Openness and Collaboration: Final Takeaways from TM Forum
Dr. Steffen Roehn
Nik Willetts21 Oct 2021
Openness and Collaboration: Final Takeaways from TM Forum
The second half of the Digital Transformation World Series highlighted the telecom industry’s growing momentum for more open and modern partnerships and technology ecosystems.
Seeking accelerated growth and innovation, telecommunications executives are more heavily emphasizing two things: openness and collaboration. They’re investing in more open business models and modern technology systems, as well as in more fruitful partnerships within and outside the industry.
Those themes were top of mind for many leaders during the final two weeks of the Digital Transformation World Series (DTWS), an annual gathering of network and communications service providers (CSPs), technology suppliers, consultancies, and systems integrators hosted by TM Forum. (Read about the conference’s earlier discussions here and here.)
Let’s unpack some of the key takeaways from the second half of the conference.
For CSPs to capitalize on growth opportunities, evolving their partnerships and business models will likely be crucial. As 5G advances, providing network connectivity and building consumer and enterprise services on top of that connectivity could deliver significant growth for CSPs. They have an opportunity to become a fundamental layer of every industry. However, some telcos continue to use business and partnership models that, while valuable to their success in the past, are arguably becoming potential blockers to innovation.
For example, CSPs’ relationships with hyperscale cloud service providers are maturing, but in many cases remain customer-supplier procurement deals, rather than true collaborative partnerships exploring the development of innovative services. One idea discussed during the DTWS is CSPs could focus on forming global partnerships with hyperscalers, rather than striking country-by-country agreements.
Although telcos frequently have separate businesses for each geographic market they serve, a global approach to codeveloping and integrating services with hyperscalers would likely be more effective and better match the partner’s worldwide business model. During the DTWS, both CSP and hyperscaler leaders expressed interest in forming stronger partnerships. But for CSPs, concerns persist about motivations and the exact nature of commercial relationships. They’re wary of disintermediation.
Some CSPs are moving faster than others, but the industry seems to have a clear understanding that it needs to evolve from CSP-centric supplier ecosystems—in which telcos curate, aggregate, and sell services to their own connectivity customers—to more open and collaborative models with a range of partners, from hyperscalers to independent software developers.
Open digital architectures and application programming interfaces (APIs) will be at the heart of these initiatives, not only because they can help simplify legacy CSP technology, but also enable more rapid co-development of cutting-edge products and services. Recent efforts on this front include a TM Forum-led proof-of-concept project exploring the creation of a digital business marketplace for industrial applications, such as Internet of Things solutions and supply chain security.
Data analytics and artificial intelligence are becoming essential for telecom network planning and operation. Mobile and fixed networks have grown more complicated, and CSPs feel intensifying pressure to reduce costs and target new revenue opportunities. More automated decision making is starting to make a difference on all of these fronts.
Building upon a deep understanding of their geographies, customers, and historical network performance, CSPs are developing predictive machine learning models that take advantage of increasingly powerful computing processors and massive, hyperlocal data sets provided by remote-sensing technology, including micro-satellites, GPS, and lidar. Many are also investing in “digital twin” systems that use virtual models of network operations to run real-time scenario-planning exercises and improve decision making.
Of course, access to these technologies and data sets doesn’t automatically translate to success. CSPs are finding they still need to hone the requisite organizational capabilities, skills, culture, governance, and operating model in order to take full advantage of these tools.
Indeed, building on earlier discussions during the DTWS, executives continued to stress that talent remains one of their organizations’ top challenges. Telecom leaders recognize how critical a diverse, talented workforce will be to achieving their ambitions in analytics and data-driven decision making, becoming more of a service provider, and forming more successful partnerships, among other strategic initiatives. But across many benchmarks, the telecom industry lags other industries when it comes to diversity, equity, and inclusion (DEI).
We heard stories of telcos building more inclusive teams and implementing changes to attract younger, more diverse talent, such as allowing more flexible working arrangements and letting teams set their own working norms. But there’s a lot of work ahead.
Measuring progress on DEI has been difficult. One important solution is the TM Forum’s launch of the Inclusion and Diversity Score an initiative spearheaded by TM Forum’s Diversity & Inclusion Council, chaired by Colt Technology Services CEO Keri Gilder, and supported by a group of founding member companies that includes Bain & Company. The score, a single, universal index, is believed to be the first in the world to measure both diversity and cultural inclusiveness, providing a benchmark for real change in the telecoms industry. TM Forum has completed an alpha trial of the score and will now expand to a beta phase with a larger group of organizations, ahead of an anticipated full launch next year.
The good news for telcos is that candidates, particularly younger talent, are increasingly seeking a stronger sense of purpose in their job. CSPs have a lot to offer in that area because the Covid-19 pandemic has renewed and sharpened their unifying purpose. Network connectivity is now seen by many as a human right and a core pillar of society. CSPs are focused on delivering the right connectivity services—including new ones built upon 5G, edge computing, and AI—and enabling increasingly digital businesses, communities, and personal lives.
This clarity of purpose is helping CSPs to motivate their teams, accelerate real change, simplify their product portfolios, and hone their strategies.
Throughout this year’s conference, it was clear that many telcos’ business transformations are bearing fruit. They’re bolder, leaner, and more agile. They’re becoming more ready and able to strike increasingly open and collaborative partnerships that will boost growth, and they’re taking advantage of modern and more open technology architectures and breaking down traditional operational silos.
