Disruptive technologies creating new businesses
In the second article of Innovating in a Forever recession the focus is on the disruption created by new technologies and the business and corporate challenges related with that. Businesses need to collaborate and innovation is now about a sound need to share and collaborate.
“The collaboration landscape is no longer about isolated groups of people that work together to complete a specific job. Today, enterprise collaboration extends more broadly across the organization, encouraging partnerships across teams that might not have previously worked together. What’s the reason behind this shift?
It stems from social technologies across the workforce, converting companies from a “need to know” environment to a “need to share” culture that promotes an open collaboration approach, where sharing is the norm and information control is at the discretion of the individual.” Rob Koplowitz in How Social Technologies Can Kick-start Innovation
Disruptive technologies reconfigure old businesses and create new ones. This capability for change can be found within big or small international professional groups of experts that drive to exchange findings and ideas. Examples of this include how Bill Gates invested in Apple when it was not in its best days, and how Apple and Google have shared members of their boards. Companies such as Facebook, Google, Amazon, Twitter, IBM, and Microsoft rely on networks of evangelical developers, engineers, and IT teams around the world advocating and developing solutions and products.
In addition, firms are starting to use internal social networking tools, such as Yammer and Chatter, to encourage collaboration, discover talent and cut down on pointless e-mails. Youngsters are happy to embrace it, but older managers may be less keen. The use of social media within companies has been disrupting traditional management techniques, particularly in strongly hierarchical firms.
The main innovation drivers are based upon open collaboration practices, and even competitors or rivals sometimes have to share intelligence and industry standards. Social technologies are key to a sound platform for innovative action. However, any sustainable social technology adoption needs to be accompanied by a solid strategy and business change management set up. It is imperative that this process has a solid focus and down to earth insight about a given industry, its goals and its core community.
Trends for transformation by Brian Solis
Disruptive Innovation and the relation with Disruptive technology.
“The theory of disruptive innovation, introduced in these pages in 1995, has proved to be a powerful way of thinking about innovation-driven growth. Many leaders of small, entrepreneurial companies praise it as their guiding star; so do many executives at large, well-established organizations, including Intel, Southern New Hampshire University, and Salesforce.com.
Unfortunately, disruption theory is in danger of becoming a victim of its own success. Despite broad dissemination, the theory’s core concepts have been widely misunderstood and its basic tenets frequently misapplied. Furthermore, essential refinements in the theory over the past 20 years appear to have been overshadowed by the popularity of the initial formulation. As a result, the theory is sometimes criticized for shortcomings that have already been addressed.
There’s another troubling concern: In our experience, too many people who speak of “disruption” have not read a serious book or article on the subject. Too frequently, they use the term loosely to invoke the concept of innovation in support of whatever it is they wish to do. Many researchers, writers, and consultants use “disruptive innovation” to describe any situation in which an industry is shaken up and previously successful incumbents stumble. But that’s much too broad a usage.” What Is Disruptive Innovation? by Clayton M. Christensen, Michael E. Raynor, Rory McDonald
The concept of Innovative Innovation, coined by Profess Clayton M Christensen is somehow different from the concept of Disruptive technology. There has been a big discussion around these topics with some authors criticising the model. But the model is very clear and people should be out of trying to change something that is clear to adpat to other ideas and vision.
The success of the concept made it somehow a victim of its own when people try to use it to justify any changes in technology that is changing industries and society. Case of it is the polemic around Uber.
Let’s consider Uber, the much-feted transportation company whose mobile application connects consumers who need rides with drivers who are willing to provide them. Founded in 2009, the company has enjoyed fantastic growth (it operates in hundreds of cities in 60 countries and is still expanding). It has reported tremendous financial success (the most recent funding round implies an enterprise value in the vicinity of $50 billion). And it has spawned a slew of imitators (other start-ups are trying to emulate its “market-making” business model). Uber is clearly transforming the taxi business in the United States. But is it disrupting the taxi business?
According to the theory, the answer is no. Uber’s financial and strategic achievements do not qualify the company as genuinely disruptive—although the company is almost always described that way. Here are two reasons why the label doesn’t fit. What Is Disruptive Innovation? by Clayton M. Christensen, Michael E. Raynor, Rory McDonald
What is critical to consider is that innovation is a shift a bridge over different technologies and somehow an evolution of adaptability and dealing with change, crisis and the continuous recession concept of Seth Godin. Therefore the important thing about Disruptive innovation is that is a theory that helps explain a given moment in tech and innovation change that happened around the 1990s.
At the moment we are accelerating the innovation DNA and disruptive technologies are somehow a new evolution of the concept. As we move towards one world of AI and algorithm driven economy the concept of innovation keeps on changing and somehow the best way to look at innovation is as a capacity to do bridges between behaviour, data and technology evolution.
A world changed by social business technologies, becoming Open
“Open business represents a concept of doing business in a transparent way by intimately integrating an ecosystem of participants, collaborating in public space…Open business structures make contributors and non-contributors visible such that the business benefits are distributed accordingly…They activate personal engagement and productivity by benefiting the contributors and producers that they can live from it and helping the clients to reduce their costs.” Open Business, Wikipedia
The great virtue of social technologies is that they break down the barriers between companies and their customers. This allows firms to gather significant volumes of data and information, and this is therefore the best way available to interact with customers. However this lack of barriers does also open businesses to criticism and to direct confrontation from customers and any person dealing with a brand, product or service.
