Flevy Management Insights Case Study
Robotic Process Automation for Mid-Size Telecom Company


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Business Process Re-engineering to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR A mid-size telecom company experienced a 12% drop in operational efficiency and a 10% rise in customer churn due to outdated processes. They initiated a Digital Transformation via RPA and process re-engineering, achieving a 15% cut in operational costs and a 20% boost in customer retention. This underscores the need for strategic planning and ongoing performance improvement.

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Consider this scenario: A mid-size telecom company is facing significant challenges in digital transformation, with a pressing need for RPA and business process re-engineering.

The organization is grappling with a 12% decline in operational efficiency and a 10% increase in customer churn due to outdated processes and stiff competition from agile competitors. The primary strategic objective of the organization is to streamline operations, improve customer retention, and enhance digital capabilities through targeted RPA initiatives.



Strategic Planning Analysis

The telecom industry is experiencing rapid technological advancements and evolving consumer demands, driven by the proliferation of IoT devices and 5G networks.

We begin our analysis by considering the primary forces driving the industry:

  • Internal Rivalry: High competition due to numerous established players and new entrants leveraging advanced technologies.
  • Supplier Power: Moderate, as telecom companies rely on a few key technology providers but have options to negotiate terms.
  • Buyer Power: High, with customers having multiple service options and low switching costs.
  • Threat of New Entrants: Moderate, entry barriers are high due to capital requirements, but digital disruptors present a risk.
  • Threat of Substitutes: High, alternatives like VoIP and OTT services offer similar functionalities.

Emergent trends in the industry include a shift towards 5G adoption and increasing demand for seamless digital experiences. Based on these trends, the following major changes in industry dynamics are identified:

  • 5G Network Expansion: Opportunity for faster, more reliable services, but risks include high investment costs and regulatory hurdles.
  • Rise of IoT Devices: Creates new service opportunities, but also requires robust cybersecurity measures.
  • Increased Focus on Customer Experience: Opportunity to differentiate through superior service, risk of higher operational costs.
  • Shift to Cloud-Based Solutions: Enables cost savings and scalability, but poses data privacy and security risks.
  • Emergence of Digital-Only Competitors: Forces traditional players to innovate, but increases market saturation.

PEST Analysis reveals that political stability and regulatory frameworks play a crucial role in the telecom industry, with governments pushing for digital inclusion. Economically, the industry benefits from growing consumer spending on digital services. Social trends indicate a growing reliance on mobile and internet services, while technological advancements drive continuous innovation and require ongoing investment in infrastructure and cybersecurity.

For effective implementation, take a look at these Business Process Re-engineering best practices:

Process Automation & Digitalization Assessment (41-slide PowerPoint deck)
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Internal Assessment

The organization has strong technical expertise and a loyal customer base but struggles with outdated processes and slow adoption of new technologies.

4DX Analysis

The organization’s focus on goals is diluted due to numerous competing priorities. Discipline of action is lacking, with projects often not completed on time. Scoreboards are not effectively used to track progress, and accountability is inconsistent. Addressing these issues can drive better alignment and performance.

Value Chain Analysis

Primary activities such as network operations and customer service are robust but suffer from inefficiencies due to legacy systems. Support activities like HR and procurement are less integrated with core processes, leading to delays and increased costs. Streamlining these activities through RPA can enhance overall efficiency.

Competitive Advantage Analysis

The company’s network coverage and quality are competitive strengths. However, its slower rate of innovation and digital adoption compared to peers is a weakness. Investing in RPA can transform its operational capabilities, making it more competitive in a rapidly evolving market.

Strategic Initiatives

The leadership team formulated strategic initiatives based on the comprehensive understanding gained from the previous industry analysis and internal capability assessment, outlining specific, actionable steps that align with the strategic plan's objectives over a 3-5 year horizon.

  • Business Process Re-engineering: Implement RPA to streamline back-office operations and improve efficiency. The goal is to reduce operational costs by 15% and improve process accuracy. Value creation comes from cost savings and enhanced operational agility. Requires investment in RPA technology, training, and change management.
  • Customer Experience Enhancement: Launch a digital customer engagement platform to provide seamless and personalized service. The goal is to increase customer retention by 20%. Value creation comes from improved customer satisfaction and loyalty. Requires investment in digital platforms, customer data analytics, and marketing.
  • 5G Network Expansion: Accelerate deployment of 5G infrastructure to enhance service quality and capture new market segments. The goal is to increase market share by 10%. Value creation comes from attracting new customers and increasing ARPU. Requires significant CapEx for infrastructure and regulatory compliance.
  • Cybersecurity Enhancement: Strengthen cybersecurity measures to protect customer data and comply with regulations. The goal is to reduce data breach incidents by 50%. Value creation comes from risk mitigation and enhanced customer trust. Requires investment in advanced security technologies and training.

