The annual Orange Business Insights event, held in Amsterdam on July 10-11, 2024, showcased the company’s ambitious transformation under the leadership of CEO Aliette Mousnier-Lompré. With a vision to transition from a traditional telecom company to a technology powerhouse, Orange Business is focusing on a horizontal organizational model to simplify and optimize operations, reflecting the need for a unified service model for its customers.
Transformative Investment and Digital Overhaul
Central to this transformation is an internal digital overhaul, with Orange Business investing €200 million ($218 million) over the next five years to develop state-of-the-art IT systems. This substantial investment aims to create cutting-edge technology infrastructure that supports the company’s evolution and enhances its service delivery capabilities.
Expanding Value-Added Services
Orange Business is not just aiming to be a tech company but is also focusing on providing network-adjacent value-added solutions. This strategy aims to set the company apart from aggressive competitors like Infosys, Tech Mahindra, and Tata Consulting Services by offering more customized and higher-margin services. The company’s strategic pivot includes leveraging its expertise in the French domestic market and extending this knowledge across Europe, the Middle East, North Africa, and beyond.
Advanced Integration and Customer Success
One of the key highlights of the event was the emphasis on advanced integration capabilities. By building an evolved platform, Orange Business is enhancing its service offerings for customers. A notable example is Heineken, which has transitioned from legacy MPLS network services to SD-WAN and is now moving towards a SASE implementation. This integration merges connectivity and cybersecurity services, providing comprehensive observability and monitoring across digital platforms.
Additionally, Orange Business is leveraging its core infrastructure services from its integration teams in India. This approach facilitates a seamless customer journey in a DevOps environment, ensuring tighter integrations and fully automated chain management.
Strategic Insights and Analyst Perspectives
Beatriz Valle, a GlobalData analyst, commended Orange Business for its long-term strategy focused on cultural and technological change. Valle noted that while the transformation is labor-intensive in the short term, it promises significant long-term benefits. The move from pure integration services to a more comprehensive platform is seen as a wise strategy to achieve higher margins.
Valle also highlighted the diverse customer base of Orange Business. While some customers are highly cost-conscious, others prioritize value-added services, particularly in heavily regulated industries in Europe and sectors like cybersecurity and managed security services globally. The company’s focus on sustainability further strengthens its market position.
Streamlined Product Portfolio for Greater Efficiency
In a move to enhance agility, Orange Business began rationalizing its product portfolio in February 2023. By halving the size of its product lines, the company aims to maximize efficiencies and eliminate duplications resulting from past acquisitions. This streamlining process is conducted through 12-month cycles, ensuring the phasing out of outdated products and gradually tapering off sales to customers.
This initiative not only improves profitability and simplicity but also aligns domestic and international market operations. The streamlined portfolio enables more focused and efficient sales teams, incentivizing the completion of this process.
Building a Global Footprint
Orange Business is also expanding its global footprint by building strong teams in India, Morocco, Egypt, France, and Mauritius. This strategic expansion aims to support the co-development of the company’s evolution platform roadmap, enabling faster decision-making and fostering a culture where organizational success takes precedence over individual achievements.
Final Thoughts
Orange Business is undergoing a profound cultural transformation expected to complete within the next three to four years. The company’s focus on fast decision-making, organizational success, and viewing problems as opportunities underscores its commitment to growth and innovation. With its strategic investments and emphasis on value-added services, Orange Business is poised to lead the industry into a new era of technological advancement and customer-centric solutions.
