Digital service innovation : case of mobile telecoms in Africa

Abstract

This report examines the extent and nature of digital service innovation in Africa by analysing the case of the mobile network operator, MTN Group. Specifically, it tests if digital service innovation is required by MNOs in Africa, and if so, what the extent is of the constraints that these MNOs face. In addition, it interrogates the strategies for MNOs to increase service innovation and value co-creation with a deeper look at business model innovation and how it captures value from the trends in the digital ecosystem. An exploratory thematic analysis was conducted through semi-structured interview for 17 respondents within various departments of MTN Group. Interviews were conducted between September 2015 and October 2015. The results were analysed through an abductive approach similar to that of Dubois and Gadde (2002) in which literature is used to suggest introductory research questions. Thereafter, movement back and forth between the data and theory assisted with the interpretation of the findings and aided with the development and conclusion of the research questions (Freeman, Hutchings, & Chetty, 2012) The pervasiveness of digital transformation and automation in the global economy is improving customer experiences across sectors which is perpetuating customers to demand digital transformations from laggard firms, like MNO, MTN. The constraint of MTN to execute digital growth strategies in Africa was found to be a lack of SDL amongst MTN managers. From the literature, it was established that the service platform is a key element of the service innovation process, part of the broadened understanding and is a likely constraint to the growth in mobile money services in South Africa.