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ERICSSON
TECHNOLOGY
DIGITAL
CONNECTIVITY
MARKETPLACES
C H A R T I N G T H E F U T U R E O F I N N O V A T I O N | # 4 ∙ 2 0 1 8
Consumer
Producer
Consumer Consumer Consumer
Digital connectivity platform
Digital connectivity marketplace
Cloud services market
Operation support
services market
Business support
services market
Application &
enablement
market
Information
market
Connectivity services market
✱ DIGITAL CONNECTIVITY MARKETPLACES
2 ERICSSON TECHNOLOGY REVIEW ✱ APRIL 26, 2018
MALGORZATA
SVENSSON,
LARS ANGELIN,
CHRISTIAN OLROG,
PATRIK REGÅRDH,
BO RIBBING
Digitalization is undoubtedly one of the most
significant forces for change of our time,
characterized by a wide variety of smart
devices and applications that touch all
possible areas of life. Now, new technologies
such as the Internet of Things (IoT), artificial
intelligence, wearables and robotics are
driving an accelerating digital transformation
in which core processes across virtually all
businesses and industries are becoming more
distributed,connectedandreal-timeoptimized.
■Businessesneednetworksthatcanprovide
themwiththefoundationtooperatethenew
transformingbusinessmodels.Digitaltransformation
requiresnetworkcapabilitiestosupportabroad
spectrumofdifferentuserscenarios.Coverage,
speed,latencyandsecurityaresomeofthekey
parameters,alongwithnewnetworkfunctions
foreffectiveprocessingofdataanddistributionof
applicationsandfunctionsfaroutinthenetwork.
5Gbringstheabilitytorealizeawidevariety
ofconnectivityandnetworkservicestomeet
theperformancerequirementsoftomorrow’s
digitalindustries.
Withnetworkscapableofsupportingan
unlimitedsetofservicesandusecases,ithasbecome
increasinglyclearthattraditionalmass-market
serviceswillsoonbeathingofthepast.Looking
forward,networksmustbeviewedasahorizontal
foundationorplatformonwhichbusinessescan
One of the key growth opportunities for the telecom industry is to provide
network capabilities that support the digital transformation underway
in most businesses and industries. Already today, we have a powerful
technology foundation in place, and this will become even stronger with 5G.
Now is the ideal time to evolve the business side of the equation toward
platform business models, which will enable the telecom industry to prosper
in multisided business ecosystems as well.
Digital
marketplacesTO ENRICH 5G AND IoT
VALUE PROPOSITIONS
connectivity
DIGITAL CONNECTIVITY MARKETPLACES ✱
APRIL 26, 2018 ✱ ERICSSON TECHNOLOGY REVIEW 3
consumenetworksjustasotherICTcapabilities
areconsumed.Thebusinessmodelofthefuture
willlookmorelikecurrentaaSmodelsforotherparts
oftheICTsector. Thecurrenttelecombusinessmodel
mustevolvesignificantlytoworkinthisnewmarket
realitytoplacetelecomcompaniesinabetterposition
tocapitalizeonnewbusinessopportunities.
Thecaseforbusinessmodeltransformation
Formanyyears,thetelecomindustryhassuccessfully
beenoperatinginwhatisbestdescribedasavertical
businessmodel.Inthismodel,telecomoperators
havedeliveredend-to-end(E2E)standardized
servicestoconsumersunderlong-termcontracts
andcompetedwithinnationalboundaries.
Thecollaborationbetweencommunication
serviceprovidershasgenerallybeenlimitedto
interoperabilityandroamingforthepurposeof
globalservicereachandtodrivetechnologyand
marketscale.Itisreasonabletoexpectthe
traditionalmodusofcollaborationtocontinue
toservetheindustryintheyearsahead,butitis
alsoclearthatthisframeworkisnotfittoexplorethe
fullvalueofnetworkinfrastructure.Richconfiguration
variancesandmorecomplexserviceswillinmany
casespushdemandbeyondthecapabilityofasingle
Terms and abbreviations
aaS–asaService|B2B–business-to-business|B2C–business-to-consumer|BSS–businesssupportsystems
|DCP–DeviceConnectionPlatform|E2E–end-to-end|IoT–InternetofThings|OSS–operationssupport
systems|SLA–ServiceLevelAgreement
Definitions
〉〉	Consumer:auserassociatedwithacompanythatpurchasesservices/productsexposedbytheplatform/
marketplace.Aconsumercanbeanindividualand/oranorganization.
〉〉	Producer:asupplierofservices/productstoaplatform/marketplace.Aproducercanbeanindividualand/
oranorganization.
〉〉	Platformprovider:anorganizationthatmanagestheplatform/marketplace.
〉〉	Platform/marketplace:theentitythatexposestheservicesoftheplatform.Theexposedservicesarea
compositionofplatformservicesandservicessuppliedbyproducers.
〉〉	Digitalconnectivitymarketplace:themarketplacethatoffersvariousconnectivityservicesandconnectivity
serviceenablerstoenterprises.TheenterprisesmayrequireIoTcapabilities.
〉〉	Cloudservices:asetofservicesincludingstorageandcomputation.
〉〉	Digitalization:theuseofdigitaltechnologiestochangeabusinessmodelandprovidenewrevenueandvalue-
producingopportunities.Itistheprocessofmovingtoadigitalbusiness.
✱ DIGITAL CONNECTIVITY MARKETPLACES
4 ERICSSON TECHNOLOGY REVIEW ✱ APRIL 26, 2018
provider,aswellasbeyondthescopeofwhatis
possibletorealizewithtraditionalinteroperability
andfederationmodels.
Inlightofthis,itisnecessarytoevolvetoward
anewcollaborationframework–onethatoffers
serviceprovidersanenvironmentwheretheycan
dynamicallyaggregatecapabilitiesfrommultiple
sourcesintothetailoredsolutiontheyrequireto
enabletheiruniquedigitalizationjourney.
Suchamodelmustexcelinservingtheuniqueand
varyingneedsofconsumersaseffectivelyaspossible
andincludevaluecontributionfrominnovation
partners.Itmustalsomeetanewsetofrequirements
toeffectivelycreateandcapturevalue.Someofthe
mostcriticalaspectsare:
〉〉	simplicityforserviceproviderstodefineandconfigure
theirownconnectivityandnetworksolutionregardless
ofunderlyinginfrastructureandplayerboundaries.
〉〉	opennessforserviceproviderstoeasilyintegrateand
dynamicallyadjusttheirsolution,includingtheneeded
management,intotheirdigitalbusinessprocesses.
〉〉	well-structuredexposureofenhancedconnectivity
andnetworkcapabilitiessuchasdistributedcloud,
edgeanalytics,andsoon,forrapiduse-caseinnovation
andvaluecreation.
〉〉	easyexchangeofdigitalassetssuchassafeandsecure
tradeofdataacrossdifferentplayers.
〉〉	attractivecomplementforoperatorstoexplorecurrently
unaddressablebusiness/marketsbeyondthevertical
businesstheytraditionallyruntoday.
