Zain Telecom: Digital Transformation Challenges and Solutions Report

This report examines Zain Telecom's digital transformation, focusing on its business problems, strategies, and the impact on customer experience, processes, operations, and business models. The company faces challenges due to rapid digitalization and evolving customer behaviors. The report proposes four key strategies: establishing customer analytics capabilities, digitizing the order management process, innovating through customer reviews, and streamlining the application landscape. It also presents case studies of Turkcell, Telenor, and Du to illustrate successful digital transformation in the telecom industry. Furthermore, the report identifies challenges such as decentralization and operational complexities and suggests solutions. The conclusion emphasizes the importance of customer-centric approaches, data-driven decisions, and automation for Zain Telecom's successful digital transformation. It recommends a 360-degree feedback system, customer relationship management, and automation of core processes.

1. Executive Summary/ Introduction
Zain operates in Mobile Telecommunication Industry with its roots in eight Middle
Eastern and African countries. It started its operations in 1983, and in 2019, it has over
50 million active customers (zain.com). The rapid digitalization of services and content
increases innovation and competition, so businesses are not usual for telecom
providers. The Telecom Industry has challenges and competitive opportunities because
of the vast increase in smartphone subscriptions and data-intensive applications. Zain
offers network and service convergence; however, the value chains need to redefine
due to global dynamics. The key players work in collaboration across traditional
boundaries. Organizations are no more immune to disruptions, and innovation is the
only key to success for them. The paper examines the current business problem for
Zain, strategy formulation for digital transformation, and its possible impact on customer
experiences, processes, operations, and business models. Further, it elaborates on the
challenges while implementing the new strategy and recommendations for successful
strategy implementation.
2. Business Problem
Customers and contents are getting digital, resulting in a complete change in the
ecosystem of value. The digital transformation is beneficial to change the DNA for Zain
Telecom. The Company is struggling with massive structural changes. The technology
disruption, i.e., 4G LTE/ 5G, messaging apps, and products like Netflix, has eliminated
traditional technologies, i.e., wireless, cable, and other communication services. The
reason for the change in trends, i.e., the exponential growth of data volumes,

digitalization, and customers’ behavior patterns. The changes pushed the companies to
offer new services to improve competitive position (El Hilali, & El Manouar, 2019). The
purpose is to increase revenue and nontraditional offerings. That is why Zain faces
severe challenges and is interested in growing wireless revenues, increasing strategic
revenues, and reducing cost structure by transforming digitally.
Fig 1: Zain’s Reasons behind Digital Transformation
3. Roadmap (Strategies) for Digital Transformation
Four strategies for Digital Transformation which Zain can use:
 Establishing Customer Analytics Capabilities: Zain needs to implement the
system to get 360-degree feedback from customers, sales, and data-driven
decisions. In this way, the Company would outperform to gain insights about the
customers' information. Zain's revenue from texting and calls is reduced; that is
why the Company can monetize the data by offering better services. The
Company can generate customer profile, usage, and location for better customer
segmentation and data usage (El Hilali, & El Manouar, 2019).

Fig 2: Benefit of Customer Analytics to Zain Telecom
 Digitizing the Order Management Process: The Company can interact with
online companies like Amazon to offer customers convenience and speed. Zain
can replicate the services by centralizing the data and automation capabilities.
The order management system would help check frauds, payment authorization,
and customer communication on their bills; Zain can introduce full-service
smartphones to guide customers on price, product, reliability, demand, and
bundles. Such applications enhance customers' responses (Tekic & Koroteev,
2019).
 Innovation by Taking Reviews from Customers: Customer relationship is the
best strategy to increase innovation; the reviews through web portals and
multiple calls are the key to increasing profitability. Digital technologies increase
customer engagement and analyze their interaction. An increase in the reliance
on customer relationship management (CRM) system is the way to analyze

