Telefonica | April 4, 2011 | Press Release
Potential: The ICT industry is an innovative growth sector creating an array of new opportunities for other sectors and industries • New habits: The coming years will see a double-digit increase in the number of users of social networks while day-to-day digital activities apart from communication (applications, social networks, games, services, etc.) account for 60% of the time spent on smartphones . • A partner for change: Telefónica’s know-how and global proposition, with an integrated international profile, make it a key partner for major corporations and public administrations that wish to rise to the challenges of the digital world.
Miami, 5 April 2011.- The new era of the global knowledge-based economy promises significant opportunities for growth. In order to take full advantage of these opportunities and play a key role in this New Digital World companies must transform and rethink how they do business. This is the scenario described by the Telefónica Group to the representatives of its leading global corporate customers, multinationals and public administrations gathered for the ninth edition of the two-day Telefónica Leadership Conference inaugurated today in Miami –where Telefónica USA is headquartered– by the Chairman of Telefónica Latinoamérica, José María Álvarez-Pallete.
‘We are entering a new era and the future will be shaped by ‘transformation’: As we move into the age of the globalised knowledge economy we must transform our production model, transform our companies and transform ourselves in order to contribute to the new way of doing business,’ explained Álvarez-Pallete. He also described a reality in which the digitalisation of everyday life is generating an array of fresh opportunities for all sectors and industries in the real economy that rise to the challenge of change. ‘The future is there for us to shape’ he said, emphasising that Telefónica’s know-how and global character – the result of its integrated, international profile – make it the ideal partner for major corporations wishing to take on this challenge: to transform their businesses and adapt to the demands of the new reality and the new digital world.
The Chairman of Telefónica Latinoamérica illustrated with figures both the new outlook over the coming years and the change experienced by the Telefónica Group itself. And transformation is a common element in both cases.
New habits in a more connected world
Today we find ourselves in an increasingly interconnected world where the demands of people’s digital lives are increasing by the day. And this process will be further intensified by the proliferation of advanced devices and the appearance of new applications and digital services, as well as the forecast double-digit growth in users of social networks over the coming years[1].
In fact, and as an example of this new reality, advanced devices such as smartphones ‘have resulted in mobile phones evolving from communication devices into tools for managing people’s everyday digital lives.’ As a result, demand for such devices is booming to such an extent that in 2011 sales of smartphones and tablets are forecast to exceed those of PCs and laptops for the first time, with the changes in use this implies, since non-communication use (voice, messaging, email,…) accounts for 60% of the time spent on smartphones and corresponds to the new habits and activities of mobile users (applications, social networks, games, services, …)[2].
These developments are creating a huge opportunity for the ICT sector and for the telecommunications industry, underpinned by the forecasted explosion in traffic, the growth in connected M2M devices and the increase in broadband, mobile and fixed accesses, which – in fact – are expected to rise by 3x and 1.5x respectively over the next four years [3].
As a result, according to sector analysts’ estimates[4], the ICT industry will grow at average annual rates of 4.7% between 2010 and 2013, primarily driven by emerging regions such as Asia-Pacific and Latin America, which are expected to post respective average annual growth rates of 6.4% and 7.8%, respectively. And these regions, which accounted for 70% of global growth in 2010, will also drive forecast future macroeconomic growth, with estimates better than a year ago [5].
Faced with this reality, the Telefónica Group believes that the major players in the real economy must accept the challenge of digitalisation, since there is clearly a real demand for new applications and digital services in all spheres and sectors (finance, health, education, entertainment, administration, …). Here the ICT sector, thanks to its innovative character, is creating a wide range of fresh opportunities for all sectors and industries.
This is why Telefónica is keen to draw on its know-how to become the key partner of major corporations, multinationals and public administrations as they rise to the challenge of transforming their businesses and adapting them to the new set of demands. In addition to its status as an integrated operator with an international profile and its ability to offer this segment a bespoke integrated and global value proposal, the strength of the company lies in its anticipation of innovation.
In fact, Telefónica is already transforming once again to meet future challenges and adapt its organization. The Company has created seven global products and services units which underpin its globalised innovation model and has recently launched Wayra, a specific programme created to foster innovation and provide a common space for the promotion of creativity. This initiative will enable the Company to face the changes ahead and globally approach innovation right from its core: ‘being able to imagine and anticipate these changes which will impact our lives’. Telefónica thinks is key to identify creative and innovative talent and support it from the start, by offering the tools, knowledge network and, if necessary, the financing needed so that ideas can become projects and eventually future services covering the needs of an ever changing digital world.
48 hours in which to share sector news and exchange visions of the future
For the ninth edition of the Telefónica Leadership Conference, the Company has brought together around 900 executives from 280 companies and public administrations, including the Telefónica Group’smain global corporate clients from across its operating markets. This two-day event includes presentations and interactive panels, providing an opportunity to debate and find out about new developments in the sector for the corporate market, to explore opportunities in the Americas, Europe and Asia, and also various panels of experts on topics such as Innovation, Cloud Computing, Mobile Technologies and Security 2.0.
Noteworthy representatives of the operator’s global clients to attend the Miami event include Leo Apotheker, CEO and President of HP, who participated in the inaugural session, as well as delegates from companies of the calibre of Nokia, Cisco, and RIM, among others.
