Staying competitive in a fast-evolving landscape requires a willingness to embrace change.
It’s undeniable and understandable: for CEOs looking for a competitive edge, the lure of cutting-edge technologies often proves irresistible. Cloud computing. Virtual reality. The metaverse. Artificial intelligence. Every year brings a tsunami of shiny new objects, each promising to transform organisations. But the lure of new technology can also be dangerous.
Today’s media sector leaders face the challenge of absorbing the latest advancements in technology while staying strategically focused on what truly matters. New technologies emerge at a dizzying pace, increasing the risk CEOs may spread resources too thin and, in the process, lose strategic focus. This can tarnish a company’s brand, impair customer service, disrupt operations and harm profitability.
Conversely, CEOs ignore technological advances at their peril. History is littered with examples of media companies failing to adapt and paying the price. I recall a meeting with major newspaper publishers at the height of the industry’s digital disruption, where their key demand was to reduce the duties on paper. Staying competitive in a fast-evolving landscape requires a willingness to embrace change, and forgoing innovation opportunities can lead to stagnation and eventually obsolescence.
So what’s the solution? Instead of being distracted by the potential of new technologies, CEOs must evaluate their likely impact on the customer experience, profitability, competitive landscape and employee engagement. A balanced approach that aligns technology adoption with a company’s core mission and vision is essential. Establishing multi-disciplinary teams can provide diverse perspectives, ensuring comprehensive assessments and successful implementations for those technologies that are pursued.
A customer-centric focus is paramount. Every technological initiative should enhance the customer experience, guided by continuous feedback. Creating space for innovation and rapid trials is also crucial. Pilot projects, separated from core operations and undertaken with an agile startup mentality, allow experimentation and quick iteration, mitigating risks before full-scale deployment.
Clear communication with stakeholders is essential. CEOs must articulate to shareholders and boards the strategic rationale behind the adoption of any technology, regularly updating them on progress and impact. They must be willing to make hard decisions when an initiative isn’t meeting clearly defined objectives and, similarly, to strategically place bigger bets when it is. No matter what, transparency with stakeholders fosters trust and aligns everyone toward common goals.
Consider Apple’s recent approach to GenAI technologies. Initially hesitant, Apple integrated GenAI functionality into its devices in a measured way, tying it closely to applications to make existing tasks easier.
Closer to home, MBC’s shift from a linear to a streaming mindset and SRMG’s embrace of digital models are prime examples. These decisions required a change of perspective by the management team; significant investments in content, capabilities and acquisitions without a guaranteed path to profitability; the redefinition of customer relationships while still appealing to a broad base; and the transformation of brands that had been a staple for audiences for decades.
These moves were bold but not hasty. They reflected an awareness that the rapid pace of technological advancement presents both opportunities and challenges. Take on too much and you risk losing sight of a company’s core strategy. Yet taking on too little risks rivals securing a vital competitive edge.
So as you explore the shiny new marvels at IBC, be sure to keep your strategic customer-focused perspective firmly in the driving seat.
Karim Sarkis is a Partner with Strategy& and the leader of the firm’s Media and Entertainment sector in the Middle East.
