As telecommunications and technology companies struggle to reinvigorate earnings, they should consider technology-driven recovery strategies already underway at their biggest, most powerful customers—the Global 1000. Many of the most widespread techniques the Global 1000 initiated to combat the downturn have begun to lose their effectiveness. For example, some 42 percent of corporate venturing programs have been abandoned. Executives at the Global 1000 are therefore beginning to look to next-generation technologies as powerful agents for fixing near-term impediments, future-proofing their businesses and bolstering business recovery. Ushering in new technology is a legitimate and compelling tactic as certain technologies have the capability to deliver not just better corporate performance but a sustained uplift in the global Gross Domestic Product. This is evident in the advent and subsequent impact of past mass-market technological innovations such as electricity, the telephone or jet propulsion aircraft. Some of today's proliferating technologies hold the same transforming power to boost today’s economy. For example, a recent Accenture study estimates that next-generation broadband would impact the global economy by more than $1 trillion on mass adoption. In many countries, next-generation broadband is already seen as the key to revitalizing the ailing economy. Accenture has identified seven key technologies that have similar transformative traits, and thus far outweigh other emerging technologies in attractiveness to the Global 1000. This is where we believe the Global 1000 will invest in the coming years. Silent Commerce, where objects communicate with each other and commerce takes place without human interaction, drives profits by making everyday objects intelligent and interactive. Silent commerce applications simultaneously allow for revenue growth, cost reduction and lower working capital requirements. Nineteen percent of the executives Accenture surveyed expect to adopt silent commerce over the next three years. Web Services enable the virtual sourcing of advanced networks and applications, and introduce a new realm of growth opportunities. Analysts have projected that 75 percent of enterprises with more than $100 million in revenue will interface periodically with Web services. Beyond procuring virtual applications, IT departments will also use Web services to commercialize some of their applications and, in essence, turn their CIOs into “internal entrepreneurs.” Next-Generation Broadband not only delivers ubiquitous, secure, low-cost, always-on, right-speed access but could also deliver a $150+ billion annual impact on the Global 1000 through productivity gains, cost reductions and increased business. Next-generation broadband is likely to form the largest marketplace for goods and services—enough to stimulate a broader global economic recovery. Mobility, from mobile phones to ubiquitous wireless LANs, is offering the Global 1000 new capabilities and enabling employees to be productive wherever they are. In fact, by the end of 2003, 1 billion mobile devices are expected to be in use—from phones to utility meters to point-of-sale machines—improving efficiency and saving businesses millions in reduced costs. Mobility also ushers in next-generation market makers who will provide creative information services through mobile access such as mobile valet services. Personal Proxies, always-on intelligent agents can multiply productivity and available hours for work. Proxies arm the Global 1000 with a stream of real-time consumer insight and product performance data to improve marketing and sales. Even a 1 percent improvement in marketing effectiveness would save large companies $10 billion globally. Digital Content Services can broaden revenue streams and save the Global 1000 as much as 5 percent of the total cost structure. Such benefits materialize as companies employ digital content services to commercialize under-utilized media assets and intellectual property, drive out costs using digital document management or offer value-added services for intellectual property owners. Networked Commerce allows multiple companies to integrate seamlessly, share real-time information and bind employees, partners and customers over a controlled transaction platform. This collaborative model offers many advantages such as the ability to build market capitalization and value while continually getting leaner. Some 60 percent of all Global 1000 companies have already launched collaborative commerce initiatives. These seven technologies provide the Global 1000 three significant advantages. First, they increase visibility throughout the business and offer a deeper, more timely understanding of customer preferences. Such predictive insight provides for greater flexibility, the power to seize new and emerging market opportunities and the ability to proactively resize and redefine the business relative to economic conditions. Secondly, these technologies provide for stronger earning potential derived from cost reductions, increased productivity and new revenue streams. And thirdly, because these technologies make companies increasingly asset-light and give them the opportunity to play new market roles, they offer flexible springboards for growth. Implementing, enabling and fostering these transformative technologies for the Global 1000 promise a strong, near-term impact on communications and high tech industries. Together, they imply action for communications and high tech companies to: - Be the core enabler of these technologies. This requires a close review of the current infrastructure, capabilities and market readiness. It also means redefining strategies and value propositions to establish first-mover advantage.
- Be the market maker. Next-generation intermediaries trust agents and aggregators are all manifestations of emerging market maker roles. These roles will materialize quickly, and redistribute the value of each transaction, often away from the traditional communications and high tech leaders.
- Come center-stage in the battle for the “last inch”. There is an increased emphasis on controlling access to the consumer and creating close, personal relationships and interactions. In this battle, the enabler and safe-keeper of personal information and profiles will gain significant value and market traction. Given the “data streaming” nature of this activity, communications and high tech companies have an implicit advantage in this emerging market opportunity.
- Think collaboration. Communications and high tech companies must collaborate to win in the market. In the world of broadband, for example, bundled services, shared networks, broadband-enabled devices and delivery strategies for content are all joining forces to define and serve the next wave of broadband applications.
- Get back to basics. To optimize advantages from delivering these technologies, communications and high tech companies must practice business basics such as defining creative and differentiated propositions or injecting greater visibility throughout the process.
Rather than waiting for the recessionary dust to clear, communications and high tech companies should work now to take advantage of the opportunities these technologies present. Each one offers the chance to achieve astounding gains, competitively serve Global 1000 customers and garner a long-term, defensible business advantage. About the authors: Arnim Whisler is the managing partner of Accenture’s Communications & High Tech Market Maker group. Asheesh Saksena is senior manager in Accenture's Communication and High Tech Strategy group. White Paper Available
An extensive white paper, entitled "What the Global 1000 Really Want," detailing the findings of Accenture’s Global 1000 research initiative is available to all Access subscribers. Order a copy.  To Top
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