How to prepare for the technological breakthroughs megatrend, and the eight technologies to start with 2017
- Artificial intelligence (AI): Software algorithms that are capable of performing tasks that normally require human intelligence, such as visual perception, speech recognition, decision-making, and language translation. AI is an “umbrella” concept that is made up of numerous subfields such as machine learning, which focuses on the development of programs that can teach themselves to learn, understand, reason, plan, and act (i.e., become more “intelligent”) when exposed to new data in the right quantities.
- Augmented reality (AR): Addition of information or visuals to the physical world, via a graphics and/or audio overlay, to improve the user experience for a task or a product. This “augmentation” of the real world is achieved via supplemental devices that render and display said information. AR is distinct from Virtual Reality (VR); the latter being designed and used to re-create reality within a confined experience.
- Blockchain: Distributed electronic ledger that uses software algorithms to record and confirm transactions with reliability and anonymity. The record of events is shared between many parties and information once entered cannot be altered, as the downstream chain reinforces upstream transactions.
- Drones: Air or water-based devices and vehicles, for example Unmanned Aerial Vehicles (UAV), that fly or move without an on-board human pilot. Drones can operate autonomously (via on-board computers) on a predefined flight plan or be controlled remotely. (Note: This category is distinct from autonomous land-based vehicles.)
- Internet of Things (IoT): Network of objects — devices, vehicles, etc. — embedded with sensors, software, network connectivity, and compute capability, that can collect and exchange data over the Internet. IoT enables devices to be connected and remotely monitored or controlled. The term IoT has come to represent any device that is now “connected” and accessible via a network connection. The Industrial IoT (IIoT) is a subset of IoT and refers to its use in manufacturing and industrial sectors.
- Robots: Electro-mechanical machines or virtual agents that automate, augment or assist human activities, autonomously or according to set instructions — often a computer program. (Note: Drones are also robots, but we list them as a separate technology.)
- Virtual reality (VR): Computer-generated simulation of a three-dimensional image or a complete environment, within a defined and contained space (unlike AR), that viewers can interact with in realistic ways. VR is intended to be an immersive experience and typically requires equipment, most commonly a helmet/headset.
- 3D printing: Additive manufacturing techniques used to create three-dimensional objects based on digital models by layering or “printing” successive layers of materials. 3D printing relies on innovative “inks” including plastic, metal, and more recently, glass and wood.
We believe that these technologies will shake things up across all five aspects of your business model – some in very beneficial ways, and some in quite challenging ways, as seen in the following snapshots.
- Strategy: If strategy is about defining “what business to pursue,” then these technologies are opening up a slew of new opportunities and corresponding considerations.
- Customer Engagement: The eight key technologies are already reshaping almost every dimension of companies’ interactions with their customers, from sales and marketing to billing and after-sales support.
- Operations: Artificial intelligence, robots, drones, and 3D printing can all improve operational efficiency and provide significant competitive advantage.
- People and talent: The eight technologies are creating brand-new job categories, but a worrying consequence may be slower job growth. Concurrently, new technologies beget new companies and new job categories.
- Compliance: This is an often overlooked aspect of the business model. We believe the shortlisted technologies will see many companies scrambling to adapt to – and trying to influence – the resulting regulatory landscapes. The regulators themselves are likely to be in a catch-up mode for a while.