Innovation the key to revenue growth for technology, media and telecom firms
Editor | 08-11-2013
A PwC global study of technology, media and telecom firms has revealed that the most innovative 20% of TMT expect a growth rate of nearly 90% over the next five years, more than twice the average and over four times higher than the least innovative.
Moreover the same top fifth collectively benefited from an additional $45 billion in revenue over the last three years, compared with the least innovative companies. This is the equivalent of more than $1 billion per company, or 14% revenue uplift, PwC added. Such leaders typically establish and execute a coherent innovation strategy and plan for a greater proportion of breakthrough and radical innovations.
Showing how difficult achieving such a state of radical ‘game changing’ innovation was, PwC calculated that only 5-15% of TMT companies’ portfolios represent the kind of innovation which has the potential to create outstanding growth in new categories of products and services.
“Developing an innovative product or service is not enough to secure and maintain a leadership position in today’s market,” commented Dan DiFilippo, Global TMT Leader, PwC. “Companies must have a consistent innovation strategy, which separates them from the competition as our survey results demonstrate. Companies that adopt a coherent innovation strategy, with a greater proportion of radical innovation and a more diverse innovation portfolio, enjoy higher revenue growth and a strengthened competitive position.”