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The Expanding API Economy for Utilities

Insights The Expanding API Economy for Utilities
Hansen News
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Hansen News

The story of Warner Bros. Wyle E. Coyote is a cautionary tale. A self-proclaimed genius, Wyle E. sourced his equipment exclusively from the fictional Acme conglomerate; resulting in spectacular failure, again and again. The undoubtedly enormous expense and repeated injury, typically (and sometimes literally) crushed him by the end of the episode. Meanwhile, the nimble Roadrunner continued to accelerate forward without consequence. Perhaps the manufacturer of quality anvils does not necessarily produce the best catapults or flying bat-suits.

The Expanding API Economy for Utilities

Application Programming Interfaces (API’s) provide a set of procedures that access either features, data, or libraries of a software system. API’s can be leveraged within a software solution; or to integrate multiple applications. Generally, API’s are leveraged across software solutions that require common data or functionality, to avoid redundancy. As an example, a utility may use API’s to integrate their Customer Information System (CIS) with a customer engagement platform and field service / workforce management solutions, as they share common data, including but not limited to:

  • Customer information
  • Premise information
  • Consumption History
  • Billing History
  • Payment History
  • Outstanding Balance
  • Service Call Request / Status

API’s provide a library of efficient and high performing services that can easily be packaged and re-purposed to support other points of integration and are superior to traditional approaches such as heavily customised integrations using custom code, flat files / XML.

Best of Breed vs. One-Stop-Shop

The emergence of API’s, supporting streamlined integration among otherwise disparate software solutions, have changed the dynamics of software choices for energy and water utilities. API’s allow “Best of Breed” systems to be implemented and well-integrated, undermining the “One Stop Shop” approach that previously pervaded software selection criteria.  Best of Breed delivers a more flexible, scalable, cost effective and high performing portfolio of applications within a utility’s enterprise software portfolio.

API’s are not new to solution integration in the utilities industry, but standardisation among the API economy is ever expanding.  Desiring a single vendor to satisfy needs across a utilities multiple organisations and business functions is no longer necessary and often is not compelling. API’s facilitate sharing of common data and accessing relevant functional capabilities, which allows for a utility to choose the options that are best suited to the needs of each business unit and requirement in the organisation.

The utility industry is evolving quickly in the advent of utility digitalisation and evolving technology such as, AMI, MDMS, DER, smart grid, interval data, ToD, conservation, customer engagement and self-service, Artificial Intelligence and IoT, to name a few. All require innovative and complex technologies that must leverage deep domain knowledge. It would be imprudent not to evaluate each service based on the merits of the application and fit for purpose.

Extended Value of API’s

API’s facilitate easier transition to alternative solutions and upgrades, as cumbersome flat files and customised integrations are minimised. As a result, the platform provides scalability and lowers the barriers to introduce new technologies and solutions and thus adapt over time to avoid obsolescence. If a software provider fails to meet expectations, a component can be replaced without disrupting the entire enterprise software environment. API’s, as a component of a base solution, simplify and accelerate software implementations and subsequent upgrades.

In addition, API’s Facilitate partnerships and coordination among Best of Breed software providers. These relationships provide potential to lower costs, drive innovation, improve performance and provide an enhanced user experience by enabling automation and reducing cumbersome and time-consuming manual tasks. Motivated partners also reduce development costs, sharing the effort of API alignment and validation.

Perhaps a one-stop-shop to do all or have redundant modules, might not be the best solution for evolving utilities like with Wyle E. Coyote in the tale above. The API economy will continue to expand, as new digital products and services are required to address both disruptive and enabling technology; manage infrastructure; assure system integrity; and satisfy customer self-service expectations through multi-channel platforms. Modernised integrations are paramount to assuring harmony among a portfolio of purpose-focused, Best of Breed applications, allowing utilities to take their big data to the next level.

