
Veon- Digitizing Mobile Operator — Part 1
Disruption describes a process whereby an entity (disruptor) is able to successfully challenge established business; Kodak and Nokia are examples of established businesses that faced disruption. Disruptive firms start small, move along the periphery in pursuance of critical mass rendering innovative and interactive services. Firms that are unresponsive or late to the demands of disruption see business attenuate. Similar fate has been meted out to the telecom industry by the OTT services.
Digital disruption in the telecom industry is unfolding across a range of product and services; recent trends reflect the commoditization or replacement of core product/services- historically favoring voice and text. OTT services offer similar functionality through integrated, interactive and easy to use mobile apps, paving the way to substitute mobile company`s core services and increasingly threatening the sole survival of telco’s as a medium provider. As a peremptory response in the form of heavy investment in telecom platforms is witnessed, companies cannot survive without a digital strategy.

Prevalent flux situation in telecom industry demands digital strategy from companies. This digital strategy weaves itself from the business strategy with readily accessible digital technology (Social, Mobile, Analytics, Cloud, IoT) to achieve revitalization in the relationship with customers. Contrary to the common perspective, the success of digital strategy pivots on the reinvigoration of relationship and not in the employment of particular digital technology. Nokia`s response to disruption focused on implementation of latest technology in its products irrespective of customer demands, subsequently Nokia failed in the smartphones market. Agile companies discern disruption at early stages and pioneer the digitization process, establishing first mover’s advantage. Companies possessing high operational effectiveness will not be far behind in reaping eventual benefits of this disruption, even though the adoption of digital strategy did not occur at an opportune moment.
The disruptive threat in telecom industry emerges outside of telecom industry (In this case from IT industry), making it unique in its nature. Secondly, IT industry possess a high level of agility in product/service innovation. This agility has allowed OTT services to champion a new relationship with telecom customers by offering unique services like data communication, digital content, etc. This innovative and unconventional relationship subverted the capacity and sustainability of telecom services. Thirdly, OTT services face lite regulation from authorities, which provides an edge to such companies operating within the telecom industry. Endangered by multiple challenges, Veon introduces an app in the OTT domain.

Veon app launches itself with the digital strategy of developing into a personal Internet platform for its customers. The platform offers a unique value proposition (data connectivity, digital content) conflated with fixed telecom services, thus making the customers feel special. The launch of Veon app is an initiation of a journey from conventional telecom company towards a digital company, which Veon intends to achieve using operational and digital services backbone.
WELCOME TO VEON
*Veon app is available on play store and app store
*Credit is attributed to Clayton Christensen and Jeanne Ross
*Next article : Deep dive in digital strategy
