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1、innovation:the future for telecoms R&DREPORTin search ofTM Forum|July 2024Sponsored by:Author:Ed Finegold,Contributing AnalystEditor:Ian Kemp,Managing Editor July 2024|www.tmforum.orgAuthor:Ed Finegold,Contributing AnalystEditor:Ian Kemp,Managing Editorcontents03 the big picture07 section 1:what hap
2、pened to telco R&D?11 section 2:the challenges for telcos15 section 3:CSPs and techcos revisit R&D 20 section 4:whats the future for telco R&D?24 section 5:make it happen recapturing the primary benefits of R&D 27 additional resourcesWe hope you enjoy the report and,most importantly,find ways to use
3、 the ideas,concepts and recommendations detailed within.You can send your feedback to the editorial team at TM Forum via editortmforum.orgbigpicturethe3inform.tmforum.orgTM Forum research shows that on average CSPs spend far less on R&D as a percentage of revenue than do their key suppliers,on which
4、 they increasingly rely for innovation.These vendors,in turn,spend a slightly smaller percentage of their revenue on R&D on average than do the leaders in the hyperscale community.Where,on average,Amazon,Google and Microsoft spent for R&D at a rate equal to 19.4%of their revenue in 2023,the average
5、among 10 major CSPs that operate throughout Asia,Europe,Africa and Latin America was just 1.3%,with none exceeding 2.8%(graphics right and on page 5).Major equipment suppliers including Ericsson,Huawei,Nokia and ZTE,however,spend at an equivalent level to the hyperscalers.Notably,Huawei led this gro
6、up in 2023,expending nearly one quarter(23.4%)of its revenue on R&D(see graphic on p.6).“This high level of spend among the biggest vendors makes clear that telecom continues to rely heavily on big R&D budgets from the NEPs network equipment providers,even if most R&D spend is concentrated on softwa
7、re functions,not equipment,”says Matt Walker,founder and Chief Analyst at MTN Consulting.Research and development is not the trailblazing discipline it once was.Where telco R&D specialists like Bell Labs once led the world in innovation,todays contribution from operators is much smaller.Indeed,after
8、 more than two decades of re-organizations,spinoffs and outsourcing deals,most communications service providers(CSPs)hardly spend on anything labeled R&D at all.4inform.tmforum.orgselected hyperscalersR&D spend as%of total revenue15.9%19.4%22.0%20.4%Average R&D spend as%of total revenueTM Forum,2024
9、(sources:MTN Consulting;full-year 2023 financial reports)5inform.tmforum.orgWalkers point about software functions is key and reflects the fact that the shape and size of operator R&D is beginning to change.CSPs evolving into techcos have begun to display a new sort of collaborative R&D focused on u
10、sing software development to create business value that leverages their suppliers investments in componentized products.Though budgeting for R&D,in a formal sense,was effectively erased and outsourced to the vendor community in the decades following telecoms deregulation and divestiture,the spirit o
11、f R&D may be returning as CSPs bring new software development skills and initiatives in-house.Such efforts are now being buoyed by industry-wide investments in standardization,componentization and collaboration.R&D now heavier on the“D”Today,R&D is re-emerging in the form of“small-R,big-D”,suggests
12、Ibrahim Gedeon,CTO Emeritus at Telus.Several industry innovators including Vodafone,Jio and Rakuten Symphony which we profile in section 3 as well as TM Forum are showing what the future of telco R&D may look like in the form of software development that is focused on creating long-term business val
13、ue.selected CSPsR&D spend as%of total revenue2.1%1.3%Average R&D spend as%of total revenueTM Forum,2024(sources:MTN Consulting;full-year 2023 financial reports)2.8%0.5%0.4%0.4%0.6%0.9%1.5%1.7%1.1%1.3%1.7%6inform.tmforum.orgIn this report,we examine how R&D went from a historic strength to a near non
14、-factor in the telco community;what efforts are being made today to restore CSPs ability to innovate,particularly with software components;and what steps CSPs can take to benefit from innovation activities within their own walls and through new resources like the TM Forum Innovation Hub.Read this re
15、port to:Hear from telecoms operators how R&D has changed Understand how R&D can become part of a CSPs own product and service development process as it transitions to a techco operating model See examples of industry leaders that have made the transition to drive innovation and value across their bu
16、sinesses by making R&D part of everyday activity Learn how TM Forums Open Digital Architecture(ODA),ODA Canvas and Innovation Hub can enable the benefits of experimentation and solution creation while reducing dependence on lengthy RFP processes.selected telecoms vendorsR&D spend as%of total revenue
17、7.4%16.7%Average R&D spend as%of total revenueTM Forum,2024(sources:MTN Consulting;full-year 2023 financial reports)13.9%17.3%12.2%19.2%23.4%19.4%20.4%what happened to telco R&D?section 17inform.tmforum.orgThe disparity between todays typically minimalist,outsourcing-heavy R&D model and that of past
18、 eras is stark.Bell Labs,formerly a US-based R&D powerhouse,offers a historical example of how much value was produced through past investments in telco R&D.Its current iteration as Nokia Bell Labs,after being spun out of AT&T and sold off to multiple new owners,reflects CSPs mass move away from the
19、 monopoly eras in-house approach to R&D.Bell Labs was created formally in 1925 as a research and development organization within the US Bell system,but traced its roots via its predecessor,Western Electric,to the late 19th century.The list of world-changing and industry-launching inventions Bell Lab
20、s produced from 1925 through 1983 the point at which it was privatized and divested from the monopoly Bell System is astonishing.In the first five years alone,from 1925-1930,it produced many advances now taken for granted and yet crucial to the modern communications industry.These include:electrical
21、 sound recording;antenna arrays;television transmission;transatlantic telephone service;broadband coaxial cable;and the moving-coil microphone(see timeline on p.9).Added to this impressive list of inventions are many other major scientific contributions such as:radio astronomy;stereophonic sound tra
22、nsmission;echo-ranging sonar;polymer carbon(the basis for carbon fiber);the photo transistor and photovoltaic solar cell(basis for solar power);the laser;and the 5ESS digital switch that gave rise to consumer internet access via dial-up,ISDN and DSL.8inform.tmforum.orgIt was during deregulation of t
23、he US telecoms industry in 1996 that Bell Laboratories became part of the newly formed Lucent Technologies,along with AT&Ts equipment business.In 2006,Lucent Technologies merged with French telecoms equipment maker Alcatel,at which point Alcatels research arm was merged with Bell Labs,with the new g
24、roup retaining the Bell Labs name.Though the group had continued to produce award-winning research,it was announced in 2008 that Alcatel-Lucent would no longer conduct research in basic science,material physics or semiconductors areas in which Bell Labs had previously excelled.At this point,the US-b
25、ased public R&D powerhouse that had been Bell Labs ceased to exist and ultimately became what is now Nokias product research wing.The list of world-changing inventions Bell Labs produced is astonishing.9inform.tmforum.orgWhy de-fund R&D?The key question is why R&D was suddenly and increasingly defoc
26、used in the period after which telecoms providers were divested,privatized and publicly-traded?“Research is on a five-to-ten-year horizon,”says George Glass,CTO,TM Forum,“and it wont pay back in six-to-nine months.”Since privatized CSPs began to face public market pressure to deliver quarterly resul
27、ts,the expected time to realize return on investment(ROI)on technology initiatives“has been shortened every year”,Glass says.Because CTIOs and CFOs are under increasing pressure to generate tangible returns on tech investments“none will say give me 10%of the revenue and Ill build the best mousetrap”
28、,which a large R&D organization might tackle.The C-level perspective does not result in long-term investment in R&D for its own sake.Instead,the C-level perspective is more likely to be,“I have a problem today and need a simple solution now,”says Glass,which simply does not result in long-term inves
29、tments in R&D for its own sake.Just as Bell Labs and other research institutions became units within telecoms equipment supplier companies,so many CSPs became increasingly dependent on vendors to innovate on their behalf.“Research was outsourced to vendors,”says Craig Bachman,a consultant and Senior
30、 Advisor to TM Forum.This occurred amidst a wave of outsourcing that followed the privatization period in telecoms as publicly-traded operators focused on shedding costs,processing overheads and consolidating headcounts.Over the course of its more than 50-year heyday,Bell Labs produced hundreds of i
31、nventions,many of which launched entire industries.This timeline includes only some of the most impactful inventions to come from this historic telco R&D organization.Bell Labs inventions1926ANTENNA ARRAYS19271927193019311943194719511954195819631969197319761978197919821983TELEVISION TRANSMISSIONQUAR
32、TZ ELECTRONIC CLOCKMOVING-COIL MICROPHONERADIO ASTRONOMYECHO RANGING SONARCELLULAR WIRELESS CONCEPTPOLYMER CARBONPHOTOVOLTAIC SOLAR CELLTHE LASERTOUCHTONE DIALINGUNIX OPERATING SYSTEMC PROGRAMMING LANGUAGEDIGITAL SWITCHING SYSTEM32-BIT MICRO-PROCESSORSINGLE CHIP DIGITAL SIGNAL PROCESSOR(DSP)5ESS DIG
33、ITAL SWITCHCODE-EXCITED LPC(SPEECH PROCESSING)10inform.tmforum.orgBut even vendors scrutinized the value and returns realized from product R&D,Bachmann explains.Instead,they engaged in another hot trend:corporate mergers and acquisitions wherein“they vendors buy the start-up;they dont do the R&D the
34、mselves”,he says.Bachmann collaborates on tech education initiatives with the University of Colorado and shares an anecdote exhibiting a classic example:“We had former AT&T CEO Randall Stephenson in a group salon talk surrounded by students.He tells a story about Steve Jobs offering him exclusivity
35、on the iPhone,”Bachmann says.After asking around with other telco executives,tech suppliers and Bell Labs experts,Stephenson realized there was nothing else like the iPhone and so“signs a deal with Jobs for a phone that doesnt exist yet”,Bachmann explains.“The students were stunned thats how you do
36、R&D?”A case of bad labeling?From a budgetary and spending perspective in a major telco,“you need to de-couple reality from what is actually R&D”,says former Telus CTO Gedeon.He explains that for most large CSPs,R&D means“R-D-I:research,development and integration”,where the bulk of the cost and effo
37、rt has gone into integration and“personalization”.As a result,the cost to realize technology,which includes“people,labor and equipment”,can be“accounted as R&D,but the purpose is to operationalize something for your own use”,Gedeon explains.Implementing a new technology set,like Open RAN for example
38、,can be considered R&D under this model.As a result,it makes R&D a bit of a misnomer because little is researched or developed in the process of implementing,or realizing,a new technology set procured from vendors.The portion of budget used for actual research may only be one-third of one percent of
39、 the CSPs IT spend,Gedeon explains,and those funds are mostly used to evaluate new technology before implementing it.Some effort and budget may also be spent developing new APIs that can keep legacy systems in the game a while longer,“but lets call that development,not research and development”,Gede
40、on says.An important question,then,is whether the development aspects of R&D are what are most relevant and active today.In the next section,we look at some of the barriers CSPs have faced within the R&D sphere.And we examine what the new version of telecoms R&D might seek to achieve.An important qu
41、estion is whether the development aspects of R&D are what are most relevant today.challenges for telcossection 211inform.tmforum.orgOne challenge going forward for telecoms R&D is a lack of clarity over what the term now means,what it should mean,and what it needs to deliver.Those questions are boun
42、d up with the factors that have held R&D back over the past 30 years.It almost becomes an existential telecoms question.“We have lost the understanding of why we were even doing R&D.What is our purpose?Where are we going?”asks Geoff Hollingworth,Chief Marketing Officer for Rakuten Symphony.“If you s
43、tart to design R&D to solve for things that arent creating value,then you end up with dysfunction,”he says,as has sometimes been the case with 5G and which threatens 6G development.Operators have faced significant barriers that contributed to the decline in R&D investment for much of the past two de
44、cades.These include:Capital market pressures.As recently-privatized operators were suddenly exposed to capital market pressures,such as hitting revenue growth estimates,it shifted how their leaders looked at expenditure and how to achieve growth.Through this new lens,R&D was considered an expense,no
45、t a key growth driver.12inform.tmforum.orgFundamental technology change.In the 1990s and 2000s,Internet Protocol(IP)rapidly took over most networks.Traditional voice revenues declined and many CSPs had to seek new ways to replace revenues and still grow.Substantial growth was derived from mobile ser
46、vices,but that has slowed significantly since the introduction of 5G,leaving many CSPs looking for innovative answers to their growth questions.Scale drives M&A.“To make any meaningful impact for a major telecoms provider you must talk about at least$5 billion in revenue,”says Patrick Dupree,Vice Pr
47、esident and Head of Product for Telecom and Media at Bain&Co.As a result,the growth model for most CSPs“doesnt support incubation,it promotes acquisitions”,he explains.“You have to find a new multibillion dollar business every year It can be easier to fund acquisitions for revenue streams rather tha
48、n incubate a small business and try to develop it.”Unfortunately,some of the largest acquisitions made by CSPs have failed to produce either long-term revenue growth or innovation advantages.Operators have faced significant barriers that contributed to the decline in R&D investment.13inform.tmforum.
