Changing the game— The future of Telecommunications,Media & Technology (TMT)

Wilson ChowGlobal and China/Hong Kong TMT Leader

November 2017

www.pwc.com

PwC

Changes in Workforce and Business processes

• Adoption of Cloud

• Enhanced automation

• Reshaping workforce

Emergence of cross-industry ecosystems

• Auto

• Healthcare

• Industrial products

• Financial services

We are on the verge of another major DISRUPTION…

2

The“Next Wave”

Technology enablement

Robotics AI IoT 3Dprinting

Blockchain

Seamless connectivity

• Adoption of 5G technology

• Internet connected devices

• Smart Nation/City

PwC

…and it’s hard to know in which vertical(s) it will appear

3

Estimated size of selected growth markets globally (Verticals)US$ bn, 2020

1,390

63

17

123

150

6067

59

5

Smart Home Service Assurance TransportationeHealth Smart Cities Public SafetyConnected Car Industry 4.0Utilities

Sources: IDC, Ovum, Technavio, MarketsAndMarkets, GSMA, Grand View Research, Navigant Research, Mind Commerce, PwC’s Strategy& analysis

PwC

TMT trends are driving CHANGES

4

Uncertainty in regulatory outlook1

Pace of changes in technology2

“Data” is the “New business currency”3

Shift from products to services and focus on customer experience4

PwC

#1. Global legislative and regulatory landscape

5

Changing dataprivacy/cyber securityregulations

Immigration reform inUS/Brexit

Capital market

PwC

#2. Fast pace of technological change — reshape competition

6

PwC

… reshape labor force

7

PwC

… all industries and businesses will be impacted

8

Banking andcapital markets

Healthcare

Industrialmanufacturing

Technology

Public Sector

Retail andConsumer

Aerospaceand defense

Private equity

Transportationand logistics

Power andutilities

Pharma andlife sciencesCommunications

Entertainmentand media

Automotive

Private companyindustries

PwC

PE/VC funding — Powerhouse of innovation

9

2016

1. AI $1.69B

2. IoT $1.44B

3. VR $823M

PwC

#3. Data is the new business currency

• “Data” gathered from various sources — ERP, CRM, Audio, Video, Social Media

• “Quality” of data gathered from business operations will continue to be improved by Technology

• Improved Storage/Data warehouse

• Big Data Analytics techniques offer:

- Ad hoc reports/scorecards/dashboards

- ‘Tax sensitized’ chart of accounts

- Improved CRM and Customer feedback

- Maximise monetisation

10

PwC

#4. Shift from products to services and focus on customer experience

Transforming to a services-focused model requires developing new channels for intellectual property that:

11

Creates better customer experiences

11

Generates new revenue streams

12

Permits flexibility

13

PwC

Embracing emerging technology to enhance Customer Experience

12

CloudCyber

security

3Dprinting

Accessnot

ownership

Internet ofThings

Bigdata/dataanalytics

Technologytransforming

businessmodels

LA-based VR start-up, planning to open a VRmultiplex this year that will allow consumers tobecome immersed in a personalizedentertainment experience.

Twitter released Anti-Harassment toolboxlast in 2016 to make the Internet safe forTwitter users.

Comcast invests in X1 Platform, a cloud-based operating system to deliver apersonalized entertainment experienceacross all devices.

Google developing next mobile OS withAI-powered features including Copy Less andComputer Vision designed to extract dataand images to streamline consumerexperience.

Disney’s patent-pending 3D printerclaiming speeds 100 times faster thanleading technologies. Uses includetheme park visitor figurines as well ascostumes and props for movies.

Amazon investing in IoT voice-led operatingsystem to enable smart devices. Partnershipswith automakers to appliance manufacturersto embed technology in things.

Consumer behavior shifts driving streamingE&M including a boom in SVOD providerswith Netflix at the lead.

IBM SlamTracker is the premier scoringapplication for tennis matches which providesreal-time scores, statistics, and point-by-pointanalysis.

Artificialintelligence/automation

Augmentedreality/Virtualreality

Google

Comcast

Disney

Amazon

Dreamscape

Twitter

Netflix

IBM

PwC

…for companies across all industries

• You know your company better than any one else…

• What is the level of awareness of technology disruptions of your people in your organisation?

• Are you taking an offensive and a defensive strategy or BOTH ?

• How effective are your strategies?

13

Thank you!

This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.

© 2017 PricewaterhouseCoopers LLP. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers LLP which is amember firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. HK-20171103-6-C1