Communications industry CEOs are concerned about their company’s ability to keep up with the speed of technological change. And they’re looking to strategic alliances or joint ventures to propel growth, as shows the recently released CEO Survey.
Innovation still on top of CEO’s agenda
Communications industry CEOs know they need to innovate. Product/service innovation was selected by 41% of communications respondents when asked what they see as the main opportunity to grow their business (as compared with 35% of respondents from the global sample). And 49% of Communications industry CEOs said developing an innovation ecosystem that supports growth is a priority over the next three years.
Restructuring is top priority
In the last twelve months 62% of Communications industry CEOs entered into a strategic alliance or joint venture, compared with 34% from the global sample. More activity is on the horizon: 54% of Communications CEOs say they plan to enter into a new strategic alliance or joint venture in the coming twelve months.
Planning time horizon
When asked “what is your current planning time horizon?” 56% of communications industry CEOs answered “three years”. The industry is changing too quickly to predict what will happen in just five years.
Still confident on growth
72% of Communications industry CEOs are somewhat or very confident about their company’s prospects for revenue growth over the next twelve months. However, when asked about their confidence level about their company’s prospects for growth over the next three years, a stunning 90% said they are somewhat or very confident.
Considering the conclusion of this report, here are some cross-industry questions that would help us plan for the future:
- What does the “right” innovation strategy for my own business look like? Do we want to keep everything in house? Create an incubator? Develop a JV?
- The control-oriented management style that’s well suited for traditional connectivity services clashes with the fast-paced decision-making requirements of innovation today. So how can we best organize the business to foster innovation?
- The market’s expectation of “anything, everywhere, anytime” combined with shifting profit pools across the content, application, services, and network value chains requires an examination of relevance in this rapidly evolving ecosystem. What is our response to these market changes?