49、orgIP law games.“The secondary motivations have become the primary motivations,”says Hollingworth at Rakuten Symphony.He explains that while patents were originally meant to reward a person or company“making something of value”,the motivation has become“to sue people”.That encourages some vendors to
50、 focus research efforts on“trying to find clever patents that become standard essential patents”and can be used aggressively and opportunistically in patent defense,Hollingworth explains.He adds that this behavior can become“the goal”yet never result in“creating a commercially viable operation”.New
51、ROI models.Going forward,says Dupree at Bain&Co.,CSPs will face new challenges as their business further morphs in a software-centric direction.“If youre the CFO of a telecom company,you can value 100 miles of fiber and its ROI.”But operators may not feel as comfortable with the ROI value of“that sa
52、me$200 million invested in an app or middleware”,says Dupree.Because of this perspective,CSPs may struggle to invest in software innovation as a form of R&D as it has not been a traditional strong suit.What should R&D look like?To determine what R&D ought to be today for CSPs,“we have to look at how
53、 the world is different now than 20 years ago and what exists now that we can leverage,”Hollingworth says.A key difference in todays market is the availability of“alternative technology and infrastructure”like cloud computing and virtualized networks,he argues.“It used to be that telecom had to buil
54、d everything,but now that isnt true.”Hollingworth outlines two diverging scenarios that have developed over the years:The Bell Labs model from the science up.In its heyday,Bell Labs engaged large teams in basic science and physics research to invent technology that led to microprocessors,photosensor
55、s,and both fiber optic and cellular transmission.Hollingworth suggests that CSPs have struggled recently,however,potentially because this legacy mindset has carried over to more recent design and standardization efforts.“We still design as if the only network that exists is a 5G or 6G network,”Holli
56、ngworth says in other words,focused on standards for the sake of it rather than the bigger picture.As a result,some telco R&D initiatives,like Open RAN,have run into maturity and commercial adoption questions because they run a bit parallel to mainstream open source softwares evolution.It used to be
57、 that telecom had to build everything,but now that isnt true.Geoff Hollingworth,Rakuten Symphony14inform.tmforum.orgThe internet model start with proven components.Instead of this approach,Hollingworth suggests“the best blueprints are the internet companies.”He argues that while many CSPs“are outsou
58、rcing their controls and are ignorant of what their vendors are doing”,companies like AWS and Google“develop what they need to be unique”,focusing their R&D on differentiating and innovating on top of the well-defined and managed technology components that underpin their offerings.While this compone
59、nt-based approach emphasizes the use of vendors,these techcos“do not outsource controls to those vendors and they are not ignorant to what their vendors are doing”,Hollingworth says.This component-based model reflects what the modern CSP approach to R&D,likely heavier on the D than the R,ought to lo
60、ok like.In the next section,we examine several CSPs that have brought R&D back in-house,in many cases in the form of software development skills,and determine the key aspects of a modern approach to telecoms R&D.New ODA features create market for plug-and-play OSS/BSS componentsAt DTW24-Ignite new O
61、pen Digital Architecture features were announced that will make it much faster for CSPs to work with software companies and hyperscalers to automatically test and deploy software components.TM Forum members have been developing ODA to change the way the telecoms industry collaborates,effectively est
62、ablishing a market for Lego-like operational and business support system(OSS/BSS)components that CSPs can plug into their own operations environments and manage autonomously.The(ODA)is a blueprint for the transformation of telecoms IT and networks,created by TM Forum members.ODA helps telcos become
63、more agile by enabling composable systems and processes plug-and-play component parts built by telco and ecosystem partners,connected with Open APIs.It means telcos can add/remove components and capabilities as technology evolves without escalating costs.Composable IT&ecosystems one of TM Forums thr
64、ee missions are the cornerstone of a modern-day telco architecture,helping to deliver the simplicity and automation required to drive growth.One of the new features unveiled by members at DTW24-Ignite is conformance testing to validate ODA components,which are the software building blocks of a cloud
65、-native digital service providers IT and network systems.The other is improvement of the reference Canvas an execution environment where components can be deployed for widescale use.Both will be available from January 2025.“Were developing a market for ODA components,so that everyone can buy and sel
66、l compatible software,”explains Andy Tiller,TM Forums EVP,Products and Services.The first step is the ODA Component Directory,which helps CSPs find the components they need and the suppliers that are developing compliant products.CSPs viewing the directory can see all the vendors for every component
67、,including where they are on the journey to compliance based on self-testing.Today,the directory shows API conformance,but in January operators will be able to see companies that have completed conformance testing of whole components.Read the full story to find out more about the new ODA features.CS
68、Ps and techcos revisit R&Dsection 315inform.tmforum.orgOf course,the shift towards software-focused developments for future telecoms services by no means points to the death of R&D.Some major telecoms operators have taken aggressive steps in recent years to improve their ability to innovate with sof
69、tware,sometimes going so far as to open new R&D centers,and often focusing on collaboration.Vodafone in 2022 opened a new centralized European R&D center focusing on technologies such as IoT,edge computing,mobile private networks(MPNs)and Open RAN(see below for more detail).The following year Deutsc
