At the TM Forum Digital Transformation World 2018 in Nice, Des Blanchfield had the pleasure of speaking with Carlos Palito, the head of digital transformation at Intel. In this insightful conversation, Carlos shares the journey of digital transformation at Intel and the key role that Ericsson has played in this process.
About Carlos Palito
Carlos Palito is the head of digital transformation at Intel, a Telco operator with over 50 years of experience in the industry. Based in Chile and operating in Peru, Intel serves both B2C and B2B markets, with a focus on maintaining leadership in Chile and expanding its presence in Peru.
The Journey of Digital Transformation
In 2014, Intel recognized the need for a significant transformation to address the changing landscape of the telecommunications industry. With the rise of millennial consumers who demanded real-time, seamless, and simple interactions, Intel knew it had to adapt to remain competitive.
- The Challenge of Millennial Consumers
- By 2020, 50% of the world’s population will be millennials.
- In Chile, it is expected that by 2025, 75% of the population will be millennials.
Partnering with Ericsson
Recognizing the need for a strong partner in this transformation journey, Intel chose Ericsson to embark on this digital transformation. The partnership with Ericsson was crucial for several reasons:
- Designing New Offerings
- Creating new products and services to meet the needs of millennial consumers.
- Lean Organization
- Implementing a lean and agile organizational structure to address the complexities of modern consumer demands.
- IT Landscape
- Developing an IT infrastructure that supports new processes and products, delivering a unique user experience.
Overcoming Internal Challenges
As Intel underwent this business-wide transformation, it faced internal challenges that required the expertise and support of a trusted partner like Ericsson. Some of the key challenges included:
- Legacy Systems
- Overcoming the limitations of a 50-year-old company with over 500 applications and 80 providers.
- Time-to-Market
- Reducing the time it took to launch new products from 3 to 6 months to meet the demands of millennial consumers.
Looking Ahead
With the B2C phase of the transformation already underway, Intel is focused on the future of the telecommunications industry. The company aims to:
- Avoid Commodity Status
- Intel does not want to be viewed as a commodity and is working to differentiate itself from OTTs and competitors.
- Customer Lock-In
- Creating a unique user experience to retain customers and avoid becoming “dumb pipes” in the industry.
The Beauty of Collaboration
One of the key takeaways from Carlos’s insights is the importance of collaboration and partnership in the digital transformation journey. By working closely with Ericsson, Intel has been able to leverage the strengths of both organizations to deliver the best products and services to its customers.
As the conversation concludes, it’s evident that Intel’s commitment to digital transformation and its partnership with Ericsson are shaping the future of the telecommunications industry.
In conclusion, the conversation with Carlos Palito sheds light on the complexities and challenges of digital transformation in the telecommunications industry. By partnering with Ericsson and embracing a forward-thinking approach, Intel is positioning itself for success in the rapidly evolving market.
