Telefónica Restructures with Four Short Term Pillars to Strengthen Company's Digital Ecosystem
Telecommunications company Telefónica introduced changes to its commercial activities and set four short-term pillars.
Telefónica President César Alierta stated the four basic pillars are part of the company's strategy to become a leading telecommunications and industry benchmark based on efficiency and growth. The pillars are based incorporating Telefónica's digital offerings onto all of its commercial activities.
"We have witnessed a real explosion in data traffic over both fixed and mobile lines," said Alierta. "But the deployment of LTE, the massive adoption of connectivity on all kinds of devices, the new digital services and the growing use of video, have all made the growth seen in recent years pale into insignificance when compared with the volume of mobile data traffic we are going to see over the next 5 years, which is expected to multiply by 11 with respect to 2013."
The first pillar is to grow revenue by increasing its commercial offerings to new digital services.
The second pillar consists with the modernization of its networks and systems by enhancing the distribution of Telefónica's modern technologies, from fibre to LTE.
The penultimate pillar is to increase efficiency while cost cutting and simplification. With the third pillar, investments with Telefónica are going to be prioritized in order to generate added value.
Finally, Telefónica wants to strengthen its leadership in the digital ecosystem.
"To achieve this, Telefónica has implemented a new organizational structure, that was approved at [its Feb. 26] board meeting of the company, one that is completely focused on clients and incorporates this digital offering as the main focus for commercial policies," the telecommunications company stated.
"The structure gives greater visibility to local operations, bringing them closer to the corporate decision-making centre, simplifying the global structure and strengthening the transverse areas to improve flexibility and agility in decision makings," Telefónica added.
Telefónica, as a result of its changes, created the chief commercial digital officer position, which will be responsible for revenue growth. With the local CEOs for the company's Brazil, Germany, Spain, and United Kingdom divisions, the chief commercial digital officer will report to Telefónica's chief operating officer (COO). The Latin American unit of Telefónica, now serving separately from Brazil, will also provide reports to the COO.
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