An analyst has welcomed the announcement from BT it is to undergo a major restructuring to move with the times.
BT has created a new Group Strategy and Operations function to be lead by Andy Green, who is currently chief executive of Global services. This new strategic and operational unit will design, build, operate and maintain services for the customer facing divisions – Retail, Wholesale, Global Services, and Openreach. The new division will include the IT services division, Exact and the management of the network including its 21s century network (21CN) infrastructure upgrade.
Mike Cansfield, Telecoms practice leader at analyst Ovum said: “BTs performance has been consistently good – as it likes to remind people – with 19 consecutive quarters of growth. BT’s consistent strategy and stable structure have both contributed to this to a large degree. But we have been concerned for some time that this organisational stability needs to adapt to the new world in which BT operates.”
He welcomed the restructure and said BT had made a radical move: “Taking the network out of Wholesale is, in our view, probably overdue. This is not a criticism of Wholesale, but recognition that in the 21CN era there is a need to focus on fully leveraging the opportunities these create.”
He said the new structure will bring greater clarity to Wholesale's role going forward, while probably strengthening the representation of the channels to market within BT. “Putting someone in charge of transformation is hugely significant as it illustrates that BT understands this imperative,” he added.
Cansfield had only one real concern: “The new division will be a very big battalion, with a very challenging remit. The transformation necessary will not be easy and will cause tensions. We will watch this with interest.”