Digital adoption has taken a quantum leap at a personal, organizational, industry and governmental level. The most notable driving forces of this boom are irreversible changes in consumer behavior, specifically the shift to online channels, which have caused the telecommunications (Telcos) industry and enterprises of all sizes to rapidly accelerate their digital transformation plans. This acceleration signifies a broader shift towards a digital economy and society. Telcos need to act now to capture a share of the new value being created.
Accenture at TM Forum Digital Transformation World
CSPs understand the urgent need to transform themselves from Telcos to Techcos, moving beyond traditional connectivity in isolation to customers (both B2C and B2B2X) with platform-based products and services as part of an ecosystem.
Techcos can unlock at least $700 billion in new revenues, mostly in industrial 5G and B2B2X opportunities, by leveraging open standards and common interfaces.
RELATED: Finding new paths to grow in the disrupted communications landscape.
Tech transformation: A catalyst for change
CSPs need to move now to an open, modern, software-based architecture and need their IT architecture to be modular, reusable, cloud-native, AI-ready and made of standardized components. Without it, they will not be able to implement new concept-to-cash cycles or co-innovate with partners or operate at the cost point and with the flexibility demanded by the market.
Leveraging cloud can help modernize legacy technologies and the softwarization of IT and networks, plus encourage innovation and co-creation, and reskilling the workforce. CSPs can compete in the new software-enabled and platform-based ecosystem, using 5G and edge technologies to create new services for enterprise and vertical opportunities, such as where ultra-low latency is critical.
The time is now
In the joint report with TM Forum, ‘The Tech Driven Telco: Unlocking growth beyond connectivity through an open digital architecture’, C-level executives from some of the world’s largest Telcos recommend actions to ride the next wave of change.
Evolve the network and IT to exploit new cloud native technologies and revolutionize procurement, management and operations.
Deploy AI-driven, autonomous operations to make zero-touch operations a reality.
Change the operating model by reimagining the business as a set of capabilities.
Adopt a new mindset to embed the right business and technical DNA to succeed in a new operating environment.
Work collaboratively as part of the global industry to operate and compete at scale, with the right costs base.
Make zero-touch partnering a priority.
Invest in reskilling and upskilling the existing workforce.
Open Digital Architecture (ODA) as the blueprint for transformation
The next wave of transformation for Telcos will have software at its core. To grow revenues, Telcos need to build highly agile and scalable services on top of that connectivity, adopt new business models and partner with the right companies to ensure they have a solid role and extended reach in delivering digital services.
As a founding member of the ODA Component Accelerator project, Accenture recognizes the importance of collaboration, interoperability, and standardization in the industry and how it will impact growth for communications players. Adopting a common framework and blueprint can help the business meet its macro-objectives such as improving the customer experience, operating at lower cost points, reducing time to market and seeing better return on invested capital (ROIC) – which is where the ODA comes in. ODA is an open, modular, software-based, cloud-native and loosely coupled IT reference model, that allows CSPs operations to be driven by AI and data. It is made up of standard components that can be easily produced and deployed without customization. The standardization of components and the exposure of capabilities will limit vendor lock-in and boost scalability and innovation in the future.
The adoption of ODA enables a true 360-degree transformation of the core tech, go-to-market strategies and different business models. It also allows CSPs to become industry orchestrators, powering the next wave of innovation across industries and enable the creation of marketplaces for software.
RELATED: The value of ODA
The next wave of change
CSPs’ transformation journey will never end. They need to keep evolving and adapting to market dynamics. No one size will ever fit all, and there will be various localized market conditions that operators need to take into account. As they prepare for this next wave of change there is, however, a blueprint they can follow so they emerge stronger, more agile and innovative; making them more attractive to partners and enabling new business models that scale. This will drive revenue growth for CSPs and put them at the heart of digital lifestyles and societies: CSPs fundamentally changing their operating model is central to their success.