Study: The Digital Challenge | Page 11

11 FORCES DRIVING THE DEVELOPMENT OF NEW BUSINESS MODELS REGULATORY STRUCTURAL TECHNOLOGICAL Possible relaxation of existing regulatory framework/regulation of telcos, especially with respect to net neutrality and consumer protection. This loosening is apparent in the new regulation that the European Commission has adopted, which, for example, made it possible for streaming services to operate within the EU seamlessly without any restrictions. 3) Promoting investments (through subsidies or tax relief). Company-specific: Restructuring of intracorporate structures focusing on digital issues: Simplifying work processes, attitudes, and decision-making levels helps to make companies faster and more flexible. Innovation hubs or corporate ventures can provide the requisite leeway to this end. Demand-induced: The expectations of a new generation – the digital natives – because they are considered end customers who are less willing to pay for services, yet increasingly expect to have access to all data and apps everywhere and at all times. Greater data allowances can be processed in real time thanks to improved methods of analysis. High level of market penetration with smartphones and good mobile coverage drives customers’ demand for new services. By 2021, 50.5% of the world’s population will have a smartphone 4) ; currently a mere 1.3 billion people do not yet have access to a broadband network. 5) In the cloud: positive developments with respect to data security/privacy (protection of personal data). goetzpartners also sees the following drivers at work: Many sectors recognize the potential of IoT applications (e.g. industry, healthcare). Powerful network technologies, advanced end user devices (smartphones, tablets) as well as new device categories (wearables, voice assistants). Low consumption of energy and established security standards make services attractive for broader customer groups. B2B: standardized network technologies (e.g. NarrowBand IoT, LTE-M, 5G) and economical hardware (sensors, actuators) enable more efficient IoT solutions. 3) European Commission (2017). Digital Single Market: EU negotiators agree on new rules allowing Europeans to travel and enjoy online content services across borders. Retrieved from http://europa.eu/rapid/press-release_IP-17-225_en.htm 4) Statista (2017). Digital Economy Compass. 5) GSMA (2017): The Mobile Economy 2017.