ITO for a Major Australian Enterprise: Telstra

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16th Dec 2019 Dissertation Reference this

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ITO for a Major Australian Enterprise: Telstra

Index

 

S.no Topic Page number
Executive Summary 3
1 Overview of Telstra 4
1.1 Company’s Market Niche and Strategy 4
1.2 Targeted Audience 4
1.3 Strategies 5
1.4 Telstra’s Competitors 5
1.5 Current IT and how the Company has used IT in Recent Years 5
1.6 Swot Analysis on Telstra 6
2 Ito 1 6
21. Business Case on Artificial Intelligence and Expected Outcome 6
2.2 Alignment with Strategy and Core Value 7
2.3 Expected Benefits 7
2.4 Risk of Implementation 8
2.5 Return of Investment 8
2..6 Revenue of Global Smart Home Security Market (2015 – 2021) 8
2.7 Process Model for Pilot Investigation 9
3

3.1

3.2

3.3

3.4

3.5

3.6

3.7

3.8

3.9

ITO 2

Technology

Use Case

Expected Outcomes

Need for Telstra

Expected Benefits

Strategic Alignment

ROI

Possible Risks

Process Model

9

9

10

11

11

11

12

12

12

13

4

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

4.9

ITO 4

Business Case

Problem description

Current scenario

Expected Outcomes

ROI

Expected benefits

Strategic Alignment

Possible Risks

Pilot Investigation

Conclusion

Reference

Appendix

13

13

13

14

14

15

15

16

16

17

17

18

20

Executive Summary

It is essential for an organization to be agile with the current market trends to secure its position and establish continuous growth. In this report, emphasis will be placed on carrying out feasibility study on opportunities that can be utilized by Telstra telecommunication company and how can this information technology opportunities be best utilize efficiently to maximize company returns.

Considering Telstra as a technological company actively interested in the enhancing its technological features, there are opportunities yet to be uncovered of which this report has addressed. This report provides insights on current IT trends in Telstra, their market position and business capabilities which also includes the three ITO’s. ITO’S have been considered based on their benefits and process models with the aim of assisting Telstra’s business structure that helps in retaining its leading position.

We have focused on technological opportunities such as artificial intelligence, block chain and big data analytics. These technologies have been identified to pose great benefits that aligns to Telstra’s core services and strategic pillars for the coming years.

Also, to better understand Telstra’s capability in its market, SWOT model was adopted to identify its strength and weakness for the enablement of generating insights for opportunities that can be feasible for Telstra’s operations.

Section 1

1 Overview of Telstra

Telstar corporation limited is a telecommunication and technology company headquartered in Melbourne Australia with a renowned purpose to create a brilliant connected future for everyone. It has attained high brand awareness in the Australian market by offering a broad range of communication services and fiercely acting as a competitor in the telecommunication market. As it is known to be the largest telecommunication company in Australia, Telstra is focused in building and operating telecommunication networks, internet access, mobile and pay television therefore generating a significant sum of over 26 Million as its revenue in the fiscal year of 2018[1]. It’s great dominance in the Australian market has been subject to the provision of 17.7 million retail mobile services, 3.6 million retail fixed broadband services and 4.9 million retail fixed voice services. This can be seen in the figures A1, A2 in appendix.

1.1 Services

The various services offered by Telstra are as follows:

  • Mobile services
    • Postpaid handheld
    • Prepaid handheld
    • Mobile broadband
  • Machine to machine
  • Fixed services
  • Data and IP
  • Cloud services
  • Media-pay television

 

1.2 Company’s Market Niche and Strategy

 

Telstra is the number one telecommunication carrier with total revenue of $26B. The company serves more than 16.7M mobile phone consumers. In Australia, Telstra dominates the market for being the largest telecom provider. According to latest information and data on NBN (National Broadband Network) connections posted by the Australian Competition and Consumer Commission, Telstra is dominant in the market and with Telco distributing more than 51% of NBN connections. The table below indicates the market size and dominance of Telstra.   In 2017, Telstra’s overall market share accounted for 41.4%. The market value of Telstra for the last quarter of the year was 38.8M and for the last year was 68.5B AUD[2].