〉〉	creationofanenvironmentwhereinnovationthrives
tothebenefitofallbusinessmodelparticipants.
Toeffectivelymeettheseandotherrequirements,it
isobviousthattheestablishmentofsuchabusiness
modelisbeyondtheabilityofasingleplayeror
company.Instead,itmakesmoresensetolookata
businessthatisdesignedlikeaplatformwherea
multitudeofplayers,producersandconsumerscan
coexistandgainmutualbusinessoutcomes.Inthis
scenario,theplatformisbothamarketplacethat
supportsthebusinessofitsstakeholdersinthemost
effectivewayandalsoaninfrastructurethat
facilitatesandsimplifiesthesemultisided
relationshipswitharangeofkeyfunctionalities.
Multisidedconnectivityplatforms
Multisidedplatformsbringtogethertwoormore
distinctbutinterdependentgroupsofconsumers
andsuppliers.Suchplatformsareofvaluetoone
group(consumers,forexample)onlyiftheother
group(suppliers,inthiscase)isalsopresent.A
platformcreatesvaluebyfacilitatinginteractions
andmatchmakingbetweendifferentgroups.A
multisidedplatformgrowsinvaluetotheextentthat
itattractsmoreusersanditmatchmakesone
consumer’sneedswithservicesandproducts
offeredbymultiplesuppliers;aphenomenonknown
asthenetworkeffect.
Thetelecomindustryalreadyoffersavastvariety
ofconnectivityservices,and5Gtechnologieswill
acceleratethedevelopmentofnewones[1]
characterizedbythedifferentcapabilitiesthatthe
variousindustriesrequire.Theconnectivityservices
of5Gwillberealizedbymeansofnetworkslicing.
Webelievethattailoredconnectivityserviceswith
MULTISIDEDPLATFORMS
BRINGTOGETHERTWOORMORE
DISTINCTBUTINTERDEPENDENT
GROUPSOFCONSUMERSAND
SUPPLIERS
DIGITAL CONNECTIVITY MARKETPLACES ✱
APRIL 26, 2018 ✱ ERICSSON TECHNOLOGY REVIEW 5
diversecharacteristicswillbenecessaryfor
enterpriseswithintheindustriestodigitalizetheir
operationalandbusinessprocesses[2].
Digitalizationofenterprises’businessand
operationrequiresnotonlyconnectivityservicesbut
alsovariouscloud-basedserviceslikecomputation
andstorage,wherecompanies’operationsand
businessapplicationscanbehosted,deployedand
operated,orwhereenterprisescanbenefitfromthe
cloudservices’capabilitiesofferedinthesoftwareas
servicebusinessmodel.
Thefullpotentialof5Gconnectivityandcloud
servicescanbereachedwhentheyareexposedon
fullydigitalmultisidedconnectivityplatforms
(marketplaces),asshowninFigure1.Inthisway,the
services–andconsequentlytheindustries–will
benefitfromthepresenceofavastrangeofother
servicessuchasinformationandapplication
enablementservices,aswellasbusinessand
operationsupportcapabilities.Theconnectivity
marketplacewillcomplementthefederationmodel
forconnectivityandbridgethegapwherethe
existingfederationmodelisnotenough.
Thedigitalconnectivitymarketplacewillenable
newbusinessmodelsbyprovidingcapabilitiesfor
theexchangeofinformationandconnectivity
enablingservicestoecosystemsofconsumers
andsuppliers.
Figure 1: Digital connectivity marketplace: multisided platform
Consumer
Producer
Platform
provider
Consumer Consumer Consumer
Digital connectivity platform
Digital connectivity marketplace
Cloud services market
Operation support
services market
Business support
services market
Application 
enablement
market
Information
market
Connectivity services market
✱ DIGITAL CONNECTIVITY MARKETPLACES
6 ERICSSON TECHNOLOGY REVIEW ✱ APRIL 26, 2018
Ourvisionofthefuturedigitalconnectivity
marketplaceisthatitwillofferinteractionbetween
producersandconsumersbyexposingthe
connectivityandcloudservicesononeside,and
collectingtherequirementsfromconsumersand
matchmakingthemagainstthecapabilitiesofthe
servicesontheother.Theplatformwillfacilitatethe
interactionsbyprovidingbusinessandoperation
supportservicestobothproducersandconsumers.
Theservicesexposedinthemarketplacecouldbe
suppliedbymultipleproducersowningthenetworks
andinfrastructuresrequiredtoproducethese
services.Theconsumersrepresentingvarious
industrieswillrequireconnectivityandcloud
servicestodigitalizetheirbusinessand
operationalprocesses[2].
Consumerservicesofferedbyproducers
Asdiscussedabove,thefuturemultisided
connectivitymarketplacewilloffercapabilitiesto
exposeconnectivityandcloudservicesthatmay
beprovidedbymultipleproducers.Inthecontext
of5G thefollowingtypesofconnectivityservices
maybeexposed:massivemachinetype
Figure 2: Graph model: how industry requirements can be linked with connectivity services
Digital connectivity platform
Matchmaking
Subscription
Application
Capability
Technology
Technology
Capability
Capability
Assets
Service
Subscription Producer
Producer
Consumer Subscription
x
Subscription
y
Producer
y
Data
volume
Throughput
Latency
Producer
x
Subscription
Subscription
z
4G
Connectivity
Vehicle
Logistics
Edge
compute
5G
DIGITAL CONNECTIVITY MARKETPLACES ✱
APRIL 26, 2018 ✱ ERICSSON TECHNOLOGY REVIEW 7
communication(alsoknownasmassiveIoT),
mission-criticalmachinetypecommunication
(alsoknownasmission-criticalIoT)andextreme
mobilebroadbandservices.Therewillbeaneed
tocomplementtheconnectivityservicesprovided
byotherstobeabletoofferthedesiredvalue
propositionandsatisfyindustrydemands.
Securitywillremainoneofthetoppriorities
associetiescontinuetoconnecteverythingfrom
autonomoustruckstoelevatorsandventilation
systems.Isolationtechniquessuchasautomatic
networkslicingarelikelytoplayakeyrolein
reducingsecurityrisks,togetherwithmachine-
learning-basedingressfirewalls,possiblyembedded
asvirtualnetworkfunctionsinoperators’networks.
Makingtheplatformattractive
andefficienttooperate
AtEricsson,weforeseethedigitalmarketplaceas
thefoundationofanecosystemofmanyconsumers
andprovidersfromamultitudeofindustries.
Thisimpliesthatindustrieswillrequirecapabilities
toexpresstheirrequirementsinlanguagesand
contextsthatarespecifictotheirbusinessand
operationalenvironments,asopposedtoneeding
telcoandcloud-domainknowledgetobeableto
chooseordefinetherequirementsonthe
connectivityandcloudservices.
