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.

Technology convergence and TV entertainment of the future

The prospect of TV and the web, basically any digital media/entertainment, all becoming seamlessly integrated, personalised, and readily available on the move at high speed is not a distant future. In fact the future is starting today. It will be simple searching of a database for any movie or television episode ever created and then instantly downloading and watching it. Even better the user won’t be confined to home television or computer; he can use his cell phone to watch the latest episode of his favourite television show while sitting on the train to work.
• The concept of prime time television will no longer exist the way it does now. Users will simply download the latest episode and watch it whenever they want to. Only time sensitive events like elections, Olympics and reality shows like Big Brother or American Idol will be watched “live”.
• The film industry has taken note of how badly the music industry dealt with piracy issues and has learnt from their mistakes and the subsequent success of legal music services like iTunes. They seem to “get it”, unlike the music industry in the early days of online music. The way to compete with pirates and illegal file sharing is to offer a legitimate service that is comparably better at a price that makes it worth spending the money to avoid the pain and risks involved when hunting for illegal copies.
• One of the major challenges for the future of digital entertainment is how to monetise the entertainment. With near-infinite channel options and digital delivery users can very easily screen out or delete commercials. Current thoughts are that the personalisation of distribution will be so well matched that users will want to view commercials or the commercials themselves will not be perceived as commercials. Imagine the implications if a user watching a prime time show could simply click on Carrie’s shoes and a pop up will spring to life allowing the user to instantly purchase them. Now that’s product placement.
• The long tail effect will be very prominent in tomorrow’s entertainment world. Television will be tightly niched to millions of little markets as the ability to customise and personalise entertainment will be unparralled. Every industry, hobby or topic that can sustain a market will have a place in the digital entertainment network. Social networking will allow individuals to very accurately find what other people with the same interests are viewing. Poker fans can view what other poker fans enjoyed by simply viewing the top 10 most watched shows by poker players.
South Korea and Japan are already enjoying digital TV on the go using tiny monitors on the latest cell phones and in cars with content broadcast via satellite. The technology called DMB – digital multimedia broadcasting – has started catching on especially with the youth market

The future

Life is all about differentiation and integration. These two are cyclical in nature i.e. one followed by the other and they can be seen in every walk of life. Even in businesses we can see consolidation happening. For instance most of the TATA subsidiaries were diverse in nature and functioned separately however they have been brought under one umbrella of TATA Group. Convergence is in nature. Even the expanding big stars finally condense into a black hole.

Imagine a place without books, photographs, movies, televisions, stereo systems, letters, post cards, billboards, telephones, and fax machines. That place is not Europe in the Dark Ages but the world that most people in the twenty-first century will inhabit. In lieu of the media that we now take for granted there will be the one great digital medium that replaces the current Internet. The process by which all these separate media become digital and come to be delivered via the global network is known as digital convergence. 

Digital Convergence is the priming of underlying digital technology components and features such as voice, texts, video, pictures, broadcasts, presentation, streaming media, global connectivity and personalized services; the combination of all of these features and abilities from multiple electronic systems into a simplified, converged and computer-mediated communication system to enable individuals interact, play, communicate, collaborate and share information in many new and different ways.” 

Digital convergence will have a monumental effect on the business industry. And businesses that are able to keep up with the changes will fair well. Costly business trips that now include airfare, hotel fees, and meal expenses, will become a thing of the past as a walk down the hall to a conference room will serve the same purpose. Paper media such as books and magazines, will become objects of art.Communication over great distances will take place instantaneously. And cash in your wallet will be considered eccentric as most financial transactions will occur with the push of a button.

 As a part of our MIS (Management Information System) project, we have undertaken to understand and explore the various dimensions of the rise of digital convergence, find its importance in respect to adding value to the business evolution and human development and probe the future of this technology as a means of information sharing. Various factors seem to be adding continuous strength to the expansion of digital convergence. The replacement of the analog medium to digital and the fact that digital materials can be reproduced at any resolution (assuming that one has the storage space and the bandwidth), the introduction of new medium of digital transmission via fibre optics and huge reduction in digital storage and transmission prices are some of the factors which make digital convergence the future of almost everything.

As a part of our project, we will be citing references available of websites, blogs, and online newspaper journals. We will also be looking into the present implementation of digital convergence by analyzing the pros and cons of the new products like VOIP (Voice Over IP) etc which are a product of this technology. Being the end user for some of such products, we will be detailing our experiences and expectations from this new technology.