Convergence Impact On Strategic Management In Innovation Economy

The motivation behind this research is to understand the transformation of economy from Industrial to Innovation. In the new global-networked and Innovation Economy; technological innovations, new competitive landscape of firms and the new converged telecom landscape have a significant impact in changing the traditional strategic mindset of the firms and institutions. However, exploring new strategic mindset in Innovation Economy by identifying the opportunities and threats to the current strategic management in general and analyzing the impact of convergence; convergence of networks, convergence of information and convergence of media, for defining the new converged Telecom landscape in specific, are the focuses of this dissertation.An area of this research; transformation of economies and the identification of new strategic mindset have been selected because in the recent time, leapfrogging instead of improving the direct competitive strategies for sustainable growth has become the popular trend among most of the companies, particularly in the Information and Communication businesses. For a sustainable competitive advantage, a firm needs to be innovative and innovation is not simply the development of new products and services but in many cases innovation of ideas, business models, processes and even the strategic mindset, all can change the business rules & games and can help the firms to improve its competitiveness. The Innovative strategies alone, without changes to either the underlying technologies or the products and services sold to customers, drive the success of many companies.This research reviews the relevant literature about Innovation Economy, Innovation Economics Doctrine, its relationship with Neoclassical and Neo-Keynesian Economics Doctrines, key factors of transformation from Industrial to Value-based Innovation Economy, evolution of Business Models and evolution of Strategic Management. The secondary literature about Strategic Innovation, new game strategies for sustainable competitive advantage and the strategic analysis framework required in the new and rapidly changing competitive landscape of firms have also been explored. After this theoretical research, a comparative analysis of the impact of Convergence; convergence of networks (All-IP), convergence of information (All-IT) and convergence of media (All-wireless) on the strategic management has been identified. As Convergence has blurred the industry and firm boundaries along with the revolution in Business Models, Strategic Mindset and the Value Chains of the businesses, therefore in this research Convergence has been analyzed from all the different possible perspectives. PTCL Broadband strategic analysis through a newly defined AVAV Framework has been selected as a short case study to augment this veracity that convergence demands a new strategic mindset and strategic analysis framework. This research "Convergence Impact on Strategic Management in Innovation Economy" provides the ground work for the verdict of Business Models Innovation in the new ICT world and the future continuation of this research work.This dissertation not only identifies that the current strategic management about convergence is inadequate but also proposes reforms for all the three types of convergence i.e. networks, information and media. It concludes that convergence will define the new converged Telecom landscape which will be mainly controlled by four forces; technological innovations, strategic mindset of the firms, re-regulation of the industry and collaboration between the firms & institutions. Re-regulation has been justified for creating new business opportunities and overcoming the current and future challenges in which the firms will focus more on collaboration rather competition. A concept of co-opetitors has been introduced in which the firms will simultaneously cooperate and compete for the sustainability in the new global-networked and Innovation Economy.