Research reveals that digitally mature companies are preparing for the next wave of the digital revolution

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Dubai, UAE, October 27, 2021: A global research project by Altimeter and Autodesk has revealed that digitally mature companies are embracing the next wave of digital revolution known as convergence. Innovative practices such as virtual communications, personalized digital engagement, immersive modeling, rapid prototyping, and efficient collaboration are now mainstream due to an accelerating need caused by the COVID-19 pandemic.

The research, which interviewed 749 leaders of companies from the United States, United Kingdom, Germany, France, Japan and China in the fields of architecture, engineering and construction (AEC), design and manufacturing (D&M) and media and entertainment (M&E), found that the disruptions caused by the pandemic created two classes of companies:

The former, at a low level of digital maturity, has struggled to implement these innovative practices and is still catching up. The second, at higher levels of digital maturity, had already implemented the latest innovative practices and thrived. This group is prepared for the next wave of the digital revolution, a practice known as convergence.

Convergence is the merging of previously separated technologies, processes and data to create new combinations of products, services and experiences that reshape industry processes and structures. Most companies today recognize convergence as a trend that will impact them in some way. This research found that 58% of respondents have thought about convergence or recognized that it is one of the most critical parts of their business. A key point of the research reveals that digital maturity is a strong indicator of how much a company believes it will be impacted by convergence.

To determine how digitally mature a company is, respondents were asked to independently select one of the following steps to define their business:

Phase 0: “Digital transformation is not a priority for us, nor do we expect it to become one in the short term”. Phase 1: “We have just started building a business case for digital transformation.” Phase 2: “We’re starting to understand customer journeys, improving digital skills, mapping processes and seeing early traction.” Phase 3: “We have begun to digitize our operations on a large scale, but the modernization of platforms and processes takes place on a departmental basis.” Phase 4: “We have digitized operations and are now focusing on integrating them so that data can be used more strategically within the organization.” Phase 5: “We have laid a solid digital foundation and are now focusing on using data and AI to optimize processes; products and services; and customer experiences “.

59% of companies with the highest digital maturity (Phase 5) said convergence was one of the most critical influences on their business. As levels of maturity decrease, the recognition of convergence as a disruptive trend also decreases. This makes sense, as less digitally mature companies are catching up, struggling to implement practices and innovations that are the cornerstones of digital transformation.

This does not mean, however, that less mature companies have to wait until they reach the next stages of digital maturity to think and prepare for convergence. Indeed, to reach Phase 5 and reap the rewards of convergence, the foundation for convergence needs to be laid as soon as possible.

The first step towards creating a foundation for digital transformation is to understand all the ways in which convergence is occurring and to identify the categories that will have the greatest impact on the business.

The research revealed four levels of convergence:

Process Convergence: Previously discrete processes and workflows are now linked across companies for greater efficiency and integrated goals. Technological convergence: Technologies such as Cloud, IoT, AI, Supply Chain Management, Augmented and Virtual Reality are converging to create new use cases and solutions. Data / Information Convergence: Previously siled data / information is now more accessible and is used across businesses and the industry to power a range of new products and services. Sector convergence: Previously distinct sectors are becoming more similar and connected, creating new opportunities for value creation.

While the benefits of convergence may seem evident at every stage of digital maturity, many companies face challenges in implementing the steps needed to fully realize these benefits. Some of the main challenges included:

Culture – Resistance to change is a problem in many companies, especially large ones with legacy systems and practices. Data for machine learning: Many innovative processes brought about by convergence are made possible thanks to the power of artificial intelligence. Although AI can be a powerful technology that creates high efficiency, there is a risk of implementing it incorrectly. Feeding AI engines with outdated or distorted data can create a snowball effect of the machine continually learning and doing the wrong thing. Designing for Convergence: Convergence requires designers and project planners to have far more expansive, visionary, and disciplined thinking than they have in the past. This requires training, familiarity and the use of tools that help facilitate this type of thinking. Hiring the right skills – As with any other innovation, hiring people with the right skills to thrive on convergence is challenging, especially as they’re scarce and in high demand at the start of the disruption curve.

“Understanding convergence and making it work for your organization is an under-exploited competitive advantage,” said Alexander Stern, Autodesk Technology Strategist. “The convergence of processes, data and technology has a greater impact on the internal functioning of a company. It is the convergence of the sector, driven by external forces, where the magic happens. This is when previously disparate industries, or industries operating in parallel, find ways to collaborate for mutual benefit. This collaboration can take many forms, including partnerships, transactional relationships or simply shared resources ”.

“By assessing their digital maturity and key investment priorities, companies can use this data to compare themselves and map out a transformation roadmap,” said Charlene Li, Altimeter Founder and Senior Fellow. “Doing so can actually enable companies to prepare for any kind of digital disruption and even thrive as a result of it.”

For more information and to download a copy of the report, please visit: http://www.autodesk.ae/campaigns/discover-convergence

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