The Institute for Communication
Technology Management (CTM)
A Center of Excellence at the USC Marshall School of Business
2015 - 2016 Overview
CTM: The Future of the
Industry Happens Here
James G. Ellis, Dean of the USC Marshall School of Business, addresses industry executives at CTM’s Executive Roundtable
Wireless Broadband. Mobile Apps & Commerce. Digital Devices.
Streaming Video & Music. Big Data & Analytics. Digital Health.
Emerging Business Models. Internet of Things. Future of Media.
Disruptive technologies, new consumer habits, and emerging business models have transformed the
communications value chain from device makers and network service providers to content creators
and beyond. The increasingly connected consumer and workplace presents incredible opportunities if
key challenges can be addressed.
The Institute for Communication Technology Management [CTM] is a center of excellence
within USC’s Marshall School of Business. It provides research, educational programs, and forums
focused on the rapidly evolving communications, technology, and entertainment sectors. Founded in
1985, CTM is known by business leaders as a forward-looking, impactful source of thought leadership.
The Institute is also a powerful connector of decision makers in the industry. Our board members
represent over 20 companies representing multiple industry sectors. Professionals participating
in CTM programs provide valuable insight and help drive innovation across the larger digital
communications ecosystem.
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A Unique Consortium
CTM’s is supported by over 20 global corporations that shape the digital landscape. CTM member
companies receive a seat on our Board, joining a collection of thought leaders and decision makers
from across the digital value chain. Our board members meet in person twice per year and attend
CTM’s Executive Roundtable – an invitation-only, off-the-record, mini-conference where participants
discuss and debate the key trends affecting the future of the industry.
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Dealing With Disruption
CTM was founded over 30 years ago with the goal of providing thought leadership in the
communications sector – an industry that was rocked by deregulation and the breakup of AT&T. Since
then, CTM’s focus has evolved with the times: the rise of mobility, the emergence digital networks
and devices, and the evolution of business models, partnerships, and the user experience. Today,
CTM’s forums and educational programs provide critical insights for business leaders wrestling with
the massive disruption caused by the convergence of communications, technology and media.
PCIA President & CEO Michael Fitch discusses the need for public-private partnerships at USC CTM’s LA Broadband Summit
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Membership Has Its Privileges
CTM member organizations engage with the Institute via a number of activities and initiatives:
Board Meetings & Strategy Sessions: Each member company is represented on CTM’s board of
directors, a consortium of senior executives and decision makers from corporations that are deeply
invested in the growth of the digital communications sector and the industries related to it. Board
meetings provide one of the most valuable opportunities for engagement, and include strategy
sessions and other activities designed to both provide perspective on where the industry is headed
and a powerful forum for driving change.
“The CTM board meeting [and Roundtable] is one
of the only thing I’ll block two days of my time to
attend...and it’s totally worth every minute.”
- CTM Board Member
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Research Programs: Sponsored by a consortium of CTM’s member companies, CTM research
programs cover mobile networks, applications and services, consumer behavior in digital
environments, and the rapidly evolving entertainment sector. Sponsoring companies actively
participate in survey design and in research workshops where they share their views on the results.
For some studies, sponsoring companies are allowed to place proprietary questions in the survey
questionnaire.
Industry Forums: CTM hosts a number of public and private forums in which participants explore
the landscape of the emerging business ecosystem created by the convergence of new digital
technologies, products, services and content enabled by increasingly powerful and complex
broadband and wireless networks.
Leadership Education: Twice per year, CTM teaches a week-long course for high-potential rising
leaders focused on the key technologies that are transforming the business landscape including
mobile, cloud, and big data. Participants will also be introduced to techniques that drive innovation
within their organizations, including executive storytelling.
“It’s not just the quality and relevance of the
research. It’s the process. I get to interact with
other researchers and contribute to the design of
the surveys themselves.”
- Senior Director of Research, Technology Sector
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Research
The Disruptions That Drive Us
Shifting customer desires, emerging
technologies and new services are rapidly
transforming the industry:
• Monetizing high-speed wired and wireless
networks
• Digital displacement: OTT, streaming, and the age
of unbundling
• Big Data & Analytics
• Emerging business models in digital
communications, content, & commerce
• The Internet of Everything: connected devices,
machine-to-machine communications
Sponsored by a consortium of CTM’s member companies, CTM research programs
cover mobile networks, applications and services, consumer behavior in digital
environments, and the rapidly evolving entertainment sector.
