Strategic Report: Addressing Telstra's Business Issues and Solutions

This report provides an in-depth analysis of the problems affecting Telstra, Australia's largest telecommunication company. The report identifies three primary issues: continuous service outages, a damaged reputation, and poor customer relationship management. It explores strategic options such as customer relationship management, system monitoring, and public relations initiatives to address these challenges. The report also proposes project options, including the implementation of real-time monitoring software and sustainable management practices, along with recommended deliverables such as the installation of real-time monitoring software to model and simulate the service delivery system and customer participation activities to rebuild customer trust and improve the company's image. The report aims to provide actionable solutions to help Telstra overcome its current difficulties and improve its market position.

Running head: INNOVATION AND BUSINESS DEVELOPMENT 1
Innovation and Business Development
Student Name
Institution

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Executive summary
The aim of the report is to identify problem affecting the business and develop strategies
to solve those problems. The report explores problems affecting Telstra the largest
telecommunication company in Australia. The three identified problems include continuous
service outage, bad reputation and poor customer relations management (ABC News, 2018).
Some of the cited strategic option or interventions include customer relationship management,
system monitoring and management, public relations, quality management and system update or
upgrade. Some of the project options cited in the report include software implementation that
real-time monitor, and public relation and sustainable management practices. The report also
reveals some recommended deliverable options that will assist the company to realize and solve
the problems it has been facing in the recent past. Some of the cited activities include installation
of system real-time monitoring software that will model and simulate the service delivery
system, and public relation activities such as customer participation activities, sustainable
management activities such as community service activities.

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Table of Contents
Introduction.................................................................................................................................................3
1. Problem...............................................................................................................................................3
1.1 Defining the problem........................................................................................................................3
1.2 Evidence of the problem...................................................................................................................4
1.3 Timing considerations.......................................................................................................................4
2. Benefits................................................................................................................................................5
3. Strategy options..................................................................................................................................6
3.1 Strategic options analysis.................................................................................................................6
4. Project analysis options.......................................................................................................................9
4.1 Project options..................................................................................................................................9
4.2 Stakeholders...................................................................................................................................10
4.3 Impact of the project......................................................................................................................10
5. Deliverability recommendations........................................................................................................11
Conclusion.................................................................................................................................................11
References.................................................................................................................................................13

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Introduction
Customer service is an important aspect of business operation and poor customer service
result in low quality and bad company reputation. Telstra telecommunication has been on the
receiving end due to continuous service outage experienced in the recent past. Some of the
serious problems that are currently facing the company include poor Telstra reputation in the
market, continuous service outage and poor customer relation management resulting from poor
service. The main aim of the report is to explore the problems that are affecting Telstra and
possible strategies to solve these problems. Therefore, this report presents the problems,
strategies to solve them and recommended projects to deliver strategies.
1. Problem
1.1 Defining the problem
Maintaining reputation resulting from service outage is an important problem that Telstra
need to tackle. This problem can be divided into three and these include poor customer relation
management, service outage and maintaining reputation. Firstly, for a long period of time
network service outage has been a problem of Telstra with leading to dissatisfaction and hence
poor rating among customers. This is evidence of the poor customer relationship management
that has rocked the company in the recent past (Graham, 2018). Secondly, the company is also
currently faced with the problem of maintaining its reputation within the Australian market. The
problem of network outage has threatened the company to bring down the reputation of the
company as many customers think of moving to a close competitor Telco-Dodo. Thirdly, service
outage is the final problem that has resulted in the above problems. Service provision is number
one priority factor that enables the company to keep its market share and this has failed with

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several network outage witnessed in the company. Service outage problem has been ongoing for
quite some time with several occurrences being from last year and more recent 1st May 2018
(ABC News, 2018).
1.2 Evidence of the problem
There are several cited cause of the service outage that has resulted in declining
reputation of the company. Firstly, as reported by Jackson (2016), the company experienced the
service outage was caused by technical changes that were made to upgrade the system. Secondly,
September last year the company also experienced service outage caused by a fire at Chatswood
exchange leading to compromised SMS services. These have resulted in poor customer rating
and negative comments from customers. In addition, the negative customer comments and rating
affects the company’s reputation in the Australian telecommunication market (Stanojevic, 2017).
1.3 Timing considerations
The maintain reputation problem caused by service outage requires quick solution since
the company might suffer customer reduction. Firstly, the quality of the service is continuously
reducing with a number of Australians unable to make or receive calls during these service
outage moments. This is detrimental to both company and customers that some fully depend on
services offered by Telstra. Secondly, declining reputation of the company has raised concerns
over the fear that the company might end up being outcompeted by other companies leading to
declining in overall company performance. For instance, some customers cited an example of
Vodafone that was almost out of the market due to poor service (Greenberg, 2009).

