Communications & high tech

Our capabilities

A.T. Kearney consults on a wide range of communications and high tech opportunities for regional and global companies — our capabilities are in areas such as the following and more.

Strategy

Growth strategy
As global communications markets mature, telecommunication service providers and equipment manufacturers are finding top-line growth increasingly challenging. Some companies have not yet exploited the full potential of their core business, and others need to go beyond their core to explore growth opportunities by expanding into new horizons, such as repositioning on the value chain, expanding their product portfolio, and developing new geographic growth options. Growth is a matter of survival, as continued shifts in technology, services, competition, and regulation require communications and high tech companies to rethink how they interact with and serve customers.

A. T. Kearney supports leading companies as they successfully address growth challenges. We help companies exploit growth opportunities within their core business and find new growth avenues around the world. Engagements range from product portfolio diversification strategies to growth strategies in the emerging markets of Asia or Africa.

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Mergers & acquisitions
Communications and high-tech industries are consolidating rapidly. Driven by strategic growth objectives, technology convergence, and margin pressures, companies are engaging in significant M&A activity. A.T. Kearney’s industry studies show that the industry is only at the beginning of the consolidation curve. Significant merger and consolidation activities are expected as markets continue to mature. As communications and media industries converge, enterprise players are expanding with new services, industry players are targeting scale and global reach, and private equity groups are pursuing leveraged buyouts - mergers & acquisitions will be a top industry issue for a long time to come.

According to A.T. Kearney’s research, the two most critical hurdles in making mergers successful are sound merger planning and mastery of the integration process. With our deep industry understanding, operational knowledge, profound expertise in merger integration, and our results-oriented culture, we have helped numerous clients realize their acquisition objectives. Our services range from due diligence support and pre-merger planning to post-merger integration support and preparation for divesture.

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Innovation management
In these turbulent times of fierce competition, redefining technologies, and customer demands, innovation is core to communications and high tech companies’ survival. A.T. Kearney’s industry experts work with clients on their innovation imperatives throughout market analysis, product and service design, testing, and launch. Not only do we bring creativity and rigor to the innovation process, we provide data-based analysis to help executives make informed decisions that effectively balance costs and innovation – providing both top-line and bottom-line expertise.

For example, we recently helped a mobile telecommunications company design and implement innovative value-added services.

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IT strategy
Communications service providers are pursuing a broad IT agenda towards seamless service delivery. They continue to address challenges related to legacy platforms and multiple OSS. And beyond service delivery, the strategic application of IT to core business processes, such as supply chain, can create new capabilities and breakthrough competitive advantage.

A.T. Kearney helps clients develop the vision, strategies, and roadmaps to keep IT on the cutting-edge and at the leadership table. For example, A. T. Kearney helped a leading telecom service provider simplify and outsource the components of their billing systems and services. In another situation, we helped a leading telecom services provider rationalize its systems portfolio by identifying redundant and under-utilized systems.

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Marketing and Sales

Companies are constantly adapting their marketing and sales strategies to customer needs and purchasing behaviors. There is nothing new about that. However, with customers using the power of new technologies to take their participation in value chains to higher levels, new product bundles (such as triple and quadruple plays) are evolving and innovative technologies are disrupting the way business is conducted. Companies have a more difficult challenge connecting with their customers to provide targeted offerings and a sustainable customer experience.

We help clients develop an in-depth understanding of their customers’ needs, design their product portfolio, and rethink the way they approach innovation management. A.T. Kearney has proven capability frameworks in marketing and sales, which provide a continuous development and learning cycle along defined and measurable stages-of-excellence. We understand our clients’ customer touch points and have helped numerous industry players define a differentiating customer experience strategy and achieve sustainable profitable growth.

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Operations and Transformation

Cost benchmarking
Understanding the company's cost positioning, identifying cost drivers, and comparing cost positioning to peers is the first step to reduce cost. With our global cost benchmarking study for the mobile industry, which comprises more than 90 global participating operators, A.T. Kearney has created the industry standard for cost management for mobile operators.

Detailed cost diagnostics delivers a targeted view on savings opportunities and develops an organization mobilized to address them. Our proven methodology allows meaningful comparisons of operators of different sizes, regions, and strategic focus. The large number of participants provides relevant cluster analysis and the participation of the majority of operators over multiple years demonstrates the importance of this cost management tool for operators.

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Cost transformation
With increased pricing pressures and competition, communications and high tech companies are looking for a fundamental shift in their cost structure. This shift requires a holistic, corporate-wide initiative to reduce operating costs and optimize capital investments. There can be no sacred cows in the process. Typically, opportunities are identified, prioritized, and executed in waves to drive improvements and savings.

A.T. Kearney has helped numerous, leading companies initiate and successfully implement cost transformation programs. Results are dramatic and sustainable, and the programs are well received by the investor community.

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Supply chain
Increased outsourcing and global sourcing at various points in the industry value chain result in greater reliance on supply chain and logistic systems. A.T. Kearney helps clients achieve excellence in managing supply chains, including wireless handsets, CPE, major equipment, minor materials, and services.

We help increase cooperation across clients’ supply chains and simplify their forecasting, inventory, and logistics. Higher revenues and customer satisfaction are realized through improved availability and service levels.

Procurement
Managing the myriad of supplier relationships and ensuring value creation from those relationships is complex. We help clients not only improve their leverage in supplier relationships but also manage the demand for products and services. In addition, we work with clients to transform their procurement organizations and their employees' mindsets to focus more on value creation and go beyond the value capture.

By partnering with leading communications and high tech companies on A.T. Kearney’s Assessment of Excellence in Procurement (AEP) study, we have developed key insights into companies' issues and leading practices in the industry.

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Outsourcing and best-shoring
Communications and high tech companies have been key enablers and beneficiaries of the outsourcing and globalization phenomenon. For the buyers, outsourcing requires strong organizational alignment on the objectives behind the “make vs. buy” decision and continued assessment of the arrangement. On the other hand, suppliers need to focus on creating value and building economies of scale.

We help our clients, who are buyers or suppliers of outsourcing services, in network operations, IT, customer care, finance, and G&A. We also advise them on best-shoring options for their back-office processes in those functional areas.

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Technology

More advanced telecommunication technology, products, and services are coming at a quickening pace as companies stretch to keep up with consumers' changing habits and needs. Telco innovations have been dramatic, marked chiefly by the introduction of WiMax and HSPA, and operators moving toward next generation IP networks. Next generation technologies are helping lower the barriers to entry for startups, while helping deliver innovative products and services. However, incumbents with residual networks are facing difficult choices about migrating to newer technologies - choices that have longer - term impact on revenue growth and operating costs.

A.T. Kearney supports service providers across a spectrum of engagements, including technology strategy, technology selection, wireless spectrum auctions, and technology migration and execution.

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Communications & high tech:
In the news

Read insights from A.T. Kearney consultants quoted in the media.

Global Leaders

Communications & high tech: David Brown, Americas
David Brown
Americas
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Naveen Menon, Asia Pacific
Naveen Menon
Asia Pacific
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Communications & high tech: Mark Page, Europe Mark Page
Europe, Middle East, Africa
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