Do we understand the meaning of convergence?

The communications industry is rife with vendors promoting their convergent systems. Technology aligned, all working smoothly, hand in hand. But is this so commonly used word, convergent, merely a buzzword?

Converge is defined as to ‘come together from different directions so as eventually meet.’ So do the systems that are implement into communications providers operations really converge with the existing systems in place? Or is the truth that they simply run in parallel?

I don’t think we should trivialise the importance of convergence here. Creating the competitive differentiation that a converged system allows is in every operator’s best interest. Convergence enables a joined up approach to customer service, more efficient call handling, and minimising billing and order errors.

But very few operators’ systems are really convergent. Many are ‘window dressed’. New systems on top of old, trying to disguise the disorganisation underneath. But the systems only work in parallel and are not often integrated. This can be beneficial in the short-term and helps speed up processes, but as more technologies and services are added complications will become apparent.

The long-term objective should be to converge all BSS systems. This will limit the support needs and issues faced by IT teams, as well as providing a wealth of knowledge to marketing and customer support teams, so service can be enhanced.

Systems must ‘come together from different directions so as eventually meet’ in order to stay competitive in this dynamic communications industry.

To read more about operator convergent strategy, read CoralTree’s latest Insight report: “Convergent strategy or conflicting goals?” by visiting our website: www.coraltreesystems.com/insights-papers

This blog was written by Natasha Geldard, Head of Marketing, CoralTree

CTO vs. CFO – focusing on company prosperity

The goals of the communications providers’ CTO and CFO are driving further apart. Both are committed to do what’s best for long-term business prosperity, but their strategies are far from converged.

In this face-paced sector communications operators have to innovate, to offer the latest services and packages to customers, in order to stay competitive. The CTO is under constant pressure from the business to ensure that the systems are in place for dynamic packages to be marketed, fulfilled, and billed. With many BSS systems dated, this requires investment to upgrade to next generation support systems.

In contrast, the CFO focuses on ensuring profitability and demands in fiscal year returns for any large investments made. The CFO role is to demonstrate to owners, shareholders, or the market, that the business is doing well. In simple terms, growing and making more money than it is spending.

Yet some CFOs are acknowledging this strategic problem. Industry news title, Global Telecoms Business published in an article that interviewed top global telecommunications CFOs in February 2014. Tom Fitzpatrick, CFO of satellite operator Iridium, was quoted saying: “The short-term earnings bias of Wall Street in the evaluation of results proves difficult in that many compelling long-term initiatives are not undertaken in the face of this short-term bias.”.

Many BSS out-of-date

The issue is that many BSS systems in place are so dated that they are unable to cope with next generation technologies and services. Quick fixes will not last for long and will not be able to keep up with the fast pace of change. In the long run, this will cost the operator more money than upfront investment in a long-term solution.

To stay competitive, it is crucial for the CTO and CFO strategies to be converged. Alignment must be made to support the business with advanced IT, creating long-term efficiency and cost-savings.

To read more about operator convergent strategy, read CoralTree’s latest Insight report: “Convergent strategy or conflicting goals?” by visiting our website: www.coraltreesystems.com/insights-papers

This blog was written by Natasha Geldard, Head of Marketing, CoralTree