Businesses across industries today cannot stay in business if they simply maintain the status quo. Network operators in particular must innovate to keep pace with user expectations for services and quality.
To satisfy the ever-growing demand for high-bandwidth content and enhanced services, service providers today must evolve not only their networks but also their business models. To increase profit margins and bolster bottom lines while continuing to meet customer expectations - and while contending with a variable, often unpredictable global economic environment.
Examples of this can be found in crossover competitors such as Google, Yahoo and MSN. Each has been quick to take advantage of media convergence and non-traditional business models to get their piece of an increasing market share. Incumbent service providers need to provide the value their customers are seeking - namely, a rich communications experience.
Alcatel-Lucent has developed a cost-transformation model to help service providers understand the new economics of their businesses and derive the greatest value from their networks.
Alcatel-Lucent's model for cost transformation involves three main areas of focus:
• Architecting based on a High Leverage Network vision;
• Achieving non-linear cost reductions; and
• Making strategic investments.
In an environment where the traditional network operator has truly become a "service provider," the focus of decision-making is shifting from operations to finance, ultimately to encompass the total strategic view of the business.
