A New Horizon: Software's journey into the unknown

A New Horizon Software’s journey into the unknown

Executive summary We stand at a unique point in history. Entering a new decade, key forces spanning technology, socioeconomics, and the environment align for disruption.

Technology faces the most dramatic period of innovation in a century with potentially six General Purpose Technologies (GPT’s) converging. We see major power shifts across geographies, demographics, consumption patterns, and business model innovation. Concern for the planet, its resources, and

As we step forward into the unknown, software takes its place as essential to emerging technologies and will lead digital transformation on many fronts.

sustainability dominate top-of-mind awareness. Change is coming fast as governments, corporations, investors, and consumers position to redefine the world we live in.

What does the future hold for software? What trends and drivers influence success? Are we investing in the right vision? Are we positioned to contribute and benefit from the trillions in economic value created by emerging trends?

What does Industry 4.0 mean for Enterprise customers and how will software accelerate transformation?

Companies investing in the right vision ride the tailwinds, while those who miss the opportunity face extreme pressure. As we step forward into the unknown, software takes its place as essential to emerging technologies and will lead digital transformation on many fronts.

Until now, the fate of our industry rested in the hands of Communication Service Providers (CSPs). Despite reliance on connectivity and +$trillions spent on communications services, CSPs and their benefactors remain challenged as reflected in share prices and market capitalizations. We enter a new decade of upheaval, facing a plateau in exponential gains in connectivity innovation. As we journey into the unknown, what we know: 1. Sophisticated software powered by smart analytics and artificial intelligence drives change at hyper speed.

2. Companies embracing change, deliberating innovating, and creating humancentered experiences will grow and prosper.

3. Understanding what digital change means and how to move our customers into the fast lane of innovation is critical to success.

A new horizon filled with opportunity for innovation waits around the bend. We must challenge the status quo. Now is the time to act.

Where’s the Beef?!

Exactly what’s happening here?

Where’s the Beef?!

In the1980s, American burger giants McDonalds, Burger King, and Wendy’s battled for market share. Wendy’s launched a highly successful campaign called “Where’s the Beef?!” Picture three elderly women at the "Home of the Big Bun" pondering over an oversize hamburger bun.

"It certainly is a big bun. It's a very big bun. It's a big fluffy bun. It's a very big fluffy bun". Lifting the top half of the bun revealed a pitifully small hamburger with cheese and a pickle for garnish. Clara Peller, the breakout star, responds with her outraged, irascible question, “Where’s the Beef”? (Reference 1) This iconic phrase questions the value of products, services, and companies, including the telecom industry. “Where’s the Beef”? Have we become Clara Peller? The importance of connectivity is immeasurable and when it’s not available we lose our collective minds. In the post-iPhone world of apps, connectivity is just a commodity. Communications remains a +$trillion business and still the telecom industry struggles to reap value-based benefits and realize measurable growth in adjacent markets.

In recent years, share price and market cap growth for telecoms has been subpar. A Technology, Media, and Telecoms (TMT) (Reference 2) report notes that the telecom sector performed worst among these industries, logging -4 percent performance (2017-2019 cumulative share price) while the S&P 500 gained 40 percent. Software and services companies performed best, far exceeding the S&P index. Despite the monumental spend on communications services and the technology cycles of 3G, 4G, and now 5G, we must ask, “Where’s the Beef?!”

Communications remains a $trillion+ business and the telecom industry struggles to reap the value-based benefits while achieving measurable growth in adjacent markets.

Is Wall Street mad?

Wall Street values growth. First sales, then profitability, and both with predictability. Fast growers earn higher premiums, so it’s common to see unprofitable growth companies achieve high valuations and share price trajectories. This is generally the case with software companies.

Those embracing the Cloud and SaaS are the “darlings”, especially those with predictable revenue streams. Markets aren’t always efficient, and investors

Relationships are at the center of all we do and relationships are the biggest differentiator in customer and brand loyalty. Customers don't recommend businesses they like. They recommend businesses they love.

aren’t always rational. Extreme fluctuations in share prices at points in time are commonplace.

Enter the strange case of Twilio. In June 2020, the company achieved a $30B+ market capitalization. How can this be? How can a company that sells APIs with a fraction of the employees, sales, and products be unprofitable yet exceed Nokia’s market value of $25B? The answer is simple. Growth. TWLO captured lightening in a bottle at the right moment in time. Twilio enables developers to easily embed communication (voice, video, txt, email) directly into apps and websites using a platform approach. The result? Seamless communication across channels and touch points regardless of the device.

