KT Corporation is a telecommunication organization
KT Corporation is a telecommunication organization facing steep competition from other players in the same industry. It was established in 1981 and named Korea Telecommunication and, at the time, was the largest commination operator. By 2014, other organizations in the same industry had advanced their services and infrastructure, and Hwang Chang-Gyu, the CEO, shifted its focus from sales and began focusing on the customer value proposition. KT became committed to providing a unique kind of experience to its customers. However, for value proposition to be successful, the whole organization must be aware of it, understand it, and be on the same side in delivering it. However, the shift of KT to a customer-centric organization, which would have positive customer experience, various internal conflicts arose. This paper focuses on identifying the organization’s internal conflicts and discussing solutions to it.
In 2014, the government introduced the Mobile Device Distribution Act, which made benefits and communication charges across all telecom providers in Korea identical. The gap between the telecommunication companies in terms of technical quality and telecom products significantly reduced, and price differentiation became meaningless. After deciding to focus on improving customer experience as a means of distinguishing it from its competitors, LG U+ and SK Telecom, the first problem that led to an internal conflict was deciding how the company would get into direct contact with its customers. The company needed to know how it would profitably deliver value. The main aim of providing profitable value is ensuring targeted customers to get superior benefits at a cost that allows acceptable returns. The company can solve the problem by coming up with a hotline number where the customer can call the representatives and give their feedback and suggestion of the organization’s services. It is a method that is cheap and easily accessible by all its customers.
KT decided to deal with the problem of getting into direct contact with its customers through distribution networks and sales resources. It had many sales agents distributed throughout the country, which it would use to ask the customers directly about its quality of services and get suggestions on how to improve them. It is because networks and any other kind of interaction between the organizations and customers are essential for the creation of value. Another internal conflict that arose after KT deciding to use its distribution networks for direct customer interaction was the problem of understanding the viewpoint of the customers. The company could solve the problem by creating an online portal where the customers could directly leave their comments and suggestion. It is because customers are the creators of value. After all, services are created to fulfill their needs. KT decided to hire new employees, which it called rainbow chasers. It is because they did not have any form of experience with the company. It was also a good strategy because the new employees came directly from the market and were better at giving customers insight compared to old employees.
One last challenge that would lead to an internal conflict was agreeing on how to find solutions to the findings and customize the organization’s services according to their needs. Co-creation is one of the most important core concepts in delivering customer value. In co-creation, the emphasis is on the organization and customer interaction. It is essential because the customer gets personalized services that are tailored to ensure their satisfaction. It is a challenge that can be resolved by creating various prototypes of new, improved services and trying it on a particular sample of people to find out if they like the new service better and then adjusting it accordingly.
The most effective way of adjusting the relationship between internal and external satisfaction is to create transparency in the organization. It is essential to provide customers with all the vital information about the nature of the company’s services. If KT is transparent with its customers regarding the costs and benefits they offer or any other hidden information, trust levels increase between the two parties. Dialogue is another vital core aspect of creating a healthy internal and external relationships. Through dialogue, the customers can openly share their areas of satisfaction with the company and give feedback on areas that need to be improved. Lastly, the relationship between the two parties can be adjusted by creating access to the company by creating an open-source where customers can share information on how to build the organization’s services and products.
The strategies implemented at KT can be sufficiently internalized because they are logical and easy to implement. The use of distribution networks is effective because most customers prefer seeking the company’s services from the various agents distributed throughout the country. The use of new employees can also be internalized because the new staff is always dedicated to improving the company.
In conclusion, KT Corporation is a telecommunication organization facing steep competition from other players in the same industry. Hwang Chang-Gyu, the CEO, shifted its focus from sales and began focusing on the customer value proposition. The strategies implemented at KT can be sufficiently internalized because they are logical and easy to implement