Themultisidedcharacterofaplatform–andits
matchmakingabilities–willmakeitwellsuited
toprovidethesecapabilities.Theplatformwill
matchindustry-specificrequirementswith
servicecapabilities.
Thematchmakingfunctionusestherelatively
oldresearchareaofgraphtheory,boostedbyits
explosioninusageandimplementationinsocial
networksinrecentyears.ThemodelinFigure2
showsanexampleofhowconsumerrequirements,
modeledasgraphedges,arelinkedwithservices,
thentechnologiesandconsequentlysubscriptions.
Bydefiningeachserviceasavertexinagraph
whereedgesconstituteaconsumer/producer
relationship,itispossibletomodelcomplexvalue
chainsorrelationshipsbetweenservices.
Givenasetofrequirementsmodeledasvertexes
withconsumptionneedsas“danglingedges,”
wecanfindanefficientsubsetofthegraphwhich
fulfillstheseneeds,ifatallpossible.Byalsomodeling
non-functionalaspectssuchaslocation,latency
andthroughput,wegetagenericallyapplicable
mechanism.Thisgivesrisetotremendous
possibilitieswhereamultitudeoflooselyconnected
playerstogetherenableanefficientE2Eservice,
asadynamicallyconstructedvaluechain,capable
ofreachingfarbeyondwhatiscurrentlypossible.
Therearemanyimplementationoptions,including
capabilitiesforlife-cyclemanagementtoensurethat
consumersandproducers,joinedbymarketforces
andtheplatform,provideasuitablemixofstability
andinnovation.
SECURITYWILLREMAIN
ONEOFTHETOPPRIORITIES
ASSOCIETIESCONTINUE
TOCONNECT
✱ DIGITAL CONNECTIVITY MARKETPLACES
8 ERICSSON TECHNOLOGY REVIEW ✱ APRIL 26, 2018
Datalakesandanalyticsareusedtoexecute
matchmaking,asshowninFigure3.Analytics
serviceswillmakethefutureplatformdatadriven,
astheywillbeexposedforusebyeitherconsumers
orproducerstohelpthemevolvetheirservices.
Atthesametime,theconsumersorproducers
providetheplatformwithextendedinsightintohow
producers’servicesareused,potentiallyhelping
improvetherecommendationssupportingservice
discoveryandmatchmaking.
Acommonsolutionforprovidingidentification
isyetanotherimportantcomponentoftheplatform
totrulysupportscaleandinnovativecombinations.
Federationofidentitiesisakeyservicewhen
consideringnewservicecombinations.Authorization
foraconnectionbetweentwothingswilllikelytake
bothsoftwarefingerprintingandbehavioralanalysis
intoaccountifthisfunctionalityisavailableina
“thingmanagement”systeminatrustedrelationship.
Securitysolutionswillenablethesafeandsecure
tradeofdatabetweendifferentplayersandthe
exchangeofdigitalassets[3].Trustfacilitieswill
enablesecuretransactionsbetweenconsumers
andproducers.Analyticsinsightintheshapeof
fraudmanagement,combinedwithanovelform
ofanalyticsinsightpredictinglikelihoodofsuccessful
serviceactivation,willbethekeyfortheplatform
providertobeabletomanageriskwhenbridging
thetrustdivide.
Serviceexposurewillsecureopennessfor
consumerstoeasilyintegrateanddynamicallyadjust
theirsolutionsandservices,includingtheneeded
management,intotheirdigitalbusinessprocesses.
Businesssupportplatform
Thebusinesssupportplatformcomprisesmanythings
forbothproducersandconsumers:theirentirelife
cycle,interactionsandmanagementwhileinabusiness
Figure 3: Digital connectivity platform
Digital connectivity platform
Matching engine
Serviceexposure
Service activation Service configuration
Service capability matchmaking
Consumer/producer service management
Consumer/producer managementInteraction management
IdentitymanagementSecuritymanagement
Assetmanagementintegration
CloudserviceintegrationConnectivityserviceintegration
Service assurance
Business support systems
Operations support systems
Data lake and analytics
DIGITAL CONNECTIVITY MARKETPLACES ✱
APRIL 26, 2018 ✱ ERICSSON TECHNOLOGY REVIEW 9
relationshipwiththeplatform;theentireservicelife
cycleoftheonboardedproducerandconsumer
servicessets;andself-servicesfortheaforementioned.
Oneofthemostcriticalcapabilitiesiscontracting,
duetothefactthatthemixofservices,SLAsand
pricingschemesiscomplexandcontractsare
frequentlynegotiatedandrenegotiated.Thebusiness
supportplatformsimplifiesbusinessbyusingonly
bilateralcontractsbetweenparties–thatis,a
business-to-business(B2B)contractbetween
anytwoofthethree:theproducer,theconsumer
andthemarketplaceprovider.B2Ccontractsare
applicableiftheconsumerisaprivateindividual
andnotanenterprise.Whilebusinessvaluechains
areoftenreferredtoasB2B2x,thecontracting
arrangementsupportingthemisasetoflinked
B2BandB2Ccontracts.
Inaddition,themarketplaceallowsforapartyto
actasaconsumertopurchaseservices,orchestrate
themintoanewservice,andoffertheorchestrated
serviceontheplatformasaproducer.Apartyina
producerrolecanalsoactasaconsumerforits
resourceneeds.ThisresultsinaseriesofB2Cand
B2Bcontracts,whichistheessenceofavibrant
ecosystembuiltontheplatform.Thecontractingand
contractmanagementprocessesarefullyautomated.
Operationssupportplatform
Theconsumerandproducerservicesthatenablethe
networkcapabilitiessuchasdistributedcloud
andedgeanalyticswillbeexposedusingservice
exposure,therebyenablinginnovationand
valuecreation.
Thedependenciesbetweenservicesare
automaticallyinferredthroughservice-level
assurance,andthecombinedanalyticsofthe
differentservicesprovidesinsightintoperformance
atseverallevels.Thismayallowfine-tuningofSLAs
basedonheuristicsandhelpfuelinnovationby
managingandprovidingtransparencywithregard
torisk.Anetworkorserviceoutagemustbedealt
withswiftly,astheymaybeusedinconsuming
enterprises’mission-criticalproduction.Automatic
healing,basedonorchestrationandpolicies,isone
waytotomitigateoutagesituations.
Theserviceconfigurationandactivationwillmake
itpossibleforenterprisestodefineandconfigure
theirconnectivityservicessettingssimplyand
independentlyofunderlyinginfrastructureand
playerboundaries.
DeviceConnectionPlatform
Oneofthefirstrealizationsofamultisidedplatform
isEricsson’sDeviceConnectionPlatform(DCP).
Thisisaplatformwheremobilenetworkconnectivity
servicesareexposedtobeconsumedbyapplications.
Itsfundamentalpurposeistomakeconnectivity
availableforenterprisestoincludeintheirofferings
andprovidethemeanstomanagethisconnectivity.
