The Insider's Guide to Next-Generation BPM
By Keith Willetts, Chairman and CEO, TM Forum , 06/04/2009
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Back in the old days when telecommunications companies were a monopoly, they were usually the largest enterprise in any country and, naturally, tended to look inwards rather than outwards.
But in the wake of an unprecedented 20-year cycle of deregulation that swept across the globe, these formerly safe monopolies face brutal competition from cable, Web and content players and a value chain that is growing longer and more complicated each day. As a result, service providers have to play well with their business partners in order for them and everyone else to succeed. That's even more important today with an uncertain economy and fickle customers who will churn on a dime.
For today's operator to be able to lower operational costs, get to market faster and innovate new services, they cannot think and act in a vacuum -- they have to seek out synergies across their enterprise and beyond. But now the game is set to change again, as service providers become the enabling engines of the digital economy.
The ability to create a Service Oriented Enterprise (SOE) is an essential step for service providers who want to have flexibility about which aspects they want to run in-house, which to outsource, and which to monetize as part of new enabling services to other providers. SOA is essential to enabling an SOE because it defines a business as a series of building blocks that enable the assembly of a custom set of activities. These building blocks are known as business services, which relate to standard business functions.
These building blocks break down the functions of the complete enterprise into 'Lego' blocks with clearly defined process functions and information. They can be re-arranged, outsourced or made available to external parties at will as the business changes -- it's a fundamental concept in getting greater flexibility into the support infrastructure.
The aim is to come up with a blueprint for the communications and media industries that is a very clear description of how operate a business at least cost, with the highest levels of customer service, as well as a flexible platform for new service innovation. This is the goal of every CIO in every service provider, but to get there they have either have to invest in hundreds of years of staff time and millions of dollars.
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