Industry convergence is the code that the world’s most successful companies have all cracked. Any legacy company that wants to remain relevant in a digital world needs to have their eye on this mega-trend.
Horizon One (H1) of digital transformation is the first digital transformation phase. Businesses look towards this horizon when reinventing themselves around internal efficiency. Once companies can compete on cost, they set their eyes on horizon two (H2), to focus on customer experience, leveraging customerinsight to spot opportunities in adjacent markets or segments. Whereas H1 andH2 keep you competing in your industry, horizon three (H3) – a.k.a Industryconvergence offers two transformational opportunities:
Apple, Amazon, Alphabet, Facebook and Microsoft are the top S&P 500 companies not only because they are tech companies, but because they have successfully risen to meet the three horizons. They have built upon a solid digital core, with a deep understanding of customers to ultimately become industry-less, where they can grow customer, product and service bases without industry ceilings.