Tele2, the leading Swedish integrated telecommunications services provider, has selected IFS Cloud to replace its three legacy ERP applications, including SAP. This is a net new win for IFS, though it is not the first business relationship between the two companies. In 2009, IFS selected Tele2 as its supplier of fixed and mobile telephony in Sweden.
Tele2 aims to improve its core operations with the IFS applications and open up opportunities for leveraging its 5G offering. The project is part of a digital transformation and simplification strategy that began in 2020. The project, projected to reduce costs by SEK 1 billion, aims to remove many of its legacy applications and deliver a single integrated technology stack.
IFS has industry-specific functionality that suits TELE2. It is already proven within several other Telcos, including BSkyB, Eltel Norway and Proximus in Belgium. Tele2 will roll out features to support finance, supply chain, sales and service management. IFS will connect the technology stack from retail operations to its supply chain, leveraging tight integrations with third-party logistic providers. It will also track finance metrics across projects and services. Not included in the rollout is HR. Tele2 seems to be sticking with SAP SuccessFactors.
Tele2 has also purchased IFS Success. This is a subscription that secures access to service components backed by the tools and best-practice methodologies available within IFS. IFS has monetised its Customer Success teams to work with customers proactively to ensure that the IFS Cloud software delivers value.
In addition to IFS Cloud, Tele2 has also purchased IFS Success. A set of services that help businesses to succeed in uncertain times by closely following defined outcome-based KPIs that secure the business transformation success.
Delivering the project
The project will be in two phases, replacing the legacy ERP solutions “step by step,” according to IFS. Tele2 will work with an IFS partner on the project. But IFS stated, “We will not publish any partner names at this stage”. It may be that Tele2 has not yet decided whom to work with.
Yogesh Malik, Executive Vice President of CTIO, Tele2, said, “On our journey to becoming the leading telco in the Nordic and Baltic regions, we understand that business systems are extremely vital for the new digital age. Focusing on continuous simplification, automation, and building a sustainable architecture we are looking forward to partnering with IFS for the implementation of their latest solution.”
Elni Kullmer, President, North & Central Europe, IFS, said, “Tele2 is aiming to build Sweden’s best 5G network while also executing on an IT transformation that will improve every step of the digital customer journey and experience. To do that, they will need to seamlessly scale their systems and differentiate their offering by branching out into new markets with 5G applications like drones, manufacturing, aerospace, and transport. IFS can help guide them on their way because we have deep industry knowledge in many of these industries, together with the capability they need in IFS Cloud to make fast and agile cross-industry connections.”
Enterprise Times: What does this mean
This is a significant win for IFS at a net new customer in one of its core industries. Core to its success is the abilities that IFS brings to the table. It has specific functionality for telecommunications companies. It can help them deliver Moments of Service with its rich service management capabilities.
With Tele2’s aim to become Sweden’s largest 5G Operator, IFS has specific functionality to assist with such rollouts that will not have been missed. 5G services represented a $46.6 Billion global market in 2021 and are predicted to reach $66.5 Billion by 2028. 5G and fibre networks fuel revenue growth. However, the technology is useless without a service wrapped around it. IFS is delivering its technology stack and service wrap. Enabling Tele2 to power its service element to drive revenue from its technology.