In his 2008 pitch to Venture Capital, Jeffry Lawson, Co-founder and CEO of Twilio, said, “We’ve taken the entire messy and complex world of telephony and reduced it to five API calls.” (Reference 3) So where IS the beef?

The spoils belong to the innovators. Today in the world of telecom, innovation happens on top of connectivity. Extreme players like Netflix, Amazon, Google and Facebook have focused on “stealing” high-value customer touch points in the user journey, leaving telecoms with the commodity touch points. Massive investments in connectivity have failed to deliver massive returns on investment.

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We live in a relationship economy where human-centered experience matters more than moving faster. Relationships are at the center of all we do and relationships are the biggest differentiator in customer and brand loyalty.

Customers don't recommend businesses they like. They recommend businesses they love.

Just around the bend

First, the good news. Entering the 5G cycle, pockets of opportunity peek their heads above the horizon. A recent GSMA (Reference 4) report says the global mobile revenue outlook will remain stable with a potential upside from 5G within the IoT and Enterprise segments. These markets take time to develop. Over the coming five-year period to 2025, the industry is expected to achieve ~1percent YoY growth.

Dynamics and realities: (Reference 5) CSPs face a common dual challenge: defend core operations and grow in adjacent services. While non-telecom services oer a boost, it’s an option for only a handful of operators. Profitability from these services need scale and a balance between revenue growth and margin dilution. CSPs need an Enterprise 2.0 (Industry 4.0) story extending beyond connectivity in the 5G era to compensate for the stagnating consumer segment.

For most major groups, mobile and fixed telecoms account for 80-90 percent of revenue, with non-telecoms at 10-20 percent including pay tv, media, IoT, digital services, and enterprise solutions.

Non-telecoms services are a $10B business for some operators. IoT accounts for 1-2 percent of total revenues ranging from 0.4 percent (China Telecom), 1.7 percent (Vodafone), and 4.7 percent for outlier SK Telecom. In 2018, Verizon was the leading operator with $1.6B, invested in solutions for smart homes, digital buildings, healthcare, logistics, and insurance (Reference 6) mainly via acquisitions.

CSP’s need an Enterprise 2.0 story that extends beyond connectivity in the 5G era to compensate for the stagnating consumer segment.

Slow and steady wins the race. Or does it?

We’re all familiar with the “Tortoise and Hare” fable of childhood and its lesson that slow and steady wins the race. However, the fable also illustrates the peril of resting on our laurels. Slow growth doesn’t mean no growth. Like the tortoise, markets are challenging but steady as 5G ramps up.

In his book, Nassim Taleb defines a Black Swan as an event of low probability,

The coming decade belongs to the innovators challenging the status quo, breaking the rules, forging ahead, and asking for forgiveness after. We cannot rest on our laurels.

extreme impact, and with only retrospective predictability. Black swans change the status quo, creating a new normal. What Black Swans? The World Wide Web turned 30 in 2019. Twenty years ago, Google was in its infancy and Twitter and Facebook didn’t even exist. While it could be argued that COVID-19 is not a classic black swan event, working remotely sparked a sharp turn toward cloud, connectivity, and advanced security.

SpaceX, the rocket company founded by Elon Musk, is trying to launch an internet revolution with Starlink. No one anticipated that an innovator could viably deploy a planetary grid of 30,000 low orbit satellites, delivering high speed low latency broadband service across the planet. Harnessing advancements in satellite technology and challenging the assumption that rockets were single use, satellites are launched 60 at a time and connected via laser without geographic boundaries.

The coming decade belongs to the innovators. They will challenge the status quo, break rules, forge ahead, and ask for forgiveness after. We cannot rest on our laurels.

Thirty years and counting: transforming mobile to a General Purpose Technology The blink of an eye in the evolution of technology, ~30 years. Each mobile technology innovation launches with fanfare and predictions of the “killer” use cases driving network investment and end user spend. With 2G and 3G (peopleto-people) and 4G (people-to-information), predictions focused on consumer services. With 5G, fanfare rallies around enterprise and industry 4.0.

IHS Markit (Reference 7) sees 5G as a catalyst, thrusting mobile technology into the exclusive realm of GPT’s, delivering a profound effect on economies, industries and lifestyle. The company forecasts: • In 2035, 5G will enable $13.2 trillion of global economic output.

