The film Back to the Future celebrates its 30th anniversary this year. For the film pundits among you, you’ll know that the characters make a visit to the year 2015. You might be wondering what this has to do with next month’s BBWF. Well, a team of Ovum analysts have spent much of 2015 looking to the future, namely a 10-year view on the main themes that will impact the telecoms, media and technology (TMT) sector.
The results from this research will be showcased at the Road to 2025 theatre on 20th October. Here Steven Hartley, Practice Leader, Service Provider & Markets at Ovum talks about some of the key findings.
A second wave of digital transformation is on the way
Two key drivers will dictate the extent to which technology and commercial change over the coming decade will impact today’s players:
- Firstly, the rate at which disruptive technologies such as IoT, Cloud, analytics and artificial intelligence are adopted
- Secondly, the degree to which that adoption will disrupt the status quo of today’s ecosystems
The key driver behind this 2nd wave is the ability to cost-effectively connect more things through IoT, which itself is enabled by low cost sensors, processing, connectivity and Cloud computing. This in turn enables companies to control, analyze and optimize more elements of their business processes.
Combined with the improved capabilities of technologies such as predictive analytics and artificial intelligence, the impact will be extraordinary. It offers players opportunities to be truly transformative in how their business functions and the business models they employ. This will enable them to transform the way their ecosystem functions – and even create completely new ecosystems.
Effects will be more all-encompassing this time round
We’ve heard a lot about digital transformation, but what’s different this time is that the effects will be more all-encompassing than we have seen to date. Between 1995 and 2015 the impact of digitalization, although undeniably sizeable, has really only impacted a limited range of processes and industries. Online retailing, digital media and electronic process support (such as in ERP) have certainly led to major disruption over the past twenty years.
But the impact this time round will be felt across more verticals, processes, value chains, supply chains, consumption patterns and business models than ever before. Opportunities for those companies enabling such digitalization will be large, but competition for revenue will be fierce. Transformation will be as vital for players in the TMT sector as for those in other industries.