Define an overarching B2B operating model to drive collaboration and alignment (especially where there are multiple adjacent B2B entities, subsidiaries, or product houses).
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Optimized account segmentation and tiering
Segment customer groups based on their key attributes and classify managed accounts into tiers to optimize sales resources.
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Tailored channels by segment
Tailor sales approaches and communication channels to the requirements of the defined customer segments and tiers.
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Attractive incentive schemes
Create an incentive scheme covering sales and other commercial functions to deliver on revenue targets across telco and IT/digital.
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Enhanced and agile portfolio structure
Implement the optimal portfolio structure archetype and adopt agile product development practices to prioritize recurring revenues.
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Consultative business development
Elevate business development efforts to understand and shape customer needs proactively.
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Innovative business models and partnerships
Create effective business models and partnership frameworks to implement large-scale projects and capture long-term value.
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Seamless digital channels and CEX
Streamline and improve B2B customer journeys, increasingly leveraging digital channels across key touchpoints.
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AI-powered strategies for B2B growth
Harness the power of AI to enhance internal operations and unlock new revenue streams and business models.
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Embracing the shift:
A new B2B tool kit for telcos
As B2B connectivity stagnates,the future of MENA telcos lies in theIT and digital market, expected to grow 11.3%1annually from 2024 to 2028.
To seize this opportunity,telco B2B companies must reinvent themselves as digital enablers. Our tool kit offers9 critical success factorsto navigate this transformation.
Unlock your potential in the IT and digital market.
B2B tool kit for telcos
Integrated operating model
An integrated B2B operating model is required to drive collaboration among departments and subsidiaries.
Optimized account segmentation and tiering
In the evolving B2B market, customer accounts varying in size, sector, potential, or other characteristics can be segmented by size or vertical.
Tailored channels by segment
Customized sales techniques and methods of communication should be tailored to each different segment and customer tier.
Attractive incentive schemes
Designing an optimal incentive scheme to reach sales targets is vital in today's complex IT and digital market, with eligibility, KPIs, and payout models as key components.
Enhanced and agile portfolio structure
A B2B company's optimal portfolio will align with strategic benefits, utilize agile methodologies, and be tailored to targeted segments.
Consultative business development
Consultative business development is an approach that offers a chance to create lasting relationships with customers by working closely with them to identify their needs and challenges.
Innovative business models and partnerships
Accelerating customer engagements in today's complex B2B IT and digital landscape requires telcos to be far more creative and flexible in the business models they propose.
Seamless digital channels and CEX
Seamless digital channels streamline B2B journeys and enhance experiences by managing touch points and boosting the customer experience index.
AI-powered strategies for B2B growth
AI-powered use cases drive B2B growth by unlocking new revenue streams, enhancing customer engagement, optimizing operations, and reducing costs.
How we can help
In the competitive telco and IT/digital sector, staying ahead by transforming into an integrated digital solution provider means rethinking your strategy, operating model, and go-to-market approach. Strategy& offers the expertise to leverage critical success factors, positioning your company as a leading digital solution provider and a catalyst for customer success. Embrace this strategic shift and propel your business into the future. Contact Strategy& today.
An integrated B2B operating model is required to drive collaboration among departments and subsidiaries.
Blueprint options
Key considerations
Multiple options exist for the institutional setup and sales team integration across B2B entities. The model's blueprint should be based on strategic focus and go-to-market (GTM) strategy.
Go-to-market strategy
Governance
One sales team
Distinct sales teams with coordinated GTM strategy
Distinct sales teams with independent GTM strategies
Separate telco B2B and IT/digital entities
Project-focused model
Coordinated model
Fully independent model
Separate telco B2B and IT/digital entities under the same head
Simple customer model
Hybrid model
One telco B2B and IT/digital entity
Product-focused model
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Key dimensions need to be considered when defining the operating model and identifying the optimal blueprint for the organization.
Portfolio boundaries
Ensure distinct and scalable market positioning for each IT/digital subsidiary and enable them to drive their own product-level performance, while avoiding duplication in capability building and inter-subsidiary competition.
Business development
Centralize business development capabilities and budget to drive new cross-portfolio solutions and maintain a single customer interface, while enabling subsidiaries to channel new concepts and contribute their own vertical expertise.
Customer relationship
Manage high-value and strategic customer accounts centrally to coordinate sales activities with subsidiaries, while allowing subsidiaries to directly approach other accounts and pursue new opportunities independently.