On arriving here any savvy company realises that needs to be transparent to some degree. The open web is facilitating conversations in an astonishing way. Any company, whether a start-up or the biggest corporation in the industry, now has to regularly monitor social media insights to find out what their customers really think about them, their products, and services. It will also have to evangelise key influential people and could even utilise social media as a platform for launching new products, and services. And there is no doubt that Social Media also allows companies to respond and adapt to customer complaints quickly, and respond with answers and solutions.
More information and data from social media and analytic tools can be useful, but only if companies can understand and interpret it. It is important to remember that users, customers and workers are already overloaded by numbers, stats and reports: 62% say that the quality of what they do is affected in some way because they cannot make sense of the full scope of data they already have, according to Capgemini. This will only get worse: the data deluge is expected to grow more than 40 times by 2020. But of course this will open a lot of opportunities for companies that do manage to navigate through this data deluge.
The value of anything including commodities, as has been the case across history, is largely determined by rarity and reach. The more people that like a specific product, then the less attention influencers will pay to that product if they are in pursuit of the next big thing. The more people you “friend” or even make acquaintances with, the less meaning such connections have. As communication and reach grows ever easier, the important thing is detecting the next big thing, the golden spots of useful information, new products, services, and websites in the howling hurricane of noise and data.
Social technologies are replacing old industries with easier usability and design. Amazon absorbed most of the booking industry because they understood the shift of knowledge, the long tail process, and the new needs of users in the way they read books, faster access to it and without barriers. eBay or Best Buy have been absorbing large amounts of the retail industry because they facilitate access to products and democratised prices. The opportunity is there to fascinate an easier life for customers and users with products or services that create a WOW factor, but that ultimately are useful and faster to adopt, use, learn, and engage with. It is in this space that new companies can innovate and disrupt old business faster than ever.
Have a look at this interesting Social Technologies Infographic (SoTech Infographic V1.0)
As Marc Andreessen states in Why Software Is Eating The World:
“More and more major businesses and industries are being run on software and delivered as online services—from movies to agriculture to national defence. Many of the winners are Silicon Valley-style entrepreneurial technology companies that are invading and overturning established industry structures. Over the next 10 years, I expect many more industries to be disrupted by software, with new world-beating Silicon Valley companies doing the disruption in more cases than not.”
Innovating in a forever recession Part 1 – Defining “Forever Recession”
Innovating in a forever recession Part 3: Why the social media industry is recession-proof
Dinis Guarda is an author, academic, influencer, serial entrepreneur, and leader in 4IR, AI, Fintech, digital transformation, and Blockchain. Dinis has created various companies such as Ztudium tech platform; founder of global digital platform directory openbusinesscouncil.org; digital transformation platform to empower, guide and index cities citiesabc.com and fashion technology platform fashionabc.org. He is also the publisher of intelligenthq.com, hedgethink.com and tradersdna.com. He has been working with the likes of UN / UNITAR, UNESCO, European Space Agency, Davos WEF, Philips, Saxo Bank, Mastercard, Barclays, and governments all over the world.
With over two decades of experience in international business, C-level positions, and digital transformation, Dinis has worked with new tech, cryptocurrencies, driven ICOs, regulation, compliance, and legal international processes, and has created a bank, and been involved in the inception of some of the top 100 digital currencies.
He creates and helps build ventures focused on global growth, 360 digital strategies, sustainable innovation, Blockchain, Fintech, AI and new emerging business models such as ICOs / tokenomics.
Dinis is the founder/CEO of ztudium that manages blocksdna / lifesdna. These products and platforms offer multiple AI P2P, fintech, blockchain, search engine and PaaS solutions in consumer wellness healthcare and life style with a global team of experts and universities.
He is the founder of coinsdna a new swiss regulated, Swiss based, institutional grade token and cryptocurrencies blockchain exchange. He is founder of DragonBloc a blockchain, AI, Fintech fund and co-founder of Freedomee project.
Dinis is the author of various books. He has published different books such “4IR AI Blockchain Fintech IoT Reinventing a Nation”, “How Businesses and Governments can Prosper with Fintech, Blockchain and AI?”, also the bigger case study and book (400 pages) “Blockchain, AI and Crypto Economics – The Next Tsunami?” last the “Tokenomics and ICOs – How to be good at the new digital world of finance / Crypto” was launched in 2018.
Some of the companies Dinis created or has been involved have reached over 1 USD billions in valuation. Dinis has advised and was responsible for some top financial organisations, 100 cryptocurrencies worldwide and Fortune 500 companies.
Dinis is involved as a strategist, board member and advisor with the payments, lifestyle, blockchain reward community app Glance technologies, for whom he built the blockchain messaging / payment / loyalty software Blockimpact, the seminal Hyperloop Transportations project, Kora, and blockchain cybersecurity Privus.
He is listed in various global fintech, blockchain, AI, social media industry top lists as an influencer in position top 10/20 within 100 rankings: such as Top People In Blockchain | Cointelegraph https://top.cointelegraph.com/ and https://cryptoweekly.co/100/ .
Between 2014 and 2015 he was involved in creating a fabbanking.com a digital bank between Asia and Africa as Chief Commercial Officer and Marketing Officer responsible for all legal, tech and business development. Between 2009 and 2010 he was the founder of one of the world first fintech, social trading platforms tradingfloor.com for Saxo Bank.
He is a shareholder of the fintech social money transfer app Moneymailme and math edutech gamification children’s app Gozoa.
He has been a lecturer at Copenhagen Business School, Groupe INSEEC/Monaco University and other leading world universities.