Hawati Janor

Center of Inclusive and Sustainable Development

Faculty of Economics and Management,

UKM

DISRUPTIVE TECHNOLOGY:

INTRODUCTION

• Clayton Christensen The Innovator’s Dilemma, 1997.

• Disruptive technologies have been around us even before Clayton

Christensen (a Professor at Harvard University) created the term in his 1997

book. It is exponentially growing every year and drastically changing human

life, and faster than we can think.

• According to data from McKinsey study, a dozen technologies, including

genomics, energy storage, and automation, will drive major economic and

societal transformation in the next several years. With a potential economic

impact between $14 trillion and $33 trillion a year in 2025, the value of these

emerging technologies could constitute one third of global GDP.

DISRUPTIVE TECHNOLOGY:

INTRODUCTION

• Disruption Definition: disturbance which interrupt an

event or activity

• Disruptive technologies: a developing innovation that

unexpectedly interrupts or overturn an already

established approach or practices.

• WhatIs.com: one that displaces an established

technology and shakes up the industry or a ground-

breaking product that creates a completely new industry.

Examples of Disruptive technology

• 1876, invented by Alexander Graham Bell.

• To adapt to this fascinating device, households and businesses installed telephone landlines.

Telephone

• 1990, mobile phones were introduced, they came up with a much different future and created a new, competing market

• Disrupt/ overturn the already established telephone technology, forcing telephone companies to change their business models or if not, becoming obsolete.

Mobile phones

• Mobile phone technology is changing fast.

• Now smartphones are largely replacing cell phones

• Are you sure you are keeping pace with the trends?

Smartphone

Examples of Disruptive Technologies

McKinsey 12 examples of Disruptive Technologies

5 Stages of Disruption: John Straw (entrepreneur)

• Disruption as an opportunity

5 stages of disruption

• McCracken, 2013, The Five Stages of Disruption Denial, Harvard Business Review

• Stage 1. Confusion: We don’t quite get it. We sign up for the new app• Stage 2: Repudiation: You are not alone who don’t get it: Social life

companion• Stage 3. Shaming. This is when we are so persuaded that we’re right and

the new innovation is wrong that we are prepared to make fun of the credulous among us.

• Stage 4. Acceptance. By this time, the innovation is taking off. It’s clear now even to us that new app is here to stay.

• Stage 5. Forgetting. This is where we destroy the evidence. Now we are inclined to act as if we always understood and approved of a world installed with new innovation.

ADAPTING TO DISRUPTIVE TECHNOLOGY

• With the technology advances at ever faster rates, ready or not, they will impact human life. To meet the coming of technology we are facing with the statements such as:

• exponential growth in disruptive technologies, • business landscape will shift faster than any year previous, • Market-leading companies face a stark choice: disrupt or be disrupted.

• So how do we prepare for this uncertainty of the future?, and -what are the benefits and challenges involved?

TRANSFORMATIONAdaptability, innovation

& transcendence

ADAPTING TO DISRUPTIVE TECHNOLOGY, cont.Many technology companies and professional services institutes have provided suggestions on how to deal with these questions.

EY Global, a multidisciplinary professional services organization has identified five important ways to respond to disruption from the analysis of global megatrends and interactions with the global innovation community:

• 1.Ask — and be asked — uncomfortable questions: Use catalytic questions to identify your knowledge gaps. If the questions make you feel uncomfortable, you’re doing it right. If you feel comfortable, you’re not there yet. Keep working at the questions until the feeling of comfort goes away.

• 2. Plan for alternative futures: disruption can be anticipated but not predicted. Formulate alternative through a process which includes i. observe others: Look for examples of disruption in other sectors and understand what they could mean to you; ii. Formulate alternative scenarios for the future, treating scenario planning as a process of continual revision, not a one-off exercise; iii. Create urgency and iv. Educate the rest of the organization about the implications of disruptive scenarios; v. Use scenarios to structure early innovation and ideation.

• establish a position of leadership and influence before being disrupted.

• Get connected.

