Despite the complexities of the technology, media and telecommunications sectors, there is immense opportunity for mid-market enterprises to disrupt dominant ways of operating, and engage new customers for growth. In a series of three viewpoints, KPMG Enterprise explores how this can be achieved.
After a promising period at the turn of the millennium, the Australian Technology, Media & Telecommunications (TMT) sector has experienced immense highs and lows. In 2017, it is clear that the challenges of new technology, digitisation, constant product disruption by new players, and complacency by sector incumbents has seen a number of long-standing organisations lose their shine. Meanwhile, others have surged onto the scene with rapid speed.
Despite these complexities, there is good news for mid-market enterprises already in the sector, or looking to establish a presence. Thanks to steady venture capital investment and continuous technology innovation, there is opportunity to disrupt the way products and services are delivered, and to seize market share. This potential is boosted for medium-sized companies thanks to their ability to be more agile and adaptable than industry incumbents.
However, to cement a place in the TMT sectors, enterprises have to think boldly about the future, and understand the vast expectations of customers and the extremely competitive landscape – from Australia and internationally – to have the best chance. Innovating to offer something completely unique is the standard baseline to gain market share.
Drawing on our deep experience in the TMT sector, and awareness of the challenges and complexities that the industry faces now and to come, we have developed a series of viewpoints – Technology, Media & Telecommunications: Changing competitive dynamics and implications for mid-market companies – delving into how mid-market organisations can make the most of this dynamic area.
In viewpoint 1, Shift from engineering centricity to services-driven customer centricity, including the continued growth in Over the Top (OTT) services, we explore how the increasing role of technology intellectual property, together with lowered access to industry entry, has brought about the commoditisation of technology.
We show that while many TMT companies have traditionally focused on engineering or network excellence as their point of differentiation, these factors are no longer enough to stand firm. In addition, we demonstrate how customer expectations of products and services have changed – and why companies must offer something ‘OTT’ to keep them engaged.
In viewpoint 2, we explore the Blurring of the sector lines between Technology, Media and Telecommunications.
Traditionally, TMT companies have provided much of the infrastructure and platforms required to deliver the mass digitisation and digital connectedness that consumers have come to expect. TMT companies were in three distinct sectors, and companies in each sector did not offer related services.
However with technology platforms now created by other parties, we are seeing sectors merge and the creation of new customer engagement channels. We unearth the boundary shifts in TMT, and reveal the potential for enterprises to be at the forefront.
In viewpoint 3, A focus on the creation of original content or content aggregation as a key competitive advantage, we examine why developing fresh content, or content aggregation, has emerged as a key competitive advantage for TMT organisations. We demonstrate why organisations who have pioneered this approach have been highly successful, and the lessons and opportunities for mid-market enterprises going forward.
These three core trends show dynamic changes in the TMT sector, but also great potential for mid-market enterprises to make the best use of their agility and fast decision-making capabilities. They can leverage the latest technology to increase their knowledge of customers, and utilise these insights to improve their customer management practices.
Source: KPMG and Forrester Consulting conducted a global study on disruptive technology adoption trends and the organisational and customer impact of these technologies on technology, media, and telecommunications companies. Disruptive Technology Barometer