Telecommunications face real challenges today. Golden era of always-growing customer base and profits seems to be gone. Government regulation brings new competition to market, creating even more pressure to prices and margin erosion. New LTE licenses require brand new pricey infrastructure while return on investment is unclear. Customers are more experienced and demand both quality products and care. Changing the operator is easy, you even do not have to loose your phone number. Long-term investment into value-added products did not bring back profits compensating for losses caused by margin erosion caused by competition. Yes, there is a complicated chain of causes and effects. The reaction of management in nearly all companies is always the same - new "restructure" projects and headcount cuts.
There is a number of questions asked by the management in Telco business:
- How will the market react to new competition?
- How will virtual operators influence prices and market share?
- What could be the customers reaction to new tariffs - is there a chance to increase revenues or will it just trigger cannibalism among our current products?
- How to keep or increase customer satisfaction when there is a pressure to cut acquisition and retention costs?
- How to optimize company processes in order to gain required outputs faster and cheaper?
- Where to find reserves and how to do things in a new and more effective manner?
- How to use our human resources more effectively and optimize the use in shifts in call centers or company outlets?
In practice, the most common tool for solving these questions is a spreadsheet. Spreadsheet is a fine tool when the problem at hand is static. That means - it does not change over time. Spreadsheet is also sufficient when relationship between variables (cells) is liner. Spreadsheet is unable to cope with delays. When there is no delay in what you're solving (like reaction to your policy) you are still fine with the tool. Another thing you have to omit in your spreadsheet calculation is a feedback. All of the questions above form a feedback structure but you won't see it in you table. Any attempt to create circular structure will end up in error message in spreadsheet. Simply stated, you need a better tool to answer questions asked above or any other you may have.
We are working with Telco companies for years making them tools for answering their questions and teaching them how to build ones on their own. If you want to see a bit of our projects, have a look here: