By Leonardo Delizo, PhD, MSBA
Service providers redefine themselves around convergence even as convergence resists definition.
Convergence is a complex and somewhat mythical subject. At the end of the 1970s, telematics promised to embrace telephone, television and data. In the 1980s, information technology held much the same promise. More recently, the debate has intensified with the explosion of the internet and mobile communications. These days people talk about fixed mobile convergence, voice data convergence and so on.
Rapid change in customer needs and increasing diversification among service providers are the two forces redefining today’s market. Each service provider is defining and moving towards its own vision of the future, built on its own set of advantages, as drawn from its current customer base, infrastructure and core competencies.
Moreover, the influence of converging technologies continues to be evident both in the increasingly intelligent character of terminals, switches and networks and in the emergence of new or updated forms of telecommunications service. Falling costs of fiber optic cables and for connection equipment mean that narrowband Integrated Services Digital Network (ISDN), already a reality in many parts of the world, faces the prospect of competition from broadband transmission with, for example, voice, data and high definition television available through the same cable.
In addition, the rise of Frame Relay, Asynchronous Transfer Mode (ATM), and Internet Protocol (IP) networks is putting the power of convergence within reach for a growing number of companies. Yet many organizations can not link all of the locations throughout their enterprise using only a single wide area infrastructure. Frame Relay, ATM, and IP are not ubiquitous, and global enterprises are forced by necessity to deploy networks built solely on the public switched telephone network.
The convergence challenge becomes carrying any communications traffic over any wide area infrastructure.
Clearly, the giant leaps in computing power and the swift improvements in telecommunications pose a threat to market leaders who fail to understand the implications of new technologies for their business as well as offer opportunity to those who are able to grasp how technology can be used to rewrite the rules of competition.
It is clear that service providers see economics such as cost efficiencies, operational efficiencies, new service capabilities, networking infrastructure, diversity of services, network-based applications and computing issues as an important driver of convergence.
Jenkins elaborated the five processes of convergence: technological, economical, social or organic, and global convergence.
Technological convergence involves three ways or phases to look at: (1) the delivery of multiple services (ex. Local, long-distance, international, data, Internet and wire-less services) from one service provider in one service package using Voice and Telephony over Asynchronous Transfer Mode (VTOA), Voice Over Internet Protocol VOIP), and Voice Over Frame Relay (VoFR); decreased costs through consolidation of facilities; multi media applications enabled; internetworking between voice and datanetworks; (2) the consolidation of existing networks and systems into one common service infrastructure. Advanced intelligent networking are full quality of service in packet and cellnetworks or integrating the networks of fixed lines, mobile and cable TV and migrating these combined networks from a traditional circuit switched to an internet-ready packet switch platforms, advanced traffic management and signaling enhancements, and multiple network services; (3) the confluence of the previously distinct markets and services of carriers, Internet services providers (ISPs), cable operators, systems integrators and vendors of computer software and hardware. Fully converged IP network also means any to any connectivity and high quality voice over LAN and WANS. Developing partnerships and agreements with other companies are needed for the delivery of content.
Economic Convergence. The horizontal integration of the entertainment and telecommunications industry is an example of economic convergence. A company like AOL Time Warner now controls interests in film, television, books, games, the Web, music, real estate and countless other sectors. The result has been the restructuring of cultural production around “synergies,” and thus the transmedia exploitation of branded properties—Pokemon, Harry Potter, Tomb Raider, Star Wars.
Social or oganic convergence. Consumers’ multitasking strategies for navigating the new information environment lead to social or organic convergence. Organic convergence is what occurs when a high schooler is watching baseball on a big-screen television, listening to techno on the stereo, word-processing a paper and writing e-mail to his friends. It may occur inside or outside the box, but ultimately, it occurs within the user’s cranium.
Cultural convergence. The explosion of new forms of creativity at the intersections of various media technologies, industries and consumers results to cultural convergence. Media and telecommunications convergence fosters a new participatory folk culture by giving average people the tools to archive, annotate, appropriate and recirculate content. Shrewd companies tap this culture to foster consumer loyalty and generate low-cost content. Media convergence also encourages transmedia storytelling, the development of content across multiple channels. As producers more fully exploit organic convergence, storytellers will use each channel to communicate different kinds and levels of narrative information, using each medium to do what it does best.
Global convergence. Global convergence is the cultural hybridity that results from the international circulation of media and telecommunications content. In music, the world-music movement produces some of the most interesting contemporary sounds, and in cinema, the global circulation of Asian popular cinema profoundly shapes Hollywood entertainment. These new forms reflect the experience of being a citizen of the “global village.”
These citations are very much related to the study that give ideas to have better understanding about convergence contributing more developments in the country. Today, convergence is sparking a range of social, political, economic and legal disputes because of the conflicting goals of consumers, producers and gatekeepers. These contradictory forces are pushing both toward cultural diversity and toward homogenization, toward commercialization and toward grassroots cultural production.
The research evaluated the perceived contributions of convergence of telephone line services to countryside and industrial development; the influencing factors for the implementation of power of convergence; the strategic management approaches, tools/technologies, products and services and their extent of effectiveness; and the technologies used.
The leading perceived contributions of convergence were that it opens a flood gate of information, provides unified messaging, and converts everything recorded by humanity.
Technology, communication, and customers were the major influencing factors regarded in the implementation of power of convergence in the telephone line services. The great majority gave emphasis more on the mission and vision statement in positioning as the most preferred full-service telecommunications provider.