• The global 5G value chain will generate $3.6 trillion in economic output and support 22.3 million jobs. The value chain includes technology firms like network operators, infrastructure/technology vendors, component providers, device manufacturers, and content and app developers.

• The 5G value chain will invest an average of $235 billion annually (R&D and capex) continuing to expand and strengthen the 5G technology base within network and business application infrastructure.

Considering an accurate prediction of a Bull case scenario, 5G opportunities could be massive and drive a decade+ long run of steady growth. In a Bear case scenario, innovators and disruptors like Space X Starlink achieve scale and inflict pain on incumbents.

CSPs may be nearing a plateau of exponential gains in connectivity innovation with 5G. We are approaching limits on faster. We need to focus on smarter, using software to innovate within connectivity. What could that look like? Perhaps connectivity on demand created for a specific purpose or an application delivering a data-driven experience or connectivity that builds emotional connections with consumers, employees and partners.

Time will tell as 5G ramps up but as an industry, we must achieve a different outcome in the coming decade.

5G opportunities could be massive and drive a decade+ long run of slow but steady growth and market cap appreciation for the winners.

The roaring ’20’s Where have we come from and where are we going?

The roaring ‘20s

Does history repeat itself? Let’s flip back 100 years. The age of jazz. Economic prosperity and carefree living for many. A decade of change punctuated by cars, radios, and telephones. We needed good roads. Radio brought the world into our living room. Phones connected family and friends. Industry flourished.

Unions were rising and more before the Great Depression.

Given the COVID-19 crisis and its toll on economies worldwide, are we facing another unprecedented depression? Or are we facing the next wave of faster,

We face an exciting time in history where new and transformative technologies can generate trillions in economic value creation, while socio-economic shifts create a new world order.

better, and cheaper as new technologies gain traction? We face an exciting time in history where transformative technologies can generate trillions in economic value creation, while socio-economic shifts create a new world order.

General Purpose Technologies (GPTs) impact economic growth, transforming the world we live in. They are pervasive, improve over time, and spawn innovation.

We are at the dawn of six potential GPTs converging within a close time proximity. They are 5G, blockchain, artificial intelligence, energy storage, robotics and DNA sequencing. Imagine the impact on the demand for software.

The closest comparison is the second half of the 20th century when the internal combustion engine, electricity, and the telephone changed the way we travel, work, and connect with each other. From a socioeconomic perspective, major shifts are afoot in demographics, global economic power, consumption habits, and heightened environmental awareness.

Let’s look closely at these disruptive forces, themes, and trends. Companies preparing and investing in these trends will ride the tailwinds created. Those illprepared and late to the party, face increasing competitive pressures.

The age of Aquarius The age of Aquarius heralds disruption. Nothing will ever be the same. It’s a rebel with a cause and sometimes without one. In short, we take an educated guess about disruptive technologies. Some will disrupt. Others will burn out and fade away.

General Purpose Technologies (GPT’s) share some common attributes. They lead to new innovations with a deep and sustained impact across a broad range of industries. They often redefine economic competitiveness and transform societies. (Reference 8) While there is no single consensus on GPT’s, mega-trends and themes, there is some commonality. The graphic below depicts the top nine technology themes from Global Data’s 2020 thematic research on the Tech, Media, & Telecom (TMT) industries. (Reference 9)Their theme map covers disruptive technology, macroeconomic and regulatory themes. As expected for technology, 5G, IoT, Cloud, FinTech, AI, and other well-known themes make the list.

A recent 2019 white paper from ARK Invest, (Reference 10) a well-regarded investment management and research firm, presents an intriguing view of five major platforms and technologies that may rise to GPTs over the next decade.

Ranked highest are blockchain, adaptive robotics, neural networks, autonomous mobility, and DNA sequencing.

“According to our estimates, the five technology platforms listed should generate more than $50 trillion in business value and wealth creation over the next 10-15 years.”

“We believe that historians will look back on this era as one of unprecedented technological foment. They will see critical inflections in artificial intelligence and DNA sequencing and editing; they will recognize this as a 10-year stretch when robotics proliferation became inevitable and when the battery became the fundamental unit of energy delivery; and they will identify blockchain and cryptocurrencies the roots of the structure that would grow to upturn the entire business and financial landscape. According to our estimates, the five technology platforms listed should generate more than $50 trillion in business value and wealth creation over the next 10-15 years.”

