Light Reading – DT’s Epic Undershoot Reflects Transformation Woes

Using vendors as a punching bag has become standard practice for operators in recent years. Yet Deutsche Telekom’s managers must take some of the blame for the recent failure. There is no doubt they massively underestimated how difficult the all-IP and pan-net initiatives would be.

“The top-down project is seldom rooted in the realities of the operation,” says Nordström. “In the back end of the business there are legacy platforms and processes that are hard to change.” For any operator working on a change program, Nordström advocates assembling a so-called “dream team” of experts who understand the systems and how interlinked they are. “If you have only the top-down approach you will miss important details.” With its modest targets for sales growth, and facing threats on the commercial and regulatory fronts, Deutsche Telekom may not be able to afford another €1 billion shortfall.

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