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Posted by Dan Bieler on July 1, 2013
We recently attended Amdocs' customer event in Singapore. Amdocs is gradually adjusting its strategy to reflect one of the most fundamental changes in the ICT industry today: Increasingly, business line managers, think the marketing or sales officer, are the ones influencing sourcing decisions. Traditional decision-makers, CTOs and CIOs, are no longer the sole ICT decision-makers. Amdocs is addressing this shift by:
Amdoc’s strategy adjustment is not without risk. First, it does not have experience and the sales force to address business-line managers and end user customers. Second, the company risks entering into conflicts of interest with its main telco customer base as both parties target similar offerings. Third, unlike vendors like Cisco, Amdocs must continue to focus on its core telco business while diversifying itself in search of new revenue streams. All three issues can be overcome through the dedicated commitment of new resources to Digital Services and a transparent go-to-market partnership approach with telcos.
In its current position, Amdocs’ fortunes are tied to the speed of innovation by telcos. And this is lagging behind the speed of innovation in other sectors. To evolve further, Amdocs should position its strategic shift to carriers as building the most flexible “value-chain platform” together with them.
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