Twoexamplesoftypicalenterprisesinthiscontext
wouldbeanoriginalequipmentmanufacturer
ofsomesort(suchasanautomotivecompanyor
acameramanufacturer)oraserviceproviderofa
servicewhereadeviceisanintegralpartofthe
offering(suchasautilitycompanyusingautomatic
meterreadingorapoint-of-salesterminalprovider).
Asmobilenetworksarealwaysofageographically-
limitednature,normallybycountryorlicensearea,
thereisaneedtoharmonizethewaytheenterprise’s
connectivityisusedacrossseveralnetworks.Ideally,
theenterpriseneedstohavethesameconnectivity
experiencewhereveritlaunchesandrunsitsservice.
Theonlypracticalwaytoachievethisistostandardize
onacentralizedplatform,whichbringstogetherthe
connectivityofallprovidersandexposesitina
uniformway.Thismakestheexperiencetruly
harmonized,intermsoffunctionalityaswellasservice
levelsandoperationalprocedures.Furthermore,it
alsominimizesthecostofintegrationbetweenthe
enterprisesystemsandtheaccessnetworks,saving
moneybothinitiallyandcontinuously,aswellas
shorteningtimetomarketfortheenterprise’sservice.
Conclusion
Theongoingdigitalizationofbusinessesand
industriesisoneofthekeygrowthopportunities
✱ DIGITAL CONNECTIVITY MARKETPLACES
10 ERICSSON TECHNOLOGY REVIEW ✱ APRIL 26, 2018
Further reading
〉〉	 Ericsson white paper, November 2015, Operator service exposure – enabling differentiation and
innovation, available at: https://www.ericsson.com/en/white-papers/operator-service-exposure--enabling-
differentiation-and-innovation
〉〉	Ericsson Technology Review, April 2017, Tackling IoT complexity with machine intelligence, available at:
https://www.ericsson.com/en/publications/ericsson-technology-review/archive/2017/tackling-iot-complexity-
with-machine-intelligence
〉〉	Ericsson press release, December 2017, 2018 hot consumer trends: technology turns human, available at:
https://www.ericsson.com/en/press-releases/2017/12/2018-hot-consumer-trends-technology-turns-human
References
1.	 Ericssonwhitepaper,January2017,5G–enablingthetransformationofindustryandsociety,availableat:
https://www.ericsson.com/en/white-papers/5g-systems--enabling-the-transformation-of-industry-and-society
2.	 Ericsson white paper, October 2017, Telecom IT for the digital economy, available at:
https://www.ericsson.com/en/publications/white-papers/telecom-it-for-the-digital-economy
3.	 EricssonTechnologyReview,November2017,End-to-endsecuritymanagementfortheIoT,availableat:
https://www.ericsson.com/en/ericsson-technology-review/archive/2017/end-to-end-security-management-for-the-iot
forthetelecomindustry.Telecominfrastructure,
encompassingbothcurrentnetworksandsoon-to-be-
launched5G,israpidlyevolvingintoaverypowerful
resourcethatcanbringsignificantvaluetothedigital
transformationofmostindustries.Lookingahead,
someofthetelecomindustry’skeyvalueleversare:
qualitydifferentiatedconnectivity;distributed
computingandstorage;analyticsofdataflows;
andsecuritysolutions.Withthetechnologyalready
inplace,themainchallengeistofullyunderstand
theneedsofanewbreedofconsumers,andusethat
informationtoorganizethebusiness,developnew
relationshipsandestablishefficientoperations.
AtEricsson,webelievethatthebestwayto
overcomethischallengeistoestablishaplatform
modelwherecapabilitiesfrommanyproviderscan
beeffectivelypackagedandexposedinattractive
waystobuyersfromdifferentindustries.This
approachcreatesanewandmuch-neededrole
forthetelecomindustryastheproviderofthe
marketplaceandbringsopportunitiesformultisided
businessrelationsandtransactionstoprosper.
Ononesideoftheplatformarethebusinesses
andindustriesthatareconsumingservicesfromthe
underlyinginfrastructure,andontheothersideare
providersofbothnetworkassetsandenabling
functions.Theplatformorganizestherelationships
foroptimalfitandusefulnessfortheplayersinvolved.
Insodoing,theplatformprovidesanumberofuseful
functionswithoneofthekeyvaluesbeingthescale
ofbusinessandthenetworkingeffectthatithasto
offer.Insteadofcompetingforthesameconsumers
withthesameoffer,operatorsthatrestructure
accordingtoalogicthatenablesfullparticipation
inanecosystemsplatformwillfindthemselves
wellpositionedtofullycapitalizeonnewmarket
opportunities.
DIGITAL CONNECTIVITY MARKETPLACES ✱
APRIL 26, 2018 ✱ ERICSSON TECHNOLOGY REVIEW 11
Malgorzata
Svensson
◆ is an expert in operations
support systems (OSS).
She joined Ericsson in 1996
and has worked in various
areas within research and
development. For the past
10 years, her work has
focused on architecture
evolution. Svensson
has broad experience in
business process, function
and information modeling,
information and cloud
technologies, analytics,
DevOps processes and tool
chains. She holds an M.Sc. in
technology from the Silesian
University of Technology
in Gliwice, Poland.
Patrik Regårdh
◆ is head of strategy
for Solution Area OSS,
where his work focuses
on market development,
industry dynamics and
driving strategies and
initiatives for Ericsson’s
digital business. He joined
the company in 1994 and
his previous positions have
ranged from strategy and
business development to
account management.
Currently based at the global
headquarters in Stockholm,
he has also worked
extensively in Brazil, Thailand
and Germany. Regårdh holds
an M.Sc. from KTH Royal
Institute of Technology in
Stockholm, Sweden.
Christian Olrog
◆ is an expert in cloud
service delivery architecture.
He joined Ericsson in 1999
and has been a technical
leader and architect in many
different areas, ranging
from embedded client
development and wireless
enterprise connectivity with
a security focus to cloud and
operations support systems/
business support systems
(OSS/BSS). Olrog currently
sits in the Technology 
Industry group at Business
Area Digital Services at
Ericsson. He holds an M.Sc.
in general physics from KTH
RoyalInstituteofTechnology.
Lars Angelin
◆ is an expert in BSS at
Business Area Digital
Services. He has more
than 30 years of experience
in the areas of concept
development, architecture
andstrategieswithinthe
telco and education
industries. He joined
Ericsson in 1996 as a
research engineer, and in
2003 he moved to a position
as concept developer in the
machine-to-machine and
OSS/BSS areas. Since 2006,
Angelin has been focusing on
BSS – specifically business
support, enterprise
architectures and the
software architectures to
implement the systems.
He holds an M.Sc. in
engineering physics and
a Tech. Licentiate in tele-
traffic theory from the
Faculty of Engineering at
Lund University in Sweden,
and an honorary Ph.D. from
Blekinge Institute
of Technology, Sweden.
Bo Ribbing
◆ is head of Product
Management for
Connectivity Management.
