Technology and Communications
Practice Area

Overview

The tectonic plates of high technology and the telecommunications industry are in constant motion. After the years of Internet hype and the bursting of that bubble, significant value shifts are taking place once more. “Convergence” and “Web 2.0” are just two of the movements currently reshaping the industry.

“Business as usual” has three primary characteristics:

• Disruptions and Uncertainty.
  The decline in the voice business of fixed-line carriers is perhaps the best evidence of this trend, which will eventually affect wireless operators too. Apple Computer’s redefinition of the music download business also fits the bill.
  
  
• Clock Speed and Innovation.
  Corporations must act quicker than ever to stay ahead of changes in technology, the market place, and consumer behavior. Google, for example, has entered markets far a field from paid search, while leading mobile handset makers are constantly introducing new products in order to keep ahead of their competitors.
  
  
• Shifts in Value Creation.
  Such shifts are occurring both geographically, as new competitors from China  and India  enter the global playing field, and thematically, as the content and aggregation levels become the control points in the telecom industry.
  

To thrive in this environment, successful high-tech and telecommunications companies need to excel in three ways. They need the right strategy, they must possess organizational agility in order to respond quickly to the changing needs of customers and the market, and they must demonstrate operational excellence in customer-facing and internal functions. BCG has been helping clients take full advantage of their next-generation networks.

Our Practice

BCG’s Technology and Communications practice supports companies in the telecommunications, high-tech, software, and electronics industries as they strive to achieve sustainable competitive advantage in this dynamic environment. We work closely with our clients to recognize the forces transforming their markets, define tailored responses to these changes, and implement these responses rapidly and effectively in ways that create competitive advantage.
 
Industries within the practice

BCG’s Technology and Communications practice covers four segments

• Wireline Communication
  Covers the broadband and fixed line areas on topics in operations (e.g. customer retention/customer churn management, sourcing, asset productivity, etc.), organizational design, IT architecture/solutions and pricing. The domain examines how telco landscapes will evolve with regard to upcoming developments (e.g. VoIP, convergence) and defines effective frameworks and business models to help our telco clients to succeed in the ongoing transformation.
  
  
• Wireless Communication
  Supports clients across a range of industries such as the mobile, Wi-Fi, VoIP and Wi-max industries amongst others. The segment amongst other things, investigates the impact technology evolutions (e.g. 3G/4G , fixed-mobile convergence, VoIP, Wifi, etc.) have on service offerings, pricing, customer management and asset productivity.
  
  
• High Tech Devices
  Aimed at equipment manufacturing clients covering the areas  of semiconductors and electronic equipment, computers and peripherals, network equipment, handsets and consumer electronics. The domain works across a wide range of topics including Site Selection, M&A, Innovation-To-Cash/New Product Development, Supply Chain Management/Order To Delivery (OTD), Distribution/Channel Management, Sales Effectiveness, etc.
  
  
• Software/IT Services
  The Software & IT Services Domain develops the commercial agenda for software development companies or IT service providers. The Software/IT service Domain assists clients across a range of topics including go to market strategy, intelligent licensing and pricing approaches and frameworks.

Projects’ snapshot

A snapshot of select recent projects done in this area include:

• Creating a global delivery centre for a leading global telecommunications service provider
  The BCG team developed a detailed offshoring strategy for three core functions – networks, IT and finance with the client team. This was further developed to enable the setting up of a large scale global third party network services providing entity. Post this project, the client successfully transitioned the 3 functions from different parts of North America to India and has set up a global centre to service international telecom majors.
  
  
• Development of the distribution and retail strategy for a leading consumer electronics company
  The client is a global leader in the manufacture of mobile phones, multimedia, networks and enterprise solutions. The BCG and client project team identified fundamental shifts in the mobile market in India to develop a targeted retail strategy to address these new emerging segments. The strategy has resulted in significant market share gains for the client in the recent past. 
  
  
• Building a go-to-market strategy for a leading IT services company
  The client, a top tier IT company in India was looking to enhance its solution development methodologies towards two specific verticals. The BCG and client team worked together to develop a customer needs driven solution development methodology. This methodology when applied has led to few solutions being identified and designed specifically to the target verticals. This approach forms part of the go-to-market strategy for the company when targeting specific verticals.
   
  
• Optimization of network operations and creation of a network monitoring framework for a large enterprise and voice services player
  The BCG team worked on a mandate of identifying network operations cost saving levers and create a dashboard for the top management team to regularly monitor the network. Post the project, immediate impact to the value of Rs 150 cr was observed in the client P&L. Set of recommended tools and policies were implemented for many internal processes – sparing, network provisioning, inventory management, network restoration.
  
  
• Development of a growth strategy in India for a major telecommunications incumbent
  The project team designed a tailor-made growth strategy and long term business plan for each of the client’s key business segments, with a strong focus on creating a sustainable competitive position in the segments they serve across geographies. The project resulted in a strategic agenda by business for the client enabling them to raise funds at the lowest group borrowing rate for the business.
  
  
• Conducted a technical assessment of a niche software company in India
  The BCG team was approached by a leading private equity company to validate the business plan of the target company. The project involved a detailed analysis of the capabilities of the company and robustness of the business plan (external and internal metrics) to assist the private equity player make a decision on the investment.

People
 
James Abraham is the leader of the Technology and Communications Practice Area in India.