1. What does “modernise with precision” mean for Tier-1 telecom operators?

“Modernise with precision” describes a low-risk, targeted approach to BSS/OSS modernisation where operators upgrade only the parts of their digital stack that create the greatest impact. Instead of embarking on high-risk, multi-year full-stack replacements, Tier-1 telcos selectively introduce cloud-native BSS/OSS, API-driven telecom architecture, AI-ready data layers, and TMF-compliant BSS components.
This modular strategy reduces cost and disruption, allowing operators to strengthen areas such as product agility, order orchestration, customer experience, and operational efficiency while maintaining stability in core environments. It aligns directly with TM Forum’s Open Digital Architecture (ODA), which encourages a composable, interoperable, future-proof approach to telco transformation.

2. Why is time-to-market so important for telecom monetisation today?

Telecom monetisation increasingly depends on the ability to respond quickly to new commercial opportunities – from enterprise IoT solutions and digital services to 5G monetisation, wholesale partnerships, and B2B vertical offerings. In this environment, operators that can design, package, and activate new services in days rather than months gain a clear revenue advantage.
Legacy catalogues, rigid product hierarchies, and tightly coupled BSS architectures make rapid innovation difficult. Modern operators therefore prioritise catalog-driven architecture, agile/composable BSS, and cloud-native BSS capabilities to give business teams control over offer creation without relying on long IT delivery cycles. Faster launch cycles = faster monetisation.

 

3. What is slowing down product launch cycles for many telcos?

The primary obstacles are deeply entrenched in legacy architecture: hard-coded product models, outdated catalogues, nonstandard integrations, and heavy IT dependencies. These constraints slow down even minor product changes, creating friction between commercial teams and IT.
Modern telcos are replacing these bottlenecks with TMF-compliant BSS, cloud-native catalogues, API-driven BSS integrated via TMF Open APIs, and low/no-code configuration tools. These solutions allow product owners to create and test offers independently, ensuring the Digital BSS backbone supports true agility.

4. How can telecom operators reduce order fallout and manual intervention?

Order fallout typically stems from fragmented systems, inconsistent data models, and brittle custom integrations across BSS/OSS chains. When orchestration spans numerous legacy systems, even small discrepancies can cause orders to fail.
Operators can dramatically reduce fallout rates by adopting zero-touch service orchestration, modern order management modernisation, end-to-end automation, and a unified data model across their Digital OSS and Digital BSS layers. Cloud-native telecom systems and order orchestration for telecom remove reliance on manual rework, minimise delays, and improve service accuracy – all essential to delivering predictable customer experiences.

5. Why is accuracy so important for B2B and wholesale customer experience?

For enterprise and wholesale customers, trust is built on precision. A single misquote, incorrect configuration, or missed activation can lead to delays, SLA breaches, revenue disputes, and strained relationships. These segments rely on highly controlled, predictable fulfilment processes – particularly as operators expand into 5G edge services, network slicing, managed security, and outcome-based contracts.
Improving accuracy requires strengthening the underlying architecture – through modern CPQ for telecom, clean data models, cloud-native BSS/OSS, and robust API-driven telecom architecture. When quoting, ordering, provisioning, and billing are accurate, customer satisfaction increases naturally.

6. How does cloud, AI, and API-driven architecture support telecom modernisation?

Cloud-native platforms provide the scalability, flexibility, and deployment speed needed to support modern telecom services. AI introduces intelligence into operations, enabling predictive analytics, anomaly detection, and proactive assurance. APIs – especially TMF Open APIs – ensure new components integrate cleanly with legacy systems.
Together, AI-powered BSS/OSS, cloud-native architecture, and API-driven integration create a digital foundation that supports continuous innovation, reduces technical debt, and enables operators to deliver new services more efficiently. This trio is central to future-proofing the telco stack.

7. What is TM Forum’s Open Digital Architecture (ODA) and why does it matter?

TM Forum’s Open Digital Architecture (ODA) is an industry-standard framework designed to help telcos simplify, modularise, and modernise their BSS/OSS environments. ODA promotes interoperability, composability, and openness so operators can integrate new capabilities without heavy customisation or vendor lock-in.
For Tier-1 operators, ODA serves as a blueprint for transitioning from monolithic legacy stacks to cloud-native, API-driven, modular BSS/OSS infrastructure. By adopting ODA-aligned solutions, operators speed up integration, lower deployment risk, and reduce long-term operational cost.