They believe that neural networks and adaptive robotics will transform every sector and be on par with the Internet. While some believe that blockchain is a small tool in the armory rather than a panacea, ARK believes its upheaval will be as significant as the introduction of the automobile, computers, or the internet.

We believe that software plays a leading role in disruptive technology. Simply stated, you can’t have one without the other.

On the eve of disruption AI learning systems will provide immense competitive advantages to the companies whose business models are centered on data, transforming all sectors of the economy including healthcare and financial services.

Improvements in energy storage will change the distribution dynamic by moving generation of electricity to the edge of networks, creating millions of microproducers. Declining battery costs will drive changes in form factors from consumer devices like artificial and virtual reality headsets to aerial systems like drones and air taxi’s. Uber Elevate asks us to imagine aerial ridesharing at scale, “soaring above congested ground traffic”. The company plans shared air transportation in 2023 in Dallas, Los Angeles and Melbourne.

As the costs of DNA sequencing combined with massive computing continue to drop and the use cases move out into volume production, the century old medical system will transform from treatment to cure with precision medicines.

Robots will sit alongside humans in a multitude of environments transforming any business that relies on physical processes and workflows from food preparation to retail to the transportation of people, parcels, and food.

As blockchain moves beyond bitcoin, more will become money-like, meaning it can be easily exchanged, liquid, and quantified. All money and contracts will likely migrate onto open source protocols, enabling de-centralized proof of transfer and ownership. The financial ecosystem will be forced to become more transparent and suffer declines in transaction and execution costs. Every corporation and consumer will need to adapt.

Disruptive forces can cause dramatic reversals of fortunes over a decade. The iPhone didn’t exist until 2007, Facebook had 100M users in 2008, Netflix was still mailing DVD’s, and rideshare hadn’t yet been invented. The traditional auto industry now faces an existential threat as Battery Electric Vehicles reach a tipping point.

No sector, industry, or company in the world will escape the impacts of change now underway.

A new world order

Like a GPT, socio-economic forces conform to a common definition. Megatrends will be around for 5-15 years. They are solidly established and expected to endure with common elements across multiple industries. (Reference 11) Although there is no single view of the dominant forces and the mega trends they drive, there is some consensus among analysts.

We highlight five dominant forces spanning social, economic, global, and environmental categories.

Forget everything you know

The faces of our consumers are changing. The world’s population is aging and

over the next decade, nearly 1B people will be age 65 accounting for nearly 13 percent of the world’s population. People are on the move into big cities. By 2030, >60 percent of the world’s population will be urban. There will be 38 megacities with populations of over 10 million leading to technology explosions in retailing, city planning, and IT infrastructures. Gen Y and Gen Z digital natives will represent the majority global population, firmly planting their values and buying power across the globe.

A dramatic economic power shift underway moves away from stagnating developed markets to developing and emerging markets that are growing faster.

Middle class spending in these markets is projected to rise by two-three times over the next decade. By 2030, China’s GDP is expected to be nearly double that of the US, growing to $60T+ in purchasing power parity. India’s GDP is projected to nearly approach that of the US (nearly $30T).

These new countries have shifted from the BRIC’s (Russia and Brazil have faltered) to the ICASA countries (India, China, Africa, and Southeast Asia).

Globalization is progressing while facing powerful headwinds as antiglobalization sentiments are growing. (Reference 12) The dramatic rise in crossborder data continues unabated with global data flows outpacing trade and financial flows. Cross-border data flows have increased at rates approaching 50 times those of last decade and continue to rise.

A dramatic economic power shift underway moves away from stagnating developed markets to developing and emerging markets that are growing faster.

Values are changing. The massive adoption of mobile internet connectivity, digitization, and online shows new patterns of consumption. Gone are the days of ownership. Having access to everything is the norm in the sharing economy.

We prefer experiences over ownership.

Simplification, convenience, and instant access are table stakes. We want it. We

We expect to be treated as an audience of one and seek out brands, products, and services that deliver on that promise.

want it now. We expect to be treated as an audience of one and seek out brands, products, and services that deliver on that promise. We are focused on health, wellness and ethos for people, local communities, animals, and the environment. We have upped our expectations and these values drive how, where, and who we spend our money with.

