Disruptive Technologies Changing the way business is done
ICAI National convention oninformation technology 19th December 2015 Aniket Likhite, AssociateDirector, protiviti Version 2 LAYOUT INSTRUCTIONS FOR TITLE SLIDE: Choose white or blue title slide layout, adjust title font size 32-28pt for better fit; subtitle (optional) 18-20pt; date 14pt Change image from the master page: send back organic lines image, place different image (minimum width 3.9in) and send back under organic lines image Information Technology
Introduction Significance of Information Technology Changes IT has brought in Business Transformation Examples: Tax filing Posting of transactions Accounts and Balance sheet preparation Payments and receipts Communication Information Technology - Benefits
Significance of Information Technology Changes IT has brought in Business Transformation Examples: Tax filing Posting of transactions Accounts and Balance sheet preparation Payments and receipts Communication Ease of operations Efficiencies Cost reduction Informed decision making Business expansion and growth Global reach Are we just talking abouttransformation in business ? This is an example slide that can be reused with different text, colors and shapes Evolving digital Life Hail a cab Book On PC/App Visit the bank
Online banking This is an example slide that can be reused with different text, colors and shapes Brick and Mortar E-Commerce Technology Disruptions
Not every technology is disruptive innature : Broad potential scope of impact High rate of technology change Substantial potential for disruptive economic impact Significant economic value to be affected 1 2 4 3 Disruptive technologies typically demonstratea rapid rate of change of capabilities interms of price / performance relative to substitutes and alternate approaches. Ex. Gene sequencing technology is advancing at a rate even faster than advancements in computer processing power. To be economically disruptive the technology must have a broad reach. Affecting wide range of industries, products or services. The innovation creates massive economic impact They can transform how people live and work. Disruptive technologies - Definition
DISRUPTIVE TECHNOLOGY is According to Clayton M. Christensen, an Harvard Business School professor a disruptive technologyis a new emerging technologythat unexpectedly displaces an established one. An innovation that creates a new market and value network and eventually disrupts an existing market and value network, displacing established market leaders and alliances Example of DISRUPTIVE TECHNOLOGY This is an example slide that can be reused with different text, colors and shapes Disruptive Technologies
Disruptive Technology Description MOBILE INTERNET Increasingly inexpensive and capable mobile computing devices and Internet connectivity INTERNET OF THINGS Networks of low-cost sensors and actuators for data collection, monitoring, decision making, and process optimization CLOUD TECHNOLOGY Use of computer hardware and software resources delivered over a network or the Internet, often as a service AUTONOMOUS AND NEAR AUTONOMOUS VEHICLES Vehicles that can navigate and operate with reduced or no human intervention NEXT_GENERATION GENOMICS Fast, low-cost gene sequencing, advanced big data analytics, and synthetic biology (writing DNA) Internet of things From monitoring the flow of products through factory to measuring the moisture in a field of crops. Cloud technology With cloud technology any computer application or services can be delivered over a network or the internet. The cloud is enabling exponential growth of internet based services from streaming media to offline storage of personal data. Autonomous and near autonomous vehicles it is possible to create cars, trucks, boats that are partly autonomous. Drones are used not only on battlefields but are used for the purpose of photo video shooting during marriage functions. Amazon tried using Drones for delivery of their goods Next generation genomics because of advancement of technology, a human genome can be sequenced in a few hours and for a few thousand dollars. Previously same task used to take few more than 13 years. Now relatively low cost desktop sequencing machines can be used for this purpose. Technology Adoption 1 A potential technology breakthrough kicks things off. Early proof-of-concept stories and media interest trigger significant publicity. 1 2 3 4 5 2 Early publicity produces a number of success storiesoften accompanied by scores of failures. Some companies take action; most don't 3 Interest wanes as experiments and implementations fail to deliver Gartners hype curve 4 More instances of how the technology can benefit the enterprise start to crystallize and become more widely understood 5 Mainstream adoption starts to take off. Criteria for assessing provider viability are more clearly defined Source: Gartners hype curve
Technology Adoption Internet of Things Next generation genomics Autonomous vehicles Cloud Technology Mobile internet Source: Gartners hype curve The new Digital Ecosystem
