|Material Business Risk and key drivers
The risk that we are unable to cost effectively and productively respond to, or take advantage of, rapidly changing business models, consumer behaviours, technologies and our competitors, and manage the shift in our earnings composition through execution of our strategy.
Our ability to operate as a global business and be agile in responding to these market conditions can impact our ability to: achieve our productivity ambitions that will make us more innovative and competitive; reengineer our business to deliver world class experiences, products and services for our customers; and further enhance our brand and reputation in global markets in our effort to become a world class technology company that empowers people to connect.
This risk is exacerbated as we expand our operations overseas and enter new markets that have varied legal, regulatory and geo-political environments. Telstra’s strategic objectives and growth ambitions remain vulnerable to events associated with established competitors and other global companies seeking growth within these same markets.
Our strategy to manage this risk involves a combination of driving efficiencies in our business, monitoring emerging technology trends and disruptive technologies, and actively investing ourselves in innovation and technology driven business opportunities. Examples of recent initiatives in this area are included under Improve customer advocacy, Drive value and growth from the core and Build new growth businesses.
We are focused on developing our capability to innovate internally, whilst accessing and acquiring the required people capability, technology innovations and business models through our relationships with global technology companies, key suppliers, and joint venture partners (more about how we’re developing our innovation capability can be found under Build new growth businesses).
To improve our responsiveness and agility, and rationalise our cost base, we are undertaking a multi-year portfolio of work which is currently focused on simplifying our systems, processes, and technology. Our renewed approach to simplifying the business is focused on providing enhanced products and better customer experiences (examples of which are provided Drive value and growth from the core). Internationally, we are executing on country level strategies to tap into local market dynamics, to enhance our understanding of the legal and regulatory environment, and to establish greater penetration and presence in these markets.
We also continue to pursue growth opportunities from emerging markets, and are focused on attracting the world class talent required to execute our growth strategy, to realise the value from our mergers and acquisitions and joint venture partnerships, and to further strengthen our brand and reputation (more about how we’re building new growth businesses is covered under Build new growth businesses).