Strategic Innovation Imperatives
Typically 5G discussions evolve around the question what the killer application will be to build a viable 5G business case. However, panel discussions among early mover telcos advocate their view that 5G actually will be foundational for digitalization in the new digital economy.
During the recent Virtual Workshop Enabling New Business Models with 5G, facilitated by Juliet Media, key telco executives stressed challenges and potential of evolving digital business models and emerging 5G value creation ecosystems (further insights).
The collective triumph of 5G will rather hinge on the successful formation of industry ecosystems, as well as the innovation in terms of business models that allow to fully leverage the potential of 5G technology across industry value chains.
Telcos have yet to innovate commercial business models. Currently, much strategic focus is being placed on consumer strategies. However, moving forward much more emphasis will be placed on enterprise B2B2B and B2B2C telco strategies, to be able to exploit the vast potential of commercial 5G revenue streams across commercial value creation ecosystems.
The challenge for telcos to inject value in new digital value creation ecosystems and evolving 5G partnerships is far more complex and requires them to re-invent themselves, not just on a technology and commercial/business model front. It also requires that telcos modernize their current operating and monetization architectures to meet these digital agility requirements and in order to be able capitalize on new backend telco infrastructures.