Anley Piers
Amit Chadha, CEO and managing director of L&T Technology Services, considers the ‘crosspollinovation’ of unassociated industry verticals, as AI and other assistive technologies redraw the bounds of what was once considered possible.
In a world where boundaries between industries are fading, and the spirit of innovation knows no constraints, the concept of industry hybridisation is taking centre stage. Over the past decade, we have borne witness to a profound transformation in the way businesses function, driven by the dynamic fusion of technology and services.
The fusion of technology and services, embodied in the concept of industry hybridisation, is more pervasive today than ever before. This transformation has been fuelled by a heightened awareness of technological potential in the digital age and the seamless integration of the digital and physical realms. From an engineering and technology standpoint, the strategic deployment of technology and the application of segmentation strategies from diverse sectors are pivotal to expanding market share within one’s current business.
In this dynamic landscape, technology serves as a catalyst for the hybridisation of industries, giving rise to a rich cross-pollination of ideas and solutions. At L&T Technology Services, we have coined the term “crosspollinovation” to describe this phenomenon. It involves the strategic application of technologies and use cases from one industry to enhance processes, products, or services in another. This innovative process empowers companies to seamlessly transition into adjacent sectors, effectively dismantling traditional industry boundaries and expanding their horizons.
…[T]echnology serves as a catalyst for the hybridisation of industries, giving rise to a rich cross-pollination of ideas and solutions.
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In our interconnected world, industries increasingly recognise the value of leveraging well-established technologies from unrelated domains. For example, sensor technology, data analytics, and connectivity that originated in the automotive industry now find applications in healthcare, especially in remote patient monitoring and personalised treatments. Similarly, artificial intelligence (AI) and machine learning algorithms initially developed for financial services have found new life in agriculture, optimising crop yields and resource management.
Ultimately, the technological hybridisation of industries sets in motion a virtuous cycle of innovation and growth. Companies that capitalise on the “crosspollinovation” of technologies and venture seamlessly into adjacent sectors not only stay competitive but also contribute to a broader ecosystem of progress and transformation.
Today, companies are boldly venturing into adjacent industries, using technology as a conduit for transformation.
Pioneering companies redefining industry borders
Today, companies are boldly venturing into adjacent industries, using technology as a conduit for transformation. L&T has diversified into L&T SuFin, an Amazon-like portal exclusively dedicated to industrial products. This strategic move not only opens new revenue streams but also positions the company as a comprehensive solution for industrial product procurement.
Eaton, traditionally an electric power management company, has embraced EV charging solutions while retaining its core business, demonstrating adaptability to emerging market trends.
The tech giant Google, through its parent company Alphabet, has forayed into healthcare with its subsidiary Verily Life Sciences, focusing on pioneering smart healthcare initiatives.
Major cloud providers, including AWS, Microsoft, and Amazon, are venturing into the DevOps domain by introducing Continuous Integration (CI) and Continuous Deployment (CD) pipelines. This strategic shift is expanding their portfolio into an adjacent, rapidly growing sector.
The acceleration of industry hybridisation is further fuelled by partnerships, mergers, and acquisitions (M&A), and organic growth.
Accelerating hybridisation: Partnerships, M&A, and Organic Growth
The acceleration of industry hybridisation is further fuelled by partnerships, mergers, and acquisitions (M&A), and organic growth. Of these, partnerships are the linchpin of progress. They take various forms, ranging from tech alliances to collaborations with startups and niche providers, all of which bring new capabilities to the table. Partnerships enable organisations to adopt novel technologies and explore adjacent domains without committing substantial resources.
M&A, on the other hand, serves as the catalyst for swift technology acquisition, gaining capabilities, or expanding market share. M&A decisions are guided by valuations and strategic alignment with the overarching business model, aimed at outpacing traditional development timelines and gaining a competitive edge.
Organic growth is equally influential, with companies embarking on pilot projects to assess the viability of transitioning into adjacent industries or adopting new technologies. These pilot projects serve as testing grounds for promising use cases, potentially leading to organic growth or M&A, contingent on the outcomes.
Technological innovations driving hybridisation
The ever-accelerating hybridisation of industries is underpinned by a vast array of technological innovations. The central role played by sensors cannot be overstated. They enable high-precision, real-time data collection in industrial machinery and consumer electronics, a trend known as “sensorisation.” This trend enhances processes such as medical device health monitoring and smart home energy management.
The concept of “softwarisation” reflects the increasing importance of software in product functionality. Together with sensorisation, it leads to “servitisation,” wherein traditional product sales are transformed into service sales. For instance, self-driving vehicles rely on software algorithms to govern their movements, thereby offering opportunities for entertainment and personalised services.
Real-time operational data feeds the momentum of industry hybridisation by meeting the growing demand for up-to-the-minute information. The decreasing cost of hardware empowers businesses to introduce new services without inflating product prices.
However, the pivotal role of AI in advancing industry hybridisation cannot be overlooked. AI’s ability to synthesize data across sectors possesses the potential to dissolve conventional boundaries, uniting businesses and ushering in a new era of exponential growth and transformation.
The challenges of hybridisation
As with any transformative trend, industry hybridisation is not without its challenges. Rapid innovation shortens product lifecycles, pressuring companies to keep pace with consumers’ expectations for newer and better products, thus accelerating product obsolescence.
Consumers today demand immediacy, introducing new layers of complexity. Companies must adapt swiftly to meet these expectations, often by expanding into adjacent industries, fostering “crosspollinovation,” and innovation. Those unable to adapt in this fast-paced environment risk stagnation or even extinction. Additionally, digital transformation may not always translate into tangible value for customers, with new features often appearing more like superficial add-ons than fundamental improvements. Customers expect more for less, putting additional pressure on companies to provide comprehensive solutions that genuinely enhance user experience.
The blurring of the lines between B2B and B2C transactions presents fresh challenges. What once was a straightforward business-to-business interaction may now evolve into a direct-to-consumer service, necessitating novel approaches to customer engagement, marketing, and support. Organisations must prepare for this transformation and its associated demands. The nature of transactions can also change dramatically, with businesses venturing into new domains that require a fundamental shift in strategy.
The hybridisation of industries is a powerful force reshaping the business landscape, driven by relentless innovation and the transformative potential of technology. To thrive in this ever-evolving ecosystem, companies must embrace change, nurture partnerships, and maintain an unwavering focus on their customers. The challenges are real, but so are the rewards, as we witness the birth of a new era where industry boundaries blur, and transformation knows no limits.
The blurring of the lines between B2B and B2C transactions presents fresh challenges. What once was a straightforward business-to-business interaction may now evolve into a direct-to-consumer service, necessitating novel approaches to customer engagement, marketing, and support.
