Sponsored: Every industry – from traditional to newer internet-based business models – needs to change and constantly evolve to stay viable and avoid business stagnation
The need to continually innovate and grow has been long recognized by communication service providers (CSPs). Having invested significant resources into building 5G networks, their fundamental fear is to watch these advanced networks become a mere pipe for connectivity.
From LotusFlare’s experience of working closely with CSPs over the past 10 years, we have learned that innovation is not just about launching new products and services, hoping that a new business results. It’s about launching unique new products and services that help you stand out.
This is especially important as CSPs expand into adjacent verticals where it’s even more challenging for them to differentiate themselves. Innovation takes place when a fundamentally new business model is tested, and tried and the organization behind it adapts in ways to make it possible. This is what will make them stand out as they enter these different markets.
What does telco innovation mean today?
At LotusFlare, we believe that the only innovation that is important are the innovations our customers carry out to create valuable business outcomes for their customers. With that in mind, we were pleasantly surprised to learn in mid-2022 that one of our customers uses LotusFlare DNO Cloud as the technology foundation for what they dubbed their “innovation engine”. The innovation engine concept is a BSS environment that’s a “safe space” for new business line experimentation, testing and quick roll-out. It’s like a laboratory that can be converted into a manufacturing facility quickly.
Given this development, LotusFlare wanted to learn about the state of telco business line innovation entering the era of 5G. In cooperation with the survey specialists at Coleman Parkes, LotusFlare asked 50 leading communications services providers (CSPs) in Europe about business line innovation. LotusFlare wanted to understand and share its findings on how important new business line innovation is as well as what helps and what hinders it.
Innovation priorities
There were interesting findings from the survey, two of which I will mention here.
First, business line innovation is the #2 priority of CSPs. When it came to identifying the top five business priorities for CSPs, half of the respondents mentioned “developing innovative new business lines”, making this the second most important priority just after increasing sales.
Second, the capabilities of new network technology, like 5G or fiber broadband networks, are the biggest driver for the development of new business lines. Developing new business lines is mainly driven by the addition or availability of new technology, with network advancements, in particular, being mentioned by just over half of respondents. Please download the report to review all of the summarized findings.
Overall, the survey findings align with the innovation engine concept that LotusFlare has found in one of our customers – namely, the benefit of having a systems environment in which they can experiment with new business lines while imparting best technology practices and customer experience.
As the industry moves into the phases of really taking advantage of 5G and fiber broadband, the survey result supports the idea that an innovation engine becomes all the more important for CSPs who will want to create more and more business lines that are dedicated to network the capabilities of the advanced networks that they created.
For other findings from the survey, download the survey here