customers' demands. Further, social media is another way to take feedback from
employees and improve services (Tekic & Koroteev, 2019).
 Streamlining the Application Landscape: Applications are the best way to
compete against other digital players. Growth in 5G has increased data and
video usage, so innovation is essential to deliver the best thing at speed by
providing quick yield results. The industry companies are also delivering fraud
analytics and predictive analytics to determine each service user's risk factors.
Zain needs to automate its core processes and consolidate overlapping
capabilities (Ju, King, & Jeong, 2020).
4. Digital Transformation Cases
a) Customer Experience: The companies need to improve customers;
experiences by offering them services by analyzing their demand through
real-time analytics applications. Zain can use the strategy of Turkcell in
improving the customer’s experience. Turkcell’s strategies are presented in
case 1.
Case 1: Turkcell
Turkcell has transformed from a network operator to an experienced provider through
music offers, TV, search options, and other services. It increased revenue growth by
23% in 2017 compared to the previous year; the Company got opportunities in digital
services, healthcare, automation, and subsidiaries in different countries. It increases the
Company's valuation worldwide (Jellasi, 2018).

2. Process and Operations: The companies are getting automated, reducing
their time, and improving flexibility and speed. The focus has to put on cloud
infrastructures in an automated way at a low cost.
Case 2: Telenor
Telenor’s infrastructure is managed through automation as it relies on “Network
functions virtualization and software-defined networking.” It has recently planned to
move toward 5G. The new system has high-security requirements to create a data and
security awareness culture. The data is analyzed through predictive analytical tools;
success is dependent on how to use data for optimization and better monetization
(Tekic & Koroteev, 2019).
3. Business Model: The Company is recommended to automate the
system; when companies collect customer information and contact, it can
leverage real-time analytics across applications. More storage and
computational power is needed.
Case 3: Du
Automation is better to handle such an extensive database. Du uses "infrastructure-as-
a-service" strategies. Top-performing companies through IT processes, i.e., service
ticket management, server provisioning, and cost efficiencies. The top-performing
companies like Du rely on IT processes, i.e., DevOps and load balancing. It has
doubled the customers for Du. The purpose is to automate capacity and improve
flexibility (Ju, King, & Jeong, 2020).

5. Challenges and Solutions
Challenge Solution
Decentralization of
Existing Digital Structure
The traditional system would be a challenge; the
decentralization needs to be done both internally and
externally for better decision making and purchasing
decisions.
Operational Complexities Handling operational complexity is another challenge
through varied services to a wide range of customers.
The focus needs to be put on configuration, customer
support, and better billing options to handle the
situation. It would reduce the cost.
Updating Legacy System As technology is changing fast; hence, it is essential to
integrate all aspects of digital transformation. Careful
planning and foresight are necessary.
6. Conclusion and Recommendations
 360-degree feedback is beneficial to customers, sales, and data-driven
decisions. In this way, the Company would outperform to gain insights about the
customers' information. The Company can generate customer profile, usage, and
location for better customer segmentation and data usage.

 The order management system would help check frauds, payment authorization,
and customer communication on their bills; besides, full-service smartphones to
guide customers on price, product, reliability, demand, and bundles are crucial
(Tekic & Koroteev, 2019).
 An increase in the reliance on customer relationship management (CRM) system
is the way to analyze customers' demands.
 Social media is another way to take feedback from employees and improve
services.
 Zain needs to automate its core processes and consolidate overlapping
capabilities.

REFERENCES
El Hilali, W., & El Manouar, A. (2019). Towards a sustainable world through a SMART
digital transformation. In Proceedings of the 2nd International Conference on
Networking, Information Systems & Security (pp. 1-8).
Jellasi, T. (2018). Turkcell (B): From a telecom network operator to a customer
experience provider. Accessed on 30th Oct 2020 from:
https://www.imd.org/research-knowledge/for-educators/case-studies/turkcell-b-from-a-
telecom-network-operator-to-a-customer-experience-provider/
Ju, Y., Kim, Y., & Jeong, S. R. (2020). Unstructured Data Analysis using Equipment
Check Ledger: A Case Study in Telecom Domain. Journal of Internet Computing
and Services, 21(1), 127-135.
Tekic, Z., & Koroteev, D. (2019). From disruptively digital to proudly analog: A holistic
typology of digital transformation strategies. Business Horizons, 62(6), 683-693.
Zain.com., About the Company. Accessed on 30th Oct 2020 from:
https://www.zain.com/en/