He joined Ericsson in 1991
and has worked in the
networks business since
1995. During this time, he has
gained broad international
experience, particularly
from Latin America and Asia
Pacific, and has held several
management positions.
Ribbing holds an M.Sc.
in applied physics from
Linköping University
in Sweden.
theauthors
Theauthors
wouldliketo
thankFrans
deRooijforhis
contributionto
thisarticle.
✱ DIGITAL CONNECTIVITY MARKETPLACES
12 ERICSSON TECHNOLOGY REVIEW ✱ APRIL 26, 2018
ISSN 0014-0171
284 23-3314 | Uen
© Ericsson AB 2018
Ericsson
SE-164 83 Stockholm, Sweden
Phone: +46 10 719 0000

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Ericsson Technology Review: Digital connectivity marketplaces to enrich 5G and IoT value propositions

  • 1. ERICSSON TECHNOLOGY DIGITAL CONNECTIVITY MARKETPLACES C H A R T I N G T H E F U T U R E O F I N N O V A T I O N | # 4 ∙ 2 0 1 8 Consumer Producer Consumer Consumer Consumer Digital connectivity platform Digital connectivity marketplace Cloud services market Operation support services market Business support services market Application & enablement market Information market Connectivity services market
  • 2. ✱ DIGITAL CONNECTIVITY MARKETPLACES 2 ERICSSON TECHNOLOGY REVIEW ✱ APRIL 26, 2018 MALGORZATA SVENSSON, LARS ANGELIN, CHRISTIAN OLROG, PATRIK REGÅRDH, BO RIBBING Digitalization is undoubtedly one of the most significant forces for change of our time, characterized by a wide variety of smart devices and applications that touch all possible areas of life. Now, new technologies such as the Internet of Things (IoT), artificial intelligence, wearables and robotics are driving an accelerating digital transformation in which core processes across virtually all businesses and industries are becoming more distributed,connectedandreal-timeoptimized. ■Businessesneednetworksthatcanprovide themwiththefoundationtooperatethenew transformingbusinessmodels.Digitaltransformation requiresnetworkcapabilitiestosupportabroad spectrumofdifferentuserscenarios.Coverage, speed,latencyandsecurityaresomeofthekey parameters,alongwithnewnetworkfunctions foreffectiveprocessingofdataanddistributionof applicationsandfunctionsfaroutinthenetwork. 5Gbringstheabilitytorealizeawidevariety ofconnectivityandnetworkservicestomeet theperformancerequirementsoftomorrow’s digitalindustries. Withnetworkscapableofsupportingan unlimitedsetofservicesandusecases,ithasbecome increasinglyclearthattraditionalmass-market serviceswillsoonbeathingofthepast.Looking forward,networksmustbeviewedasahorizontal foundationorplatformonwhichbusinessescan One of the key growth opportunities for the telecom industry is to provide network capabilities that support the digital transformation underway in most businesses and industries. Already today, we have a powerful technology foundation in place, and this will become even stronger with 5G. Now is the ideal time to evolve the business side of the equation toward platform business models, which will enable the telecom industry to prosper in multisided business ecosystems as well. Digital marketplacesTO ENRICH 5G AND IoT VALUE PROPOSITIONS connectivity
  • 3. DIGITAL CONNECTIVITY MARKETPLACES ✱ APRIL 26, 2018 ✱ ERICSSON TECHNOLOGY REVIEW 3 consumenetworksjustasotherICTcapabilities areconsumed.Thebusinessmodelofthefuture willlookmorelikecurrentaaSmodelsforotherparts oftheICTsector. Thecurrenttelecombusinessmodel mustevolvesignificantlytoworkinthisnewmarket realitytoplacetelecomcompaniesinabetterposition tocapitalizeonnewbusinessopportunities. Thecaseforbusinessmodeltransformation Formanyyears,thetelecomindustryhassuccessfully beenoperatinginwhatisbestdescribedasavertical businessmodel.Inthismodel,telecomoperators havedeliveredend-to-end(E2E)standardized servicestoconsumersunderlong-termcontracts andcompetedwithinnationalboundaries. Thecollaborationbetweencommunication serviceprovidershasgenerallybeenlimitedto interoperabilityandroamingforthepurposeof globalservicereachandtodrivetechnologyand marketscale.Itisreasonabletoexpectthe traditionalmodusofcollaborationtocontinue toservetheindustryintheyearsahead,butitis alsoclearthatthisframeworkisnotfittoexplorethe fullvalueofnetworkinfrastructure.Richconfiguration variancesandmorecomplexserviceswillinmany casespushdemandbeyondthecapabilityofasingle Terms and abbreviations aaS–asaService|B2B–business-to-business|B2C–business-to-consumer|BSS–businesssupportsystems |DCP–DeviceConnectionPlatform|E2E–end-to-end|IoT–InternetofThings|OSS–operationssupport systems|SLA–ServiceLevelAgreement Definitions 〉〉 Consumer:auserassociatedwithacompanythatpurchasesservices/productsexposedbytheplatform/ marketplace.Aconsumercanbeanindividualand/oranorganization. 〉〉 Producer:asupplierofservices/productstoaplatform/marketplace.Aproducercanbeanindividualand/ oranorganization. 〉〉 Platformprovider:anorganizationthatmanagestheplatform/marketplace. 〉〉 Platform/marketplace:theentitythatexposestheservicesoftheplatform.Theexposedservicesarea compositionofplatformservicesandservicessuppliedbyproducers. 〉〉 Digitalconnectivitymarketplace:themarketplacethatoffersvariousconnectivityservicesandconnectivity serviceenablerstoenterprises.TheenterprisesmayrequireIoTcapabilities. 〉〉 Cloudservices:asetofservicesincludingstorageandcomputation. 〉〉 Digitalization:theuseofdigitaltechnologiestochangeabusinessmodelandprovidenewrevenueandvalue- producingopportunities.Itistheprocessofmovingtoadigitalbusiness.
