Convergence Can Be Integral Factor For Business Growth

by CXOtoday News Desk    May 06, 2015

convergence

The technology landscape is expanding at a rapid pace, changing perspectives, thereby bringing in newer business models. Today, a company need not strive to possess expertise in every field, instead it can collaborate with others with core skills and deliver excellence to its customers. Ultimately, it is about providing value to the customer, whose priorities have largely changed from ROI to better value proposition.

In that perspective, convergence offers several benefits and hence can be called the integral factor for growth Frost & Sullivan has identified 4 types of convergence: Products, Technologies, Industries and Competition.

Identifying new convergence areas will additionally stimulate the development of new business models. Convergence will be a driving factor for companies scouting for new areas of innovation providing a lot of scope for new product development.  In conclusion, connectivity and convergence will have a massive impact on business, society and personal lives. Most importantly, the future of all industries would be defined by the impact and adoption of connectivity.

As connectivity continues to drive convergence, companies would need to identify those adjacent, periphery products and services that could be added as a part of their portfolio in the future. This would define new solutions, new customers and even new partnerships and competition.

ProductsAccording to Archana Amarnath, Global Director, Visionary Innovation Group, Frost & Sullivan, “Companies are beginning to understand the importance of convergence. We see many players such as Google moving out of their traditional business areas to form new partnerships and new solutions. Customers no longer are interested in silo based apps or services. They demand holistic, end-to end solutions of their connected life and for that to materialise, we will see a lot more partnerships between Energy, Security, IT, Healthcare, Automotive, and other sectors. “In the connected world, various aspects related to home, work or city environments are converged which is part of our Digital Life.Frost and Sullivan says in future, telecom players are best positioned to provide converging solutions even beyond physical home environment including areas of connected work and other aspects of a city as well. “A lot of this convergence will be driven by connectivity,” says Amarnath. “Key aspects such as proliferation of connected devices, smart city solutions, and social factors would also drive convergence. Social trends, like aging societies for example, would demand specific solutions around assisted living- an area that a lot of telecom players are actively looking at,” she added.

Technologies

In 2012, Samit Ray, Director and CIO, PricewaterhouseCoopers, said: “The future will be more towards convergence in which mobile technologies, cloud computing and business intelligence will play a significant role. The challenge for CIOs would be to operate in an ever complex business environment where IT will merge into every other corporate function to create global business services, such as human resources and finance, leading towards centralization.”

“With the business landscape becoming more complex and transformative, the CIO’s role will also continue to become more strategic with a focus on creativity, collaboration and innovation,” he says.Sunil Manglore, MD, CA Technologies, India, states that the key to converged data center is virtualization. Companies are realizing that virtualization of storage, server and network resulting in data center consolidation can help them reduce the cost and complexity that comes with fragmented facilities.

“Of the various cost benefits of converged data center, energy cost savings is the most obvious one because less energy is used to run the same workload in a virtualized environment, believes Manglore. Along with cost savings, convergence can enhance the responsiveness of the IT department, making internal operations more efficient,” he says.