The ever increasing demand for bandwidth by social media and video content has increased tremendously over the last half a decade and with this unprecedented growth, the boundaries between the telecom, IT, and media industries are blurring. Consumers’ demand for ubiquitous connectivity and access to new media has redefined the way business is run today.
Technology has always been at the forefront of these changes and today we see enterprises across the globe, irrespective of the industry they belong to, betting big on- social media, mobility, analytics and cloud. These disruptive technologies have completely transformed the way information and content is generated, accumulated, distributed and finally accessed by the end customers. To encompass it all are the Smart Connected Systems that have enabled Machine to Machine (M2M) communications. According to Cisco “Currently 99.4% of the physical objects that may one day be part of the Internet of Everything (IoE) are still unconnected and IoE creates $14.4 trillion in Value at Stake across industries from 2013 to 2022”. We are talking about a business potential which is greater than the GDP of world’s second largest economy.
In order to monetize these business opportunities, the players in the telecom & media value chain are looking for consumer centric sustainable business models. To reduce the upfront investments, telcos have started working closely with system integrators and platform providers. Service transformation with newer service delivery models, partnering with platform providers and white labelling of services is the way forward. System integrators can offer a wide variety of services bringing in vertical and horizontal expertise, redefine business processes, enhance consumer experience using analytics and information management, and provide service automation and end-to-end managed services.
Building a strong services portfolio and bundling them with existing products and technologies will bring in more flexibility, create new revenue streams and help differentiate offerings from the competition. Communication Service Providers (CSPs) along with Telecom Equipment Vendors (TEVs) are actively seeking strategic partners who can help them stay competitive and the focus for these players in the ecosystem will be to bring in business transformation, optimize investments, offer value added services and deliver superior customer experience.
Substantial investments in vertical-specific use cases such as utilities- smart metering, healthcare – patient monitoring, BFSI- personal banking have picked up significantly for enterprises in mature markets. Nonetheless enterprises are embracing these changing trends in the emerging markets as well. India and other developing economies of the world are very strongly poised to become centres for new product development and service transformation. Personalized banking for premium customers, tailored advertisements, on the move transactional updates and ease of online payments have translated the banking experience to a new level.
In summary, these breakthrough technologies and services have given rise to a digital world and in order to win in this digital world, collaboration and consolidation is key. Mutual trust, strong governance, business models based on revenue sharing and regulatory compliances are the key factors which will enable these players to offer next gen customized, smart and connected services to end users.
In this fragmented ecosystem how quickly can we build an ecosystem based on trust needs to be realized sooner rather than later! What do you think? Do leave in your comments.