ST. LOUIS, Sept. 16, 2013 /PRNewswire/ -- Amdocs, the leading provider of customer experience systems and services, today released the results of a survey that focused on service provider current and future strategies in the area of product lifecycle management (PLM), as they look to resolve the complexity of managing multiple products and organizational stakeholders. The survey shows that the majority of service providers, globally, plan to invest in PLM solutions that can allow them to introduce and manage more products, faster and at a lower cost.
"Service providers struggling to launch viable product ideas are going to find it difficult to compete with more agile operators, let alone over-the-top (OTT) players and virtual network operators," said Teresa Cottam, chief strategist at Telesperience. "It's really important that service providers ensure they have an end-to-end PLM solution that can deal with the scale and complexity their business models are likely to bring, or the PLM bottleneck could choke future revenue streams."
Key research findings reveal:
PLM complexity is overwhelming: in reality, it takes an average of over two months more than expected to launch a new product and the involvement of 23 organizational stakeholders; 26 percent of respondents reported they didn't know the cost of the process
A massive revenue loss: service providers are investing an average of 10 percent of their revenue in PLM, but are able to launch only 48 percent of viable product ideas
The single, centralized catalog approach is crucial: 47 percent of respondents said their companies have already begun centralizing their product information and another 44 percent plan to do so within the next 24 months
A move towards off-the-shelf: 44 percent of respondents said they intend to buy a commercial, off-the-shelf solution by 2015; only 16 percent intend to build a PLM solution in-house.
"The majority of service providers today use siloed, manual and semi-manual processes to manage their different products," said Rebecca Prudhomme, vice president of product and solutions marketing at Amdocs. "The research shows they are losing twice. They are missing potential cost savings they could have achieved by moving to centralized and automated processes, and also the potential revenue from new products they could have introduced."
Conducted for Amdocs by industry analyst firm Telesperience, the research surveyed 32 senior decision makers impacting product lifecycle management strategies of large service providers (each with more than 10 million subscribers) across 22 countries in Europe, Asia-Pacific and the Americas.
The Amdocs Product Lifecycle Management solution incorporates Amdocs' market-leading Enterprise Product Catalog, which centralizes all product information across a service provider's business, a best-in-class Business Process Management (BPM) platform, and pre-integrated, business processes best practices, which cover lifecycle management for both simple and bundled products and span more than 100 different workflow activities.
For more than 30 years, Amdocs has ensured service providers' success and embraced their biggest challenges. To win in the connected world, service providers rely on Amdocs to simplify the customer experience, harness the data explosion, stay ahead with new services and improve operational efficiency. The global company uniquely combines a market-leading BSS, OSS and network control product portfolio with value-driven professional services and managed services operations. With revenue of $3.2 billion in fiscal 2012, Amdocs and its 20,000 employees serve customers in more than 60 countries.
Amdocs' Forward-Looking Statement This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs' growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, Amdocs' ability to grow in the business markets that it serves, Amdocs' ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, the Company specifically disclaims any obligation to do so. These and other risks are discussed at greater length in the Company's filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2012 filed on December 11, 2012 and our quarterly 6-K forms furnished on February 12, May 16 and August 12, 2013.