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Oracle 2020 Predictions: A Decade of Change Ahead for CSPs

VMblog Predictions 2020 

Industry executives and experts share their predictions for 2020.  Read them in this 12th annual VMblog.com series exclusive.

By Jean Lawrence, senior director of product marketing, Oracle

A Decade of Change Ahead for CSPs

As the 2020 decade approaches, it is vital to assess how the communications industry will progress and adapt to new technologies that emerge and challenge existing norms. To thrive in the new decade, communications service providers (CSPs) must embrace 5G, artificial intelligence, machine learning, digital and contextual commerce, and cloud native applications. Successful CSPs will drive new revenue streams and become disruptive forces by providing enhanced, integrated experiences and capitalizing on new 5G-driven business models.

1.       Prediction: Artificial Intelligence (AI) and Machine Learning (ML) will deliver the Experience Economy

How will the communications industry deliver tomorrow's customer experience today? By bringing together network, customer, billing, behavioural and other relevant internal and third party sources of data, this information can be used to tailor interactions with existing customers as well as with unknown prospects. When coupled with AI and ML, such interactions can provide targeted offers and content delivering a dual benefit: helping customers make decisions that benefit themselves, and providing sustained revenue growth for the communications service provider.

2.       Prediction: In 2020, 5G will crash legacy back office systems

The comms industry is in the throes of 5G network upgrades, but have we thought through the impacts to operational systems? Service providers will have many new revenue generating opportunities in areas ranging from Internet of Things-enabled factories to providing powerful real-time connectivity for autonomous vehicles. This will unleash a tsunami of data and partner relationships that will need to be managed and monetized - and most of today's legacy systems will buckle or break under the pressure. Back office systems such as order processing, fulfillment and billing will need to become highly automated and scalable and will require cloud native, DevOps-aligned software that increases their agility and efficiency.

3.       Prediction: 2020 is Whack-a-Mole Time!

2020 will see continued transformation efforts in the customer engagement layer introducing new digital channels and customer journeys - this is just mole #1 in a proverbial game of Whack-a-Mole for CSPs. At the same time, 2020 may herald the year in which the much anticipated 5G networks start to get deployed in earnest, beginning to deliver the benefits at the network layer of agility, scaling and cost factors for which 5G was originally designed - mole #2. However, what about the mushy middle?  You know, those processes, organizations and systems that expose the innovations enabled by the 5G network to the newly digitally engaged end customer. Another mole - #3? 2020 may be the year in which CSPs finally recognize they need to properly modernize their back offices, decoupling what they sell and how they offer it from how they deliver it for business flexibility, simplifying and automating for business velocity and tailoring for business adaptability. Time to finally tackle that third mole!

4.       Prediction: In 2020 CSPs will finally disrupt after years of being disrupted

In recent years the communications industry has seen profit margins erode as Over The Top players and other disrupters have inserted themselves between the CSPs and their customers. 2020 will be the year that CSPs disrupt the disruptors. They will shift from product-centric to customer-centric operations, capitalize on their unique assets and combine those with transformative digital tools that enable them to reach customers and prospects directly with relevant offers, provide omnichannel engagement and purchasing options, and empower customers with the digital tools to manage their services on their terms.

5.       Prediction: Care is the New Commerce

In 2020, service providers will increasingly leverage AI and data to ensure that every "care" experience - whether self-care or agent-assisted care - transforms from a simple Q&A exercise to an opportunity to deepen the customer relationship and propose interesting and personalized services. As today's customers expect context-sensitive interactions, savvy CSPs will use blended care as the best channel for commerce.

6.       Prediction: Cloud Native Applications Will Be the New Normal

Today's Chief Information Officer is faced with the challenges of developing and deploying applications at Internet speed and positioning the business to capitalize on innovative new business models, all while reducing operational costs. These challenges increasingly will be met with cloud native application deployments. IT shops will transform their culture and organizational structure to DevOps models to accelerate the pace of innovation, increase agility, and improve efficiency.

CSPs aiming to win in the new decade need to aggressively cultivate innovative technologies and practices to get ahead of trends that promise to take storm in 2020. By confidently embracing digital transformation opportunities, CSPs can engage with customers as they define their own journeys and enjoy new levels of success through value-driven propositions and partnerships.

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About the Author

Jean Lawrence

Jean Lawrence 

As senior director of product marketing, Jean Lawrence leads the development and execution of strategy, communications, and product launches for Oracle monetization solutions. She helps customers around the world realize the benefits of the digital economy by providing flexible subscription services, strengthening their customer relationships, and achieving recurring revenue streams compliant with financial requirements. In her 21 years of technology and communications industry experience, Jean has held marketing, strategy, and product development leadership positions at Computer Sciences Corporation, Motorola, Alliance Telecom Solutions, and Aerial Communications (now part of T-Mobile). She holds an MBA from the Kellogg School of Management at Northwestern University with concentrations in marketing and strategy, and a Bachelor of Arts from the University of Notre Dame.

Published Monday, January 06, 2020 7:36 AM by David Marshall
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