Study: The Digital Challenge | Page 16

16 The starting point for the telcos in this respect is good. Thanks to their large customer base and comprehensive, often highly reliable network infrastructure, they are well positioned to implement platforms and make them successful. Identifying the right platforms and investing in new platforms and thereby getting into new industries improves the user experience. Top executive, Technology, AT&T, USA But this also requires the capacity to innovate digitally. The telcos must be close to both the market and customers’ needs, must develop and test digital approaches, and must either discard them or continue to refine them iteratively – all while working in close collaboration with potential partners. The established structures of many telcos are currently not designed for such an approach, and often enough the requisite flexible structures and methods must first be introduced and established in a company. One avenue in this direction is to collaborate with and integrate innovative start-ups. Many telcos are already investing in such entities through corporate venturing or incubators, or are promoting the associated practices in their own innovation hubs. It remains a challenge, however, to integrate the ideas, business models, and culture of the start-ups and innovation hubs into the entirety of a telecommunications company. The same applies to open and collaborative innovation in the context of platforms. Open interfaces and joint standards are the basis for successful platform models and accelerate the dissemination of innovations, yet they also require telcos to abandon long-standing business practices, to become more transparent and to open up. By 2022, B2B partnerships and particularly platforms will become increasingly important for telcos. The telcos’ advantageous starting position in this respect will help them successfully reinvent their business and revenue models. However, they will also have to deal with a fundamental shift in their approach. || Scenario 2020: Content & entertainment Start binge watching the new season of a series in the living room and continue on the train? Have customized news sent to your smartphone? Quickly check traffic reports before going for a drive? The customers of a telco company can do all of that now through a centralized dashboard that their provider makes available to them in accordance with their interests and needs. This is because the provider makes proprietary content formats available, buys others through partnerships with media companies and integrates OTT services seamlessly into its own offerings. Accordingly, the customer’s invoice no longer specifies data packages, not to mention voice minutes or individual text messages. The customer buys a content and entertainment package instead – from premium offers with the ability to select from among hundreds of content channels including cloud photo archiving and blazing fast down- and uploads, all the way to economical yet limited options for students. The advantage for the customer? As the telco provider is the general contractor for the customer in all matters related to content & entertainment, it also has an overview of all of the costs. At the same time, the offer is extremely attractive, because it is tailored to the customer’s preferences.