Wednesday, December 06, 2006

The impact of technological convergence


Technological convergence is occuring in technology products, services and platforms. Adventis argues that branding, bandwidth and business models are the new triangle to deal with this dynamic. Thus, there is a migration value to knowledge-intensive layers of the infocom value chain. Processes such as information transport are becoming commodities. There are not a lot of value creation at the transport division of AOL, but more in the content portal and Internet services division.

The innovation dynamics depend on the abilities to:

  • Develop and monetize intellectual property through customized value packets that in turn enhance the yield of investments in knowledge
  • Access low-cost manufacturing centers of the world (i.e. Taiwan in semi-conductors, India for software engineering)
  • Create an environment that continually enables customers apply intellectual property to make more effective use of products

Louis Rhéaume
Infocom Intelligence
infocom@videotron.ca
514-528-6422

Ghosh, Patricia, "Technological convergence is transforming business models, and new digital paradigms are emerging", Journal of Business Strategy

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