Telstra is Australia’s leading telecom business. This paper looks at understanding Telstra’s business challenges and priorities by analysing the Telstra’s website and using Porter’s Five Force model. It also looks at how Information Technology supports Telstra, what mistakes were made, what were the best information technology steps taken by the CIO, what important actions were taken or missed by the CIO, and what Telstra faces today in terms of IT.
One, demand is growing while prices are falling. Consumers expect more and more for less and less. Two, security will always remain a challenge as there are always new threats emerging. Three, the people challenge: employees who don’t follow the rules and regulations introduce additional risks to the company. Four, business and customer dissatisfaction continues to disrupt Telstra’s profits. …show more content…
This is the same for IT providers and their IT specialists.
Power of Suppliers: suppliers can place pressure on margins if they are powerful players.
Power of Customers: Companies depend on attracting and keeping customers and customers hold the power if they can switch easily or if they have access to IT that is cheaper or of better quality.
Availability of Substitutes: New technologies create substitutes. Companies like Telstra need to be flexible and move with the times (i.e.: augmented reality software).
Existing competitors: Increased competition can erase a company’s profit margins.
Information Technology should support Telstra by reducing costs, increasing sales, transforming operating practices and drive growth (McDonald and Rowsell 2012).
One of the best strategic steps in IT that (former) Telstra CIO Erez Yarkoni has made is to make Telstra the host of vCloud Air. This will enable Telstra’s customers to meet their business need, and to migrate workloads quickly and efficiently. This will also mean significant cost savings (Yarkoni
One, demand is growing while prices are falling. Consumers expect more and more for less and less. Two, security will always remain a challenge as there are always new threats emerging. Three, the people challenge: employees who don’t follow the rules and regulations introduce additional risks to the company. Four, business and customer dissatisfaction continues to disrupt Telstra’s profits. …show more content…
This is the same for IT providers and their IT specialists.
Power of Suppliers: suppliers can place pressure on margins if they are powerful players.
Power of Customers: Companies depend on attracting and keeping customers and customers hold the power if they can switch easily or if they have access to IT that is cheaper or of better quality.
Availability of Substitutes: New technologies create substitutes. Companies like Telstra need to be flexible and move with the times (i.e.: augmented reality software).
Existing competitors: Increased competition can erase a company’s profit margins.
Information Technology should support Telstra by reducing costs, increasing sales, transforming operating practices and drive growth (McDonald and Rowsell 2012).
One of the best strategic steps in IT that (former) Telstra CIO Erez Yarkoni has made is to make Telstra the host of vCloud Air. This will enable Telstra’s customers to meet their business need, and to migrate workloads quickly and efficiently. This will also mean significant cost savings (Yarkoni