70、he Telekom opened a quantum lab research facility,bringing together partners from academia,research institutes and business.Telekom has a leading role in the ECs Petrus project to co-ordinate collaboration across the 27 EU member states to build a trans-European quantum communications infrastructure
71、.AT&T and Verizon are among a consortium of operators,vendors and developers testing Open RAN infrastructure in R&D centers in Texas and Washington DC.And earlier this year Orange launched its Experience Hub in Brazil,a collaborative global space designed to support customers with digital transforma
72、tion.The hub,says Orange,is available to its employees and customers globally to test and learn about“innovative technologies from multiple suppliers by replicating real-world scenarios and environments”.16inform.tmforum.orgThis new set of approaches to collaborative,telco-led R&D may represent the
73、future for CSPs,with the focus on unlocking new business opportunities in the hyperscale-dominated marketplace,rather than inventing new technology from the ground up.Here we outline three CSPs that are leading the way with new approaches to,and investments in,R&D.Vodafone renews R&D as it transitio
74、ns to techcoVodafone is leading the charge in software R&D investment as it transitions from telco to techco.The operator opened its new European Research and Development Center in Spain in 2022 and expanded with a new R&D campus in 2023.The CSP committed to invest 225 million over five years in thi
75、s new R&D hub,as well as a similar center in Dresden in Germany,and to create more than 600 new skilled technology jobs.Some operators have taken aggressive steps to innovate with software,opening new R&D centers.17inform.tmforum.orgA key step in Vodafones recommitment to R&D was to recapture a cult
76、ure of experimentation.Each hub is fitted out with 5G and high-speed fiber,office and lab space,and equipped to explore innovations in IoT,smart devices,connected homes,smart cities,network innovations and to help drive the maturation of Open RAN-related technologies.To this end,for example,Vodafone
77、 announced a partnership with Intel in October 2023 to develop chip sets specifically for Open RAN,leveraging its R&D facilities.More generally,the new R&D hubs stated purpose is to speed up product development and launches across the multiple countries Vodafone serves.It also builds on Vodafones co
78、mmitment to add as many as 7,000 software engineers by 2025 a major shift in its transition to techco operations,particularly as much of that talent will join network rather than IT teams.The operator is also rapidly adding generative AI(GenAI)tech talent it has about 1,400 people now in its GenAI d
79、evelopment community,all of whom were already Vodafone employees.An important step in Vodafones techco transition and recommitment to R&D as a way to create value and differentiation was to recapture a“culture of experimentation”,as Dr.Lester Thomas,Head of New Technologies and Innovation,explained
80、to TM Forum Inform.Thomas said he aims to“kill the RFP”because the process simply takes too long and the current market requires Vodafone to have a“different way of interacting”with its partners.The key to interacting in the modern ecosystem,Thomas explained,is to ensure vendors are using“standard A
81、PIs and an open component-based architecture”to simplify integration and greatly improve the CSP and its partners collective ability to collaborate and innovate.“Within three weeks Ive got a working prototype that I can validate,”Thomas said.A validated prototype is more likely to produce a timely a
82、nd relevant new solution than a form-based RFP and tendering process while also requiring vendors to bring live products to bear from the start.Vodafone has also implemented site reliability engineering(SRE)Googles widely adopted approach to DevOps including the creation of cross-functional teams th
83、at are wholly responsible for the lifecycle of any solution they build.As a result of these major changes,Vodafone delivered its Telco-as-a-Service(TaaS)platform which has officially received“running on ODA”status.TaaS exposes APIs to both internal and external developers to use for creating new pro
84、ducts and services with an ODA-based canvas for collaborative development.“Our plan is not to build all these layers and only sell at the top layer,”says Thomas.Rather,Vodafone will offer services including connectivity,but with capabilities like IoT device management delivered as-a-service layered
85、on top.What Vodafone has achieved with TaaS represents a milestone in its techco transition and is essentially the product of R&D-related investments in new software capabilities and platforms.It also marks a clear move toward a communications platform model which is more relevant for engaging in to
86、days collaborative,hyperscale-and cloud-centric technology market than are legacy telecoms operations and services.18inform.tmforum.orgJio redefines development through platform business modelJios approach to platforms,services and expansion into adjacent markets provides a clear model for how a tec
87、hco not only conducts business but also embraces a new type of R&D that is central to its approach to development.In recent years Jio has reduced its dependence on vendors and their influence over business,automation and innovation choices,says a senior-level source at the company who asked to remai
88、n anonymous.Instead,it has adopted more open-source software and reduced the degree of control its vendors are granted over changes to its operations platform,which is effectively the nerve-center for its API platform-based business model.Jios event-driven operations platform was created based on ON
89、AP and employs an end-to-end orchestration layer that is designed to“onboard any vendor”into“a cloud network where different components can be brought in at any layer and managed with a single orchestrator”,the source says.The platform allows Jio to“create cloud-native components”from any applicatio
90、n its own or those of vendors including legacy applications,and to“push workflows into runtimewithout doing all this API and microservice development”,the source explains.For users,this means new product offerings are launched not via software customization,but from a design center where multidiscip
