59 percent of service providers globally plan to invest in product lifecycle management solutions by 2015
Amdocs, the leading provider of customer experience systems and services, today released the results of a survey that focused on service provider current and future strategies in the area of product lifecycle management (PLM), as they look to resolve the complexity of managing multiple products and organisational stakeholders. The survey shows that the majority of service providers, globally, plan to invest in PLM solutions that can allow them to introduce and manage more products, faster and at a lower cost.
“Service providers struggling to launch viable product ideas are going to find it difficult to compete with more agile operators, let alone over-the-top (OTT) players and virtual network operators,” said Teresa Cottam, chief strategist at Telesperience. “It’s really important that service providers ensure they have an end-to-end PLM solution that can deal with the scale and complexity their business models are likely to bring, or the PLM bottleneck could choke future revenue streams.”
Key research findings reveal:
- PLM complexity is overwhelming: in reality, it takes an average of over two months more than expected to launch a new product and the involvement of 23 organisational stakeholders; 26 percent of respondents reported they didn’t know the cost of the process
- A massive revenue loss: service providers are investing an average of 10 percent of their revenue in PLM, but are able to launch only 48 percent of viable product ideas
- The single, centralised catalog approach is crucial: 47 percent of respondents said their companies have already begun centralising their product information and another 44 percent plan to do so within the next 24 months
- A move towards off-the-shelf: 44 percent of respondents said they intend to buy a commercial, off-the-shelf solution by 2015; only 16 percent intend to build a PLM solution in-house.
“The majority of service providers today use siloed, manual and semi-manual processes to manage their different products,” said Rebecca Prudhomme, vice president of product and solutions marketing at Amdocs. “The research shows they are losing twice. They are missing potential cost savings they could have achieved by moving to centralised and automated processes, and also the potential revenue from new products they could have introduced.”
Conducted for Amdocs by industry analyst firm Telesperience, the research surveyed 32 senior decision makers impacting product lifecycle management strategies of large service providers (each with more than 10 million subscribers) across 22 countries in Europe, Asia-Pacific and the Americas.
The Amdocs Product Lifecycle Management solution incorporates Amdocs’ market-leading Enterprise Product Catalog, which centralises all product information across a service provider’s business, a best-in-class Business Process Management (BPM) platform, and pre-integrated, business processes best practices, which cover lifecycle management for both simple and bundled products and span more than 100 different workflow activities.
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For more than 30 years, Amdocs has ensured service providers’ success and embraced their biggest challenges. To win in the connected world, service providers rely on Amdocs to simplify the customer experience, harness the data explosion, stay ahead with new services and improve operational efficiency. The global company uniquely combines a market-leading BSS, OSS and network control product portfolio with value-driven professional services and managed services operations. With revenue of $3.2 billion in fiscal 2012, Amdocs and its 20,000 employees serve customers in more than 60 countries.