Telecom layoffs have climbed above 175,000 since the first of the year. Earnings are down, stocks are down and a turnaround is not expected until well into 2002. It is often hard to keep your chin up in the current economic climate.
For an industry that still holds plenty of promise, but may have gotten a little ahead of itself, there is good news on the horizon.
It seems some executives are trying to look on the bright side of things- in between handing out pink slips-and say wireless has a place beyond the clouds.
A recent Accenture study finds that half of business executives surveyed feel the chance to eliminate poor business models is the silver lining of the economic slowdown. The inability to get new capital is the most negative impact of the times, according to 39 percent of those responding.
Most of the 150 executives surveyed feel having a chance to “get their house in order” is the greatest advantage of the economic downturn. A little deep cleaning never hurt anyone.
More than 31 percent of executives stated the economic slowdown will allow them to focus on cost reductions and enable them to gain sector prominence as the market shakeout takes out their competition. There is a delicate balance in that, to be sure. You can’t cut back too much and remain competitive at the same time. What’s that adage … you have to spend money to make money?
Fortunately for an economy in dire need of a jump start, many executives recognize this and indicated plans for technology investments, with customer relationship management and wireless communications initiatives topping the list at 26 percent and 25 percent respectively.
One in four executives feels the next killer app for the business world will be wireless or mobile in nature.
David B. Rich, an Accenture global industry managing partner, says businesses should be preparing themselves “to thrive once the economy emerges from a slow period.”
“While there is no way to control economic cycles, business leaders can use the soft economy to create opportunities and move their companies into a position of strength for the future. Integral to this big-picture outlook is the ability to integrate people, process and technology, in good times and in bad, while staying focused on core competencies,” said Rich. “We’ve been telling this to our clients all along.”
Now we need a few big players to get brave enough to take the strategy and run with it and set the economy back in motion.
