Global review 2016

Is every industry now your industry?

“If you think about industry convergence, we really are at a tipping point and it’s occurring because of all the new technologies that have appeared.”Alison Kay, EY Global Vice Chair – Industry
   

Why are we seeing industry convergence now?

If you think about industry convergence, we really are at a tipping point and it’s really occurring because of all the new technologies that have appeared. If you think of things such as block chain, if you think artificial intelligence, robotics…it’s all really starting to accelerate in terms of pace, in terms of affecting industries and business models.

What’s the impact of industry convergence?

Industries are converging, so when you think about the automotive industry which has been fairly static for the last 30-40 years, now they’re calling themselves ‘mobility’ because they’re looking at how the whole contactless vehicle is affecting their industry. So they’re talking about insurance, they’re talking about data, they’re talking about the internet of things. So, you know, if you look at the convergence of industries, actually your industry is no longer your industry and your competitors are coming from a very broad church.

I think the most important thing for some of the big incumbents today is: think of how your business can change, can innovate, can make the most of the technology that is available because you can be real winners in this market.

What are the industries most affected by convergence?

Every industry is going to be affected by convergence. I mean, the ones that stand out to me right now? Health care and the future of health care is just going to be transformed with telematics, with wearables, devices that will fundamentally change the way in which the patient interacts with the practitioners and the care providers.

I would say the other industry that’s really affected is banking and the capital markets. The whole emergence of fintech and block chain – I just think the change in those industries is going to make the incumbents really have to sit up and think so differently about their business models and how they are approaching the market.

How does EY help its clients with these new challenges?

EY is so suited to helping our clients succeed in this very uncertain world.

Globally, we have over 200,000 people who have deep expertise in all industry sectors, who come together to solve the most complex problems with our clients today.

EY is particularly suited to thinking through the better questions that we ask with our clients. We’ve also got really deep skills and capabilities in these new areas of innovation and technology such as cyber, such as analytics, such as data mining, robotics. So, the skills base that EY are building out is very well suited to the technologies of the future.

No industry is immune from convergence but three in particular — mobility, health care and financial services — are being affected dramatically, according to a Wikistrat crowdsourced simulation, held in collaboration with EY.

 

Industry convergence is one of the megatrends identified in our report The upside of disruption: Megatrends shaping 2016 and beyond.

 

A new financial services landscape?

Driven by innovative startups and major technology players, the booming FinTech industry is capturing share from traditional financial services companies by offering customers easy-to-use and compelling products and services.


Find out more in our first EY FinTech Adoption Index.

 

Read Dealmaking: When sectors collide in EY Capital Insights, our long-running publication designed to help businesses raise, invest, preserve and optimize capital.

 

Automotive industry changes gear

This year we launched the Disrupters series, a new program run by The Economist and supported by EY examining how the working world is dealing with the pressures of change and disruption. How do successful businesses evolve and turn threat into opportunity?


Gear Shift investigates the impact of disruption on the automotive industry.

 

Hacking paths to the future of mobility

In early 2016, EY's Automotive Industry spearheaded a series of hackathons where a diverse set of participants co-developed visions and prototypes for future mobility scenarios.


Find out more: Remodeling for mobility: Will new mobility mean the end of ‘old’ automotive?

 

Connected healthcare

This year we launched a new model in health care consultancy, one which brings together insights from multiple sectors — biotech, life sciences, technology, telecommunications, consumer products and more — to develop new solutions for the healthcare industry.


Find out more in our Health Reimagined blog: Perspectives on the future of health