91、linary teams can define and push them into production.“If we want to bring in a new cloud service,”the source explains,“all we need to do,if we dont need a new API,is to go to the design center.”There teams can deploy services with multiple components and container-based functions and“link the servi
92、ce to any connectivity”,he says.Offerings therefore take days or weeks to introduce because they are assembled from ready components,not built from scratch or customized to suit one-off needs.The primary purpose of software development for Jio is to create new value in its platform and scale it.Deve
93、lopment is not used for one-off customization or integration,nor is it used to roll out new product offerings.“We only go to a development team when we need to develop a new API,”says the source.Jios development effort focuses on adding new platform capabilities that can be integrated,in standard wa
94、ys via open APIs,into products,services and solutions.For example,he explains that with the universal payment interface(UPI)Indias real-time platform for peer-to-peer,digital payments “we could bring a microservice,onboard it to this platform,and offer it to any industry”with payment services built
95、off that API.Jios approach to software development provides an example of how techcos may generate the type of benefits born of experimentation and innovation typical of more formal R&D processes in the past.Products are launched from a design center where teams can define and push them into product
96、ion.19inform.tmforum.orgRakuten Symphonys emphasis on automation and data quality represent hallmarks of a modern approach to R&D.Rakuten Symphony and the single source of truthRakuten Symphony which provides B2B services and solutions for telecoms operators uses an approach to operations automation
97、 that aims to free organizations to focus on experimentation and innovation.Geoff Hollingworth,the companys Chief Marketing Officer,says that Rakuten recognized from the start that its operations automation solution required“a single source of operational truth at all times”for all systems to feed i
98、nto.“That changed everything,”he says.Today,this concept is being applied in one of North Americas largest incumbent CSPs.The operator is retiring legacy IT stacks,says Hollingworth,and is moving all the related network,service and customer data“into a single source of truth”so that it can gain a li
99、ve view of all of its resources and how customers interact with them.This level of data mastery is central to long-term network automation and autonomy goals and is a practical enabler for business innovation.For example,Hollingworth explains that the single source of truth feeds views for external
100、vendors which can use the same system,track project statuses,and“are only paid when automated acceptance testing of the platform succeeds”.This encourages all vendors to“really focus on building things correctly”,says Hollingworth,“getting it right the first time,and on getting the data right”.Rakut
101、en Symphonys emphasis on automation and data quality also represent hallmarks of a modern approach to R&D as they are infused in a techcos product and software development mindset and processes.By focusing on data quality,automation and accountability,Rakuten Symphony can derive R&D-style innovation
102、 benefits and bring them to its platform and partners immediately.The next section looks at how modern R&D manifests itself in a CSPs ability to create automated solutions from standard software components and high-quality data.20inform.tmforum.orgsection 4whats the future for telco R&D?21inform.tmf
103、orum.orgAnalysis of the telecoms landscape now,with more and more operators moving towards becoming techcos and embracing software and IT development,reveals just how much R&D has changed.The question now is what the future holds in a competitive market where customer focus and differentiation are k
104、ey.One key change is that budgets have been redefined and reallocated.“The concept of telco research has changed,”says TM Forum CTO George Glass,who was previously Chief Systems Architect for BT leading architectural transformations.Where telcos“wrote all or most of their own code 25 years ago and c
105、onsidered it R&D”,those funds are“still being spent doing the same thing,but its called DevOps or IT,not R&D”.The trouble with research departments,says Glass,is that once they fell outside what was considered a“core competence”within tier-1 operators they were trimmed for financial reasons.Whether
106、those departments or earmarked R&D funds revive is secondary to the true end goal of telco R&D,which is to create new value for the business.As a result,R&D is manifesting itself in several new ways as CSPs make the transition from telco to techco.Data and software are the“special sauce”.Rakuten Sym
107、phonys Hollingworth argues that going forward a CSP business will need to focus on both data and software and have a clear understanding of“what big problem you are solving for your customers and what it is worth”.With a clear idea of“what youre solving and designing for”,Hollingworth says,CSPs can
108、then“focus on what you need to build thats your unique sauce.”That uniqueness will derive,he argues,from how well a telco is able to work with software components and data to create differentiated solutions.Partner collaboration is a central activity.“R&D has become very much a collaborative setup w
109、ith a partner ecosystem and tends to be more virtual,which is logical given the expansion of cloud and network performance,”says techco transformation expert Nathan Bell,Digital Partner with Kearney.Bell sees two new paths that CSPs are examining to move forward.One is“becoming the platform for deve
110、lopers”and the other is building“their own ecosystem of partnerships so they can realize co-opetition with hyperscalers”,he says.The true end goal of telco R&D is to create new value for the business.22inform.tmforum.orgOur recent report on partner ecosystems sets out how CSPs are working with diffe
111、rent organizations to deliver the diverse and complex skill sets needed to adopt new technologies,including cloud services and mobile private networks.R&D should be part of what happens every day.For the most part,R&D is no longer something that only happens in a building designated for research.Now
