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Cloud & Automation: Changing CSPs’ OpEx outlook
Digitization or digital transformation is the most important element of any business evolution. When we use the term “digital” we refer to the term Digital Economy using APIs as a means. People often ask the question, “What is the revenue potential of APIs?” If we look at the numbers below, we will have a clear idea of the major role that APIs play in revenue generation:
Source: Harvard Business Review, Jan 2015
So, what will Digitization do for your business?
We have been helping clients from diversified sectors to become “Digital Lifestyle Providers”. A “Digital Lifestyle Provider” offers a wide range of services that cater around its core business. Let’s take the example of Telcos, and more specifically that of the “connected car”, to highlight the relationship between Telcos and the automobile industry. These cars connect with other devices inside and outside the vehicle, through use of the Internet; users can unlock their cars, check the status of batteries, find the location of the car, or remotely activate the climate control system. Users can also choose to securely share driving data in real-time and purchase value-added services like smart vehicle insurance, emergency services and car maintenance providers.
Figure: Example of Telcos as Lifestyle Providers
Another example would be AT&T, a company which has, in the US, partnered with a white-label smart home provider to offer a service called “AT&T Digital Life”. This IP-based platform allows users to monitor and detect activity throughout the house remotely, and “take action” on devices like PCs, tablets, and smartphones. Here, AT&T saw an opportunity that went beyond selling SIM cards, and offers a value-added service that not only targets customers but also other business customers. So, the model has now changed from a B-to-C to a B-to-B to-C model.
In my next blog, I will share a few more examples of Lifestyle Providers and will discuss more about Digital Business through APIs. Stay tuned!
About the Author
Karthik TS - is the Head of the Centre of Excellence at Torry Harris. His responsibilities include spearheading organization-wide initiatives, and building solution accelerators and automation products such as the API-o-Blocks, for clients world-wide. Karthik focuses on the areas of API/SOA, Cloud Computing, Mobile and Digital Transformation.
Categories : Digital Transformation , Integration
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