Business Process Re-engineering Implementation KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


A stand can be made against invasion by an army. No stand can be made against invasion by an idea.
     – Victor Hugo

  • Operational Cost Reduction: Measures the effectiveness of RPA in reducing operational expenses.
  • Customer Retention Rate: Indicates success in enhancing customer experience and loyalty.
  • Market Share Growth: Tracks the impact of 5G network expansion on customer acquisition.
  • Data Breach Incidents: Monitors the effectiveness of enhanced cybersecurity measures.

These KPIs provide insights into the operational efficiency, customer satisfaction, market expansion, and security posture of the organization. Regular monitoring will ensure alignment with strategic goals and timely adjustments to initiatives.

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Stakeholder Management

Success of the strategic initiatives hinges on the involvement and support of both internal and external stakeholders, including frontline staff, technology partners, and marketing teams. In particular, our external technology partners play an important role in informing us of and validating end-consumer requirements.

  • Employees: Frontline staff and management are crucial for implementing personalized guest experiences.
  • Technology Partners: Vendors and IT teams responsible for implementing and maintaining smart room technology.
  • Marketing Team: Essential for developing and executing the digital marketing campaign.
  • Guests: The ultimate beneficiaries of the enhanced experiences, whose feedback is critical for "continuous improvement".
  • Investors: Provide the necessary financial backing for technology and marketing investments.
Stakeholder GroupsRACI
Employees
Technology Partners
Marketing Team
Investors
Customers

We've only identified the primary stakeholder groups above. There are also participants and groups involved for various activities in each of the strategic initiatives.

Learn more about Stakeholder Management Change Management Focus Interviewing Workshops Supplier Management

Business Process Re-engineering Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Business Process Re-engineering. These resources below were developed by management consulting firms and Business Process Re-engineering subject matter experts.

Business Process Re-engineering Deliverables

These are a selection of deliverables across all the strategic initiatives.

  • Strategy Report Deliverable (PPT)
  • RPA Implementation Roadmap (PPT)
  • Customer Engagement Platform Plan (PPT)
  • 5G Network Expansion Financial Model (Excel)
  • Cybersecurity Enhancement Guidelines (PPT)

Explore more Business Process Re-engineering deliverables

Business Process Re-engineering

The implementation team utilized the Lean Six Sigma and McKinsey 7S frameworks to guide the Business Process Re-engineering initiative. Lean Six Sigma, a methodology that combines Lean manufacturing principles and Six Sigma's focus on quality, was particularly useful in identifying and eliminating inefficiencies. The McKinsey 7S framework, which examines seven critical organizational elements—Strategy, Structure, Systems, Shared Values, Skills, Style, and Staff—provided a comprehensive approach to ensure alignment across the organization. The team followed this process:

  • Conducted a value stream mapping exercise to identify waste and inefficiencies in existing processes.
  • Implemented DMAIC (Define, Measure, Analyze, Improve, Control) methodology to systematically improve processes.
  • Engaged cross-functional teams to ensure that improvements were practical and sustainable.
  • Analyzed the alignment of the seven elements (Strategy, Structure, Systems, Shared Values, Skills, Style, and Staff) to identify gaps and areas for improvement.
  • Developed action plans to address misalignments and ensure that all elements supported the re-engineered processes.

The implementation of Lean Six Sigma and McKinsey 7S frameworks resulted in a 15% reduction in operational costs and a significant improvement in process accuracy. The organization achieved better alignment across its various functions, leading to enhanced operational agility and efficiency.

Customer Experience Enhancement

The implementation team employed the Customer Journey Mapping and Kano Model frameworks to enhance the customer experience. Customer Journey Mapping provided a visual representation of the customer’s interactions with the organization, highlighting pain points and opportunities for improvement. The Kano Model, which categorizes customer preferences into basic needs, performance needs, and excitement needs, was useful in prioritizing features that would have the most significant impact on customer satisfaction. The team followed this process:

  • Mapped out the entire customer journey from initial contact to post-service support.
  • Identified key touchpoints and pain points through customer feedback and data analytics.
  • Developed a list of potential improvements and categorized them using the Kano Model.
  • Prioritized features and services that would enhance customer satisfaction and loyalty.
  • Implemented changes in a phased approach to monitor impact and make necessary adjustments.

