NEW YORK, NY – October 9, 2013 – The accelerated pace of business disruption is being triggered by the impact of new technologies combined with the challenges and opportunities of creating a connected experience, which are bigger than ever before, according to a new PwC report, The new digital ecosystem reality: Nine trends rewriting the rules of business. The nine trends outlined in the report are too inter-related to be tackled with an independent strategy. PwC recommends two complementary strategies, one targeting the short-term trends and the other targeting long-term challenges.
“Technology CEOs face the dual challenge of having to understand the disruptions for their own business, but they also need to guide their customers or risk becoming irrelevant,” said Tom Archer, PwC’s US Technology Industry Leader. “With the pace of change occurring faster than ever, technology executives must be prepared to pivot their strategies to address the implications of cloud, social and mobile on their business, fend off new market entrants and adapt to changing customer behavior and spending.”
The first in a series of perspective papers analyzes the key technological, economic and political trends and the imperative for technology CEOs to adapt their internal DNA as they move to new revenue and cost models brought on by the disruption.
Radical shifts in technologies translate to radical shifts in business models. In order to prepare, technology CEOs should consider a variety of steps, including: developing an appropriate innovation strategy that ties in with the corporate vision and company capabilities; determining the best ways of fostering and sustaining organic innovation; identifying opportunities for growth; determining strategic investment bets and identifying appropriate partners for highly integrated digital ecosystems.
According to PwC, in terms of IT complexity, more than half of all companies are turning to the cloud to reduce expenses. They must also adjust their operating model to increase agility through focus on innovation both in technology and processes, in order to lay the foundation for a more-efficient cost structure. Additionally, companies are using technology to get better information faster and cheaper through using social analytics within the connected experience they have with customers and creating a connected experience with suppliers and partners through digital ecosystems.
The convergence of consumer and corporate capabilities has forced most companies across industries to become technology companies. Many companies will need to increase the pace of their customer communications in order to meet these increased expectations.
Employees have become accustomed to the ease of accessing information online, whether through mobile devices, tablets or personal computers. Companies will need to develop enterprise applications that are easier to learn to improve productivity and those that are easier to use on smartphones and other mobile devices.
Technology companies will likely be looking to emerging markets for new business opportunities. Therefore, technology CEOs should think about rationalizing their global operations and simplifying and standardizing business processes and products so that development can be applied across any region, and also tailored for a particular region.
According to PwC surveys, 90 percent of technology companies are focusing on strengthening relationships with customers and clients by increasing engagement and 84 percent are enhancing their focus on social media in search of new customers. Companies can use social media to interact on a regular basis, to deliver information and advice, and thus potentially increase the value of the experience.
Technology companies must be able to accommodate input from social media with input from sales results in order to harness the broad flow of information. This requires developing a variety of systems, for example: data warehouses, analytic tools, storage systems, and business intelligence.
Being able to compete in the global world of technology requires maintaining a balance for technology companies. Companies need to ensure that their systems are accessible to their friends (i.e. employees and business partners) and unavailable to their competitors.
Technology CEOs have already been subjected to extensive regulatory conditions, therefore they must be prepared to track manufacturing and product information, and to be audited on a regular basis.
To address these nine trends, PwC recommends that technology companies focus on extending their own digital transformation across their business units, including manufacturing, supply chain and finance. Digitization supports automation, which decreases response time and increases the accessibility of information which in turn enables companies to be more agile and able to respond to change faster.
“In today’s reality, virtually every company is transforming to become a technology company as technology is creating the value differentiation in every industry with the digitization of product and service delivery. Businesses across industries now require technology providers to bring them new capabilities or platforms necessary to serve their customers,” added Archer.
About PwC US
PwC US helps organizations and individuals create the value they're looking for. We're a member of the PwC network of firms in 157 countries with more than 184,000 people. We're committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at www.pwc.com/US. Gain customized access to our insights by downloading our thought leadership app: PwC's 365™ Advancing business thinking every day
© 2013 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. PwC US refers to the US member firm, and PwC may refer to either the PwC network of firms or the US member firm. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.
Brainerd Communicators, Inc.
Tel: +1 (212) 986-6667