business analysis & the impact of disruptive technologies

1

By Christian D. Kobsa

Business Analysis &

The Impact of

Disruptive Technologies

TOC

Types of Innovations

Definition of Disruptive Technology

Past Examples

Present Examples

Impacts

Understanding the Impacts

Overview of Present Examples

…TBD…

Disruptive Innovations

…TBD…

2By Christian D. Kobsa

Innovation Types

Sustaining:An innovation that does not affect existing markets.

Evolutionary:An innovation that improves a product in an existing market in ways that customers are expecting.

Revolutionary:An innovation that is unexpected, but nevertheless does not affect existing markets.

Disruptive:An innovation that creates a new market by applying a different set of values, which ultimately and unexpectedly overtakes an existing market.


Definition

A disruptive technology is one that displaces an

established technology and impacts the industry

associated with that technology.

A disruptive technology can also be a ground-

breaking product that creates a completely new

industry.


Examples of Disruptive Technologies

Personal Computer

Window’s Operating System

Email

Cellphone

Mobile Computers

Social Networking

Digital Cameras

Light Emitting Diodes

Hydraulic Excavators

Plastic


Present / Future Disruptive Technologies

Mobile Internet

Automation of knowledge work

The Internet of Things

Cloud technology

Advanced robotics

Autonomous and near-autonomous vehicles

Next generation genomics

Energy storage

3D printing

Advanced materials

Advanced oil and gas exploration and recovery

Renewable energy


Why Important to BA’s?

Major importance to organizations, because:

It plays a big role in the digital experience their customers

have.

It directly affects a firms profitability.

Challenged enterprise architecture, because:

Speed of new technology delivery.

Constantly changing business strategies and requirements.

Focus is IT agenda driven, instead of business technology

(BT) driven.

21st Century is the age of the customer.


A Paradigm Shift

“The significant problems we face today cannot be solved through the same type of thinking we employed when we created them.”

- Albert Einstein


Impacts of Disruptive Technologies


Implications for Individuals and Societies: Changes quality of life, health, and environment

Changes in patterns of consumption

Changes in the nature of work

Implications for Established Businesses and Other Organizations:

Creates new products and services

Shifts surplus from producers to consumers

Changes in organizational structures

Shifts surplus between producers or industries

Implications for Economies and Governments: Drives economic growth or productivity

Changes comparative advantage for nations

Poses new regulatory and legal challenges

Affects employment

Understanding the Impacts


How Technology Drives Growth

Understanding The Impacts (continued)


Digital Industry Evolution


The Mobile Internet

A combination of mobile computing devices, high-speed wireless

connectivity, and applications.

Applications provide innovative capabilities and services, such

as:

Geographically location based services

Personalized feeds of information and entertainment

Constant online contact

Seamless connection to cloud based resources

Potential sectors / areas / professions effected are:

Health Care

Education

Public sector citizen services

Retail

Government and private sector mobile payment

Knowledge workers / professionals


Automated Knowledge Work

Computers performing tasks that rely on complex analyses,

subtle judgments, and creative problem solving.

Computers can increasingly perform tasks that are today

performed by professionals and knowledge workers.

Automated Knowledge Work computers could significantly

change the nature of work as we know it.

Advances in natural user interfaces allow human-machine

interaction similar to human-human interaction.


The Internet of Things

Use of sensors, actuators, and data communications technology built into physical objects. It enables tracking, coordination, or control of the object over a data network or the Internet.

Value creation through: Improve productivity in current operations.

Allows for new products and services.

Implementation of new strategies.

Improved infrastructure and public services. Improved movement of traffic flow.

Improved efficiency in garbage collection.

Improved efficiency in water systems operation.

Possible reduction in crime.

Monitoring / controlling of electrical power grids and water supply systems.

Tracking of products and physical assets in manufacturing environments.


Cloud Technology


Allows delivery of IT services in which resources – data and/or

software applications – are retrieved from the Internet through

web-based tools and applications, rather than a direct

connection to a server.

Provides for more productive and flexible IT management .

On demand self-service capabilities.

Anytime and anywhere availability.

Pooling of computing resources for multiple users and/or organizations.

Usage-based pricing.

Elasticity; i.e., ability to expand or shrink capacity as needed.

Possibility of new business models.

Advanced Robotics


Potential for augmenting physical human labor in numerous

areas.

Massive productivity increases, quality gains, and cost

reductions.

“AI” advances allow for robotic complex judgment abilities to

supplement professional knowledge workers.

New advanced robotics applications are emerging in the following areas:

Service industry robots

Health care robots

Industrial manufacturing robots

Military application robots

Business workflows, value streams, processes, and

organizational dependencies will be impacted.

Autonomous Vehicles

Partly or completely self-driving vehicles are now possible.

Cars and trucks.

Crop-spraying drone aircrafts.

Self-guided forklift vehicles.

Law enforcement drones.

Military vehicles.

Frees up drivers to use drive time:

To perform work.

To socialize.

To relax.

Huge potential impact for the logistics industry.

Biggest hurdle to implementation:

Establishing the necessary regulatory frameworks.

Legal and ethical frameworks.

Winning public support.


Next-Generation Genomics

…TBD…


Energy Storage


…TBD…

3-D Printing

Additive manufacturing.

Completely re-design manufacturing supply chains.

Advantages over traditional construction methods:

Direct link from design computer to finished part or product.

Skip various manufacturing steps.

Reduce material waste.

Create objects difficult / impossible to produce using traditional

manufacturing.

Completely re-design workflow, value chains, and processes.

Development of a 3D “ecosystem” for support of consumers and

entrepreneurs.


Advanced Materials

Nano-technology provides opportunities for:

“Green” materials

Self-healing materials

Piezoelectric materials

Memory materials

Advanced composites

Nano-materials properties:

Far greater surface area per unit of volume than other materials

Highly reactive and bio-reactive

Unusual electromagnetic, thermal, and optical characteristics

Nano Electromechanical Machines (NEMS)


Renewable Energy

…TBD…


Definition

A disruptive innovation contributes in the

creation of a new market and its associated

value stream. Eventually, it disrupts an existing

market and its value stream. In doing so it takes

the place of an earlier technology.



References

Books: “The Innovator’s Dilemma – When New Technologies Cause Great Firms to Fail” by Clayton M Christensen; Harvard Business

School Press, Boston, Massachusetts

“Collaboration for Sustainability and Innovation: A Role for Sustainability…” by Diego A. Vazquez-Brust, Joseph Sarkis, James

J. Cordeiro; Springer Verlag

“Societal Implications of Nanoscience and Nanotechnology” by Mihail C. Rocco, William Sims Bainbridge; National Science

Foundation

White Papers: “Strategic Principles for Competing in The Digital Age” by Martin Hirt and Paul Willmott ; May 2014 McKinsey Quarterly, McKinsey

& Company

“Disruptive Technologies – Advances That Will Transform Life, Business, and The Global Economy” by James Manyika, Michael

Chui, Jacques Bughin, …; May 2013 McKinsey & Company

“The Internet of Things in Logistics” by Andreas Nettstraeter @ Fraunhofer IML

“Internet of Things – From Research and Innovation to Market Development” by Ovidiu Vermesan, Peter Friess; River Publishers

Web Sites: http://en.wikipedia.org/wiki/Disruptive_innovation

http://whatis.techtarget.com/definition/disruptive-technology

http://en.wikipedia.org/wiki/Disruptive_innovation

http://whatis.techtarget.com/definition/disruptive-technology