CTM Research Initiatives: Sponsor Interaction
Sponsoring companies actively participate in survey design and in research workshops
where they share their views on the results. For some studies, sponsoring companies
are allowed to place proprietary questions in the survey questionnaire.
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CTM Research Projects: 2015 - 2016
Beginning in 2015 and continuing into 2016, USC Marshall’s Institute for
Communication Technology Management (CTM) will continue to investigate changing
market trends in its core programs and will embark on some exciting new research
projects. These projects continue to reinforce Marshall’s commitment to the CTM
members as together we seek to 1) appreciate emerging market trends, 2) anticipate
new trends, and 3) act to improve member company’s business.
CTM 2015 Interest Matrix
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Digital Home
Currently in its 8th year, the Digital Home Research Program focuses on all digital
activities that take place in the home environment. Using an extensive high quality sample,
the study measures the demand for new technology and tracks changes in consumer behavior. It
does so by analyzing the new emerging ways of media consumption and giving a comprehensive
view of how new technology changes video viewing in a multiscreen home.
During a typical day, Americans spend 4.5 hours using their television, over 3 hours on their
computers and 2.8 hours on their smartphones; this represents a significant increase in technologytime with almost all of the growth coming from one use of new technology. The Millennial
generation shows different use patterns: they watch less TV but spend more time on their mobile
devices. This foreshadows a continued market shift toward more personalized devices. This finding is
echoed by the fact that the TV screen is still the primary choice for all modes of video viewing in the
US; however, the majority of Millennials spend most of their time viewing videos on a non-TV device.
“Digital Home delivers survey findings on such
topics as device penetration and use, modes of
media consumption, cord cutting, etc..”
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Source: USC CTM Digital Home Study, 2015
Laptops are currently the top choice for Americans to engage in various activities while watching
television; looking forward the expectation should be that tablets and smartphones will continue
to grow as companion devices. Rarely does a single device have consumers’ full attention anymore,
and when they use a second screen device most of what they do is unrelated to the TV program.
Millennial behavior can be considered as an indicator of future behavior, their primary device choice
in this situation is the smartphone with tablets making rapid gains, and they are somewhat more
likely to tweet, discuss storylines or look up information related to the program. This reflects a
potential shift from an independent multitasking behavioral model to one where technology is much
more tightly integrated with other behaviors.
Source: USC CTM Digital Home Study, 2015
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Internet of Things:
Case Studies in Industry Disruption
The “Internet of Things” is a misnomer for how connected smart products and services will
transform industry value chains by re-architecting existing product and technology “stacks” with their
corresponding business models. The IoT vision of distributed embedded sensors, processors, storage,
software and connected devices communicating through analytics in an intelligent product cloud has
the potential to transform product competition from the functionality of a discrete product to the
performance of a product system, in which the firm may be just one stakeholder.
This research investigates how converting the IoT vision into competitive advantage involves difficult
business and technology trade-offs, each reflecting a company’s unique circumstances. The project
focuses on second generation IoT applications that extend beyond asset and customer tracking, to
focus on revenue generation from software and services on top of the hardware. We will analyze
whether IoT represents an exciting new business opportunity or a risky expansion of business scope.
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Consumer Broadband
Opportunities
The CTM consumer broadband study targeted four North American markets to examine key attributes
that drive demand for broadband service and established predictive models of consumer preference.
This preference quantitative study uncovered a high level of consumer perceived commoditization for
broadband internet service in all four markets. Price is by far the single largest driver of demand and
by comparison, brand has relatively little impact given the commoditization of internet services.
Source: USC CTM Consumer Broadband Study, 2015
Speed can differentiate a customer’s Internet experience. Increasing (download) speed increases
demand up to a point. In each market studied, there is a unique “threshold” at which increasing
speed had marginal impact on demand, and this “threshold” varied greatly between markets.
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Future of Media Research Program
Year Three
The Future of Media Research Program analyzes the evolving media consumption
and the transformation of business models, as consumers view more video over alternative devices and subscribe to OTT video services. In so doing, it allows its sponsors
to anticipate important industry changes and to develop actionable strategies to take
advantage of these trends.
The first year included a Viewer Displacement Analysis based on a survey panel of 5,500 NorthAmerican consumers and extensive interviews of C-level executives from the media, telecom and
technology sectors .
