Changing the economics for Digital

November 20, 2015 by Oisin O'Connor


New_Economics_for_Digital_eBook_Image_LP-651360-edited-671981-edited.pngToday's digital consumers have different expectations from their service providers and this is forcing a rethink around the value that traditional Business Support Systems (BSS) deliver.  BSS costs are not insignificant, equivalent to approximately 3% of annual revenues, and many service providers are having a good look at whether this investment will ever deliver a real-time digital experience that can match Skype and Uber.
 

MATRIXX_New_economics_for_Digital_ebook_Chart_V2-853325-edited.jpg

Fig 1: Typical BSS cost breakdown. The key drivers of the cost to serve are the hardware/software costs associated with maintaining and changing heavily customized software.

This new approach can reduce the cost to serve each customer transaction and allow the digital service provider to focus on the things that mater, such as delivering a market leading mobile app experience and packaging the right offers to customers at the right time.

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