Pipeline Publishing, Volume 5, Issue 11
This Month's Issue:
Transformation
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What Has the Economic Crisis Exposed About the Telecommunications Industry?

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By Alpna Doshi

The economic crisis is sparing few industries. Telecommunications companies, like most others, are feeling its effects. Although many organizations and individuals would like to upgrade their current programs or invest in new systems, they are perceived as “nice to have” rather than “must have.” As such, in many cases, telecommunications programs are being put off for now.

Because so many people consider telecommunications a cost, or “overhead,” it takes special insight to invest in it during a down economy. However, when a company perceives telecommunications as more than functionality (and does not scrutinize or eliminate every telecom expense) the rewards can be great.

So, what prevents companies from leveraging telecommunications as a strategic asset? It’s a familiar problem: Many companies are unable to align their information technology capabilities with their business requirements.

Today, telecommunications are much more than simple tools companies rely upon for basic communication. In many ways, they can be strategically powerful. Unfortunately, this is still a difficult message to express to some large companies, even more so in IT departments. On the other side of the wall, business professionals may not give their IT brethren enough information (or respect), limiting their ability to serve effectively.

Many companies are unable to align their information technology capabilities with their business requirements.



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The fact that the Defense sector is interested in TM Forum, a leading Telecommunications Industry Standards body, shows that significant IT and Operations management streamlining and automation is needed to support mission critical applications. This needs a highly reliable and standardized IT environment that can accommodate changing business application requirements. A must in terms of the alignment between the business and IT, using modular frameworks that will help not lose any time when Time to Service is critical.


Considering that in Malaysia, Corporate data services, mobile, and internet services are likely to grow, Telecom Malaysia is investing in making sure that infrastructure is there to support the business needs. This needs an alignment and confirmation from business in terms of what services will be effective. For example, managed services will bring in new revenue streams to effectively optimize IT usage.


How Can Telcos Leverage IT to Reduce the Impact of the Crisis?
Organizations that understand the ways telecommunications provides strategic opportunities—how it can make a dramatic business difference—can make considerable strides, even in challenging economic environments.  It’s a two-way street: When they do, superior solutions are created, and

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