Can Digital Convergence be a threat?

While we were was busy seeing the various ways in which digital convergence is unfolding itself, we thought of exploring the other side of this revolution as well. Though the benefits from this look humungous, we thought of looking at the other scenario i.e. is any way in which digital convergence can prove to be a threat?
As we have already discussed in our blog that convergence brings with it the presence of multiple choices which increase the complexity. This complexity can pose serious problems for the consumer.
The other aspect is the threat posed to the existing enterprises? Just Like emergence of internet posed threat to the traditional brick and mortar companies; Digital Convergence poses the same threat to the current companies. Let’s take both the scenarios one by one.
First, let’s take the complexity problem. No doubt, convergence brings with it complexity. For simplicity let’s take the example of an iPhone. This device is just an example of digital convergence. It caters to the needs of entertainment, games, music, video, email, internet etc. So we have multiple choices being an iPhone user. We can connect to friends via social networking sites, do stock trading via mobile based applications, play games, download and listen to favourite music at our will. All at the same time. WoW!!!!! Now we can see that we have choices but where is the complexity? Now the complexity can arise differently in different scenarios. First case is a not tech savvy guy will really struggle to use the iPhone even for the basic purpose of making calls or sending messages. We need to possess a certain level of technological knowhow to be comfortable using it. Give the same iPhone to a college guy instead of an 80 years old man and he will jump with joy. SO the complexity lies in the type of consumer and the expected wisdom of consumer in handling products which are created as a result of digital convergence.
Now, even if we have given this iPhone to a tech savvy guy, there is a high probability that he won’t be using all the features of this iPhone. The complexity for him is to choose what to use and what not to use. The complexity faced by him can be compared to the complexity faced in case of data or information overload. The benefits realised in accumulation of data at one point will be lost if equal amount of time/resources is wasted in getting the right data at right time. The other complexity arising from this convergence is the consumer’s right to pay only for what he uses. This concept goes for a toss as consumer is paying for lot many things which are present in iPhone but consumer is not even aware of. At a time when philosophies like Service Oriented Architecture and Cloud Computing are emerging to cater to the need to paying only for the relevant service, Digital Convergence goes in an opposite direction. The other complexity is about choosing the few from many. Can the guy choose to listen to music and attend a call at the same time? No. May be in future but as of now it is not possible. So, obviously there are a few challenges associated with the convergence paradigm.
Now, let’s see how Digital convergence is a threat to the existing enterprises? Is it really a threat or not? If we analyse the dynamics that happened with the emergence of internet, we can easily see the solution. The companies which survived were the one’s which seized internet as an opportunity and changed their business model accordingly. As a result, many companies have now internet as their distribution channel and they even advertise their products on internet. Similarly, in order to cope up with the changing digital landscape, companies must evolve their business processes. Companies can take the route of Mergers and acquisitions to diversify and thereby leverage the benefits of Digital convergence. As the convergence progresses, the C2C market is expected to rise as consumers will have more ease in connecting with them so companies can think of a business strategy to reap benefits from this impending change in the market. Overall, Digital convergence will create problems for the enterprises which are reluctant to change but at the same time digital convergence opens up new vistas to be explored.
We are analysing the new vistas which will be opened up due to Digital Convergence. Stay Tuned to our blog and keep providing us your valuable feedback and suggestions.