A Changing Market, and Many New Opportunities
The Internet of Things (IoT), mobile and cloud computing, social media, big data analytics...these are among the forces driving a global digital revolution. The telecom industry is at the epicenter of this revolution, both shaping and being shaped by a digital transformation that is bringing innovation, market disruption, new growth opportunities, and new challenges to industries worldwide.
In this pivotal role, the telecom industry is striving to meet the world’s burgeoning appetite for network capacity and connectivity while navigating a decline in traditional analog-centered telecom revenues, and growing competition from both traditional and nontraditional information and communication technology (ICT) companies.
Telecom Industry (2016)
Annual Private Sector Broadband Investment in U.S. (2016)
A changing industry: Media and video was less than 10% of traffic in 2010;
now it is almost 50% in 2015.
EY 2015 Global Telecommunications Study
Today, 66 percent of our business is related to software and services.
Just a few years ago it did not look that way, when only hardware mattered.
Hans Vestberg, Ericsson CEO & President
Digital Transformation, Inside & Out
To meet these challenges, innovative carriers, infrastructure companies, and device manufacturers alike are seeking internal transformations that will help them better manage the complexities of competing in the digital world. This includes transformations that can help them navigate the transition from manufacturing hardware-centric products to developing offers that combine hardware, software, and services.
Ericsson, for example, is a company who has made such a transition in just a few years. To support this evolution, the company is undertaking a transformation that includes the adoption of a comprehensive digital business platform to manage product data. This platform enables Ericsson to create and manage complete digital models of complex offers across all business functions, throughout the product lifecycle.
This transformation is crucial to ensure the efficient digital handling of product data throughout the company, making Ericsson a competitive ICT player
Ericsson’s big bang decision to move to 3DEXPERIENCE Platform
Watch this video to learn more about Ericsson’s goal of comprehensive digital transformation, and the reasons they chose Dassault Systèmes’ 3DEXPERIENCE platform to support their journey.
New Competitors & New Opportunities
Another major challenge for the telecom industry is confronting new competitors as the broadband, media and information technology sectors convergence continues. As telecom companies seek to exploit new opportunities made possible by the Internet of Things, the rise of mPayments, 5G networking, cloud computing and other digital evolutions, they are confronting both traditional and non-telecom competitors.
Telco Execs: Customer Experience is #1 Strategic Priority
EY 2015 Global Telecommunications Study
A Focus on Customer Experience
For over two-thirds of telecom executives, succeeding in this highly competitive environment rests on the development of compelling customer experiences, with an emphasis on delivering personalized services, strong customer support, and high network quality.
Achieving these goals requires opening the perimeter of innovation through social ideation and enabling customer requirements to be articulated, understood, captured and validated throughout product and service lifecycles.
See Dassault Systèmes Social Ideation Industry Solution Experience to learn how a collaborative platform can support the upstream innovation process and ensure customer requirements are captured and enforced.
Fujitsu Network Communications Case Study
Download the Fujitsu Network Communications case study to learn how the company is using the 3DEXPERIENCE Platform to support their systems engineering approach by closing the loop between requirements and test management.
Explore Dassault Systèmes Traceable Requirements Management solution for consistently capturing and enforcing customer and market requirements.
In requirements management, we have achieved a 30 percent to 40 percent improvement in management processes, including traceability and reuse of requirements.
Learn how the 3DEXPERIENCE Platform and the High-Tech Operational Excellence Solution supports variant-centered design and other transformations needed to compete in today's rapidly evolving Telecom industry.
The Rise of Modular, Variant-Oriented Design for Configurable Products
Competing successfully on emerging IoT, 5G and cloud opportunities also requires tackling product complexity. Products like mobile devices, ground equipment, satellites, earth stations, and more have always been complex. But this complexity is being heightened by increasing digitization and the need to adapt products to varying local standards and customer demands.
To reduce this complexity and address intense cost and time-to-market pressures, telecom companies are increasingly adopting modular, variant-oriented product development, with modularity applied to hardware, software and service components.
It's an approach that enables building generic, reusable HW/SW structures across product lines and families so products can be adapted more rapidly and affordably.
And, to get the maximum value from this design strategy, telecoms are deploying it across digital infrastructures that can facilitate access to and reuse of all IP (Business, Requirements, Functions, Logical, Tests Rules, etc.) and provide global configuration management and traceability capabilities
Greater Complexity in Production and Sourcing
Beyond product complexity, the use of "Design Anywhere, Manufacture Anywhere" strategies and global sourcing of components and assemblies has also contributed to greater complexity in manufacturing operations and supply chains.
Fortunately, Industrial IoT/Industry 4.0 advances are enabling a new generation of solutions that can help telecom companies optimize global manufacturing operations. Dassault Systèmes' Make to Promise solution, for example, uses new IoT data streams and legacy data sources to provide real-time intelligence on operations within and across plants, distribution centers and warehouses, including subcontractor and supplier operations.