112、,the emphasis is on development enabled by open technologies.“With open technology,the way for new vendors to come in and offer more and innovate more is to expose these standard platforms to them,”says the source from Jio.With the near complete dissolution of the“boundaries between network and IT”,
113、he says,the industry is in a phase where more players,applications,devices and other components are“opening up”,which means CSPs“should be able to integrate more and more devices and control them anywhere from anywhere,and its all based on standard interfaces”.With standard components and standard i
114、nterfaces driving interoperability,R&D becomes infused with the overall development process,particularly in environments like Jios which use multidisciplinary DevOps teams and only use development for adding capabilities such as APIs to its platform.Read the report to find out more about partner eco
115、systems:CSPs increasingly embrace componentization.Componentization is a crucial part of how future telco R&D will work.As CSPs become techcos,they have an opportunity to utilize telco-relevant,standards-compliant software components to create solutions for themselves and customers.TM Forums ODA Can
116、vas is an execution environment for ODA components.And because mastering the use of components will prove a key capability,the Canvas now includes a component directory.This allows CSPs to define their functional and process needs using ODA resources and match the available,vendor-supplied ODA compo
117、nents that meet those needs,making them better able to attune solutions to specific challenges(see box on p.14 for more details).REPORTAuthor:Ed Finegold,Contributing AnalystDawn Bushaus,Contributing EditorTM Forum|May 2023who does what and can CSPs compete for more?partner ecosystems:23inform.tmfor
118、um.orgRecapturing the benefits of experimentation.With componentization at work and an ODA Canvas instance running,a CSP can begin to move away from slow and static RFP processes and towards live prototyping as a prelude to solutions procurement and deployment.Because standard components and canvas
119、environments enable a plug-and-play execution environment,CSPs and their partners can collaborate and experiment.“We need to recapture experimentation,”argues Vodafones Thomas.And that means approaching projects and programs in new ways.New solution ideas can be put to the test quickly in a canvas e
120、nvironment,using standard components,and can demonstrate what ought to be procured or developed before something like a requirements document is formalized.Thomas says the right attitude is not to fall back on an RFP,but rather when one would otherwise be issued ask,“what could you do now?”In the ne
121、xt section we provide a summary of the high-level next steps CSPs can take in the course of techco transformation to recapture the primary benefits of R&D and harness them to create new business value from software and data.TM Forum took a major step forward in providing resources that enable partne
122、r collaboration on an industry-wide basis by launching its first TM Forum Innovation Hub,in Navi Mumbai,India.There teams from founding members Accenture,Deutsche Telekom,Google Cloud,Orange,Reliance Jio,Telenor and Vodafone can collaborate in-person and virtually to build on TM Forums Catalyst prog
123、ram.The goal is to provide a way for CSPs and their suppliers to collaborate at speed and industrialize Catalyst concepts.The first projects within the Innovation Hub have focused on developing AIVA,a GenAI/LLM conversational search virtual assistant to help members and visitors find relevant TM For
124、um content;and accelerating the creation of modular,componentized,cloud-native software to replace traditional business and operational support systems(BSS/OSS).Collaborators are also developing services,tools and a framework to manage fraudulent connectivity in a standardized way.Together they are
125、exploring the possibility of creating a routing verification service,in order to build trust between service providers and their customers.Like other operators Jio has its own ODA-compliant canvas;it also hosts the Innovation Hub.Jio has“a clear roadmap and technical pathway towards complying to the
126、 Canvas and components 100%”,Dr.Sudhir Mittal,EVP&Chief Architect,Jio Platforms,told TM Forum.He added that the company is targeting full compliance within a year.“This cultural shift in terms of thinking in a componentized manner is very important,because that is going to really bring the agility,f
127、ungibility and scalability we need,”he said.New hub focuses on innovation and standards through collaboration24inform.tmforum.orgsection 5make it happen recapturing the primary benefits of R&D25inform.tmforum.orgDifferent CSPs will take varying approaches to R&D going forward.Some will roll out rese
128、arch centers and innovation hubs to enable partner collaboration and joint development as a form of or stand-in for R&D.Others will be lower key,yet may focus on becoming techcos and limit R&D to the innovation they can drive in their development pipelines.But many CSPs with differing approaches fac
129、e the same question:What is the innovation value of a telco in a hyperscale world?Here are some views that provide insights into the future role of telco R&D.Dont build the engine,drive the train.Telus CTO Emeritus Ibrahim Gedeon sees telcos innovation value not in“engine building”at this point,but
130、believes“we can be drivers and create some intellectual wealth thats where R&D should go”.This view is validated by Jios approach to development,which focuses on creating intellectual property the CSP can scale and monetize because it adds value to the operators core platform.Hire software expertise
131、,though an army may not be necessary.Both Jio and Vodafone have hired developers aggressively to bring in needed software skills,adding hundreds if not thousands of new,skilled technicians and engineers to drive their DevOps adoption and new platforms and solutions forward.Not every CSP will have th
132、e option to replicate this approach,and some experts insist its not absolutely necessary thanks to automation and the availability of technology components.“Its never been easier to disrupt markets without an army of people,”says Rakuten Symphonys Hollingworth.Forge new partnerships and collaborate.
