Next up in this ongoing look at disruptive scenarios is the Smart City. For the first time in history, more than 50% of the world’s population lives in cities, and that percentage moves to 70% by 2050. This visual effectively captures the dramatic move towards urbanization:
The CMO and CIO relationship discussion has been raging for months, and there is a growing perspective that IT budget ownership will shift from IT to the business. Add to this the growing list of new executive roles, and the role of CIO could look very different in the near future. I recently participated in a panel discussion on this topic at a CIO Summit attended by over 40 CIOs. I was somewhat surprised by several of the answers provided by the CIO panel, as well as those provided to poll questions posed during the session. It would indicate that those raging discussions about IT and business integration are unfounded. I thought I’d get a different perspective from someone with one of those new executive titles, so I interviewed Heidi Schwende, a Chief Digital Officer with WSI World. The following are her thoughts on similar questions.
Something Economy: seems like a popular trend – stick a word in front of economy and use it to describe the next big thing. Some of these words are: Peer, Maker, Sharing, Gig, Collaborative, Green, Circular, Mesh, Digital, Innovation, semantic, and more. This combining of words speaks to the truly disruptive nature of the early 21st century. As part of my focus on business evolution and the inevitable move towards digital enterprises, I have analyzed a number of disruptive scenarios and their implications to traditional companies. This visual describes a combinatorial innovation dynamic that spawns disruptive scenarios:
In a recent Post, Geoffrey Moore expands his Systems of Engagement (SOE) vision to focus on disruption. Many by now are familiar with his views on SOE and next generation edge architecture. Mr. Moore describes a future dominated by Social and Mobile on the client side and Analytics and Cloud on the server side. In this recent piece, the focus broadens to include the inevitable disruption facing every industry. In doing so, he introduces a new Systems of Business (SOB) concept and provides some examples that highlight the differences between SOB and SOE. These examples help visualize a distinction that Mr. Moore is making between these two systems: systems of engagement instantiate new operating models, while systems of business instantiate new disruptive business models.
A recent Report by John Hagel and others describes how the exponential improvement in technology is driving exponential innovation. The core technology building blocks (computing power, storage and bandwidth) continue unabated on a cost-performance improvement curve. These building blocks create a foundation for rapid advances in innovation, which in turn combine to create disruptive scenarios. A visual depiction of this phenomenon might look like this:
The notion of value creation and capture is a core component of business and the models that drive it. While historically viewed with a traditional product mindset, several emerging forces will alter this basic tenet of business. At its core, the way businesses create and capture value will change – the degree of change ranges from transformative to historical. The last several posts focused on the historical – namely Jeremy Rifkin’s view that we are heading towards A New Economic Paradigm. The foundation of Mr. Rifkin’s argument is a Third Industrial Revolution (TIR) platform that takes the marginal cost of production to near zero. Enabled by the Internet of Things, this General Purpose Technology (GPT) Platform could alter our landscape more dramatically than previous GPTs (steam-locomotive-printing press, electricity-auto-telephone). What happens to value creation and capture in a near zero marginal cost scenario?
The next post in this continued look at disruptive scenarios focuses on the Logistics Internet. In his recent book titled The Zero Marginal Cost Society, Jeremy Rifkin describes an Economic Paradigm Shift driven by a Third Industrial Revolution (TIR) platform. The Logistics Internet is one of three components that make up this TIR platform (communications and energy are the other two). As the three components converge, they create a general purpose technology platform that drives a third revolution. Mr. Rifkin believes we are in the early stages of an automated transport and logistics Internet, and he describes his thinking in this short Video.
In his new book, Rifkin describes the process by which suppliers and buyers connect and conduct business (Logistics) as the driver of the whole economic system. Yet, he maintains that the means by which goods and services are stored and delivered is grossly inefficient and unproductive. Rifkin suggests that a rethinking of the way we store and ship materials and goods is in order. Several supporting facts are provided in the book: