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Business Transformation 1

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  • 1. Nokia Siemens Networks Industry Themes Business Transformation
  • 2. Copyright 2007 Nokia Siemens Networks. 2/4 All rights reserved. Network operators and service providers face pressures from all directions. They are pushed to increase the efficiencies of their operations and technologies and raise shareholder value. They are challenged to create new services. They must contend with new disruptive business models and end-users who are increasingly demanding more for less. They must also be able to expand their networks and processes in ever more challenging market conditions with ultra-low ARPUs. All signs that the communications industry has to undergo a huge business transformation. To help our customers define their commercial and technological strategy choices, Nokia Siemens Networks brings a deep understanding of global and local drivers and needs. Our strength comes from combining our perspective on market developments and technologies with end-user insights on specific market conditions and dynamics. The speed of economic, technological and social change is opening an opportunity for operators and service providers to re-think the way they run their businesses. Some of the most notable trends are: • Players using the Internet business model entering the telecom market • Applications driving the infrastructure evolution leading to multi- purpose networks; the convergence of telecom, media and IT industries; rise of diverse business models where combinations of fixed, mobile, cable, TV and content services are bundled together • Many different roles for operators to adopt when building new services and business models • The increasing importance of communities and customer ownership and rising end-user expectations • Growth challenges in mature markets • Growth challenges in new growth and ultra-low ARPU markets The operators’ success in this context will depend on them designing business models for their individual market situations. We aim to help them capture the opportunity and achieve Total Value of Ownership (TVO) by optimizing OPEX and CAPEX while maximizing revenue. We will achieve this by helping to design and implement business models for their individual market situations based on agile and efficient organizations, processes and technology infrastructure. 1.1 Unlocking opportunity Fuelled by the trends above and the growing importance of communities, the Communications Ecosystem Framework created by Nokia Siemens Networks clearly identifies several viable options for the operator's business models. For example, here are some generic business cases and enablers for exploiting opportunities in the future:
  • 3. Copyright 2007 Nokia Siemens Networks. 3/4 All rights reserved. • Focus play: operators concentrate on their core transport business, streamlining their OPEX and CAPEX to become the most efficient network provider • Extended play: Operators expand their own value web by converging their networks and bundling their services. Operators can also outsource relevant aspects of their technology to selected technology partners, focusing their resources on service provision. • Services providers, including virtual service providers, concentrate on service development or aggregation for specific target groups or communities In this world, many operators are assessing their own competitive position and if necessary acquiring new skills or finding partners with these skills. They are considering different strategic positions like the generic cases above, or – aligned with their core value and competencies – they are shaping a unique approach. Insight, innovation, flexibility and delivery are the key ingredients to transform their business. • Insight: Operators are at the heart of media and communications technology convergence. What’s more, convergence is creating shifts in the way that end-users use communications technology. Making profitable decisions in this environment requires deep insight into industry dynamics and evolution, technology and end-user behavior and communities. • Innovation: Having great insight is the first step; turning these ideas into practice requires a solid business case. That is especially true when managing converging business models where a combination of fixed, mobile, cable, TV and content services is bundled together. Continual innovation of business models, technologies and services is the engine of new revenue growth. Even so, sustaining a culture of true innovation is a challenge in today’s ever-changing business environment. • Flexibility: The demands for flexibility are twofold: both to innovate and capture new audiences quickly and to respond with agility to market development and the technology evolution. To succeed here requires end-to-end processes, people and technology that can support day-to-day operations while remaining flexible enough to proactively develop and renew services. • Delivery: The emergence of competitors operating on Internet business models brings this issue into sharp focus. Time to market of new services is important but long-term profitability will always be a function of operational efficiency. Therefore, reducing operating costs, optimizing existing assets and aligning charging and care systems with customer and enterprise processes have become high priorities for operators to make sure that new eco-systems provide a sustainable business model. 1.2 Maximizing opportunity
  • 4. Copyright 2007 Nokia Siemens Networks. 4/4 All rights reserved. As the pace of innovation and the intensity of competition continue to increase, all the players in the industry need to weigh the options and make choices. With our extensive global and local experience and our wealth of technological, demographic, geographic and economic end-user insights, we can help operators meet their unique challenges and capture business opportunities in a transforming business environment. We are uniquely positioned to guide operators profitably through the complexities of what we call their individual ‘business and market ecosystems’. Dozens of operators around the world have already invited us to support the design and implementation of their business and technology strategies. Looking ahead, we have extensive insight into the market dynamics and end-user needs that drive local and global markets. For more information about the unique value that Nokia Siemens Networks brings to operators: • Uniting communities • Business transformation • New revenues • Operational efficiency • New growth markets • IP-centric convergence • Environment • End-to-end expertise