Deliverables for year two included a thorough analysis of the unfolding of business scenarios for the
future of media, such as Google expanding its fiber network and cable/satellite/MPVD operators
unbundling their channel lineup. Economic analyses were produced to evaluate the financial
repercussions of these wild card events on the way filmed entertainment is financed and produced.
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Year Three Program Objectives
In this third iteration, we will pick up where we left off in FOM2 and analyze the drivers of growth
for mobile video, starting with the maturation of business models and monetization strategies,
consumer pressures for ubiquitous availability and the spectrum upgrades that will be required to
enable this growth.
An increasingly mobile lifestyle considers network connectivity an integrated part of the way people
live their lives. This shift is increasing the demand for mobile entertainment options and people
expect these services to adapt to their active lives. This project will examine the drivers and the
impact these services have on existing ecosystems.
The project will also look at how existing mobile video business models might evolve and how
terrestrial video services might change in response to this accelerated adoption.
Source: USC CTM Future of Media 3 Report, 2015
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Mobile Life
The Mobile Life Research Program is an annual study of mobile phone users that has
tracked usage behavior for the past 8 years. The study is designed to measure the use of mobile
devices and services outside of the home. This survey looks at adoption patterns and how mobile
behavior is shifting over time.
Source: USC CTM Mobile Life 2015; Q: Think about the basic “feature” cell phone/ smartphone/tablet that you use: to
what extent were the following factors important to you when deciding among device types?
While 8 in 10 US households are expected to have at least one smartphone device in use by the end
of this year, the growth in adoption will most likely come from older demographics given that the
younger demographic is nearing saturation. Future smartphone service consumption will be driven
by the increased variety of activities people can do on these devices. Emailing, navigation and
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Internet access have become the most appealing service activities but users continue to seek new
applications for future use. When buying a mobile device, ease of use for key applications and price
are the key factors to consider.
Source: USC CTM Mobile Life 2015; Q: How much do you agree with the following statements about the use of mobile
apps and your privacy when you’re outside of home?
Interestingly, while there is public concern about privacy and security, Americans commonly share
personal or sensitive information on their mobile devices. A third of the US population claim they are
willing to pay extra to protect their privacy. However there is a discrepancy between claimed privacy
concerns and actual behavior in exchange for a discount, better customer experience consumers are
willing to trade granular personal information. The data suggests that privacy is not an absolute but
a continuum that is associated with trust. More data will likely be afforded to trusted players, and
each player has to decide how to protect and grow the trust quotient of their brand.
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Additional Research Projects Slated
for 2016
INTERNATIONAL MOBILE
The International Mobile Program provides a deeper dive examination of the way mobile technology
is being adopted by targeted countries on a worldwide basis. Targeted markets will be selected to
meet sponsor specified requirements. Topics included in this survey go well beyond penetration to include motivational data, discovery paradigms, application interest, willingness to churn, privacy and
quality perceptions, WiFi vs Cellular tradeoffs, business model concerns and service inhibitors.
WIRELESS OPPORTUNITY
Cellular services are often studied as a nationwide service evolution despite the fact that regional
demands vary significantly. This project will develop a cellular market simulator that is based on
regional survey data to better understand how competitive pressures are shaping local demand. Examination of specific markets will be targeted to meet sponsor driven requirements with an ultimate
goal of producing a market simulator that can be used to perform what-if scenario analysis by the
sponsoring companies.
PRIVACY, SECURITY, and TRUST
Privacy tests as a key concern in the digital age, yet consumer behavior reflects a casual attitude
toward security. This project will study how the need for privacy is impacted by trust; while there
can never be perfect security, action can be taken to grow or lose trust thereby modulating security
needs. The complexity of this topic demands a multiday 360-degree investigative process that incorporates questionnaires, diaries, blogs, multimedia, and qualitative inputs to get at the underlying
issues that shape behaviors.
BUSINESS and TECHNOLOGY
Technology is used to meet competitive pressures or to reduce operational costs. It is seldom deployed as a strategic tool because it is difficult to predict and validate return on investment metrics.
This difficulty is often related to a mismatch between the corporate culture and the technology
potential. Our goal is to pierce this veil and provide business guidance that is linked to technology
trends. Year one of the program will examine how technology allows new business structures to
emerge and cultural business shifts are needed to maximize the potential from these new structures.
