The B2B global market opportunity represents around $5 trillion dollars. However, as we predicted, due to market factors such as open digitalization, B2B customers are demanding more from their providers; more agility, more complete E2E support and more automation. The key to unlocking the B2B opportunity therefore lies in CSPs transforming their OSS/BSS processes. A modern, digital BSS is crucial for CSPs to remain competitive, cut costs, and expand into new business domains like AI and cloud connectivity.
This four-part series explores how BSS transformation is essential for driving B2B growth for CSPs, beginning with the current landscape and opportunities CSPs need to capitalize on.
B2B is not new for telcos; it already constitutes around 20% of their average revenue. However, the market is evolving, presenting CSPs with a critical crossroads. On one side, traditional connectivity services are experiencing declining demand, leading to reduced revenues. This shift is compelling CSPs to become more cost-efficient to maintain profitability in a shrinking market. On the other side, the growth potential is undeniable, particularly in ICT services, cloud solutions, and the expansion of 5G networks. These new avenues present substantial opportunities for CSPs, but they require significant investment.
The challenge for CSPs is to balance these conflicting priorities: the need to cut costs while simultaneously investing in future growth areas. They must navigate this balancing act carefully until they can demonstrate a compelling business case for increased B2B investments to their management. Only by proving the long-term value and profitability of ICT, cloud, and 5G services in the B2B space can CSPs secure the necessary funding and organizational support needed to fully transform their BSS. Success will depend on their ability to strategically manage resources and make targeted investments that align with market demands and emerging technologies, while also proving their potential to deliver sustainable revenue growth.
Let’s look a bit closer at the market landscape. Historically, legacy B2B services such as Voice and MPLS have formed the backbone of CSPs’ offerings. However, as businesses shift to digital and cloud-based solutions, these traditional services are losing relevance and profitability. CSP customers now seek more agile, scalable, and cost-effective options like cloud connectivity, which offer more flexibility and efficiency compared to legacy technologies. This shift is not merely a trend; it is an inevitable transformation as businesses become more digital, and it requires CSPs to adapt quickly.
With the decline of these traditional services, CSPs must urgently find new growth engines to replace lost revenue and create future opportunities. Emerging BSS opportunities such as AI, 5G and cloud services present new avenues for CSPs, with the sector seeing an average growth rate of 5%. By modernizing their BSS infrastructure, CSPs can pivot from being traditional telecom providers to becoming comprehensive ICT service providers, capturing a larger share of the growing B2B market.
To effectively compete in this new environment, cost efficiency and automation are critical. A digital BSS will ideally enable CSPs to streamline operations, reduce errors, and cut SG&A costs. For instance, modern CPQ systems and guided digital journeys (from sales to customer onboarding) should allow CSPs to reduce manual intervention, lower the cost of sale, and improve overall efficiency. Automation and digitalization of BSS processes lead to faster, more accurate order fulfillment, which is vital for maintaining service quality in a highly competitive market.
A digital BSS should also provide the agility needed to bring new products to market fast. With an integrated BSS solution, CSPs can manage the entire customer journey, from acquisition to service management and renewal, through seamless digital experiences. This reduces operational overhead while enhancing the customer experience. It also allows CSPs to expand their capabilities to support complex products and hierarchical customer structures, which are increasingly important as businesses demand more customized and intricate solutions.
Beyond cost efficiency and automation, the ability to build and manage partnerships is another key benefit of a digital BSS. Today’s CSPs need to operate within a larger ecosystem of suppliers, resellers, and channel partners. A digital BSS can provide the necessary tools to integrate and manage these partnerships effectively, enabling CSPs to expand their reach and service offerings. For example, through partner management and orchestration capabilities, CSPs can offer new solutions in collaboration with other technology providers, further expanding their ICT portfolios.
With Beyond Now’s SaaS BSS platform, we were able to work with our customer – one of the largest operators in the Netherlands – to replace their legacy BSS and leverage our cloud-based solution. Our comprehensive digital BSS enabled them to partner with third parties to seamlessly co-create and co-sell new solutions to their SMB and enterprise customers, benefiting from faster time to market and improved ability to scale operations.
By digitalizing the customer lifecycle management process, CSPs can empower customers with self-service options that allow them to manage their entire lifecycle—from contract renewals to service additions—through an intuitive interface. This level of digital engagement not only reduces the burden on CSPs but also enhances customer satisfaction and retention. A digitalized product catalog will allow CSPs to provision and monetize complex products efficiently, ensuring they remain relevant in an ever-changing digital marketplace.
AI is becoming an essential component in the digital transformation of BSS. With AI-driven automation, CSPs can further enhance efficiency and accuracy across their operations. AI enables hyper-personalization, allowing CSPs to offer customized services and solutions based on customer behavior and preferences. By leveraging AI, CSPs can minimize order fallouts, improve order accuracy, and streamline complex B2B processes, ultimately reducing operational costs and boosting profitability.
Offering a complete digital experience to customers at every stage of their journey will improve NPS and customer satisfaction for CSPs, positioning them as strategic partners for enterprises and SMBs seeking to digitalize their operations.
The transformation of BSS systems is not merely a technical upgrade; it is a strategic move for CSPs looking to thrive in the evolving B2B market. By adopting a digital BSS, CSPs can simultaneously cut costs, enhance automation, build the capabilities needed to support new growth engines like 5G and AI, and offer bespoke customer experiences. In part 2 of this series, we’ll look at the next generation of BSS in depth, review the features CSPs can use to unlock their full growth potential in the B2B space, and define how a digital BSS can empower CSPs to lead in the digital era.
To learn more about transforming to a digital BSS with Beyond Now, book a demo today:
