Industry Impact - The Telecom Operations Value Chain

HfS is expanding its industry coverage in 2018 to include detailed IT and business process research on 11 core sectors, powered by extensive buyer research with Global 2000 firms. The transformation and challenges posed by digital disruption and changing competitive environments differ by industry. Subsequently, the solutions and services enterprises in different industries need to cope with change and to shape transformation journeys differ as well. Over the past few years, HfS has created in-depth industry research coverage that focuses on the rapidly changing needs of buyers and the ability of service providers to meet these needs with services built on domain expertise, industry talent, intellectual property, solutions that tackle sticky industry problems, and investments in industry-specific practices, startup ecosystems, and partnerships. We will build on this foundation in 2018, bringing expanded industry coverage, focused on key industry-specific processes and change agents, updated annually.  Our coverage sectors include:

Exhibit 1: HfS Industry Coverage 2018

Source: HfS Research, 2018

In order to give you a taste of what to expect for research in the telecommunications sector, this Point of View report previews our telecom-specific value chain and the in-scope processes and change agents we’ll be examining throughout 2018. We will release telecom-focused Blueprint Spotlight reports in Q2 on business process services and in Q4 on IT services; these will be supplemented by periodic voice of the customer case studies, point of view analyses on change agents, and buy-side research. For more insight into our master research agenda for 2018, please refer to our  report on planned blueprint research.

The Telecom Operations Value Chain

HfS developed the industry value chain concept to graphically depict our understanding of the processes and functions that specific industries engage in to operate their businesses. To truly understand the services needs of an industry, you must understand its industry-specific and horizontal processes and the relevant change agents enabling transformation. 

The industry value chain for telecom operations provides a comprehensive overview of services for the telecommunications industry focused on wireline, wireless, and cable and satellite segments. We’ll be including these telecom sub-sector elements in our Global 2000 survey research this year, which will help us gain a more granular understanding of buyer behavior.

Telecom Industry-Specific Processes

Industry-specific processes include the following specific value chain functions:

• Network services—Processes focused on building, roll-out, operations, and optimization of physical networks for wireline, wireless, and cable and satellite networks;
  
  
• Fulfillment—Processes governing the order and provisioning of telecom products and services;
  
  
• Maintenance and support—Provision of proactive and reactive assurance services to ensure availability of telecom products and services;
  
  
• Billing and payments—Processes focused on the collection, production, audit, delivery, support, and processing of bills and payments for telecom products and services.

Our research will evaluate the depth and breadth of service providers offering telecom-specific services in these categories and the impact of critical change agents such as Internet of Things (IoT) and intelligent automation.

Horizontal IT and Business Processes

Enterprises in all sectors have a range of consistent business and IT processes that are essential to running their businesses but are executed similarly regardless of industry. We refer to these as horizontal processes and have segmented them by IT and business functions as outlined in Exhibit 2. Horizontal business processes include elements such as customer engagement and HR. IT processes include functions such as application development and maintenance and infrastructure management. Our industry-specific coverage of these areas will focus on instances where something unique has been developed for the telecom industry, such as cloud-based OSS/BSS services, IoT-based spare parts management, or cognitive agents supporting B2B technical support. In addition to industry coverage of these horizontal topics, they will also be well covered as part of our functional research dimension.

Enabling Technologies

Lastly, but of vast importance, we have included a value chain section dedicated to enabling technologies, depicted in Exhibit 2. As core telecom communication services revenue continues to decline, these change agents are critical to optimizing operations and even enabling new revenue streams. They include elements such as RPA and AI, IoT, and smart analytics. We view them as horizontal as they can be used across telecom enterprises and leveraged for both horizontal and industry-specific processes. Our research on these topics will focus on how they are being utilized within telecom firms, which service providers are bringing them to the table, and what real business impact is being realized.

Exhibit 2: The Telecom Business Operations Value Chain

Source: HfS Research, 2018

Bottom Line: Enhanced Telecom Research to Help Make an Impact

As we dive into 2018, HfS’ enhanced research coverage of major business operations trends by industry will help identify and articulate business impact in motion. Our coverage of the telecom sector will examine core value chain processes across industry-specific and horizontal functions with an emphasis on the impact of critical change agents.