Climate change is undeniable. We see more natural disasters and abnormal weather patterns every year. As polar caps melt and water rises, Arctic animals and ecosystems become endangered. Heightened awareness of the environment, challenges, and consequences drive consumer behavior.

Many corporations express their environmental and social conscience in products, services, and community eorts. The investment community notices when companies adhere to environmental, social and governance standards (ESG).

Rise up, gather ‘round Digitization brings an ever-expanding menu of information access, choice, and convenience leading to the rise of the individual and a power shift from brands and companies to consumers. Consumers are firmly in the driver’s seat.

Traditional Business-to-Any (B2X) models are giving way to Consumer-to-Any models like C2B, C2C. McKinsey says, “Customers are taking the driver’s seat in steering the products and services that companies develop. They can communicate with companies directly and in large numbers for the first time. What they want is more variety, more specificity, and greater self-expression.”(Reference 13) Retail offers personalized styling services. We specify what we want and expect to receive more of what we’re likely to keep. Factory robots churn out one-of-a kind products. Soon, people will provide their DNA and precision medicine will deliver a cure in the mail. Consumers are co-designers. More frequently, they’re providing the product to each other in the growing any-to-any ecosystem model.

Unlike horizontal platform players like Google, Amazon, Facebook, and Apple, any-to-any platforms like Airbnb and Uber are asset lite, needing only an arbiter that connects buyers and sellers. Airbnb doesn’t own properties. Uber doesn’t own vehicles and peer-to-peer rental car sharing are challenging the foundations of the car rental industry.

According to McKinsey, “The economic fundamentals, the power balance between buyers and sellers, the role of assets, and the types of competitors are shifting. Companies with foresight and imagination that keep up with the pace of change have unprecedented opportunities”. (Reference 14) Opportunity to create new value will abound over the coming decade. However, the bar has been raised.

“Customers are taking the driver’s seat in steering the products and services that companies develop.”

A new horizon: A change will do you good What’s next?

A New Horizon: A change will do you good

Experiences are being elevated to new heights. 2019 saw the launch of the first public company dedicated to space tourism. The company already has a backlog of 600 would be “tourists” depositing $250,000 to ride the near edge of space.

On the flip side of experience, value is being redefined. A duo of DNA technologies demonstrated that certain longstanding incurable diseases can be cured. How much would we pay for a personalized pill or procedure that gives

The new digital horizon holds promise where the most masterful purveyors of delight redefine experiences, the meaning of value, and ultimately reap the rewards.

back decades of lost life? We may soon witness Life-as-a-Service (LIFEaaS) paid by monthly subscription.

Innovative technologies enable new levels of experience and value. Combined with other exponential technologies, the pace of disruption accelerates. The foundations of industry are shifting at hyper-speed, creating a vortex of change across everything we know. Some will capture the opportunity. Some will misplace investments and falter. Some are already dead and just don’t know it yet.

The new digital horizon holds promise where the most masterful purveyors of delight redefine experiences, the meaning of value, and ultimately reap the rewards. Innovators see past the collective blind spots and accepted rules of industries. They forge ahead and seek forgiveness later.

Rules were made to be broken

Rules matter. Or do they? It depends. Some rules embrace established norms or laws. While rules dictate the way that things have always been done, some feel dated and exist to protect incumbents. The jury is still out whether the Uber’s and Airbnb’s will claim victory. Yet, when rules change, things that were impossible become possible.

Connecting the unconnected remained unviable without a rule change to rockets. The 30-second restaurant drive-thru remained a commuter dream until an innovator ruled the drive-thru serves digital orders only. Buying a car at a dealership would remain painful without a move to online only, bypassing a century old rule.

Champions of change approach rules with a new mindset. They challenge the status quo. They break the rules and create a new order.

Champions of change approach rules with a new mindset. They challenge the status quo.

They break the rules and create a new order.

A bit of alchemy Rory Sutherland, author and vice chairman of Ogilvy believes there’s a case to be made for magic. In his book, “Alchemy, the Dark Art and Curious Science of Creating Magic in Brands, Business, and Life”, he argues that we have become too logical, too rational, too conventional, and too structured in our approaches to finding solutions to problems.

Unique. Distinct. Digital disruption anchored in human-centered technology sets us apart from the competition.