1.3 Targeted Audience

 

Telstra targets anyone who has access to a smartphone. The audience comprises of different people from all walks of life such as business people, schools, businesses, kids and farm workers. The company’s market changes depending on the target audience they are serving[3].

1.4 Strategies

The company states that their unique challenges are the rollout of their NBN network, shrinking and reducing their margins in their fixed-line market and their ever-increasing competition in the mobile market. These challenges have influenced their performance this year and have underpinned their decision to take bolder steps to transform the business through the new Telstra strategy.

On 20 June 2018, they announced a new strategy called Telstra 2022 which aims at leading the Australian market by simplifying its operations, improving its customer experience and reducing its cost base. The following pillars guide the new strategy[4]:

  • They aim at radically simplify their product offerings and eliminating customer pain points thereby creating digital experiences
  • They try to establish a standalone infrastructure for business to drive their performance and set up optionality post the NBN rollout
  • They try to simplify their structure and ways of working to empower their people and serve their customers
  • They run Industry’s leading cost reduction programs and portfolio management

    1.5 Telstra’s Competitors

 

Some of its major competitors include Vodafone, Optus, TPG Telecom, Virgin, and StarHub. Despite the increased competition, Telstra managed to increase its market size by attracting customers from Vodafone. Statistics from Kantar, which is a research company indicated that Telstra would continue to maintain its dominant position in the long-term as Telstra is investing in 5G to maintain its network advantage. The counter-offensive strategy used by Telstra is the “Peace of Mind Data,” which is the first unlimited data plan from the company.

1.6 Current IT and how the Company has used IT in Recent Years

 

Telstra has a broad network coverage that gives them a develop once, deploy anywhere” advantage. Telstra has opened a new IoT Innovation Lab that has allowed developers to test the communication signals of various products when handed over between different cell towers. Telstra has a 5G network that is built and prepared for the connection of millions of IOT devices. The company offers, MTData telematics solutions, Teletrac Navman vehicle & asset tracking, Fleet Complete vehicle tracking, Sendum asset monitoring, Telstra Track & Monitor, MOVUS, and Noise, air and water monitoring-IOT. Besides, devices from Telstra cover all IOT or M2M solution sensor data requirements[5]. According to Katherine Robins, the principal security expert at Telstra, the company is experimenting with a combination of blockchain and biometric security for its Internet of Things (IoT), smart home offerings.

Before identifying ITO’s for Telstra, it would be beneficial to depict its capabilities and shortcomings to better illustrate how these ITO’s can serve as a significant acquisition. To do this, we will be applying the SWOT analysis model to portray Telstra’s strength, weaknesses, opportunities and most important threats. How can proposed ITO’s be used to subdue its weaknesses or if possible prepare for future threats.

 

1.7 SWOT ANALYSIS ON TELSTRA

 

STRENGTH

  • High brand awareness in the Australian market and continued growth in the international market.
  • High expansion capability in key markets
  • Acquisition of latest technology as investment
  • Broad range of service portfolio

Weakness

  • Market share of 51% indicating tough market segment
  • Price wars with competitors (price perceived to be high).
  • Limited global presence because of the need to acquire better technology equipment’s.

Section 2

2 ITO 1:

 

2.1 BUSIENSS CASE ON ARTIFICIAL INTELLIGENCE AND EXPECTED OUTCOME

 

As we have identified Telstra’s core business services, we will furthermore present technological opportunities that can be aligned to Telstra’s business model. This opportunity should serve as a sustainable factor to business offerings as well as maximizing revenue stream by contributing significant benefits to the service of prospective customers.

A technology considered to be an opportunity for investment in the business word today is artificial intelligence. Artificial intelligence is a technology; a must have to enhance the services companies strive to deliver. It is an asset to acquire in today’s business to derive competitive edge because it is developed by computer systems that would be able to perform tasks that requires human intelligence[6].The act of combining computer systems and human intelligence is surely a solution to many shortcomings.

