Data-Driven Operations: Does It Pay Off?

As the world races towards an all-connected era, one powered by technologies like 5G and IoT and concepts like Industry 4.0, it is imperative to achieve reliable, secure and robust connectivity. Telecom networks increasingly serve as the backbone for an all-digital society, placing new demands on operations. In our blog post series, we will embark on 5 data-driven transformation journeys with customers and Ericsson experts to address some of the tangible benefits of data-driven operations in action.

Nope, this is not going to be a biophysics blog post, but I like to think of a telecom network as a living organism that follows the natural tendency for things to get more complicated. The second law of thermodynamics states that the degree of disorder or randomness (entropy) of a closed system will never decrease. In the long run, nothing escapes this fundamental law of the universe, and networks aren’t the exemption. Like many other “organisms” in the telecom ecosystem, they need to constantly address the intensifying complexity of operations driven by the increasing volume of devices, multiple new technologies, and more diverse service requirements.

As the possibilities multiply, unlocking new monetization opportunities across enterprise and consumer segments, the need for communication services providers (CSPs) to transform their operations is not even open to debate. To add people around legacy processes is not sufficient to deliver the needed volume and speed of change. A new look at data is the foundation, but CSPs are uncertain on how to go about this transformation spanning beyond data and automation into multiple other dimensions across organization, competence, processes and governance.

The Recurrent Dilemma: To Outsource or Not to Outsource

The real challenge lies in how to get there. Experience shows that it can be tricky for long-established CSPs (and service partners) to strike a balance between the operational consistency of ongoing legacy business and developing a new mindset. Success demands a profound cultural shift within traditional organizations, requiring teams that are historically focused on precision to embrace speed and incremental development, underpinned by the agile mindset of fail fast and succeed faster.

For some, relying on a partner to operate and transform their network operations with guaranteed business outcomes is the most attractive option — considering current macro-economic trends with increasing inflation rates and rising energy prices — than doing it by themselves. When you engage in an outsourcing model, predictability is high, both in terms of committed service levels and cost, over the next three to five years. Risk is also low, as an experienced partner delivers the transformation faster and carries the risk of change as well as that associated with initial investments. A solid partner invests in key technologies like cloud-native and artificial intelligence (AI) to stay relevant into the future while delivering today with a solid track record of field-validated results.

In Data We Trust…

The essence of the data-driven transformation of operations is the shift from the traditional network resource management model, based on a reactive incident-centric approach, into a new approach that revolves around turning data into predictions.

Model adoption, however, is no guarantee of success. Being clear about the vision of the transformation and having tangible and measurable business outcomes are practically even more important.

Data-driven operations transformation main benefits:

• Highest network performance.Network stability is the foundation of a good user experience, which can translate to a 15% ARPU increase for frontrunner CSPs.
• Lowest total cost of ownership (TCO).By optimizing the incident management in the NOC, data-driven operations are able to notably reduce the volume of work orders and site visits, focus the field force with surgical precision and resolve issues much faster from a remote location.
• Best customer experience.Together with the improved performance, this contributes to a better overall quality experienced by the subscriber, which is reflected by a notable reduction in customer complaints related to network or service quality.
• Less energy consumption.Leverages AI and advanced data analytics to optimize energy consumption across network infrastructure for CSPs, while also reducing site visits and curbing CO2 emissions.
• Highest security standards.With 5G increasingly turning mobile networks into the backbone of the digital society, telco-specialized security expertise is paramount for preventing, simplifying the handling of and accelerating the remediation of incidents.

Field-measured data from 20 CSPs’ transformation journeys powered by Ericsson Operations Engine between Q1, 2019 and Q4, 2022 clearly answers our initial question: “Data-driven operations: Does it pay off?” Yes, it does, and it has a significant impact on CSPs’ operations and business outcomes.

From a network performance perspective, data-driven operations reduce network unavailability by 34% while decreasing customer complaints by 21%. On the network efficiency side, the transformation led to a significant 12% reduction in work orders (WO) and 24% fewer truck rolls per node, which had an important impact on CO2 emissions.

Search “Ericsson Managed Services” to explore how Ericsson is unlocking the true potential of your network.