Bid management
Develop clear mechanisms to manage bids with scopes that cut across the portfolio boundaries, whereby the correct entity is selected to prime the bid and the joint bid is priced competitively.
Sales incentive plan
Cascade sales targets down to subsidiaries and align the sales incentive plan KPIs of account managers to drive collaboration and achievement of group-level targets.
Strategic and financial planning
Design a corporate calendar and feedback loops to consolidate top-down strategic directions and priorities with subsidiary level-objectives and financial plans.
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Optimized account segmentation and tiering
Optimized account segmentation and tiering
In the evolving B2B market, customer accounts varying in size, sector, potential, or other characteristics can be segmented by size or vertical.
Segment by size
Segment by vertical
Segmenting customers by size allows for efficient allocation of sales resources and the tailoring of offerings to meet specific needs based on customer scale.
Segments
Tier 1
Tier 2
Tier 3
SMEs and SOHOs
Large enterprises
Government and key enterprises
Mega accounts
Strategically important account
Current revenue size and/or revenue potential
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Segmenting customers by vertical enables a deeper understanding of their business needs and requirements, thereby facilitating complex IT and digital discussions.
Segments
Tier 1
Tier 2
Tier 3
Oil and gas
Banking and finance
Transport and logistics
Strategically important account
Current revenue size and/or revenue potential
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Tailored channels by segment
Tailored channels by segment
Customized sales techniques and methods of communication should be tailored to each different segment and customer tier.
Sales
After sales
Key accounts and large enterprises
(Virtually) managed SMEs and SOHOs
Unmanaged SMEs and SOHOs
Dedicated account manager
(Virtual) account managers
Value-added partners
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Key accounts and large enterprises
(Virtually) managed SMEs and SOHOs
Unmanaged SMEs and SOHOs
Contact center
Digital self-service
Service account managers (SAMs)
Retail
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Attractive incentive schemes
Attractive incentive schemes
Designing an optimal incentive scheme to reach sales targets is vital in today's complex IT and digital market, with eligibility, KPIs, and payout models as key components.
Eligibility
KPIs
Payout models
Cross-entity alignment
Telcos should align incentive schemes across different business units and entities, ensuring consistent eligibility throughout the organization.
Beyond sales
Given the complex commercial value chain in B2B IT and digital, telcos should expand incentive schemes beyond traditional sales roles to include key supporting functions (e.g., business development, pre-sales, product management, and customer success management).
Inclusion of VAPs
As value-added partners (VAPs) become more integrated into the business structure, companies can consider making them eligible for incentive schemes.
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Incentive schemes are typically tiered into primary and secondary KPIs to drive the right sales behavior.
Primary
Incentive payouts are predominantly calculated based on performance against primary KPIs that include:
Hunting
Growth and market penetration focus, including:
New monthly recurring revenue
New purchase orders/product bookings
Upsell ratio/percentage
Hybrid
Farming
Customer retention and satisfaction focus, including:
Maintained monthly recurring revenues
Total revenues
Total billing
Secondary
Payout from primary KPIs is based on performance against secondary KPIs, with potential focus on:
Sales profitability (e.g., purchase order gross margin, average portfolio net profit)
Sales of strategic or new products (e.g., business line accelerator, new product accelerator)
Sales balancing between portfolios (e.g., subsidiary portfolio mix index)
Customer satisfaction (e.g., net promoter score, customer churn rate)
Keep it simple! Account managers should be able to calculate their performance on the metaphorical “back of the envelope.”
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On-target earnings
In on-target-earning (OTE) models, incentive payouts are calculated by mapping KPI achievements on a payout curve (e.g., linear, staircase). Although OTE model ensure fairness among account managers, they are complex to design, and the payout multiples cannot be lowered for smaller accounts with lower targets.
Linear payout curve
Provides a consistent and gradual increase in rewards
Incentivizes employees to overachieve on targets with slope accelerations
Staircase payout curve
Allows for clear differentiation between various performance levels
Motivates employees to unlock “the next level” of reward
Commission-based
In commission-based models, incentive payouts are calculated as a predetermined percentage of the value of closed sales. Commission schemes are simple to design and implement across different account sizes, with high ability to forecast gross margins.
However, the distribution of accounts among account managers impacts their incentive payout potential.
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Enhanced and agile portfolio structure
Enhanced and agile portfolio structure
A B2B company's optimal portfolio will align with strategic benefits, utilize agile methodologies, and be tailored to targeted segments.
Portfolio archetypes
Agile product development
Value proposition definition
Technology-focused
The portfolio is categorized by the base technology used to enable economies through common network costs.
