In Focus

Anshuman Tiwari

Global Head of Delivery Excellence
DXC Technology

A process-excellence lens could enable businesses to get better every day and come back faster in the game.

Globally, the last few months have been tough for most of the organizations and their employees. During the lockdown, people’s movements were limited by various governments, and many were confined to their homes. Even though the stay-at-home guidelines are no longer active, many people are still apprehensive about venturing out. Age-old habits and operating models are getting changed because of measures such as social distancing that are in place to contain the spread of the crisis.

Today, enterprises are faced with the task to navigate the business challenges in the wake of the crisis and stay put in the market marred with subdued economic sentiments.

Technology and business leaders are in search for the best ways to address issues such as sluggish customer demand, changing behavioral patterns of consumers, and raw material supply challenges.

One such way is to accelerate the adoption of digital technologies, amidst a rising focus on reimagining the business models and adopting a multi-pronged approach.

In a recent interaction with Jatinder Singh of Better World, Anshuman Tiwari, Global Head of Delivery Excellence, DXC Technology, elucidates the critical role of process excellence services in helping enterprises fast-track their digital transformation journey, improve customer experiences, and achieve better returns on investment.

Excerpts of the interview:

Better World: As economies try to get back to normal, many businesses are gasping for survival. In such a scenario, how critical is the role of process improvement to outsmart the uncertainty?

Anshuman Tiwari: Before we go into the criticality of process excellence for the industry, let’s take a step backward and examine how continuous improvement works out in our daily lives.  For over six months, we have been living with stay-at-home guidelines. Many habits and operating models have been transformed because of social distancing measures that are in place to contain the spread of the crisis. We call it the new normal where businesses are often functioning by enabling every part of their process digitally.

Despite disruption during the lockdown, most of us were able to receive essential services such as groceries, milk, and fruits, mainly because of a set of processes. There may have been delays or interruptions initially, but digital services helped us collaborate and get all the necessities delivered at our doorsteps. This success is a prime example of process refinement or process excellence. Processes are nothing but a set of activities repeated multiple times for an excellent outcome. So, the process techniques are essentially developed to operate better every week and every month, leveraging whatever opportunity we get from time to time.

Processes are integral to every industry and even more to an IT industry where most customers are global and have already been exposed to robust techniques. Moreover, in the IT industry, margins are always under pressure, and end-users want to get the same thing at a cheaper cost. However, one cannot compromise with quality to reduce the cost. It would be best to discover a way to operate efficiently to save costs. Process excellence techniques such as Lean, Six Sigma, and automation come handy to enable businesses to improve cash flows without impacting the customer experience.

The current economic environment has compelled organizations to revisit their business models and include the digitization aspect in every part of their business. Enhancing processes is a critical aspect of digital transformation. Due to slow market demand and wafer-thin margins, organizations require massive efforts to strengthen their operations, improve supply chains, and reach out to their customers in new ways.

There have been growing technological advances in helping enterprises automate specific parts of their operations. An in-depth process lens can enable businesses to get better every day. It allows companies to break down and analyze processes that can be automated to deliver the same or better quality at a lesser cost. For instance, process improvement techniques can help an organization to take the robotic process automation (RPA) route to accomplish the same job with fewer people.

Across industries, efforts are being made to eliminate inadequacies and deliver exceptional services to clients.

Better World: You mentioned that process excellence is a stepping stone to digital transformation. Could you please elaborate how these two are correlated?

Anshuman Tiwari: I would like to answer this question in two parts. First, digital transformation is a fancy name. Many organizations have already stopped using the word digital transformation because they feel that every organizational shift is in some or the other way connected with digital technologies. Digital transformation is all about bringing new and advanced technologies to help you perform better, faster, and more effectively. Second, it’s not a new concept; technological change is happening all the time. For instance, fifteen to twenty years ago, we were not ready for full-scale web conferencing. Most of the collaboration tools were still emerging or were primarily limited to text chat. Internet speed was limited. Today, we are getting high-quality education and medical consulting through various web meeting and conferencing tools.

