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Strategic Information System Into Telstra

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Question:

Discuss about the Strategic Information System Into Telstra.
 
 

Answer:

Introduction

Telstra is a leading telecommunication and technology company within Australia. The organization provides full range of communications and competing into telecommunications markets. The organization offers services and competes into the Australian telecommunication market. It provides services of mobile telecommunication content (Telstra.com.au 2017).

The report discussed on strategic analysis of Telstra with its business challenges and priorities consisting of Porter’s five force model to review impact of the IT into business operation of Telstra Corporation Limited.

Strategic Analysis

Business challenges of Telstra

Following are business challenges of the Telstra:

  1. There is raise of demand but the prices are falling.
  2. Telstra responds to the growing demand but there is an increase of range of services. Each of the services are operated with discrete niche, therefore none of the devices are interacting.
  3. Telstra is falling of revenue into its mobile businesses. The revenue of mobile is decreased by 8.7 percent in last six months (com.au 2017).
  4. There are security threats and challenges that the information is being hacked by the hackers.
  5. Telstra is not designing and manufacturing of its own products. It has purchased its mobile network from elsewhere.
Top five business priorities of Telstra

Following are business priorities of Telstra:

  1. Telstra targets everyone towards their mobile network based on age, location and income to enjoy the benefit of telecommunication technologies.
  2. They work into strategic approaches to identify and minimize the environmental impact of their products and operations (ABC News 2016).
  3. The organization strives to deliver of customers and growth into revenue.
  4. Continue into invest into long term growth
  5. Acceleration of productivity programs (Computerworld 2013).
Porter’s five force model to review impact of IT into Telstra

Intensity of existing rivalry: Telstra has few competitors, which is positive for the organization. The governmental policies as well as regulations are limiting the competition. Telstra has large industry size to gain a large market share. Due to fast growth of industry, it increases revenue that makes a positive affect into Telstra (Wheelen and Hunger 2017).

Bargaining power of suppliers: There is lower cost of switching suppliers due to less bargaining power. Low concentration of the suppliers means that the suppliers have low bargaining power. The critical creation inputs are comparable, and then it is easier to equal the efforts (Hill, Jones and Schilling 2014).

Threat of substitutes: There is low performance product means that the customers are fewer switches to other products. The products are low quality. When the products as well as services are varied, then the customers are less to find similar products services to meet their requirements (Peppard and Ward 2016).

Bargaining power of customers: The customers are paying further for single product which definitely affects the organization. There are huge numbers of consumers, and then no consumers are tending to negotiating leverage (Hill and Jones 2013). As the customers have limited choices, then it ends up paying more for available product.

Threat of new competitors: Telstra should improve their brand value to compete into the market. Higher sunk cost makes it critical for the competitors to enter into new market.   

 

Strategizing

Use of IT to support business of Telstra

Telstra uses of information and communication technology (ICT) solutions to deliver of positive telecommunication services to the customers. ICT solutions also help the organization to achieve sustainability into the business (ABC News 2016). With support from IT, the organization developed innovative products which help into global technology to connect with other people. It will help to gain profitability as well as market share.

IT strategic steps taken by CIO during three years
  1. The cloud division of Telstra joined with Cisco to launch of own cloud services to become first global partner into the business process (Wheelen and Hunger 2017).
  2. The organization invests into technology for improving cost efficiency as well as driving of growth.
  3. Design and implementation of innovation process of telecommunication network as well as products
IT strategic mistakes of CIO during past three years
  1. In the year 2016, due to sudden system shutdown, the customers of Australia are not able to make and receive calls for two hours after two many nodes are fault.
  2. Telstra failed to market as well as communicate the IT values to the customers and their telecommunication network users (Slack 2015).
  3. The technology project are time consuming and expensive. Therefore, Telstra has made larger investment into IT infrastructure and deployed into complex application.
Significant IT opportunities overlooked out by CIO throughout past three years

During the past three years, CIO had missed out the opportunities of digital transformation which will test leaderships across Telstra. Driving of new digital workplaces is harnessing the power of cloud as well as mobile. The new technology is available for both customers and employees. Use of advanced IT technology should empower Telstra to drive innovation as well as growth in their market share. It also helps to raise the profitability (Rothaermel 2015). The market segments of Telstra are mobile telecommunication services, broadband access, internet services and IT management into telecommunication network. The opportunities are strategic IT growth plan. There is an increasing demand of telecommunication services and growth of IT market. The organization also missed out the opportunities to launch of 4G mobile broadband network.       

Top strategic IT risks and challenges faced by Telstra

The risks and challenges faced by Telstra are rapid change in technology and increasing of competition of other IT organizations. Technology is changing and this changes lead to render of equipments, services as well as technical obsolete (Peteraf, Gamble and Thompson 2014). It will affect the competitiveness and needs the organization to raise capital expenditures to maintain of competitive positions (Slack 2015). In order to mitigate the risks and challenges related to technology, Telstra are required to analyze the changes previously before it affects the products as well as services leveraging of new technology.                

Identification of factors contribute to Red Ocean and Blue Ocean for IT into Telstra              

Factors to contribute of Red Ocean for IT into Telstra
  1. Telstra should develop trusted relationships with the customers so that they become more loyal as the organization provides high quality services.
  2. Create of revenue beyond advertising and marketing services with new offerings for customers (com.au 2017).
  3. Implement of content delivery model by lowering cost and emphasizing innovative value by creation of value curve
  4. Innovation of new products and pricing models to quicken the digital world
  5. Development of new applications in order to exploit of online content
Factors to create blue ocean strategy in Telstra
  1. Use of leadership skills to improve the entire organizational performance of Telstra, it boosts the team engagement and motivation of the workers in their job
  2. Decreasing of employee turnover, raising of customer loyalty and absenteeism leads to improve the profitability of the organization (Computerworld 2013).
  3. Implementation of new innovative strategies for driving of profitability and market growth (Slack 2015).
  4. Delivering of products and network services at lower cost
  5. Executing of higher level leadership activities at lower cost

Conclusion

It is concluded that Telstra is a telecommunication company that is offering of telecom services to the customers. This particular report analyzes the main area of operations of Telstra. Strategic analysis of the organization is discussed to find out the IT strategies used into the organization to increase their profitability as well as customer satisfaction.

 

References

ABC News 2016. Telstra faces a $3b black hole in lost earnings once NBN rollout is finished. [online] ABC News. Available at: https://www.abc.net.au/news/2016-05-20/telstra27s-243-billion-nbn-blackhole-puts-dividends-under-pre/7432910 [Accessed 2 Sep. 2017].

Computerworld 2013. Telstra to face challenges in broadening its business: analyst. [online] Computerworld. Available at: https://www.computerworld.com.au/article/523301/telstra_face_challenges_broadening_its_business_analyst/ [Accessed 2 Sep. 2017].

Ethiraj, S.K., Gambardella, A. and Helfat, C.E., 2017. Reviews of strategic management research. Strategic Management Journal, 38(1), pp.3-3.

Hill, C.W. and Jones, G.R., 2013. Strategic management theory. South-Western/Cengage Learning.

Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated approach. Cengage Learning.

Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a digital strategy. John Wiley & Sons.

Peteraf, M., Gamble, J. and Thompson Jr, A., 2014. Essentials of strategic management: The quest for competitive advantage. McGraw-Hill Education.

Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.

Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.

Telstra.com.au 2017. Telstra - Our company. [online] Telstra.com.au. Available at: https://www.telstra.com.au/aboutus/our-company [Accessed 2 Sep. 2017].

Wheelen, T.L. and Hunger, J.D., 2017. Strategic management and business policy. pearson.

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