Telstra been a telecommunication and technology company should consider artificial intelligence as an integral part of its business model because it is simply revolutionary. Many companies are diving towards this technology. This was predicted earlier this year by the International data corporations that 63.5% of telecom companies will commit investments on AI systems and studies from transparency market research (TMR) has proven that artificial intelligence is gaining massive interest by competitors in the market, posing an estimated compound annual growth (CAGR) of 36.1%, which will lead to the rise of its valuation to US$3,061.35 billion in years to come up until 2024.These studies and predictions should serve as motivational factor for Telstra to invest[7].In my review, this is not just going to place Telstra amongst competitive giants in the technology industry, but it would serve as a platform to new markets.

This technology also has been suggested because of the recent investment made by Telstra last year on IOT when its smart home was launched. This investment has enabled Telstra offer customers more connectivity in their homes by connecting motion sensors, light globes and camera together, so they can function as an integrated component[8]. The benefits derivable with this approach is obviously enormous, but then how can this innovation be further sustained? Artificial intelligence, also known as the future of smart home, can be applied.

Considering this as an opportunity to sustain their growth Telstra can upgrade their Telstra home by utilize AI technology to enhance home security. By configuring AI function with advanced detection and identification to Telstra’s home service offerings, customers can be informed promptly not only when there is an activity but also provide a profile by identifying who’s responsible. This cutting-edge approach to home security would certainly serve as means of sustainability.

As an additional note from a global perspective, a discovery was made in the United states depicting the lack of police response to home security alarms. And research has shown that the United States police responds to more than 36 million alarm activations from homes every year resulting to an estimated cost of $1.8 billion of which 95% of these alarms are false[9]. This point clearly reinstates the fact that there is huge cost in place for responding to calls especially when they are mostly false. The implementation of Artificial intelligence to home security would provide significant benefit to this

As a fact, similar technology such as Ooma home technology has been designed and already in the market. A unique function of Ooma technology is its use of facial recognition and artificial intelligence to identify and trigger alerts of people in the house[10]. This is an advanced system of home security that can be implemented by Telstra as the market seems to be robust with potentials of growing demands.

2.2 ALIGNMENT WITH STRATEGY AND CORE VALUE

 

Aside from measuring the benefits achievable as mentioned above, the cutting-edge approach with the use of artificial intelligence for face recognition also aligns with Telstra’s new strategic motive (Telstra 2022 pillars). Elimination of customer pain points and creating digitalize experience is one of the strategic motives of Telstra’s 2022 pillars and it is vital to state the fact that the application of AI for advanced detection and identification would best serve as fundamental initiative towards this strategy. Customers utilizing the technology would gain enhanced protection and more control of their home by been able to monitor and identify intruders. As an initiative towards Telstra’s vision to implement this strategy, this technology acquisition is a win for the company.

Another important fact found to be supporting is the alignment of Telstra’s core values to the benefit that can be derived from the implementation of artificial intelligence. The introduction of artificial intelligence to Telstra’s business stream would place the company’s focus towards the pursuit of practicing one of its core value which is to make the complex simple. By introducing IOT connectivity and artificial intelligence to provide advanced detection and identification customers would find it easy to operate easily such as unlock their home security with the use of face recognition. Complications found to be alarming by customers will be subdued

2.3 EXPECTED BENEFITS

 

As the opportunity has been stated, an expected outcome from this investment is the increase in customer satisfaction. Artificial intelligence will serve as an added functionality for home users in need of more than a secured home.  In addition, it provides threat analysis functionality.

Also, as a telecommunication company with the vision to become a competitive leader, this investment will generate more brand awareness in the home security market therefore creating a platform for Telstra to venture into the real estate market. The real estate industry is set to experience this game changing form of image recognition security. As a fact, this has indicated the next wave of reinforcing security in homes for the coming years and Telstra should benefit massively by becoming one of the first movers.

