Why and how should CSPs engage the enterprise market?
Enabling and supporting enterprises in their digital journey represents an important opportunity for revenue growth for the service providers, argues Alon Berman
The enterprise opportunityThrough Covid-19, enterprise digitalization efforts are accelerating, and digital technologies continue to disrupt and transform industries worldwide. According to Ericsson’s report: “5G for business: a 2030 market compass”, the potential of global ICT revenues enabled by 5G, will be up to USD $700 billion in 2030 across 10 industries. With 5G being deployed, service providers increasingly realize the new business opportunities that digital transformation of the enterprise market will bring. According to Ericsson’s report – “Capturing business opportunities beyond mobile broadband”, many global service providers foresee growth opportunities in using 5G to solve enterprise pain points.
Service providers should consider private networks as a key offering to the enterprise market. Private networks are an important enabler for digital transformation for many enterprises, providing the much-needed critical connectivity with the right resilience, reliability, and security. Through the deployment of private networks, service providers will be exposed to other enterprises’ pain points and can be in a position to provide the right solutions. Service providers should aim to take on the role of service and platform enabler providing customers with the platforms to digitize and transform their processes. As technologies, standards and ecosystems evolve and mature, service providers will be able to add new applications by leveraging an ecosystem of partners. By that, they will eventually become an end-to-end service provider with the ability to support more advanced technologies and services.
Service providers that have not yet defined the strategy for approaching targeted enterprises should do so now. According to our report, the most common industries prioritized by service providers are: Transport & Logistics, Manufacturing, Energy and Utilities, and Healthcare.Execution strategies An important tier of the digital strategy is execution strategies, referred to in our framework as “how to win”. Here, service providers might experience major gaps in business, technical and operational capabilities, that are critical to succeed in the enterprise segment beyond mobile broadband. In our report, “Capturing business opportunities beyond mobile broadband”, the five major gaps mentioned are:
- Effective B2B and B2B2X go-to-market
- Leadership and culture
- Industry knowledge of targeted verticals
- Service orchestration, assurance, and automation
Enabling and supporting enterprises in their digital journey represents an important opportunity for revenue growth for the service providers. However, major capabilities gaps might prevent them from taking the right position up in the value chain. We believe that the Israeli CSPs can overcome these complex challenges by adopting a proactive approach to closing these gaps and developing the required capabilities and new skills.Alon Berman is General Manager of Ericsson Israel.