Product category-focused
The portfolio is categorized by the type of offering to allow better coordination and standardized product development.
Vertical/segment-focused
The portfolio is categorized by the customer segments it caters to, to enable development of products closer to customer needs.
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Agile product development and management relies on high flexibility and continuous iteration of development and testing. Quality is improved by reducing time-to-market and quickly releasing viable features, leading to more rapid realization of value.
Ideation and conceptualization
Filter out non-feasible products/features early on by ranking service concepts based on benefits, time criticality, and effort.
Technical design and development
Develop the technical design pulling from user stories and conduct business acceptance testing. Ensure optimal use of technical resources.
Business design
Translate ranked ideas into standardized user stories coupled with acceptance criteria. Minimize misinterpretation of specifications by forming joint teams that include both the business owners and the technology product managers.
Go-to-market
Test market uptake in a relatively short time—starting with a minimum viable product (MVP). Invest in scaling products/features depending on their success.
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Each product category should address the needs of clearly defined segments through targeted ways to play, thereby prioritizing and capturing large and recurring revenues.
Where to play
Where should the product category play?
Target segments
By size
SMEs/SOHOs
Large enterprises
Government and key enterprises
Mega accounts
By vertical
Oil and gas
Banking and finance
Transport and logistics
Others
Segment needs
Specify the unique requirements of target segments seeking IT and digital solutions.
Way to play
How should the product category differentiate itself from competition?
Product
Define a strong product value proposition and identify potential value-add services to generate attractive product bundles.
Price
Develop a scalable business model and a data-driven strategic pricing approach to solidify position in a dynamic market.
Experience
Capitalize on differentiating levers such as acquisition, servicing, or value management to achieve the optimal customer experience.
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Consultative business development
Consultative business development
Consultative business development is an approach that offers a chance to create lasting relationships with customers by working closely with them to identify their needs and challenges.
Customer engagement cycle
Best practices
When adopting a consultative business development approach, the telco B2B should engage the customer across the entire concept development life cycle.
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Maximizing the merits of this approach requires five key considerations:
Deep vertical knowledge and market insight
Invest time in learning about the customer's industry, and more importantly, seek an in-depth understanding of the customer's strategies, growth requirements, needs, and pain points.
Partnership with clients
Aim to become a core enabler for the customer's business, participate in crafting its agenda, and explore business models that foster a strong and long-lasting partnership.
Co-creation and piloting
Collaborate closely with the customer to develop prototypes and proofs of concept that allow the customer to see the potential value of a full-scale solution.
Thought leadership and education
Position your company as a thought leader by providing educational content and workshops, building trust and showcasing expertise.
Agile and adaptive execution
Maintain flexibility in solution development and be prepared to pivot based on feedback and evolving customer needs.
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Innovative business models and partnerships
Innovative business models and partnerships
Accelerating customer engagements in today's complex B2B IT and digital landscape requires telcos to be far more creative and flexible in the business models they propose.
New business models
Public-private partnerships
Traditionally, B2B telcos relied on the supplier model to deliver
project-based solutions, but recent engagements require players to be far more creative and
flexible in the business models they propose.
Supplier relationship
Partnership
Traditional model
Supplier model: cost+
Build the project and receive compensation based on
agreed-upon scope. Potentially, also charge for operations.
Newer model
Solution provider: build, own, operate
Finance, build, and operate the solution while client
and/or end-users pay a subscription fee to use the service.
Build, operate, then transfer
Follow a model similar to that of solution provider but transfer
the assets to the client after an agree-on period.
Revenue share
Co-invest through cash or in-kind alongside client, and
share revenues generated from services. The co-investment is often
structured as a JV or SPV.
Partnership
Success factors
Propose flexible business models
Be proactive in proposing different business models to
showcase flexibility and ignite the client's interest.
Adapt models based on client needs
Propose basic business models first and carve out different
configurations and variations based on client discussions.
Optimize investments with risk awareness
Be conscious of investment risks and invest optimally
considering the client profile, project risks, solution nature, and strategic
goals of the Information and communication technology (ICT) player.
