Abstract
When technologies converge, entire industry sectors are likely to do the same. In order for such transitions to succeed, not only are novel products and services needed, so too is the design of appropriate business models. In this context, it is particularly important from a firm’s perspective to critically question any affiliation to a particular industry. Instead, the business model should become the focus of innovation activities. Using a structured approach, managers can analyze their existing business model with respect to a converging industry sector early on, in order to be able to adapt it well in time to newly emerging market conditions.
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Notes
- 1.
In this chapter, we define technological convergence as the growing together of previously distinct domains of technological knowledge. Similarly, we chose to define industry convergence as the resulting erosion of boundaries that demarcate previously distinct industry sectors.
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Triple play denotes the combined service offering of broadband Internet, Internet telephony, and cable TV within the same subscription.
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Appendices
Exam Questions
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1.
What is key claim of this article?
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2.
When industries converge, why do existing management tools fall short? Why is the convergence phenomenon problematic from a strategy and innovation point of view?
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3.
Why does the business model represent a more suitable framework for anticipating and creating opportunities in a converging environment?
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4.
List some examples for ongoing or emerging convergence trends between technologies or entire industries.
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5.
For what purpose do the authors suggest the three business model archetypes?
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6.
Describe the key characteristics of each of the three archetypes: brokering between industries, opening up the ecosystem, and attacking head-on.
Reflexive Questions
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1.
In this article the authors propose a stepwise decision tree, resulting in the choice of one of three archetypes. Why do you think the archetypes come in this particular order, rather than another one?
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2.
What is our current understanding of an industry based on? Discuss how we traditionally define an industry, and what such definitions entail for strategy making and innovation management.
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3.
What would be the implications of defining an industry context on the basis of business model similarity? Discuss the advantages and disadvantages of such an approach.
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4.
Why does technological convergence represent a particular case of technological discontinuity? Or does it? Discuss similarities and potential differences to existing innovation theory.
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Hacklin, F., Klang, D., Baschera, P. (2013). Managing the Convergence of Industries: Archetypes for Successful Business Models. In: Diehl, S., Karmasin, M. (eds) Media and Convergence Management. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-36163-0_3
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DOI: https://doi.org/10.1007/978-3-642-36163-0_3
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