Telecommunications and network strategy is not only about technology

Enterprise telecommunications and network services have traditionally been addressed through a commodity lens. This perception, however, is gradually changing, as organisations increasingly realise that a more strategic approach is needed.

Telecommunications and network services can improve the competitive advantage of the organisation as a whole; however this can only be achieved if the strategic business objectives of the organisation are identified and understood by the relevant stakeholders. Telecommunications strategy needs to support critical processes and enable business agility so the organisation can effectively adapt and respond to the specific market conditions and requirements in its industry sector. To illustrate a few examples, an agrochemical business might require a flexible framework to enable it to swiftly increase or reduce capacity, depending on seasonal demand and crop variations. A financial services organisation, on the other hand, is likely to require a contract that facilitates the improvement of customer service and launch of new services (e.g. online account or insurance products), enables compliance with data protection regulations, and even generates new sales and marketing channels (e.g. through advanced contact centre infrastructure). Further, certain government departments and organisations with infrastructure that is designated as critical national infrastructure require stringent security, performance and resilience.

However, organisations often struggle to move past the misconception that strategy is just about technology. As a result, it is not uncommon to hear statements such as "we have a strategy – we’re moving to a standardised Cisco platform" or "our network strategy is to migrate to Ethernet". Such proclamations reveal a fundamental lack of understanding about the essence of telecommunications and network strategy.

Technology is just one piece of the whole strategy puzzle. A telecommunications and network strategy needs to encompass a number of dimensions other than technology, including the service and geography scope, service delivery and management framework, Service Level Agreement (SLA), pricing model and commercials, operating model and governance framework. And even the technology element of the strategic framework is not simply about choosing a technology standard or equipment vendor. It is instead about defining the vision for how the technology should evolve over a defined period to ensure the organisation benefits from future innovations that can deliver real business value.

It is strongly recommended to evaluate all of the key dimensions of strategy rather than simply focus on technology. Failure to define a robust strategy through a well-structured process invariably has an adverse impact on the sourcing and governance of telecommunications and network services. The resulting service contracts can expose the organisation to an increased risk of poor service levels, a lack of flexibility to cater for business changes and a higher total cost of ownership.