1.
THE COVID-19 EMERGENCY MEANT THAT 2020 WAS A REAL STRESS TEST FOR ALL SECTORS: WHAT WORKED AND WHAT DIDN'T WORK IN THE FIELD OF DIGITAL MEDIA & COMMUNICATION? WHAT LESSONS WERE LEARNED?
The pandemic has changed the way people consume media content by accelerating online consumption of videos (such as films, TV series, sporting events), games, music, news and the consumption of over-the-top services in general. Digital Media companies have expanded their customer base, increased their online advertising revenue and, thanks to a growing demand, are continuing to expand.
Covid-19, however, did not only present new opportunities but also new challenges for Digital Media, both on the technological front (to guarantee consumers' security, data privacy and high-quality services) and in terms of supply. The latter must be increasingly rich in content, exclusive, intuitive, integrated with advanced caring and marketing tools (such as 'social recommendations'), and innovative, allowing new user experiences such as VR/AR.
The pandemic has clearly underlined the need for companies to evolve towards more innovative business models implemented with agile operating models, not only to increase competitiveness on the market, but also to ensure their survival in the case of unpredictable events, which can change all the rules of business in a very short time.
Companies have therefore realised that it is necessary to evolve rapidly, working seamlessly on medium- to long-term business strategies that allow them to grasp technological opportunities before they become a necessity for survival.
The pandemic has changed the way people consume media content by accelerating online consumption of videos (such as films, TV series, sporting events), games, music, news and the consumption of over-the-top services in general. Digital Media companies have expanded their customer base, increased their online advertising revenue and, thanks to a growing demand, are continuing to expand.
Covid-19, however, did not only present new opportunities but also new challenges for Digital Media, both on the technological front (to guarantee consumers' security, data privacy and high-quality services) and in terms of supply. The latter must be increasingly rich in content, exclusive, intuitive, integrated with advanced caring and marketing tools (such as 'social recommendations'), and innovative, allowing new user experiences such as VR/AR.
The pandemic has clearly underlined the need for companies to evolve towards more innovative business models implemented with agile operating models, not only to increase competitiveness on the market, but also to ensure their survival in the case of unpredictable events, which can change all the rules of business in a very short time.
Companies have therefore realised that it is necessary to evolve rapidly, working seamlessly on medium- to long-term business strategies that allow them to grasp technological opportunities before they become a necessity for survival.
2.
HOW HAVE ENABLING TECHNOLOGIES HELPED INDUSTRY PLAYERS ADDRESS THE CRITICAL ISSUES GENERATED BY THE PANDEMIC?
The pandemic has presented all companies with rigid organisations and traditional business models with significant difficulties, while the most innovative companies, which rely on agile operating models, have proved more resilient.
Digital technologies have been an important driver in mitigating and overcoming the critical scenarios of the pandemic as they have allowed companies to continue their operations through smart working, to continue selling their products through e-Commerce platforms, and to maintain the relationship between supply and demand, customers and providers.
The pandemic has accelerated the use of digital technologies and demonstrated their effectiveness even to the most sceptical individuals and those who are least prepared for change, thus marking an irreversible transformation.
The pandemic has presented all companies with rigid organisations and traditional business models with significant difficulties, while the most innovative companies, which rely on agile operating models, have proved more resilient.
Digital technologies have been an important driver in mitigating and overcoming the critical scenarios of the pandemic as they have allowed companies to continue their operations through smart working, to continue selling their products through e-Commerce platforms, and to maintain the relationship between supply and demand, customers and providers.
The pandemic has accelerated the use of digital technologies and demonstrated their effectiveness even to the most sceptical individuals and those who are least prepared for change, thus marking an irreversible transformation.
3.
WHAT ARE THE 3 FUNDAMENTAL STEPS THAT THE SECTOR MUST CONFRONT TO ACHIEVE A NEW NORMAL THAT COMBINES INNOVATION AND SUSTAINABILITY?
Companies in the Telecommunications sector, and some of those within the Media sector, have already embarked upon the process of digitally transforming their infrastructures and organisations. It is no coincidence that these companies demonstrated greater resilience to the pandemic than other market sectors.
The journey of transformation is far from complete, however, and a number of fundamental steps still need to be taken to ensure sustainable development:
Companies in the Telecommunications sector, and some of those within the Media sector, have already embarked upon the process of digitally transforming their infrastructures and organisations. It is no coincidence that these companies demonstrated greater resilience to the pandemic than other market sectors.
The journey of transformation is far from complete, however, and a number of fundamental steps still need to be taken to ensure sustainable development:
- promoting and adopting an internal digital culture that can respond to continuous change, which is not conceived as a target to be reached in order to ensure business continuity, but is regarded rather as a normal condition of operation
- continuing the programme of simplification of network architectures through legacy decommissioning, delaying and recourse to SDN, NFV and Telco Cloud technologies, combined with the optimisation and automation of OSS/BSS processes
- enabling a "Technology Company" business model that allows the Company itself or its partners (e.g system integrators, technology providers, service providers, etc) to realise B2B2X services based on the sharing, processing and exploitation of data and network services.
4.
