Convergence Trends Driving the Future

Krishna Srinivasan

Global President and Managing PartnerFrost & Sullivan

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What is Convergence?

Convergence is defined as the integration of current products, technologies and industries that will lead to the emergence of new, innovative and unique industries, products, technologies and competition in the future.

Photo Credits; SBC Technologies

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There are 4 Types of Convergence

INDUSTRIES

PRODUCTS

Car Unmanned Technology Autonomous Cars

TECHNOLOGIES

Building Technologies Smart Automation Smart Home Hubs

Space Industry Solar Industry Space Based Solar Power

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3

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Source: Frost & Sullivan analysis, 2012Image Source:: `Creative Commons and Dreamstime.

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Convergence of Competition: Example from Smart CityIndustry

Convergence of Competition, Global, 2012–2025

IT Participants

Energy and InfrastructureParticipants

Automation and Building Control Participants

Security

Telecom Participants

SAP

HP

ST Electronics

Oracle

Google

Microsoft

Alcatel-Lucent

IBM

Cisco Senergy

Eaton

ALSTOM Grid

Siemens AG

General Electric

ABB

Honeywell

Rockwell Automation

Johnson Controls

Schneider Electric

Verizon

O2

Deutsche Telekom

Ericsson

AT&T

Serco

SymantecTyco

Point of Convergence

Securitas

Source: Frost & Sullivan

COMPETITION4

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Case Studies and Examples of Convergence

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Case Study: Convergence of Products Across Industries

A B

C D

3D Printing: Eg Bio PrintingNanobots (Drug Delivery, Cell Repair and Surgery)

Connected Car Smart Meters

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Case Study: BMW New Electric Vehicle Brand - BMW i3 and i8 Megacity Vehicles

Autonomous Parking Assistance

Traffic Jam AssistanceRange Assist

Pro-active Collision Warning

Pure Electric, Zero Emission

Voice Recognition

Panoramic Roof

Carbon Fibre Reinforced Plastic

Plug In Hybrid, 1.5L 3 Cylinder Gasoline, 66 g/km

Aluminium Chassis

BMW i3 Electric City Car

BMW i8 Plug In Hybrid Sports Car

Smartphone App based remote vehicle management (in-house app development)

Rapid Charging

Opening up iDrive API to third party app developers

Investment in app companies that provide mobility related apps

Multimodal Transport & EV related app – includes dynamic intermodal transport planning

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Case Study: Convergence of Technologies: Interactive Gaming (Kinect Console) + MRI Scans in Sunnybrook Hospital, Toronto

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CustomerFocus

Professional

Consumer

Industry FocusInformation

CommunicationTechnologies

Healthcare

Traditional Healthcare and Telemedicine

Consumer/Non-healthcareApproaching Telehealth

Core Telehealth

Telehealth Industry: Telehealth Markets (North America), 2012

HIE

Cloud Infrastructure

Activity Monitoring

Patient Portals

Fitness Apps

Retail Telehealth

Wellness Programs

Texting Services Medication Management

Tele-ImagingDistance

Learning/Simulation

EHR

Professional AppsHome and DM

Monitoring

Remote Cardiac Services

PERS

Video Consultation

Wellness Apps

Diabetes Management

Remote Specialist Services

Top five markets are in brown text boxes. Source: Frost & Sullivan analysis.

Convergence of IT and Healthcare: Telehealth

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Impact of Connectivity and Convergence - “Virtual Nirvana” Shorter Product Development Cycles

Digital Automotive Factory (VW Example)

Bio Simulation in Healthcare Can Save $200 to 300 million

in drug development

Upto 24 to 30 months before SOP today for Auto Industry (from 6 to 8 years in the 1970s).

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THANK YOU!

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Convergence Workshop Protocol

Step 1: Establish the basis of convergence and the

convergence point

- by product, industry, technology or competition, or a

combination of the above

Step 2: Define the growth opportunity arising from convergence

- In 3 to 4 bullet points

Step 3: Estimate the “Size of the Prize” for the opportunity

- $Millions - One Sector in One Region

- $Billions - Multiple Sectors OR Multiple Regions

- $Trillions - Multiple Sectors AND Multiple Regions