The application of Customer Journey Mapping and the Kano Model led to a 20% increase in customer retention and significantly improved customer satisfaction scores. The organization was able to deliver a more seamless and personalized customer experience, fostering greater loyalty.

5G Network Expansion

The implementation team leveraged the Real Options Analysis and the Resource-Based View (RBV) frameworks for the 5G Network Expansion initiative. Real Options Analysis, which evaluates investment opportunities as options, was useful in managing the high uncertainty and large capital investments associated with 5G deployment. The Resource-Based View, focusing on leveraging the organization's unique resources and capabilities, helped in identifying and capitalizing on internal strengths. The team followed this process:

  • Conducted a Real Options Analysis to evaluate different investment scenarios and manage risks.
  • Identified key resources and capabilities that could be leveraged for the 5G expansion.
  • Developed a phased investment plan to minimize risks and optimize returns.
  • Aligned the expansion strategy with the organization’s unique strengths and capabilities.
  • Monitored progress and adjusted the plan based on market conditions and technological advancements.

The use of Real Options Analysis and the Resource-Based View frameworks resulted in a 10% increase in market share and optimized capital allocation. The organization was able to deploy 5G infrastructure efficiently while leveraging its unique strengths to gain a competitive edge.

Cybersecurity Enhancement

The implementation team utilized the NIST Cybersecurity Framework and the Risk Management Framework (RMF) to enhance cybersecurity measures. The NIST Cybersecurity Framework, which provides a policy framework of computer security guidance, was useful in identifying and managing cybersecurity risks. The Risk Management Framework, a structured approach for integrating security and risk management activities, ensured comprehensive risk assessment and mitigation. The team followed this process:

  • Conducted a thorough risk assessment using the NIST Cybersecurity Framework to identify vulnerabilities.
  • Developed a cybersecurity strategy based on the identified risks and organizational priorities.
  • Implemented security controls and measures as outlined in the Risk Management Framework.
  • Trained employees on cybersecurity best practices and incident response protocols.
  • Regularly monitored and updated security measures to adapt to evolving threats.

The implementation of the NIST Cybersecurity Framework and Risk Management Framework reduced data breach incidents by 50% and significantly enhanced the organization’s security posture. The organization achieved greater resilience against cyber threats and improved customer trust.

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Key Findings and Results

Here is a summary of the key results of this case study:

  • Reduced operational costs by 15% through the implementation of RPA and Lean Six Sigma methodologies.
  • Increased customer retention by 20% via the launch of a digital customer engagement platform and enhanced customer experience initiatives.
  • Achieved a 10% increase in market share through the accelerated deployment of 5G infrastructure.
  • Reduced data breach incidents by 50% by strengthening cybersecurity measures using the NIST Cybersecurity Framework and RMF.
  • Improved process accuracy significantly, leading to enhanced operational agility and efficiency.
  • Enhanced customer satisfaction scores through targeted improvements identified via Customer Journey Mapping and the Kano Model.

The overall results of the initiative indicate a successful implementation of the strategic objectives, particularly in reducing operational costs and improving customer retention. The 15% reduction in operational costs and the 20% increase in customer retention are notable achievements that align well with the initial goals. The 10% market share increase through 5G deployment demonstrates effective capital allocation and strategic planning. However, some areas were less successful; for instance, while process accuracy improved, the integration of support activities like HR and procurement with core processes still faces delays. Additionally, the high investment costs for 5G infrastructure and cybersecurity enhancements strained financial resources. Alternative strategies could include phased investments to better manage capital expenditure and a more integrated approach to support activities to ensure seamless operations.

Recommended next steps include continuing to monitor and refine RPA implementations to further enhance efficiency and reduce costs. Focus on integrating support activities with core processes to eliminate delays and improve overall operational performance. Additionally, consider phased investments for large-scale projects like 5G expansion to manage financial strain better. Strengthen the feedback loop with customers to continuously improve the digital engagement platform and customer experience initiatives. Lastly, maintain and regularly update cybersecurity measures to adapt to evolving threats and ensure sustained customer trust.

Source: Robotic Process Automation for Mid-Size Telecom Company, Flevy Management Insights, 2024

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