Thus, you are bringing technologies to improve a process, which is resulting in rendering the earlier process primitive. The erstwhile snail mail or even telegram services, for example, may look archaic to various instant communication services such as WhatsApp.

Anshuman Tiwari

Global Head of Delivery Excellence, DXC Technology

Anshuman is a process transformation professional with experience across multiple industries, including banking, professional services, information technology, manufacturing, and consulting. He specializes in setting up and scaling world-class operations excellence programs. In the last few years, he has also managed large RPA and digital initiatives.

Before DXC Technology, he had worked for global multinationals such as EY, HSBC, and Infosys. He is also a fellow member of American Society for Quality (ASQ), formerly the American Society for Quality Control, a knowledge-based global community of quality professionals.

Besides work, Anshuman is a fitness fanatic and has participated in several marathons across India.

Top skills

  • Process improvement
  • Digital transformation initiatives
  • Six Sigma, Lean, automation, robotics process automation (RPA) and maturity frameworks
  • Agile project management

Education

  • Post Graduate Diploma in Management (MBA) in Operations Management, K.J. Somaiya Institute Of Management Studies and Research
  • B.E. Industrial Engineering, Nagpur University

Now, let’s understand how a process or service excellence enables organizations to drive continuous change. It is imperative to know what we want to improve and why we wish to invest in making that improvement? Is it service delivery, resource optimization, customer experience, or all three? Any process enhancement may involve some investment or technology implementation. However, for any organization or entity, financial resources are limited. Process excellence teams help businesses determine the problem, suggest a solution, and showcase how the solution will help. Through process enhancement initiatives, organizations identify an opportunity and attain the final state of operational excellence through continuous improvement. This entire effort makes a process more effective and intelligent to deliver positive outcomes consistently, with minimal waste.

While there may be several ways to transform operations digitally, process testing can help accomplish which method is best and more suited to achieve a definitive outcome. Many transformation journeys end in suboptimal benefits, i.e., they don’t give the results they promise. That’s why you need a ‘method’ to transformation. Process excellence efforts give you a holistic outlook for your transformation efforts.

Better World: How do you engage with different business leaders for a service-excellence initiative? What are some of the best practices that you adhere to while proposing a given solution?

Anshuman Tiwari: There are two parts of the spectrum. On one end, nobody wants to improve. Some leaders wish for a status quo. They don’t desire to change or iterate a set of technological processes for getting satisfactory results. On the other extreme, some executives look to continuously change everything. Both approaches are detrimental.

If you don’t want to change and respond to the transitions happening around you, you will not grow or begin losing market share. Many erstwhile leaders failed because they did not respond to market needs or transformed their products and processes to improve their market positions. In the end, it resulted in their ruin.

On the other side of the spectrum, there are executives who wish to change everything all the time. It can be very costly and confusing for people. By the time people get to know about the new process, it would have already got changed. The probabilities are high that in such a condition, there will be a lot of unhappy employees and dissatisfied customers.

Then some people and executives who are in the middle of the spectrum. I believe that most of them are either in this category or are slowly moving toward it. There is a growing awareness around the worth of testing different processes that can impact the end customer. But it would be best if you demonstrate the inefficiency and merits of enhancing a process.

Let me give you an example. A few years ago, in an insurance process review meeting in Hong Kong, we discovered that one of our insurance-sector clients was taking one to two weeks in delivering an insurance policy. In that market, we found several other leading insurance players were taking a maximum of one week in issuing insurance policies. We examined their case and gave them an overview of how this delay could hamper their prospects. They were initially reluctant to accept, but when we explicated that their process was broken and had too much inefficiency compared to three other banks and insurance providers, they bought our idea and immediately sanctioned the process enhancement project.

So, even if your processes are working all right but failing to give you market competitive results, it’s time to evaluate. It may happen that your customers do not see it because of your past success or goodwill, but you should invest in it for long-term market advantage to scale down your error rates. Continuous improvement of a process improves not only the lives of employees but also customers. On top of that, organizations get the benefits of cost savings. You would not want to utilize the efficiency of your quality employees by giving them a task to reconcile and match data. This kind of job can be performed with the help of some software programs quite quickly.

