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Benefits of Digital Transformation for Communications Service Providers (CSPs)

Digital transformation is defined as the process through which businesses implement technologies across their business processes in order to be a driver for change (Digital Transformation, n.d.). This process of change offers a myriad of benefits, ultimately, with the purpose of developing new value for a company’s employees, shareholders, and customers (Digital Transformation, n.d.). 

The key technologies used to implement digital transformation include artificial intelligence (AI), process mining, big data, machine learning, internet of things (IoT), and cloud computing (Javaid, 2022).

The benefits of digital transformation include:

1. Increased agility

According to Aaron De Smet, agility is the ability of a business to adapt, change and renew itself quickly in order to succeed in an environment that is turbulent and rapidly changing (The keys to organizational agility, 2015).

Businesses can only truly experience agility in their projects and operations when implementing a digital strategy (Alexander, 2021). Digital technologies can be utilised to do the heavy lifting across your processes, speeding up data delivery, reporting, yield, and decision making, as well as allowing your team to become more agile (Alexander, 2021). According to Besfamylnyi, Makarchuk & Tsesliv, the top benefits that agility will bring to your business are:

  • Continuous improvement (CI)
  • Better customer experience
  • Supply chain efficiency and
  • Improved budgeting
2. Cost savings

In order to cut costs in the Telecoms industry, you need to maximise profits (Besfamylnyi, Makarchuk & Tsesliv, 2021). According to research by Capgemini Consulting, a successful digital transformation strategy can lead to a 26% increase in profitability (Besfamylnyi, Makarchuk & Tsesliv, 2021). According to a report by the SAP Centre for Business Insights and Oxford Economics, 80% of businesses that successfully implemented digital transformation reported an increase in profits; 85% reported an increase in their market share, and an average of 23% expect a higher revenue growth than their competitors (Rander, Koch and Wellers, n.d.).

3. Improved customer experience (CX)

According to Imbroda et al. (2021), CX is arguably the biggest factor driving customer loyalty and retention and therefore driving revenue growth. 

Digital transformation provides you with the tools to ensure a 360-degree customer experience, ensuring a seamless customer journey across all channels (Besfamylnyi, Makarchuk & Tsesliv, 2021). Utilising big data and AI to collect, analyse and structure data from end users provides you with valuable insights to drive your customer experience strategy (Besfamylnyi, Makarchuk & Tsesliv, 2021). Your customer experience can then be personalised to suit your customers’ needs and preferences, resulting in a higher rate of customer satisfaction.

4. Open API platform architecture

Digital transformation allows for the implementation of an open API platform architecture (otherwise known as public API) which gives a company the ability to respond quickly and flexibly to market changes, as it allows for easy access to a variable amount of clients (Besfamylnyi, Makarchuk & Tsesliv, 2021). According to Besfamylnyi, Makarchuk & Tsesliv (2021), the benefits of an open API platform are that it:

  • Allows clients to easily interact with and understand services
  • Forms the basis for building APIs that are easy to use, reliable, adaptable to change and scalable
  • Enhances your opportunities for cooperation and collaboration

In accordance with the Economist Intelligence Unit, seventy-seven percent of today’s Telecoms businesses claim digital transformation to be their pivotal strategic priority. (Besfamylnyi, Makarchuk & Tsesliv, 2021). In order to easily adapt to market changes and to remain competitive in the Telecoms industry, Communication Services Providers (CSPs) need to embark on a journey of digital transformation.


Accenture. n.d. Digital Transformation. [online] Available at: <>

Alexander, M., 2021. 5 benefits of developing a digital transformation strategy. [online] TechRepublic. Available at: <> 

Besfamylnyi, K., Makarchuk, R. and Tsesliv, O., 2021. Cloud for Telecom: A New Paradigm Shift for Value Creation. [ebook] Intellias, pp.22-25. Available at: <>

Imbroda, A., Jakubowski, B., Melegatti, I. and Parvathy, U., 2021. Reimagining Telco CX, the Touchless Way. [online] Accenture, p.2. Available at: <>

Javaid, S., 2022. Digital Transformation for Telecoms in 2022: In-depth Guide. [online] AI Multiple. Available at: <> 

McKinsey & Company. 2015. The keys to organizational agility. [online] Available at: <> 

Rander, M., Koch, C. and Wellers, D., n.d. Digital Transformation Executive Study: 4 Ways Leaders Set Themselves Apart | SAP Insights. [online] SAP Insights. Available at: <>