“Technology-Media-Telecommunications, Trends in 2018” conference
PWC and Lider business weekly gathered the leaders from technology, media and telecom sectors at a conference in Westin hotel in Zagreb. They presented the trends as well as the results of global research related to technological transformation, which was conducted among executive directors and presidents of the companies.
At the very beginning, Dejan Ljuština, partner in PWC Croatia, recalled that the speed of TMT industry, when compared to the first conference held in 2011, has been exceeded a hundred times and other significant changes occurred as well.
“If we take into account a slight time lag, it is clear that only seven or eight years ago, the world was dominated by power companies and banks, while today the situation has substantially changed. The most powerful companies in the world are technological ones such as Apple, Amazon, Microsoft and Facebook, Tecent and Alibaba. Investors nowadays particularly value cloud based business models and the accompanying infrastructure, mobile payments, service revenue growth and online advertisement growth, the possibility of expansion to new markets and of data centers. This is precisely why it is necessary to know how to adapt to and actively manage new technologies, while at the same time one should not forget human beings, because only by understanding them and a human touch all those technologies will not represent a threat, but an advantage on the basis of which it is possible to build the future.
Therefore, in 2018 we expect additional acceleration of technological development. According to the research we have conducted this year, the CEOs from all over the world have indicated fast technological development and a lack of skills necessary for technological development as the main threat for the companies. With regard to particular technologies, the biggest influence in 2018 will be in the domain of artificial intelligence and Internet of Things, the areas where majority of global companies makes significant investments. The main industries where the new technologically conditioned business models will be applied are healthcare, finance sector and automotive industry. We are witnessing yet another phenomenon–the growing power of global internet companies which are present in all segments,” said Ljuština.
He continued to explain that this year we expect to have a discussion about their regulation, i.e. limiting their global power.
“In media segment, the growth will be achieved in digital advertising, Netflix and similar streaming services will be dominant, and other stakeholders on the media market will have to adapt and position themselves. It is likely they will try to build a partnership with them instead of being each other's competitors. As regards telecom operators, they are trying to regain the trust of their investors, who have turned to internet companies in a way they focus on the improvement of their positions on their traditional telecommunication market, through primary cost reduction, better marketing and selective investment in new technologies, but at the same time focus on new services where they want to use their brand and networks, such as new digital services, mobile banking and data analytics, which will be more accessible, taking into consideration the increased flexibility of net neutrality regulations in the USA and EU. The third area where they can return to the road to success is to radically rethink their business model and whether they would like to remain vertically integrated. It is a decision about which telecom companies’ management boards will think in 2018.”
An interesting discussion was held at the CEO panel because it showed how CEOs of national companies deal with challenges and whether they are ready for emerging opportunities.
One of very actual challenges that has been detected is making and attracting quality personnel. Gordana Kovačević, MSc, president of Ericsson Nikola Tesla, familiarized the gathered people with the business model related to retaining talented experts through development centers where young experts eager for challenges work on creative jobs for clients on a global scale. Initially she presented an interesting overview of global ICT trends using Ericsson’s latest research as well related to consumer expectations. She particularly highlighted the need for fast digital transformation and provided an overview of labor market by focusing on combining knowledge from STEM areas with all other domain knowledge as the only guarantee of quality transformation.
Referring to the 5G technology, Gordana Kovačević pointed out: “Consumers want the 5G technology to arrive as quickly as possible because it represents a significant positive step forward. They are aware that the number of devices which will be available to them will continue to grow, but they do not want to spend neither time nor energy to learn how to manage them. Their expectations are focused on what can be achieved with the use of 5G. As regards the situation in Croatia, there is definitely room for acceleration, especially when it comes to digital transformation of the society. It is ICT technologies that can have a significant positive contribution in that process if they are used in all industries and people's activities.”
Communications Ericsson Nikola Tesle