So, in a nutshell, evaluating a process is critical to ensure that a company performs well. And all process-efficiency projects are either related to customer benefits or your people’s benefits or both.

Better World: Given the growing focus of enterprises on digital transformation, how do you see the year 2021 evolving from a process-excellence lens?

Anshuman Tiwari: Nobody knows for how long the current situation will last. The impact of the current crisis is likely to be felt for a long time, according to many experts. If there is any evidence, the last similar event (Spanish flu) occurred in 1918, which was more than a hundred years ago. It lasted for three to five years in different geographies. Of course, the situation is different in that the medical science has progressed and there are various forms of connectivity today. However, it is also true that there were no large cities back then, and population density was not that high. So, while there has been progress on some fronts, there also are counterbalancing factors that tend to neutralize those improvements. Today, we are transforming and changing fast due to this sudden disruption. Like every other practice, process excellence will also change. Priorities for large businesses will be very different for some time. Enterprises will look for rebuilding businesses. There will be a strategic focus on renewing processes in such a way that companies can come back faster.

While it is difficult to predict things, given the unprecedented nature of change, I believe there will be a reasonable investment in technologies such as RPA and internet of things (IoT). Customer centricity will continue to push organizations to innovate and develop new products and services. That’s where most of the processes will be built.

Organizations that follow a smart approach to transformation by leveraging their people, diverse processes, and technologies will be way ahead. Like any other area, process excellence will need to adapt to newer developments and focus on innovation so that as the opportunities arise, we can take advantage of those.

MORE FROM BETTER WORLD

The CIO blueprint for digital transformation

The CIO blueprint for digital transformation

The unprecedented COVID-19 has triggered major upheavals and compel organizations to accelerate their digital transformation plans to get future-ready. Suddenly, the Chief Information Officers (CIOs) ‘ role has fast evolved from a technology leader to a cross-functional business leader. If it was not entirely apparent before the pandemic, then it is now pellucid. Businesses depend on them to continue to manage disruptions, build resiliency, deliver an exceptional customer experience and seamless business continuity. CIOs have an enormous responsibility on their shoulders today, much greater than pre-pandemic times. And hence need a strong strategic blueprint to achieve successful transformations.

However, there are several challenges that CIOs need to overcome to unlock the real value of digital transformation of their organizations. These may include integrating new technology with existing legacy applications, shortage of digital and information security talent, and re-invent IT with new operating models, among others.

In this backdrop, it is a must for CIOs and organizations to devise a careful transformation strategy keeping in mind the factors such as business requirements, customer-specific needs, employee engagement models, among others. (See: CIOs’ digital transformation focus accelerates recovery for IT firms)

Let’s look at some of the essential elements that CIOs must keep in mind before embarking on the digital transformation journey.

Assess your business needs

While it is true that digital transformation can bring maximum and sustainable benefits, it is also true that every organization’s technology needs are different. For instance, some of the transformation programs are specifically designed to manage accounting related issues, while others may involve automating operational processes and customer interface channels.

It becomes critical for organizations to do not to compare apples with oranges. So, understand your unique needs, consult with other C-level executives, prioritize and analyze the approach at the most granular level while preparing your digital transformation blueprint.

Develop a strategy for effective change management

In our interactions with many technology leaders last year, it became evident that having a robust change management strategy is of utmost importance for any digital transformation blueprint. The executive leadership must take accountability and drive an effective change management plan before undertaking any digital transformation route.

Jaspreet Singh EY

Jaspreet Singh, Partner- Cybersecurity, EY

“Today’s enterprises need to secure access to their organizational resources, regardless of the user or application environment. This means that the biggest challenge is about adapting to the modern distributed workplace and embracing a mobile workforce while protecting people, devices, and data, irrespective of their locations.”

Rajesh Aggarwal

Rajesh Aggarwal, Head of IT, Aamor Inox

“Digital transformation is a journey rather than an endpoint. Every aspect of the journey needs to be assessed well. A successful transformation strategy leverages the value of diverse processes, people, and technologies. Organizations need to democratize IT to make it accessible for all stakeholders.”