• Siemens (2009) highlights the importance of control of information and interaction,

• rather than assuming that new technology takes away their role, universities should seek to understand how they can reconfigure themselves in ways that might allow for new methods of engagement.

ADAPTING TO DISRUPTIVE TECHNOLOGY, cont.

• 3. Let purpose be your guide• Focus on the purpose as main element. • Have a clear corporate purpose to choose technologies to be included in the

innovation pathways, a clear corporate purpose is very important.

• 4. Establish a disruption awareness strategy• Disruption can’t be predicted and once it has arrived, it is too late.• to establish an awareness strategy to detect disruption’s earliest signals. • Everyone in the organization should be involved listening to those warning

signals. • to scouting for the new technologies, which can be a leading indicator of

disruption, monitor key financial metrics for deterioration. However, there are instances where financials can also be a lagging indicator.

ADAPTING TO DISRUPTIVE TECHNOLOGY, cont.

• 5. Pilot and fail quickly• The pace of disruption demands rapid innovation. Taking a piloting approach

that embraces failure can help accelerate innovation objectives.

• Start by initiating pilots at the periphery of your business, focusing on opportunities with a clearly defined business problem and buyer.

• But make sure that the pilot is connected to the center of the organization and linked to company’s leadership and overarching strategy.

DISRUPTIVE TECHNOLOGIES IN HIGHER EDUCATION• For higher education, understanding what is going on is one of the

most far thinking implications of the researcher’s work. In order to understand, the most frequently asked questions includes:

• how disruptive innovation is changing higher education?,

• How and when can universities take advantage of innovations to improve their entire ecosystem?

• how does your university face the challenges posed by disruptive education technologies?

How to organize and preserve the digital data?

Strategic planning

implementing Diffusing

Parry (2009):

Disruptive Technology in higher education, cont..• Clayton M. Christensen & Henry J. Eyring: the Innovative University: Changing the DNA of

Higher Education (2011) published by American Council on Education.

• The book leverage on Christensen's theory of disruptive innovation to the field of higher education

• explores how and why universities must change to ensure future success • new online institutions and learning tools are challenging the future of traditional

colleges and universities. • The book shares how universities can find innovative, less costly ways of performing

their uniquely valuable functions and ensure their ongoing economic vitality, thereby saving themselves from decline and possible disruption.

• It reveals how the traditional university survives by breaking with tradition, but thrives by building upon what it’s done.

Key concepts include:

• A disruptive innovation brings to market a product or service that isn't as good as the best traditional offerings, but is less expensive and easier to use.

• Online learning is a disruptive technology that is making colleges and universities reconsider their higher education models.

How Universities Drive Innovation Farnam Jahanian, the President of Carnegie Mellon University outline 4 ways how universities are driving innovation in the World Economic Forum 2018.

• 1. Fostering entrepreneurship• embracing entrepreneurship as part of the academic experience, creating

cultures where innovative thinking is inspired and nurtured. It seems that no matter what field they study, students come to college seeking to make a difference in society through start-ups, social entrepreneurship, and other ventures of their own creation.

• At a time when societal challenges are demanding discoveries at the intersections of diverse disciplines, fostering a culture of entrepreneurship is one of the most powerful ways that universities act as economic accelerators.

Note: Such spirit and actions are also being actively implemented in our countries, Malaysia and Indonesia. We can see students are actively involved in the entrepreneurship programs. At Faculty of Economics and Management, UKM we have the Bachelor and Master in Entrepreneurship and Innovation. We also provide platforms for students to apply the theory they learn in class by setting business incubators, stalls concepts at the faculty.

How Universities Drive Innovation, cont..

• 2. Encouraging collaboration with the private sector

• To develop new partnerships with leading companies, foundations, and other research-intensive institutions.

• transferring knowledge from lab to practice & provide critical funding for talented faculty and students to pursue foundational research, enable students and faculty to exchange ideas with the very best minds inside and outside the academy, and perhaps most importantly, help to prepare students to be citizens of a rapidly changing world.

• Leveraging on Collaboration Platforms, one of the disruptive technologies is an effective way to enhance collaboration and networking among universities. Education and innovation consortium NMC 2015 Higher Education report points to this trend.