133、Kearneys Bell suggests telcos can deliver value by“creating a workplace to bring potential business partners into,whether mature or start-ups”.This advice resembles the approach Vodafone has taken with its research campuses,but collaboration can also be achieved through participation in initiatives
134、like TM Forums Innovation Hub.Bell adds,however,that creative partnerships beyond the supplier and telecoms community are also needed.He suggests exploring models like partnering with venture capital firms that fund growth stage tech suppliers“so that a telco can get exposure to a larger number of p
135、otential partners for a very minimal cost,and then choose which ones to invest in or partner with”once a live solution has been produced.We can be drivers and create some intellectual wealth thats where R&D should go.”Ibrahim Gedeon26inform.tmforum.orgUnlock hidden value in data.Bains Dupree suggest
136、s that many,if not most,of the major innovations of the past seven years were“data driven”,with technologies like“LLMs,machine learning,social media data and profiling”having major impacts on tech markets.And yet,he says,most telecoms operators have feared“using their own data for re-targeting and d
137、ont want to play in that space,even though they have the most natural of data flows”.While Google makes a business of using all it knows about users and customers,operators potentially have unrealized“trillions in market caprepresented by the data they are not able or willing to use”.If part of toda
138、ys R&D model requires a telco to hone its expertise with software and data,then a common goal may be to determine how that expertise with data can translate into its monetization,without running afoul of regulatory and security concerns.Solve future problems.“Future successful telcos will be digital
139、 service providers(DSPs),but that doesnt mean all future successful DSPs will be telcos,”says Hollingworth.“They will provide connectivity and value,but not like todays telcos.”Successful DSPs,he says,will be“software-first”in their market approach and will be“solving problems that will be big in 20
140、30,not that were big in 2012”.Expose standard platform capabilities.Another way for CSPs to add value to the hyperscale market is to introduce more platform-based capabilities and solutions into it.“With open technology,the way for new vendors to come in,offer more and innovate more is to expose the
141、se standard platforms to them,”says the source at Jio.One of the aims of TM Forums ODA Canvas is to provide CSPs with everything they need to instantiate their own ODA canvas environment,bring partners into a component directory,and pursue solution creation and experimentation through this standard
142、platform.As more CSPs like Vodafone and Jio embrace the ODA and deploy ODA canvases,it will become easier for them to collaborate with each other on a level playing field in environments like TM Forums Innovation Hub.Operators have unrealized trillions in market caprepresented by the data they are n
143、ot able or willing to use.”Patrick Dupree,Bain&Co.tm forum open digital architecture27inform.tmforum.orgThe TM Forum Open Digital Architecture(ODA)provides a migration path from legacy IT systems and processes to modular,cloud-native software orchestrated using AI.ODA comprises tools,code,knowledge
144、and standards(machine-readable assets,not just documents).It is delivering business value for TM Forum members today,accelerating concept-to-cash,eliminating IT&network costs,and enhancing digital customer experience.Developed by TM Forum member organizations through our Collaboration Community and
145、Catalyst proofsof concept,ODA is being used by leading service providers and software companies worldwide.ODA includes:An architecture framework,common language,and design principles Open APIs exposing business services Standardized software components A reference implementation Guides to navigate d
146、igital transformation Tools to support the migration from legacy architecture to ODA Maturity models and readiness checks to baseline digital capabilities.Goals of the Open Digital ArchitectureThe aim is to transform business agility(accelerating concept-to-cash),enable simpler IT solutions that are
147、 easier and cheaper to deploy,integrate and upgrade,and to establish a standardized software model and market which benefits all parties(service providers,their suppliers and systems integrators).TM Forum Open Digital Architecture-A blueprint for intelligent operationsLearn more about collaborationI
148、f you would like to learn more about the project or how to get involved in the TM Forum Collaboration Community,please contact George Glass.28inform.tmforum.orgtm forum research reports29inform.tmforum.org30inform.tmforum.orgREPORTAuthors:Dean Ramsay,Principal Analyst Rahul Gupta,Senior AnalystEdito
149、r:Ian Kemp,Managing EditorSPONSORED BY:November 2022|inform.tmforum.org5Gcore:exploring CSPapproachesREPORTAuthor:Joanne Taafe,Editor in Chief,InformEditor:Ian Kemp,Managing Editor,TM ForumSponsored by:thesustainable telco:engineeringnetworks for net zeroDecember 2022|inform.tmforum.orgREPORTAuthors
150、:Mark Newman,Chief Analyst,TM ForumDawn Bushaus,Contributing Analyst,TM ForumSponsored by:Editor:Ian Kemp,Managing Editor,TM Forumestablishing links:platform models in the Open API economy March 2023REPORTAuthor:Sponsored by:Teresa Cottam,Contributing AnalystDawn Bushaus,Contributing Editorcounterus
151、ing AI to improve customer experienceintelligenceBENCHMARKAuthors:Mark Newman,Chief Analyst,TM ForumDawn Bushaus,Contributing Analyst,TM ForumJoanne Taafe,Editor in Chief,InformEditor:Ian Kemp,Managing Editor,TM ForumSponsored by:a roadmap fortelecomsgrowthTM Forum|March 2023Asia-PacificREPORTAuthor
152、:Ed Finegold,Contributing AnalystDawn Bushaus,Contributing EditorTM Forum|May 2023who does what and can CSPs compete for more?partner ecosystems:REPORTEditor:Author:Sponsored by:Dean Ramsay,Principal Analyst,TM ForumIan Kemp,Managing Editor,TM Forummakingwaves:the future for Open RAN technologyJune
