Next in TMT 2024: Meeting disruption with reinvention

New challenges can enable historic innovation

The technology, media and telecommunications (TMT) sector faces many challenges in 2024, and difficulties keeping pace in the current environment may encourage business leaders to take a conservative approach. But running in place is no path to future success. It may feel counterintuitive in uncertain times, but this is the appropriate moment to transform your business and set yourself up for profitable growth ahead. Opportunities abound to innovate, improve operations and invest in your workforce.

We realize that regulatory obligations, geopolitical obstacles and the ongoing struggle to attract and retain top talent can threaten your ability to expand the business. But they’re far from insurmountable. Careful strategizing can help you position your business to increase growth and capitalize on historic innovation.

Emerging tech like generative AI (GenAI) is revolutionizing operations and service delivery while offering new avenues for growth and value creation. Meet this moment of disruption with business model reinvention. Make big bets but prioritize building stakeholder trust and elevating employee experiences. By connecting supply chain and ESG goals, you can enhance operations while working toward sustainability goals. By empowering employees with technology and upskilling opportunities, you can help keep your workforce relevant while driving the next wave of innovation.

Those who adapt and innovate stand to reap the rewards of a sector that continues to shape the world. Are you ready to usher in the future?

Pivotal trends in 2024 fall into four main categories:

Business model reinvention
Operational efficiencies
Navigating regulatory challenges
Investing in your workforce

Business model reinvention –– leveraging tech for growth

This moment requires a strategic approach to recapturing growth through transformation.
Technology can play a pivotal role in gaining ground. Integrating GenAI and other cutting-edge technologies can help unlock new value streams and potentially enhance your competitive edge. Business leaders across industries and functions have told us they see opportunities. Nearly half say they’re investing in GenAI over the next 12 to 18 months — and 67% expect to use GenAI to support new business models.

Prioritize a responsible approach to AI and incorporate trust by design. You’ll be in good company — 93% of executives agree that emerging tech is helping them build trust with stakeholders. Winning trust and effectively using emerging tech can also open cross-sector potential opportunities. The game tech industry, for instance, is pushing boundaries with innovations like physics-based game engines and AR/VR that monetize research and development investments across multiple sectors. EmTech Accelerators are reaping the most benefits from emerging tech overall. They’re leveraging emerging tech to reinvent their supply chains and create products, increase investments in talent, and integrate and embed tech solutions into their business strategies.

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Operational efficiencies, cost optimization and productivity

Looking to strengthen collaboration across functions and suppliers? Try developing digitally enabled processes for sharing information to help improve forecasts and supply chain efficiency. Investing in technologies like AI-enabled control towers and robotic process automation (RPA) can ramp up your ability to automate tasks, provide new insights and improve decision-making. Supply chains are a priority, with more than half of tech leaders telling us their technology investments have already enabled them to make faster decisions and effectively handle supply chain disruptions. And 41% have seen improvements in supply chain resiliency as a result of these investments.

You can help drive growth by streamlining operations, lowering costs and focusing digital investments in areas like product development, customer experience and supply chain planning. Integrate successful strategies, learn from past experience and explore new business models and transformational M&A investments to remain competitive and help achieve your goals. And, closely monitor macro trends to anticipate risks and identify opportunities.

Are you ready to drive operational transformation?

CFO

Accelerating transformation is especially challenging in uncertain times. But enabling growth amid disruption can provide opportunities. Finance leaders are investing strategically in emerging technology, upskilling and operational capabilities to improve ways of working, lower costs and mitigate risks.

COO

Transform your supply chains, with investments in technology –– like GenAI –– to enable faster decision-making and improve resiliency. Explore how operations leaders are striving to remain competitive by strengthening collaboration, managing costs and streamlining operations to drive growth.

Getting ahead of regulatory and geopolitical implications

Serious regulatory and geopolitical headwinds are on the horizon. If you’re in the advanced tech sectors, you should consider the implications of relations with China and review your organization’s China-bound investments. As the federal government intensifies efforts to safeguard US tech and data with policies related to advanced tech and services in the information and communication tech supply chain, multinational companies in the sector should evaluate how that could impact growth prospects for their business.

The implementation of the Digital Services Act and Digital Markets Act demands careful navigation of new rules and regulations. Additionally, the introduction of Pillar Two tax legislation, potential net neutrality rules and new DOJ rules about M&A –– including HSR filing requirements –– all require proactive compliance measures. Sustainability will also be a key consideration as pressure increases to adopt environmentally responsible practices and comply with CSRD requirements as well as new climate disclosure rules from the SEC and California.

Discover strategies for navigating risk and regulatory obligations

CRO

Understand the regulatory challenges the TMT industry faces, including the implications of specific legislation and rules. Gain insights into how leaders in your space are managing risk, enhancing supply chain effectiveness, preparing to meet ESG goals and more.

Tax leaders

Navigate the unique Pillar Two tax considerations of large global footprints and the digital business landscape. See how leaders are balancing the various regulatory and compliance demands of this moment by collaborating across the C-suite and staying ahead of uncertainty.

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Enhancing your talent strategy and investing in your workforce

Sector layoffs in 2023 have led to a paradox in TMT talent pools that we expect to become especially pronounced in 2024: You should run a leaner business in challenging times, while still ramping up employee engagement efforts — and even expanding benefits to attract and retain high flyers.

Most TMT leaders (67%) cite talent acquisition and retention as a major risk to their company. Even though tech workers report higher job satisfaction than other sectors, they're more likely to seek new job opportunities. By offering meaningful work, customized learning paths and even well-being support, you can help elevate employee experiences and improve retention rates. Empowering employees with upskilling opportunities can help them develop the skills that keep your workforce relevant and ready to drive innovation –– especially when it comes to emerging technologies. These efforts can also help you attract and retain the top talent that promotes your company’s long-term growth. More than half (52%) of employees responding to PwC’s 2023 Hopes and Fears survey expect to see some positive impact of AI on their career over the next five years, with nearly a third (31%) saying it will increase their productivity/efficiency at work.