While it is understandable that unprecedented events such as COVID-19 leave no time for organizations to prepare well for suden operational changes, CIOs need to provide directions and act as a glue `to successfully transform their IT architectures.

Ensure that you have a good-formulated plan to convey the change in the organization, its impact on processes, the advantages it brings, and the necessary training plan to make your people ready.

Build a robust governance framework

In the present distributed workforce scenario where organizational networks may have several unidentified access points, security and governance cannot be taken lightly at any cost. Every digital transformation initiative should incorporate plans to have full network visibility into applications, devices, cloud platforms, and other aspects.

CIOs should collaborate with other business leaders to define a relevant and robust governance framework that proactively manage and mitigate risks and forefront innovation.

Choose partners, not vendors

Always ensure you are working with partners and not just vendors when deploying a new technology solution. Training your internal teams to understand and maintain control over new technologies and solutions is very important.

This must-have digital transformation blueprint element will let you test and experiment with new ideas and get detailed information on all your future technology requirements.

Integrate smartness in your digital transformation roadmap

Digital transformation has become a much broader concept than just incorporating digital prowess in every aspect of the business. Data is the new lifeline for organizations. In such a scenario, technologies such as artificial intelligence, automation, and smart analytics should be seared wherever required to meet the desired outcome with speed, agility, and secured infrastructure.

The new operating model should enable businesses to identify alternatives. It should equip organizations to harness the potential of various cutting-edge technologies to deliver stakeholder expectations, augment collaboration and efficiency.

Sandeep Sudarshan Subex

Sandeep Sudarshan, Head, Business Solutions and Consulting, Subex Limited

(more…)

Tipping point for 5G networks likely in 2023, says Report

Tipping point for 5G networks likely in 2023, says Report

Despite an aggressive push, the 5G technology could take about five years from now to demonstrate compelling use cases. According to a new 5G report from consultancy major PwC, the year 2023 will be a defining year when 5G is likely to hit a tipping point. Titled, Making 5G Real, the report highlights that the networks’ performance will significantly improve in countries like the US where 5G has already been launched.

According to PwC, in the US, 80% of the population is expected to have 5G coverage accessible at home or work by July 2021. However, the performance of 5G networks remains uneven.

This, according to the consultancy major, is mainly because carriers and device manufacturers are facing a massive challenge to push the consumer upgrade cycles and meet deployment milestones.

There is no doubt that 5G will inevitably make deeper inroads into the network ecosystems and open up new exciting revenue streams for telcos and enterprises. However, its snail-paced growth is a big worry that the industry is currently wrestling with.

Multiple factors delaying expansion

There will be several variables that will define the capabilities of 5G networks. The successful use cases of 5G are still minimal and likely to emerge at scale only in the next three to five years. For instance, one of the hyped use cases of 5G, the fully autonomous car, is yet to mature, and most automobile manufacturers have pushed their timelines in this regard.

While the COVID-19 pandemic could be a reason for the delay in 5G rollouts in many countries, it is also true that countries such as India see no immediate need to make heavy investments in the 5G networks. This is mainly because a significant section of their subscribers is from the low-budget category.

The robust networks and availability of mass 5G devices will play critical roles in making this blazing technology available for the masses. The 5G device ecosystem could also take much longer to mature than many industry onlookers may think.

The rollout of different generations of mobile networks has always taken many years to mature. However, with 5G, expectations were rife that the technology would become mainstream sooner because 5G standards were adopted faster due to better interoperability with the previous network standards.

Even in the countries where 5G has been launched, the customer experience is not up to the mark till date and needs a lot more polishing. The devices are a tad expensive and also consumes more power than the 4G devices.

