Cover story
Publication Date: Dec 2022
Publication Date: December 2022
Accelerating the PACE of Digital Transformation
-- In December 2022, Mr. Mazen MROUE, CTIO of MTN Group, was interviewed by Huawei's WinWin magazine. He shared MTN's innovative practices in digital transformation and explained in detail how MTN's new strategic framework, PACE, is facilitating the company's Ambition 2025.
Transforming for Africa
MTN is the leading telecom operator on the African continent, with a core belief that "everybody deserves the benefits of a modern connected life".
Digital transformation is now at the center of all African telcos' strategy, and MTN is one of the pioneers. In 2021, with the aim of supporting Africa's ongoing development, as well as building the financial strength for our business, we launched our Ambition 2025 strategy to deliver "Leading digital solutions for Africa's progress". Our strategy is focused on positioning MTN as a growth company, we want to be transformed to be seen as a company of connectivity solutions and platforms with FinTech and digital being at the core, by introducing new and compelling digital services to drive economic growth across the African continent. While many best practices are emerging in most markets like South Africa, Ghana and Nigeria, we actually see innovation occurring across all segments. We at the Group level are determined to treat all our markets equally, and facilitate the rollout of such best practices across our footprint, irrespective of market size and value.
Putting the Technology in Place
The execution of MTN Ambition 2025 is embodied in four clear strategic priorities: building the largest and most valuable platforms, driving industry-leading connectivity operations, creating shared value, and accelerating portfolio transformation. We believe that the repositioning of our business will ensure sustained growth and greater relevance to 2025. In previous years, we managed to invest and build strong core operations underpinned by the largest fixed and mobile network in all our markets; reinforced by a large, connected, registered customer base; supported by a large registration and distribution network, and a strong brand remaining the most valuable in our markets.
Our new strategy is anchored in building the largest and most valuable platform business with a clear focus on Africa, resting on a scale connectivity and infrastructure business, making use of both mobile and fixed access networks across the Consumer, Enterprise and Wholesale segments. The five platforms are focused on FinTech, Ayoba as Super App, Enterprise, Network-As-A-Service and the API business monetization (Chenosis).
We have identified five vital enablers to assist in operationalising our strategy: Best Talent, Customer Experience, Capital Allocation, ESG at the Core, Technology Platform Second to None.
Speaking about Technology and its role in driving digital transformation, we believe in acceleration as new technologies such as Cloud, AI, Big Data, 5G, Open API adoption, Network Virtualization and Cloudification become pervasive. We are capitalizing on these technologies to transform to a PlatformCo by expanding our core services to the areas of ICT, Cloud and Cybersecurity, as well extending into new adjacencies like FiberCo, Data CenterCo and InfraCo and launching new frontiers within the Fintech, e-Commerce, and Metaverse. Underpinning this transformation is a paradigm shift to a culture that promotes rapid innovation, agility across the organization, focuses on revamping tech employee value proposition and leveraging platforms to create an ecosystem with partners.
As the MTN Group Technology team, we have recently refreshed our Technology strategic framework & operating model, having incorporated findings from deep dive analysis that we conducted and launched PACE framework - focusing on accelerating the execution of Ambition 2025. The four segments anchoring the PACE strategy are:
Platforms, Ecosystems & Services: enable revenue growth leveraging on Platform play and associated digital ecosystem
Agile operating model: agility in ways of working, governance and organizational culture
Connectivity & optimisation of infrastructure: ubiquitous best-in-class connectivity across hybrid networks and monetisation of infrastructure
Experience, Second to None: deliver superior user experience through connectivity, platforms and ecosystems play
The four segments of PACE are underpinned by 15 strategic pillars, for each of these pillars, we have prioritised associated executable programs to deliver on our ambition to transform into a PlatformCo.
In transforming to become a PlatformCo, MTN not only wants to become fully customer-centric, but also digitally focused for the benefit of our own workforce. In order to facilitate and encourage new ways of working, MTN is investing further in Cloud, Cybersecurity and Software Development. We are setting up a software engineering center of excellence and insourcing some of the capabilities that used to be outsourced. The insourcing of software engineering capabilities is being taken as an opportunity to the drive "Women in Tech" program, targeting the female workforce to drive strong diversity across our structure aiming at positively driving gender balance within MTN.
Experience, Second to None
During the launch of the PACE technology strategy, we emphasized "differentiated digital experience" and committed to making our customer experience "Second to None".
A key aim is to allow customers to take the full control of the services they get from us. In an optimized customer-centric environment, customers should be able to use all the services available without physically going to MTN's shops or calling the customer service center. This leads to further investment in self-service platforms including the myMTN app, chatbots and interactive portals.
We are also busy making our networks more customer-centric leveraging the big data capacity we have in our networks. We understand that customer experience is not just focused on network coverage, it's about understanding the end-to-end customer journey and delivering the best network and service experience to our customers.
Leveraging our network capabilities is of course key to delivering great customer experience, and we are investing widely in initiatives to address our customers' needs and improve their overall experience. Whether its network efficiency for service delivery, planning network operations or accessing big data for campaign management, we have found that a unified platform supports the versatile toolset required to drive the next generation of service delivery.
A key factor behind our leading customer experience rating is our applications of AI and automation to drive new efficiencies and enhance customers high volume journeys. We recognize that without automation it will be impossible for us to achieve the "Experience Second to None" target. For this reason, automation is not being limited to our most advanced markets, but leveraged across all markets according to their local requirements. The target is to move all systems toward zero touch, AI powered operations, as singular more flexible networks are required to meet all of our PACE goals.
Choosing the right partners
We understand that we cannot do everything ourselves; we have to partner not only with suppliers, but also increase collaboration with local stakeholders to address national gaps. Indeed, collaboration with partners has to be constant in order to expand the technology capabilities and accommodate growing demand. As an example, collaboration with regulators, notably about spectrum requirements, has proved very effective. We have found that regulators are more supportive when they see steady investment in their market.
For our strategic partners, in areas such a network infrastructure and Cloud platforms, we hold them to extremely high standards. They must be able to do more than deliver competitive solutions, they must be able to understand our evolving requirements, and adapt their solutions accordingly. Joint innovation is an ideal way to accomplish this goal as it allows our respective engineering teams to work together to solve specific challenges. In addition, strategic partners must be able to work with us through the digital transformation processes as we automate more business processes with the goal of improving the overall customer journey. This level of partner engagement is necessary for us to create differentiation in a competitive market, and to provide state-of-the-art digital services to customers in all of our markets.
Looking Ahead
Challenges to successfully implementing digital transformation persist. Internally, the main obstacles we have seen are alignment of stakeholders within the business, ensuring synergy, standardization and efficiency of our efforts. External challenges are driven by the need to continuously improve the value we deliver to our customers, including improving service agility, interface, user experience, and customer education.
Nevertheless, we see from our operational data and financial results that we are making good progress across our markets. Our unified Platform approach is not only helping MTN to improve service experience for all our customers, but is also ensuring greater operational efficiency and effectiveness. Guided by our PACE strategy, we are confident that we will continue to deliver business growth and, more importantly, drive the digital acceleration and development of Africa as a whole.