The right opportunity at the right time

Digital convergence is everywhere, and there is perhaps no better evidence of this than those white headphone wires dangling from the ears of millions of consumers. The iPod is a ready example of how technical innovation can bring together formerly discrete products and services—in this case the stereo, the TV, the computer, and the Walkman®—in a way that transforms the way people use them.

But the iPod is important for another reason: it has acted catalytically on Apple’s computer sales. The company announced in November that it has converted one million former PC users to Macs in the first three quarters of 2005, and investment analysts say the movement is a direct function of explosive iPod sales.

That said, there are myriad opportunities for companies of all sorts to profit from convergence, but not all opportunities are created equal, and identifying the right ones at the right time requires skills many companies do not possess. Three prominent industries—banking, pharmaceuticals and telecommunications—are learning this the hard way.