How digital adoption creates competitive edge

INTERVIEW How digital adoption creates competitive edge

TM&E leader Michinori Sato shares insights on trends in the telecom space and more.

As the leader of Deloitte’s Asia Pacific Telecom, Media, and Entertainment (TM&E) Sector, TM&E consulting practice, and 5G specialist team in Japan, Michinori Sato has deep expertise in the telecommunications business, including new business development (B2C/B2B), B2B sales and marketing, branding of services, customer experience, DX strategy, finance operation, HR system, and talent and corporate organisational design.

He also served recently as a board member of Deloitte’s subsidiary company in cloud engineering.

Michinori has 20+ years of consulting experience to support major telecom, media, and electronics clients in the Strategy & Operation, Technology, and Human Capital areas. Before joining Deloitte, he worked for other consulting firms in the technology, media, and telecom (TMT) space.

As one of the judges at the Asian Telecom Awards, Asian Business Review spoke with Michinori as he shares his insights on the trends in the telecom space and how companies can position themselves amidst digital adoption to create their competitive edge.

With digitalisation taking place, how can the telecom sector stay relevant to attract new customers and maintain current ones?

As our lives and businesses become increasingly digital, users are gradually demanding that all digital experiences be “natural” to them. A “natural” state or experience means that you are unconsciously comfortable and feeling less stress or burden compared to when you are experiencing real activities and feelings.

To achieve this, a telecommunications carrier needs to: (1) deeply understand its customers; (2) win and maintain the position of the primary digital touchpoint for its customers; and (3) instill a common infrastructure and tools for engaging their digital lives in its ecosystem. Thanks to the evolution of digital technology, the level of implementation of each of these in advanced players have evolved significantly over the last few years. Carriers are constantly aware of best practices, including those in other industries, as they strive to create their competitive edge.

What are the challenges in catching up with the technology shift to digital?

For telcos to shift to digital technologies, there are major challenges in terms of corporate culture and human resources. A typical example is customer-driven business generation. Certain departments have become more customer-oriented after many years of marketing and CRM activities, but providing services to users is a company-wide effort, encompassing the network infrastructure, sales, customer service, and several online business units. The difference in the degree of customer orientation and the walls between departments often have a negative effect on users. Moreover, the culture of many carriers is somewhat conservative because they are responsible for important social infrastructure, and whilst digital businesses do require Agile business development, taking the agile approach in software development alone may not result in the company’s internal gears meshing smoothly. These cultural challenges are difficult to solve with a single measure, but things can change when strategic change-management initiatives and continuous strong leadership at the top are combined.

Michinori Sato, APAC TM&E Leader, Deloitte

Users are demanding that all digital experiences be ‘natural’ to them In telecom, what trends are expected this year as the pandemic continues to affect consumer behaviour?

As was the case until last year, teleworking from home is taking root at a certain rate, and the importance of real communication will be reconsidered. This trend could result in a demand for an improved network environment, including backhaul lines that contribute to making the traditional telework environment more comfortable and an enhancement across the overall IT infrastructure that supports virtual work environment, and may accelerate the trend of people moving out of congested big cities to regional cities to work.

For more on this interview, go tohttps:// asianbusinessreview.com/