Enterprises should use this time wisely

Most organizations worldwide are currently in various stages of deploying new technologies, enhancing their service delivery, revamping communication strategy, and improving operational efficiency. There is a more significant push toward enabling new industrial applications such as robotics, artificial intelligence (AI), IIoT, and AR/VR. Evolved 5G networks will be critical for businesses to run applications based on these technologies. (See: Here’s how 5G could be a catalyst for IIoT and Industry 4.0)

While the technology itself could take up to five years for mass adoption, PwC cautions enterprises that they might risk rushing into the wrong 5G investments or failing to act soon enough. They recommend that businesses use this time wisely to transform themselves for new 5G services such as the internet of things (IoT) and monitoring and assurance solutions. (See: CIOs to focus on network transformation for business continuity)

Since most enterprises are already undertaking digital transformation journeys,  it would be a good idea to integrate their 5G strategic goals and brainstorm how 5G could help them improve their products and services once the technology is mature.

Here’s how 5G could be a catalyst for IIoT and Industry 4.0

Here’s how 5G could be a catalyst for IIoT and Industry 4.0

Over the last few years, the industrial internet of things (IIoT), as a key constituent of Industry 4.0, has gained much ground, transforming how businesses manage their manufacturing operations. IIoT includes several advanced technologies such as artificial intelligence (AI), analytics, and blockchain to help enterprises move towards lean manufacturing and automated processes. Now, with the advent of 5G, the potential of IIoT could be harnessed even better.

5G has so far largely garnered attention in the consumer market. However, the capabilities of 5G are increasingly recognized in various business markets. There has been a greater push from organizations as well to democratize the availability of digital, especially in the wake of COVID-19 related disruptions.

With reduced latency and blazing speed, the fifth generation of wireless technology has an enormous potential to bring agility, speed, and mobility to many conventional strategies in areas such as predictive maintenance, demand forecasting, and anomaly detection. (See: Telcos eying the edge opportunity for 5G growth)

Need for reliable power

The majority of IIoT use cases are currently based on wired connections, which are insufficient to address manufacturers’ various sensitivities. The quality and dependability of connectivity determine the success of any implementation. Modern production units primarily use Wi-Fi technology to support IoT connectivity, which consumes a lot of power and relies heavily on stable wired connections for backhaul and data offloading. There are limitations to the legacy networks that affect the scaling-up of the manufacturer’s digital transformation goals.

For instance, large-scale IoT transformations cannot be entirely dependent on Wi-Fi. Even cellular technologies such as 2G/3G and LTE are either slow, have latency issues, or use large amounts of energy to support IIoT. This is where a technology such as 5G could be a gamechanger!

When propelled with 5G speed and AI-based analytics, manufacturers can predict problems, analyze them in real-time, and minimize production downtime.

5G enables manufacturers to build high-precision assembly lines where all IoT devices and robotic processes could be perfectly in sync with each other, on a real-time basis. According to Wipro, one of India’s top IT Services firms, due to the high capacity, wireless flexibility and low-latency performance of 5G, IIoT deployments in the manufacturing segment stand to gain considerably. 5G has the potential to enable high-speed connectivity without the cost and complexity of fiber optic cables. And this makes 5G a natural choice for high precision manufacturing environments.

In addition to providing a robust network, 5G’s built-in security features can also help manufacturers integrate covered layers into the basic network architecture and ward off security issues if any.

Not without challenges

Swedish telecom equipment maker Ericsson, while agreeing with the superior capabilities of 5G to support different manufacturing use case, raises a pertinent challenge of a disconnect between three perspectives among manufacturers: the understanding of cellular capabilities, how they enable different digital solutions, and finally how these solutions address manufacturers’ actual pain points.

Besides bandwidth, the other major challenges that any IIoT deployment faces is interoperability, lack of compliance on the part of IoT manufacturers, and limited user awareness. In 2021, as we see 5G rollouts expanding in major countries, telcos worldwide would explore various collaboration routes to address the above-listed issues as well.

Globally, mobile network operators such as AT&T, Deutsche Telekom AG, Sierra Wireless, China Mobile, Verizon have been collaborating with manufacturers to test and showcase 5G capabilities for IIoT manufacturing and improve the overall factory environment. 

