Session  4:  The  Disruptors:  Digital  TechnologyRob  Ruyak,  Principal  -­ Booz  Allen  Hamilton

Digital  Cities  Summit  — October  3-­4,  2016  

Disruption  Theory  RevisitedCore Concepts | Economic Engine

Disruptive Innovation

Sustaining Innovation

Efficiency InnovationHow?• Corporate Venturing• Partnerships• Increased R&D• M&A• IP Commercialization• Others…

Freed-Up CapitalSource: Clayton Christensen on disruptive innovation - Clarendon Lectures 10th June 2013

Disruption  Theory  Revisited

Yesterday• GM• Dept. Stores• State universities• Digital Equipment• Delta• JP Morgan• Xerox• Cullinet• Sony DiskMan• Yellow Cab• Hilton

Today/Tomorrow• Toyota• Wal-Mart• Community colleges• Dell• Southwest Airlines• Fidelity• Canon• Oracle• Apple iPod• Uber• AirBnB

Source: Clayton Christensen, How Disruptive Innovation Will Change the Way the World Learns

Past, Present, & Future Examples

…is not always apparent, and at times it may even seem “cute”

THE WORD “DISRUPTION”  =  HYPE?

…  SO LET’S TALK TRANSFORMATIONAL TECHNOLOGY &MARKET CREATION

OPTIMISM BREADSSUCCESS…

5G  Wireless

(N  =  957  STORIES)

TOP STORY SEGMENTS

● SENSORS &  VIRTUAL REALITY 23%

● REGULATION &  POLICY 18%

● VIRTUALIZATION/MANAGEMENT 16%

● BANDWIDTH &  SIGNALPROCESSING 15%

● CARRIERS/FIBER/TRANSFER 13%

● ITU  &  APPLICABLE PLATFORMEXAMPLES 12%

TRENDING MEDIA FOR 5G  WIRELESS

CURRENT CONCERNS &  CHALLENGES

“The first 10 years of television was radio in front of the camera. That’s exactly where we are in this digital revolution. -- Ronan Dunne

(former executive of O2)

Current Discussions & Challenges

Big  Data  &  Machine  Intelligence

Value chain offers numerous access points for creating business solutions …given the complexity and difficulty of providing end to end solutions, players tend to focus on specific segments

Value Chain & Its Leading Market Makers In  other  words….  It’s  a  team  sport!

Machine  IntelligenceMessaging & Digital Assistants

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at

Soci

al M

edia

Elec

tron

ic

Mes

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ng

Smar

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ne

Appl

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Tele

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Generation Y(born 1981-1999) 24% 24% 21% 19% 12%

Generation X(born 1961-1980) 21% 12% 28% 11% 29%

Baby Boomers(born 1945-1960) 7% 2% 24% 3% 64%

Silent Generation(born before 1944)

2% 1% 6% 1% 90%

Denotes 1st Choice

Source: Source: “Global Contact Center Benchmarking Report,” Dimension Data, 2015.N = 717 Contact Centers, Global. Results are shown based on contact centers that actually tracked channel popularity. Percentage may not add up to 100 owing to rounding.

Legacy Companies Building Chatbots1

June 2015 – June 2016, n = 619

Legacy Companies SocialMentions

Facebook 150

Microsoft 120

Alphabet 75

Twitter 24

Apple 13

IBM 11

Taco Bell 7

Amazon 5

• 11k bots launched in 10 weeks (as of June 7, 2016)

• 23k developers using Facebook’s Wit.ai (Wit.ai makes it easy for developers to build a Siri-like speech interface for their app or device.)

• 900m messenger users

(1) Booz Allen Analysis

Autonomous/Unmanned  VehiclesGrowth Rates & Question of Trust

…but would you actually trust this guy?

Sounds great…

“THE CUSTOMER RARELY BUYS WHAT THECOMPANY THINKS IT IS SELLING HIM.”    

PETER DRUCKER

Awareness Belief Excitement Trust

Value creation depends on an inherent lifecycle…

Market  Creation  Challenge

An  Example:  Transactive  Energy

Centralized 1-Way Power Grid

Distributed 2-Way Power Grid

New Markets Require Significant Awareness -> Trust

PARADIGM SHIFT• New Business Models• Buyers/Sellers• Financial Settlements

Session  4:  The  Disruptors:  Digital  TechnologyDiscussion Panel

Rob RuyakPrincipal

Booz Allen Hamilton

Susan AtheyProf Economics of Tech

GSB Stanford

Ege ErtemDirector, New Devices

Intel Corporation

Joe ForbesFounder & CEOCausam Energy