“We often turn our back on illogic when in fact there are hundreds of seemingly irrational solutions to human problems just waiting to be discovered if we only abandon standard-issue naïve logic in the search for answers”. (Reference 15) He argues that if we follow logic, we’ll likely end up with the same solutions as our competitors. His approach to problem solving is psychology-based logic, or “psycho-logic”.

Some Rules of Alchemy 1.

2.

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It doesn’t pay to be logical if everyone else is logical.

The problem with logic is that it kills off magic.

Test counterintuitive things only because no one else will.

Solving problems using rationality is like playing golf with only one club.

If there were a logical answer, we would have found it.

“Engineering doesn’t always allow for magic. Psychology does. In math, 1 + 1 = 2. In psychology, 1 + 1 can equal 3 (or more). “We don’t value things; we value their meaning. What they are is determined by the laws of physics, but what they mean is determined by the laws of psychology.”

In the 2020’s, roaring louder and prouder than the 1920’s means jumping past our comfort zone to leap-frog long time and unknown competitors. We must break the repetitive cycle of using buzzwords and table stakes to differentiate.

We’re building the same solutions as the competition and depending on marketing to make us different.

What about finding a unique software solution to address a pain point or unmet need? Magic is more than just illogic. Magic is delivering delight while making the technology transparent. Product design anchored in human-centered solutions can set us apart from the competition. A business strategy backed by true innovation can catapult the world forward into a new dimension. Who’s up for the challenge?

Innovators aren’t always the ones with the first idea. The first iPod grew from a conflict between the music industry protecting their business model and open access to music on any device. The compact-disc industry plummeted from $17B to $2B in a decade. What’s the point? As important as connectivity is, we don’t want to pay much for it. “We spend more on designer coffee every month than we pay for our data plans,” (Reference 16) says one telecom executive, yet COVID-19 shows how critically important connectivity is.

The digital horizon

Nearly a decade into Marc Andreessen’s proclamation, software continues to eat the world. We are entering a new horizon, a digital horizon. Innovative digital technology is everywhere, across all industries, not only CSPs. COVID-19 has only accelerated appetite for disruption. New technologies scaled overnight instead of years. In a few short months, we’ve adopted new behaviors for how we work, commute, shop, educate and learn, conduct financial transactions, seek healthcare, dine, entertain and more. Software stepped in to solve some of the challenges caused by COVID-19, including our human need to connect.

Barriers once nearly impossible to break have come down in a matter of months. Operators were struggling to get customers onboard using their apps, fighting resistance to change from in-store visits or calls. The adoption barrier is broken.

Facing many regulatory hurdles, telemedicine labored for years to overcome them. Now a care-based app for mental health issues that needed local approval in each of the 50 US states is not only allowed, it is covered by insurance. Another regulatory barrier is broken.

We are entering a new horizon, a digital horizon.

Innovative digital technology is everywhere.

In the early days of the COVID-19 lockdown, Nokia approached two of America’s hard-hit states, New Jersey and Illinois. The Nokia Experience Center with support from Bell Labs, proposed a method to track population movement and correlate this with the spread of the disease. Software powered by AI associated COVID-19 hotspot data with mobility patterns to manage movement on a hyper local basis. This allowed state governments to make informed policy decisions

The spoils belong to the innovators. Like the prior decade, innovative enterprises continue to harness the power of software. They take friction out of existing experiences and create a new normal in the process.

to contain the spread.

Policy makers need better mobility data to boost the opening of economies.

The Nokia Experience Center provides real-time monitoring of human movement patterns to help avoid a deadlier second wave of COVID-19. With sophisticated analytics, countries worldwide can confidently see acceptable and safe mobility patterns, reducing the risks to economies and human health.

The new 20’s are off to a roaring start! Who will reap the rewards? Despite the economic upheaval of COVID-19, the tech heavy NASDAQ continues to set new highs as technology trends take hold. Is Wall Street disconnected from the stark economic reality of Main street? Not really. The spoils belong to the innovators.

Like the prior decade, innovative enterprises continue to harness the power of software. They take friction out of existing experiences and create a new normal in the process.

The World Economic Forum predicts, “innovation will also lead to a supply-side miracle, with long-term gains in efficiency and productivity. Transportation and communication costs will drop, logistics and global supply chains will become more effective, and the cost of trade will diminish, all of which will open new markets and drive economic growth”.

Growing transparency, consumer engagement, and new patterns of consumer behavior force companies to adapt the way they design, market, and deliver products and services. Experiences are rising to new levels in the physical, digital, and virtual worlds. The fundamentals of business are changing.

