Telstra Business Strategies Analysis

This assignment examines Telstra's business strategies, highlighting its focus on customer experience, digital transformation, and core values. It analyzes the company's strengths, weaknesses, challenges, and opportunities within the Australian telecommunications market. The analysis considers various strategic frameworks like Blue Ocean Strategy and Porter's Five Forces to evaluate Telstra's current position and potential for future growth.

Running head: STRATEGIC INFORMATION SYSTEMS
Strategic Information Systems
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1STRATEGIC INFORMATION SYSTEMS
Abstract
Strategic Information Systems are the information systems which are being developed
in order to response to the initiative of corporate business. They help in delivering a
product or any service at a very low cost, which is differentiated and moreover they
focus on a specific market segment which is innovative. Telstra has been the largest
telecommunications company in Australia that operates and builds telecommunication
networks, mobile, market voice, internet accessibility, provides television,
entertainment products and other services. It provides high network coverage, meeting
the customers’ needs and demands. It has been delighting the customers by providing
them with the best services and products, which is the main focus of the company.
Telstra has focused on enabling the digital experience for the customers by building
platforms of digital media and working in digital ways. Its focus on the core values in
order to drive great accountability and simplicity all throughout the company, has led to
the business growth. It needs to reshuffle few of its strategies in order to gain
international recognition in a huge way.
Key words: Strategic Information Systems, Corporate, Telstra, Organization,
Recognition

2STRATEGIC INFORMATION SYSTEMS
Table of Contents
1. INTRODUCTION........................................................................................................ 3
2. DISCUSSION............................................................................................................. 3
2.1. Deliverables............................................................................................................ 3
2.1.1. Business Challenges Of Telstra........................................................................3
2.1.2. Business Priorities Of Telstra..........................................................................5
2.1.3. Impact Of IT On Telstra Using Porter’s Five Forces Model.............................6
2.2. Strategizing............................................................................................................ 7
2.2.1. IT Support For Telstra.....................................................................................7
2.2.2. IT strategic steps.............................................................................................7
2.2.3. IT strategic mistakes........................................................................................7
2.2.4. IT actions missed out by the CIO.....................................................................8
2.2.5. IT risks faced today..........................................................................................8
2.2.6. Mitigating the risks.......................................................................................... 8
2.2.7. Red Ocean Factors and Blue Ocean Strategies...............................................8
3. CONCLUSION........................................................................................................... 9
4. REFERENCES.......................................................................................................... 10
5. APPENDICES........................................................................................................... 11

3STRATEGIC INFORMATION SYSTEMS
1. INTRODUCTION
Strategic Information Systems, often abbreviated as SIS, are the information
systems which are being developed in order to response to the initiative of corporate
business. They prove beneficial for any organization and gives competitive advantage.
They help in delivering a product or any service at a very low cost, which is
differentiated and moreover they focus on a specific market segment which is innovative
(Galliers, and Leidner 2014).
The main objective of this report is to throw light on an organization named
Telstra’s strategic information systems. Australia based organization; Telstra
Corporation Limited is a Media and Telecommunications company that operates and
builds telecommunication networks, mobile, market voice, internet accessibility,
provides television, entertainment products and other services. The company is the
largest telecommunications company in Australia (Majchrzak and Malhotra 2013).
The report highlights the company’s top five business challenges and priorities
by thoroughly understanding and analyzing the strategy. Furthermore, it explains the IT
support of Telstra and the strategic steps taken during the past three years. Moreover,
it includes the risks and challenges faced by the company and how it is faced.
2. DISCUSSION
Telstra is the biggest telecommunication company in Australia, which originated
as government department. Now, it is fully privatized and is giving focus on customer
benefits. It has also increased its focus on international market growth. Its head office is
located at Exhibition Street, Melbourne. In this part of the essay, several points related
to the business strategies and challenges of the company will be discussed in details
(Lees-Marshment 2013).

