“Everything that will benefit from being connected will be connected”, that is the core of Ericsson’s Networked Society vision, and it is as simple as that. By 2020, we envisage a hyper-connected world of 50 billion connected devices that will transform peoples’ lives and industries.While businesses can be very eager to be part of the Networked Society journey, their transformation strategy should mainly focus on value creation rather than value capture, the second one would come naturally. Adoption of the most buzzed-about technology trends like Cloud, SDN, NFV and others is necessary, but this is not the end of the story; instead businesses need to perceive these technologies as means and enablers to customer value creation.
Take a look at The 10 hot consumer trends of 2015 identified by our Ericsson ConsumerLab and you will get an idea on how a Networked Society will look like.
So, how to enable this transformation? How can you competitively develop and deliver innovative smartphone-driven services? And more importantly how are you going to work on your customer service requirements? You might be surprised to know that 73% of customers are churning as a result of poor customer service experience Digital Telco Services Lifecycle: Experience-Based Customer Care. Also, according to Tektronix Communications, One of Ericsson’s OSSii partners, poor quality customer care is the main reason for customer churn.
Embarking on Cloud and Virtualization enables the efficient execution of your Idea-to-Launch process; it would also reshape customer service. Here are some thoughts:
Proof of Concepts. If your new technology is addressing pressing concerns like scalability, high availability or usability, the different Cloud service models give you the opportunity to effectively and quickly develop your prototypes and verify them. You can make use of the dynamic and readily available hardware resources and software tools to design, develop and test your service. What if your new service is not performing as expected? Compared to classic IT environment, Cloud can hugely lower sunk costs incurred in development and testing.
Service Delivery. The ease and speed of service delivery won’t be beaten in an environment where your core & services networks are software defined, and here comes the value of NFV & SDN. Embracing these technologies will break the technology and organizational silos which have a severe impact on the time and the quality of today’s service delivery models.
Customer Service. You could develop and deliver state-of-the-art services, but you could easily risk your brand equity and affect business negatively by failing in the customer service side. It is imperative that the likes of self-service portals, personalized video platforms and streetwise metrics should become core parts of your customer service strategy. Fuelled by the power of big data and analytics, cloud and virtualization will enable smooth and powerful customer service models by abstracting the network complexities and providing end-to-end view of customer pain points.
Growth Strategies. Choosing the growth approach has never been riskless. Whether your strategy is to penetrate the market or expand to new segments, a key risk that has to be planned for is the supply-demand matching. With Cloud, this risk has become more manageable. If the number of your service consumers is rapidly increasing, spinning-up extra virtual machines to cater for this increase would be a “piece of cake” job, and that is why Cloud-based strategies have high economic value.
Bottom Line: Being part of the Networked Society journey will pay off only if it is embracing value creation and creating a better society where people and industries are empowered to reach their full potential.