Communications service providers (CSPs) are already the trusted stewards of a lot of data considered valuable across industries and organizations, but with the rise of 5G and the Internet of Things (IoT), the data they have at hand will continue to skyrocket in both size and value. The time is right for CSPs to explore strategies to turn this valuable asset into significant, new streams of revenue.
In early 2018, Ericsson published a report that examined how CSPs were taking advantage of their place in the IoT value chain to maximize opportunities, but the dialogue didn’t stop there. Through strategic engagements with their CXOs, we continue to help them realize their strategies to leverage their unique position in the value chain to generate revenue.
The result of these learnings is a new report that reveals how leading global CSPs are monetizing their IoT data. “Realizing IoT Strategies” presents our eight-dimension strategic framework that ensures a holistic 5G and IoT strategy planning and execution, along with three in-depth case studies that illustrate how leading CSPs are turning their 5G and IoT visions into revenue-generating realities.
Case Study #1: 5G and IoT Strategy
To remain competitive amidst the digital transformation, CSPs should leverage their existing assets to evolve their core business. In addition to deploying high-performance networks, they need to move beyond their historically connectivity-centric approach to explore new growth enabled by 5G and the IoT. In mapping their paths to success, we found that, of the eight dimensions in our framework, these five present CSPs with the most challenge:
• Strategic intent: CSPs tend to be too technology-focused and lack a long-term strategic intent in 5G and IoT.
• Enterprise focus: CSPs’ opportunistic approach to predominantly targeting enterprises means their focus is diluted across many sectors.
• Value chain position: Many leading CSPs want to assume larger roles higher up in the IoT stack, but they often underestimate the capabilities required to reach a position beyond connectivity and network provisioning.
• Go-to-market / ecosystem strategy: CSPs are currently attempting to develop the required capabilities in-house and to build solid partnerships for execution.
• Operating model: CSPs commonly operate in silos, with isolated enterprise and network departments, causing disjointed strategic and operational directions on 5G and IoT.