Home > Business Idea, Long-Tail, Open Market > Marketing’s and IT’s loss of power

Marketing’s and IT’s loss of power


In Telco 1.0, “marketing” decides what customers want and “IT/Network operations” will take 12 months to roll out the new service.

In Telco 2.0, the marketing department no longer decides what customers want and IT/Network operations have 3 months to roll out hundreds of new services.

Impossible?  What is Telco 2.0?

Telco 2.0 is the age where Internet technologies and business ideas meet the telecom world. What are these new ideas?

1. The customer is always right

No group of marketing experts is better able to predict what customers want then the customers themselves. In the dotcom world, customers are in control. They get an avelanche of services and options and via other people’s rating, comments and collective intelligence are able to decide what best suits them. Instead of launching one new release every 6 months, dotcoms launch new incremental features on an hourly, daily or weekly basis. Often several alternatives for the customer to pick from. It is the customer that decides what is right for them and what can be killed quickly due to lack of interest.

2. Give the customer control

If the customer knows what they want then they should be able to get it and if it is not available build it themselves. The explosion of Appstore apps shows that different customers like different things. In the next 12 months we will see VAS stores and build your own VAS designers allowing users to build or configure their own value-added services.

3. Allow the customer to make money

Whoever builds a great VAS should also see an abundant reward for it. High revenue shares for innovative thinkers are becoming the trend. Consumers selling solutions to consumers is no longer an exception.

4. Be the enabler instead of the break

Trying to stop innovation is useless. The Skype’s, Google Voice’s, Twilio´s, Tropo´s, Ribbit’s, etc. are unstoppable. Join the enemy and enable people to use your assets. Otherwise they will find ways around your assets, sooner than later. Think about what happened to location-based services…

5. Think Global and Volume

Local solutions are likely to be copied by others. This is a winner takes it all market. Think global. If you are not global, find a global partner and non-competing other operators and join hands. The money is in the volume. With 1M VAS people are likely to communicate more than before.

6. Analog dollars for digital pennies

The “Free economy” is changing more than one existing business model. Don’t think that because in the circuit world you can charge 15 cents/message that in the IP world you can charge the same. The music labels have found out that if you keep on charging a high price, piracy will rule. Does it mean that everything has to be free or losses are guaranteed? No, also not. However history has shown that technology (r)evolutions can destruct a business model without replacing it with an equal lucrative one:  think stamps and emails. The new economic rules dictate that scale and long tail attrack money. Google changed the ad industry from high priced TV ads to low priced adwords. However since they fully automated the process, the scale is enormous and so are the gains. So to be successful in the new telco 2.0 world, you need to offer thousands of services and make money with volume not with individual services. Who better can dominate a world for nano payment then the world leader of micro payments a.k.a. billing and charging.

The new role of marketing

Marketing will no longer be about evaluating which services customers might like and at what price.

Instead the focus will be on finding the right enablers for customers to build and configure the services they want. Afterwards these services can be offered on an open marketplace for others to buy and sell them.

Listen to what customers say on social networks.

Use number crunching on large volumes of data to understand hidden trends.

The new role of IT and operations

A telecom architecture is one of the most complex architectures to explain to non-telecom experts. A new generation of dotcoms are coming up with alternative architectures that separate execution from data and application logic. If you don´t know Google App Engine, take a look how applications are deployed onto a “virtual” application server and data is stored in a “virtual” database. Exactly this concept is what is needed for the next generation of telco services. You deploy telco apps on to a “virtual” service delivery framework, with access to telco assets via APIs and to unified subscriber data in a “virtual” datastore. IT should be the enabler of launching services and not the one that focus on building the services.

Advertisements
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: