MIS500: Telstra's Digital Disruption and Customer Impact

This report examines the impact of digital disruption on Telstra, a telecommunications company. It explores how Telstra has adapted to changing customer expectations and leveraged digital technologies to enhance its services and business models. The report details the effects of digital disruption, i...Read More

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Table of Contents
Topic................................................................................................................................................1
Introduction......................................................................................................................................1
Digital Disruption in Telstra............................................................................................................1
Effect of digital disruption on customers.........................................................................................2
Transformation in Telstra after digital disruption...........................................................................3
Conclusion.......................................................................................................................................4
References........................................................................................................................................5

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Topic: Effect of digital disruption in Telstra
Introduction
Digital disruption includes changes that occurs with new digital technologies as well as
new business models that affects value proposition of the products and the services that already
exists in the organization (Barns et al., 2017). There is a rapid increase of using mobile devices
for personal use and for work environment. The shift of this rapid change is also called as
consumerization of IT. The use of mobile devices has increased potential digital disruption in the
industries.
Digital disruption in the organization affects the expectation of the customer and helps to
evaluate the behaviors evolvement of the customers (Dooley, 2019). This might cause the
organizations to change their services and products as per the expectation of the customers and
the feedback is evaluated. The shift in digital strategy helps to improve their services.
This report describes the change and the effect that digital disruption has on the customer
expectation in Telstra. This report explains how Telstra have improved business services and
customer engagement with the help of digital disruption. The report also explains the changes
that Telstra has faced after the implementation of digital disruption.
Digital Disruption in Telstra
With the improvement of digital age, the customer of a company expects to communicate
as well as interact with others in a particular way that are appropriate for their needs. Customer
behaviors keeps on changing, that involves the way they talk to insatiable appetite and includes
accessible content (Evans et al., 2019). The professional as well as the personal lines are blurred

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and the customer of a company wants to have high technology experience with the business
environments. Customers of Telstra wants secure and straightforward service keeping their
mobile device in center (Evans, 2017). To ensure all such services, Telstra has incorporated the
features of digital disruption so that they can meet the customer expectation and have a proper
communication with their customers.
Telstra with digital disruption is providing the facility to the customers to have strategic
change that is required to implement digital business in the business. The digital applications that
are used by Telstra is helping them to change their business process to digital business and
consecutively providing reliability with high performance (Clarkson, 2016). The service
management that Telstra wants to incorporate with digital disruption is collaboration, cloud
service and enhanced connectivity with the customers. Telstra has improved its digital security,
optimized the information, improved its efficiency and finally can reduce the cost of their
services.
Effect of digital disruption on customers
The factors that effects the customer after the implementation of digital disruption in
Telstra are listed in the section below.
1. Speed of innovation: Disruption of technology occurs very fast and the company needs
to cope up with the digital disruption with the implementation of updated technologies. The R&
D department of Telstra needs to look after the fact that technologies should be updated and
changed with time to time.
2. Increase the level of competition: With the implementation of digital disruption,
Telstra can accelerate ideas of competition in the market and helps to facilitate the previous

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magnitude of the ideas (Bazzoun, 2019). The result of implementing digital disruption is
enhancing in Telstra and has increased customer satisfaction within the business environment.
3. Interactions are made personalized: With the big data analytics in Telstra, it is now
possible for the company to have enhanced relevant customer communication and have
personalized as well as targeted communications that was not practiced before. Consumers needs
personalized offers and loyalty points that were possible after the implementation of digital
disruption. Telstra can control their appeal to the individual customers.
4. Integration: Not having integration, the digital technologies cannot be fully unleashed.
There should be integration for creating the cohesion in all the market channels as well as in
platforms (Australian Government-Productivity Commission, 2016). There should be internal
marketing functions that helps to understand the data patterns in a better way and enhance
customer interactions. Digital disruption can also increase the speed of interaction with the
customers.
Transformation in Telstra after digital disruption
After the implementation of digital disruption, the changes that Telstra has encountered
are:
1. Telstra was able to create a new infrastructure of the business unit. The named it as
InfraCo and it helped them to drive the performance as well as helps to provide the option for
entering in to strategic investor.
2. This has helped to transform the plans of the customers and prices so that they can
improve the experience of the customers.

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3. Helps to increase the productivity program from $1 billion to an increase of 2.5 billion.
4. Telstra was able to reduce the net reduction of employees by 8000 and also was able to
reduce the contractors (Catchpole, 2018). With the help of digital disruption, it was able to
decrease 2 to 4 management layers in the business.
5. Telstra was also able to strengthen their balance sheet with approximately 2 million
assets in two years of implementation.
6. Telstra became the premium brand for the people of Australia and conquered the
market with 5G plan.
Conclusion
With the implementation of digital disruption, Telstra implemented four pillars. Telstra
plans to simplify their product offerings, wants to eliminate the pain points of the customers and
will create a good digital experience. Telstra wants to establish standalone infrastructure of
business so that they can drive performance and can set out optional post for rollout. Telstra
wants to simplify the structure and their way of working so that they can empower the people
and can serve their customers in better way. Telstra also wants to reduce their cost of service and
include portfolio management in the business strategy.
With the implementation of digital disruption in Telstra, it was able to become the market
lead in the area of telecommunication. Telstra was able to improve its business strategies and
was able to increase the customer satisfaction bringing a rapid change in the working
environment. With the help of disruptive technologies, different business models, different
approaches of innovation management and various digital services, Telstra was able to improve
its business strategies and satisfy the expectation of the customers.

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References
Australian Government-Productivity Commission. (2016). Digital disruption: What do
governments need to do?. Productivity Commission Research Paper.
Barns, S., Cosgrave, E., Acuto, M., & Mcneill, D. (2017). Digital infrastructures and urban
governance. Urban policy and research, 35(1), 20-31.
Bazzoun, M. (2019). The Digital Economy. International Journal of Social Science and
Economics Invention, 5(09), 116-to.
Catchpole, H. (2018). Addressing digital disruption in skills and career pathways: The careers
with STEM platform. Access, 32(2), 28.
Clarkson, M. A. (2016). Disruptive innovative technologies are overcoming the legislative
protection otherwise entrenching Australian telecommunications obsolescence.
Dooley, K. (2019). Teaching Screen Arts in Australia: Challenges, Opportunities and Current
Trends. In The Palgrave Handbook of Screen Production (pp. 427-441). Palgrave
Macmillan, Cham.
Evans, M., Dunleavy, P., McGregor, C., & Halupka, M. (2019). Towards digital era governance:
lessons from the Australian experience. In A Research Agenda for Public Administration.
Edward Elgar Publishing.
Evans, N. D. (2017). Mastering Digital Business. BCS Learning&Development Ltd, 57-65.