CSPs and the intelligent back office advantage

5G is here, but it does not guarantee growth for CSPs. When previous network generations transitioned, prices for consumer telecom services remained flat. So, as global CSPs roll out 5G, they’re still compelled to find other routes to growth.

And in the race for 5G profits, CSPs face disruptive challenges by global web-scalers (such as Amazon, Google, Facebook, Alibaba, and Tencent) and other cloud-native companies adept at monetizing networks. These insurgents have extracted the most profits by enhancing lives and solving problems, and they did so largely on the back of investments made by CSPs.

CSPs need to emulate not just the innovative services of cloud natives but also develop in-house business agility.

It’s expected that by 2030, USD 1.5 trillion in new revenues will be earned by Internet Communications Technology (ICT) companies from 5G-enabled products and services sold across just ten industries. USD 700 billion of that value is expected to be addressable by CSPs. Why less than half? One answer is that CSPs cannot innovate and scale new products, services, and business models at the pace of cloud natives, especially the web-scale giants.

CSPs face stiff competition, even for the 5G opportunities in play for them. Their ability to compete for profits is proportionate to their ability to meet rising customer expectations. CSPs need to emulate not just the innovative services of cloud natives, but also develop and exploit in-house business agility. Traditionally, this has been a weakness of CSPs. Overcoming it could be a challenge.

Increasing CSP business agility

Our perspective? A cloud-based, flexible back office— coupled with a culture of innovation—can directly contribute to the agility that CSPs need to succeed in the broader marketplace. Think of exponential technologies such as AI, machine learning, and automation not just as serving the business. Think of them as infusing the business with insights and intelligent workflows. Re-envision finance, human capital, and operations not just as discrete functions, but as reservoirs of business intelligence that, when cross-pollinated, influence outcomes. The back office is not an island unto itself—its functionality, adaptability, and data-generated insights impact the front-end experience, and by extension, CSP growth and competitiveness.

The back office should be an active force informing and enabling decisions and continuous change.

The back office has to move and improve with the business. Instead of executing on the status quo, it should be an active force informing and enabling decisions and continuous change.

To help back office functionalities both keep pace with and inform cutting-edge frontline technology, CSPs should consider a concept we call the Intelligent Operational Platform (IOP). Learn how adopting an IOP can help your organization enhance customer experiences, streamline workflows, and enable strategic growth.