  • 4. ✱ DIGITAL CONNECTIVITY MARKETPLACES 4 ERICSSON TECHNOLOGY REVIEW ✱ APRIL 26, 2018 provider,aswellasbeyondthescopeofwhatis possibletorealizewithtraditionalinteroperability andfederationmodels. Inlightofthis,itisnecessarytoevolvetoward anewcollaborationframework–onethatoffers serviceprovidersanenvironmentwheretheycan dynamicallyaggregatecapabilitiesfrommultiple sourcesintothetailoredsolutiontheyrequireto enabletheiruniquedigitalizationjourney. Suchamodelmustexcelinservingtheuniqueand varyingneedsofconsumersaseffectivelyaspossible andincludevaluecontributionfrominnovation partners.Itmustalsomeetanewsetofrequirements toeffectivelycreateandcapturevalue.Someofthe mostcriticalaspectsare: 〉〉 simplicityforserviceproviderstodefineandconfigure theirownconnectivityandnetworksolutionregardless ofunderlyinginfrastructureandplayerboundaries. 〉〉 opennessforserviceproviderstoeasilyintegrateand dynamicallyadjusttheirsolution,includingtheneeded management,intotheirdigitalbusinessprocesses. 〉〉 well-structuredexposureofenhancedconnectivity andnetworkcapabilitiessuchasdistributedcloud, edgeanalytics,andsoon,forrapiduse-caseinnovation andvaluecreation. 〉〉 easyexchangeofdigitalassetssuchassafeandsecure tradeofdataacrossdifferentplayers. 〉〉 attractivecomplementforoperatorstoexplorecurrently unaddressablebusiness/marketsbeyondthevertical businesstheytraditionallyruntoday. 〉〉 creationofanenvironmentwhereinnovationthrives tothebenefitofallbusinessmodelparticipants. Toeffectivelymeettheseandotherrequirements,it isobviousthattheestablishmentofsuchabusiness modelisbeyondtheabilityofasingleplayeror company.Instead,itmakesmoresensetolookata businessthatisdesignedlikeaplatformwherea multitudeofplayers,producersandconsumerscan coexistandgainmutualbusinessoutcomes.Inthis scenario,theplatformisbothamarketplacethat supportsthebusinessofitsstakeholdersinthemost effectivewayandalsoaninfrastructurethat facilitatesandsimplifiesthesemultisided relationshipswitharangeofkeyfunctionalities. Multisidedconnectivityplatforms Multisidedplatformsbringtogethertwoormore distinctbutinterdependentgroupsofconsumers andsuppliers.Suchplatformsareofvaluetoone group(consumers,forexample)onlyiftheother group(suppliers,inthiscase)isalsopresent.A platformcreatesvaluebyfacilitatinginteractions andmatchmakingbetweendifferentgroups.A multisidedplatformgrowsinvaluetotheextentthat itattractsmoreusersanditmatchmakesone consumer’sneedswithservicesandproducts offeredbymultiplesuppliers;aphenomenonknown asthenetworkeffect. Thetelecomindustryalreadyoffersavastvariety ofconnectivityservices,and5Gtechnologieswill acceleratethedevelopmentofnewones[1] characterizedbythedifferentcapabilitiesthatthe variousindustriesrequire.Theconnectivityservices of5Gwillberealizedbymeansofnetworkslicing. Webelievethattailoredconnectivityserviceswith MULTISIDEDPLATFORMS BRINGTOGETHERTWOORMORE DISTINCTBUTINTERDEPENDENT GROUPSOFCONSUMERSAND SUPPLIERS
  • 5. DIGITAL CONNECTIVITY MARKETPLACES ✱ APRIL 26, 2018 ✱ ERICSSON TECHNOLOGY REVIEW 5 diversecharacteristicswillbenecessaryfor enterpriseswithintheindustriestodigitalizetheir operationalandbusinessprocesses[2]. Digitalizationofenterprises’businessand operationrequiresnotonlyconnectivityservicesbut alsovariouscloud-basedserviceslikecomputation andstorage,wherecompanies’operationsand businessapplicationscanbehosted,deployedand operated,orwhereenterprisescanbenefitfromthe cloudservices’capabilitiesofferedinthesoftwareas servicebusinessmodel. Thefullpotentialof5Gconnectivityandcloud servicescanbereachedwhentheyareexposedon fullydigitalmultisidedconnectivityplatforms (marketplaces),asshowninFigure1.Inthisway,the services–andconsequentlytheindustries–will benefitfromthepresenceofavastrangeofother servicessuchasinformationandapplication enablementservices,aswellasbusinessand operationsupportcapabilities.Theconnectivity marketplacewillcomplementthefederationmodel forconnectivityandbridgethegapwherethe existingfederationmodelisnotenough. Thedigitalconnectivitymarketplacewillenable newbusinessmodelsbyprovidingcapabilitiesfor theexchangeofinformationandconnectivity enablingservicestoecosystemsofconsumers andsuppliers. Figure 1: Digital connectivity marketplace: multisided platform Consumer Producer Platform provider Consumer Consumer Consumer Digital connectivity platform Digital connectivity marketplace Cloud services market Operation support services market Business support services market Application enablement market Information market Connectivity services market
  • 6. ✱ DIGITAL CONNECTIVITY MARKETPLACES 6 ERICSSON TECHNOLOGY REVIEW ✱ APRIL 26, 2018 Ourvisionofthefuturedigitalconnectivity marketplaceisthatitwillofferinteractionbetween producersandconsumersbyexposingthe connectivityandcloudservicesononeside,and collectingtherequirementsfromconsumersand matchmakingthemagainstthecapabilitiesofthe servicesontheother.Theplatformwillfacilitatethe interactionsbyprovidingbusinessandoperation supportservicestobothproducersandconsumers. Theservicesexposedinthemarketplacecouldbe suppliedbymultipleproducersowningthenetworks andinfrastructuresrequiredtoproducethese services.Theconsumersrepresentingvarious industrieswillrequireconnectivityandcloud servicestodigitalizetheirbusinessand operationalprocesses[2]. Consumerservicesofferedbyproducers Asdiscussedabove,thefuturemultisided connectivitymarketplacewilloffercapabilitiesto exposeconnectivityandcloudservicesthatmay beprovidedbymultipleproducers.Inthecontext of5G thefollowingtypesofconnectivityservices maybeexposed:massivemachinetype Figure 2: Graph model: how industry requirements can be linked with connectivity services Digital connectivity platform Matchmaking Subscription Application Capability Technology Technology Capability Capability Assets Service Subscription Producer Producer Consumer Subscription x Subscription y Producer y Data volume Throughput Latency Producer x Subscription Subscription z 4G Connectivity Vehicle Logistics Edge compute 5G
