Convergence crucial to the future of business models
More convergence will be key to the business models of the future, according to Frost & Sullivan.
Partnerships and collaborations are to become the norm for organizations of all sizes. Enterprise products, technologies, industries and competition will all play a part in driving convergence the research firm found.
Even some of the biggest companies in the world are identifying convergence as a focus, with the merging of ideas crucial in both short and long-term strategy mapping.
“We see many players such as Google moving out of their traditional business areas to form new partnerships and new solutions. Customers [now] demand holistic, end-to end solutions of their connected life and for that to materialize, we will see a lot more partnerships between energy, security, IT, healthcare, automotive, and other sectors,” explained Archana Amarnath, Global Director of the Visionary Innovation Group with Frost & Sullivan.
As technology becomes more interconnected, collaboration between businesses will likely become the norm in the coming years. The customer of the future will demand that their watch can communicate with their car which will subsequently ‘talk’ to their house and so on, for example.
No company has the ability to build and maintain solutions for all of those sectors, let alone make them cost effective to the end user. While recent developments have even seen Apple exploring the automotive sector, more dialogue between even the biggest businesses will be needed.
Enterprises of all sizes will have to take this into account in their strategic planning. While it may have been easy in the past for organizations to go it on their own, an ‘us against the world’ mentality simply will not be productive in the business environment of tomorrow.
Furthermore, as Frost & Sullivan points out, the time is now to start the process of embracing convergence. Enterprises that don’t will only be left behind by their more progressive competitors.