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2. Benefits
Solving the problem of service outage and declining reputation will help the company to
continue operating within the market, offers good quality service and continuing giving services
to Australian citizens. Firstly, maintain reputation within the market is an important business
factor that makes the company strives within a competitive Australian telecommunication
market. Secondly, solving the problem of service outage is tied to the high quality of service that
meets customer expectation and satisfies customers. Thirdly, solving the company’s problem
ensures that the company continuous its operation within the market and hence continuous
giving service to its huge number of customers (Jackson, 2016).
Solving service outage and declining reputation also are important to the government that
gets revenue from Telstra. The Australian government is a beneficiary of the company through
taxes and the company also offers employment to many Australians as part of government
employment initiative. Solving the service outage problem, for instance, make the company
continue giving service to customers and this also ensures that the company meets government
service requirement. Currently, the Australian government has tried to improve the living
standard of citizens and the government through its policies seeks to ensure that key business
players such as Telstra offer quality service to citizens. In addition, the government wants to
create equal employment opportunities to citizens and this can be possible by current
employment opportunities offered by the company. This implies that declining reputation and
service outage threaten the company’s future survival in the market (Greenberg, 2017).

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3. Strategy options
Customer service and good reputation are two main factors that make a company survive
in the market and are tied to good continuous customer service. Solving these three problems
require the business to consider some strategic options. Firstly, improving customer relationship
management is one area that can bring back customer trust for the company. Secondly,
improving company IT infrastructure is another area that will ensure that the business continues
to give customer service. This will also help in restoring the service outage problem that has
rocked the organization in the recent past. Thirdly, good reputation development is another way
that will ensure the company has a good reputation within the market (Nirpaz & Pizarro, 2016).
3.1 Strategic options analysis
There are many different options that can be used to solve the problem affecting the
company.
Strategic interventions
System monitoring
In the modern digital era, real-time system monitoring is important for solving service
outage problem. The sys solving them monitoring software serves to be an important
intervention that shows the potential of solving service outage. In addition, the monitoring
software is installed onto the system to detect any anomaly in the system that may result in
service outage (Nadel, 2014).
System upgrade and update

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There is need to upgrade infrastructure is also a recipe for solving service outage within
Telstra. Telstra is the largest telecommunication company in Australia need to consider
improving its infrastructure to accommodate the rising number of customers within Australia and
internationally. High service load is one of the problems that affect the Telstra and there is need
to upgrade infrastructure to support this load (Ryan, 2017).
The software update is another problem that has been reported by the company as the
source of the problem that resulted in the service outage that occurred on March 17, 2016. When
the service outage occurred the company reported that the problem was due to a software update
that behaved anomaly that this, therefore, needs a more updated system that will not crush.
Periodic software update and upgrade are essential for the better operation and customer service
(Nadel, 2014).
System recovery procedure
System recovery framework needs to be developed to help in restoring the system in case
of an outage. When first major service outage occurred in February 2016, a wrong procedure was
cited as the main reason for the failure of the system to restore. This was attributed to human
error and there is a need for the development of recovery procedure or framework that will help
in responding to the system is out of service. There is a need for the development of a clear and
comprehensive response and recovery procedure to prevent any future service outage (Bettina,
2017).
Backup System

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Another intervention is system backup that is set standby for any eventuality that may
occur in the course of operation. This backup system is good for testing software before using in
the main system. In case of update or upgrade, parallel backup is used when the other system is
out of service. This will ensure that there is no complete service outage that has been
experienced in the past (Jackson, 2016).
System forecasting
In the current digital era, system forecasting is important for maintenance of quality
service. One way of system forecasting that has system modeling and virtual reality service
forecasting. System forecasting important for predicting any problem within the system or
likelihood of problems occurring when changes in the system. System modeling is also helpful in
predicting the behavior of new software used in the system before actual usage in the system
(Bettina, 2017).
Customer relationship management
Customer relationship management is an intervention that aims to restore customer trust
in the company. Since the onset of service outage, many customers have taken to social media
platforms to show their dissatisfaction with the company. This implies that the company is most
likely to lose its reputation in the Australian market. Improving customer service is another
important intervention that has the prospect of improving customer relationship (Avery, 2014).
Quality management

