Convergence and connectivity is disrupting, transforming and collapsing industries, redefining the future of business across New Zealand and how Kiwi executives will manage companies in the future.
The interplay between cloud computing, mobile technology, big data and the Internet of Things is driving the surge in digital transformation and rapidly accelerating the pace of connectivity and convergence across all industries, radically changing lives; transforming the way we work, relax, learn, and manage our health.
Frost & Sullivan’s New Mega Trends, Impact on convergence in the future, has identified four types of convergence: Products, Technologies, Industries and Competition.
“Customers are no longer interested in silo based apps or services,” says Andrew Milroy, Senior Vice President for ICT Asia Pacific, Frost & Sullivan.
“They demand holistic, end-to end solutions for their connected lives and companies understand the importance of convergence for those solutions to materialise, thus incentivising partnerships between Energy, Security, IT, Healthcare, Automotive, and other sectors.”
Connectivity is enabled by the proliferation of connected devices and technology enablers create disruptions in various sectors, forcing convergence and thereby creating possibilities to build solutions for emerging demand.
Identifying new convergence areas will stimulate the development of new business models and new product development.
“An integral factor for growth for companies is to understand the landscape of new convergence areas and subsequent opportunities that could be generated in the future,” Milroy adds.
“Digital technology is allowing industries to radically improve their effectiveness and to transform themselves to meet stakeholder requirements much more than before.
“With a culture of innovation, companies can turn the disruptions into opportunities if they are able to respond appropriately with the right tools and strategies.
“Conversely, companies are likely to put their business at risk if they do not look at changes in other industries and innovate their products and services.
“As established and global as Apple and Samsung are, they are also constantly challenged to keep innovating to meet customers’ expectations.”
For Milroy, healthcare, energy, retail and financial services are all transforming rapidly.
“The music and media industries have already experienced the digital transformation and have radically changed the way we listen to music and watch videos and movies,” he adds.
“We are increasingly using mobile devices to manage aspects of our lives from banking to booking flights.
“Digital disruptors such as Google and Yahoo have driven the transformation of the advertising industry. Amazon has driven the digital transformation of the retail industry and has recently played a pivotal role in the digital transformation of the IT industry.”
Across the world, New Zealand included, the manufacturing industry’s adoption of digital technology has completely transformed manufacturing processes.
Harnessing a combination of cloud computing, mobility, big data and the Internet of Things, factories can make changes to production instantly.
For Milroy, this allows manufacturers to make large numbers of small customised batches, rather than small numbers of large batches, signalling the end of the mass manufacturing era.
“We are entering the era of the software defined factory and moving toward a state of autonomous factories which do not require people to work in them,” he adds.
The automotive industry has also experienced rapid digital transformation resulting in cars that are much more intelligent and autonomous than before.
“Cars can learn and customise the driving experience for individual drivers,” Milroy adds. “Cars can learn preferred/typical routes and use them when driving, taking shortcuts where necessary, if for example, there are roadworks.
“It can adjust its route and driving based on weather conditions, it can anticipate danger and eliminate accidents.