"Digital transformation is no more than business as usual unless it results in changes to the nature and the financial performance of a telecoms business."
Digital transformation (DTx) is considered to be critical to telecoms operators' long-term strategies, but it is difficult for operators to articulate what tangible financial effects DTx is having. Analysys Mason's research suggests an emerging correlation between DTx ambition and productivity measures and cash generation.
This report ranks operators by achievement and ambition in DTx: in network virtualisation, cost transformation, digital experience and digital services, and shows if, where and to what extent DTx is beginning to have an effect on a number of largely financial outcomes.
In this report, we answer the following questions:
- How important is digital transformation to operators? Is it genuinely transformational or does it simply represent the latest set of incremental changes to processes and products?
- What is the evidence that digital transformation strategies are having a positive impact on the following areas of operators' financial performance?
- profitability, productivity and cash flow
- the balance of assets in businesses
- their valuation.
- What should a successfully executed digital transformation strategy deliver in financial terms?
Digital scores (ambition) versus enterprise
value/EBITDA multiple, FY2017