The document discusses the challenges faced by communications companies in achieving agility and cost reduction amidst industry changes and growing competition. It highlights the need for better leadership alignment and flexible operating models, as many companies struggle with execution and lack confidence in their initiatives. Collaboration through partnerships and a focus on digital transformation are suggested as strategies to foster growth and improve competitive advantage.

1. Increasing agility
to fuel growth and
competitiveness in the
communications industry
July 2016

2. 2Copyright © 2016 Accenture. All rights reserved.
Agility and cost reduction
are crucial – but how can
communications companies
make change happen?
Accenture research reveals that
communications companies are
more focused on cost reduction
and reinvesting for growth than
ever before.
But they consistently lag behind
other industries when it comes
to execution.

3. 3Copyright © 2016 Accenture. All rights reserved.
The industry has changed dramatically…
Communications companies are now under pressure from:
A shift in traditional business models
to accommodate new value propositions for customers
Uncertainties due to market complexities
and threats from non-traditional players
The need to fund new investments
to reduce increased debt and manage profitability spikes
Transformation of the core network infrastructure
to extend existing capabilities
Digital disruption from new technologies,
such as everything-as-a-service and the Internet of Things

4. 4Copyright © 2016 Accenture. All rights reserved.
…and companies are still catching up
Most companies choose cost
reduction to compete
68% said improving competitive
advantage is a top outcome driving
cost reduction activities.
But less than
one-fifth deliver
Only 19% said their company
can consistently eliminate
activities and investments that
do not add value.
Communications
All Industries
19%
23%

5. 5Copyright © 2016 Accenture. All rights reserved.
Leadership must close the gap, too
Confidence in leadership delivery is low
56% express confidence that their leadership has the right initiatives to
achieve cost reduction targets.
That’s 17% behind other industries.
Communications
All Industries
45% 11% 56%
52% 21% 73%

6. 6Copyright © 2016 Accenture. All rights reserved.
What’s getting in the way?
Inflexible operating
models
Difficulties in
execution
Leadership
misalignment
Only 21%
have complete confidence
their operating model can
rapidly adapt to the market.
Only 15%
strongly believe their
operating model is aligned to
fuel strategic growth.
42%
have limited success in
identifying and eliminating
value-led investments and
activities.
Only 15%
rate their operating model as
highly flexible.
38%
said leadership alignment is
a barrier to advancing their
operating model.
64%
said identifying the right
areas to invest is
challenging their
organization.

7. 7Copyright © 2016 Accenture. All rights reserved.
What’s helping?
Most companies will partner to make progress.
81%
expect the number of mergers and
acquisitions to increase over the
next two years.
38%
believe collaborating with new
partners inside the industry will
drive the greatest growth.

8. 8Copyright © 2016 Accenture. All rights reserved.
Keeping up momentum:
Prioritizing cost reduction and reinvestment
Organize for growth
• Understand where the
market and customers are
going next.
• Foster ecosystem
collaboration, partnerships,
and mergers to help drive
growth and increase
internal agility.
Manage the journey
• Eliminate silos.
• Encourage cross-functional
behaviors to create
a culture centered
on continuous
cost management.
Digitize for growth
• Reduce cost and increase
competitive advantage by
gaining insight from
analytics and virtualizing
customer care.
• Utilize process automation
and cognitive intelligence
capabilities to enable
customer self-service.

9. 9Copyright © 2016 Accenture. All rights reserved.
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