A global research project by Altimeter and Autodesk (NASDAQ: ADSK) revealed that digitally mature companies are embracing the next wave of digital disruption known as convergence. Innovative practices such as virtual communications, personalized digital engagement, immersive modelling, rapid prototyping, and efficient collaboration are now mainstream due to an accelerated need brought on by the COVID-19 pandemic.
The research, which surveyed 749 leaders from companies in the US, UK, Germany, France, Japan and China across Architecture, Engineering & Construction, (AEC), Design & Manufacturing (D&M) and Media & Entertainment (M&E) industries, found that disruptions caused by the pandemic has created two classes of companies:
Convergence is the blending of previously separate technologies, processes, and data to create new combinations of products, services, and experiences that reshape industry processes and structures. Most businesses today recognize convergence as a trend that will impact them in some form. This research found that 58 percent of respondents have either given thought to convergence or acknowledge it is one of the most critical parts of their business. A key takeaway from the research reveals that digital maturity is a strong predictor of how much a company believes it will be impacted by convergence.
To determine how digitally mature a company is, respondents were asked to self-select one of the following stages to define their business:
Fifty-nine percent of companies with the highest digital maturity (Stage 5) said convergence was one of the most critical influences on their business. As the levels of maturity decrease, so does recognition of convergence as a disruptive trend. This makes sense, as companies that are less digitally mature are playing catch-up, struggling to implement practices and innovations that are the milestones of digital transformation.
Figure 1: Higher Digital Maturity Stages Are More Likely to See Convergence as a Critical Influence
Chart Subtitle: Percent Who Selected “Convergence is one of the most critical influences on my business”
This does not mean, however, that less-mature companies should wait until they reach later stages of digital maturity to think about and prepare for convergence. In fact, to reach Stage 5 and reap the rewards of convergence, the foundation for convergence needs to be built as early as possible.
The first step toward building a digital transformation foundation is understanding all the ways convergence is taking place and identify the categories that will have the most impact on the business.
The research revealed four levels of convergence:
By creating convergence levels, we can chart the impact each type of convergence has, and how it varies by industry.
Figure 2: Technology and Process Convergence Have the Greatest Impact on Industry
While the benefits of convergence may seem apparent at every stage of digital maturity, many companies face challenges in implementing the steps they need to take in order to fully realize these benefits. Some of the top challenges included:
“Understanding convergence and making it work for your organization is an under-leveraged competitive advantage,” said Alexander Stern, Technology Strategist at Autodesk. “Process, data, and technology convergence impacts most the internal workings of a company. It’s industry convergence – driven by external forces – where the magic happens. This is when previously disparate industries, or industries that operate in parallel, find ways to collaborate for mutual benefit. This collaboration can take many forms, including partnerships, transactional relationships, or simply shared resources.”
“By assessing their digital maturity, and top investment priorities, companies can use this data to benchmark themselves and chart a roadmap for transformation,” said Charlene Li, Founder and Senior Fellow at Altimeter. “Doing so can effectively enable businesses to prepare for any type of digital disruption, and even thrive because of it.”
For more information and to download a copy of the report, visit: http://www.autodesk.ae/campaigns/discover-convergence