The strategic management approaches stemmed from the global management perspective on change, automation, and business processes redesigned and implemented. The overall performance of the telephone line services was rated as effective or satisfactory. Because of the ambition of most business establishments to become world-class market leaders, they use the convergence and re-engineering programs in order to improve service and increase production quantity.
The technologies regarded in the convergence program were the criteria on appropriateness of technology; and the strengths, weaknesses, opportunities and threats to the end-users and to the companies.
Based on the findings and conclusions, the following recommendations are offered:
1. To succeed and expand in this age of keen competition, the service providers and other business establishments need to adopt the concept of convergence and re-engineering program. In implementing these programs, management must see to it that the economic and health status of the employees are not affected or will not lead to retrenchment. Applications of convergence and re-engineering will vary from company to company and industry to industry. In redesigning processes the top management may combine several jobs, empower employees, make steps in natural order, make processes in multiple forms, perform work it makes sense, reduce checks and controls, make a simple or centralize customer service. Convergence requires that the organization go through six transformations: refocusing on customer-defined value, demanding responsiveness from the top and deliver it from the front line, enabling front-line employees to respond to customer needs, creating and maintaining cross-organizational teamwork, continuing analyzing and improving performance, and allowing employee discretion within a well-defined set of parameters.
2. Telecommunication industries and other service providers must see to it that they give equal attention to some criteria in assessing an appropriate technology to be adopted. The following criteria include meeting competitive requirements and consumer demands; improving the viability or profitability of business, safety and environment arising from operation; and figuring out the feasibility of the use of local resources. The criteria in assessing an appropriate technology are very important. Study before implementing the technology to be adopted in order to free from damages to economic and health status, for instance retrenchment. In addition, adopting new technology requires an in-depth assessment of current technology transfer policies, structures and practices; criteria for appropriate technology transfer; and areas of conflict in technology transfer. In order to resolve conflicts before the integration of new technology it is important to consider the nine values declared on the New World Information and Communication Order (NWICO). These nine values are plurality, diversity, access, participation, interaction, cultural integrity, autonomy, responsibility, and empathy.
3. Telephone line services and other industries that implement convergence and re-engineering program need to carefully scrutinize the processes automated and redesigned in the different departments without a significant manual function or any human intervention. A process may be redesigned or automated if only an employee will be benefited but the entire company may be redesigned in order to save time, space, material, equipment and human efforts.
4. Telephone line services and other companies currently automating, its business processes may be consider the following factors:
a. Compatibility of automation with the variety of systems operating business conducted by companies, compatibility with the system of other service providers and compatibility over time.
b. Initial cost, cost of installation, and cost of maintenance of office machines and equipment.
c. Flexibility and capacity of the machines and equipment. If the machine being considered can be use effectively for many types of work in the office such a factor among others should weigh heavily in favor of its selection. It is important that the machine capacity be sufficient to permit efficient operations.
d. Product obsolescence. There is a wide range of machines available but technology is continuously developing new and different types of machines and equipment.
The cost of automated office hardware is higher than the equipment it replaces. Office automation may also disrupt traditional office work sales and work environments and impair organizational productivity. Therefore, manager and users must establish policies to support security and effectiveness of office automation services.
5. In order to make more effective the convergence and re-engineering program implemented, telephone line services should do the following:
a. Effective convergence and re-engineering have to combine leadership from senior management on radical new approaches to the company’s direction with a mandate for redesign of basic practices, workflow, and responsibilities from the “bottom-up.”
b. A cross-functional multi-disciplined team must be created and employee techniques such as process mapping, systems analysis and customer satisfaction surveys must serve to identify convergence and re-engineering opportunity. In this phase a culture audit is undertaken to identify positive forces for change alongside the recognition cultural obstacles to the convergence and re-engineering effort.
c. An outsourcing in convergence and re-engineering the company must be developed to become more productive and more efficient. Outsourcing may shift capital budgets to operating expenses, which can give a firm financial flexibility. Furthermore, outsourcing may free personnel to work on new systems, while the outsourcer maintains acquiring new technologies sooner.
d. Credibility of the systems department must be established by shaping today’s the existing system as successful and reliable before working on tomorrow’s systems; thereby, increasing the confidence of executive management in ideas presented by systems management.
e. Technological maturity of the firm must be established, making it easier to the advantage of computers and telecommunications through out the firm by providing advanced vocational training technology to the employees, make them aware of uses of information technology as well as their role in either using or managing the technology.
f. All employees from all levels must be allowed to participate in the convergence and re-engineering program to commit each employee to change, thereby significantly increasing the success rate of the effort.
6. Initially the re-engineering program and convergence focuses on eliminating ineffective and redundant processes, rather than on eliminating individuals. An equitable selection process should be established at the start of the project and applied consistently. Moreover, a complex approach is to take the re-engineering and convergence as an opportunity to upgrade the company’s skill levels and to eliminate lower level performers. The approach of the company must establish a standard of measurement.
7. Finally , further research similar to the areas explored in this study be carried out. A broader base and number of respondents may be used.
Source: The Levels of Effectiveness of Convergence on the Operation of Telephone Line Services in Baguio City. Leonardo I. Delizo. 2002
Accession: National Research Council of the Philippines, Bicutan, Taguig City and Benguet State University, La Trinidad, Benguet