2.4 RISK OF IMPLEMENTATION

 

  • Attacks from hackers: With the face recognition system, customers are likely to be exposed to attack from hackers.
    • Mitigation: This can be mitigated by applying firewalls and encryption to protect the information of our customers. Also outsourcing for an expert response team that would run regular test as a preventive measure for potential attacks.
  • Technology malfunctions: Just like every other technology, there is possibility of system malfunctions. It is important to contain this risk if it occurs.
    • Mitigation: Technology malfunction can be mitigated by scheduling for regular review and monitoring with a specialized team of experts.

2.5 RETURN OF INVESTMENT

 

Sequel to the benefits achievable from investing in this information technology opportunity, it is disconcerting not to indicate the financial values derivable. In other words, what would be the returns of investment made? Before diving into facts and figures, it is best to state that assumptions will be based on the anticipated growth of smart home security market and what other competitors have derived from utilizing this technology. The diagram A7 in appendix shows the growth expected for coming years in the home security market.

2.6 REVENUE OF GLOBAL SMART HOME SECURITY MARKET (2015 – 2021).

 

A research-based diagram shown above has been used to depict the predicted revenue stream for the coming years in the home security market. This result is shown to indicate the anticipated growth in the home security market to estimate future outcomes when investments are made. A sum of $22.12 Billion of revenue is expected in the year 2021. This is a three-year forecast of which will be used to determine our ROI.[11]

FINANCIALS

Cost on project implementation – $7.4 Million

Time to Implement – 2 years

Benefit Realization: $10.5 Million in a period of 4-5 years.

 

 

 

Fig 1. ROI for ITO1

2.7 PROCESS MODEL FOR PILOT INVESTIGATION

 

Section 3

3 ITO 2:

The second ITO suggested to Telstra is using Big data in its network capacity monitoring using real time analytics tools.

3.1 Technology:

The technology under consideration is big data. According to Gartner big data is the data that contains great variety and arrives in an increasing volume and has high velocity. Bigdata and BI remain in the plateau of productivity in the hype cycle[12]. In other terms big data is large data in more complex forms which when addressed properly could be used to derive benefits. Real time analytics is the processing of this large data as soon as they are produced or created. It is a form of big data that focused on the data produced in live environment[13].

Most of the Telecom companies are not completely aware of the deeper insights that can be derived using their data generated. These huge volumes of data have intrinsic value but are of no use until their value is derived. The deeper insights that could be derived can be customer behavior, their preferences, their usage pattern and their interests and apart from these it can also be used for the company’s network analysis benefit which can result as a huge gain for the company to expand its market position. The recent breakthroughs in technology have made it easier and much cheaper to store data there by making data cheaper and easily accessible. If this is used meaningfully then can be used to make precise and accurate decisions in business. The process of deriving powerful meaning is not just analyzing but asking the right questions and recognizing the patterns correctly and thereby predict the behavior.

Fig 3. Big data Technology

3.2 Use Case:

 

The suggested ITO is to correlate the network usage and use relate time capacity data analytics to derive power insights about various factors such as congested areas, potential rollouts, usage details that can be useful for Telstra expansion and customer satisfaction.

In most cases the assumed reason for fall in sales is customer service, but in major cases it is the inability of the organization to manage its peak loads. Major big players in the market are using bigdata to monitor customer service and derive customer satisfaction. It is a very common tool and rarely beneficial for the firm but the major boom in business is when this data is used to monitor the company’s profile and correct any mistakes that could happen using predictive analysis to improve their revenue and build trust. The proposed ITO is something similar.

The real time analytics software’s such as Tableau can be used to get real time network usage details in various areas of service, these details will be displayed on the dashboard as a heat map in live environment conditions. Various heat map indications used to depict conditions could be reds highlights over regions for high usage and green for less than the assigned capacity usage will be depicted on the dashboard monitored, the red’s would indicate the increasing load and peak demands thereby working as an alarm for Telstra to note those areas nearing its capacity threshold as potential areas to be considered for expansion and more roll outs to handle the peak demand and improve their service at the same time deriving huge revenue for the firm, they can also denote regions for potential outage.

