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New Business Models Feature Editorial


July 09, 2010

Using Open Development Environments to Foster Innovation

By Susan J. Campbell, TMCnet Contributing Editor


Open development and innovation tend to be terms that go hand in hand in the telecommunications space as of late, but how does the former drive the latter and how can network operators drive this environment to leverage the benefits of innovation?


Traditionally, developers were critical of the high barriers to entry to arrive on the provider deck. There was a complex and lengthy approval process that was somewhat less than transparent. In addition, a number of devices required support and the need to support even the tiniest of apps demanded a full-blown business case. This was not friendly territory for developers.

Open development has changed the playing field. Device/OS players have completely changed the way developers bring applications to market through open development. This has changed the expectations for the developer and as a result, network providers must re-examine their approach to third party ACPs. 

Network providers adopting the new norms in driving open development and easy-entry processes understand that their role has changed. Network operators are no longer the sole architect of the end user's mobile experience and without the contribution of the developer; they won't be able to hold their market positioning.

Improvements in innovation are demanded, yet the costs to achieve innovation must be reduced. Much of the associated cost is wrapped up in control and those network providers who can relinquish control to allow developers to choose the branding, the pricing and the method of engagement with customers will benefit the most. 
While this is certainly a new playing field for network operators, those who can embrace the new paradigm are learning from the Web on how to improve their competitive positions against the new device/OS players. It is imperative that network providers attract the broadest range of developers and simultaneously increase the portion of their customer base that actively access and use applications.

Open development and a large user base will ultimately attract innovative developers. The benefit for the network provider is that user numbers will increase as more and more customers are attracted to compelling new services and applications. The provider must also keep in mind that while this approach is desirable, it still demands the implementation of a new business model.

Even with these promises in place, developers still have a concern over fragmentation. This fragmentation is often occurring across a variety of dimensions, including differences in device runtime environments, differences in network provider and system APIs and differences in commercial agreements with providers. These concerns can be calmed when the network provider takes the initiative to address OS/middleware commonality.

This is an increasingly data-driven world and in order for the network provider to succeed, they must be able and willing to adapt to change. One of the most important changes is moving to open development. It will require a change in approach, business model and even thinking, but the resulting customer loyalty, additional revenue streams and market share will make it worth the shift.



Susan J. Campbell is a contributing editor for TMCnet and has also written for eastbiz.com. To read more of Susan's articles, please visit her columnist page.

Edited by Erin Harrison





 
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