The Networked Society is being realized, one just needs to look around to see how connectivity is revolutionizing our lives. The cost of not being part of the Networked Society transformation is significant for businesses which want to stay competitive.
Operators’ strategic intents have to be clearly defined in relation to how they want to be positioned in this transformation. Rima Qureshi, Chief Strategy Officer, talks about how Ericsson sees The role of the operator in the Networked Society.
Rima indicates that operators can be positioned in the market in one of three different segments: network/connectivity providers with the objective of delivering the best performing network capabilities, service enablers who expose their network assets for others to deliver services on top of them or service providers who may decide to provide everything including developing their own content.
Operators in the third segment who opt for being full-scale service providers could face a big strategy challenge to achieve the fit between market demands and internal capabilities of their resource pool. In other words, are they going to be driven by the marketplace and mainly focus on satisfying the basic customer needs? Or do they want to be unique in the market and create demand based on the internal strengths and capabilities of their resources? These two perspectives represent a strategy tension between markets versus resources. This notion of strategy tensions was originally presented by the two leading strategy academicians, Bob de Wit and Ron Meyer.
In order to realize the service provider role transformation, operators may consider combining the two sides of this strategy tension instead of favoring one over the other. An important enabler which addresses both market and resources is the adoption of the cloud Infrastructure as a Service (IaaS) solution. Traditional infrastructure has become a burden on organisations, barely satisfying the customer base needs, slowing the rate of innovation, underutilizing capabilities of internal resources who are tied-up in maintaining the status quo and increasing capital and operational expenditure, Gartner states that operations and infrastructure spending represents 60% of the total IT spending worldwide, the result of all that is an inability to solve the market-resources paradox.
By implementing Ericsson IaaS solution, the markets versus resources strategy tension can be handled. Operators can easily fulfill the market needs when it comes to maintainability of existing infrastructure and also when it comes to deployment of new service offerings. High performance, scalability, flexibility, ease of administration and cost reduction are the main solution benefits that enable the achievement of this target. At the same time, as the organization resources won’t be tied up anymore in operating the infrastructure, the solution enables operators to maximize the value of their resources and get them directly involved in business growth by developing compelling features that create new demand in the market.
At Ericsson, we want our customers to stay at the top of the game. Our Cloud Execution Environment (CEE) offering helps you to capture the IaaS opportunity. Learn more about it here Ericsson Infrastructure as a Service