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Leadership Forums
CTM provides exceptional thought leadership and impactful networking
opportunities for our sponsors and participants through a series of public and private
events. These leadership forums play a critical role in CTM’s efforts to unite business
leaders across industry sectors to embrace innovation and enhance the digital
communications ecosystem.
Allison Cerra, head of Marketing for the Americas region at Alcatel-Lucent, shares insights from her book,
Identity Shift.
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Executive Roundtable (ERT)
Our premier event for networking is our Executive Round Table (ERT).
Launched in 1985, ERT provides attendees an opportunity to discuss, candidly and offthe-record, the emerging opportunities to generate additional growth from the rapid
proliferation of digital devices, services and content.
Presenters share their perspectives on what types of consumer experiences, partnering strategies,
service platforms and value propositions will be necessary to attract customers in this new world. This
event is invitation-only, with no press or bloggers allowed, and is regularly attended by CTM board
members, research colleagues, industry partners and USC academics.
Digital Summit Series
CTM hosts additional, topic-specific forums throughout the year. These events are open
to the public, and focus on emerging trends, technologies and business models. Recent
Digital Summits include:
BIG DATA SUMMIT (in partnership with Variety and PwC): (featuring Philippe Dauman,
President and CEO of Viacom, Joe Marchese, President of Advanced Advertising at Fox, and Chris
Moody, Vice President of Data Strategy at Twitter)
INTERNET OF THINGS LEARNING LOUNGE (featuring Doug Webster, Vice President of Global
Marketing and Corporate Communications for Cisco Systems)
UP NEXT: BUSINESS INNOVATION IN THE AGE OF 5G - MAY 18, 2016 - USC CAMPUS
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Silicon Beach @ USC
Now in its fifth year, Silicon Beach at USC is an annual celebration of innovation,
new venture creation, and investment in the communications, technology and
entertainment sectors hosted by USC’s Marshall School of Business. It has two main
components:
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VENTURE COMPETITION: A $50K venture competition culminating in a highly publicized final
round. A $25K top prize along with sizable awards for second and third place. Applicants must
have one member of the team who is either a current USC student or recent alum.
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SB@USC CONFERENCE: A day-long conference featuring game-changers and thought leaders
from Hollywood studios, startups and other innovative companies in the communications and
technology sectors, and academic leaders from a number of USC’s elite schools.
By the Numbers:
2,000: Over the past four years, the event has been attended by over 2,000
business professionals, entrepreneurs, investors, public officials and USC students and
faculty. 200: Over 200 teams applied to compete in the four annual venture competitions.
UP NEXT: SILICON BEACH @USC 2016 - OCT 14, USC CAMPUS
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Advanced Management Program
disruption. innovation. convergence.
Technology is evolving at an unprecedented rate, transforming the communications, technology,
entertainment, and service sectors. Prospering in this environment requires thinking, leading, and
managing in ways dictated by an informed vision of the future and a clear understanding of the
technologies and media involved.
The Advanced Management Program (AMP) provides high-potential business leaders with the
tools and perspective needed to manage and lead in an environment transformed by the convergence
of the communications, technology, and media sectors. Participants will discover powerful
management frameworks, explore emerging technologies, and complete a case study incorporating
all aspects of the AMP program curriculum.
COURSE TOPICS [5-day session]
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•
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The connected, digital consumer and the emerging competitive landscape
Business strategy in the age of mobile, digital, social, big data, and The Cloud
Driving and managing innovation within organizations
Generational impacts on the nature of customers & employees
Driving positive change through executive storytelling
A case study incorporating all aspects of the AMP program curriculum
“This course and these sessions reflect the complexity,
challenges, and opportunities facing industry today.
It is not theory. It is the rugged and rewarding reality
that we’re learning about.”
AMP Participant
2016 COURSE DATES: SPRING: May 2 - 6 | FALL: November 7 - 11
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Interested?
To learn more about CTM activities, please feel free to explore our website at
http://www.marshall.usc.edu/faculty/centers/ctm/. You may also contact us
directly by email at: ctm@marshall.usc.edu or by phone at 213-740-0980.
Thought leadership at the
intersection of technology and
content. Join us!
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CTM: Institute for Communication Technology Management
Marshall School of Business
University of Southern California
AT&T Building
1149 S.Hill St., 9th Floor
Los Angeles, CA 90089
Tel: 213.740.0980 | e-mail: ctm@marshall.usc.edu