• An NMC report shows a growing number of universities forging collaborative strategic alliances, collaborating in technology, research and shared values.

• They do this by forming local and international strategic alliances and consortia. One of the successful example mentions is the Open Cloud Consortium (OCC). This entity enables professors and researchers to share vast amounts of data. The departments at the university are in constant consultation, and the head of the faculty monitors changes in workload and evaluates its impact, while the staff discusses concerning workloads and reports any difficulties and variations.

•

• 3

How Universities Drive Innovation, cont..

3.Promoting diversity and inclusion

• As this economic transformation quickens, it is critical that universities continue to focus on incorporating diverse perspectives into our work.

• In the US, expanding the opportunity for diverse voices, especially in STEM-related jobs is necessary to meet the economic demand posed by tech-driven economy.

• At UKM, we also offer the opportunity to study today’s most relevant disruptive technologies through our Nano elective courses offered at the Science and Engineering faculties. Courses on topics like virtual and augmented reality, AI and machine learning, robotics, and genome editing, allowing you to explore the most exciting forces influencing the future of business and society are offered at the Faculty of Technology and Information Science.

4. Exploring the nexus of technology and society

• Technology cannot guarantee to automatically benefit humanity.

• to provide work with the community and stakeholders to ensure the destination is designed for people as well as machines.

• to make sure these scholars are working side-by-side with the applied researchers and technologists who are driving the revolution.

UKM: Preparing for 4IR

UKM: Preparing for 4IR

• Universiti Kebangsaan Malaysia (UKM) is committed in ensuring that it is well-equipped to face the 4th Industrial Revolution (4IR), said UKM Deputy Vice-Chancellor of Research and Innovation, Prof Dr Mohd Ekhwan Toriman.

• The university, he said, is prepared to integrate the elements of 4IR into its seven Grand Challenges.

• “The World Economic Forum clearly demonstrates the advent of 4IR which affects nearly every industry around the world and drastically change how businesses operate.

UKM: Preparing for 4IR

• 1. Set up 112 Task force - in line with Higher Education Ministry’s aspiration to accelerate the revolution.

• Research, Teaching and learning: • had made it compulsory for all students across all faculties (including management,

economics and accounting program) in the upcoming intake to take up a data analytics course.

• Collaboration

• collaborating with the Higher Education Ministry and Research Triangle Institute (RTI) - a non-profit organisation from North Carolina in the United States.

UKM: Preparing for 4IR, cont..

• “Currently the ministry is still seeking the most suitable and latest mould for our country to progress and improve the quality of our industries as well as our human capital,” he said, adding that the varsity would also be focusing on digitised economy whereby students would be required to study entrepreneurship.

• Entrepreneurship;

• strategic partnerships with various bodies from public and private sectors as well as world-class universities,” he said adding that last year, UKM students had formed 320 links with industry players.

UKM: Preparing for 4IR, cont..

• Restructuring the faculties. “Previously the faculties were defined according to disciplines but we have rearranged them based on issues and their scopes. Some of the issues that we are facing in the country have been included in ‘the grand challenge”.

• Grand Challenge: The current grand challenge, which UKM researchers are focusing on, include contemporary Islam, B40 empowerment, STEM (Science, technology, engineering and mathematics), sustainable environment, a healthy Malaysia, Aseanintegration and the development of Malay intellect.

FACULTY OF ECONOMICS AND

MANAGEMENT

Center of Inclusive and Sustainable Development

Center of Governance, Resilience and Accountability

Center of Value Creation and Human Well-Being

Center of Global Business and Digital Economy

UKM collaborate with Celcom Axiata to Develop Students’ Entrepreneurship Potential

To cooperate on research development of hearing aids by telephone, training of graduates with entrepreneurial skills and job placements for graduates.