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Within the B2B segment, public-private partnerships (PPPs) enable B2B
telcos to enhance their value proposition and capture new growth opportunities. Successful
PPPs require executing activities in five areas:
Project preparation and structuring
PPP project structure and design
Business case
Due diligence
PPP scope and risk allocation
Preliminary engagement of funding stakeholders
Execution/delivery
Project planning, solution design
Operating model design
Permit/license issuance
Project operations
Opportunity scouting
PPP strategy/priorities
PPP opportunity identification
PPP opportunity assessment and selection
Preliminary engagement with government entities and
expression of interest
Tender management
Consortium building (including negotiations)
Proposal preparation and submission
Financing/loan agreements
Contract review and signature
PPP contract management
Performance management
Contract compliance/audit management
Cash-flow management and debt refinancing
Asset disposition/exit
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Seamless digital channels and CEX
Seamless digital channels and CEX
Seamless digital channels streamline B2B journeys and enhance experiences by managing touch points and boosting the customer experience index.
Digital channel priorities
CEX management
CEX index
Digital channels can streamline customer interactions across all digital engagements and touch points. Here are seven key considerations for optimizing digital channels—from strategy and operating model to functionalities and UI/UX.
Channel strategy
Design a digital channel strategy to revamp key customer touch points and push forward adoption and awareness, leveraging customer insights and analytics.
Channels ownership
Identify an ownership model for digital channels within the broader context of the B2B telco organizational structure—whether under a dedicated function, with joint ownership, or as a cross-functional unit.
Interaction model
Outline the interaction model between the digital channel owner(s) and relevant stakeholders (e.g., sales, marketing, operations, and product management) to enhance the digital channels life cycle.
Product availability
Define clear criteria for product availability in the digital marketplace based on product type (e.g., connectivity products vs. complex IT and digital products) and customer needs.
Channel functionality
Roll out advanced digital channel functionalities (e.g., usage tracking, service contract terms review, billing review, order tracking, and incident management) to ensure a seamless experience.
Target customer segments
Define a tailored digital experience for segments that rely heavily on a “digital-first” approach (e.g., SMEs and SOHOs).
Channel UI/UX
Develop the digital channel UI/UX based on typical customer journeys associated with target segments (e.g., automated bots for SMEs vs. easier access to account managers for large enterprises).
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Customer experience management in the B2B telco context includes assessment and improvement of the quality of B2B customer journeys.
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In addition to net promoter score—a measure of emotive customer experience - B2B telcos need to assess quantitative aspects of customer service across key customer journey touch points.
Lead to cash CSAT
Engagement index
Lead response time
Conversion rate
Percentage of bids submitted on time
Order success rate
Usage index
Service uptime
Churn rate
Billing inaccuracy %
Ticket resolution CSAT
Ticket resolution index
First interaction resolution
Percentage of tickets resolved within SLA
Repeat tickets ratio
Digital CSAT
Digital index
Load time
Registration success rate
Login success rate
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AI-powered strategies for B2B growth
AI-powered strategies for B2B growth
AI-powered use cases drive B2B growth by unlocking new revenue streams, enhancing customer engagement, optimizing operations, and reducing costs.
Use case categories
Internal AI use cases
External AI offerings
AI use cases can increase telco B2B operating profits by driving internal
efficiencies and reinventing external business models.
Transforming back-office operations
Optimize and automate infrastructure management and internal shared
service functions.
Transforming customer-facing operations
Drive efficiencies in delivery to clients through embedded AI
solutions.
Internal
Efficiency and productivity
External
Business model reinvention
Delivering AI services for clients
Embed AI in operations for clients and offer transformation
services.
Commercializing AI products
Build and take AI products to market.
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Internal use of AI can streamline telco B2B operations, increase
productivity, and enhance sales performance and customer retention.
Top internal use cases
B2B demand planning and forecasting
Proposals generation
Assisted B2B product design
B2B products smart pricing
Content generation
Enterprise chatbots
Tailored product recommendations
Customer support automation
AI-enabled sales agents
AI-driven churn prediction
Value realization approach
Identify and prioritize
Identify key challenges in operational, technical,
and customer service domains that can be tackled by AI.
Prioritize use cases (based on impact and
feasibility) and outline clear metrics to measure the success of AI
initiatives.
Pilot and experiment
Use iterative, agile methodologies to develop,
test, and refine
the prioritized AI use cases, focusing on quick prototyping and
feedback loops.
Ensure collaboration through cross-functional
technology and commercial teams.
Scale and optimize
Scale up AI initiatives across the organization
once pilot projects show value.
Deploy the AI platform into production, integrating
with live systems, creating dedicated units, and establishing AI
governance.
Sustain and evolve
Continuously evolve AI use cases to improve their
performance, reflect new business conditions, and adopt new
technologies.
Promote AI adoption across all levels of the
organization.
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When taking AI offerings to market, key considerations should guide the
telco B2B to ensure commercial success and value realization.
