Thomas Campbell: How is the digital environment fundamentally evolving?
George Nazi: We are seeing a shift toward increased digital monetization. Digital is decreasing in cost and expanding the potential for new revenue streams, as the possibilities continue to proliferate. And this poses real opportunities for service providers—as well as real challenges they will need to address.
Digital monetization is a major opportunity for service providers. To begin with, it encompasses traditional telecom services, including mail, video, communication and internet. Beyond that, it offers expanding value streams in multiple facets of everyday life. The digital experience is already accessible through multiple devices — everything from TV to wearables to appliances to cars — and is increasingly expanding to the Internet of Things. When you look at the potential for interconnected wearable devices, coupled with IoT and robotic transportation and delivery mechanisms, the possibilities are even greater.
And what are the biggest opportunities this opens up to digital service providers and enterprises?
As the market transforms itself, OTT players have often taken the lead, while service providers have often been trailing. Many of them are working to transform themselves into Digital Service Providers who can command a strong position in the marketplace we see ahead. And while this transformation will require new approaches and priorities, its rewards will be great.
It will deliver a great deal of added value for both service providers and their customers. It will empower users to leverage the network in ways they never imagined. It will also drive a massive shift in the customer experience and the underlying analytics needed to build and sustain that experience.
For providers, it will offer providers a new flexibility to debut more services that deliver new revenue streams. At the same time, it will offer major opportunities for operational improvement. Providers will be able to enhance vendor diversity and cut their operational costs. Ultimately, if carried out effectively, the transformation will enable providers to drive reductions in both OPEX and CAPEX, while also reducing the time to market.
How real are the benefits they could accrue from the proper investment?
If you see how the IT world has evolved, from the traditional legacy massive computers to PCs to Data Centers to Cloud, then you will realize that the opportunity is indeed very real.
But to accomplish it, providers will need to leap ahead in multiple ways—from operating a hardware-based network, to operating a digital network platform using software; from working with a few hard-wired vendors, to creating an open environment that can be rapidly extended into new industries. And from employing a workforce that primarily “maintains” things like the network, to empowering a workforce that innovates with the customer in mind.
Delivering a great, differentiated customer experience is one challenge providers will absolutely need to get right. This means they will need to do things differently in many arenas. Seize the business opportunities that exist around Video, IoT and Security. Use data and analytics in every elements of business management.
You’ll be appearing at the Broadband World Forum – what makes it such as an important date in the diary?
This event provides excellent strategic alignment to what we are doing in Accenture Network. Some of the most important companies in the business participate. It’s important for thought leaders in this space to be able to share insights, best practices and new approaches with one another. It accelerates the rate at which all of us can progress.