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  • 1.  From pipes to platforms: Leveraging the network effect

    TM Forum Member
    Posted Apr 25, 2017 15:58
    Edited by Community Manager Jul 27, 2017 15:21

    In the past decade, we've seen companies such as Apple, Amazon, and Facebook dominate as a few of the world's biggest companies by market capitalization. As platform-based businesses, these companies rely less on the "supply chain" model and more on network effects. As Annie Turner states in this article, the more people on the network = the more valuable the business = the more effective the company/network is.

    The pipeline model used so commonly in the past focuses on supply chain: raw materials to production, production to assembly, and assembly to distribution. This requires more staff and resources, and yields less profitable margin. The leading companies today have adopted a more "triangular platform", as Professor Geoffrey G. Parker calls it, where "the platform provides a marketplace for interchanges between producers and consumers" and "removes pain points for both and enables all kinds of companies to create new services and value."

    So, who can run a successful platform business? Parker says that if a firm can use information or community to add value to its product, then there is potential for success with creating a platform.

    I'm interested in your thoughts - can telcos successfully operate like this? What do you think are the benefits and challenges of adopting this triangular platform versus the traditional linear pipeline?



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    Melanie DiGeorge
    Community Manager
    TM Forum
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  • 2.  RE: From pipes to platforms: Leveraging the network effect

    Posted Apr 25, 2017 18:30

    So, I believe telcos must first evolve internally, change their DNA of slow process and burocratic thinking, and move towards an agile and fast acting company. Turn from being just a downpipe of data and become a content generator monster.

    First move is to transform and become into something I call digital intrinsicus, which means change from the inside, invest in the company´s nerves and change platforms, processes, government and become flexible.

    Second move is to survive from legacy products while investing in startup alike projects, mainly content. Because content is king and user base is queen, and telcos have the users.

    So, in order to squeeze the juice of its network, a telco must learn to create symbiotic models that brings incremental revenues instead of cannibalistic effects.

    Cheers!



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    Alejandro Amorin

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  • 3.  RE: From pipes to platforms: Leveraging the network effect

    TM Forum Member
    Posted Apr 26, 2017 11:47
    I’ve been a proponent of platform business models since before anyone would pay attention. But in fairness, there are places within a “carrier” where a pipeline approach is required. These tend to be closer to the network whereas the platform is more appropriate nearer the service delivery end of the spectrum.

    Could a CSP take a platform approach to their network? Probably. But before we all get high on the virtualization buds, we can’t lose sight of the fact that in all of this transformation, someone somewhere has to actually build and manage a network (or a data center for that matter). You might outsource it, use partners, leverage someone’s platform of what have you but somewhere - there are actual wires (or RF signals) connected to real bits of hardware and software that make it all work. And to build a network, require buying kit, installing it, testing it and then operating it which is pretty much a supply chain job.

    My 2p

    Jim




  • 4.  RE: From pipes to platforms: Leveraging the network effect

    TM Forum Member
    Posted Apr 27, 2017 01:28
    CSPs are indeed taking a platform approach to their network. Linux Foundation's ONAP stands the testimony. For a CSP to transform itself in to a digital enterprise; it's network has to be elastic, agile and behave like a platform for effective collaboration across industry value chain like partners, erstwhile competitors et' all.

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    regards,
    Dhananjay Pavgi
    Tech Mahindra Limited
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  • 5.  RE: From pipes to platforms: Leveraging the network effect

    TM Forum Member
    Posted Apr 27, 2017 02:26

    Dear all,

    As I think telecom companies those provide service to plat form user  and potential to use plat from effectively and opportunities to change in business since all resource have on hand telecom companies.

    Only it is need to customize with business concept.

     

     

    Best regard

    Kidanu Mulugeta
     Training Specialist  (RSS)

     ethio telecom

     Tel :Mobile: +251(0) 911527482

     e-mail:kidanu.mulugeta@ethiotelecom.et

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  • 6.  RE: From pipes to platforms: Leveraging the network effect

    TM Forum Member
    Posted Apr 27, 2017 01:34

    Already very much in the making, and as we go through the next few years, I suppose we can see an increasing evolution of Telcos from Pipes to Platforms. It is not something that Telcos will have a choice, but basically it will be a mode of survival in the ecosystem which is changing the way businesses are conceptualized, developed, run and expanded.

     

    Our views are: An average Telco may still continue to be a product and services oriented company, but at least it will change its face. For example:  the 'best effort connectivity' may give way to 'managed connectivity' - leveraging upon NVF/SDN technologies. Telcos going forward will even become digital lifestyle partners – offering everything from e-commerce to infotainment to mobile-wallets. However, the ultimate evolution can be seen in terms of Telcos opening up their assets (infrastructure, network, data and services) in an attempt to become 'Enablers of newer businesses and services.' than 'Providers of a fixed set of products and services'. Increased profitability and an organic source of prosumer driven innovation being the main drivers. Thus, the Telco ecosystem should quickly expand as a platform for both B2C and B2B scenarios like what we have seen in the 'born-in-internet' companies like Google, Amazon and others. Communication Services, Digital Enablement and IoT  seem to be the best bets, with the whole offering being exposed in an 'as a Service' model.

     

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    Saurabh Gupta

    Huawei Technologies Co.Ltd.