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The quality monitoring system is another customer trust restoration intervention
following quality comment made by the customer after several service outages. Many customers
expressed their concern about the quality of service offered by Telstra and there is need to
monitor quality to ensure that quality of service remains high. The quality intervention also aims
to improve the customer service manager that will restore the trust of the customer in the
Australian market (Craig & Glascoff, 2014).
4. Project analysis options
4.1 Project options
There are many project options that can be sued to build the customer reputation
restoration. Firstly, public relations that will involve activities to build a customer relationship
with Telstra and restore public confidence are one project option (Breakenridge, 2012). A strong
public relation is important to maintain the reputation of Telstra in Australian telecommunication
market. Telecommunication market is currently questioning Telstra quality of service and this
can be corrected based on the public relation. Moreover, public relationship offers a solution of
establishing a good relationship with customers throughout Australia. Evaluation of public
relation is based on feedback from the customer and general customer rating of the company
(Stuart, 2012).
Secondly, a real-time monitoring system that involves various inspection systems and
evaluation strategies is another project option. The real-time monitoring system will include
monitoring systems, forecasting systems and modeling systems that work to inspect the system
continuously and forecast any unexpected behaviors in the system. The monitoring system

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includes software with capabilities of simulating the real system and hence evaluates the system
to prevent any service outage (Ryan, 2017).
A sustainable management system that aims to betters business operation of the company
in the market environment. The sustainability project is based on social, economic and
environmentally sustainable practices. This project will employ various environmental practices
that improve the overall performance of Telstra in Australia. Secondly, economically sustainable
practices that set economic situations in the country and providing customer services that will
improve lives of Australians (Tavana, Fili, Tohidy, Vaghari & Kakouie, 2013).
4.2 Stakeholders
There are many different stakeholders that will be part of the project and some of these
are customers, government, companies, and shareholders. Customers will take part various
Telstra activities that include evaluation and public relations activities. Government forms the
regulatory body that certifies those activities. Companies are core customers and suppliers of the
Telstra and also a participant of public relations. Shareholders are part of financing agencies that
form part of management and evaluation of Telstra (Delimiter, 2010).
4.3 Impact of the project
Firstly, the consumer involvement will help in building consumer social responsibility
that has an impact on the perception of the consumer. Perception of customers is an important
factor in building company’s reputation in the telecommunication (Kelleher, 2018). The project
serves to build customer trust for Telstra and focus building customer participation in the
delivery of services. Secondly, the project will improve the environment in two different areas
that include business environment and natural environment. Market environment will have an

INNOVATION AND BUSINESS DEVELOPMENT 12
impact on Telstra through its customer service improvement. Thirdly, the project has an
economic impact on both customers and the government since there will be reduced service
outage and taxes to the government. Service will improve and lives of many Australians will be
improved through the project. In addition, the project is promising on the economic basis since
the project aims to maintain the reputation of Australia firm hence continuing to provide
employment (Nirpaz & Pizarro, 2016).
Financial impact of the innovation
The cost of the project can be divided into three depending on the aspects of the project
and these include cost of public relations, cost of development of monitor system and sustainable
management system. Firstly, the public relations entail various activities such as public events,
press release and client events totaling to $22,600. Secondly, the cost of monitoring system is the
most expensive with approximately $57,500 per year of successful monitoring system. Thirdly,
the cost of sustainable management system is almost similar to the cost of public relation with a
combine cost of $19,400. The total cost of the whole innovation will be $99500 and include
other cost that are on human resource though it is assumed that human resource are current
employees of the organization (Javier 2016).
5. Deliverability recommendations
The solution can be delivered through some recommended steps. Telstra needs to review
its system and come up with software that monitors system. There is some software on the
market that currently monitors telecommunication systems to ensure everything is working
normally. Some of the software includes performance monitor software, virtual reality software,
system monitor software and server monitoring and management software (Stanojevic, 2017).

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Secondly, one of the public relation activities to help restore the trust of the customer is
organizing some social activities and community services (Greenberg, 2009). Some of the
community activities also make the company increase its sustainability approach to the
environment. One activity involving customers in service delivery process of the company where
customers are allowed to suggest areas that need improvement and how to improve those areas.
Another activity that will help in sustainability is organizing trees planting day and taking part in
the event help restore the public relation (Belz & Peattie 2010).
Conclusion
In conclusion, the paper identified Telstra as an organization that has been experiencing
low reputation in the market caused by the occasional service outage. Service outage is a
significant problem that affects the company and seriously need to be addressed through
management and innovative means. Some the ways identified for tackling the problem include
system monitoring, public relation, and sustainable management practice. To deliver these
solutions software that monitor system, public relation activities and environmental activities that
restore the trust of customers on the company.

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