Increasing mobile penetration invarious customer segments andawareness about m-commerceleading to amplified mobile usageand information sharing Facebook, Google+,Twitter providingincreasing venues forusers to share lifemoments andpersonal information Mobile Social User data andinformation is beinggenerated throughvarious mediums andstored in severallocations for variouspurpose Firms managinglarge data andrunning analyticson it to betterpredict userbehavior andincrease serviceefficiency Big Data & Analytics Online storage servicessuch as Dropbox,Google Drive, Megabeing increasingly usedto store personalinformation Cloud Connected devices (fitnessbands, smart watch)gathering personal data anddetermining individual healthand behavior Internet of Things Value for business Traditional Manufacturing Consumer Insights Targeted Marketing Optimized inventory Operations optimization Firms are increasingly using digital information, both from customers and connected devices to optimize their processes, increase efficiencies and deliver value. Retail Smart CRM and loyalty programs Automated checkouts Targeted promotions Localized offers Financial Services Process Automation (Web/mobile banking) Scoring and rating for fraud Cross-selling based on customer behavior Location based targeted marketing and offers Value for business Telecommunications E-Commerce Public Services
Process Automation to increase efficiency and benefit customers Service enhancement based on user data Monetization of customer data through cross-selling Consumer insights and reviews drive product inventory Recommendation engines to push sales Revenue stream from selling customer insights to third parties Cost savings through Citizen self-service process automation Cost savings through data on cloud DigiLocker Behavioral and genetic data collection to optimize healthcare Value to consumers Personalized service and targeted marketing makes products attractive for consumers . Location based service allows for relevant offers for consumers on the required time Mobile and online channels allow for easy access to service providers and bridges communication gap Self-service and automated processes save time and effort for consumers New platforms to share information, connect with people and communities New connected devices and online/automated services provide avenues for users to share information and utilize services at an ease which was never seen before using their digital identity. Case Study App Based Taxi operator: Uber
Company develops, markets and operates mobile app, which allowsconsumers with smart phones to submit trip request which is then routed todrivers who use their own cars BENEFITS Provides a choice betweenregulated cab companiesand other form oftransportation Ease of booking Competitive pricing Online tracking of vehicle Ease of payment CONCERNS Privacy of customerinformation Safety concerns Opposition and protests byregulated cab drivers Lack of regulations Concerns about Privacy and Security
While users have concerns about their personal information, very few are aware about how it is being stored and used. Controls Concerns Awareness Awareness about privacy areas and providing controls to end user allows for greater information sharing built on trust. 1 Challenges for firms IDENTITY MANAGEMENT
Defining what informationcomes under private andpublic Preparing single digitalidentity from connecteddevices COMPLIANCE Undefined regulatoryframework Difficulty in standardizingregulations due to rapidlyemerging technologies IT Governance for newtechnologies and connecteddevices DATA MANAGEMENT Data generated fromdiverse connecteddevices affects dataintegrity Data Leakage Lack of interoperabilitywith legacy systems Loss of sensitive data OTHER RISKS Reputational Risk Users mistrust Financial Risk Threat Agents Credit Card/PII Thieves Ransomware Crooks
Wire Transfer Fraudsters Botnet Herders Political Attackers Corporate Secrets Thieves Threat Landscape Organized Criminals Malware Authors Competitors
WHO Who are we trying to protect against Organized Criminals Malware Authors Competitors Disgruntled Employees Activists State Agents Outsourced Vendors Money Mule Net Threat Agents WHY Why is our organization a target of focus Competitive / Political Gains Financial Gains Corporate Espionage Cyber Terrorism Revenge Hactivism Fraud Underground Marketplace Credit Card Theft Identity Theft Motivation HOW How will these tools & techniques be deployed against us Hacking Malware DDoS Spear Phishing Advanced Persistent Threat Botnet Spyware / Virus Man-in-the Middle Techniques WHAT What assets or interest to the attacker, based on their interest Applications Critical Systems Network Infrastructure Intellectual Property Strategic Information Personal Identity Information Customer Data Targets IMPACT What are the resulting impact of the attack Data Loss Loss of Revenue Unauthorized Access Unavailable Systems Legal Implications Increased Operational Costs Loss of Credibility IPR Infringement Impact Disruptive technologies and regulations
End consumers are thrilled as innovation is turning many industries inside out Disruption of another industry by new emerging technologies is under way Becoming harder for regulators to balance needs of value seeking, innovation hungry consumers with the industries they regulate Disruptive technologies are innovating at a speed Way forward The approach to regulations has been build around traditional models ofindustry It should be adapted to address these emerging, value seeking digitallycontestable markets As a result regulations may not constrain the benefits of innovations orprotect existing service providers from disruptions In turn the phenomenon led by technology startups will become embeddedacross old and new companies as theylearn to embrace new digitalmodels at an increasingly rapid rate. Shift inmindset Need for a shift in mindset from regulation of industries to the regulation of consumer markets Collaboration Collaboration between wider business community and regulatory bodies Digital disruption isnt just a consumer story.