  • 7. DIGITAL CONNECTIVITY MARKETPLACES ✱ APRIL 26, 2018 ✱ ERICSSON TECHNOLOGY REVIEW 7 communication(alsoknownasmassiveIoT), mission-criticalmachinetypecommunication (alsoknownasmission-criticalIoT)andextreme mobilebroadbandservices.Therewillbeaneed tocomplementtheconnectivityservicesprovided byotherstobeabletoofferthedesiredvalue propositionandsatisfyindustrydemands. Securitywillremainoneofthetoppriorities associetiescontinuetoconnecteverythingfrom autonomoustruckstoelevatorsandventilation systems.Isolationtechniquessuchasautomatic networkslicingarelikelytoplayakeyrolein reducingsecurityrisks,togetherwithmachine- learning-basedingressfirewalls,possiblyembedded asvirtualnetworkfunctionsinoperators’networks. Makingtheplatformattractive andefficienttooperate AtEricsson,weforeseethedigitalmarketplaceas thefoundationofanecosystemofmanyconsumers andprovidersfromamultitudeofindustries. Thisimpliesthatindustrieswillrequirecapabilities toexpresstheirrequirementsinlanguagesand contextsthatarespecifictotheirbusinessand operationalenvironments,asopposedtoneeding telcoandcloud-domainknowledgetobeableto chooseordefinetherequirementsonthe connectivityandcloudservices. Themultisidedcharacterofaplatform–andits matchmakingabilities–willmakeitwellsuited toprovidethesecapabilities.Theplatformwill matchindustry-specificrequirementswith servicecapabilities. Thematchmakingfunctionusestherelatively oldresearchareaofgraphtheory,boostedbyits explosioninusageandimplementationinsocial networksinrecentyears.ThemodelinFigure2 showsanexampleofhowconsumerrequirements, modeledasgraphedges,arelinkedwithservices, thentechnologiesandconsequentlysubscriptions. Bydefiningeachserviceasavertexinagraph whereedgesconstituteaconsumer/producer relationship,itispossibletomodelcomplexvalue chainsorrelationshipsbetweenservices. Givenasetofrequirementsmodeledasvertexes withconsumptionneedsas“danglingedges,” wecanfindanefficientsubsetofthegraphwhich fulfillstheseneeds,ifatallpossible.Byalsomodeling non-functionalaspectssuchaslocation,latency andthroughput,wegetagenericallyapplicable mechanism.Thisgivesrisetotremendous possibilitieswhereamultitudeoflooselyconnected playerstogetherenableanefficientE2Eservice, asadynamicallyconstructedvaluechain,capable ofreachingfarbeyondwhatiscurrentlypossible. Therearemanyimplementationoptions,including capabilitiesforlife-cyclemanagementtoensurethat consumersandproducers,joinedbymarketforces andtheplatform,provideasuitablemixofstability andinnovation. SECURITYWILLREMAIN ONEOFTHETOPPRIORITIES ASSOCIETIESCONTINUE TOCONNECT
  • 8. ✱ DIGITAL CONNECTIVITY MARKETPLACES 8 ERICSSON TECHNOLOGY REVIEW ✱ APRIL 26, 2018 Datalakesandanalyticsareusedtoexecute matchmaking,asshowninFigure3.Analytics serviceswillmakethefutureplatformdatadriven, astheywillbeexposedforusebyeitherconsumers orproducerstohelpthemevolvetheirservices. Atthesametime,theconsumersorproducers providetheplatformwithextendedinsightintohow producers’servicesareused,potentiallyhelping improvetherecommendationssupportingservice discoveryandmatchmaking. Acommonsolutionforprovidingidentification isyetanotherimportantcomponentoftheplatform totrulysupportscaleandinnovativecombinations. Federationofidentitiesisakeyservicewhen consideringnewservicecombinations.Authorization foraconnectionbetweentwothingswilllikelytake bothsoftwarefingerprintingandbehavioralanalysis intoaccountifthisfunctionalityisavailableina “thingmanagement”systeminatrustedrelationship. Securitysolutionswillenablethesafeandsecure tradeofdatabetweendifferentplayersandthe exchangeofdigitalassets[3].Trustfacilitieswill enablesecuretransactionsbetweenconsumers andproducers.Analyticsinsightintheshapeof fraudmanagement,combinedwithanovelform ofanalyticsinsightpredictinglikelihoodofsuccessful serviceactivation,willbethekeyfortheplatform providertobeabletomanageriskwhenbridging thetrustdivide. Serviceexposurewillsecureopennessfor consumerstoeasilyintegrateanddynamicallyadjust theirsolutionsandservices,includingtheneeded management,intotheirdigitalbusinessprocesses. Businesssupportplatform Thebusinesssupportplatformcomprisesmanythings forbothproducersandconsumers:theirentirelife cycle,interactionsandmanagementwhileinabusiness Figure 3: Digital connectivity platform Digital connectivity platform Matching engine Serviceexposure Service activation Service configuration Service capability matchmaking Consumer/producer service management Consumer/producer managementInteraction management IdentitymanagementSecuritymanagement Assetmanagementintegration CloudserviceintegrationConnectivityserviceintegration Service assurance Business support systems Operations support systems Data lake and analytics
  • 9. DIGITAL CONNECTIVITY MARKETPLACES ✱ APRIL 26, 2018 ✱ ERICSSON TECHNOLOGY REVIEW 9 relationshipwiththeplatform;theentireservicelife cycleoftheonboardedproducerandconsumer servicessets;andself-servicesfortheaforementioned. Oneofthemostcriticalcapabilitiesiscontracting, duetothefactthatthemixofservices,SLAsand pricingschemesiscomplexandcontractsare frequentlynegotiatedandrenegotiated.Thebusiness supportplatformsimplifiesbusinessbyusingonly bilateralcontractsbetweenparties–thatis,a business-to-business(B2B)contractbetween anytwoofthethree:theproducer,theconsumer andthemarketplaceprovider.B2Ccontractsare applicableiftheconsumerisaprivateindividual andnotanenterprise.Whilebusinessvaluechains areoftenreferredtoasB2B2x,thecontracting arrangementsupportingthemisasetoflinked B2BandB2Ccontracts. Inaddition,themarketplaceallowsforapartyto actasaconsumertopurchaseservices,orchestrate themintoanewservice,andoffertheorchestrated serviceontheplatformasaproducer.Apartyina producerrolecanalsoactasaconsumerforits resourceneeds.ThisresultsinaseriesofB2Cand B2Bcontracts,whichistheessenceofavibrant ecosystembuiltontheplatform.Thecontractingand contractmanagementprocessesarefullyautomated. Operationssupportplatform Theconsumerandproducerservicesthatenablethe networkcapabilitiessuchasdistributedcloud andedgeanalyticswillbeexposedusingservice exposure,therebyenablinginnovationand valuecreation. Thedependenciesbetweenservicesare automaticallyinferredthroughservice-level assurance,andthecombinedanalyticsofthe differentservicesprovidesinsightintoperformance atseverallevels.Thismayallowfine-tuningofSLAs basedonheuristicsandhelpfuelinnovationby managingandprovidingtransparencywithregard torisk.Anetworkorserviceoutagemustbedealt withswiftly,astheymaybeusedinconsuming enterprises’mission-criticalproduction.Automatic healing,basedonorchestrationandpolicies,isone waytotomitigateoutagesituations. Theserviceconfigurationandactivationwillmake itpossibleforenterprisestodefineandconfigure theirconnectivityservicessettingssimplyand independentlyofunderlyinginfrastructureand playerboundaries. DeviceConnectionPlatform Oneofthefirstrealizationsofamultisidedplatform isEricsson’sDeviceConnectionPlatform(DCP). Thisisaplatformwheremobilenetworkconnectivity servicesareexposedtobeconsumedbyapplications. Itsfundamentalpurposeistomakeconnectivity availableforenterprisestoincludeintheirofferings andprovidethemeanstomanagethisconnectivity. Twoexamplesoftypicalenterprisesinthiscontext wouldbeanoriginalequipmentmanufacturer ofsomesort(suchasanautomotivecompanyor acameramanufacturer)oraserviceproviderofa servicewhereadeviceisanintegralpartofthe offering(suchasautilitycompanyusingautomatic meterreadingorapoint-of-salesterminalprovider). Asmobilenetworksarealwaysofageographically- limitednature,normallybycountryorlicensearea, thereisaneedtoharmonizethewaytheenterprise’s connectivityisusedacrossseveralnetworks.Ideally, theenterpriseneedstohavethesameconnectivity experiencewhereveritlaunchesandrunsitsservice. Theonlypracticalwaytoachievethisistostandardize onacentralizedplatform,whichbringstogetherthe connectivityofallprovidersandexposesitina uniformway.Thismakestheexperiencetruly harmonized,intermsoffunctionalityaswellasservice levelsandoperationalprocedures.Furthermore,it alsominimizesthecostofintegrationbetweenthe enterprisesystemsandtheaccessnetworks,saving moneybothinitiallyandcontinuously,aswellas shorteningtimetomarketfortheenterprise’sservice. Conclusion Theongoingdigitalizationofbusinessesand industriesisoneofthekeygrowthopportunities
