Low vs. High Digital Transformation Readiness in the mobile operator world
If you understand DTR https://bit.ly/DTR-Par1 and its individual scenarios through customer Touchpoints https://bit.ly/DTR-Prt2, then the next level is to understand the impact of high and low DTR on the operator’s business, any operator.
Assuming DTR 1 is the lowest level of readiness (no digital service awareness, no unification of data repositories, no ubiquitous experience through touchpoints, no user’s mobile device lifecycle information, etc.) and DTR 5 is the ultimate readiness level for the digital service world, then the practical implications to being between these two extremes are expressed in the financial parameters of Revenue, ARPU, EBITA, NPS, and Churn. REN (Revenues, EBITA & NPS) represents the core of this KPI.
DTR 1 means unequivocally that the operator is literally leaving Billions of dollars on the table. Period.
He is not maximizing his revenues, he is not optimizing his EBITA profitability and he is losing customers due to low NPS (low satisfaction).
At DTR 5 it is the exact opposite. He is taking back control over any monetization opportunity across all customer Touchpoints and interaction events https://bit.ly/DTR-Prt2 and customers are intimately retained through high satisfaction and low churn.
Operators’ CFOs and CIOs must convene on a daily basis to ask themselves what is their DTR level. Having a clear view of current DTR status can help plot a path towards higher DTRs with a clear positive impact on the operator’s REN.
This piece is the third part of a series of articles on Digital Transformation Readiness, and how can it be used to plan and execute for success.
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