In recent years utility, telecom and retail industries are faced with unprecedented digital and business transformation. Digitalization and new technologies are driving demands for advanced strategies and integrated data-driven business solutions, providing higher operational efficiency, better financial management and advanced customer relations.
Staying relevant to increasing customer needs and market innovations has been a major goal to businesses in these industries. Here is the first of four disruptive trends changing the market and business environment for these companies.
Trend 1: Evolving Business Models
Technological disruption and the need for personalized customer interactions are putting pressure on traditional business models, resulting in fundamental changes in organizations and commercial strategies. It’s also creating unique opportunities for businesses willing to embrace innovations and define their new market roles, segments and services to cover the complete value chain.
Models are shifting from asset based to customer-centric and service oriented, where collaborations and integrations between different industry players are becoming increasingly important to remain in a competitive market state. Extraordinary partnerships, alliances, mergers and acquisitions are developing between organizations with the sole aim to strengthen their market position and secure long-term leadership.
Expanding across adjacent industries and markets to get ahead of competitors challenging the status quo is a business decision related to survival. The increased role of consumers in energy sector, for example, is creating demand for a more flexible business approach, simplified client administration and a wider range of services and applications. In their search to balance out decreasing revenues with additional profit streams, more and more companies are transitioning into modern lifestyle providers, rather than just single service businesses.
The white-label business model in retail vertical, respectively named MVNO in telecom sector, has proven quite successful for many years already. In order to achieve fast time-to-market with lower risks and production costs, many companies have launched their brands customizing the solutions of external providers. In energy industry, in 2014, the white-label concept was officially regulated as well. But just recently this model has started to gain momentum with more retailers commencing profitable partnerships with established gas and electricity providers.
In search of additional revenue streams, more customers and profits, and without lifting the focus off their core business, these organizations are disrupting the utility market, to drive their long-term growth. To reach outside their areas of expertise and widen their product offer, retailers are relying on specialized software suppliers providing them with innovative utility business management solutions and fully managed services.
On the race to perfect customer experience and understand consumer behavior, using various applications and devices businesses are collecting and analyzing more data every day. To provide more value to existing clients, many retailers and telecoms have adopted integrated multi-channel communications and business approach, such as omnichannel retail. It helps strengthen the relationship between businesses and customers, and it also creates long-term brand loyalty.
Lower market barriers, reforms and liberalization in certain industries are simplifying the access to new business opportunities, modifying the outdated business models and helping establish new elaborate ecosystems, shifting enterprises rapidly towards customer-centric approach, cost optimization and enhanced performance.