Five Indonesia Higher Education Institution in Bangka Belitung Islands Chose UKM to make Strategic Collaboration

The five institutions are Universitas Bangka Belitung, Sekolah Tinggi Agama Islam Negeri (STAIN) Sheikh Abdurahman Siddik (SAS) Bangka Belitung, SekolahTinggi Ilmu Ekonom (STIE) Pertiba, Sekolah Tinggi IlmuHukum (STIH) Pertiba, and Sekolah TinggiKeguruan dan Ilmu Pendidikan(STKIP) MuhammadiyahBangka Belitung.

UKM Partners with Maxis to Provide Campus-wide WiFi Access for Total Connectivity

• collaborating to enable UKM’s 13 campuses nationwide to be connected via Maxis’ WiFi services.

• The 30,000-strong UKM student community can enjoy an “Always-On” and “Worry Free” experience anytime, anywhere on the best 4G LTE network in the country.

• In addition to the WiFi in campus, selected UKM buses that ply the Bangi campus route have also been fitted with free WiFi on board to ensure that students in particular are also connected while on-the-go.

UKM (Faculty of Economics & Management) exchanges memorandums at GBS forum, 2016 • to strengthen the industry academia partnerships in the Global

Business Services (GBS) industry, several memorandums were exchanged between University Kebangsaan Malaysia (UKM) and industry leaders as well as educational institutions

• to introduce the GBS@UKM programme as the pioneer of GBS centre of knowledge generation in Asia.

• MOUs between UKM and Talent Corp; Malaysian Digital Economy Corporation.

Concerns and Moving forward

• This faces deans and academic directors with important challenges. On one hand collaboration is key for benefitting students trough innovation. And at the same time they need to collaborate to nurture local academic ecosystems.

Concerns and Moving forward, cont..

• Impact on career.

• Advances in technology and automation could highly affect many traditional career paths.

• A report from consultancy firm PricewaterhouseCoopers: nearly 40% of U.S. jobs could be automated by 2030. We see that Uber proved a disruptive force for taxi firms, autonomous vehicles are set to supersede it—not only changing the way we get from destination A to B, but also revolutionizing industries like shipping and freight.

• Mike Grandinetti, Global Professor of Innovation, Entrepreneurship and Marketing at Hult International Business School highlight the relevance of the human soft skill in the era of advance technology. :

• “As the Fourth Industrial Revolution spreads globally, we’ll see business disruption accelerate faster than can be imagined. It is certain to be the most disruptive period in the history of business,”

• Perhaps the best way to future-proof your skills for the Fourth Industrial Revolution is by developing the capacities that are simply beyond the reach of robots. While a machine can analyze data at a rate unfathomable for the human brain, businesses still need leaders who are ethical, persuasive and empathetic—who have mastered the nuance of human interaction.

• According to the report from The World Economic Forum’s Future of Jobs, today’s disruptive innovations mean that tomorrow’s critical business knowledge doesn’t exist yet and so do our future career might not exist yet.

Concerns and Moving forward, cont..

• Human and machines: Philosophical issue

• activities and decisions that were once undertaken by people will be replaced or by machines, then the issue raised is what it means to be human. This issue has been addressed in 1962 by computing pioneer Douglas Engelbert, whose inventions include the mouse, windows and cross-file editing. He wrote the “augmenting human intellect”.

• new research field to be explored integrating expertise in various field :psychology, ethics, management, technology etc and , thinking about how people can more rewardingly work alongside intelligent machines and systems.

Concerns and Moving forward, cont..

• Legacy structures

• In order for universities to successfully adapt and, thereby, avoid being disrupted, legacy structures within most universities will increasingly become challenging.

• Preparing for the future means altering the core services. Universities may ask themselves:

• How will technology affect our role in developing economic policies?• How will it impact our stakeholders?• Will our staff and academician need assistance, education, training?• Will our staff, academicians and others even exist as an occupation in the future?• Does our management and administrative model need to change?

• As the world’s leaders in industry, government, and education engage on the future of work, universities must play a committed role to addressing these challenges and seizing the opportunities.

Concerns and Moving forward, cont..

• Others• Cyber Security• Internet failure• Digital illiteracy (Technology/Digital Exclusion)• Infrastructure

To Succeed, To Adaptis To Connect

Technology, People, Processes, Community, and Environment

to your mission effectively.

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