Overcoming the paradigm shift in the ICT market
― Using rapid change to drive growth
I was appointed CEO in 2008. Looking back over the last decade, the ICT market underwent a major transformation – a paradigm shift – halfway through the period.
In the first five years, telecommunication carriers built internet infrastructure using the latest technologies, driving rapid growth in the use of the internet. In the next five years, we saw fast and dramatic changes in earnings structures across the industry.
As net users rapidly turned to Google, Twitter, Facebook and other free online services, telecommunication carriers were faced with declining investment returns. Because our sales from telecom carriers peaked at more than 50% of consolidated sales, we too were concerned that our business would be hit hard by this change in the industry.
In response, five years ago, we decided to overhaul our marketing scenarios to highlight our expertise as a user of networking hardware and systems. We adapted our business model, designing user case studies showing how to utilize and leverage ICT, including potential merits and pitfalls.
ICT is a type of tool, but as a provider of those tools, we need to set up and test the best configurations for customers. That differs to the past approach in the ICT sector, which was led by hardware makers who developed cutting-edge technologies but left it up to customers to decide how best to use them.