CONVERGENCES AND ITS

CAUSES
CONVERGENCE
DEFINITION : 3 APPROACHES
 3 APPROACHES OF CONVERGENCE

1 . CONVERGENCE OF 1. Information
DELIVERING superhighway
PLATFORMS 2. Audiences in digital
transmission
For communication technologies are the
sectors / network PRIME DRIVER of
focused definition CHANGE
3. Diff. messages are in
digital format
(information are
transported &
processed
 3 APPROACHES OF CONVERGENCE

2. CONVERGENCE 1. Combines the

AS LEADING TO functions of
UNIVERSAL converging sectors
CONVERGENCE 2. Combines distinct
DEVICE products that
employ digital
PRODUCT & SERVICE technology
FOCUSED DEFINITION
E.g. TV employing the
functions of
telephone and
 3 APPROACHES OF CONVERGENCE

3. CONVERGENCE 1. TECHNOLOGY
OF INDUSTRIES DRIVEN focusing on
Content, Computing,
& Communication
SECTOR –
industries into a
FOCUSED
DEFINITION
“NEW MEDIA &
COMMUNICATION
Model” (the 3-Cs
Model).
 3 APPROACHES OF CONVERGENCE
INFORMATION
3. CONVERGENCE 1. TECHNOLOGY DRIVEN
TECHNOLOGY
OF INDUSTRIES focusing on
MEDIA 2. Content, Computing,
SECTOR – & Communication
FOCUSED industries into a “NEW
DEFINITION MEDIA &
BROADCAST AND
COMMUNICATION
TELECOMMUNICATION
Model” (the 3-Cs
DISTRIBUTION
Model).
(CANDUIT)
 3 APPROACHES OF CONVERGENCE
INFORMATION
3. COMPANIES1. ACQUIRE OR
CONVERGENCE TECHNOLOGY DRIVEN
TECHNOLOGY
OF INDUSTRIES focusing on
ALLY WITH OTHER FIRMS
MEDIA 2. Content, Computing,
SECTOROR– START WITH NEW
& Communication
industries into a “NEW
FOCUSEDONES
DEFINITION
= CORPORATE
MEDIA &
BROADCAST AND
CONVERGENCE
COMMUNICATION
TELECOMMUNICATION
Model” (the 3-Cs
DISTRIBUTION
Model).
(CANDUIT)
STAGES OF CONVERGENCE

◻ Happen within
market segments
STAGE 1 or within sectors
e.g. Between Fixed
lines (PLDT) and
mobile
technology
operators
STAGES OF CONVERGENCE

◻ Structural
Barriers should
STAGE 2 disappear
◻ Mobile phones

capable of
receiving TV
programs
STAGES OF CONVERGENCE

◻ Applications are
developed to
STAGE 3 require or
ensure success
◻ E.g. facebook,

YouTube
CAUSES OF CONVERGENCE
 CAUSES OF CONVERGENCE
1. 1. Content is a combination
The internet and of the elements of
the World Wide communication,
Web information, &
entertainment.
- Hybrid between a 2. The new mass media
between the a platform
broadcast and the
point-to-point medium 3. Instant global
distribution
4. Allows traditional media
to be distributed in new
ways.
 CAUSES OF CONVERGENCE
2. ◻ IMPLICATION
1. Content
Digitization of becomes
information PLATFORM
Information AGNOSTIC,
- Information is flow “LIQUID
reduced into
binary form
anywhere ASSET ”
(manipulated and (Wolf,1999)
stored)
 CAUSES OF CONVERGENCE
2. ◻ IMPLICATION
2. Customize
Digitization of content to
information match
individual
- Information is reduced tastes
into
- distribution of
binary form (manipulated
and stored) identical
messages to
many
recipients
 CAUSES OF CONVERGENCE
2. ◻ IMPLICATION
3. Creation of “rich
Digitization of media
information products”
- products combine
- Information is reduced many
into
different
binary form (manipulated
and stored) types of
content
simultaneousl
y
 CAUSES OF CONVERGENCE

3. ◻ MOORE’S LAW
◻ “CONSTANT
Computing Power
IMPROVEMENT
- Faster, cheaper,
LEADS TO
ubiquitous FALLING
PRICES”
 CAUSES OF CONVERGENCE

4. ◻ The speed
(phone
Dramatic Increases
networks)
in bandwidth
capacity increases
rapidly while
prices are falling
CAUSES OF CONVERGENCE
ALLOWS ALLOWS
5. EXCHANGE OF ◻Open Standards
INCREASE OF
DATA BETWEEN USERS
MEMEBERS OF
Standardization of
- Ensure
CONNECTED TO A
THE NETWORK NETWORK
network compatibility
architecture
PEOPLE CAN between
CONNECT TO ALLOWS LOWER
ANYBODY ELSE devices
COMMUNICATION
WITH ZERO COST PROCESS COSTS
CAUSES OF CONVERGENCE
MORE
NETWORKS
6. ◻ Development
e.g. Telephone communications,
of new media
mass media transmissions and
platforms –
Networked BETTER
computer data exchanges
NETWORKS high-speed &
openCOMBINE to CREATE an
electronic open media
integrated, interconnected
MORE
communicatio
platformssystems for GLOBAL DEVICES
nsCONNECTED
network.
communication/infrastructure
 CAUSES OF CONVERGENCE
The more people
who use a particular
7. ◻ New
software, mobile
technologies
phone network,
METCALFE’S LAW areetc.,
valuable
the more
AND NETWORK valuable
ONLY if it becomes,
people
EXTERNALITIES the
usemore
themnew users
it will attract, the
(EFFECTS) more it will be
improved, and so
on….
 CAUSES OF CONVERGENCE

8. Deregulation
8E
◻ Emerging market
structures have
posted uncertainty to
regulatory bodies
- Challenged to design a
regulatory structure
for the emergent
media and
communications
sector.
 CAUSES OF CONVERGENCE

9.
8
◻ Emergence of global
GLOBALIZATION markets
- Represents:
1. the development of
media and
communication
industries
2. Highly competitive
environment
3. Development and
adoption of digital
technology
CONCLUSION
◻ Managers must continue to manage, at the same
time design strategies to ensure that organizations
make the transition from a classic to a digital
environment.
◻ Identify the structures, competencies, processes,
and cultural characteristics that will determine
success in a digital environment and a sustainable
long-term successful performance
◻ Determine which of the “old” rules of the game
still APPLY and which will be USURPED by new
concepts.