IDC says better Fixed Asset Management could boost Service Provider Digital Transformation
BRIDGEWATER, NJ – November 19, 2018 – A new white paper from leading analyst house IDC, calls on service providers to focus more closely on Fixed Asset Management (FAM) to improve financial planning, avoid wasted capital expenditure, and enable investment to speed up digital transformation. As part of its research, IDC also accessed iconectiv’s TruOps Common Language Fixed Asset Management Solution.
According to the whitepaper, a significant percentage of operator CapEx is wasted every year due to inefficient utilization of equipment linked to poor planning and ineffective lifecycle management. In a highly capital-intensive industry, where the majority of service provider CapEx is spent on telecom equipment, the white paper says FAM has become a critical financial management issue.
IDC notes that the potential for improved financial management of existing assets to release funds for investment in new technologies such as 5G and the IoT must not be ignored. Furthermore, treating fixed asset management as an enabler of digital transformation, says the report, will allow telecommunication service providers to drive operational efficiency gains across business functions and facilitate short-term, tactical and strategic decision-making.
“Implementing a world-class Fixed Asset Management strategy,” said Eren Eser, Principal Analyst IDC MEA region, “will help service providers extend equipment life-cycles and maximize the value of existing investments. It will also minimize inventory loss and improve both financial accounting and regulatory compliance. Combined, these benefits can help propel investment towards new technology and digital transformation gains.”
Richard Jacowleff, President and CEO of iconectiv, welcomed IDC’s findings and the breadth of the IDC analysis. “Service providers face significant challenges on the road to digital transformation,” said Jacowleff, “but there are market solutions that can integrate with other business planning tools to improve overall financial and network management performance – and therefore help to better direct network investment.”
IDC particularly highlighted that to make the transition to a digital services provider, operators will need to be able to accurately register and track both tangible and intangible network assets. This will require addressing the subjective and inconsistent approach that is currently in use the white paper says.
In addition, the white paper adds that to fully utilize the benefits, it has become vital to be able to integrate asset management solutions with other enterprise applications such as Supply Chain Management and Enterprise Resource Planning software.
Within the white paper, IDC also assessed iconectiv’s TruOps Common Language Fixed Asset Management Solution and said it could help telecoms service providers avoid many of the pitfalls that come as a result of incomplete or inaccurate asset management information.
“The iconectiv solution enables asset management by sufficiently identifying, tracking and monetizing assets across company lines and even across borders for an international group of networks,” said Eren Eser. “Its ability to provide a shared view of the assets – including the virtual ones – helps keep large organizations with lots of working parts operating seamlessly and with maximum efficiency.”
“There’s no doubt that properly integrated asset management solutions can help service providers maximize existing network assets and focus investment where it is most needed to help transform their businesses,” he added.
Already adopted by many of the world’s savviest service providers, TruOps Common Language covers more than 450,000 network equipment items, including virtual ones, and has some 13 million global location codes. The solution enables service providers to accurately manage network assets and maximize use of the spare parts inventory within a network or an operator group. TruOps Common Language solution supports both the management of fixed network equipment and virtual assets such as software licenses. It also integrates with other enterprise software applications.
Download the white paper to read more about the changing landscape of the telecommunications industry, challenges faced by service providers, the importance and benefits of a FAM solution and essential guidance to remain competitive.