Overview

Risk Advisory Services

Tax and Regulatory

Financial Advisory Services

SERVICES >  risk advisory services  >  business performance services  > Information, Communication & Entertainment

Information, Communication & Entertainment

The ICE industry (Information, Communication and Entertainment)

The ICE industry in India is undergoing rapid change and organizations across the sector face the following common issues:

1. Business Transformation: In this rapidly changing environment there are three kinds of companies - shapers, adapters and followers. The first two categories need to change in order to either adapt to the changed rules or shape the rules themselves. For the followers the prospects for survival are slim.

2. Customer orientation: Increased competition is giving the customer a variety of choices leading to diminishing loyalty and high churn. Customer retention assumes equal if not higher importance than merely winning customers.

3. Scalable technical architecture: Rapid technological change and piecemeal solution development has resulted in unwieldy legacy applications with no integrated view of the customer.

4. Convergence and the impact of digitization: The advent of packet switched technologies has led to the convergence of voice, video and data, with a blurring of boundaries between fixed, wireless, cable, content and media. Any piece of content that can be converted into bits and bytes can now be pushed through digital networks.

5. Need for bandwidth: Consumers are in need of fast access to rich interactive content. The data transfer needs of corporations are increasing exponentially. As the required infrastructure gets established, it forms a vicious cycle with demand feeding supply feeding demand....

Approach

Our ICE practice offers end-to-end services and strategies to address the above issues, supported by a team of consultants with global exposure and in-depth industry knowledge.

Strategy and Business Transformation

Facing rapid deregulation, continuing technology advances, intense competition and increasing customer sophistication, organizations in the ICE sector in India are now facing the same issues in strategic planning as their international counterparts:
 - Is our vision powerful enough?
 - How do we convert perceived threats from discontinuous change into realistic opportunities? 
- How do we create value from our current resources (physical and intangible)?
 - How do we transform promises made to shareholders into tangible sources of value?

Our approach to crafting strategy involves powerful visioning workshops, creative opportunity generation, rigorous value propositions, analysis of physical as well as intellectual capital, new business model generation and business transformation planning.

Our key deliverable is executive alignment with a confirmed vision, a portfolio of value propositions, an enabling business architecture and an agreed road map supported by a robust benefits case.

In order to deliver this, our strategy engagement teams comprise a mix of strategists, business modelers, industry specialists and technologists. We draw on international experience coupled with local understanding.

Customer Management

Market and environmental forces are shaping the competitive landscape in the telecommunications industry and are likely to result in:

• Price wars for market share between new entrants and existing players
• Declining customer loyalty
• Declining average revenue per customer and customer profitability

This makes it imperative that organizations understand their customer needs and customer economics better. To be successful in the future, companies in India would need to address some key issues:

• How to identify attractive customers from the current customer base?
• How to retain attractive customers?
• How to increase average revenues per customer?
• How to reduce costs of acquiring new customers?
• How to reduce recurring costs related to customer interaction?

Our approach to customer management assists organizations successfully leverage customer information to manage marketing, sales, and service activities in order to identify, attract, and retain profitable customers. In our experience, successful customer relationship management lies in implementing multi-component end-to-end services. Accordingly, our modular approach assists companies not only in developing a customer management strategy but also in architecting and implementing specific customer management initiatives arising out of the strategy phase.

IT Strategy

In today's challenging financial environment, many organizations are questioning their investment in information technology:

• What are we actually spending on IT and what benefits are we getting from this?
• How can we make the IT expenditure in line with our business strategy and priorities?
• Can IT change the way we do business?

Our approach to address these issues focuses on redefining the IT function from one of application provider to a source of competitiveness for the enterprise. Our assessment of current IT operations, future views, technology architecting, investment options, outsourcing and governance involves robust metrics, international best practice and knowledge of global industry models. This is tempered with a trade-off of risk and cost to provide the level of IT service and flexibility required by the business. We take a complete business perspective that includes skills and competencies, strategic intent, value-chain analysis, five forces analysis, gap analysis and sustainable competitive advantage scenarios. Our understanding of your business strategy drives our formulation of your IT strategy.

The key deliverable is to develop a Road Map for the strategic use of IT - pragmatic action plans that balance critical operational needs with strategic investment priorities. We help guide the transformation of IT by addressing culture, competitive issues, economic constraints, resources, relevant technologies and the ability to adapt to change.

Our approach for building the IT strategy is based on the unique personality and environment of your business. Further:

• it creates the building blocks needed to translate high level strategies into action oriented plans
• fosters involvement and consensus at all levels to build the commitment needed to implement the IT strategy
  
  

Digital Supply Chain

The Internet and related technologies have had a far-reaching impact on the entertainment sector. Any content that can be converted to bits and bytes can be channelised through a digital network. Two key trends will fuel the need for digitisation of the entertainment value chain:

• Increasing broadband access encouraging the use of rich content
• Competitive pressures forcing the reduction of operational costs and opening up of new revenue streams

In this scenario, KPMG offers the following services to the entertainment/media industry:

• Strategic consulting services to help players enter and develop new media properties and change the way they do business
• Systems Integration to bring together and seamlessly integrate various digital media technologies to deliver an end-to-end Digital Supply Chain solution to:
   a. Realise operational efficiency 
   b. Develop new distribution architecture for delivery and transmission of content both within the industry and to the end consumers

Top

For further details contact us