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MONETIZING
DIGITAL
SERVICES
QUICK INSIGHTS
TM
Report author:
Nancee Ruzicka
President and Founder, ICT Intuition
nruzicka@ictintuition.com
Senior Director, Content:
Annie Turner
aturner@tmforum.org
Editors:
Dawn Bushaus
dbushaus@tmforum.org
Peter Dykes
pdykes@tmforum.org
Manager, Digital Content:
Sarah Wray
swray@tmforum.org
Manager, Content Production:
Paul Davis
pdavis@tmforum.org
Business Development Director, Research & Publications:
Mark Bradbury
mbradbury@tmforum.org
Marketing Director:
Charlotte Lewis
clewis@tmforum.org
Advisors:
Nik Willetts, Chief Digital Officer, TM Forum
Craig Bachmann, Senior Director, Open Digital Program, TM Forum
Report Design:
thePAGEDESIGN
Published by:
TM Forum
240 Headquarters Plaza
East Tower, 10th Floor
Morristown, NJ 07960-6628
USA
www.tmforum.org
Phone: +1 973-944-5100
Fax: +1 973-944-5110
ISBN: 978-1-939303-79-0
Page 4
Executive summary
Page 5
Section 1
Making the shift to a retail mindset
Page 8
Section 2
How to get there from here
Page 12
Section 3
Focus on the opportunities
Page 15
Section 4
Conclusions and recommendations
Page 18
Sponsored feature
CSG
2015. The entire contents of this publication are protected by copyright. All rights reserved. The Forum would like to thank the sponsors and advertisers who have enabled the publication of this
fully independently researched report. The views and opinions expressed by individual authors and contributors in this publication are provided in the writers personal capacities and are their sole
responsibility. Their publication does not imply that they represent the views or opinions of TM Forum and must neither be regarded as constituting advice on any matter whatsoever, nor be interpreted
as such. The reproduction of advertisements and sponsored features in this publication does not in any way imply endorsement by TM Forum of products or services referred to therein.
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QUICK INSIGHTS
Executive summary
For customers of digital services there is no
longer fixed or wireless, voice, data or video
only devices and applications. Televisions,
tablets, phones, credit cards, meters, watches
and vehicles are devices and everything else is
an application.
Customers expect the applications they want
to work on any device at any time. Network
connectivity is now as ubiquitous as electricity
and transportation in many parts of the
world. The challenge then, for digital services
providers of any type, is that classifying
communications as critical infrastructure points
directly toward a regulated utility business
model.
To escape that trap, service providers require
a foundational makeover that alters business
attitudes and operational strategies to embrace
a retail identity and customer-driven mindset.
While the need for service providers to invest
in both network and IT infrastructure has not
diminished, what has changed is their need to
differentiate themselves as profitable retailers
of high quality, reliable and secure services that
are relentless about customer satisfaction.
In Section 1 we look at how, when the
network delivered the product, as long
as customers got an accurate bill, all was
well. The industry is long past those times
however and foundational business models
must undergo a transformation to a more
retail/supply chain approach that manages
partners as well as customers. Industrywide transformation is underway and the
fundamental identity of service providers is
changing with it.
Section 2 explores how to get there from
here: Service providers have endured for more
than a century without a significant business
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Section 1
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19%
0%
n=1003
Source: ICT Intuition, LLC
QUICK INSIGHTS
Figure 1-2: Which type of vendor are you most likely to buy connected digital
services from?
n The
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8%
15%
1%
38%
14%
7%
Each digital services provider will navigate its own way through
transformation, but foundational efforts must originate in the executive suite
n Investment
n Share
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n Relentless
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Section 2
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n Partner/ecosystem
definition and
management Product management for
service providers has typically revolved
around pricing plans. A new price equals a
new product. Now the number of products is
limited only by imagination and the speed of
application developers. Product development
needs its own set of tools and integration
with the OSS/BSS solutions to deliver and
support those products. Data from network
operations to CRM and online customer
actions is used to define new products,
while catalog components are used to
construct them.
n Product/service
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n Skilled/qualified
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n Service
n Service
n Service
n Service
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n Service
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Section 3
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Figure 3-1: Are you considering or have you already bundled connectivity
into products that you sell or resell?
Yes
No
29%
71%
n=1003
Source: ICT Intuition, LLC
Figure 3-2: For those who said Yes, would you consider partnering with a
communications service provider to develop such an offering?
