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Leading telecom organisations are on track for digital transformations and, with it, the benefits that the best CPQ software can provide.
By: Brad Randall, Broadband Communities
The wrong configure, price and quote (CPQ) system can send a company off the rails. It’s a fact that VicTrack, an Australian company operating rail assets in Victoria, knew all too well.
Once upon a time, VicTrack (with a portfolio that includes dark fibre and managed telco services) was struggling with pricy manual quoting. Even worse, the organisation found themselves unable to take on multiple projects efficiently or cost effectively.
Said plainly, the company needed a CPQ system that could simplify processes.
VicTrack’s decision to act has yielded results.
Today, the company reports a monumental 30% improvement in design and run time processes and offers over 1,800 miles of network to its public transport servicing partners. It also was able to consolidate its products, from hundreds to dozens, and now conducts 30% of transactions via digital channels. Bruce Moore, the executive GM for telecommunications at VicTrack, said they chose wisely in their journey for the right CPQ system.
“This is more than a transaction, it’s a partnership. CSG has gone above and beyond.” Sean Casey, during a recent appearance on Beyond the Cable, spoke to why CPQ systems prove so crucial in the current climate.
“While (traditional CPQs) can manage those (leads and sales) pipelines well and manage longer term sales engagements, they fall apart in the telecom and cable world,” Casey said.
He also said traditional CPQs not built for the telecom industry can add immense costs to the operations of communications service providers.
Not just a trend
As Casey points out, digital transformations like the one undertaken by VicTrack aren’t just a trend, they’re a necessity.
In July, Orange Business became one of the clearest examples of a large company coming to this realisation. That’s when they announced that they’d be switching to a catalog-driven CPQ solution, aimed at simplifying the quote-to-cash process.
At the time, John Marcus, a senior principal analyst with GlobalData, said Orange Business’ announcement represents “a strategic shift toward a platform-driven, innovative approach that aligns well with enterprise customer expectations.”
“Our transformation is not just about technology: it’s about how we create radically better experiences for our customers,” said Hriday Ravindranath, the chief technology and information officer for Orange Business. “By partnering with industry leaders, we are building a next-generation, fully digital, and AI-native Orange Business.”
The solution Orange Business settled on, CSG Quote & Order, “enables faster, error-free product configuration and order fulfilment,” according to Orange Business.
CSG Quote & Order is tailored to telco-specific complexities, creating faster time to revenue and improved process speeds.
Some main factors to consider
When it comes to choosing the right CPQ, CSG lists several main factors of consideration:
- Centralised and rules-based cataloging
- Seamless integration capabilities
- Dynamic pricing
- Margin analysis
- Mobile compatibility
A 2024 whitepaper from Appledore Research highlights the point. The survey that led to the whitepaper’s findings talked to 50 senior executives across 23 countries about their CPQs, mostly at tier-1 and selected tier-2 CSPs.
According to Appledore, 85% of respondents confirmed that their existing CPQ systems meet fewer than three quarters of their requirements.
The survey also reported that 60% of those questioned said their current CPQ was meeting less than half of their organisation’s requirements.
The CPQ systems falling short, also known as legacy or incumbent systems, as described in the whitepaper, leave CSPs with a lack of automation, delayed response times, and qualification inaccuracies. A lack of clarity on margins in real-time and poor financial capabilities is also symptomatic of legacy CPQ systems, the whitepaper says.
Telecoms face a split in the tracks
The paper also ends with a dilemma, painting a picture of a telecom industry at a critical juncture.
“The enterprise segment represents a crucial growth frontier, with connectivity serving as the foundation for modern business services,” the whitepaper’s author, John Abraham, a principal analyst at Appledore, concludes. “However, capturing this opportunity requires CSPs to overcome significant challenges in offer complexity, competitive differentiation, and time-to-market. Specialised CPQ systems emerge as a vital enabler in this transformation, particularly for enterprise market success.”
Abraham further continues with his findings.
“While CPQ systems alone cannot address all transformation challenges, they provide a critical foundation for modernising sales operations and accelerating go-to-market capabilities,” Abraham writes. “CSPs that invest in these specialised platforms position themselves to capitalise on enterprise opportunities more effectively, with the agility and precision required in today’s competitive landscape.”