Unlike its predecessor 4G, the pathway to monetising 5G is less certain and CSPs must adopt a more cost-effective and iterative approach to introducing new market offerings to find out what resonates with customers and what does not.
The uncertainty surrounding 5G monetisation demands a more exploratory and iterative approach by Communications Service Providers (CSPs). When it comes to introducing new market offerings, CSPs will want to avoid placing big bets on ventures which may inevitably fail. Instead, CSPs must determine through trial and innovation which new 5G services resonate with the market and quickly refine or abandon those which do not.
Achieving this ability to efficiently experiment with new 5G offerings underscores the need for CSPs to break free from the constraints imposed by their legacy Business Support Systems (BSS) and traditional proposition development processes. Specifically, they must be able to break free of the limitations of what is known more commonly in project management as the triple constraint.
Going to market under certainty
The development and launch of new products and services, across sectors, has traditionally been governed by the triple constraint framework which balances time, scope, and resources.
This approach, while effective in a stable and predictable market, becomes a hindrance when more fluid and dynamic working practices are required. The iterative nature required for new 5G service development, and the necessity to quickly adapt to market feedback, to offset uncertainty, calls for a departure from traditional proposition development methodologies. CSPs must embrace a more agile commercial operation model, one that enables rapid ideation, development, and deployment of new services.
This shift toward commercial agility is not just about accelerating time-to-market; it’s about transforming the way CSPs conceptualise and bring their offerings to customers. It involves reimagining processes to be more responsive to customer feedback, adapting quickly to market changes, and continuously refining service offerings.
It is no longer about sinking vast resources into a few broad options; it is more about throwing things at the wall, seeing what sticks, and doing so as quickly and cheaply as possible. For CSPs, this means adopting new strategies and tools that enable them to step outside the rigid boundaries of legacy systems and embrace the flexibility and responsiveness required to succeed in the 5G era. Only then can they fully exploit the potential of 5G, turning its technological promises into commercial successes.
The Triple Constraint Dilemma in 5G Monetisation
The triple constraint, also known as the iron triangle, posits that the quality of work is constrained by a project’s budget and resources, deadlines, and scope. Any change to one of these constraints invariably impacts the other two. While this framework has been instrumental in guiding countless projects to successful completion, it poses significant challenges when the work needs to be more fluid and adaptable.
In the context of proposition development, the triple constraint can bottleneck progress, especially when there’s a pressing need to innovate and move swiftly. A common scenario involves management teams pushing for faster release cycles to keep pace with the market. However, those responsible for delivering the commercial vision frequently find themselves in a bind when requests for additional resources to expedite development are often met with a firm ‘no’, and similarly, any proposal to reduce the scope to meet time constraints is typically rejected. This results in a frustrating impasse where the desire to move faster is continually hampered by the inflexible nature of the triple constraint framework.
This scenario highlights how projects bound by the triple constraint struggle to accommodate the agility and flexibility which will be required when developing new 5G propositions. Therefore, to monetise 5G, CSPs must find a way to frustrate the model and break free of its constraints to embrace a more fluid, responsive approach to service development and deployment.
The solution will be found in modern, cloud-native BSS which equip CSPs with advanced commercial capabilities and automation, allowing for significant legacy processes and ways of working to be overhauled, digitalised, and streamlined.
CSPs attempting to capitalise on 5G with legacy systems and operations in place face considerable challenges. Slow and rigid legacy systems could significantly delay the launch of new 5G services. Given the uncertainty about which offerings will resonate with customers, this approach makes each new 5G venture a high-risk endeavour. Many initial 5G services might not perform as expected, as CSPs search for the right formula for success. Therefore, it’s crucial for CSPs to adopt a more agile, iterative strategy.
Furthermore, adopting a faster, more cost-effective approach to introducing new market offerings means that even if a service doesn’t initially succeed, the relatively low time and financial investment in its market introduction makes it more feasible and less burdensome to adjust and improve based on feedback.
Breaking free of the triple restraint
In summary, the journey to monetising 5G marks a significant departure from the more predictable path of 4G. With 5G’s advanced capabilities and potential, the roadmap for successful monetisation is less clear-cut. Unlike the 4G era, there’s an element of experimentation in identifying which new 5G services will truly resonate with customers. This uncertainty necessitates a shift toward more agile commercial practices and operational models. CSPs must be equipped to rapidly develop and test new 5G services, quickly discerning the successful ventures from the less effective ones.
Crucial to this agile approach is breaking free from the inherent limitations of the triple constraint. To foster this flexibility, CSPs must implement new systems that embrace automation and efficiency, render time and resources as more fluid and adaptable. This evolution is not just a shift in technology but a cultural change towards greater agility, responsiveness and being led by performance data and insights.
Read the second part in the Hansen series ‘Breaking Free of the Triple Constraint to Monetise 5G and Sell Beyond the Connection’ where we explore the benefits CSPs can expect to realise once they have broken free of the triple constraint.
Bruce Williams
Product Marketing Manager
The Hansen Suite for Communications, Technology & Media