In the digital world, CSPs face mounting pressure to enable and deliver new and more complex multifaceted business models. CSPs have to overhaul their IT to successfully manage the shift from traditional CSP to digital service provider (DSP) that is running and managing its own digital infrastructure.
Currently, we see two major CSP focus areas of digital IT investment: modernization of the front-end customer facing IT stack and initial investments in discrete network facing virtualized SDN and NFV management solutions.
I just published a research note on CSPs´s strategic digital IT investment initiatives and vendor offerings: Competitive Landscape: Digital Multichannel IT Solutions for CSPs, Worldwide, 2016
Here are some of the key findings:
Digital infrastructure modernization has become strategically important to CSPs` Head of Strategy.
Digital business requires holistic operational management and bridging traditional boundaries between the CIO, CTO and chief marketing officer (CMO). CSPs will overcome operational agility challenges in the creation, design and deployment of new digital services if they use digital infrastructures as collaborative operational environment.
CIOs, CMOs and lines of business leaders consider real-time, agile, digital IT solutions as strategic investments that enables effective product design and sales processes for digital business models over multiple channels and digital partner ecosystems.
CSPs are facing increasing challenge to more dynamically create and manage new consumer and enterprise product bundles and customer offerings across digital value ecosystem. Processes become increasingly convoluted when attempting to manage the digital life cycle end-to-end — from the conception of a product/service idea, through the design and rollout, to eventual retirement — across legacy environments as well as external partners.
CSPs opt for Telco-process oriented solutions that enable transformation of the entire quote-to-install processes, and simultaneously providing a holistic resource view for technical feasibility and commercial credibility.
Some CSPs, such as Verizon, Vodafone, Telefonica, TeliaSonera and VimpelCom have launched major IT modernization projects to support on-demand, real-time, and more complex, digital service bundles.
The objective is not just to enable digital content, but to become a true digital service provider with their own, agile digital infrastructure. Agile, digital IT capabilities such as catalog, order, quote and fulfillment will be indispensable to master the challenge of unlocking the potential for new digital service revenue streams and the extraction of business value from new SDN and NFV capabilities.
CSPs need to ensure that the customer-facing lead-to-quote–to-order stack, along with central catalog management and network-facing OSS environments, is flexible enough for dynamic creation of increasingly new, complex product bundles.
Various types of digital services, for instance, machine-to-machine (M2M), IoT, connected home, over-the-top (OTT), have different predetermined factors regarding pricing, composition and eligibility rules. Variables such as volume, speed and capacity have to be accounted for.
Front and back office alignment is also critical, as the uptake of self-service, product personalization, contextualization and new technical features, requires a customer-centric operational view of product availability and commercial eligibility information. Moreover, technical eligibility needs to be validated through adequate operational resource views, and delivered to the corresponding channels at the right price points.
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