Convergence, which is occurring along many different dimensions, is rapidly changing the traditional business landscape. Companies that can adapt their strategy and execution to this new world, in a bold but sustainable way, will benefit from new markets, new customers, and new business models.
Examples of convergence:
- Convergence of device and services: Consumers and employees are increasingly using the same technology devices for similar activities – accessing corporate data to gain better insight into immediate and ongoing relationships (flight delays, package shipments, loyalty programs).
- Fixed-Mobile Convergence (FMC): Consumers have ditched landline phones and gone completely wireless. These trends are fueling business-models such as shared telecom infrastructure. In the past telecom companies, for example ATT and Verizon, spent billions building their own wireline infrastructure. With FMC forcing a rapid shift to mobility, leading telecom companies around the world are beginning to share wireline and wireless infrastructure to save on capital expenditure.
- Enterprise segment for smartphones: Due to trends such as consumerisation of IT, consumer phones and tablets are becoming increasingly common in the enterprise. In response, many mobile device companies that primarily were focusing on the consumer market are increasingly focusing on the enterprise market.
How PwC can help:
- Determining the appropriate business model(s) to address new markets
- Identifying best fitting operational strategy that allows them to straddle the old and the new
- Providing best practices on reaching, engaging, and retaining new customers
- Accessing what talent is needed, how to attract and retain it or how to refocus / retrain existing assets
- Designing strategy to encourage / acquire / nurture innovation to flourish in the changed landscape