January 11, 2018

Assessing the State of Digital Transformation

Service providers have come a long way in terms of digitalization, but there's still work ahead before they can fully benefit from transformation programs.

Traditional service providers are making significant progress toward becoming digital service providers (DSPs), but there's still work to do before they can generate new revenue from their transformation programs. In the white paper "Making Strides in Digital Transformation," Netcracker and ICT intuition reviewed the current state of digital transformation initiatives, digitalization's primary obstacles and Netcracker's approach to becoming a DSP.

Service providers worldwide have realized the need to transform into DSPs. This point is validated in a 2017 survey of service provider executives conducted by ICT intuition on behalf of Netcracker, which revealed that 80 percent of service providers have either developed a business-wide transformation strategy or are in the process of completing one. This is in stark contrast to the same study conducted in 2015, which found that 39 percent of service providers were uncertain about the importance of digitalization. This shift in mentality and priorities reveals that service providers are taking digital transformation seriously.

Service providers are upgrading their technology with hopes of accelerating time-to-market for next-gen digital services, which is among the top priorities for many that are pursuing transformation. Enabling modernized service delivery methods is crucial for service providers, as adopting this technology is a necessary step toward bringing new offerings to market faster.

Despite their progress and increased focus surrounding digital transformation, service providers are having trouble making money from their digitalization programs. In fact, ICT intuition's research found that only 33 percent of today's service providers are making money from their transformation efforts at this point, which reflects relatively limited progress toward the industry's ultimate goal for digital transformation. The primary obstacle to monetizing these initiatives is overcoming the business risk associated with transforming legacy service delivery processes. For example, many service providers do not have the skills in place to support and deploy digital services. To overcome these challenges, service providers need to work with a strategic partner that has experience in enabling large-scale transformations across operational, technological and organizational domains.

With a focus on equipping service providers with the skills and tools they need to operate as digital service providers, Netcracker can act as a strategic partner in enabling critical digitalization programs. Netcracker's proven expertise and unmatched delivery track record has led many service providers around the world to put their trust in Netcracker while coming around to the idea of digital transformation.

Download the white paper for a deeper look into the current state of digital transformation across the communications industry, as well as how Netcracker helps service providers become DSPs.


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