The green areas are the areas with high available capacity but low usage due to various reasons, these areas can be targeted for marketing, various catered offers, customer campaigns to attract customers and increase their sales. With these insights Telstra will be able to also effective prioritize their investments and resource utilization based on their future network connectivity needs[14].

Fig 4. Processing using Analytics

3.3 Expected Outcomes:

The expected outcomes from this ITO would be the ability to derive insights on[15]:

  • Load Balancing thereby helping during peak loads.
  • Data filtering and concentration on needed network regions.
  • Targeted Marketing on regions with lesser usage but higher capacity.
  • Rollouts and expansion for market improvement
  • Understanding the network distribution of the organization.
  • Network consumption rate.
  • Capacity planning.

 

3.4 Need for Telstra:

A leading company like Telstra should invest in big data real time analytics for the following reasons:

  • Put them on stronger and competitive position when compared to its market rivals.
  • Telstra can quickly identify its new business opportunities
  • These analytics can help in analyzing ways to reduce expenses
  • Capability to derive early warnings about problems and be proactive and not reactive.
  • Help in deeper understanding of the customers.
  • Around 85% of the companies according to Forbes are succeeding with big data analytics and thrives the need for Telstra to invest on succeeding technology.

3.5 Expected Benefits:

The various benefits that can be achieved using this technology in this field are[16]:

  • Various predictive insights on customer data with otherwise is huge volumes of not used data.
  • Ability to customize unstructed data that is generated.
  • Upskilling and encouragement inside the firm with trust.
  • Cost effective process with better returns.
  • Targeted marketing, results in better effective campaigns with lesser investments.
  • Business differentiation and being pioneers in the markets.
  • Ability to capture new revenue opportunities faster and better.
  • Ability to identify the root cause of the various performance problems
  • Anticipation for incidents
  • Capacity planning
  • Developing any network action plans if needed
  • Shorter response time for any incidents.
  • Investment Planning
  • Lower storage costs.

3.6 Strategic Alignment:

For Telstra this project would be an upgrade of the existing MOVUS with is used for customer sentiment analysis which uses IOT for predictive maintenance.

Telstra believes in simplifying its products, reducing customer pain and creating digital experiences thus the proposed ITO fits strategic to Telstra’s belief by reducing their customer discomforts and improving their experience and giving them a better market strength and at the same time simplifying their marketing and investing process to great extents and creating a pioneer digital experience for the firm.

3.7 ROI:

 

The expected ROI is around 40% for telecommunication industries as seen in figure A5 in appendix. The effects of Bigdata is high increase in revenue, reduced churn and better business operations which bring the company better profits that secure its position in the market. About 83% of the organizations have already invested on big data real time analytics projects and it can be also noted from fig A6 that 79% of the companies that fail to adopt to this technique might lose their position in the market.

3.8 Possible Risks:

 

There are few risks involved in this ITO but as any other pioneer investments these risks are inevitable and must considered beforehand but these can be eliminated and minimized having addressed it before and could still be a breakthrough investment[17].

  • Cost management, this technology involves investment and costs careful planning of resources and budgeting could mitigate this risk.
  • Data being stored and retrieved must be rapid and must be in an organized manner to help in the process.
  • Incompetent analysis of the data could lead to misleading insights
  • Complex Architecture and scalability are important factors to be considered
  • Market can be too dynamic to predict sometimes.
  • Data privacy and security incident that could occur thus it is essential to have strong data policies in place and take efforts to prevent any breaches[18].

3.9 Process Model:

 

 

Section 4

4 ITO:

The third chosen ITO for Telstra is Blockchain’s technology.

4.1 Business Case:

 

Presently, blockchain has been the topic of discussion across industries and organizations. This business case provides justification and insight on why blockchain is the chosen ITO and more importantly, how blockchain’s technology will impact Telstra. The business case further offers information on the benefits, potential risks, return of investment and lastly, whether blockchain’s technology would align with Telstra’s core strategies.

