the 2020 digital partner - tm forum digital transformation me · reimagining oss & bss with the...
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© 2018 TM Forum | 1
NIK WILLETTS, CEOTM FORUM DIGITAL TRANSFORMATION MIDDLE EAST 2018 – DUBAI – JANUARY 22, 2018
SEIZING THE OPEN ECOSYSTEM OPPORTUNITY
The 2020 Digital Partner
© 2018 TM Forum | 2
Mobile
Technology
Operations & IT
Consumer
Devices
Industry
Growth
The first 4 generations of mobile followed a repeatable recipe
© 2018 TM Forum | 3
But in the last decade, connectivity has become a commodity
$13.9
Amazon
Alphabet
Intel
Microsoft
Apple
Johnson & Johnson
GeneralMotors
Pfizer
Ford
Oracle
$12.7
$12.3
$10.0
$9.0
$8.1
$7.8
$7.3
$6.2
$16.1 billion
TECH COMPANIES LEAD IN R&D SPENDING
Source: Factsheet
10Yr annual return-1.47%
S&P 500 Telecommunications Index
S&P 500 Index
2010 2015 2018
CSP SHARE OFAVAILABLE EBITDA
Total EBITDA Available to CSPs
1980 1990 2000 2010 2020
SCALE & SHARE OF PROFIT
commoditisation
% available
EBITDA
Volume/scale
© 2018 TM Forum | 4
5G open ecosystems represent a $582bn collaborative opportunity
Public Transport Public Safety
Manufacturing
Healthcare
Enterainment
CURRENT OPERATOR + 5G ADDRESSABLE REVENUES INCREMENTAL $582BN SPLIT BY INDUSTRY (2026)
2016 2018
$bn
2020
+20%Industry potential
to add 20%+ new
revenues by 2026
2022 2024
Energy &
Utilities
19%
$582Bn2026 Operator addressable
5G digitalization revenues 17%
13%13%
13%
11%
Financial Services
Automotive
8%
Media &
5%
New
ad
dre
ssab
le
5G
en
ab
led
reven
ues
Cu
rren
to
pera
tor
serv
ice r
even
ues
Source: Ericsson & Arthur D. Little
2026
© 2018 TM Forum | 5
Seizing the opportunity requires radical business transformation
MASSIVE MACHINE
TYPE COMMUNICATIONS
ENHANCED MOBILE
BROADBAND
Gigabytes in a second
3D video, UHD screens
Work and play in the cloud
Augmented reality
Industry automation
Self Driving Car
Mission critical application
e.g. remote robotic surgery
ULTRA-RELIABLE AND LOW
LATENCY COMMUNICATIONS
Smart City
Smart Home/Building 5GDEMANDS BUSINESS
TRANSFORMATION,
NOT JUST NEW
TECHNOLOGY
‘5G Triangle’ Diagram Source: ITU
ECOSYSTEM ENABLER
CONNECTIVITY PROVIDER
© 2018 TM Forum | 6
Successful in transformation requires a clear ambition, executed fast
Digital efficiency
Digital Ecosystem Enabler Digital Partner
Traditional CSP Digital CSP
Dig
italen
ab
lem
en
t
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Business agility matters more than detailed strategy
$1.2tnTotal industry
additional profit
2016 - 2025*
Red Ocean
Battlegroundse.g. Connectivity, Content
B2C Focus
Blue Ocean Opportunities
e.g. 5G, IoT, B2B2x
B2B Focus
Digital efficiency
Dig
italen
ab
lem
en
t
Source: World Economic Forum
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Successful transformation happens in concert, not departmental silos
AMBITION
& STRATEGY
OPERATIONS
LEADERSHIP,
CULTURE & ORG.
STRUCTURE
CUSTOMER &
PARTNER
CENTRICITY
TECHNOLOGY
Digital efficiency
Dig
italen
ab
lem
en
t
TM FORUM’S
INDUSTRY-AGREED
DIGITAL MATURITY
MODEL HELPS GUIDE
THE WAY
© 2018 TM Forum | 9
Success in 5G means transforming core operations & IT
MASSIVE MACHINE
TYPE COMMUNICATIONS
ENHANCED MOBILE
BROADBAND
ULTRA-RELIABLE
AND LOW LATENCY
COMMUNICATIONS
Smart
City
Smart Home/
Building
Autonomous
vehicle
Mobile
Technology
Operations & IT
Consumer
Devices
Industry
Growth
▪ Zero-touch, AI-driven, software-defined operations (business & technology)
▪ Designed to deliver agility, efficiency & interoperability – to stay competitive
© 2018 TM Forum | 10
TM FORUM’S KEY DELIVERABLES AND FOCUS FOR THE YEAR AHEAD
It’s Time to Transform our Industry
© 2018 TM Forum | 11
It’s time to rethink the role and operating model for IT
1990s Mindset
Cost-centric: “Reduce the 5%”
IT Rest of Business
2018 Mindset
Impact-centric: “Transform the 95%”
IT Rest of Business
▪ Integral to innovation & improvement▪ Modular, API-enabled design▪ Highly agile front-end; super-stable backend▪ Technology & business expertise
▪ ‘Internal supplier’ of support systems▪ Monolithic systems design▪ Waterfall management & governance▪ Deep technology expertise
© 2018 TM Forum | 12
Reimagining OSS & BSS with the Open Digital Architecture
2000s IT Mindset
Cost-centric: “Reduce the 5%”
2018 IT Mindset
Impact-centric: “Transform the 95%”
Operations(processes & people)
BSS
OSS
Network (physical)
CSP domain Digital SP domain Partner domains
AI Enabled Operations
Open Digital Architecture & APIs
Model and Data-Driven | Metadata and MicroserviceOriented | Normalized set of Open APIs
Infrastructure (virtual / hybrid)
Dif
fere
nti
atio
n
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The new operating model of the software-driven telco demands…
INTE
LLIG
ENC
E ▪ Radically simplified, flexible and modular business processes
▪ Componentization of technology into discreet business capabilities through abstraction, APIs and rationalization of legacy systems
CONTINUOUS IMPROVEMENT & INNOVATION
▪ Zero-touch, closed-loop automation of business and technology operations, enabled by machine learning and artificial intelligence
▪ Business decisions driven by real-time data, analytics and artificial intelligence
▪ Continuous view of end-to-end customer experience, constantly driving product and service evolution and innovation
© 2018 TM Forum | 14
We’re helping our members address the critical business challenges…
Navigate
Transformation
Accelerate and execute
urgent business
transformation to seize
the digital opportunity
Deliver
Business Agility
Dramatically simplify and
automate to deliver zero-
touch operations fit
for the 5G world
Manage Digital
Ecosystems
How to rapidly onboard,
manage and grow
partnerships that underpin
business model
transformation
to enhance their customer experience, profitability and opportunities to grow.
© 2018 TM Forum | 15
Game-changing industry collaboration focus areas for 2018
NavigateTransformation
Deliver Business Agility
Digital Ecosystem Management
DIGITAL MATURITY DIGITAL LEADERSHIP
SIMPLIFICATION, AUTOMATION& INTELLIGENCE
GAME-CHANGING TECHNOLOGIES
DIGITAL ECOSYSTEM CREATION
CRITICAL CHALLENGES 2018 TM FORUM FOCUS AREAS
Model & Benchmark Tracker Network Awards Community
Reimagined OSS/BSS for zero-touch operations
Open Digital Architecture & APIs
Data Analytics & Customer Satisfaction
Agile Governance & Security
AI Blockchain
IoE & Smart City Biz Assurance
EcosystemCatalysts
