Monday, September 18, 2017

Challenges and Opportunities for Telcos from platforms


A few people have been asking for successful use cases for Telcos using platform business models.
Here is the beginner’s notes…

Challenges and Opportunities for Telcos from platforms

Warning signs for Telcos come from the three of the Big four – Facebook, Google, and Amazon.  To cater to the consumer’s need for reliable and high speed internet, Google, Facebook and Amazon’s in house capabilities can be a threat to the Telcos.
Sangeet Choudary explains step by step on how the platform ecosystems have been affecting Telcos and what they can do about. He nails down the differentiators of at least six ecosystems that can offer opportunities for Telcos to prepare for the battle. Sangeet highlights that the infrastructure needs of  digitization of heavy industries, industrial communication ecosystems, B2B supplier ecosystems, healthcare ecosystems, and consumer retail networks can be the best bet for Telcos.

Probing further on search for possible successful use cases for Telcos:

Adopting a few considerations for successful strategies for building use cases with platform business models (a framework – for example – I use one from BearingPoint given in the reference below):

1. Role of API’s in building the ecosystem
    API’s are key for identifying relevant services and partnerships and their ecosystems.
    IOT – machine to machine / APIs for devices is an area where a variety of new services and
monetization models are applied.

Thinking Things  (IOT)– Spain’s Telephonica
UK’s Orange – Along with Nespresso and Coca-Cola – Machine to machine communication system


2. Handling monetization challenges
    
3. Data asset management

4. Stakeholder synergies – customers, suppliers, partners, developers.
      Case Studies from IBM
      – Vodafone Qatar for unified customer marketing solution
      - Wimbledon 2016 – real time analytics to help share the moments
      - Big Fish games – keeping ahead of the game knowing the customer
      - Germany’s Deutsche Telekom  - supporting the digitizing of manufacturing with Industrie 4.0 initiative.
       - Bharathi Airtel and SBI – mobile banking apps.
       - Sweden’s TeliaSonera, stake in Zound Industries, a provider of fashionable accessories for electronics
        Australia’s Telstra has invested in digital signatures through DocuSign and in video platforms through Ooyala. 
        Deutsche Telekom Capital Partners has set aside US$620 million to fund German startups.
     References:

    
5. Network effects of platforms
     - harnessing Cognitive and cloud technologies for engagement with “fans” and innovate new ways
       of knowing how they think and feel with real time data feeds, relevant content.
        There is a typical pattern to how fans act and react to moments pre, during, and post games to help tailor and adapt.

       Case Study – Idea cellular -  dynamic campaign management.
       Smart city initiatives – IBM and AT & T

       References:
       https://www-935.ibm.com/industries/telecom-media-entertainment/case-studies/wimbledon- 2016.html
       https://www.strategyand.pwc.com/trends/2015-telecommunications-trends

  PWC on the opportunities for Telcos
 –    repackaging existing capabilities,
-        Mobility solutions
-        Industry specific (stakeholders)
-        Cloud broker/ aggregator
-        Service enabler
-        End to end integrated propositions

 
 Reference:
  https://www.pwc.com/mt/en/publications/assets/cloud-enabled-telco-opportunities.pdf
    

References:
Pipelines, Platforms, and the New Rules of Strategy’, Harvard Business Review, Marshall W. Van Alstyne, Geoffrey G. Parker, and Sangeet Paul Choudary, April 2016 issue

A few  use case related material for further reading:

https://www.bearingpoint.com/en/our-success/thought-leadership/the-platform-business-model-the-new-way-for-telcos-to-compete/