8. How is Hansen involved in TM Forum and ODA?

Hansen aligns its architecture directly to TM Forum’s ODA principles and has contributed to the development of one of TM Forum’s recognised industry standards. This reinforces a commitment not just to following best practices, but to shaping them.
Hansen’s portfolio of cloud-native, AI-powered, API-driven Digital BSS/OSS modules is built on TMF Open APIs and composable design principles. This ensures seamless interoperability in multivendor environments and helps operators modernise safely and incrementally.

9. Can operators modernise their BSS/OSS without a full-stack replacement?

Yes – and in fact, most Tier-1 operators now prefer incremental transformation. Full-stack replacement is high risk, slow, and expensive. By contrast, modular modernisation allows operators to introduce new BSS/OSS capabilities – catalogues, orchestration layers, charging engines, customer management, monetisation components – without destabilising the existing ecosystem.
This approach reduces risk, accelerates value, and aligns with ODA’s principles of composability and openness. Operators can modernise at their own pace while still maintaining service continuity.

10. How does modular modernisation reduce risk?

Modular transformation focuses on improving specific parts of the architecture – such as product agility, order accuracy, unified data, or 5G monetisation – without changing everything at once. Each module is integrated, tested, and scaled independently, which reduces disruption and improves predictability.
It also allows operators to retire legacy systems gradually, reducing technical debt over time while still realising near-term efficiency and revenue gains. This is why agile/composable BSS is now the preferred model for Tier-1 telecom transformation.

11. What operational improvements can telcos expect from a unified data model?

A unified, AI-ready data model brings real-time visibility across commercial and operational processes, enabling faster decision-making and more reliable service execution. It also allows operators to detect issues earlier, automate root cause analysis, and reduce order fallout.
This consistent data foundation is essential for AI-powered BSS/OSS, predictive assurance, next-best-action recommendations, and advanced analytics. It ultimately improves operational efficiency, accuracy, and customer experience – three core pillars of modern telecom performance.

12. Why is Customer Experience (CX) tightly linked to operational excellence?

Most customer experience problems – delays, incorrect orders, billing errors, missed SLAs – originate from inefficiencies within the internal BSS/OSS engine. When operators modernise their Digital BSS/OSS processes, eliminate manual workarounds, and ensure accurate orchestration and service activation, the customer experience improves naturally.
This is particularly true for enterprise and wholesale customers, where CX is defined by precision, predictability, and contract performance. Improving CX requires improving the processes beneath it.

13. How do Hansen’s solutions fit into a Tier-1 telco transformation strategy?

Hansen provides cloud-native, API-driven, TMF-compliant, AI-powered Digital BSS/OSS modules that integrate smoothly into hybrid and legacy environments. Operators can use them to strengthen catalog agility, automate order flows, unify data, enhance monetisation, or improve service reliability – without needing to replace their entire BSS/OSS stack.
This flexibility supports transformation at the operator’s own pace, aligned to business priorities, regulatory requirements, and commercial objectives.

14. What benefits can operators expect from a layered or hybrid modernisation approach?

A layered or hybrid approach allows operators to combine existing systems with cloud-native components, enabling transformation without disruption. Key benefits include:
• Faster time-to-market for new offers
• Improved order accuracy and reduced fallout
• Lower cost-to-serve through automation
• Stronger customer experience
• Gradual reduction of technical debt
• Alignment with ODA and modular architecture principles
This approach balances stability with innovation – ideal for Tier-1 operators.

15. How do industry standards such as ODA accelerate telecom digital transformation?

Industry standards like TM Forum ODA and TMF Open APIs reduce integration complexity, promote interoperability, and give operators a trusted blueprint for modernisation. They ensure that new BSS/OSS components can plug into existing environments without custom engineering.
By reducing dependence on bespoke integrations and enabling modular deployment, standards significantly lower long-term cost and accelerate transformation across the business. They also future proof the architecture for new technologies, including AI, automation, and 5G service innovation.


 
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