Rajesh Aggarwal joins Aamor Inox as Head of IT

Rajesh Aggarwal joins Aamor Inox as Head of IT

Rajesh Aggarwal

Rajesh Aggarwal

Aamor Inox has roped in Rajesh Aggarwal to head the company’s IT department in India. Aamor Inox is a leading maker and exporter of cold-finished long products in specialty stainless steels in India.

In his new role at Aamor Inox, Rajesh will be responsible for designing and implementing the cybersecurity policy and executing the ERP.

Prior to Aamor Inox, Rajesh Aggarwal was with the JBM Group, where he was responsible for designing and executing the IT business strategy. He has earlier worked with companies such as Jindal and Jagsonpal Pharmaceuticals.

Rajesh has more than three decades of rich IT management experience in developing, designing, and implementing IT business solutions, and has a deep understanding of ERP systems.

In his earlier role, he has carried out a re-implementation of SAP ECC (6.0), implementation of Industry 4.0, and upgradation from SAP ECC(6.0) to SAP HANA, among other things.

Rajesh is an MBA in Finance from IGNOU. In his free time, Rajesh enjoys reading spiritual books and listening to music. Better World wishes him every success in his new role.

About Aamor Inox

Aamor Inox claims to be India’s most advanced producer of “specialty stainless steel” long products. It produces materials in a wide-ranging steel grades like Austenitic, Ferritic, Martensitic, Heat Resisting, Duplex and 17-4ph steels in various heat treatment conditions including Quenched Tempered, Annealed, Solution Annealed, etc.

A capability to manufacture 60,000 tons stainless steel bars per year makes the company one of India’s largest privately held stainless long products companies,.

For other recent C-Track movements, click here.

AI, ML see rapid uptake in measuring customer loyalty

AI, ML see rapid uptake in measuring customer loyalty

The COVID-19 has transformed the way businesses function. In the wake of social distancing measures that are likely to remain in place for an extended time, a large pool of customers are swiftly moving toward new-age digital and mobile marketplaces. Moreover, the tendency has transitioned from just brand to purchase experience, quality of service, and customized needs. This has driven top CRM players to realign their AI-based offerings in line with the growing enterprise need to measure customer loyalty effectively.

According to a McKinsey report titled “The Quickening,” e-commerce has experienced the same amount of growth in three months during the COVID that would have erstwhile taken ten years. Due to this, consumers are going with fitting, reliable brands and have the products and services they are looking for.

Microsoft has also echoed similar sentiments in its blog. According to Microsoft, COVID-19 has greatly changed consumer behavior, and consumers are now buying more online and gravitating toward contactless pickup of purchases. It adds that retailers who invest in digital technology are better positioned to deal with this new shift and stay connected with existing customers while also attracting new ones. Use of AI and ML to measure customer loyalty has become increasingly relevant for businesses.

Battle of the giants

Understanding this new shift in consumer behavior, global CRM leader Salesforce has introduced a new brand loyalty management solution that will enable its customers to strengthen customer trust and engagement. The latest offering has been introduced, keeping in mind the rapidly evolving unique enterprise needs to reward and retain their customers amidst the global pandemic.

Starting in February 2021, Salesforce will integrate the new brand loyalty solution with Salesforce Digital 360Service Cloud, and Tableau, allowing enterprises to offer a customized loyalty experience across the entire customer journey.

Salesforce said that the solution would help enterprises of all scales and sectors to launch more customized experiences. According to the company, enterprises can leverage this solution to expand their loyalty programs to stay current with customer expectations. It can also help drive business value by creating loyal, lifelong customers. (See: How will AI impact enterprise ecosystems in 2021? )

Salesforce, though, is not the only CRM leader trying to capitalize on this new opportunity. Microsoft too is continuously looking at making its Microsoft Dynamics 365 more evolved and enable its customers with deep, intelligent insights.

Another CRM major SAP has been quite aggressive in leveraging AI and ML learnings to improve customer interactions. In October last year, it launched a new SAP Customer Data Platform to connect every data source in an organization and external data to create unified customer profiles. SAP claims that the tool enables enterprises to provide a complete understanding of customer preferences and behavior.

