The operational principles shared by efficient telecom operators


Since 2012, Ericsson and Ernst & Young have published a series of reports about the six traits – or “Growth Codes” – shared by the world’s most successful telecom operators. Today we can go one step further by revealing the five operational principles employed by the most efficient operators.

The basis of the Growth Codes reports is that the telecom frontrunners able to grow their businesses in a challenging industry have six traits in common. These operators are able to measure and manage user experience, market their performance leadership, create innovative offerings, embrace innovation, create strategic partnerships for innovation, and create a performance gap to competitors.

However, growth alone isn’t enough. As data volumes continue to skyrocket, operators must also become more efficient. In recognition of this fact, the Growth Codes study has now been extended to identify the key operational principles followed by the operators that generate the best return on capital employed.

By analyzing 270 operators and studying the top 13 in terms of return on capital employed, it was possible to identify five operational principles:

1. Experience centric

Profitable operators align operations across all levels to measure and manage performance based on experience-centric KPIs.

2. Simplification

Profitable operators reduce complexity to decrease cost and enhance revenues.

3. Asset Smart

Profitable operators work intelligently with their assets and optimize cost and capital efficiency based on positioning and strategy.

4. Organizational leverage

Profitable operators realize synergies by working cross-functionally, across businesses and by sharing knowledge across the organization.

5. Collaboration

Profitable operators gain competitive advantage by leveraging strong partnerships, strengthening innovation and reducing time to market.