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Home > Press > Innovation Blowback from Emerging Markets and Mobile Networks Moving Indoors Among Top Trends for 2008; Online Advertising to Face Growing Obstacles

Abstract:
Delotte Identifies Top Trends in Tech, Media and Telecom Sectors

Innovation Blowback from Emerging Markets and Mobile Networks Moving Indoors Among Top Trends for 2008; Online Advertising to Face Growing Obstacles

New York, NY | Posted on January 25th, 2008

Deloitte's Technology, Media & Telecommunications (TMT) industry group predicts that, in 2008, at least one technology innovation developed in an emerging market will become a disruptive force in Western economies.

"Western companies understand the importance of innovating in emerging markets," said John Hagel, co-chairman of the Deloitte Center for Edge Innovation. "They should not miss the much larger opportunity for innovation blowback to use emerging markets as seedbeds for innovation that can be used to attack more entrenched positions in more developed countries."

Meanwhile, the transformation of mobile networks from primarily outdoor to increasingly indoor usage will create new opportunities for network operators, who will need to move rapidly as the process of fixed displacement takes hold. In advertising, the growing online advertising market will contend with increasing consumer antipathy to online ads and concerns about the tracking of online behavior.

Predictions 2008 is a series of three reports examining emerging developments and how they will shape the TMT market. They were written by the Deloitte TMT industry group with input from leading industry analysts and executives. Each report includes recommendations on how to best take advantage of these trends.

Accompanying the Global TMT Predictions this year is a closer look at the U.S. market in a separate report called the Deloitte 2008 Industry Outlook. This report for Technology, Media and Telecommunications looks directly at trends impacting the U.S. market in 2008.

Key trends identified in these reports include:

Technology

-- Innovation Blowback: Technology industries are demonstrating increased interest and investment in developing products to reach large, low-income populations in emerging economies such as India, China, and Latin America. In a phenomenon called innovation blowback, expect to see at least one of these innovative products, services, or management practices be introduced back into Western economies in 2008 and act as a disruptive force, targeting the entrenched positions of incumbents in these more developed economies.

-- Green Technology Issues: LED lights, nanotechnology and water conservation technology predictions are all examples of how technology will play an important roll in green issues in 2008. Additionally, the growing importance of green technology to U.S. corporations will lead to the creation of a new certification body for energy-conservation claims.

-- Privacy & Protection of Personally Identifiable Information: The rising value of digital protection, the flight to privacy and a move to online authentication will become increasingly important as increasingly sophisticated consumer targeting plans emerge, along with continued data security breaches involving personally identifiable information security.

Telecom

-- Getting Mobile Indoors: With an increasing portion of network traffic moving indoors, how will mobile operators adapt to this changing landscape? Network sharing will be a strategic decision made by many operators in 2008.

-- Accessibility as a Business Driver: Demographics are creating new market opportunities for communications services and products. Market segmentation will play a key role in creating new product target markets.

-- From Credit Crunch to Communications Crisis: A vital question for the telecommunications sector is the extent to which the current credit crunch may provoke a crisis in the telecommunications sector in 2008.

Media & Entertainment

-- Online Advertising: Despite increased spending on online advertising ($10 billion invested in specialist online advertising companies alone), there is growing antipathy by consumers to the online advertisement and the tracking of online behavior.

-- Long Live Traditional Television, Thanks to Internet Television: Internet television will increasingly broaden the user experience of traditional 'TV' as opposed to providing a viewing experience that competes with it.

-- The Living Room Moves Closer to Being Public Enemy Number One: More elaborate TV/entertainment set-up in living rooms means higher energy consumption nationwide. The media and electronics industries will need to consider how the carbon footprint of the living room can be reduced without returning to antiquated technology.

Full reports on Deloitte's predictions for the Technology, Media and Telecom industries are available at www.deloitte.com/\us\2008tmtpredictions .

####

About Deloitte's Technology, Media & Telecommunications (TMT)
As used in this document, "Deloitte" means Deloitte & Touche USA LLP. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte & Touche USA LLP and its subsidiaries.

For more information, please click here

Contacts:
Jonathan Gandal
Deloitte
+1-203-708-4115


Dan Bingham
Hill & Knowlton
+1-212-885-0510,

for Deloitte

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