Most communication service providers (CSPs) can identify with the challenges presented by existing IT systems that were built in silos due to past organizations, strategies, and acquisitions. Telecom Italia recently shared how they were able to overcome these challenges within their contracting processes by unifying their existing IT systems. As a result, the business gained the agility to offer new solutions and services to their top enterprise clients. It also allowed IT to evolve their existing IT systems at a lower risk. This project exemplifies what I call the Two-Speed IT approach.
In order to capitalize on the enterprise business opportunities, organizations must take a new approach to IT modernization and move at “digital speed”. In this two-speed approach, modern agile methodologies and development capabilities form a top layer over the existing application silos. This “digital layer” enables changes at the speed demanded by the business. Business analysts and product managers work in a model-driven environment to make changes to the digital layer without writing any code. The business manages the user experience, business process, and business rules and as a result can easily launch products, respond to a competitor, and change sales processes in days rather than months.
"In order to capitalize on the enterprise business opportunities, organizations must take a new approach to IT modernization and move at 'digital speed'"
Meanwhile a second layer comprising core BSS/OSS and CRM systems is modified at “industrial speed”. Operating at a safer and steadier pace, IT can simplify, upgrade, or retire legacy systems to guarantee future flexibility and scale. IT can also focus on platform modernization initiatives such as enterprise catalog, unified customer information, and big data analytics. Working in a more technical environment, IT can define application services that allow the digital and industrial layer to connect. This opens up the business and IT to a new, collaborative model of working together.
In our experience this approach can be very effective at CSPs. However, CSPs cannot underestimate the transformation that will occur. It goes far beyond agile application development. It is a cultural shift for your IT and business organization. To learn more, I recommend that you watch Telecom Italia’s PegaWORLD breakout session in which they describe the impact of their transformation from a traditional methodology to a new, Two-Speed IT approach.