Technology to play a big role

Most businesses are looking at leveraging advanced technologies and solutions to understand customers’ specific needs. There has been a growing focus on smart solutions based on artificial intelligence and analytics, which can help organizations determine the best ways to engage with specific customer needs and include promotions and offers based on real-time data. For example, a retailer can identify which of his customers are near a store, using geolocation-based notifications or whether customers have used their bonus points or can be offered some new incentives to get them back.

In 2021 and beyond, enterprises, especially, retailers will see the growing adoption of tools based on artificial intelligence to deliver unique customer experiences and drive impactful brand engagements. Top CRM players such as Salesforce, Microsoft,  Oracle, and SAP are expected to add new machine learning capabilities in their CRM offerings to enable their users to automate the customer loyalty measurement process and deliver more incredible customer engagement benefits.

Telcos eying the edge opportunity for 5G growth

Telcos eying the edge opportunity for 5G growth

Top telecom operators are rapidly building strong foundations for future 5G networks. The next-generation wireless technology, which is ten times faster than the current LTE networks, has the potential to transform people, processes, and policies innovatively. Given that many global service providers have turned to bolster telco edge capabilities and putting them at the core of their 5G infrastructure goals.

According to a GSA report, as of December 2020, 140 operators in 59 countries/territories have introduced commercial 3GPP-compatible 5G services. In the next couple of years, 5G is expected to make substantial inroads in many countries, including India.

However, to leverage the real potential of 5G, telcos need to develop new structures that can provide continuous support for high bandwidth and low-latency applications and effectively execute their administration. This is where the Telco edge could help win big!

Evolving business needs

As 5G moves to the mainstream, Internet of Things (IoT) devices such as autonomous cars, connected appliances, and robotic processes, gain the necessary fuel to communicate and share data faster than ever. Swedish telecom equipment maker Ericsson estimates around 5 billion IoT connections by 2025, up by the existing 1 billion connections today. That’s huge! Such a spread connected network will also result in an explosion of data that could strain the existing cloud ecosystems.

The biggest challenge will be: how to manage, process, and deliver this high volume data and support low-latency based real-time applications using prevailing communication networks in a secure, reliable, and efficient way.

Telco edge enables enterprises to lessen reaction processing to milliseconds, thereby eliminating the need to transfer data to the centralized cloud. By taking cloud services and resources together, edge deployments provide benefits such as latency reduction, bandwidth scale, and mobility support, imperative for the next-Gen time-sensitive applications and services.

Edge will enable mobile network providers to move the value chain upward and unlock new revenue streams. It adopts cloud-native technologies to distribute the network infrastructure cost, just like Infrastructure-as-a-service (IaaS) offering.

Collaboration route for ample opportunity

With 5G services growth inevitable in the near future, top Indian telecom service providers, such as Reliance Jio, Bharti Airtel, and VI are also gearing up to further their edge clouds and leverage it as a new revenue opportunity. India’s service providers can take a cue from many global telcos who are aggressively building a distributed cloud approach.

While ‘edge’ may be uncharted waters for telcos to date, the year 2021 is likely to be a defining year from the telco edge deployment perspective. South Korean wireless telecommunications operator SK Telecom and Japanese Telecom operator KDDI recently launched 5G edge cloud services. American multinational telecom company, Verizon as well is exploring the potential of AI at the Edge of the network to locate and provide necessary real-time support to relevant IoT resources. Companies like Renovo, a connected car startup, and electronics giant LG are among the organizations testing telco edge services on Verizon’s network.

Many other telcos worldwide are screening the automated environments and investing in AI and machine learning capabilities to save OPEX and open-up new exciting revenue streams in the 5G networks.

However, telcos are not the only ones battling for their share in the edge computing market. Global hyperscalers such as Google, Microsoft, Facebook, and Amazon are building their edge capabilities and have their unique strengths, such as global reach and high investment potential for R&D.

The year 2021 is likely to see both Hyperscalers and mobile network operators forging strong partnerships to enable AI and Edge use cases.

 

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