Infocom analysis

Brief history of some major Infocom players.

The convergence of technologies, industries and companies (through mergers and acquisitions and/or innovation) is a recent, but not a new phenomena.Microsoft's Infocom strategy of having a significant foothold in many competitive Internet access technologies (Internet browser, video games, PDA and cellphones operating system/browser, cable, wireline) is conducted with the aim to be ready to invests massively, when such markets soar.NEC's visionary concept of computers and communications (C&C) has exploited the idea of convergence in these two industries while spending less in R&D than players such as AT&T. AT&T had a desastrous convergence experience with the acquisition of NCR, which is now used a classic business case of value destruction in strategic management.

NEC build a strategic architecture to profit from two industry discontinuities in C&C: systemization and digitalization. They have nurtured the competencies to exploit these opportunities... starting in 1977! R&D expenditures were adjusted to this strategy and complemented with alliances, acquisitions, joint ventures and licensing deals. Today NEC is betting heavily and well positioned for the next market which will take off, the convergence of broadband and mobile communications with a new slogan: Empowered by Innovation. The management of innovation is a top challenge particularly in the converging info-communications industry.