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LATEST THINKING


OVERVIEW

Technology and communications companies have an unprecedented chance to seize the IoT (Internet of Things) moment. If they place the right bets, the payoff will be enormous. If they stumble, they will likely lose millions to competitors who made wiser strategic choices.

Understandably, many technology and communications companies are looking to develop IoT platforms. That’s probably not the smartest play. The greatest opportunity may lie in developing the software and analytics capabilities in those parts of the information chain they have already mastered.

By building on their strengths, they can zero in on winnable—and lucrative—pockets of value.

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KEY FINDINGS

By some estimates, the IoT market will be worth $14 trillion in just a few years. A number of companies are staking their claim by building end-to-end platforms. Already some 300 platforms exist, and more are being introduced every year.

The hard truth, however, is that few platforms will actually gain traction. Accenture Strategy believes no more than 10 percent of today’s IoT platforms will succeed.

So what’s a technology or communications company to do? Invest in the truly winnable opportunities that lie in the software products and analytics capabilities that drive actions and derive insights and intelligence from data.

It is estimated that these areas of focus will make up 25 percent of total IoT value by 2020.

AGE OF IoT


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RECOMMENDATIONS

Technology and communications companies should:

  • Suppress their platform obsession. Honestly assess whether you have what it takes to succeed in the platform wars. Walking away may be the wisest strategy of all.

  • Identify winnable pockets of value. Focus on making data more valuable and accessible. Build on existing strengths to create solutions and services that add value to the data as it flows through the value chain.

  • Pick the right teammates. Data is most valuable when it’s part of a system that combines People, Products and Processes (PPP). Identify the right ecosystem partners to create win-win PPP opportunities.

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2017 WORLD ECONOMIC FORUM INSIGHTS

Digital Transformation Initiative Telecommunications Industry

The digital revolution the world is now experiencing has been dubbed the Fourth Industrial Revolution. The telecom ecosystem provides the fundamental building blocks—access, interconnectivity and applications—that are enabling this digital revolution to take place.

But, we still have road to travel. A large share of potential value stemming from digitization across global industries over the next decade is dependent on the telecom industry delivering essential infrastructure, applications and productivity improvements in many areas.

So far, the role of telecom operators in accelerating digital business and service models has not translated into new value for them. Operators' share of the industry profit pool has declined from 58 percent in 2010 to 47 percent in 2015, and is forecast to drop to 45 percent in 2018.

Better times loom over the next decade due to the digital transformation of telecommunications, with more than $2 trillion in opportunity for industry and society.

To learn more about how your company can get into the telco digital swim, check out the report Accenture produced for the World Economic Forum on Digital Transformation in the Telecommunications industry.

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WHO WE ARE

Golnar Pooya has been helping Communications, Media and Technology companies develop and execute strategies to capitalize on growth opportunities presented by new and emerging technologies and markets for the past 18 years. Golnar focuses on identifying new revenue opportunities in emerging technologies such as Analytics & AI, Big Data and Internet of Things, developing and executing Ecosystem Partnerships, defining new technology innovation commercialization strategies and developing platform monetization strategies. Most recently, Golnar has focused on structuring strategic growth initiatives for leading technology companies across their ecosystem, to help accelerate and scale growth in emerging technologies such as IoT. Golnar is based in San Francisco.

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Sergio Tieri advises clients on designing business strategies that lead to growth and innovation. With over twenty years of experience in the Communications and Media sector, he focuses on developing go-to-market strategies, defining new product and service opportunities, developing and executing Ecosystem Partnerships and assisting clients in their digital transformation through innovative technologies. Sergio is based in London.

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