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Disruptive Technology

Change is the new normAdapt or die

A Meeting of Minds@DavidMcClelland

5 June 2014

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

{Digital Revolution

Disruptive Technology

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

“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

{ {Disrupted

PCsCRT TVsWood, Metal, GlassFilm CamerasRailEncyclopedia Britannica

Disruptor

Tablets/SmartphonesLCD TVsPlasticsDigital CamerasCarsWikipedia

Disrupted

“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

{Today’s view of Tomorrow

Technologies

McKinsey Global InstituteDisruptive Technologies: Advances that will transform life, business and the global economy

Tomorrow

Smartphone Tablet Data Connected staff Connected customer

Mobility & Mobile Internet

“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

Economies of scale:

Compute cost decline 33% annually Storage cost decline 38% annually Bandwidth cost decline 27% annually

Lowers barriers to entry = anybody can disrupt

Cloud

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

“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

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

Nest – estimated 2bn kWh energy saved Automatic – saves 30% fuel cost Wealthfront Investment Management

+ 4.6% return vs average mutual fund

Pattern Driven

Better decision making Humans can’t keep up Cognitive computing

Expands human cognition Learns with use Interacts naturally

Knowledge Automation

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

{Reinforcing each other and potentially driving greater impact

Combinations of Technologies Multiply Impact

Top down / waterfalls too slow Online demands faster response Good cloud fit

Agile Development

D

Analogue vs Digital Culture

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

Heartbleed Bug eBay LinkedIn Target Spotify Gameover Zeus

“This is the new norm”, FBISecure, Secure, Secure

Built for the internet Sound technology platform Infrastructure investment

Cryptocurrencies

Cut out the middle man DIY attitude – willing to take on some

risk Direct engagement Online knowledge isn’t a privilege

P2P Attitudes

Airbnb – connects tourists with destinations

RelayRides – connects drivers with car owners

Lending Club – connects investor to borrower

Paypal M-Pesa

P2P Disrupts

#FinTech

Nutmeg Wealthfront (US) OpenFin

Financial Technology

Still space for Face to Face Cs Commerce Platform

Content Community Commerce

Commerce Got Social

‘Connected customer’ transformation

CSAT from lowest to highest

Commonwealth Bank

Generational Attitudes Baby Boomer - Collateral Gen X - Convenience Gen Y – Contact

Customer Centricity User Interface

Far less friction Far more convenience

Attitudes

Know your customer > Better than anyone else

Know your limitations > Embrace Innovator

Still space for face to face > Augment online

Takeaways

@DavidMcClellandwww.davidmcclelland.co.uk

Thank you