4STRATEGIC INFORMATION SYSTEMS
2.1. Deliverables
2.1.1. Business Challenges Of Telstra
Telstra Corporation Limited has been dealing some serious problems and
challenges so far. The top five challenges of Telstra Corporation Limited are being
discussed here.
 The retail revenue of the company has fallen by 5.6% and the income by 1.8%
even after the regulatory changes were excluded.
 The growing demand of materials is leading to the fall of prices, which is
hampering its revenue structure.
 Slow dividend growth is leading to the fluctuation of market price.
 The revenue collection from mobile phones has decreased by 8.7%.
 The technological challenges faced by the company, that is, hacker attacks,
malware and constant change in the intent and form as well as cyber attack ( P
Ath An,Wei, and Fortino 2013).
(Figure: Segment information for continuing operations
Source: Businessinsider.com.au, 2017)

5STRATEGIC INFORMATION SYSTEMS
(Figure: Product Performance
Source: Businessinsider.com.au, 2017)
2.1.2. Business Priorities Of Telstra
The top five business priorities of Telstra organization has been discussed in this
part of the report.
 Delighting the customers by providing them with the best services and products
is the main focus of the company.
 The company makes changes in order to ensure that the core of the business is
much efficient, profitable and sustainable. This is mainly done by focusing more
on customers’ demands and growth of revenue.
 The focus is on expanding the business to reach the global market.
 Telstra focused on enabling the digital experience for the customers by building
platforms of digital media and working in digital ways.
 Telstra refocuses on its core values in order to drive great accountability and
simplicity all throughout the company (Peppard and Ward 2016).

6STRATEGIC INFORMATION SYSTEMS
2.1.3. Impact Of IT On Telstra Using Porter’s Five Forces Model
(Figure: Porter’s five forces model
Source: Businessinsider.com.au, 2017)
Telstra is the largest telecommunications company in Australia with a large
customer base. The impact of IT on the company is described here using Porter’s five
forces model. The IT has an impact on the competitive rivalry of the company, that is,
the number of competitors and quality differences, through enhancing the retail and
wholesale segments. Its impact on the buyer power creates a difference between the
competitors and size of each order. IT impact minimizes the threat of new substitutes,
that is, new products and services, by constantly keeping a track record of the
competitors’ performance. It helps in stabilizing the market position as the bargaining
power of the suppliers can influence the revenue collection of the company. Lastly, it
helps in protecting the technology from the threat of new entrants by providing
technological barriers (Whittington 2014).
2.1.3.1. Balance of Power
The company has competitive rivalry in the market which proves its quality
factor. Moreover, the IT impact minimizes the threat of any new entrants, keeping a

7STRATEGIC INFORMATION SYSTEMS
track record of everything. The technological advancement helps in protecting the
company’s profile from any unauthorized entry and competition.
2.2. Strategizing
2.2.1. IT Support For Telstra
Telstra should become more digitized to enable the customers with brilliant
experiences and services. It must start polishing its digital platforms for moving to the
digital ways working procedure. Their network is the biggest advantage for the highly
competitive market. The network should deliver huge coverage and speed along with
strong security and reliability (Telstra.com.au 2017). The technological advancement
helps in securing the company’s profile from the threat of unauthorized entrants.
Moreover, it should help in minimizing the technological risks through technological
barriers. It must also keep a track record of the competitors’ performance which will
help in renewing their strategies in accordance with that (Willcocks 2013).
2.2.2. IT strategic steps
In the past three years, the CIO of Telstra has undertaken some IT strategic
steps for the business growth. The company is became digitized in order to enable the
customers with more benefits along with digital media experience. The digitization
enabled the company to reach the global platform. It undertook steps to build as well as
enhance the priority capabilities in order to drive the critical shifts of culture
(Telstra.com.au 2017). It built in new businesses for the growth and progress of the
company. It enhanced its network coverage areas for higher coverage along with speed.
The technological advancement helped in keeping a track record of the competitors’
performance and provided security from unauthorized entrants (Whittington 2014).
2.2.3. IT strategic mistakes
The worst strategic IT mistakes which the CIO of the company committed in the
past three years are discussed here. The technological advancement led to confusion

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between the marketing and its strategy. It is important to have an insight to the
customers’ needs and demands but at the same time, one must not confuse the strategy
with marketing. The technological challenges faced by the company, that is, hacker
attacks, malware and constant change in the intent and form as well as cyber attack.
The slow dividend growth led to the fluctuation of market price. The growing demand of
materials in the last few years led to the fall of prices, which has hampered its revenue
structure (Lees-Marshment 2013).
2.2.4. IT actions missed out by the CIO
The important IT actions and opportunities missed out by the CIO of Telstra
Corporation Limited are explained here. The growth in the demand led to the price fall.
Increase in the demand of services was being met with constant falling prices, which led
to the fall in data prices. None of the media converged or interacted which posed a
bigger threat for the company (Telstra.com.au 2017). Technological changes led to
hacker attacks, malware detection as well as cyber attack. The collection of revenue
from mobile phones decreased to a percentage, which led to its price fall. Confusion
between marketing and strategy stopped the flow in the business (Galliers and Leidner
2014).
2.2.5. IT risks faced today
The worst IT challenges the company faced today are discussed here. Digital
marketing is not done in an adequate manner for which the company is not gaining
international recognition. The technological challenges the company is facing, that is,
hacker attacks, malware and constant change in the intent and form as well as cyber
attack (Telstra.com.au 2017). The slow dividend growth is leading to the fluctuation of
market price. The growing demand of materials is leading to the fall of prices, which is
hampering its revenue structure (Majchrzak and Malhotra 2013).
2.2.6. Mitigating the risks
The risk factors can be mitigated by adapting the following steps. It can
undertake measures of delighting the customers by providing them with the best

