Press Release
UK Telecoms Companies at Innovation Crossroads
Following major independent best practice report by the Snell Consultancy
London 6 September 2004: The first major independent report ever written investigating innovation best practice in the UK Telecoms market, has today revealed that UK Telecoms companies (Telcos) are at an innovation crossroads.
The report, entitled "The Snell UK Telco Innovation Report 2004", was based on interviews with over 25 executives at the UK's premier Telcos. The research reveals there is a gap between those Telcos that understand the process of innovation and those that do not.
Snell UK Telco Innovation Report 2004 key recommendations
According to the report, Telcos must:
- Innovate - the only long-term strategy for reversing continuing revenue decline is the acceleration of product and service innovation.
- Manage innovation strategically - to meet all future opportunity.
- Adopt formal innovation strategies - with business cases which actually stack up.
- Measure innovation - no UK Telco's are currently doing this.
- Follow the lead of the few who have developed strong and successful innovation strategies.
Professor Peter Cochrane, co-founder of ConceptLabs CA, and former CTO and head of research at BT comments,
"The report captures the very kernel of the telecom world problems along with the drivers inside and outside the sector. The report rightly identifies management mind sets and out of date business models as the major impediments to progress and success."
Professor Joe Tidd Professor of the Technology and Innovation Management University of Sussex comments,
"This is a timely assessment of an industry which is at an innovation crossroads. It identifies a number of trends and weaknesses in the management of innovation in the telecommunications sector. What is needed, and what I hope the report will initiate, is the integration of innovation in both the strategy and organisation of Telcos."
Ivan Snell, co-author of the report and managing director, Snell Consultancy comments,
"In today's cut throat environment, current and future revenue generating opportunities will only be maximised by those Telcos that focus on innovation and have a clear innovation strategy."
Many of the Telcos interviewed recognise the importance of innovation and some demonstrated they are Innovation Led. However, not one of the Telcos interviewed had formally documented innovation strategies and only a small number understood how to manage innovation strategically.
According to the report Telcos need to dissect their approach to innovation and formulate clearly defined strategic plans including assigning board level responsibility for innovation.
"The report challenges the UK Telco market to innovate in a clear, strategic and systematic manner when managing innovation. Those that adopt this approach will be rewarded with faster rates of revenue growth in the future," continues Snell.
The report highlights significantly differing attitudes to innovation from top managers in the UK Telco market ranging from,
"Having a Head of Innovation would be dull."
"Yes, innovation is a strategic priority but I could not point to anyone at an executive level, even the CEO, and say there is a person who is accountable."
to more encouraging views including,
"Innovation is the only thing that is going to take us out onto a growth phase."
"Not measuring innovation could be viewed as an abdication of management responsibility."
Mike Carr, director of research and venturing from BT Exact, a company recognised as Innovation Led by the report, comments,
"We are obviously pleased that BT Exact has been recognized by the Snell Consultancy as an innovation led company. Innovation is critical to our success and we have made great strides in the last few quarters to develop new products and services for customers."
For more information on the report visit www.snellconsultancy.co.uk
Ends.
Notes for Editors
Those interviewed for the report include Band-X, BT Exact, BT Wholesale, C&W, a UK Cable Company (CableCo), Energis, Kingston Communications, Inmarsat, Orange and mmO2.
The companies interviewed are segmented into Innovation Agnostics, Aware Innovators, Innovation Practitioners and Innovation Led companies - for more details go to www.snellconsultancy.co.uk.
The Snell Consultancy definition of innovation - "Innovation creates change for economic gain."
"The Snell UK Telco Innovation report 2004", Copyright © 2004 - 2005, Snell Consultancy Services Limited can be purchased by visiting www.snellconsultancy.co.uk or by calling 020 7381 9250.
Who are Snell Consultancy?
Snell Consultancy is a management consultancy firm which is solely focused on assisting companies to improve and strengthen their innovation performance. Established in 2000, Snell Consultancy works with clients in a number of technology intense industry sectors and has in-depth experience in launching new products and services, especially in Telecommunications.
Ivan Snell has a Masters of Science (MSc) in Technology and Innovation Management. He is the Founder and Managing Director of Snell Consultancy. For over 10 years, Ivan has worked with a number of UK and European fixed and wireless telecommunications operators, service providers and vendors advising them on the strategic management of innovation.
Who is Professor Peter Cochrane?
Peter Cochrane is a co-founder of ConceptLabs CA, where he acts as a mentor, advisor, consultant and business angel to a wide range of companies. He is the former CTO and Head of Research at BT. In addition, he holds many prominent posts including technologist, entrepreneur, writer and humanist. He is also the UK's first Professor for the Public Understanding of Science and Technology. For more about Peter, see: www.cochrane.org.uk.
For more Information
Please contact:
Will Cairns
PR Consultant to the Snell Consultancy
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