Yes
5%
No
n=882
95%
QUICK INSIGHTS
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PRODUCT
QUALITY MANAGEMENT
CUSTOMER
QUALITY MANAGEMENT
SERVICE
QUALITY MANAGEMENT
INFRASTRUCTURE
QUALITY
MANAGEMENT
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QUICK INSIGHTS
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Acting like a retailer means havin g visibility of all the links in the supply
and distribution chains, supported by robust, integrated channels
Section 4
n Transformation
n Everybody
n Modernization
n Prioritization
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15
n Standards
The fact is that even though service providers are better equipped to
offer and deliver trusted digital services to businesses and consumers,
they are not well equipped to profit from them.
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TM FORUMS FRAMEWORX
AND HOW IT CAN HELP YOU
TM Forums Frameworx is a suite of standards-based tools
and best practices used by 91 percent of the worlds service
providers as a blueprint for effective and efficient business
operations. It enables any business to assess and optimize
performance using a proven, service-oriented approach to
operations and integration.
Frameworx was developed and continues to evolve through
the efforts of TM Forums unique Collaboration Community to
address members business issues and provide an efficient,
external complement to their internal R&D efforts and
resources. Updates are published every six months.
The latest version, Frameworx 14.5, was released in
December 2014. In just four months, hundreds of individuals
from over 230 member companies used TM Forums proven
agile collaboration and development machine in 14 projects to
deliver new features, guided by the Forums Agile Business
and IT, Open Digital Ecosystem, and Customer Centricity
strategic programs. Key features in Frameworx 14.5 include:
A set of new Extra Insights eBooks based on the Forums
Zero-touch Operations, Orchestration and Management
(ZOOM) project.
n A comprehensive set of technical reports on a wide range
of topics, including a compendium of NFV user stories,
NFV MANO gap analysis, specifications and interface
requirements, exploratory reports on NFV security
fabric needs, NFV readiness, impact of end-to-end SLA
management, OSS/BSS futures and many more.
n The first version of the Digital Services Toolkit, which includes
the Digital Services Reference Architecture (DSRA), B2B2X
partnering initiative, REST-based management APIs and endto-end use cases, among numerous other components.
n An introduction to the DSRA, the Forums proposal to
enable richer and more open, distributed digital collaboration
with the essential tools to support increasingly demanding
technical and commercial models.
n An extension of the B2B2X Partnering Guide, providing the
basis for best practices for the identification of touchpoints
between partners in the digital ecosystem.
n Best practices for specifying REST-based Management APIs
and understanding common patterns across Open Digital
Ecosystem APIs. This release also includes additional Open
Digital APIs for customer management, party management,
management of service level agreements and more.
n
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Sponsored feature
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19
Sponsored feature
End-states for todays CSPs fall into four different categories, each enabling its own
value proposition to customers and demanding a distinctive transformative focus.
Careful consideration is required to ensure that a profitable operating model in any
end-state is achieved and return on digital business investment is maximized.
20
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2014 | www.tmforum.org
SOCIAL
MEDIA
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STRATEGIES FOR
MAXIMIZING REVENUE
Sponsored by:
Frameworx:
Mastering the digital world
He explains how TM Forums Frameworx best practices and standards can support the delivery,
monitoring and monetization of digital services today by providing detailed examples. Beyond
this, Reilly has radical ideas about conducting business in the digital ecosystem and introduces a
concept called the value fabric, which replaces the traditional value chain, and shows how all the
players (engaged parties) collaborate within it.
Reillys value fabric concept provides a standard way to simply describe and visualize how
business is conducted. Plus his proposed enhancements to Frameworx could support many
different business models in which a variety of engaged parties are involved in providing value to
customers.
Mastering the digital world is available to download now for $29.99 from
www.tmforum.org/frameworxbook
John P. Reilly
2014 | www.tmforum.org
PRODUCT
LIFECYCLE
MANAGEMENT
QUICK INSIGHTS
Properly implemented, virtualization enables the agile delivery of services to strengthen the
competitive position of network operators. The key is product lifecycle management (PLM)
processes and procedures. The report examines how PLM has been used so far and how its
features and implementation needs to change as network virtualization takes hold.
The shifting competitive environment, where services are typically delivered via partnerships,
has big implications for PLM, and how services and standards are developed. We consider
real-world efforts to transform the PLM process, including some of TM Forums latest Catalyst
projects. We conclude with specific recommendations for a better product-delivery strategy.
USING VIRTUALIZATION
TO INCREASE AGILITY
Sponsored by:
QUICK INSIGHTS
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