Our economy is in a constant state of flux. Disruptive technology is transforming antiquated business strategies to speed up towards business fitness for tomorrow, consumer behaviour is dictating internal change management and business transformation operations, and organisations all over the world are doing their best to keep up, while trying to carve out a growth strategy that outplays, outwits, outlasts.
When it comes to the Telecommunications industry, tech disruption is no longer the new kid on the block. The industry as a whole is being driven by mobile money, machine-to-machine intelligence and cloud-based intelligence, to name just a few. But what does the outlook look like for organisations planning for growth?
Martin Geddes, a well-known authority on the future of Telecoms, recently described the future of Telecoms as being on a currently unsustainable path, facing 4 key transformations to become sustainable, namely
- An external restructure to integrate with a world of distributed computing services
- An internal shift from a craft-based approach to network design and operations, to a much stronger science-based form of engineering.
- A need to shift from a supply-driven industry to a demand-driven one.
- Any activity that is not part of this “distributed computing infrastructure platform” picture needs to be spun off into a separate consumer digital or enterprise services unit.
We look at 4 top disrupters of the Telecoms industry and their effect on industry and business growth.
All Things Mobile
It doesn’t take a lot of research to understand that global growth of mobile connectivity is far outpacing hardline connectivity. Driven by the needs of their consumers and the growth in smartphone usage signals continuing opportunity for all telecom sub-sectors. However, experts predict that despite the growth of the apparent, they “expect there could be a change in how these opportunities are manifested”, according to Deloitte.
Digital Transformation Operationally
Ironically, in an industry that is driven by innovative and disruptive tech, as carriers and telecoms-based organisations look to remain competitive, many still heavily rely on antiquated and manual internal processes and as the race for 2020 speeds up, will face huge pressures to automate, speed up, and adapt to new technology internally in order to run their businesses more efficiently. As a result of this awareness to digitally transform their own organisations, many have already been seen to make some early dramatic improvements – such as moving away from call centre environments and rely purely on social media and the internet to service customers directly. Areas within telecoms that require the most digital transformation are the customer care, sales and billing functions.
Deloitte recently commented in a report, the following: “We expect that in 2017 the active base of smartphones equipped with biometric fingerprint readers globally will top 1 billion. If each sensor is used an average of 30 times a day, that sums to over 10 trillion aggregate “presses” globally over the course of the year”. With the rise of other types of biometric validation mechanisms, the need for more robust security process and data storage will simply keep increasing. Organisations working in this space will face increased pressures for robust infrastructure that protects and secures.
Long-term Growth: M&A
In the same Deloitte study, and based on the signalling growth indicators of the mobile and connectivity markets, there remains huge potential for organisational mergers and acquisition. According to Deloitte’s M&A Index for 2017, “a characteristic trend of 2016 was companies increasingly turning to M&A and corporate venturing to harness the growth potential of new, disruptive technologies,” and 2017 and beyond looks to continue along that trend, specifically mentioning key growth trends for organisations who will:
- accept that uncertainty is the new normal,
- organisations are creating shareholder value through divestments
- growth fuelled through innovation.
If you are looking for solutions towards growth – we may just be able to help. Speak to us about next stage growth, and organisational excellence.