Companies and entire industries are in the crosshairs of disruptive innovation and formative shifts.

Old tech has been put on guard, again. Comfort zones have become a lot less comfortable. The future is faster than we think. As we journey into the unknown, software will play a leading role.

And in the end . . .

If 5G networks are the backbone of the fourth industrial revolution, smart, innovative software is its lifeblood. Software fuses our biological, physical and digital worlds and helps our customers connect their customers to a world of new possibilities.

Nokia Software is the leading player in telecoms software, generating €2.8B in sales and €589M in operating profits in 2019. With nearly 15,000 software employees, we build, sell, deliver, and operate an iconic portfolio offering unique products that securely deliver differentiated services, intelligently automate business and operations, and deliver an extraordinary customer experience.

Using the latest innovations in software, many CSPs are transforming to a digital, automated business model and most large operators buy software independent of underlying Mobile or Fixed Access vendors. Within software, they often choose best-of-breed solutions from multiple vendors.

We support their digital transformation with a modern, purpose-built cloudnative portfolio of software assets, an unmatched combination of softwaretelecoms DNA, global delivery and development, and a true, open, multitechnology and multi-vendor approach. There is whitespace in telecoms software and product segments we can address for significant growth. With our modern, cloud-native assets we are ready to meet the challenge of the coming shift of the telecoms software industry towards Software-as-a-Service (SaaS).

Software fuses our biological, physical and digital worlds and helps our customers connect their customers to a world of new possibilities.

Software is pervasive, underpinning industries and private and public sector organizations and opening new opportunities for Enterprise customers to challenge the status quo, connect and digital their businesses. Nokia Software is there, helping businesses transform to take advantage of the new digital economy.

With eyes on the future, differentiated design, and an iconic suite of products we empower our customers to thrive in digital time.

We are a world class software supplier with a unique Common Software Foundation (CSF), home to over 100 software infrastructure components. The CSF was created to bring products to market faster and deliver a more consistent software “suite” experience for our customers.

Addressing the explosion of software deployment choices on private, public or hybrid clouds, Nokia Software creates all next generation applications using cloud-native practices. Our CSF Platform (CSFP) takes digital evolution yet another step forward. Applications can be cloud agnostic, meaning, built once and deployed on any public, private or hybrid cloud.

Working from the outside-in, we co-create human-centered software with our customers in the Nokia Experience Center and seamless data-driven solutions in our Digital Operations Center, our first network slicing management product.

The road ahead Given the six GPTs predicted to define the future, our commitment to create software that no one has even thought of yet sets apart from others. With eyes on the future, differentiated design, and an iconic suite of products we empower our customers to thrive in digital time. What we do is rare, which is exactly why we do it.

What we know: 1. Sophisticated software powered by smart analytics and artificial intelligence drives change at hyper speed.

2. Companies across all sectors embracing change, deliberating innovating, and creating human-centered experiences are the ones destined to grow and prosper.

3. We understand what digital change means and how to move our customers into the fast lane of innovation, disruption and success.

What to expect from us

In this world of disruption unseen for 100 years, software holds the key to a future-forward world with smart, industry savvy, people-focused technology.

We are inspired by the potential.

• We will facilitate opportunities for the rising global middle class.

• We will reimagine megacities.

• We will empower consumers and enterprises.

• We will drive sustainability solutions.

• We will play the arbiter in the platform economy.

• We will go after the $50T at stake as GPTs take hold.

We’re ready to challenge the status quo. Are you?

Software holds the key to a future-forward world with smart, industry savvy, people-focused technology. We are inspired by the potential.

About the author

Rob Brunetti Director of Portfolio Strategy & Management, Nokia Software Naperville, Illinois

Rob is currently a member of the Nokia Software Portfolio Strategy team, having joined the team in January 2019. As a Strategy Director, he contributes to the creation, evangelism, and evolution of NSW’s strategy and vision. He conducts research and analysis to help set strategic direction and drive product/solution strategies.

Prior to his current role, Rob held various leadership positions within Lucent, Alcatel-Lucent and Nokia that included design, development and out-of-the-box ideation and prototyping. With a passion for strategy, he’s spent the past 13+ years as a business strategy leader at the unit and group level leading high performance teams in portfolio analysis, M&A, and other strategic activities.

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