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Vodafone charts path to transformation

06 May 2020
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Nick McQuire, Kester Mann

CCS Insight

Vodafone’s core message, and one that group CEO Nick Read reinforced in his opening address, was that the company is on a “mission-critical” transition from a classic telecom provider to a “technology communications company”.

It’s a similar digital-first approach that some other telecom operators, such as Telefonica and Orange, are also pursuing. The aim is to simplify internal process, improve agility and responsiveness, shorten the time to market for new products and create new revenue opportunities beyond connectivity.

For some time, Vodafone has bracketed the enterprise segment as one of its biggest engines for growth. According to Mr Read, it currently accounts for about 30% of group service revenue and is outpacing its consumer business. Still, the operator continues to be challenged by an external perception that it remains largely orientated toward consumers and mobile services. It’s seeking to address this by offering broader packages of communication services to a wider range of companies in a variety of industry sectors.

Candidly, the CEO admitted that Vodafone has been too risk-averse in the past and this has stifled innovation. In response, he has sought to create a more innovative and dynamic culture to better exploit its global assets….

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