automated digitally easily through chatbots, email bots, or voice bots. Therefore, many hours can be saved from overexertion. 

Not only does this save the employees time, it also gives them a better work environment and increases their motivation and productivity. as a survey conducted by Workflow found that automating processes simplifies these and enhances efficiency. It was established that 74% of employees find automation increases job satisfaction. 

On top of this, happier workers seem to be more productive. The university of Oxford found that in weeks when workers self-reported to be happy they were 13% more productive. 

These findings suggest that automation of processes not only reduces the labor shortage but also increases efficiency and satisfaction among employees.

Increasing Revenue 

Another reason for digital transformation is an increase in revenue and decrease in costs. According to a survey by Gartner 56% of CEOs believe that digital improvements have been a cause of revenue growth.

As stated previously, automating processes increases the employees efficiency and productivity which in turn leads to saving costs. Digitally transforming processes are in and of itself more efficient as there are set paths and workflows the technology can follow. 

Another way revenue increases is that price and propositions are no longer differentiators between telcos according to customers. Instead, service is increasingly becoming the disticting factor. 55% of customers would pay more for the services if a good experience is assured.

All together, digital transformation brings an increase in revenue and reduction in costs.

Improving Customer Experience

It was previously discussed that customers would pay more for a good experience, following this lead customer experience should be improved. A simple and necessary way to do this would be to digitally transform customer service.

Customers have high expectations of telecommunications services. They are expecting to have quick and easy access to digital customer service to handle complaints. 

These needs have only increased during the COVID-19 pandemic as people were increasingly working from home. When the connection cuts off at home employees become even more stressed as it interferes with their work. their employer is also not able to see them being online so the problem has to be solved quickly.

In order to rise to the occasion of the customer expectations and needs telcos should invest in digital transformation. 

It has been found that 67% of customers are more likely to choose using self-service than they are to speak to a customer service employee. Additionally, 92% of customers would choose to use an online knowledge base that is personalized to their needs. 

It is clear that people want immediate service that is quick and easy, by transforming the customer service they can do this themselves through a knowledge base such as a chatbot. This chatbot is able to answer their questions and handle the complaints without making the user wait. These can also all be integrated into omnichannel customer service.

How to digitally transform telecom services

The first step in digital transformation is digitization. all processes and data that are analogue have to be digitized into a digital platform. This can be anything from sorting emails, to automate HR activities, Finance or IT tasks, and finally to digitize customer service. 

The easiest way to digitally transform your company is to invest in a service that can implement software for you. This way it is less expensive and less time consuming than trying to digitize and digitalise everything yourself.

The first thing that often comes to mind with digital transformation is customer service. This is clearly a big aspect of digital transformation, as it is the sector closest to the customers. Therefore at Freeday we have created a digital employee, Jennifer, that can be onboarded within weeks and can handle all repetitive tasks your employees are doing. An example would be checking data usage or checking for problems. 

Another type of tasks our digital employees can take over is on the commercial side of things. They are able to upgrade subscriptions, temporarily stop subscriptions, among other tasks. This lightens the workload of sales agents while giving the customer a pleasant experience.

Other departments behind the scenes can also benefit from digital transformation:

HR activities can include absence management, onboarding, pay-rolling, meeting management and more. These tasks, and more, can all be fulfilled by our digital HR assistant Jessy.

Whereas the financial section can be transformed by our digital employee John. The tasks he can fulfil include credit checks, bank reconciliations, creating, sending, and following up on invoices.

The IT department can also be further transformed by our digital employee Richard. He can open, close, and manage support tickets. While he can also create accounts, reset passwords, setup Wi-Fi and conduct troubleshoots. 

Concluding remarks

It is clear that to further revolutionize the telecommunications business digital transformation needs to take place. This digital transformation of the industry will improve customer and employee satisfaction and cause economic growth while decreasing the job shortage.

Check out our digital employees’ pages or contact us for more information on how best to implement digital employees for your situation and need.

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