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The new open digital economy will be a diamond shaped industry, where we will witness a significant shifting from a vertically-integrated to a horizontally-integrated industry, disaggregating into a set of layers.
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Speakers Corner 5: Digital Service Aggregation & Operation

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The new open digital economy will be a diamond shaped industry– where we will witness a significant shifting from a vertically-integrated to a horizontally-integrated industry, disaggregating into a set of layers. There are three layers from the bottom to the top: Communications & Cloud Infrastructure Provider, Service Creation and Provision and Service Retailer. In the new ecosystem the bottom layer: communication and cloud infrastructure providers will become a game among a relatively small number of players. It will be down to just a few international big telco, some governments and also big players like Google and Amazon left to provide cloud connectivity across the globe. We will see a major bloom of players in the middle layer of the diamond – Service Creation and Provision. And finally on top of all it will be Service Retailer, which telcos should hold onto this layer as their best position, even though they may still face keen competition with big players like Apple and Google. In front of both challenges and opportunities, how to survive and thrive? There are four key pivot point for the digital transformation, which we called 'AIOI'. 'A' means aggregate a large volume of partners and build ecosystem, to seize opportunities of digital retailers ; both 'I' and 'O' are suitable for the services creation and provision. 'I' means provide a inter dependent, seamless experience of both digital and physical services. 'O' stands for 'open', consolidate a open platform. And the last 'I' is for cloud infrastructure provider, 'intelligent pipe establishment'. Being able to leverage the strength, enable and monetize the digital assets is the key to success.
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It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
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