Boston Consulting Group points to B2B for building value in telecoms
Finding new value opportunities is essential, particularly when comparing operator performance to others in the telecoms sector. But there are clear opportunities, particularly in B2B – what does this mean and how can you move to the next generation to boost value and returns?
How can you boost performance? B2B services.
Once again, questions are being asked about value in the telecoms industry. A recent article from Boston Consulting Group (BCG) shines a spotlight on sector values, placing operators under scrutiny and challenging them to match the performance from other stakeholders in the communications sector.
As ever, B2B is singled out as a sector that should be a particular focus. Of course, operators have to make the most of 5G investments, but if they are to be more than network and connectivity providers, they need to pay attention to services.
Specifically, BCG points to a next generation of B2B services. Exhibit 3, from BCG, illustrates the point.
Focus areas – migrate existing customers to new b2B solutions
Two areas for initiatives are identified. First, the migration of customers to new solutions. Many operators have a diverse estate of legacy B2B service platforms, each serving a different application. There may be a few thousand customers here, a few hundred thousand there – but each exists as a classic service silo. The problem is that these generate profitable recurring revenue. As a result, they also generate inertia – operators fear and postpone large-scale service migrations, delaying action unless and until there is a trigger point – such as an end-of-life (EoL) notice for such a system.
But that can often result in what is simply a series of replacement projects, with solution A being replaced by solution B, C by D and so on. What’s missing is a strategic plan to migrate all B2B customers to a new, unified solution that can support the applications that have reached EoL and been retired.
So, to tackle BCG’s first point, operators need a clear pathway to eliminate all such B2B siloes and move to a single, consolidated platform. Too often we see RFPs that are focussed on replacing a silo, rather than oriented towards a holistic approach that can deal with the service estate.
Consider all B2B services, right from the start
Our preferred approach is to take into account all B2B services from the outset. Even if it’s not practical or desirable to migrate each at the same time, a clear plan for consolidation that can be implemented over a period of a year or more is required. Migrating customers to a new, more efficient service platform that can support multiple B2B services has several key benefits:
- Cost optimisation, through reducing OPEX, retiring legacy assets and boosting efficiency
- Revenue protection, by ensuring service continuity for profitable services
- Consolidation of customer accounts into a single, unified environment
This has additional consequences. First, it can become much easier to add services to an existing customer’s portfolio – it’s easier to onboard them, it’s easier to add new capabilities, and it’s easier to monetise investments. Second, with the right levels of flexibility – such as Gintel can enable – it’s easier to add new services and to extend the portfolio.
As a result, not only can customers be moved to a new unified platform, but they can also be presented with new offers by evolving capabilities from a single extensible environment. Which brings us to the next initiative suggested by BCG: efforts to target B2Bs.
Target SMEs from the same platform
The article notes that “small and medium businesses increasingly need help upgrading their infrastructure and managing cloud and software-defined services”. Operators not only need to pay attention to rationalising their service estate for existing customers and ensuring smooth migration to a future-oriented platform, they also need to think about extending their reach to smaller companies who need similar services.
Just because a company is small, it doesn’t mean that it must be a drain on an operator. Instead, growth in SME markets is reflected in surging demand for advanced communications solutions. All businesses need to be able to adapt to more flexible working environments, to build collaboration capabilities and to integrate operator-provided services with other useful applications from the cloud.
Talk to Gintel to discover how
Gintel can help. Every day, we work with operators to help them migrate legacy solutions to an environment that both protects their existing customer base and provides the flexibility to create new offers, support new integrations and increase their B2B focus, across all segments.
So, if you are challenged to think of ways to increase value, then why not talk to our team? We can show you how to move from a simple silo replacement programme to a joined-up approach that positions your B2B service portfolio for growth, cost reduction and new opportunities.
Next-Generation B2B. Small and medium-size businesses increasingly need help upgrading their infrastructure and managing cloud and software-defined services. Although operators may need to change their business model, talent, and commercial offers to handle such services, they are in a good position to win this business.