Why Modernizing Makes Sense

Complicating factors like these aside, adopting a cloud-based ERP system as part of an IT infrastructure modernization program can be a wise strategic move for a range of reasons, as companies like BT and Tbaytel have discovered. Here’s a closer look at some of the benefits a telecom company can expect by shifting business software to the cloud:

•        Operating a “clean core,” so processes across the business are synched, streamlined, uncluttered and infused with industry-standard best practices that come embedded within the core software, rather than bogged down by costly, overly complex customizations and clunky extensions. Having a clean core reduces total cost of ownership and enables companies to readily implement and scale new capabilities as they become available. Tbaytel, for example, opted for a greenfield implementation with its new ERP system, so it could enter a streamlined cloud environment where it can add to its digital core with new capabilities as needed. By doing so, it is building technology equity instead of technology debt.

•        Rapid deployment. Standardized cloud-based software can deploy quickly, with minimal need for internal resources, and scale readily, reducing time-to-value. Scalability makes it easier to expand into new markets or services like streaming platforms, 5G and Internet of Things offerings. Cloud software also comes with standardized industry processes built-in, and with extension options that can add value without disrupting system upgrades. 

•        Support for new business models. Opportunities abound for telecom companies to monetize their infrastructure and positioning with new business models and revenue streams based on technologies like IoT, 5G, WiFi7, and edge computing. Developing and sustaining these new models requires a solid yet flexible business software infrastructure. That could include, for example, the flexibility to create a two-tier ERP model that accommodates processes that are unique to a new business unit while still leaving core processes and systems (general ledger, procurement, HR) intact and integrated across the organization. More telcos are adopting such an approach for new business units, such as one built around digital healthcare, for example. That business unit still uses the same core ERP as other company subsidiaries, but has differentiated order-to-cash processes to support its unique business model. The two-tier model might also work for a company’s newly spun-off network infrastructure-focused business unit, for example, providing it with a measure of autonomy for an eventual sale.

• Accessing advanced artificial intelligence capabilities. A reliance on legacy on-premise systems can hamstring a company’s ability to adopt AI and automation capabilities, most of which reside in the cloud. With a cloud ERP system, on the other hand, AI capabilities, including genAI, come native and embedded within the software, so companies can explore the power of AI without expending additional resources to develop or buy separate AI software. That includes AI for functions like trend prediction, profitability analysis, customer support, and service optimization. It also includes development operations, where AI can perform coding inspection and simplify and speed internal development projects.

·        Improved collaboration with external stakeholders. Via a cloud ERP platform, a telco can connect with vendors, contractors, dealers and other parts of the value chain as part of a business network so they can exchange information and collaborate around key areas like supply chain management. 

• Simplified data access. When systems are connected in the cloud, a company can easily establish and follow digital threads across various aspects of the organization. That could include establishment of a “green ledger” to track the carbon footprints of specific products, business units, and the company as a whole for regulatory reporting and to showcase responsible environmental stewardship. 
• Data security. The cloud’s built-in data protection reduces risk around sensitive information. In the cloud, companies also can meet data sovereignty/residency requirements with a sovereign cloud solution.

Put all this together and you get a highly compelling case for telecom companies to shed outdated business software infrastructure in favor of a simpler, seamless cloud environment that is readily adaptable to their shifting strategic priorities, changing customer needs, and the rapidly evolving telecom industry landscape.