4.2 Problem description

 

The proposed business case aims to utilize blockchain’s technology to enable low-cost direct interaction between mobile users, service providers and network operators. Subsequently, blockchain’s objective is to eliminate unnecessary high fees when traveling abroad. International travel is a complicated endeavor and to further this complication, mobile users are forced to pay exorbitant phone bills to use their sim cards. In majority of the case, users will pay the over-priced phone bills to stay connected with their friends and family. However, in some cases, the mobile users tend to purchase an alternative local sim card to avoid having to pay expensive roaming charges. As a result, the mobile operators lose customers, data and profits. It is evident from the above scenarios that, the existing problem is a predicament to both the service providers as well as its consumers.

4.3 Current scenario

 

Currently, Telstra has $10 a day as its international roaming package. Despite the introduction of fresh global roaming plans, the cost exceeding overseas data allowance more than triples in cost. International consumers who inevitably run out of data after a bit of checking emails, using Google’s navigation and social media are forced to pay a whopping 10 cents per MB[19].

Proposed solution and implementation

Blockchain provides a solution to this age-old problem of integrating high-cost systems. The emergence of blockchain’s technology makes it possible to eliminate the issues regarding international roaming by allowing the regional and local mobile operators to enter the scenario without the need of complicated and expensive technical integrations. Likewise, the users of Telstra will be able to continue using their Telstra sim cards. The use case and solution for this is to provide a decentralized telecom eco-system that enables direct interaction between Telstra’s users, service providers and operator. The telecommunication operators can establish ‘micro contracts’ for their roaming services. The micro contracts are nothing, but tariff plans visible to all subscribers and operators. Telco’s can leverage these micro contracts to automatically execute roaming agreements between subscribers requiring temporary services. The roaming platform is free of charge for the operators as they can make revenue through transactions [20].

Fig 6. Blockchain implementation

4.4 Expected Outcomes

4.4.1 For Telstra’s End Users

  • Provision of new Mobile application for the end users to view various operators and choose the subscriptions accordingly
  • Users will be able to choose local mobile services
  • Users will be able to make phone calls with their existing SIM cards at the rates of local mobile operators
  • A new payment-based system with cryptocurrency support
  • International users can save money

4.4.2 For Telstra

  • Provide the ability to establish a connection between the foreign mobile operator and subscriber by introducing Blockchain Client
  • A new roaming platform which brings new source of revenues for Telstra
  • Micro contracts provide Telstra the ability to execute roaming agreements automatically
  • Telstra would be able to track each transaction and charge them depending on their usage of the network
  • Provision of value-added service packages through their standalone app[21]
  • Ability to quickly process data

4.5 ROI

Blockchain not only suits Telstra’s strategic alignment but brings convenience for its consumers as well. Telstra has partnered with Colt and Hong Kong based information and communications company PCCW to undertake trialing of blockchain. The primary aim of the project is to reduce the costs within the telecommunications industry[22]. Below findings indicates the potential cost savings upon implementing blockchain technology[23]

  • 70% in potential cost savings because of Blockchain’s Finance Reporting
  • 50% in savings due to centralized operations
  • 50% in cost savings on business operations
  • Up to 50% in savings on compliance

Telstra’s stocks can reach new highs from utilizing blockchain.

When Telecom investment company Stapleton Capital announced that it would be changing its name to Blockchains Worldwide, its shares jumped by whopping 130%[24]

Shares of Overstock increased by more than 20% after its investment in blockchain[25]

Ookami’s shares goes nuts after its investment in blockchain company[26]

It is evident from the above findings that, blockchain has become a benefactor to consumers, network providers and shareholders as well.