9STRATEGIC INFORMATION SYSTEMS
services and products. The focus must be on expanding the business to reach the global
market. Telstra should focus on enabling the digital experience for the customers by
building platforms of digital media and working in digital ways. The technological
changes must be made with full security in order to restrict unauthorized entrants.
Telstra should refocus on its core values in order to drive great accountability and
simplicity all throughout the company (Peppard and Ward 2016).
2.2.7. Red Ocean Factors and Blue Ocean Strategies
The factors contributing to “Red Ocean” and “Blue Ocean” strategy are
discussed in the report.

10STRATEGIC INFORMATION SYSTEMS
Red Ocean Factors of the Market
 Competition with the existing
market.
 Focus on the current customers’
demands.
 Beating the competition.
 Exploitation of existing demands.
 Making the value cost trade off and
alignment of the organization by
differentiation or lower cost
(Willcocks 2013).
Blue Ocean Strategies for the Market
 Focusing on the non-customers.
 Creating and serving uncontested
markets
 Making competition irrelevant;
creating and capturing new
demand.
 Breaking the value cost trade off.
 Alignment of the organization with
cost and differentiating factors
(Willcocks 2013).
3. CONCLUSION
To conclude, Telstra has been the largest telecommunications company in
Australia that operates and builds telecommunication networks, mobile, market voice,
internet accessibility, provides television, entertainment products and other services. It
provides high network coverage, meeting the customers’ needs and demands. It has
been delighting the customers by providing them with the best services and products,
which is the main focus of the company. Telstra has focused on enabling the digital
experience for the customers by building platforms of digital media and working in
digital ways. Its focus on the core values in order to drive great accountability and
simplicity all throughout the company, has led to the business growth. However, it
needs to reshuffle its few strategies in order to gain international recognition in a huge
way.

11STRATEGIC INFORMATION SYSTEMS
4. REFERENCES
Businessinsider.com.au, N. (2017). Telstra's growth challenges explained, in 3 charts.
[online] Business Insider Australia. Available at:
https://www.businessinsider.com.au/telstras-growth-challenges-explained-
in-3-charts-2017-2 [Accessed 2 Sep. 2017].
Galliers, R.D. and Leidner, D.E. eds., 2014. Strategic information management:
challenges and strategies in managing information systems. Routledge.
Lees-Marshment, J., 2013. Political Marketing and Governance: Moving Towards the
Political Partnership Model of Organization?. New Technology,
Organizational Change and Governance, Basingstoke: Palgrave McMillan,
pp.218-234.
Majchrzak, A. and Malhotra, A., 2013. Towards an information systems perspective and
research agenda on crowdsourcing for innovation. The Journal of
Strategic Information Systems, 22(4), pp.257-268.
P Ath An, M., Wei, G. and Fortino, G., 2013. Internet and Distributed Computing
Systems.
Peppard, J. and Ward, J., 2016. The strategic management of information systems:
Building a digital strategy. John Wiley & Sons.
Telstra.com.au (2017). [online] Available at:
https://www.telstra.com.au/content/dam/tcom/about-us/investors/pdf
%20D/telstra-annual-report-2015.pdf [Accessed 5 Sep. 2017].
Telstra.com.au (2017). [online] Available at:
https://www.telstra.com.au/content/dam/tcom/about-us/investors/pdf-e/
Annual-Report-2017.PDF [Accessed 5 Sep. 2017].

12STRATEGIC INFORMATION SYSTEMS
Whittington, R., 2014. Information systems strategy and strategy-as-practice: a joint
agenda. The Journal of Strategic Information Systems, 23(1), pp.87-91.
Willcocks, L., 2013. Information management: the evaluation of information systems
investments. Springer.

13STRATEGIC INFORMATION SYSTEMS
5. APPENDICES