STRATEGY CONSULTING GROUP

 
 
              SCG

TECHNOLOGY & TELECOMMUNICATIONS

Technology companies face many common challenges, whether they are in semiconductor devices or equipment, digital devices or network infrastructure, software or IT services. They operate in a global environment. The pace of change is rapid and driven by the unrelenting velocity of technology, the emergence of new competitors, the evolution of customer needs and expectations, and business-model innovations that reverberate across the world.

As a result, they face a number of strategic and operational questions:

  • In what part of the value chain should they play?

  • What technologies should they invest in?

  • How do they create an ecosystem to support their competitive advantage?

  • How can they foster innovation and capture higher margins?

  • What are the most effective customer segmentation, value proposition, and marketing vehicles, and which segments should they target?

  • How can they fuel their growth?

  • As they grow, how can they organize to limit complexity, maintain agility, and drive performance?

  • How do they compete globally?

 

Our technology clients value our strategic understanding of their business and our operational ability to drive to concrete results across the entire value chain—innovation and R&D, manufacturing, supply chain and sourcing, and sales and marketing. We help our clients address their most important issues:

  • Transition from hardware to software and services

  • Evolution of demand to developing countries

  • Move toward customer-centric solutions

  • Mergers and acquisitions and other forms of consolidation in maturing markets

  • Convergence between telecom and media and the need to develop new ecosystems

  • Make, buy, or partner decisions across a deconstructed value chain

  • Creation of strong sales and marketing organizations

  • Coordination of global capabilities and scale with local market knowledge

  • Unrelenting cost reduction

  • Protection of valuable intellectual property rights

 

The technology sector is both a local and a global business. Our practice recognizes that reality by having local-market experts in all regions and countries and by leveraging our global experts as necessary.

 

 

Telecommunications in the next decade will reshape the industry. Internet protocol technology allows telecom companies to offer broader entertainment services but also permits new entrants to attack the established players’ fixed-voice profit pool. Mobile markets are reaching saturation. Telecom companies are entering the IT business and adopting different business models that may dilute margins. In this turbulent environment, telecom companies must address several core questions:

  • What role should we play in the media ecosystem? When and where should we invest in infrastructure, such as fiber?

  • How can we lower subscriber acquisition and retention costs without disrupting market share?

  • How far should we move into IT services to protect relationships with key corporate clients?

  • Can we redesign our systems to improve customer satisfaction while reducing cost?

  • How can we fund large investments like fiber-to-the-home and mobile broadband?

  • What role should we play in regional and global consolidation?

 

SCG’s Telecommunications sector experts work closely with senior executives on a range of key strategic and operational issues.

 

Corporate vision and portfolio

  • International Consolidation

  • New growth initiatives/Diversification

  • M&A

  • Total shareholder return

 

Consumer segments strategies

  • Convergence and media

  • ICT portfolio

  • Mobile data and VAS

  • Customer value management

  • Go-to-market/channel strategy 

 

Network and IT

  • New technology roll out

  • Business process redesign

  • IT Strategy

  • Cost and capex rationalization

 

Transformation and organization

  • Customer segment organization

  • Post merger integration

  • Incentives and behaviors

  • Workforce engagement

 

Working together with our clients to solve their most challenging issues, provide numerous benefits:

  • A fresh perspective on industry trends and best practices developed through our global and local network experts

  • Expertise in untraditional areas, such as television, media, advertising, and information and communications technologies

  • A rigorous, fact-based approach

  • Battle-tested methodologies for conducting transformation programs and cost- reduction initiatives, which are derived from telecom assignments in the last decade

  • A "collaborative while challenging" teaming model that leaves clients with greater skills