
14 | Study
2. The customer-centric philosophy:
From vision to best practice
"We have got to look at what customers expect us to do and deliver it. The
biggest opportunity is to leverage that. We know if we use data effectively,
give them the right products, services and added value, it will turn our
customers into fans. If we don't, we will lose them."
James Morgan, head of CIC, Telefonica O2 UK, at Data Summit 2010
Traditionally, telecom operators in Europe see customers as a technical chal-
lenge. This was a valid approach when mastering the technical dimension
in itself gave you the edge over your competitors. At the time, most telecom
operators were more or less monopoly providers enjoying high margins with
loyal customers. Those times are long gone.
The focus today must be shifted from the technology to the customers. This
shift requires, most of all, a change in the company's philosophy. All their
values, needs and consumption patterns must be at the core of the corporate
strategy and serve as the benchmark for the entire organization. This new
perspective requires a change in customer service processes and can turn
innovation processes upside down. Moreover, companies' M&A initiatives
will start to concentrate on other, more customer-centric target companies
as the focus shifts away from technology.
In fact, our projects in the telecom industry show that management is mov-
ing in the right direction, although this move needs to be faster and more
vigorous. Over the past few years, the focus was on fixed-mobile integration.
Today, companies are trying to understand their customers better. We have
also noticed that telecom operators often underestimate the amount of
change involved, as the transformation usually takes years to fully unfold.
But where is the starting point? The process starts at the very top, where
senior management has to develop a passion for the customer and lead the
way towards the corporate philosophy. They need a vision and then have
to define a customer-centric strategy that is anchored in the overall mid to
long-term business strategy based on this vision. Every aspect and every
strategic move should be considered from the customer's point of view.
The executive board should constantly push this agenda. They must make
it clear to the entire organization that the exercise is not a fad, but a funda-
mental change in how business is done. With this persistence, the whole
organization's mindset will change over time.
Kommentare zu diesen Handbüchern