Drawing Inspiration from Telcos and Utilities
by Paco Ramirez Neira

Drawing Inspiration from Telcos and Utilities

The roots of Servitization are traced back to models pioneered by Telecommunications (Telcos) and Utility companies, early adopters of subscription models and usage-based pricing. These industries didn't just sell services; “they built extensive infrastructures to serve vast customer bases, often numbering in the millions, spread across expansive networks”. Their commitment extended beyond initial sales or Service Fulfillment to ensuring high-quality services or Service Assurance throughout each customer's lifecycle, a responsibility that required developing advanced systems to quote, sell, deliver, manage, and maintain service reliability at scale.

For Telcos, success meant more than just providing a phone or internet connection; it involved constructing and maintaining a robust network to deliver services through millions of devices, such as telephones, mobile devices, modems, and routers, operational at the network's edge. This "Customer Bridge", laid the groundwork for Networkization, the comprehensive, ongoing responsibility for Telcos to maintain operational quality across a distributed network that reaches directly into customers' homes and businesses.

By mastering this Network Management or Customer Bridge approach, Telcos ensured service continuity, preserved customer premise equipment, secured recurring revenue, and upheld customer satisfaction. Today, this foundational model of Networkization serves as an essential blueprint for other industries adopting service-based models.