4.6 Expected benefits

 

Tangible Benefits for Telstra Intangible Benefits
Operational cost Reduction – Reduction in operational costs and overheads Improvement in efficiency – Blockchain can increase productivity and the time required for execution
Elimination of intermediaries – This would reduce the expenses on intermediaries Introduction of New Platform – By introducing blockchain’s roaming platform, it gives rise to innovation and a platform for others to utilize. Other local operators can publish their tariff plans on Telstra’s roaming platform
New revenue channel – By introducing micro or smart contracts, Telstra can gain new revenue Faster Connectivity – By enabling 1travellers to connect to the local operators, Telstra’s consumers can continue to use their SIM cards
Profit from Transactions – Telstra can make profit by charging on transactions Enhanced Security – Blockchain’s emphasis is on security. The decentralized approach could help secure the privacy of end users

Table 1. Expected benefits

4.7 Strategic Alignment

Before going forward with blockchain, it is essential to verify whether blockchain meets the below strategic pillars of Telstra[27]

  • To enhance performance by establishing a stand-alone infrastructure
  • To simplify internet and phone plans
  • To renounce existing legacy technology

Blockchain is an infrastructure solution and not just a technology or a data management facility. In other words, blockchain requires an actual underlying infrastructure. For Telstra, this means, a new strategic standalone infrastructure.

Secondly, blockchain’s solution eliminates intermediaries and reduces labor intensive processes via automatization. Not only is it cheap but it will be easier for the consumers to connect. Provision of blockchain’s platform will allow for phone and data plans to be published. The aligns with the second pillar as well.

For Telstra, blockchain would be a technological paradigm which would drive its business model. Blockchain can handle data integrity, data storage, transparency, payments and more importantly, transactions. Blockchain can be considered as a digital asset. Blockchain is intranet based that rides on the mesh network itself compared to existing legacy technology which is a standalone mesh network.[28]

4.8 Possible Risks[29]

  • Lack of maturity as blockchain is new
  • Lack of in-depth knowledge on the internals of blockchain
  • By nature, blockchain is complicated to implement
  • Telstra is required to streamline its internal operations which is a major hurdle
  • Since blockchain keeps all historical data, the size of blockchain might become unsustainable
  • Uncertainty on whether blockchain is compliant with existing data standards
  • Lack of regulatory framework

4.9 Pilot Investigation

Fig 7. Pilot investigation of ITO3

Conclusion:

As a conclusive note to this report we have been able to identify 3 major information technology opportunities for Telstra. These ITO’s have been derived from the major market trends of today’s business activities. For Telstra to retain its current position and continue to lead it must consider a ground-breaking technology for more efficient means of caring out its operations. It needs to take the bolder stance in order disrupt the telecommunications industry

The table below shows us the benefits and risks in investing on the given ITO’s and this can be used to aid the decision-making process based on the readiness of the organization.

Artificial Intelligence Bigdata Blockchain
ROI 41.89 37 55
Risks √√√ √√
Benefits √√ √√ √√√
Feasibility √√ √√√

Table 2. Comparison of the suggestions

Reference

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https://www.yellowfinbi.com/blog/2014/06/yfcommunitynews-big-data-analytics-the-need-for-pragmatism-tangible-benefits-and-real-world-case-165305

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https://www.estuate.com/company/blog/content/are-you-fighting-5-biggest-risks-big-data

