Evolution of Telecommunication Service Providers, from Legacy to Digital, Namal Jayathilake, Axiata Digital Labs
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The document discusses the evolution of telecommunications service providers from traditional models to digital-centric operations, highlighting the need for telcos to be digitally enabled in order to meet customer demands and streamline processes. It outlines the typical challenges faced by traditional telcos, such as long development cycles and high costs, while emphasizing the shift towards agile methodologies and the importance of technology teams in creating customer-centric experiences. Additionally, it suggests leveraging modern architectures, such as API and microservices, to enhance agility and support emerging digital business models.
Evolution of Telecommunication Service Providers, from Legacy to Digital, Namal Jayathilake, Axiata Digital Labs
- 1. © 2021 Axiata Digital Labs (ADL). All right reserved. EVOLUTION OF TELECOMMUNICATION SERVICE PROVIDERS From Legacy to Digital
- 2. © 2021 Axiata Digital Labs (ADL). All right reserved. DISCUSSION POINTS Why Telcos need to be digitally enabled Typical challenges of a traditional Telco The evolution of traditional telco - Technology architecture evolution The evolution of traditional telco - Role of tech teams in a digital Telco Emerging digital business models and how to leverage those
- 3. © 2021 Axiata Digital Labs (ADL). All right reserved. WHY TELCOS NEED TO BE DIGITALLY ENABLED Customer Telco Supplier Digital savy and demanding OTT like experience at a lower cost Telco core services rapidly becoming a commodity, however the investment required to keep up with technology is not reducing, no more killer features to recover costs However CSPs still holds the key of providing un-interrupted connectivity/coverage with necessary speeds and quality Stuck in between legacy and software world, lengthy development cycles and massive R&D cost
- 4. © 2021 Axiata Digital Labs (ADL). All right reserved. TYPICAL CHALLENGES OF A TRADITIONAL TELCO Mobile User Employees Enterprises Demands for new features, better user experience, multi device compatibility, seamless digital journeys (BSS experts, core NW engineers, sales, marketing, procurement, ..) Partners (Vendors, suppliers, distributors…)
- 5. © 2021 Axiata Digital Labs (ADL). All right reserved. TYPICAL CHALLENGES OF A TRADITIONAL TELCO Employees (BSS experts, core NW engineers, sales, marketing, procurement, ..) Partners (Vendors, suppliers, distributors…) Sales/ business Telco Solution Provider - CR (long dev cycle inherent to Telco systems, high cost and time) IT/core – feasibility requirement Clarifications Alterations 1 Change Requests Integrations 2 7 5 3 4 6
- 6. © 2021 Axiata Digital Labs (ADL). All right reserved. TYPICAL CHALLENGES OF A TRADITIONAL TELCO Sales/ business Telco Solution Provider - CR (long dev cycle inherent to Telco systems, high cost and time) IT/core – feasibility requirement Clarifications Alterations 1 Change Requests Integrations 2 7 5 3 4 6
- 7. © 2021 Axiata Digital Labs (ADL). All right reserved. WHAT HAPPENS IN TRADITIONAL BSS WHEN IMPLEMENTING THE FEATURE CR1 CR2 CR3 High TCO (dev and ops cost) Longer TTM Lower ROI More complexity in BSS Near impossible to remove Multiple CRs New System Introduction or both Burdened and stressed teams Limited innovation Eroding Revenue and even lower margins due to higher TCO Cx gets what is available with telco may not be what he wants: Unhappy Cx, High churn, No competitor advantage to grab market share
- 8. © 2021 Axiata Digital Labs (ADL). All right reserved. OTT’S WITH DIFFERENT DNA – WHAT CAN WE LEARN FROM THEM Telcos OTTs
- 9. © 2021 Axiata Digital Labs (ADL). All right reserved. OTT’S WITH DIFFERENT DNA – WHAT CAN WE LEARN FROM THEM Any IP Network, commodity hardware API & Microservices fabric Digital Engagement Channels Catalog Account Loyalty Rewards 1. Customer experience driven 2. Software centric open API based flexible stack 3. Microservices based Agile service creation. Fail fast-cheap and iterate mentality 4. Analytics pre-integrated as APIs to Digital Stack 5. Continuous Integration-Continuous Deployment process/tool chain fined tuned to deliver features/upgrades daily or even hourly Low TCO, Agility in delivering customer experience outcomes in days/weeks Native ability to play with developers and ecosystem partners – Hence Agility to pivot services and business
- 10. © 2021 Axiata Digital Labs (ADL). All right reserved. THE EVOLUTION OF TRADITIONAL TELCO WITH TWO SPEED STACK API & Micro Services fabric Network & Infrastructure Customer engagement Legacy Channels Apps by partners Virtual Assistants OCS Billing Meditation Distribution Management systems BSS Core System Digital Engagement Channels Product Catalogue Selfcare e-commerce Mobile Money Fin Tech Others Old BSS Boundary Before After Network & Infrastructure Customer engagement Legacy Channels Apps by partners Virtual Assistants Digital Engagement Channels Selfcare e-commerce Mobile Money Fin Tech Others BSS Core System Rating Policy Mgt New BSS Boundary Mediation Legacy BSS architecture is not well suited to keep up with ubiquitous customer expectations and complex enterprise offerings Backend architectures need to be evolved in to a “two speed IT stack” to cater to increased digital service and experience demand
- 11. © 2021 Axiata Digital Labs (ADL). All right reserved. THE EVOLUTION OF TRADITIONAL TELCO WITH TWO SPEED STACK 1. Telco-Ready Continuous Integration-Continuous Deployment process/tool chain fined tuned to deliver features/upgrades daily or even hourly 2. Future proof applications on standardized APIs 3. Data and Analytics as APIs to leverage vast telco dataset and insights at microservice layer 4. Rapid prototyping with a lower cost: Re-use micro services across many CSPs, leverage cloud services in the same environment 5. Partnerships: Flexile and open stack to partner with other digital players and hyperscalers Telco solution providers can focus on getting core systems ready for larger industry trends, eg: 5G, IOT..
- 12. © 2021 Axiata Digital Labs (ADL). All right reserved. THE EVOLUTION OF TRADITIONAL TELCO - ROLE OF TECH TEAMS IN A DIGITAL TELCO From Telco to Telco + Software New toolset enables the transition with minimum business risk and people dependency, eg: Common code repo, team can work on same code Procuring boxes to creating solutions Standard core BSS systems from suppliers and innovation in peripheral digital layer Adopting agile practices Agile teams with members from IT, business, PMO, etc co-located, focus on MVP and incremental improvements in sprints, clear product owner to drive the UXP Focus on user experience UI/UX teams, alpha and beta releases, … Emerging roles in Telco orgs Chief Digital Officer, CTIO, Chief Innovation Officer, Chief Data Officer/data custodian, Chief Product Officer..
- 13. © 2021 Axiata Digital Labs (ADL). All right reserved. TECHNOLOGY ARCHITECTURE EVOLUTION AND CHANGE OF ROLES ENABLES… Customers Centric Experience Driven End products Faster TTM due to lower core CRs and MVP based incremental approach Digital multi channel enabled, seamlessly orchestrated customer journeys Low TCO, Agility delivering customer experience outcomes in days/weeks, Transforming IT/BSS Ability to fail fast & cheap and iterate Native ability to play with developers and ecosystem partners
- 14. © 2021 Axiata Digital Labs (ADL). All right reserved. DIGITIZED TELCO BUSINESS MODEL VIEW
- 15. THANK YOU ..!