In short, the industry seems to have real momentum. Will it maintain and build upon it?
Seeking accelerated growth and innovation, telecommunications executives are more heavily emphasizing two things: openness and collaboration. They’re investing in more open business models and modern technology systems, as well as in more fruitful partnerships within and outside the industry.
Those themes were top of mind for many leaders during the final two weeks of the Digital Transformation World Series (DTWS), an annual gathering of network and communications service providers (CSPs), technology suppliers, consultancies, and systems integrators hosted by TM Forum. (Read about the conference’s earlier discussions here and here.)
Let’s unpack some of the key takeaways from the second half of the conference.
For CSPs to capitalize on growth opportunities, evolving their partnerships and business models will likely be crucial. As 5G advances, providing network connectivity and building consumer and enterprise services on top of that connectivity could deliver significant growth for CSPs. They have an opportunity to become a fundamental layer of every industry. However, some telcos continue to use business and partnership models that, while valuable to their success in the past, are arguably becoming potential blockers to innovation.
For example, CSPs’ relationships with hyperscale cloud service providers are maturing, but in many cases remain customer-supplier procurement deals, rather than true collaborative partnerships exploring the development of innovative services. One idea discussed during the DTWS is CSPs could focus on forming global partnerships with hyperscalers, rather than striking country-by-country agreements.
Although telcos frequently have separate businesses for each geographic market they serve, a global approach to codeveloping and integrating services with hyperscalers would likely be more effective and better match the partner’s worldwide business model. During the DTWS, both CSP and hyperscaler leaders expressed interest in forming stronger partnerships. But for CSPs, concerns persist about motivations and the exact nature of commercial relationships. They’re wary of disintermediation.
Some CSPs are moving faster than others, but the industry seems to have a clear understanding that it needs to evolve from CSP-centric supplier ecosystems—in which telcos curate, aggregate, and sell services to their own connectivity customers—to more open and collaborative models with a range of partners, from hyperscalers to independent software developers.
Open digital architectures and application programming interfaces (APIs) will be at the heart of these initiatives, not only because they can help simplify legacy CSP technology, but also enable more rapid co-development of cutting-edge products and services. Recent efforts on this front include a TM Forum-led proof-of-concept project exploring the creation of a digital business marketplace for industrial applications, such as Internet of Things solutions and supply chain security.
Data analytics and artificial intelligence are becoming essential for telecom network planning and operation. Mobile and fixed networks have grown more complicated, and CSPs feel intensifying pressure to reduce costs and target new revenue opportunities. More automated decision making is starting to make a difference on all of these fronts.
Building upon a deep understanding of their geographies, customers, and historical network performance, CSPs are developing predictive machine learning models that take advantage of increasingly powerful computing processors and massive, hyperlocal data sets provided by remote-sensing technology, including micro-satellites, GPS, and lidar. Many are also investing in “digital twin” systems that use virtual models of network operations to run real-time scenario-planning exercises and improve decision making.
Of course, access to these technologies and data sets doesn’t automatically translate to success. CSPs are finding they still need to hone the requisite organizational capabilities, skills, culture, governance, and operating model in order to take full advantage of these tools.
Indeed, building on earlier discussions during the DTWS, executives continued to stress that talent remains one of their organizations’ top challenges. Telecom leaders recognize how critical a diverse, talented workforce will be to achieving their ambitions in analytics and data-driven decision making, becoming more of a service provider, and forming more successful partnerships, among other strategic initiatives. But across many benchmarks, the telecom industry lags other industries when it comes to diversity, equity, and inclusion (DEI).
We heard stories of telcos building more inclusive teams and implementing changes to attract younger, more diverse talent, such as allowing more flexible working arrangements and letting teams set their own working norms. But there’s a lot of work ahead.
Measuring progress on DEI has been difficult. One important solution is the TM Forum’s launch of the Inclusion and Diversity Score an initiative spearheaded by TM Forum’s Diversity & Inclusion Council, chaired by Colt Technology Services CEO Keri Gilder, and supported by a group of founding member companies that includes Bain & Company. The score, a single, universal index, is believed to be the first in the world to measure both diversity and cultural inclusiveness, providing a benchmark for real change in the telecoms industry. TM Forum has completed an alpha trial of the score and will now expand to a beta phase with a larger group of organizations, ahead of an anticipated full launch next year.
The good news for telcos is that candidates, particularly younger talent, are increasingly seeking a stronger sense of purpose in their job. CSPs have a lot to offer in that area because the Covid-19 pandemic has renewed and sharpened their unifying purpose. Network connectivity is now seen by many as a human right and a core pillar of society. CSPs are focused on delivering the right connectivity services—including new ones built upon 5G, edge computing, and AI—and enabling increasingly digital businesses, communities, and personal lives.
This clarity of purpose is helping CSPs to motivate their teams, accelerate real change, simplify their product portfolios, and hone their strategies.
Throughout this year’s conference, it was clear that many telcos’ business transformations are bearing fruit. They’re bolder, leaner, and more agile. They’re becoming more ready and able to strike increasingly open and collaborative partnerships that will boost growth, and they’re taking advantage of modern and more open technology architectures and breaking down traditional operational silos.
In short, the industry seems to have real momentum. Will it maintain and build upon it?
