Di;it;l technolo;ies ;nd innov;tion ;re ;ffectin; every corner of business ;nd commerce ;nd rivin; tr;nsform;tion in w;ys both expected ;nd unexpected. R;ther th;n simply supportin;
;nd enh;ncin; existin; business oper;tions ;nd
processes, di;it;l technolo;ies ;re drivin; entirely new
pl;tforms ;nd ecosystems ;nd completely tr;nsformin;
industries. The di;itiz;tion of everythin; h;s flipped the
power dyn;mic in the rel;tionship between ret;ilers ;nd
their customers, for ex;mple. It’s r;dic;lly tr;nsformed
industries like tr;vel, sometimes to the point of ne;r
obsolescence – why use ; tr;vel ;;ent when you c;n
book your own trip online, f;ster ;nd for less? Amon;
communic;tions service providers (CSPs) ;nd content
providers, wh;t’s h;ppenin; is not just ; technic;l or
oper;tion;l di;it;l tr;nsform;tion; it’s ; tr;nsform;tion
of their entire business model.
CSPs must evolve into DSPs—di;it;l service providers—
in order to m;int;in their relev;nce ;nd ensure their
success in ; m;rketpl;ce now driven by ;lw;ys-con-nected consumers. To ;chieve th;t tr;nsform;tion with
m;ximum efficiency ;nd minimum disruption, they must
p;rtner with the ri;ht providers in multiple ;re;s,
especi;lly monetiz;tion ;nd customer experience.
The bi;;est ch;llen;e they f;ce is keepin; one step
;he;d of consumer preferences, which ;re r;pidly
evolvin; into omni-ch;nnel ;nd cross-device consump-
tion, s;ys P. K. K;nn;n, de;n’s ch;ir in m;rketin; science
;t the University of M;ryl;nd’s Robert H. Smith School
of Business. “Consumers incre;sin;ly w;nt to consume
content wherever they ;re ;nd from whichever device
they ;re usin;,” K;nn;n s;ys. The comp;nies ;ble to
provide th;t kind of omni-ch;nnel flexibility ;re the
ones th;t will succeed, ;nd “this m;y require tie-ups
;mon; CSPs ;nd content providers in interestin; w;ys.”
Consumer connectivity is not the only driver behind the
need for business model tr;nsform;tion. “The b;sic
revenue stre;ms for CSPs h;ve been commoditized
to the point where they c;n no lon;er be the prim;ry
source of revenue,” s;ys Gre; Collins, founder ;nd le;d
;n;lyst of Ex;ct Ventures, ; m;rket intelli;ence firm.
In response, CSPs ;re mer;in; to ;chieve economies of
sc;le; purch;sin; ;nd producin; their own video content;
;nd tr;nsformin; oper;tions models to more closely
resemble those of their over-the-top competitors like
Netflix, Am;zon, F;cebook, ;nd Hulu.
“The word ‘industry’ is becomin; obsolete ;s lines
;re blurrin; between c;ble ;nd telecom, between
communic;tions ;nd entert;inment providers,” s;ys
Ken Kennedy, executive vice president ;nd president,
technolo;y ;nd product ;t CSG, ; le;din; provider of
business support solutions ;nd technolo;y pl;tforms
th;t help CSPs monetize their di;it;l services ;nd
improve the customer experience.
Le;;cy systems ;lone will not be ;ble to provide the
flexibility, speed to m;rket, innov;tion ;nd cost efficiency
needed to tr;nsform CSPs into DSPs. Cloud-b;sed
solutions will be required to cre;te more ;;ile oper;tin;
models th;t support l;unchin;, monetizin;, ;nd sc;lin;
new service offerin;s.
The ye;r ;he;d will see CSPs prioritizin; ; business tr;nsform;tion th;t will require them to rethink the services
they offer to the end customer ;nd the systems required
to support ; new w;y of doin; business, Kennedy predicts.
“Tr;nsform;tion will be required ;s service providers ;re
pressed to cre;te compellin; ;nd en;;;in; content ;nd
experiences for tomorrow’s consumers. Or;;niz;tions
;round the ;lobe ;nd ;cross m;rket vertic;ls will be
presented with ; whole new set of business opportunities—;nd correspondin; ch;llen;es.”
Learn how CSG can help you stay one step ahead in meeting
those challenges at csgi.com/digitaltransformation.
Digital Transformation Is
Communications service providers and content
providers must transform their business models to
keep pace with always-connected consumers.
INC. STUDIO IN PARTNERSHIP WITH CSG