IT transformations - Capgemini Consulting Nederland

More documents

Recommendations

Info

management INSIGHTS Innovating the Telco Business Model: Drivers and Emerging Trends 76 Strategy Bottlenecks: How TME Players can Shape and Win Control of their Industry Architecture 84 75
Innovating the Telco Business Model: Drivers and Emerging Trends By Oliver Schön, Philipp Zimmermann and Subrahmanyam KVJ Abstract: The operating environment for telcos is turning increasingly complex. Telecom operators who had grown on the back of traditional voice and data services are realizing that as consumption patterns are rapidly changing, value not only moves to other stages in the telco value chain but also into completely different markets. Subsequently, their old business models are coming under increasing pressure and appear to be crumbling. Some telcos have understood this rapidly evolving scenario and have taken steps to ensure that they are in tune with the changing times. How else can one explain the fact that a fiber operator convinces its customer to dig up the last mile connectivity, or that a telco enters into reselling energy and gas agreements, or that consumers in certain markets have opted for advertisements to be a core part of their mobile experience? These developments represent only a fraction of the innovation in business models that telcos can partake in. They, in turn, are being driven by a range of broader trends that are currently impacting business models the world over. Telcos should consider taking steps to incrementally change their business models, while striving to adopt radical approaches in select areas, and challenge traditionally accepted norms of where a telco fits into the larger ecosystem. “ The telco business environment is rapidly evolving, creating the need for innovating the businesss model ” Need to Innovate Business Models The business environment for companies is rapidly evolving. Telcos are facing the constant threat of over-the-top business models from Internet players and from device players within the TME industry that threaten to reduce their importance in the ecosystem. The coming of age of the digital consumer, a breakdown in current revenue streams, and emerging opportunities in new sectors are all playing a key role in ensuring that the business model of yesterday is becoming increasingly obsolete. Monetization Challenges with Traditional and New Services One challenge telcos face is the decline in their traditional fixed-line businesses and maturing mobile voice services. Mobile voice revenues of major European operators have declined, on average, by 7.5% every quarter in the period June 2009 - June 2010 1 . An even bigger challenge lies around the monetization of new services such as mobile broadband. It is estimated that while data generated by mobile broadband dongles account for over 66% of traffic volume, it only contributes 5% of revenues 2 . Yet, operators have to continue investing in network infrastructure to meet such surging demand. Analysts estimate that while operators’ annual spending on network equipment in the period to 2014 is likely to surge by 28%, overall end-user revenues are expected to shrink by 1% 3 . Such metrics indicate the failure of the business model to match pricing to usage. Evolving Consumption Patterns and Advent of Social Media The rise in popularity of the ‘mobile’ Internet as well as the increasing use of rich and social media is driving 1 Enders Analysis, Mobile Revenue Growth and Outlook Q2 2010, September 2010; Operators include Vodafone, Telefónica, France Telecom (UK, France), and Telecom Italia Mobile. 2 Enders Analysis, Mobile Data Economics: The Limit of Unlimited, September 2010. 3 Bloomberg, Apple Asked to Pay Up for Network Improvement as Operators Face Data Flood, December 2010. 76
Page 1:
volume 9: Spring/Summer.11 Capgemin
Page 5 and 6:
Editorial Welcome to the Spring/Sum
Page 7 and 8:
Digital Renewal: Addressing Transfo
Page 9 and 10:
Figure 2: Digital Renewal Approach
Page 11 and 12:
“ Several operators are exploring
Page 13 and 14:
Mobile network traffic in Western E
Page 15 and 16:
help them save costs, but will also
Page 17 and 18:
Cloud Computing: The Telco Opportun
Page 19 and 20:
Figure 3: Stakeholders in the Cloud
Page 21 and 22: Figure 6: Categorization of Cloud O
Page 23 and 24: Hosting on Demand Telcos are alread
Page 25 and 26: Figure 9: Telco Strategies in the S
Page 27 and 28: Figure 11: Summary of Cloud Strateg
Page 29 and 30: Beyond Communications: Identifying
Page 31 and 32: Figure 3: Indicative Activity Chain
Page 33 and 34: Figure 5: Needs Served by Smart Gri
Page 35 and 36: “ An increased focus on safety an
Page 37 and 38: Figure 8: Strategic Options for Tel
Page 39 and 40: Figure 10: Telco Evolution as Servi
Page 41 and 42: Long Term Evolution LTE Opportuniti
Page 43 and 44: Figure 3: Commercial LTE Deployment
Page 45 and 46: “ LTE offers the most efficient,
Page 47 and 48: Figure 6: Key Technical Challenges
Page 49 and 50: Figure 8: Accumulated CAPEX and OPE
Page 51 and 52: Ubiquisys (femtocell), and Openwave
Page 53 and 54: IT Renewal: A Business Transformati
Page 55 and 56: to launch Web-based self-service ch
Page 57 and 58: Figure 4: High Level of Functionali
Page 59 and 60: and acceptance by all the different
Page 61 and 62: “ IT transformations, at their co
Page 63 and 64: Navigating the Content Quagmire: Pr
Page 65 and 66: Figure 3: Synopsis of Options for C
Page 67 and 68: Figure 4: Overview of Digital Conte
Page 69 and 70: Paid content may be subscription or
Page 71: “ Content providers need to focus
Page 75 and 76: Figure 2: Actions taken by Telcos o
Page 77 and 78: Figure 3: Trends Impacting Business
Page 79 and 80: Figure 4: Mobile Service Revenue Gr
Page 81 and 82: Strategy Bottlenecks by Michael G.
Page 83 and 84: are not active in are “contestabl
Page 85 and 86: Figure 3: Evolving Bottlenecks in t
Page 87 and 88: “ Companies should strive to make
Page 89 and 90: lite BYTES Some vignettes and trend
Page 91: “ Successful IT transformation en
show all

IT transformations - Capgemini Consulting Nederland

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?