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
Inte
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/W
ebCh
at
Soci
al M
edia
Elec
tron
ic
Mes
sagi
ng
Smar
tpho
ne
Appl
icat
ion
Tele
phon
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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