Amdocs Survey: Time to Market Grows in Importance
Yet little improvement in average time to market between 2008 and 2011; 70 percent of service providers cite the need to modernize operational environment in order to bring products to market faster
14 Apr, 2011, 06:00 ET
ST. LOUIS, April 14, 2011 /PRNewswire/ -- Amdocs (NYSE: DOX), the leading provider of customer experience systems, today announced the results of an independent survey that examines time-to-market trends over the last three years and explores the business impact and importance of time to market for service providers. The global survey, which revisited a 2008 poll(1), was conducted by Coleman Parkes Research.
According to the new survey, 70 percent of the service providers polled said time to market is very important, up from 59 percent in 2008. But despite this growing importance, the survey found that there has been little improvement in the average time to market for new products between 2008 and 2011. In fact, the number of service providers that are able to bring a product to market within six months has fallen; in 2008, 67 percent of service providers said it took six months or less to bring a new product to market, compared with 65 percent today.
Other key findings include:
- Time to market inhibitors: As many as one in three service providers failed to achieve their target of delivering new services within six months over the last three years, with the same proportion reporting that time to market is increasing by an average of 21 percent. Forty-five percent of service providers report that the increasing demand for support of third-party services such as app stores or IPTV and additional connected devices, has increased time to market. Fifty-nine percent of companies report that the complexity of the technology environment creates key challenges to bringing a product to market, and 58 percent referenced the inflexibility of existing systems and processes as a major inhibitor. As service providers seek to adopt new business models, these challenges will become even more prevalent.
- Time to market impacts the bottom line: Sixty-eight percent of service providers cited speed of a new product creation as a key business differentiator with 95 percent stating that time to market has a positive impact on revenue. In addition, 95 percent reported time to market as impacting brand image and 94 percent on achieving customer loyalty. Service providers failing to improve time to market therefore risk customer churn and missed revenue opportunities.
- Direct link between reduced time to market and operational support systems investment: Seventy percent of service providers cited the need to modernize the operational environment in order to bring products to market faster. Of the service providers who did report an improved trend in time to market, 76 percent cited that this was as a result of improving organizational alignment, 75 percent reported that this was a result of implementing changes to systems and processes for new products, 81 percent said it followed improved project management and control, and 65 percent cited business and operational support systems integration.
"The importance of time to market is driven by the customers demand for new services and the need for service providers to remain competitive. Service providers recognize the positive impact time to market has on the business and its importance in ensuring profitability, yet with new market dynamics adding more complexity, the survey shows that many service providers are still challenged in reducing time to market," said Rebecca Prudhomme, vice president of product and solutions marketing at Amdocs. "The survey demonstrates that service providers who invest to address operational challenges can improve time to market and customer experience and ultimately positively impact the bottom line."
Conducted in February 2011, the research is based on qualitative interviews of 125 senior executives from 50 wireless, 50 wireline and 25 cable service providers in Europe, Latin America, North America and Asia-Pacific.
- To access the full report please visit http://www.osstransformation.com/improve-your-time-to-market.aspx
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Amdocs is the market leader in customer experience systems innovation. The company combines business and operational support systems, service delivery platforms, proven services, and deep industry expertise to enable service providers and their customers to do more in the connected world. Amdocs' offerings help service providers explore new business models, differentiate through personalized customer experiences, and streamline operations. A global company with revenue of approximately $3.0 billion in fiscal 2010, Amdocs has over 19,000 employees and serves customers in more than 60 countries worldwide. For more information, visit Amdocs at www.amdocs.com.
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 segments it serves, 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, 2010, filed on December 7, 2010 and our Form 6-K filed for the first quarter of fiscal 2011 on February 8, 2011.
(1) http://www.amdocs.com/News/Pages/Service%20Provider%20Survey.aspx, June 08, 2008
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