1.
{
Disruptive Technology
Change is the new norm
Adapt or die
A Meeting of Minds
@DavidMcClelland
5 June 2014

2.
 Technologist – 18 years IBM, DELL, ING,
BTMU, C&W, Reuters, CME, Local and Central
Government, Start-up
 Journalist – Enterprise and Consumer Tech,
BBC, Computing, Computer Weekly, Wired
 Broadcaster – Consumer: BBC Rip off Britain,
ITV Daybreak, CNN, Planet of the Apps
David McClelland

3.
{Digital Revolution
Disruptive
Technology

4.
 Creates new market, displaces existing market
 Technology as an enabler for accelerated disruption
 Google: destroys more value than it creates (for itself)
 Power to the people - consumers capture majority of
economic surplus
Digital Disruption

5.
“Successful companies can put too
much emphasis on customers’ current
needs, and fail to adopt new
technology or business models that
will meet customers’ unstated or
future needs. Such companies will
eventually fall behind.”
Clayton M Christensen
Dilemma

6.
{ {Disrupted
PCs
CRT TVs
Wood, Metal, Glass
Film Cameras
Rail
Encyclopedia Britannica
Disruptor
Tablets/Smartphones
LCD TVs
Plastics
Digital Cameras
Cars
Wikipedia
Disrupted

7.
“With active engagement and a will to invest in the
future, there can still be peace between the disruptor
and disrupted”
Top Ten Challenges for Investment Banks
Accenture 2014
Collaborated

8.
{Today’s view of Tomorrow
Technologies

9.
McKinsey Global Institute
Disruptive Technologies: Advances that will
transform life, business and the global
economy
Tomorrow

10.
 Smartphone
 Tablet
 Data
 Connected staff
 Connected customer
Mobility & Mobile Internet

11.
“The idea that every object we own, no matter how
mundane, is connected to the internet and can be
monitored and manipulated via the internet, whether
it’s a toaster, a lightbulb or your car”
Christopher Mims, Quartz
Internet of Things

12.
Economies of scale:
 Compute cost decline 33% annually
 Storage cost decline 38% annually
 Bandwidth cost decline 27% annually
Lowers barriers to entry = anybody can disrupt
Cloud

13.
Data by numbers:
 2.5 quintillion bytes per day
 90% created in last two years
 80% unstructured data
 Only 10% of data read more than once
Source: IBM
Data

14.
“Just as the telescope enabled us to comprehend the
universe and the microscope allowed us to understand
germs, the new techniques for collecting and analyzing
huge bodies of data will help us make sense of our
world in ways we are just starting to appreciate”
Mayer-Schonberger, Cukier
Big Data

15.
Value:
 Single Customer View
 Predict patterns
 Identify opportunities
 Personalised advice
Get the edge: leverage existing data to know your
customers better than anybody else
Analytics: Digital Intelligence

16.
 Nest – estimated 2bn kWh energy saved
 Automatic – saves 30% fuel cost
 Wealthfront Investment Management
+ 4.6% return vs average mutual fund
Pattern Driven

17.
 Better decision making
 Humans can’t keep up
 Cognitive computing
 Expands human cognition
 Learns with use
 Interacts naturally
Knowledge Automation

18.
 Advanced Robotics
 Advanced Materials
 3D Printing
 Energy Storage
 Next-Gen Genomics
 (Near-) Autonomous Vehicles
 Advanced Oil and Gas Exploration and Recovery
 Renewable Energy
Other Technologies

19.
{Reinforcing each other and
potentially driving greater impact
Combinations of
Technologies
Multiply Impact

20.
 Top down / waterfalls too slow
 Online demands faster response
 Good cloud fit
Agile Development

21.
 D
Analogue vs Digital Culture

22.
 Target Target
 70 million – records stolen
 40 million – credit/debit cards
 $200m – bank cost to reissue cards
 $53.7m – income from selling card details
 $55m – executive settlement to CEO Steinhafel
 46% drop in profits
Secure, Hack, Fraud

23.
 Heartbleed Bug
 eBay
 LinkedIn
 Target
 Spotify
 Gameover Zeus
“This is the new norm”, FBI
Secure, Secure, Secure

24.
 Built for the internet
 Sound technology platform
 Infrastructure investment
Cryptocurrencies

25.
 Cut out the middle man
 DIY attitude – willing to take on some risk
 Direct engagement
 Online knowledge isn’t a privilege
P2P Attitudes

26.
 Airbnb – connects tourists with destinations
 RelayRides – connects drivers with car owners
 Lending Club – connects investor to borrower
 Paypal
 M-Pesa
P2P Disrupts

27.
 #FinTech
 Nutmeg
 Wealthfront (US)
 OpenFin
Financial Technology

28.
 Still space for Face to Face
 Cs Commerce Platform
 Content
 Community
 Commerce
Commerce Got Social

29.
 ‘Connected customer’
transformation
 CSAT from lowest to
highest
Commonwealth Bank

30.
 Generational Attitudes
 Baby Boomer - Collateral
 Gen X - Convenience
 Gen Y – Contact
 Customer Centricity
 User Interface
 Far less friction
 Far more convenience
Attitudes

31.
 Know your customer > Better than anyone else
 Know your limitations > Embrace Innovator
 Still space for face to face > Augment online
Takeaways

32.
@DavidMcClelland
www.davidmcclelland.co.uk
Thank you