Software greasing the wheels for Technology, Media and Telecom transformationFollow @PwC
Technology, Media, and Telecommunications: just thinking of these industries brings to mind legendary innovators, scrappy startups, emerging technology, and creativity in the pursuit of the solutions of the future.
But we’re not alone anymore…
Software is fueling the development of technology and services-based business models for all industries, and hastening the breakdown of industry walls. Convergence within the Technology, Media, and Telecommunications (TMT) industry is being met with the rapid escalation of technology acquisitions by non-TMT companies.
As our own Barry Jaruzelski said recently in the Wall Street Journal, software is “becoming the oxygen” for all established companies – regardless of whether their roots are in brick and mortar retail, century-old consumer product brands, manufacturing, or mobile apps.
So, how can TMT companies succeed amid convergence, increasing competition, and the threat of commoditization? We have identified four guiding principles that can provide a blueprint for successful transformation from a products company to a “software and services” company.
- Optimise your current position: Think about where your company currently lives in the value chain, and assess whether to expand, transforming your connection with the customer and path to market, or connect, structuring the company to be open and connected with “megahubs” – ecosystem platform drivers.
- Mobilise and monetise models: IT and business operating models must unite to create a single digital operating model. This also requires adapting service models for business through monetisation of core data, value-added services, cost savings through scale, as well as moving fixed assets to consumption-based models.
- Focus on customer outcomes: Rather than thinking narrowly about products, or even service offerings – focus instead on how to link core capabilities with the outcomes that customers are looking for.
- Build a technology “lingua franca” (and an understanding of risk): Establishing a common language around digitisation, and a shared culture of innovation, will help facilitate the seamless collaboration necessary for moving at the speed of technology. Importantly, as companies embrace emerging technologies, they should account for the associated risks and costs. While future success won’t be possible without becoming open, connected, and networked, it is crucial that CEOs assess the cyber and data-privacy threats that can emerge from such a structure, and that the right service partners and protections are in place.
While we can’t see the future, we can prepare for it. Our latest article on this topic, “Software greases the wheels” provides additional insights on how to take decisive action now to prepare for the continued evolution of our industry – and the breakdown of industry walls.
Brad leads PwC’s Global Technology, InfoComm, and Entertainment & Media practice, a role in which he oversees PwC’s Technology, Media & Telecommunications (TMT) clients across the PwC network. In this capacity, PwC provides services to over 90% of Fortune Global 500 TMT companies.