  • 10. ✱ DIGITAL CONNECTIVITY MARKETPLACES 10 ERICSSON TECHNOLOGY REVIEW ✱ APRIL 26, 2018 Further reading 〉〉 Ericsson white paper, November 2015, Operator service exposure – enabling differentiation and innovation, available at: https://www.ericsson.com/en/white-papers/operator-service-exposure--enabling- differentiation-and-innovation 〉〉 Ericsson Technology Review, April 2017, Tackling IoT complexity with machine intelligence, available at: https://www.ericsson.com/en/publications/ericsson-technology-review/archive/2017/tackling-iot-complexity- with-machine-intelligence 〉〉 Ericsson press release, December 2017, 2018 hot consumer trends: technology turns human, available at: https://www.ericsson.com/en/press-releases/2017/12/2018-hot-consumer-trends-technology-turns-human References 1. Ericssonwhitepaper,January2017,5G–enablingthetransformationofindustryandsociety,availableat: https://www.ericsson.com/en/white-papers/5g-systems--enabling-the-transformation-of-industry-and-society 2. Ericsson white paper, October 2017, Telecom IT for the digital economy, available at: https://www.ericsson.com/en/publications/white-papers/telecom-it-for-the-digital-economy 3. EricssonTechnologyReview,November2017,End-to-endsecuritymanagementfortheIoT,availableat: https://www.ericsson.com/en/ericsson-technology-review/archive/2017/end-to-end-security-management-for-the-iot forthetelecomindustry.Telecominfrastructure, encompassingbothcurrentnetworksandsoon-to-be- launched5G,israpidlyevolvingintoaverypowerful resourcethatcanbringsignificantvaluetothedigital transformationofmostindustries.Lookingahead, someofthetelecomindustry’skeyvalueleversare: qualitydifferentiatedconnectivity;distributed computingandstorage;analyticsofdataflows; andsecuritysolutions.Withthetechnologyalready inplace,themainchallengeistofullyunderstand theneedsofanewbreedofconsumers,andusethat informationtoorganizethebusiness,developnew relationshipsandestablishefficientoperations. AtEricsson,webelievethatthebestwayto overcomethischallengeistoestablishaplatform modelwherecapabilitiesfrommanyproviderscan beeffectivelypackagedandexposedinattractive waystobuyersfromdifferentindustries.This approachcreatesanewandmuch-neededrole forthetelecomindustryastheproviderofthe marketplaceandbringsopportunitiesformultisided businessrelationsandtransactionstoprosper. Ononesideoftheplatformarethebusinesses andindustriesthatareconsumingservicesfromthe underlyinginfrastructure,andontheothersideare providersofbothnetworkassetsandenabling functions.Theplatformorganizestherelationships foroptimalfitandusefulnessfortheplayersinvolved. Insodoing,theplatformprovidesanumberofuseful functionswithoneofthekeyvaluesbeingthescale ofbusinessandthenetworkingeffectthatithasto offer.Insteadofcompetingforthesameconsumers withthesameoffer,operatorsthatrestructure accordingtoalogicthatenablesfullparticipation inanecosystemsplatformwillfindthemselves wellpositionedtofullycapitalizeonnewmarket opportunities.
  • 11. DIGITAL CONNECTIVITY MARKETPLACES ✱ APRIL 26, 2018 ✱ ERICSSON TECHNOLOGY REVIEW 11 Malgorzata Svensson ◆ is an expert in operations support systems (OSS). She joined Ericsson in 1996 and has worked in various areas within research and development. For the past 10 years, her work has focused on architecture evolution. Svensson has broad experience in business process, function and information modeling, information and cloud technologies, analytics, DevOps processes and tool chains. She holds an M.Sc. in technology from the Silesian University of Technology in Gliwice, Poland. Patrik Regårdh ◆ is head of strategy for Solution Area OSS, where his work focuses on market development, industry dynamics and driving strategies and initiatives for Ericsson’s digital business. He joined the company in 1994 and his previous positions have ranged from strategy and business development to account management. Currently based at the global headquarters in Stockholm, he has also worked extensively in Brazil, Thailand and Germany. Regårdh holds an M.Sc. from KTH Royal Institute of Technology in Stockholm, Sweden. Christian Olrog ◆ is an expert in cloud service delivery architecture. He joined Ericsson in 1999 and has been a technical leader and architect in many different areas, ranging from embedded client development and wireless enterprise connectivity with a security focus to cloud and operations support systems/ business support systems (OSS/BSS). Olrog currently sits in the Technology Industry group at Business Area Digital Services at Ericsson. He holds an M.Sc. in general physics from KTH RoyalInstituteofTechnology. Lars Angelin ◆ is an expert in BSS at Business Area Digital Services. He has more than 30 years of experience in the areas of concept development, architecture andstrategieswithinthe telco and education industries. He joined Ericsson in 1996 as a research engineer, and in 2003 he moved to a position as concept developer in the machine-to-machine and OSS/BSS areas. Since 2006, Angelin has been focusing on BSS – specifically business support, enterprise architectures and the software architectures to implement the systems. He holds an M.Sc. in engineering physics and a Tech. Licentiate in tele- traffic theory from the Faculty of Engineering at Lund University in Sweden, and an honorary Ph.D. from Blekinge Institute of Technology, Sweden. Bo Ribbing ◆ is head of Product Management for Connectivity Management. He joined Ericsson in 1991 and has worked in the networks business since 1995. During this time, he has gained broad international experience, particularly from Latin America and Asia Pacific, and has held several management positions. Ribbing holds an M.Sc. in applied physics from Linköping University in Sweden. theauthors Theauthors wouldliketo thankFrans deRooijforhis contributionto thisarticle.
  • 12. ✱ DIGITAL CONNECTIVITY MARKETPLACES 12 ERICSSON TECHNOLOGY REVIEW ✱ APRIL 26, 2018 ISSN 0014-0171 284 23-3314 | Uen © Ericsson AB 2018 Ericsson SE-164 83 Stockholm, Sweden Phone: +46 10 719 0000