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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Original Message:
Sent: 04-25-2017 15:58
From: Melanie DiGeorge
Subject: From pipes to platforms: Leveraging the network effect
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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