153、2023|inform.tmforum.orgREPORTDigital Transformation Tracker 7 with automation and Author:Dawn Bushaus,Contributing EditorEditor:Ian Kemp,Managing EditorSponsored by:TM Forum|June 2023cutting complexity AICSPs take key steps to modernize network inventoryREPORTAuthor:Mark MortensenEditor:Dawn Bushaus
154、ISBN:Sponsored by:June 2023|www.tmforum.orgAuthor:Dr.Mark H.Mortensen,Contributing AnalystEditor:Dawn Bushaus,Contributing Editorsponsored by:Sponsored by:Author:Editor:ISBN:REPORTtransformingBSS:racing to a flexible,customer-focused futureJune 2023|www.tmforum.orgAuthor:Teresa Cottam,Contributing A
155、nalystEditor:Ian Kemp,Managing Editorsponsored by:Sponsored by:Author:Editor:ISBN:REPORTstandout strategies:how telcos are innovating in a crowded marketJune 2023|www.tmforum.orgAuthor:Mark Newman,Chief AnalystEditor:Ian Kemp,Managing Editorsponsored by:August 2023|www.tmforum.orgAuthor:Ed Finegold,
156、Contributing AnalystEditor:Ian Kemp,Managing Editorsponsored by:how software-as-a-serviceis reshaping business support systemsReignitingtelecoms growthAugust 2023|www.tmforum.orgsponsored by:Authors:Sangeet Paul Choudary,Platform Thinking LabsNik Willetts,CEO,TM ForumAnthony Rodrigo,CIO,AxiataDean R
157、amsay,Principal Analyst,TM Foruma Playbook for CEOsSeptember 2023|www.tmforum.orgAuthor:Mark Newman,Chief AnalystEditor:Dawn Bushaus,Contributing Editor sponsored by:wholesalechanges:rethinking support systemsfor new fiber operatorsSponsored by:Author:Mark Newman Chief Analyst Editor:Dawn Bushaus,Co
158、ntributing Editor REPORTrethinking support systems for new fiber operatorsSeptember 2023|URL TBCwholesalechanges:Sponsored by:Author:Mark Newman Chief Analyst Editor:Dawn Bushaus,Contributing Editor REPORTrethinking support systems for new fiber operatorsSeptember 2023|URL TBCwholesalechanges:BENCHM
159、ARKAuthors:Mark Newman,Chief AnalystDean Ramsay,Principal AnalystEditor:Ian Kemp,Managing EditorTM Forum|September 2023telcorevenuegrowth:time foroperators toplace new betsSeptember 2023|www.tmforum.orgAuthor:Patrick Donegan,Principal Analyst,HardenStanceEditor:Dawn Bushaus,Contributing Editor,TM Fo
160、rumsponsored by:Sponsored by:Author:Patrick Donegan Principal Analyst HardenStanceEditor:Dawn Bushaus,Contributing Editor TM Forum REPORTrisk management moves firmly into the telco spotlightcybersecurity strategies:September 2023|URL TBCrisk management moves firmly into the telco spotlightCybersecur
161、ity strategies:REPORTSponsored by:leveling up:Author:Mark Mortensen,Contributing AnalystEditor:Dawn Bushaus,Contributing Editor achieving Level 3 autonomous networks and beyondAugust 2023September 2023|www.tmforum.orgAuthor:Dr.Mark H Mortensen,Contributing Analyst,TM ForumEditor:Dawn Bushaus,Contrib
162、uting Editor,TM Forumsponsored by:REPORTSponsored by:leveling up:Author:Mark Mortensen,Contributing AnalystEditor:Dawn Bushaus,Contributing Editor achieving Level 3 autonomous networks and beyondAugust 2023REPORTTM Forum|December 2023operators take their first stepsAuthor:Mark Newman,Chief Analyst E
163、ditor:Ian Kemp,Managing Editor Sponsored by:generativeAI:REPORTTM Forum|December 2023Author:Ed Finegold,Contributing Analyst Editor:Dawn Bushaus,Contributing Editor Sponsored by:BSSfor B2Boperators diverge on the path to cloudREPORTTM Forum|December 2023the sustainable telco:navigating the maze of s
164、cope 3 emissionsREPORTa numbers game:February 2024Sponsored by:Author:Richard Webb,Senior AnalystEditor:Ian Kemp,Managing Editor exploiting data to drive future strategiesFebruary 2024|www.tmforum.orgsponsored by:Author:Richard Webb,Senior AnalystEditor:Ian Kemp,Managing EditorREPORTclosing the loop
165、February 2024Sponsored by:Author:Dean Ramsay,Principal AnalystEditor:Ian Kemp,Managing Editor CSPs aim to automate service orchestration and assuranceFebruary 2024|www.tmforum.orgsponsored by:Author:Dean Ramsay,Practice Lead,TM ForumEditor:Ian Kemp,Managing EditorREPORTclosing the loopFebruary 2024S
166、ponsored by:Author:Dean Ramsay,Principal AnalystEditor:Ian Kemp,Managing Editor CSPs aim to automate service orchestration and assuranceREPORTAuthor:Dawn Bushaus,Contributing AnalystEditor:Ian Kemp,Managing EditorSponsored by:inside thetelco talentrevolutionfinding skills for the future:TM Forum|May
167、 2024April 2024|www.tmforum.orgAuthor:Charlotte Patrick,Contributing AnalystEditor:Dawn Bushaus,Contributing Editorfocus onsponsored by:driving intelligencein network lifecycleautomation:Asia-Pacificmeet the research&media team31inform.tmforum.orgReport Author:Ed Finegold Contributing Analyst Chief
168、Analyst:Mark Newman mnewmantmforum.orgPractice Lead:Dean Ramsay dramsaytmforum.orgHead of Operations:Ali Groves agrovestmforum.orgCommercial Manager:Tim Edwards tedwardstmforum.orgReport Editor:Ian Kemp Managing Editor ikemptmforum.org Editor in Chief,Inform:Joanne Taaffe jtaaffetmforum.orgGlobal Ac
169、count Director:Carine Vandevelde cvandeveldetmforum.orgMarketing Manager:Ritika Bhateja rbhatejatmforum.orgCustomer Success Project Manager:Maureen Adong madongtmforum.orgCustomer Success Project Manager:Amanda Alexander aalexandertmforum.org 2024.The entire contents of this publication are protecte
170、d by copyright.All rights reserved.The Forum would like to thank the sponsors and advertisers who have enabled the publication of this fully independently researched report.The views and opinions expressed by individual authors and contributors in this publication are provided in the writers persona
171、l capacities and are their sole responsibility.Their publication does not imply that they represent the views or opinions of TM Forum and must neither be regarded as constituting advice on any matter whatsoever,nor be interpreted as such.The reproduction of advertisements and sponsored features in t
172、his publication does not in any way imply endorsement by TM Forum of products or services referred to therein.32inform.tmforum.orgMeet the Research&Media teamPublished by:European Office TM Forum,Uncommon,34-37 Liverpool Street,London EC2M 7PP United Kingdom Phone:+44 207 748 6615 US Office 181 New Road,Suite 304,Parsippany,NJ 07054 USA Phone:+1 862-227-1648 ISBN:978-1-955998-87-1 Report Design:Paul MartinTo find out more about TM Forums Innovation