CASE STUDY 1 Blue Ocean Robotics Rather than remaining confined to traditional hardware manufacturing, Blue Ocean Robotics adapted their product with AI and spatial computing capabilities to extend their offerings to include collaborative solution architectures and joint development processes with their partners.1,2 This strategic evolution has transformed them from a component supplier to a full-service innovation partner, significantly increasing revenue per customer while deepening strategic relationships. By expanding across the value chain, they now capture service revenue, integration fees and ongoing optimization value that hardware- only players cannot access.1.2 Convergence Reshaping value chains for higher returns While technological combination creates capability advantage, convergence translates this advantage into revenue growth by reshaping value chains and opening new market opportunities. For decision- makers, convergence represents the critical phase where technology investments begin generating tangible business returns. Convergence occurs when combinatorial capabilities merge with economic incentives to transcend traditional industry boundaries, dissolving established silos and forging interconnected value chains. –Margin expansion opportunities: New integrated technology solutions typically command premium pricing compared to mono- component technologies, creating powerful incentives to expand beyond traditional value chain positions. –Recurring revenue potential: Solutions that harness technological combination, in most cases, enable subscription and service-based models that transform one-time sales into repeatable, long-term revenue streams. –Customer relationship depth: Combined tech solutions address more complex customer needs, creating deeper engagement and higher lifetime value. –Competitive differentiation: Providing combined technology solutions provides sustainable differentiation that preserves pricing power. The robotics market serves as a prominent example of the forms of new value capture. Industrial robots, once a core driver of automation, now deliver diminishing marginal returns. Most operate in highly controlled environments and are optimized for repetitive, rule-based tasks. As this segment matures, firms face flattening performance gains and shrinking differentiation opportunities from further iteration. The economic imperative to find new growth vectors is pushing companies to explore adjacent markets and platforms. Value chain expansion within existing markets Tech combination enables organizations to extend their footprint across an existing value chain, capturing additional margin from existing customer relationships while limiting competitive exposure. Technology Convergence Report 9

Technology Convergence Report 2025