Telcos are lagging behind their counterparts in other industries when it comes to digital transformation but are outpacing them in the amount they spend on innovation, new research has found.

The survey of 600 firms, 100 of them telcos, across the US and Western Europe by Forrester and Virtusa scored them across a range of metrics to give them an overall digital transformation score out of 45.

The telecoms industry achieved 25.30 out of 45, behind the scores attained by the retail, banking, healthcare and insurance sectors but ahead of the media sector. Retail was the best performing sector with 28.17.

Telcos were behind the average score of 8.81 for the transformation of customer experience – a key digital transformation KPI – attaining 8.15.

They also lagged on business innovation, scoring 8.45 compared to the average of 8.61.

However, telcos were ahead of other firms on operational excellence, with a score of 8.7 compared to the average of 8.64 across all the industries surveyed.

They also led other industries in terms of planned investments, with the industry boasting the highest proportion of firms planning to increase their innovation budget at 91 percent.

This was ahead of retail at 90 percent and banking and healthcare both at 86 percent.

Frank Palermo, Global Head of Digital Solutions, Virtusa, said: “Firms that are obsessed with their customer’s experience can achieve significant operational efficiencies and put innovation at the heart of their respective cultures and are the ones that will see the greatest benefits from digital transformation.

Read more: Vendors under pressure as operators push on with digital transformation

More News

Telia Company feels good about 2018 after EBITDA increase Telia Company feels good about 2018 after EBITDA increase Telia Company has hailed a strong balance sheet and "a lot to look forward to in 2018" as it posted EBITDA growth in its first quarter. More detail
Ericsson looks ahead with cautious optimism after Q1 loss reduction Ericsson looks ahead with cautious optimism after Q1 loss reduction Ericsson has made its first attempt to put a horrific 2017 behind it by improving upon its losses thanks to improving margins and a costs blitz in its first quarter. More detail
A1 chooses T-Systems exec for new CEO A1 chooses T-Systems exec for new CEO A1 Telekom Austria Group has chosen a Deutsche Telekom and Nokia veteran as its new CEO as part of a wider restructure which will also see its Chairman depart. More detail
"Challenging consumer market" fails to dent Sky's Q3 performance Sky has shrugged off a "challenging" consumer climate to post increases in sales and profits. More detail
OBS taps Siemens for new industrial IoT solutions OBS taps Siemens for new industrial IoT solutions Orange Business Services (OBS) has teamed up with Siemens to launch a new set of IoT tools for industrial companies. More detail
    

@eurocomms