Gaining a Competitive Advantage through Agile Service Management and Operations
Changing Business Models
The Communication Service Provider (CSP) market is characterized by vertically integrated players with end-to-end ownership of network, operations and consumer businesses. In the near future, the communications industry landscape is expected to change and become a mosaic of specialized service providers pursing varying business models. This is the result of stagnating voice/data revenues, explosive growth in consumer content, rising demand for XaaS (Anything as a Service) among Small and Medium Businesses, and the emergence of new OTT (over the top) players.
CSPs have been weighing ...view middle of the document...
For open garden players, transaction volumes generated by 3G/4G service expansion and the launch of new digital services will create skyrocketing amounts of touchpoints/fallouts necessitating investments in service delivery, fulfillment and assurance tools, and processes.
On the other hand, flawlessly delivering capacity within SLAs, and providing cloud computing and managed services offerings ($34 billion global cloud computing market in 2014 with CAGR of 34.6% 3 ), and distribution of high definition digital content will require utility providers to further focus on automating and simplifying their service delivery, service fulfillment, and service assurance processes.
Service Management & Operations: A Strategic Enabler of New CSP Business Models
Whichever business model CSPs choose, delivering the right level of service at the right price (while making a profit) is the challenge that CSPs increasingly will face. To achieve this, a CSP’s back end business needs to run with maximum agility, simplicity and efficiency. The focus must be not only on ensuring that existing service delivery, fulfillment and assurance are effectively managed and can support SLAs, but on the ability to support launching and operationalizating new services. Delivering IT solutions to ensure that services are operationally ready to be launched, flow correctly through service delivery and service fulfillment systems, and can be efficiently monitored in service assurance systems will become paramount for both types of providers.
This paper examines the reasons why CSPs, whether they adopt an “open garden model” or a “utility model”, will increasingly need to simplify and automate their service management and operations back-end processes. It provides best practices and lessons learned in service delivery, fulfillment and assurance, drawn from a Case Study of the establishment of service management and operations functions at a leading Tier 1 telecom operator through the launch of its new digital media distribution utility. It specifically suggests an operations model framework which identifies capabilities to support newly launched digital content distribution and delivery services, required roles and responsibilities, and the relationships between the different Operations Organizations within the CSP.
While this document specifically covers the setup of operations to support the digitization and packaging of video content for distribution to Digital Media Retailers (e.g. Hulu or Netflix) and subsequent delivery to consumers across multiple platforms and devices via CDNs (Content Delivery Networks), the concepts presented in this paper are applicable to the launch of any new digital services or cloud computing/managed services offerings.
The operations model proposes an optimal organizational structure to support the capabilities required to launch new digital services. It is structured in three levels that each has specific responsibilities to ensure...