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How can Communication Service Providers take the lead in the Digital Services era?


TMForum_2016_SCS.jpgTransformation is a must. Hewlett Packard Enterprise (HPE) understands how the convergence of telecommunications services, multimedia content, and social networks—as well as the aggressive competition coming from disruptive players—are transforming communications industry business models. Communications service providers (CSPs) are now forced to re-evaluate their business strategies and ensure their business operations will evolve accordingly, becoming agile organizations by employing faster go-to market strategies, remaining competitive and keeping pace with technology evolution.


The domain is not unoccupied. Over-the-top (OTT) providers, cloud providers and media companies, among others, leverage the high growth and relatively low infrastructure costs of the DSP model to outpace telecom operators. However, the telecom industry has identified at least two business areas where connectivity is such a vital aspect of the solution that they can move their ownership of the network into a strong DSP position: Internet of Things (IoT) and next-generation mobility — in the form of 5G — both necessary to the consumer model of ubiquitous content access and to the company model of digital services for industry. When coupled with analytics and security, in which many telecom operators have the capital to invest, these areas become “smart” and secure, driven by autonomous intelligence that can increase their value. Finally, the telecom industry has also identified the means to lower infrastructure costs and speed time to market for new services. These characteristics are the target of software-defined networks based on network functions virtualization (NFV) and software-defined networking (SDN).

As communications and media providers pursue strategies to keep pace with changing market dynamics, they are forced to re-evaluate every aspect of their existing business operations. Inefficiencies in the operational environment can directly affect the customer experience and service creation agility.



In terms of efficiency, CSPs must evaluate and balance different operational models, from the outsourcing to off-shoring integration. They can leverage innovative managed services from vendors or shift from simple cost reduction to partnership models.



The pace of evolution has increased, driven by the new trends of NFV, IoT, and Big Data that are able to transform the entire value chain, speed up the go-to-market, and increase competitiveness with aggressive services.



The proliferation of IP-based networks, the growing penetration of broadband Internet services, and competition from OTT players are the main drivers of network and IT changes. This is in terms of augmented capacity, operations optimization, removed siloed organization, and functionality consolidation.



Customer experience is the ultimate and most important evaluation of service. It is impacted by measurable factors, such as availability, performance, usability, and security. Regardless, monitoring and managing quality of service (QoS) on a per-customer level can present a complex challenge for CSPs. To reduce churn and improve customer experience, CSPs must adopt a customer-centric service assurance approach, monitoring customer service quality rather than network performance.


Managing the Complexity

Initiatives, commonly referred to as transformations, are under way to address complexity elements. HPE’s experience and observations are that these “transformations” are mostly tactical, disparate initiatives that fail to look at the big picture. For example, an initiative to reduce costs by outsourcing processes and IT, with a short-term view of impact on the rest of the organization, negatively affects customer satisfaction, security, and quality of service.



Trusted advisor practice

We start with defining key strategic objectives that will trigger business transformation, which can include gaining new revenue, improving customer experience, or a greater operational efficiency. We help investigate and understand your strategic objectives and define the strategy that drives transformation toward the new operational model. We leverage a best practices methodology and comprehensive set of capabilities, to pursue a broad array of transformation initiatives, focusing on the three major dimensions of people, process, and technology. Special attention is given to evaluating and controlling the financial aspects of a transformation initiative, and how it’s executed, governed, and measured.



Meet HPE experts at TM Forum Live! event, 9-12 May 2016 at the HPE Booth: #326.


Max Baldelli and Jan Hirs will present selected HPE Solution Consulting Services offerings:


TS.jpgTransformation Consulting

Aligning Business and IT strategy, to develop a complete enterprise-architecture, strategy and roadmap for implementation

Hybrid.jpgOperations of hybrid service

Adopting OSS closed Loop concepts to enable Digital Telco agility


CEA.jpgCustomer experience assurance

Translating CEM into operational outcomes



NFV advisory and transformation design for digital services


AssuranceTV.jpgAssurance for TV

Adoption of analytics to accelerate the video experience


IoT.jpgInternet of things

Go to market strategy design and use case prioritization for IoT services



To learn more about HPE Solution Consulting Services visit:

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About the Author


I am working on business process consulting. My interests are in telecommunications space with a special focus on media market. I coordinate knowledge management activities and thought-leadership programs