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The Open Path to New Business Model Creation

November 27, 2007 - 0 Comments

In the past, the typical SP business model was built around the notion of vertical integration -with the assumption that all essential elements of a service were created within the SP organization.However, many believe that the future will likely include a variety of new SP business models — some requiring extensive open collaboration with business partners.Cisco sponsored the recent Telco 2.0 Executive Brainstorm event in London, which was devoted to the topic of new business models for telecoms, media and technology. Cisco’s Ross Fowler was interviewed, during the event. He describes how Cisco’s open innovation strategy will help SPs make the transition to an IP NGN-based experience provider.Why all the fuss about business model evolution? SPs must do more to differentiate themselves in what is becoming an increasingly commoditized market, or risk becoming simple utilities, according to a report released by Strategy Analytics. However, building new business models — and even adapting old ones — has proven to be very difficult.Crafting compelling new business models will depend less on the access technology and more on quality-of-experience capabilities in provider networks. Because almost any IP device can be voice-, video- or data enabled, service providers are becoming “experience providers,” delivering many services to many screens over converged fixed and wireless networks.Finding highly-skilled partners with complementary capabilities is a proven way to accelerate SP go-to-market plans. However, the challenge is isolating the best-fit potential partners for any given service delivery-related requirement. Therefore, the ability to broker between diverse groups of third-parties is highly valued.Active membership in the Cisco Powered Program is one approach that forward-looking SPs can use as a”marketplace” to connect with potential new service delivery partners. The program also incorporates access to a growing list of Cisco marketing and technical resources that can be applied to envision, build, market and sell services that deliver a truly unique customer experience.

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