The Application and Content Value Chain
These days, everyone wants to be part of the fast-evolving content and application value chain. For service providers, tapping new markets and securing a stronger position in this value chain are quickly becoming top priorities.
Collaboration offers service providers new paths to success. By combining their network assets with the strengths of advertisers, application developers, content providers and enterprises, service providers can:
- Harness the speed and innovation of the Web to capture new revenue opportunities
- Address demand for compelling enterprise and consumer applications
- Reach new markets and gain a stronger foothold in the application ecosystem
- Build a developer ecosystem that benefits everyone
Stake a claimOver the next five years, it is estimated that consumers’ willingness to pay for services with high-value network capabilities could translate into more than US$100 billion in revenue in the United States alone. Read more in The Shift.
Learn more about how service providers are positioning themselves strategically in the Application and Content Value Chain.
The network has value
Every day, billions of people rely on networks to enhance their lives. The innovations they enjoy are the products of a thriving content and application value chain in which service providers play a vital role. This role is growing as other players seek to leverage service providers’ assets to add value to their offerings:
- Developers can access network assets, subscribers and partners to help expand their application innovation reach. They can also leverage service providers’ network reliability, billing services, and trusted relationships with a wide customer base to access customers who want their applications.
- Application and content providers (ACPs) need first-rate quality of service (QoS) to deliver the quality of experience (QoE) that customers demand.
- Advertisers need access to opt-in subscribers and their preferences and information to improve their targeting capabilities.
- Enterprises and strategic industries need identity management, reliability, and security to create safer, more personalized applications for their customers and employees.
- Consumers need networks and services that can support more multimedia-intensive applications and content.
Evolving the traditional model
Everyone’s needs are evolving as application and content consumption grows. The traditional model, where service providers control the innovation process in-house, is giving way to a more open environment in which trusted partners each share their unique value.
Recent research conducted by Alcatel-Lucent and Light Reading suggests that service providers could further accelerate the shift toward open innovation. When over 100 telecom executives were asked if they offer open interfaces to third-party ACPs and developers, only 41 percent said “yes.” In addition, most still rated in-house development above third-party partnerships in terms of importance to service innovation.
Yet service providers understand the need
Service providers’ are changing their views on how best to accelerate service innovation. For example, the same executives were asked to identify the most competitive attributes of ACPs and developers. Topping the list were best processes for service innovation and faster service delivery models.The developer community is starting to look more favorably on service providers as they open up their networks and implement application store capabilities. Developers are responding by building network capabilities — such as presence services, location-based services and preference information — into their new applications.
Building Toward the Future
Drawing on decades of industry experience, Alcatel-Lucent synthesizes a wide range of information from service providers, developers, advertisers and content providers around the world. Our knowledge and expertise — backed by our Bell Labs modeling team — can help you claim your place in the application and content value chain.
For ideas on how you can position yourself in the new content and application value chain, check out our recently published book, The Shift: The Evolving Market, Players and Business Models in a 2.0 World. To get the latest news on The Shift — including blog posts from our thought leaders — visit www.theshiftonline.com.We want to help you transform the way you do business. To learn more, check out the Application and Content Value Chain Knowledge Center.