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  3. clark, robert. 2018. “Bringing Blockchain To the Roaming Market | Light Reading”. Light Reading. https://www.lightreading.com/carrier-security/mobile-security/bringing-blockchain-to-the-roaming-market/d/d-id/740576.
  4. Cryptovest , 2018 ,”Bubbletone To Use Blockchain Technology as A Solution To International Roaming – Cryptovest”. 2018. Cryptovest. https://cryptovest.com/news/bubbletone-to-use-blockchain-technology-as-a-solution-to-international-roaming/.
  5. Chapman, Sophie. 2018. “Telstra Joins Blockchain Trial Project”. Anz.Businesschief.Com. https://anz.businesschief.com/leadership/3115/Telstra-joins-blockchain-trial-project.
  6. Seth, Samiksha. 2018. “ROI OF BLOCKCHAIN – TIMES”. TIMES. https://times.getnuo.com/2018/08/01/roi-of-blockchain/.
  7. Williams-Grut, Oscar. 2018. “Shares in A Telecoms Company Jumped 130% After It Pivoted To Blockchain”. Nordic.Businessinsider.Com. https://nordic.businessinsider.com/stapleton-capitals-stock-rises-130-after-blockchain-pivot-2018-1/.
  8. Chappell, Carmin. 2018. “Overstock Shares Soar After A Massive Private-Equity Investment in Its Blockchain Unit Tzero”. CNBC. https://www.cnbc.com/2018/08/09/overstock-shares-jump-after-investment-in-blockchain-subsidiary.html.
  9. Pash, Chris. 2018. “Ookami Buys into A Blockchain Company, Its Shares Go Nuts”. Business Insider Australia. https://www.businessinsider.com.au/ookami-buys-into-a-blockchain-company-its-shares-go-nuts-2017-12.
  10. Simandl, Chris. 2018. “Blockchain Technology Will Revolutionize Telecom, TEM, And IT Finance”. AOTMP. https://aotmp.com/blockchain-beyond-financial-data/.
  11. Cranford, Nathan. 2017. “The Role of Blockchain In Telecommunications”. RCR Wireless News. https://www.rcrwireless.com/20171218/the-role-of-blockchain-in-telecommunications-tag27-tag99.
  12. “Telstra – Target Market”. 2013. Phillipdimondtelstramajorrpoject.Blogspot.Com. http://phillipdimondtelstramajorrpoject.blogspot.com/2013/03/telstra-target-market.html.
  13. “Telstra – Our Corporate Strategy”. 2018. Telstra.Com.Au. Accessed October 27. https://www.telstra.com.au/aboutus/our-company/future/Ourcorporatestrategy.
  14. “The Biggest Tech Trends Of 2018 | Telstra Exchange”. 2018. Telstra Exchange. Accessed October 26. https://exchange.telstra.com.au/2018-tech-trends/.
  15. “Telstra Annual Report”. 2018. https://www.telstra.com.au/content/dam/tcom/about-us/investors/pdf%20F/2018-Annual-Report-singlepages.pdf.
  16. “Telstra Annual Report”. 2017. https://www.telstra.com.au/content/dam/tcom/about-us/investors/pdf%20F/Annual-Report-2017.PDF

Appendix:

Market Trends:

Fig A1. Revenue for Telstra

Fig A2. Market Shares for Telstra

Fig A3. Market overview

ITO2-Big data in real time analytics:

Fig A4. Expected outcomes of bigdata

Fig A5. ROI of bigdata real time analytics

Fig A6. Bigdata market position

ITO1- AI in home security:

 

Fig A7. Revenue AI in home security

ITO3: Blockchain

 

Fig A8. Revenue impact of Blockchain


[1] Telstra Annual Report 2018

[2] Telstra Annual Report 2017

[3] Telstra – Target Market 2013

[4] Telstra – Our Corporate Strategy. 2018

[5] The Biggest Tech Trends Of 2018 | Telstra Exchange. 2018

[6] Nones, Amina, Anjali Palepu, and Merrick Wallace. 2018.

[7] Gupta, Manoj. 2018.Transforming Telecom Sector

[8] Howe, Jeremy. 2018. CES 2018

[9] Sacoco, Noe. 2018. Deep Sentinel

[10] Nader, Ben. 2018. Facial Recognition

[11] Smart Home Australia. 2018.

[12] Oracle Bigdata, what is bigdata

[13] Technopedia, Real time big data Analytics

[14] Leigh Merrigan,2013, AppNeta Harnesses

[15] 6 Insights about Big Data Network Analytics

[16] Telstra, IoT Predictive Maintenance

[17] LACH JAMES,24 June 2014, Big Data Analytics

[18] Estuate,11 December 2017

[19] Rayner, Tristan. 2015

[20] clark, robert. 2018 Bringing Blockchain

[21] Cryptovest, 2018 Bubbletone

[22] Chapman, Sophie. 2018

[23] Seth, Samiksha. 2018 ROI

[24] Williams-Grut, Oscar. 2018. Shares

[25] Chappell, Carmin. 2018 Overstock

[26] Pash, Chris. 2018. Ookami

[27] Jager, Chris. 2018. Telstra’s Plan

[28] Simandl, Chris. 2018 Blockchain Technology

[29] Cranford, Nathan. 2017. The Role of Blockchain

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