Ideation and conceptualization
Focus on a few customer verticals early on and
gradually expand to adjacencies.
Invest in sophisticated vertical-specific use cases
that are less prone to competition.
Go-to-market
Hedge commercial risk by incubating offerings
internally before launching in the market.
Launch offerings with a selected set of existing
customers.
Augment value proposition and delivery capabilities
through partnerships.
Business and technical design
Leverage proprietary data as a strategic asset to power
AI products and solutions.
Internalize critical tech skills via a multifaceted
talent strategy.
Accept short-term losses to unlock long-term growth.
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Estimate based on Strategy& analysis using inputs including multiple proprietary IDC and Gartner reports. This estimate should not be relied upon for any business decision.
SMEs : Small and Medium Enterprises
SOHOs : Small Office/Home Offices
Mega accounts require a customized and dedicated engagement model to support their large-scale and specific needs. An integrated approach should be taken across the project life cycle—from initial concept to execution and service management.
Large enterprises and key government accounts benefit from strategic collaborations. Approaches such as B2B2X models—particularly relevant in real estate and healthcare verticals—enable access to the clientele of these accounts, while fostering an ecosystem that supports mutual growth and value creation.
A streamlined, digital-first experience is essential when targeting SMEs and SOHOs, as they often require control and efficiency (e.g., a drag-and-drop feature for product bundling).
Dedicated account managers maintain industry-specific knowledge to push forward tailored verticalized approaches and solutions.
(Virtual) account managers provide a point of contact for a more personal approach; virtual channels enable account managers to oversee up to 100 accounts.
Value-added partners—such as IT distributors, resellers, and managed service providers—are key to broadening market reach and serving various segments with industry-specific solutions.
Mega accounts require a customized and dedicated engagement model to support their large-scale and specific needs. An integrated approach should be taken across the project life cycle—from initial concept to execution and service management.
Large enterprises and key government accounts benefit from strategic collaborations. Approaches such as B2B2X models—particularly relevant in real estate and healthcare verticals—enable access to the clientele of these accounts, while fostering an ecosystem that supports mutual growth and value creation.
A streamlined digital-first experience is essential when targeting SMEs and SOHOs, as they often require control and efficiency (e.g., a drag-and-drop feature for product bundling).
Customer engagement lifecycle
Invest in understanding the client's specific needs and shaping its technology agenda.
Analyze the client's pain points, areas of inefficiency, and areas for potential improvement.
Educate and advise the client on the technology options they can consider to generate value for their business.
Potentially, draft a client-specific strategy and design customer journeys.
Offering realization
Facilitate conversion of PoC and PoV to commercial opportunities; explore productization opportunities.
Ideation
Ideate and prioritize concepts based on an understanding of both the market and needs of existing/new clients.
Concept development
Co-create and customize solutions closely with clients, addressing their particular pain points and aspirations.
Capability build-up
Engage partners and onboard those who add the greatest value to the solution being developed for the client.
Pitching to the customer
Focus the pitch on how the proposed concept will address specific client needs.
Agreement officialization
Sign binding or non-binding agreements (e.g., MOUs) to formalize collaboration.
PoC and PoV development
Co-create a PoC and PoV with client to prove the viability of the concept and refine it.
Covers the interactions of product managers during the product development cycle, which includes identifying needs, developing solutions, tailoring marketing strategies, and managing product life cycles
Covers the interactions telco teams (sales, operations, and support) have with B2B customers while generating leads, nurturing prospects, converting leads into customers, bidding for projects, delivering services, and managing invoicing and payments
Covers the interactions telco teams have with B2B customers while receiving complaints, following up on troubleshooting, fixing issues, informing clients of resolution, and collecting feedback
Predict demand and optimize resource allocation based on historical data and market trends.
Analyze RFP scopes and generate persuasive and tailored proposals based on customer
requirements.
Generate product specifications based on market trends and customer needs by segment.
Predict winning price for B2B bids based on customer segment, product mix, and competition.
Generate content for marketing collateral, product descriptions, social media posts, and
customer communications.
Provide intuitive search functions to retrieve information from internal documents (e.g.,
product documents, FAQs, contracts).
Suggest relevant products or services to B2B customers visiting online channels based on their
behavior and profile.
Set up virtual assistants and chatbots to handle customer inquiries and provide a first line of
support.
Support sales agents in lead qualification and personalized outreach based on customer insights
and previous interactions.
Predict customer churn by analyzing behavioral and usage data, enabling proactive and timely
retention interventions.
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