E-book - Co-creation: Capturing new value

“...telcos find themselves at a crossroads: they can either tinker around the edges to achieve incremental gains or make a bold choice to reinvent their value-creation formula and bravely, firmly, commit to that choice.”*

One of the biggest changes introduced by the next stage of digital evolution is to the process of innovation itself. Gone are the days when CSPs could simply decide what was best for their customers or craft generic mass-market products. Today’s customers expect outcome-based solutions that meet their needs more precisely, and they expect to be involved in the creation of these solutions.

In response, leading CSPs are embracing an ecosystem approach, with innovation becoming a shared pursuit between partners that results in new value being created. This is commonly called "co-creation".

Taking a co-creation approach is essential if CSPs are to respond more precisely to what their customers need in a fast and agile manner. This response is being enabled by digital platforms that unlock co-created value, and bring together consumers and producers, as well as products and services from a diverse supplier base.

CSPs can provide additional capabilities to these platforms beyond core connectivity, cloud and edge resources and, include orchestration tools, monetization capabilities, CRM and administration tools – thereby establishing a shared marketplace for innovative co-created solutions.

All of this shifts the dial for enterprise customers, changing them from mere consumers of telecoms services to participants in a new business paradigm. Critical to success, will be ensuring that all participants get paid the right amount and on time. But this new paradigm will have considerable impact on enterprise billing, elevating it to a strategic asset that becomes a valuable component of complex service provisioning.

In this report we will look at why co-creation is so important to CSP success, how co-created solutions are built, and the impact this will have on enterprise bills.

* A blueprint for telecom’s critical reinvention, McKinsey

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