COLLABORATIVE DATA ECOSYSTEMS: THE "NEW NORMAL" FOR TELCOS - The New Normal for Telco

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COLLABORATIVE DATA ECOSYSTEMS: THE "NEW NORMAL" FOR TELCOS - The New Normal for Telco
COLLABORATIVE DATA
       ECOSYSTEMS:
THE “NEW NORMAL” FOR TELCOS
COLLABORATIVE DATA ECOSYSTEMS: THE "NEW NORMAL" FOR TELCOS - The New Normal for Telco
”Data ecosystems” are becoming essential within the
    business world. A wide range of public and private
    organizations are using and exploiting data to transform
    their business and forge new relationships within their
    value chains and customers. Analysts have estimated that
    the combined value of the data economies of the EU27
    countries alone will grow from €325bn in 2019 to over
    €550bn by 2025, representing 4% of the overall EU GDP1.
    We expect a significant part of that value to originate
    from data sharing, as it enables new products and
    services, faster research and development, and more.

    Capgemini Research Institute found that Telco is the
    sector with the strongest drive towards launching new
    initiatives to engage with the new model.

The telco sector will be primarily launching new data
ecosystem initiatives
Are you planning to increase your organization’s engagement with data ecosystems?
Sector view, multiple selections

                    81%

                                73%

                                               60%
                                                                              53%
                                                                  54%
                                                                                                             49%
       48%
                                                                                       47%   46%                            47%
                                                                        42%                                        45%            45%
                                                                                                                                                                                    40%                        39%
                                                            38%
              36%
                                                                                                                                            37%
                                       27%                                                                                                        28%
                                                                                                                                                                    25%
                                                                                                                                                                           24%
                          19%

                                                                                                                                                                                          8%
          Global

                      Telco

                                  Banking

                                                 Consumer goods

                                                                   Retail

                                                                                Insurance

                                                                                               Energy extraction

                                                                                                                     Utilities

                                                                                                                                    Healthcare

                                                                                                                                                    Industrial machinery

                                                                                                                                                                            Automotive

                                                                                                                                                                                           Government/Public sector

                                            We plan to launch new                                           We are strengthening our
                                            initiatives in future                                           existing initiatives

    Source: Capgemini Data Ecosystem Survey, N=750 organizations, April-May 2021

    Executives increasingly understand that collaborative                                     Within collaborative data ecosystems, Telcos will
    data ecosystems provide a way to move beyond the basic                                    potentially play an important role, leveraging their
    monetization of datasets. These ecosystems leverage the                                   existing capabilities and data assets to create a powerful
    real value of the data being created and collected not                                    new future. After moving into this field with great
    only to improve productivity, but to create new products                                  caution, we believe it’s time for them to address this
    and services, in compelling new business models.                                          opportunity more vigorously.

1
    The European Data Market Monitoring Tool, “Final Study Report,” June 2020.

COLLABORATIVE DATA ECOSYSTEMS: THE “NEW NORMAL” FOR TELCOS                                                                                         ©2022 Capgemini Invent                                             2
The Telco Challenge                                                             First Steps
There is an urgency to this shift.                                              Rethinking the future of telco is more
Telcos are making tremendous                                                    about rethinking the possibilities that
capital expenditures to roll out 5G                                             lie at the intersection of connectivity
mobile networks and faster fiber                                                and data.
optic broadband to serve homes,
offices, and the Internet of Things.
However, connectivity services                                                  Traditionally, Telcos have focused
are becoming more and more                                                      internally on leveraging data derived
commodities and Telcos will be hard-                                            from their customer management
pressed to deliver returns on those                                             systems – as this is a valid
investments.                                                                    starting stage to of building data
                                                                                ecosystems. The real opportunity
                                                                                however, lies in finding ways to use
Meanwhile, players such as Amazon,                                              data to work with collaborators and
Microsoft, and Google have built                                                create new intelligence and insights.
formidable businesses by effectively                                            These become both an asset and an
harnessing the massive amounts of                                               enabler in external data ecosystems,
data they collect and forged a highly                                           for innovative products and services.
profitable business, becoming
effectively the “hyperscalers”
for data in the modern business                                                 As Telcos embrace this ecosystem
world. Telcos, which are sitting on                                             evolution, they can evolve from
unfathomable amounts of data have                                               a place where managing data is
not yet come up with significant                                                perceived just as a business cost, up
business models to spin this raw                                                to a setup where data becomes part
information into gold.                                                          of the business model, if not the
                                                                                business itself.

