How tech, media and telecom executives can thrive in an age of continuous reinvention

Co-written with Partner and National Media & Telecom Lead, John B. Simcoe

Last year, tech, media and telecom (TMT) executives laid bare a stark reality: 44% of the sector’s respondents to PwC’s Annual Global CEO Survey said their business wouldn’t be viable in 10 years if it continues its current path. This year’s results show this reinvention imperative intensifying, with 52% of TMT respondents telling us their business may not exist in a decade without significant changes. 

The stakes are high. And many TMT companies recognize they must urgently act. For example, we’re seeing technology companies focusing on profitable growth, rather than expanding their market share at any cost. We’re also seeing innovation in the telecommunications industry as telecom companies transform into communication technology and technology services companies that other organizations turn to when they need connectivity solutions to solve business problems. Elsewhere, media companies are developing fresh revenue models that blend subscriptions with new forms of digital advertising. 

These companies are often collaborating across industries and working in broader ecosystems. In our CEO Survey, 43% of TMT respondents (compared to 34% across all industries) say they’ve formed capability-enhancing strategic partnerships in the last five years to change how they create, deliver and capture value. 

Despite this progress, few CEOs believe they’ll thrive in the decades ahead through these efforts alone. In fact, many expect pressures on their business models to intensify. For example, compared to the last five years, TMT executives predict changes in technology, customer preferences, competitor actions and government regulations, among others, will have a much larger impact on how they create, deliver and capture value. 

TMT executives see the external shifts that are underway and on the horizon—and how changes to their business, operating and technology models are necessary to capitalize on these new opportunities. 

Generative AI, climate change and the evolving business landscape 

Technological disruption—and generative artificial intelligence (GenAI) in particular—is one of the forces poised to spur business reinvention. In Canada, many TMT business leaders have already started their GenAI journey, often initially attracted by how the technology can reduce costs. 

We’re also seeing companies think bigger. More than three quarters (76%) of TMT chief executives (compared to 70% across all industries) say GenAI will significantly change the way they create, deliver and capture value over the next three years. We’re already seeing examples in the works, such as telecom and technology companies working together to use artificial intelligence to gather and analyze data produced by Internet of Things (IoT) devices. This helps improve predictive maintenance, customer engagement and other applications. 

TMT respondents are also aware of the significant risks that GenAI can pose to their business, including cybersecurity and data privacy concerns. We’re already seeing some companies managing these risks and safeguarding confidential information by developing guiding principles, accountabilities and governance frameworks, as well as making sure employees have the skills and capabilities to use GenAI effectively and responsibly. 

TMT executives are also mindful that GenAI may create new legal liabilities and reputational risks. For example, companies in media and other creative industries must navigate new questions around intellectual property and privacy as they develop content using GenAI. 

Climate change is another megatrend spurring business reinvention. Here, TMT companies play a dual role. Many are working to reduce their own environmental footprint, often by reducing the impact of their data centre usage. Our survey shows the sector making some headway: 70% of TMT respondents say they’ve improved their energy efficiency, compared to 76% of CEOs from all industries. 

Technology and telecom companies are also uniquely positioned to help other organizations achieve their climate goals. For example, we’re watching Canadian tech companies develop carbon capture and storage technologies as well as other solutions to address the climate crisis. And we also see telecom companies using the power of 5G networks to support precision agriculture, smart buildings, automated industrial machinery and other use cases—helping businesses run more efficiently and reduce their own energy use. Across the TMT sector, 54% (compared to 58% across all industries) of CEOs say they’re developing new climate-friendly products, services or technologies.

Actions to accelerate and sustain your reinvention 

How can Canadian TMT executives jump-start continuous reinvention within their organizations? We often see industry leaders focused on several areas: 

• Reinforce a workplace culture of reinvention. Innovation and disruption are already baked into the DNA of some TMT companies. In other cases, business leaders would be well-served by fostering a culture that encourages employees to generate novel ideas, test solutions and learn from failures while also rewarding innovation, experimentation and learning. 
• Embrace business ecosystems. CEOs need to start with a clear understanding of where their company creates unique value and how it can contribute to an ecosystem. For example, a telecom provider may not fully appreciate how its connectivity solutions can help a mining company deploy autonomous vehicles at remote locations. And they may need to close capability gaps, including making sure employees have the proper skills and incentives to develop, market and sell collaborative solutions. 
• Pinpoint your most important moves. Nimble resource reallocation is a critical area for CEO attention. Our survey found higher levels of annual reallocation were associated with both greater levels of reinvention and larger profit margins. This requires innovative thinking about where to best reinvest current revenue sources into opportunities for future growth. 

How are you accelerating your reinvention? What are your opportunities to change the way you create and deliver value? We’d love to hear your perspectives. Leave a comment below or reach out to start a conversation.