Harnessing today’s forces to shape the marketplace of tomorrow

Industry convergence – the collaboration between previously distinct industries to create new, innovative products and services – will transform the future. And it shouldn’t be viewed as a fad or a source of turbulence, but rather as a catalyst for progress.

“In nature nothing is created, nothing is lost, everything changes.”

― Antoine Lavoisier, Chemist.

Convergence brings together the best of different industries to deliver new value. Much like how a glassblower combines sand, soda ash and fire with dyes to create beautiful new forms, in the corporate world it’s the combination of technology, digitization and consumer behavior that are fundamentally shifting how we think about industry. This convergence is recasting relationships up and down the value chain, with the power to transform industries and in some cases, create whole new ones. The impact reaches beyond new business models and ultimately touches the lives of consumers across the world.

For most companies, new tools like automation, analytics and machine learning are dictating business decisions and strategy, contributing to a fundamental shift in not just what business is being done – but also how business is being done. For example, in the consumer products and retail space, we are seeing how AI and analytics are redefining how we, as consumers, will shop versus buy in the future. In the life sciences and health industry, technology providers are disrupting how healthcare is delivered and empowering consumers with the availability of their own health data. Even in our cities, government leaders need to work with the private sector in many industries to develop smart solutions that will help us move around and live in ever-growing urban environments.

The digital revolution over the last 25 years is just the tip of the iceberg. The convergence it enables has barely taken root in some industries, but it will reshape as many businesses and job roles as the advent of electricity in the late 19th Century.

Convergence with purpose

Decisions made by the leaders of today will help shape the quality of life for generations ahead and leaders need to be mindful of the implications through purposeful thinking as they develop new solutions.

At our annual Innovation Realized retreat last month, leaders of many leading companies gathered to discuss the ways in which industries are being reshaped. We talked about the role of business, as well as the importance of purpose, and were joined by Yuval Noah Harari - who reminded us about the importance of business leadership in shaping tomorrow.

Disruption brings challenges that are unique and often difficult to identify before secondary effects start to manifest. For industrial revolutions past, critical issues that emerged a hundred years later include air and water pollution, depletion of natural resources and urbanization. The quandaries of the future cannot be fully defined – but they are becoming clearer.

Many of the critical skills, innovation and ability to make change happen are in the world of business, engineering and science. At the same time, disruption is making obsolete some workplace roles which might exacerbate social conditions which government and public sector stakeholders work to avoid. The future of work will have to address both public and private sector policies and practices that mitigate the downside of innovation.

The rebalancing of communications, payments, information technology and privacy are equally as important and business leaders will need to consider and plan for the impact that these will bring.

Today’s digital wave is inevitably creating privacy and data security challenges across sector lines that are difficult to identify - and could be just as messy or costly to clean up as any Superfund site. By 2021, the cost of online breaches is expected to double from 2015, to more than $6 trillion.

Privacy and security are essential elements of the future. Needs are always subject to change, and companies that fail to adapt to the expectations of their broadest group of stakeholders will jeopardize hard-earned trust and relationships in the process.

Purposeful thinking will help integrate convergence meaningfully into society – but building a dialogue is the first step in this process.

We are excited to continue this dialogue at VivaTech, the world’s rendezvous for startups, entrepreneurs and leaders to challenge the role of entrepreneurs next week. And in mid-June, we will further the conversation at World Entrepreneur of the Year where EY will host workshops on the future of cities, consumer and health and determine how converging industries will create the marketplaces of the future. We will reimagine the web of networks that reshape the industries of today.

You can join the conversation on social media by following us at #ConvergenceLab, #VivaTech and #WEOY.