Continue # Infosys POV 
 from communication  service providers (CSPs) to digital service providers (DSPs). They draw attention to simplified  portfolios, improved customer experiences, a shift to digital channels, and higher NPS as  evidence of success.<|endoftext|>However, when comparing financial performance over the last decade, the telecoms sector falls  far short, as compared to the ‘double-digit’ compound growth rates of hyperscalers, OTT  players, and software-as-a-service (SAAS) platform disrupters.  New operating model | © 2023 Infosys Consulting 10 

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 The case for change and the future of telco The telecom industry’s earlier period of stellar growth depended on three factors:  1. The competitive advantage of owning the underlying network.  2. Regional presence, and cultural affinity with their target customers.<|endoftext|>3. Underserved generation of customers, with limited competition.<|endoftext|>Today, it’s a very different story, as next-generation customers continue to shift spend and  loyalty to whichever brand provides the most utility, experience, and value. On the other hand,  research shows that customers are ready and willing to let telecom providers help them in many  other areas of their life.  Many of these aren’t small, insignificant  areas, nor is this list exhaustive. These are  large addressable markets, with many use  cases, and potential partners. So, why is it  proving so difficult?  Existing telco products infiltrate deeply into  customer’s lives, both work and play. The  largest operators have massive customer  and business scale, an existing platform for  billing, and service management. They also  have a real-time stream of interaction,  content, and location data to mine for  opportunities and enable personalization of  any service launched.<|endoftext|>But, when it comes to building new  businesses, telecom operators have  historically struggled to scale adjacent  business opportunities. A 2021 survey of  telco CXOs highlighted corporate culture as  the overarching problem, with any new  business hampered by:  • Cumbersome corporate processes • A lack of buy-in from senior management  • And pressure for short-term results in a  business where legacy network-margins  create an inertia to take risks Telcos now find themselves at a crossroads.  For the next decade, they can either tweak  their business and operating models to  achieve incremental gains or make the bold  choice to reinvent their value-creation  formula across a larger set of use cases,  and, if possible, over a larger addressable  market.<|endoftext|>New operating model | © 2023 Infosys Consulting 11 

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 The future: An ‘ecosystem orchestrator’ and platform partner The more complex something becomes, the more important it is to simplify. Revenues flow to  those who simplify “the new”. It goes to those who are able to reduce the friction of buying and  using by guiding customers through each stage of their journey – from first recognizing a need to  becoming wedded to a service.  Hyperscalers, OTT, and SAAS players have operated on the edge of this curve for the last 10  years, delivering great value to shareholders. We believe that the next generation of telco must  emulate these traits and embark on an ambitious organizational transformation: New operating model | © 2023 Infosys Consulting 12 Telecom companies need to become the first point of contact for customers when they want  innovation, education, and excellence across a much wider set of use cases. This will require a  significant shift in organizational brain, muscle, and talent.<|endoftext|>1. Partner with a broader set of successful growth companies Leverage and combine the strengths of other partners – many outside the established telco  ecosystem. At the same time, organizations should sprinkle their own differentiation and  creativity into each of the combined solutions they market. Such partnerships provide the  manpower, experience, and laser-focus needed to succeed at a task that would otherwise  be impossible to execute alone.<|endoftext|>2. Adopt and emulate a SAAS-centric growth playbook Transform how you develop and sell products, and the way your people and digital platforms  engage with customers at every stage of the lifecycle. This means continually scanning and  embedding the most successful SAAS strategies and tactics into your operating model.<|endoftext|>3. Transform into an ‘orchestrator of value’ in the connectivity ecosystem  In other words, build the capabilities to operate above this layer of software, service  partners, and global networks. This will require developing into a bi-modal enterprise – one  which knows both when it’s best to ‘own’ the relationship with the customer, and when it’s  not, focusing on making partners successful instead.<|endoftext|>4. Optimize the use of customer and partner data...<|endoftext|>…to target, personalize, and deliver a broader set of value-add services for customers.  Forget “quad-play” and 30+ segments, the future is ‘mega-play’ to every single unique  customer. To achieve this, telcos need to build a scalable, partner-curated set of products  and services. They also need to hyper-personalize the offer and the delivery into the  hands/devices of every individual, household, and community.  5. Consciously reconstruct the enterprise into a use case driven organization This should be equipped with a lean core which provides the scalable, personalized digital  platform and rich database on which to build out their business. At the same time, it should  free the outer ring to aggressively chase products and service-markets which fit within their  curated partner ecosystem.<|endoftext|>

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 In recent years, we’ve seen more and more evidence that telcos can successfully incubate  new products and services, achieving healthy top line growth and M&A activity around these  new service models and business units.<|endoftext|>The future is already being created 13 New operating model | © 2023 Infosys Consulting 

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 Opportunity ahead: Telco for good Emboldened by this success, we  believe that the telecoms industry is  now entering a new phase of  transformation: From DSP to  ecosystem orchestrators. As such,  there’ll be a wave of new products,  service models, and partnerships  across the entire ecosystem, fueled by broader societal change. This is  just the beginning.   Connectivity is the central nervous  system of our society. Industries will  experience unprecedented  technological change in the next 10  years, as AI, 5G, Blockchain,  AR/VR, Web3, and a convergence  of far-reaching technologies take  hold and reshape the way we all live  and work.  Market success for the telecom  industry will rely on many factors,  including the five areas of  transformation mentioned earlier in  the article. Not forgetting, attracting,  and retaining the right partnerships  and talent to transform,  unencumbered by the past.  14 New operating model | © 2023 Infosys Consulting 

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 TELECOMS: WHY TALENT IS THE NEXT FRONTIER FOR  COMPETITIVE ADVANTAGE  Talent for competitive advantage | © 2023 Infosys Consulting The fundamental shift in the telecoms industry from being communication service providers  (CSPs) to becoming ecosystem orchestrators presents an interesting challenge to CHROs. It  requires them to innovate and drive a future-fit HR strategy, acting as key enablers to  successful business evolution and growth.  The ever-changing digital economy and unprecedented levels of disruption have made it  imperative for telecom companies to transform. HR has a critical role to play here, empowering  telcos to deliver the overall vision through people.  Empower growth through talented people Recent Gartner research shows that the workforce is one of the Top 3 priorities for CEOs in  2023. In fact, 50% of HR leaders expect increased talent competition over the next six  months and 46% anticipate attrition will remain high for in-demand roles in 2023.<|endoftext|>The shift to becoming ecosystem orchestrators, the need to adopt an ‘AI first’ vision, and the  drive to maximize B2B market potential have set new skills requirements for the future of  telco. The industry is becoming increasingly attractive to top talent who would like to work for  businesses that foster innovation and digital excellence. However, there is a shortage of  talent and strong market competition for critical future skills and subject matter expertise.  This raises the bar higher for HR leaders to re-imagine the employee value proposition  (EVP) and the end-to-end employee experience. They need to effectively find new ways to  attract and retain talent and harness future skills, while helping facilitate business changes.  As such, it’s essential for HR to evolve towards delivering advanced capabilities and  enhanced AI-enabled digital experiences.  16 

