This document discusses many disruptive technologies that are driving change, including smartphones, tablets, cloud computing, big data, analytics, artificial intelligence, 3D printing, autonomous vehicles, and more. It notes that these technologies are reinforcing each other and multiplying their impact. Some key points made are that disruptive technologies can displace existing markets and change customer needs, successful companies must adapt to new technologies to meet future customer needs or risk falling behind, and that collaboration between disruptors and disrupted companies can still be achieved with active engagement and investment in the future.
2. Technologist – 18 years IBM, DELL, ING,
BTMU, C&W, Reuters, CME, Local and Central
Government, Start-up
Journalist – Enterprise and Consumer Tech,
BBC, Computing, Computer Weekly, Wired
Broadcaster – Consumer: BBC Rip off Britain,
ITV Daybreak, CNN, Planet of the Apps
David McClelland
4. Creates new market, displaces existing market
Technology as an enabler for accelerated disruption
Google: destroys more value than it creates (for itself)
Power to the people - consumers capture majority of
economic surplus
Digital Disruption
5. “Successful companies can put too
much emphasis on customers’ current
needs, and fail to adopt new
technology or business models that
will meet customers’ unstated or
future needs. Such companies will
eventually fall behind.”
Clayton M Christensen
Dilemma
6. { {Disrupted
PCs
CRT TVs
Wood, Metal, Glass
Film Cameras
Rail
Encyclopedia Britannica
Disruptor
Tablets/Smartphones
LCD TVs
Plastics
Digital Cameras
Cars
Wikipedia
Disrupted
7. “With active engagement and a will to invest in the
future, there can still be peace between the disruptor
and disrupted”
Top Ten Challenges for Investment Banks
Accenture 2014
Collaborated
10. Smartphone
Tablet
Data
Connected staff
Connected customer
Mobility & Mobile Internet
11. “The idea that every object we own, no matter how
mundane, is connected to the internet and can be
monitored and manipulated via the internet, whether
it’s a toaster, a lightbulb or your car”
Christopher Mims, Quartz
Internet of Things
13. Data by numbers:
2.5 quintillion bytes per day
90% created in last two years
80% unstructured data
Only 10% of data read more than once
Source: IBM
Data
14. “Just as the telescope enabled us to comprehend the
universe and the microscope allowed us to understand
germs, the new techniques for collecting and analyzing
huge bodies of data will help us make sense of our
world in ways we are just starting to appreciate”
Mayer-Schonberger, Cukier
Big Data
15. Value:
Single Customer View
Predict patterns
Identify opportunities
Personalised advice
Get the edge: leverage existing data to know your
customers better than anybody else
Analytics: Digital Intelligence
16. Nest – estimated 2bn kWh energy saved
Automatic – saves 30% fuel cost
Wealthfront Investment Management
+ 4.6% return vs average mutual fund
Pattern Driven
17. Better decision making
Humans can’t keep up
Cognitive computing
Expands human cognition
Learns with use
Interacts naturally
Knowledge Automation
18. Advanced Robotics
Advanced Materials
3D Printing
Energy Storage
Next-Gen Genomics
(Near-) Autonomous Vehicles
Advanced Oil and Gas Exploration and Recovery
Renewable Energy
Other Technologies
19. {Reinforcing each other and
potentially driving greater impact
Combinations of
Technologies
Multiply Impact
20. Top down / waterfalls too slow
Online demands faster response
Good cloud fit
Agile Development
22. Target Target
70 million – records stolen
40 million – credit/debit cards
$200m – bank cost to reissue cards
$53.7m – income from selling card details
$55m – executive settlement to CEO Steinhafel
46% drop in profits
Secure, Hack, Fraud
23. Heartbleed Bug
eBay
LinkedIn
Target
Spotify
Gameover Zeus
“This is the new norm”, FBI
Secure, Secure, Secure
24. Built for the internet
Sound technology platform
Infrastructure investment
Cryptocurrencies
25. Cut out the middle man
DIY attitude – willing to take on some risk
Direct engagement
Online knowledge isn’t a privilege
P2P Attitudes
26. Airbnb – connects tourists with destinations
RelayRides – connects drivers with car owners
Lending Club – connects investor to borrower
Paypal
M-Pesa
P2P Disrupts
30. Generational Attitudes
Baby Boomer - Collateral
Gen X - Convenience
Gen Y – Contact
Customer Centricity
User Interface
Far less friction
Far more convenience
Attitudes
31. Know your customer > Better than anyone else
Know your limitations > Embrace Innovator
Still space for face to face > Augment online
Takeaways
1996 – Reuters in London, technical role
2000 – IBM
2005 – Freelance Consultant, worked on IT major transformation projects in US Chicago Mercantile Exchange, Bangkok with Reuters, Amsterdam with ING and DELL
2011 – Joined technology startup; 2013 acquired by IBM > we’ll talk about this later
I’ve been a Consulting Editor at Computing, contributor to Wired, Computer Weekly, CNET; for the BBC I am an expert in N&CA, Rip Off Britain etc;
Host consumer technology show Planet of the Apps (Challenge TV, Virgin Planes!), write and host shows online for various technology brands, pop up on the news for ITV, CNN, C4 etc
Disclosure – IBM is a current client of mine, I may use some of their stats today, among many others, but I’ve no intent to endorse their products or services here today
Google destroyed more value than it created – Richard Dobbs, Director at McKinsey Global Institute
Lending Club CEO Renaud Laplanche: History has show that it’s difficult for incumbent providers to drive costs down, adopt new technologies and processes as *quickly* as the innovators
Could easily add – Movie rentals (Blockbuster) disrupted by the likes of Netflix, Amazon, iTunes (++ convenience, ++ choice than Blockbuster, advice through trailers, ++ cost – one movie rental equivalent of one month’s subscription to Netflix (still model with iTunes and some Amazon). It will be interesting to keep an eye on Sky, and how it fights to maintain its position against cheaper services – for movies certainly, Sports is an interesting high value/high risk battlefield too (eg BT Sport).
Coming back to movies, the PwC Entertainment and Media Outlook report earlier this week shows revenue from online services will overtake box office revenues by 2018.
Ref: http://www.accenture.com/microsites/10-challenges-2014/Pages/challenge08.aspx
Or: keep your enemies close
Dive into some of the technologies frequently bandied around as ‘disruptive’.
Report is from 2013, well worth a read – management summary is still very comprehensive. It pulls out 12 different disruptive technologies that will have impacts on various sectors, along with some challenger technologies
Link: http://www.mckinsey.com/insights/business_technology/disruptive_technologie
I’m going to add my own too – different spins, some with more relevant to financial services
MGI has 12 disruptive technologies in its report, here just for completeness are some others that we’ll not be covering in detail today
I’ve a few more of my own that I want to cover here – not all of them fit the ‘disruptive technology’ definition nicely, but they do have the potential to disrupt on their own or in concert and they are all in the technology bucket.