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Transformation Reality Check
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The telecommunications industry is at an interesting crossroads, driven in part by the continued need for communications service providers to transform their operations in order to improve efficiency. At the same time, providers are facing a global economic slowdown that is forcing an intense review of many investment decisions. TM Forum Insights has just completed a research study based on interviews with leading telecom carrier and vendor executives, discussing expectations for revenue management and related spending over the next 12 months. The report entitled “Revenue Management and Related Technology Trends for 2009 and Beyond” concludes that 2009 looks to be a year where investment in revenue management and related projects with rapid ROI will take precedence. We can expect to see increased focus on the key areas of assurance, real-time customer management, dynamic policy based billing, customer interaction and system performance. Since most revenue management spending...
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With revenue growth in traditional services lagging, content management is at the heart of any service provider and media/entertainment company revenue growth strategy, and any telecom operator that is in the midst of a technology transformation should have a robust content delivery and management strategy as part of the underlying planning. Successful content delivery requires a multi-step ordering, delivery and revenue management strategy that integrates the carrier OSS/BSS with the content provider's and offers a quality of service and service assurance mechanism that minimizes delivery and customer care issues. While all the technology pieces must be in place in order to build a delivery strategy, business rules, standards and processes are equally important to assure the success of content delivery and its subsequent monetization. Shifting Business Models The impact of digital content is already having a profound effect on traditional delivery channels, creating both confusion...
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The digital locker concept emerged recently as an Internet based storage method that allows consumers to move content services from one location or device to another. Considering the number of times that I've either lost digital photos , electronic documents, or music due to a computer hard drive glitch, file corruption, or simply forgetting to transfer the information to a new computer or device, use of a digital locker would make sense. Like many new service offerings that become available to the consumer, these services only tend to be consumed if the new service provider is a trusted name with brand equity that is well recognized in the industry. Pricing for such services must be competitive with other similar offerings, and the end consumer must perceive a level of value for the price point. Apple and online music are without question the best example of product/service and brand pairing success. In the digital locker space, Microsoft was one of the first large brand names to embrace...
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Recent conversations with OSS/BSS vendors and several Tier 1 communications service providers after TM Forum's Telemanagement World Americas conference in Orlando provided me with some positive news, this amongst the ongoing deluge of sour global economic news that we get bombarded with on a daily basis. The overall picture is that the current economic climate for the communications industry, while challenging, isn't showing signs of implosion like we saw during the 2001-2002 Internet bubble burst. Much of the discussions around the state of the OSS/BSS industry leave me cautiously optimistic, at a time when many other industries are suffering. First, and most importantly, CSP back office transformation projects continue to progress steadily and the strategic nature of better back office efficiency is not something any of them can afford to put on hold. Most transformation projects within the Tier 1 operators are in the latter stages, and any investment stoppages would create long...
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Last week, my brand new car suffered a catastrophic transmission failure that required a flat bed to come and pick it up from the side of the road. It also left a mess on the road near my house that will remind me of the failure for many months to come. This car is no low-end econobox either; it’s an expensive new model from a manufacturer globally renowned for innovation, performance and build quality. As a consumer, seeing such a failure in a car with 600 miles on it makes me consider what my options are, no matter how extreme they may be. I either stick it out, wait for the fix and try again, or raise bloody hell at the dealer and get rid of it. Thankfully for the manufacturer, I am one of those consumers willing to test new products and accept minor issues when they arise. My sentiments however, may not echo those of consumer and enterprise customers regarding the launch of new services. Most tend to be extremely fickle when it comes to trying new services, and one or two early...
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Transformation is probably the best word I’ve heard in a long time to describe the CSPs’ ongoing pursuit for operational excellence. For over 10 years, the industry has been bombarded with ever present description of technology, market and industry related “convergence,” but let’s face the facts. Convergence is defined by the MS Word 2007 dictionary as “a coming together from different directions, especially a uniting or merging of groups or tendencies that were originally opposed or very different.” Has the communications industry really been coming from together from different directions, or uniting different ideals? If you look back over the past five to 10 years, virtually every CSP started a substantial back office technology rationalization project to eliminate out-of-date systems, facilitate the launch of new services, and attempt to future-proof newer technology investments through the use of more flexible architectures. Most of the rationalization...
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For years there have been rumors that Convergys was looking to split its Information Management Group billing business from its Customer Management Group care, HR and call center businesses, and now it appears that those rumors may finally materialize The potential split of the two businesses has been an ongoing topic of conversation among carriers and Convergys’ competitors for several years now, driven in part by the different structures of the businesses: Convergys’ call center and HR businesses are a multi-vertical and globally oriented, whereas the IMG business has been predominantly communications industry focused. Over the years, Convergys has placed substantial effort and resources into creating a unified business structure that would allow for a more unified back office/front office technology and service offering, and developed/refined several solutions that were applicable across both business lines. Needless to say, there are different target audiences for the two...
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