Strategic cost management
By now, most operators have done the basics to help drive costs out of their businesses: reducing head count, outsourcing non-core capabilities, rationing capital expenditures and improving procurement.
What is left? What innovative approaches to reducing costs are communications companies taking to improve return on investment? Some are considering infrastructure sharing or outsourcing; some are focusing on customer value, pruning product and customer portfolios to retain the maximum value and ensure that cuts made elsewhere in the business do not impact key customer segments.
The guiding principle in this next stage will be to identify where the value is in your business and your customer base and to understand how to retain that value.
How PwC can help
Communications businesses need to look at applying trends in digital convergence to enhance their offerings and secure a competitive edge. For your company to come through this economic crisis, technology changes may be the key.
Such changes could include:
- Implementing complex programme management and an independent governance office
- Adopting technology solutions for managing suppliers and the full sourcing process
- Outsourcing information technology and transforming sourcing into a core strategic function
- Delivering and embedding technology and information security
- Consolidating and transforming billing systems
- Applying technology to support revenue assurance
- Analysing the effectiveness of technology investment
- Employing technology to realise unseen quality and benefits
- Developing technology people (including building an organisation capable of retaining them)
Whether your company is looking at technology changes or at overall strategic shifts, PwC can help.