WHAT ARE THE TRENDS THAT ARE CHANGING THE SECTOR AND CHALLENGING WORKING METHODS, DESIGN PROCESSES, THE SERVICES OFFERED, AND VALUE CREATION?
The trends within the Digital Media & Communication sector in 2021 will continue those of 2020 and continue to be influenced by Covid-19.
In the Media sector, a growth in demand for video streaming is expected, partly due to the standstill/slowdown of TV/cinema productions. A consolidation of the alliances between TV broadcasters and content producers is also expected. Online gaming is also expected to grow. Advertising revenues will decrease on traditional channels, but not on online channels: it will therefore be necessary to make investments to improve the customer experience for the use of multimedia platforms, which may encompass M&A actions, including those of a technological nature.
In the Telco sector, we expect to see an acceleration in terms of investments in telecommunications networks (fibre, 5G) to cope with the increase in data traffic and the demand for Digital Transformation. We will see the development of advanced solutions based on Artificial Intelligence and Machine learning to maximise the value of data, enable new services and reduce management costs. In addition, we expect to see the development of Mobile Edge Computing solutions, a form of technology that could be used to bring data storage and processing closer to end-user devices and meet the exponential growth of smartphones and IoT devices. Finally, we should see the enhancement of digital channels for customer acquisition and caring and partnerships with technology players to construct new B2B services underpinning the sustainability of 5G investments.
The trends within the Digital Media & Communication sector in 2021 will continue those of 2020 and continue to be influenced by Covid-19.
In the Media sector, a growth in demand for video streaming is expected, partly due to the standstill/slowdown of TV/cinema productions. A consolidation of the alliances between TV broadcasters and content producers is also expected. Online gaming is also expected to grow. Advertising revenues will decrease on traditional channels, but not on online channels: it will therefore be necessary to make investments to improve the customer experience for the use of multimedia platforms, which may encompass M&A actions, including those of a technological nature.
In the Telco sector, we expect to see an acceleration in terms of investments in telecommunications networks (fibre, 5G) to cope with the increase in data traffic and the demand for Digital Transformation. We will see the development of advanced solutions based on Artificial Intelligence and Machine learning to maximise the value of data, enable new services and reduce management costs. In addition, we expect to see the development of Mobile Edge Computing solutions, a form of technology that could be used to bring data storage and processing closer to end-user devices and meet the exponential growth of smartphones and IoT devices. Finally, we should see the enhancement of digital channels for customer acquisition and caring and partnerships with technology players to construct new B2B services underpinning the sustainability of 5G investments.
5.
HOW WILL ENGINEERING SUPPORT AND ASSIST THE VARIOUS PLAYERS IN TRANSFORMING CURRENT DIFFICULTIES INTO OPPORTUNITIES TO OPEN UP NEW SCENARIOS AND NEW STRATEGIES?
At Engineering we have long since adopted a collaboration model in the Telco sectorthat sees us working side by side with our clients to share operational and/or business objectives with shared go-to-market and revenue sharing models. Digital transformation is the key to opening up new scenarios and opportunities and requires a corporate culture, the ability to innovate, agility, and an ecosystem of technological partners, each with a specific role in the value chain. We unite all these elements to collaboratively build solutions to our clients' operational and business-related problems.
We have always combined a deep knowledge of Telco business processes with expertise in digital technologies, with which we experiment and which we use in all life-cycle phases. The connection between enabling technologies and the concrete needs of our customers gives rise to services and solutions that aim to provide easier, more effective and more feasible solutions to to scenarios that were previously difficult, costly or even unfeasible. Some examples are our cloud-based online gaming, omnichannel caring and engagement, blockchain-based fraud-prevention, data-monetisation and VR/AR/MR solutions to support on-site maintenance processes.
At Engineering we have long since adopted a collaboration model in the Telco sectorthat sees us working side by side with our clients to share operational and/or business objectives with shared go-to-market and revenue sharing models. Digital transformation is the key to opening up new scenarios and opportunities and requires a corporate culture, the ability to innovate, agility, and an ecosystem of technological partners, each with a specific role in the value chain. We unite all these elements to collaboratively build solutions to our clients' operational and business-related problems.
We have always combined a deep knowledge of Telco business processes with expertise in digital technologies, with which we experiment and which we use in all life-cycle phases. The connection between enabling technologies and the concrete needs of our customers gives rise to services and solutions that aim to provide easier, more effective and more feasible solutions to to scenarios that were previously difficult, costly or even unfeasible. Some examples are our cloud-based online gaming, omnichannel caring and engagement, blockchain-based fraud-prevention, data-monetisation and VR/AR/MR solutions to support on-site maintenance processes.
Nello Luzi
With over 20 years of experience, Nello has a solid background in the definition and management of value propositions for telecom and media markets.
In Engineering he is responsible for the Technical Management of the Telco & Media Division and for the development of the Digital Media & Communication Offering Portfolio.
Nello is also one of the authors of the White Paper "Digital Media & Communication".
In Engineering he is responsible for the Technical Management of the Telco & Media Division and for the development of the Digital Media & Communication Offering Portfolio.
Nello is also one of the authors of the White Paper "Digital Media & Communication".
Contact us
marketing@eng.it
Tel. (+39) 06-87591