Convergence in the Marketplace
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This document discusses convergence in technology and markets. It defines convergence as the merging of distinct technologies, industries, or devices into a unified whole. Examples provided include the camera phone, which converged camera and phone technologies. The document explores drivers of convergence like broadband internet access. It outlines the major players involved in convergence across the value chain from infrastructure to terminals. Forms of convergence discussed include technological substitution and integration. Challenges of convergence are also presented, such as developing regulatory frameworks and addressing issues of privacy, security, and standardization.
Convergence in the Marketplace
- 1. Convergence in the Marketplace Mandar Ghanekar SCIT ExMBA 2011
- 2. Mandar Ghanekar SCIT ExMBA 2011 Convergence – What is it ? The merging of distinct technologies, industries, or devices into a unified whole. BlackBerry, camera phone, media centre, interactive TV and internet telephony all have one thing in common: they are the outcome of a budding convergence trend based on innovations in information and communication technologies and their products.
- 3. Mandar Ghanekar SCIT ExMBA 2011 Marketplace Convergence
- 4. Mandar Ghanekar SCIT ExMBA 2011
- 5. Mandar Ghanekar SCIT ExMBA 2011 Drivers of Convergence
- 6. Mandar Ghanekar SCIT ExMBA 2011 Drivers of Convergence (cont’d)
- 7. Mandar Ghanekar SCIT ExMBA 2011 Drivers of Convergence (cont’d) Penetration of broadband internet access The need for enhanced access and mobility to drive user productivity Growing worldwide concern for safety and security New energy conservation and environmental initiatives Demand for operational efficiency and lower total cost of ownership (TCO)
- 8. Mandar Ghanekar SCIT ExMBA 2011 Major players in the Convergence Process Link in the Value Chain Players Involved Infrastructure Radio and TV stations, Telecom companies, Mobile companies, Network operators, IT manufacturers, Public authorities/ Regulators Communication Telecom companies, Mobile companies, Internet providers Information / Entertainment Newsagencies, Radio and TV stations, Media companies, Media right owners Transactions Financial services Providers, Retailers, IT systems suppliers, Public authorities / Regulators Terminal Equipment PC manufacturers, Consumer Electronics Companies, Retailers, Logistics companies
- 9. Mandar Ghanekar SCIT ExMBA 2011 Example of Technology Convergence
- 10. Mandar Ghanekar SCIT ExMBA 2011 Forms of Convergence Technological substitution. In the 1990s, the underlying internet technology broadly penetrated various application markets, supplanting established technologies there. In the course of internet diffusion, further process and product innovations became possible in the relevant industries. These sectors are linked by the common basic technology. Technological integration: The example of the PDA shows how a new product can emerge from the combination of different technologies. In this case technologies from computer hardware and software, consumer electronics (LCD screen) and telecommunication were bundled together into a new product, the PDA
- 11. Mandar Ghanekar SCIT ExMBA 2011 Forms of Convergence Complementary product convergence: Mobile data communication did not become user friendly until introduction of the packet-based GPRS mobile radio standard featuring higher data transfer speeds than GSM. In combination, the complementary “products” PDA and online services, which had previously been available only separately, added value for the user. This technological link is characteristic of complementary production convergence. Substitutive product convergence: Smartphones integrated conventional voice telephony, the exchange of data via e-mail and internet and the and internet and the basic database functions of a PDA in one product. Whereas there is no substitutive relationship between mobile phones and PDAs, the convergent smartphone basically replaced both the conventional mobile phone and the PDA.
- 12. Mandar Ghanekar SCIT ExMBA 2011 Examples of Convergence
- 13. Mandar Ghanekar SCIT ExMBA 2011 The 5 C's of Convergence Marketing 1. Customerization — Convergence of customized and standardized offerings and messages 2. Community — Convergence of virtual and physical communities 3. Channels — Seamless convergence of call, click, and visit 4. Competitive value — Convergence of new and traditional competitive value equations and pricing models 5. Choice tools — Convergence of new search engines and decision tools for consumers and company-provided advice
- 14. Mandar Ghanekar SCIT ExMBA 2011 Benefits of Convergence Information Fusion - Fusion is all about combining different types of content, such as traditional 2D digital maps, GPS, satellite imagery and sensor observations, into information that is tailored for specific users. For e.g. Disaster management professionals have extensive command & control process and situation awareness requirements that mandate the use of effective information fusion. Increased Market Competition - The emergence of new market players intensifies competition, giving consumers an extensive pool of providers and services to choose from and lower communication costs
- 15. Mandar Ghanekar SCIT ExMBA 2011 Benefits of Convergence (cont’d) Emergence of New Services & Applications - Convergence opens up new sales markets for companies, a case observed in mobile operators. Convergence has given established companies an opportunity to operate more efficiently, increase their ROI on technology investments and realize other business benefits through development of new services and rapid market expansion. Convenience and Simplicity - At device level, consumers find in convergence an opportunity to enjoy the convenience of having many devices all in one, saving on both size and ownership costs.
- 16. Mandar Ghanekar SCIT ExMBA 2011 Challenges in a Convergent Market New Regulatory Framework - The combination of services over the same platform is challenging common perceptions about the best means to license and regulate providers. Bandwidth Shortage and Infrastructure Upgrade - Convergence gives rise to new services and applications which are bandwidth intensive, requiring an existence of broadband infrastructure. While developed economies may not face a bandwidth shortage dilemma, the same may not be said about most of the developing economies where telecommunication infrastructures are still relying on narrowband technologies.
- 17. Mandar Ghanekar SCIT ExMBA 2011 Challenges in a Convergent Market (cont’d) Privacy, Security and Reliability - As society becomes increasingly interconnected and dependent of ICT networks, cybercriminals continue to invent increasingly cunning ways to exploit human and computer vulnerabilities to their malicious benefits. This, challenges operators, service providers and users to take measures to minimize risks of network intrusions and viruses. Similarly, as technologies and systems become complex, the higher is the risk of their instability. Standardization - Interoperability and standardization are particularly important to progress on all four types of convergence. Yet developing an optimum standardization path is still by no means inconsequential, given that blueprints are hardly possible when technical progress is uncertain. On one hand a standard must not be allowed to stand in the way of further technological development, and on the other it must guarantee the smooth transfer of data.
- 18. Thank You ! Nobody can predict the future, but you can understand the forces that will shape the future and it is always better to play with the forces than against them. ~ Lester Thurow