                                                                           Data is the business
                   DATA ECOSYSTEM DRIVER                                   +$Bs
         4

                   EXTERNAL MARKETPLACES                         Data becomes a
                   & DIGITAL PRODUCTS                            business +$000Ms
         3
                   DATA MONETIZATION                      Data has value
                   & DATA AS AN ASSET                     +$Ms
         2
                                                                                                    MATURITY

                                                   Data increases
                   INTERNAL MARKETPLACE            efficiency +$000s

         1
                                          Data is a business
    STAGES         INTERNAL SILOS         cost -$000s

   The maturity levels Telcos evolve against, as they adopt the data ecosystems model

COLLABORATIVE DATA ECOSYSTEMS: THE “NEW NORMAL” FOR TELCOS                                ©2022 Capgemini Invent   3
Here’s how that                           The technological side of

could happen:                             collaborative data ecosystems is
                                          already quite advanced and widely
                                          available e.g. cloud infrastructure,
1. Understand the new potential           real-time analytics at the Edge,
   spectrum of roles a Telco can          open service platforms with
   play. The models for helping other     micro-service capabilities have all
   sectors unlock value are almost        passed the embryonic stage, ring
   limitless, especially as we move       into any data ecosystem, across
   away from a consumer world into        systems. However, most Telcos (and
   the “Industrial Internet of Things”
                                          businesses in general) still struggle
   where millions of machines
                                          with the complexity to engage in
   exchange data that could be
   leveraged for innovative services.     an “ecosystem approach” from
                                          a business- and partnership model
                                          perspective. Strong partnership
2. Recognize the power of Telco           management is needed, and
   data. It’s an essential part of        the underlying revenue models
   managing mobile networks and
                                          need to be revised from classical
   can be very accurate in terms of
                                          “product sales” to data and
   time and location.
                                          service enablement.

3. Challenge the safety of legacy
   Telco business and operating
   models: Telcos must think              Conclusion
   collaboratively and work closely
   with other sectors such as
                                          Data ecosystems are becoming
   government, insurance, retail, and
                                          the “new normal.” The main
   manufacturing.
                                          challenge for Telcos is the required
                                          transformation of the internal
And this is not a theoretical exercise    models to become “service-
– we already see concrete examples        driven” ecosystem enablers. This
of telco-led collaborative data           transformation cannot be achieved
ecosystems emerging.                      overnight. Telcos must start their
                                          data ecosystem journey now to keep
                                          ahead of the curve.
• Telefónica has already designed
  the first comprehensive smart
  city management solution in             Stay tuned for more insights on
  Spain (e.g. for the City of Valencia)   Collaborative Data Ecosystems in
  that will transform cities into         Telecoms in our upcoming PoV!
  smart, and totally connected
  environment.

• Telia is using its Crowd Insights
  data platform to deliver Travel
  Emission Insights which allow
  city and environmental planners
  to measure and benchmark CO2
  emissions from different routes
  and modes of transport and take
  actions to reduce them.

• O2, via is O2 Motion data
  platform, generates micro-
  location insights so sectors like
  tourism can gain location-based
  insights on visitors to optimize
  experiences, sales, and marketing.

COLLABORATIVE DATA ECOSYSTEMS: THE “NEW NORMAL” FOR TELCOS                        ©2021 Capgemini   4
AUTHORS
About
Capgemini Invent
As the digital innovation, consulting and transformation brand of the
Capgemini Group, Capgemini Invent helps CxOs envision and build what’s          ANSGAR SCHLAUTMANN
next for their organizations. Located in more than 30 offices and 25 creative   Vice President & Head of the
studios around the world, its 7,000+ strong team combines strategy,             Telecommunications, Media
technology, data science and creative design with deep industry expertise       & Technology (TMT) Practice
and insights, to develop new digital solutions and business models of           at Capgemini Invent Germany
the future.

Capgemini Invent is an integral part of Capgemini, a global leader in           ansgar.schlautmann@capgemini.com
partnering with companies to transform and manage their business by
harnessing the power of technology. The Group is guided everyday by its
purpose of unleashing human energy through technology for an inclusive
and sustainable future. It is a responsible and diverse organization of
270,000 team members in nearly 50 countries. With its strong 50 year
heritage and deep industry expertise, Capgemini is trusted by its clients
to address the entire breadth of their business needs, from strategy and
design to operations, fueled by the fast evolving and innovative world of
cloud, data, AI, connectivity, software, digital engineering and platforms.
                                                                                GIANFRANCO CECCONI
The Group reported in 2020 global revenues of €16 billion.
                                                                                Global Lead for Collaborative Data
Get The Future You Want
                                                                                Ecosystems, Capgemini Invent
                                                                                gianfranco.cecconi@capgemini.com
Learn more about us at

www.capgemini.com

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                                                                                           ©2021 Capgemini Invent
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