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Accenture B2B Growth in Telecoms POV Fixed PDF
Accenture B2B Growth in Telecoms POV Fixed PDF
communications industry:
FROM NETWORK
TO NET WORTH
Business to Business (B2B) communications
companies have long been dominated by one-to-one
enablement: Users buy a hard bundle of services and
connectivity for a single fee.
This traditional business is being Today, digital natives lead B2B revenue growth1
disintermediated by Over-the-Top (OTT)
players who position communications 50
Telco Median: -0.7%
companies as “just” a connectivity 45
provider within a marketplace of services.
40
The transformation journey we outline in this paper will enable
15
1. Source: Company Reports, Accenture Analysis
Note: B2B penetration implies B2B revenues as a % of total revenues.
For Deutsche Telekom (Germany), Telefonica (Spain), BT (UK), Swisscom 10
(Switzerland), KPN (Netherlands), TIM (Italy), data relates to the home countries.
AT&T Data relates to the FY15-17 for growth and FY17 for penetration to make it fully 5
comparable. Orange revenues are related only to the Business Services segment.
(10) (5) 0 5 10 40 45 50
5G and the Internet of Things (IoT) are among How you organize and change the operating
the technologies set to create a much bigger model in these transformations is as
and broader landscape of enterprise opportunity. fundamental as the choice of technologies.
According to Gartner, “by 2020, 23 percent of the It is the operating model that unlocks the
communications service providers′ (CSP) large
potential of technological investments.
enterprise business communication revenues
will be catalyzed by new digital services such
as cloud, collaboration or IoT (among others),
up from 13 percent in 2017”.2
2. Source: Gartner Market Trends: Why, When and How CSPs Must
Enable Large Enterprises to Adopt Digital Services, January, 2018
1.0 VIABILITY Median: 0.57 VOLATILITY Accenture’s Disruptability Index3 analyzed 3,269
0.9
companies across 20 industries and 98 industry
Software & segments and looked at 15 factors to gauge and
Platforms
0.8 contextualize both the current level of disruption
Current level of disruption
Postal
Services Energy
0.7
High Tech and susceptibility to future disruption.
Infrastructure &
Retail
Transportation
0.6
Media
The results show that disruption can be
Communications Natural Resources
Life Sciences
controlled but companies must constantly
Travel
0.5
Chemicals Banking Median: 0.51 reinvent themselves to improve:
Automotive Utilities
0.4 Consumer Capital
Markets
• Return on fixed assets
Goods & Insurance
0.3
Services • Innovation and Research & Development
Industrial Health
DURABILITY Equipment VULNERABILITY effectiveness to find the future growth potential
0.2
0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 • New and deeper ecosystem partnerships
Susceptibility to future disruption
3. https://www.accenture.com/us-en/insight-leading-new-disruptability-index
industry
connectivity. Revenues are secured from one-to-one service fees.
From a connectivity provider... ... to Connectivity++ ... ... to a connected industry orchestrator.
Connected Fleet
Voice vCPE SD-WAN MEC
Manufacture Mgmt
Connected Insurance
Data PBX WAN Cloud
Health Telematics
Device
MPLS IoT Security Sensors
aaS
Cloud
Connect
1 Evolving the
connectivity provider
Connectivity providers need to get more efficient
at selling basic data, voice and connectivity services,
through innovative cost transformation programs Finding “fuel for growth”
while improving basic network operations. To help our clients make the right decisions on
costs, investment and growth, Accenture partnered
Most communications companies have ongoing cost transformation with Ovum to undertake a cost-benchmarking
programs, but these are mainly about survival—chasing low-hanging assessment of 26 global CSPs. The findings make
fruit like tighter procurement or trimming overhead. By building more it clear that ad-hoc, piecemeal cost-cutting and
competitive cost structures to improve flexibility, they can increase unfocused investment in new areas won’t deliver the
profits and drive up investment capacity. Channeling freed-up turnaround in performance that CSPs are seeking.4
investments toward experimentation and making core offerings
cheaper and better are great starting points to release funding
for reinvestment in a reimagined B2B business.
4. Source: “Fuel for Growth: Harnessing Digital to Cut Costs in the communications Industry”
https://www.accenture.com/us-en/insights/communications-media/how-telcos-harness-digital-for-growth
5. https://www.lightreading.com/artificial-intelligence-machine-learning/
atandt-vp-using-ai-to-hyper-automate-processes-/a/d-id/745229
2 Connectivity++, growing
beyond the core
Connectivity++ is about evolving the core business to a
platform-based model predicated on connectivity, proximity
and trust. Through this platform, communications companies
can launch new services.
When digital experience and data are combined Also, B2B customers want to procure, Fully investing in AI
with the programmability of SD-WAN, users gain manage, monitor and control their cloud and human–machine
the flexibility and agility to serve new demands. computing services seamlessly online but
collaboration can
The result is a unified customer experience that’s often not an option for large enterprises
that enables ubiquitous connectivity, data and working with their communications providers.
boost revenues
analytics, and new products that are controlled There’s an opportunity here to offer streamlined by 46 percent.6
and managed by customers. Communications and fully integrated B2B sales processes,
companies can utilize that knowledge to to enable self-service lifecycle management
understand their customers’ business, then and to introduce predictive, customer-
assemble components into a truly valuable centric assurance.
6. Source: Accenture Reworking the
solution package that enhances the Revolution Future Workforce Research
customer relationship. https://www.accenture.com/us-en/insights/
communications-media/telco-future-workforce
7. https://www.accenture.com/us-en/insights/future-workforce/transforming-learning