THE NEW DIGITAL

BUSINESS REALITY
 Total industry revenue (33.2%)

$3.2tr

2010
Wireline &

58%
Wireless Operators

Total industry revenue (30.2%)

$3.8tr

2015
Wireline &
47%

Wireless Operators
CSPs are failing to capitalize on value of digitalization

Total industry revenue (32.8)%

$4.4tr

Wireline &
45%

2018 Forecast

Wireless Operators

Total industry revenue

$?tr

?%

Wireline &
2022 Forecast

Wireless Operators
Source & Accenture/WEF analysis based on data from S&P Capital IQ.
 SO WHAT IS
> DIGITAL? <
 DIGITAL IS
> CUSTOMER CENTRICITY <
 DIGITAL IS
> DATA <
 DIGITAL IS
> INNOVATION <
 DIGITAL IS
> CREATIVITY <
 DIGITAL IS
> AGILITY <
 DIGITAL IS
> RETHINKING BUSINESS <
CSPs must embrace transformation in two directions

DIGITAL SERVICE ENABLER

Platform and outcome-based business models

Open APIs enable co-creation with partners
Ecosystem curator & participant roles
DIGITAL ECOSYSTEM ENABLEMENT

TRADITIONAL CSP DIGITAL SERVICE PROVIDER

Traditional sources of revenue Highly automated & dynamic digital infrastructure provider
Traditional subscriber business model Customers self-serve rich multi-play capabilities
CSP-controlled customer interaction Digital channels dominate customer interactions

DIGITAL SERVICES PROVISIONING

Diagram Source/Inspiration: Nick Gurney & Robert van den Dam, Outthinking Disruption in Communications, IBM Institute for Business Value Report.
 > RETHINKING <
OUR ROLE IN THE DIGITAL MARKET
From value chain to value fabric - Elements of value exchange

PRODUCERS CONSUMERS

PLATFORM

2016 Parker & Van Alstyne, with Choudary licensed under Creative Commons Attribution-ShareAlike 4.0 International (CC BY-SA 4.0).
Ecosystem success demands collaboration

Ego-system

Ecosystem
> DRONE ECONOMY <
> SMART CITIES <
SO WHAT NEEDS TO
> CHANGE? <
Transformation is needed but how?

Customer
.

Technology Strategy

Operations .

Culture, People,
Organization
In the digital world

Culture eats strategy

for breakfast .
Peter Drucker
In the digital world

Agility Culture eat strategy

& breakfast , lunch and dinner.
for
 180
COUNTRIES
850+
MEMBERS

5bn
CUSTOMERS

$2Tn
REVENUE
Introducing the TM Forum Digital Maturity Model

Customer
.

Technology Strategy

Operations .
Culture, People,
Organization
5 dimensions, 175 criteria, easy to use across the business

Customer Strategy Culture, People, Operations Technology

Organization
.

Customer Engagement Brand Management Culture Agile Change Management Applications

Ecosystem Leadership Automated Resource

Customer Experience Connected Things
Management & Governance Management

Customer Insights & Organizational Design & Integrated Service

Finance & Investment Data & Analytics
Behaviour Talent Management Management

Customer Trust & Real-time Insights and

Market & Customer Workforce Enablement Delivery Governance
Perception Analytics

Portfolio, Ideation & Smart and Adaptive Process

Network
Innovation Management
.

Standards and
Stakeholder Management Security
Governance Automation

Strategic Management Technology Architecture

Real digital transformation demands engaging the whole business

Customer

Leadership
.

Strategy

Technology Strategy

Incumbent Strategy
Operations .
Culture, People,
Organization
Digital Maturity Model App
Digital Maturity Model App
RETHINKING THE OPERATING MODEL
> REIMAGINING I.T. <
 DIGITAL ECOSYSTEM MANAGEMENT
> INNOVATION THROUGH COLLABORATION <
Open APIs: Enabling business agility & growth

Open API Signatories May 2016

October 2016

October 2016

May 2017

Companies embracing open APIs enjoy a 4 10% increase in market capitalization*

31 TM Forum Open APIs now available; deployed in 14 CSP Markets
Self-conformance, training and career certification now launched

* Role of APIs in Firm Performance, Van Alstyne, University of Boston

Building the ecosystem CurateFx
 > CATALYSTS <
DELIVERING ON THE PROMISE
OF OPEN INNOVATION
 DIGITAL TRANSFORMATION
> MODEL AND METRICS <

RETHINKING THE OPERATING MODEL

> REIMAGINING I.T. <

DIGITAL ECOSYSTEM
> MANAGEMENT <
 THE NEW DIGITAL
BUSINESS REALITY
> LETS MAKE IT HAPPEN! <