{
Disruptive Technology
Change is the new norm
Adapt or die
A Meeting of Minds
@DavidMcClelland
5 June 2014
 Technologist – 18 years IBM, DELL, ING,
BTMU, C&W, Reuters, CME, Local and Central
Government, Start-up
 Journalist – E...
{Digital Revolution
Disruptive
Technology
 Creates new market, displaces existing market
 Technology as an enabler for accelerated disruption
 Google: destroys m...
“Successful companies can put too
much emphasis on customers’ current
needs, and fail to adopt new
technology or business ...
{ {Disrupted
PCs
CRT TVs
Wood, Metal, Glass
Film Cameras
Rail
Encyclopedia Britannica
Disruptor
Tablets/Smartphones
LCD TV...
“With active engagement and a will to invest in the
future, there can still be peace between the disruptor
and disrupted”
...
{Today’s view of Tomorrow
Technologies
McKinsey Global Institute
Disruptive Technologies: Advances that will
transform life, business and the global
economy
Tomo...
 Smartphone
 Tablet
 Data
 Connected staff
 Connected customer
Mobility & Mobile Internet
“The idea that every object we own, no matter how
mundane, is connected to the internet and can be
monitored and manipulat...
Economies of scale:
 Compute cost decline 33% annually
 Storage cost decline 38% annually
 Bandwidth cost decline 27% a...
Data by numbers:
 2.5 quintillion bytes per day
 90% created in last two years
 80% unstructured data
 Only 10% of dat...
“Just as the telescope enabled us to comprehend the
universe and the microscope allowed us to understand
germs, the new te...
Value:
 Single Customer View
 Predict patterns
 Identify opportunities
 Personalised advice
Get the edge: leverage exi...
 Nest – estimated 2bn kWh energy saved
 Automatic – saves 30% fuel cost
 Wealthfront Investment Management
+ 4.6% retur...
 Better decision making
 Humans can’t keep up
 Cognitive computing
 Expands human cognition
 Learns with use
 Intera...
 Advanced Robotics
 Advanced Materials
 3D Printing
 Energy Storage
 Next-Gen Genomics
 (Near-) Autonomous Vehicles
...
{Reinforcing each other and
potentially driving greater impact
Combinations of
Technologies
Multiply Impact
 Top down / waterfalls too slow
 Online demands faster response
 Good cloud fit
Agile Development
 D
Analogue vs Digital Culture
 Target Target
 70 million – records stolen
 40 million – credit/debit cards
 $200m – bank cost to reissue cards
 $53...
 Heartbleed Bug
 eBay
 LinkedIn
 Target
 Spotify
 Gameover Zeus
“This is the new norm”, FBI
Secure, Secure, Secure
 Built for the internet
 Sound technology platform
 Infrastructure investment
Cryptocurrencies
 Cut out the middle man
 DIY attitude – willing to take on some risk
 Direct engagement
 Online knowledge isn’t a priv...
 Airbnb – connects tourists with destinations
 RelayRides – connects drivers with car owners
 Lending Club – connects i...
 #FinTech
 Nutmeg
 Wealthfront (US)
 OpenFin
Financial Technology
 Still space for Face to Face
 Cs Commerce Platform
 Content
 Community
 Commerce
Commerce Got Social
 ‘Connected customer’
transformation
 CSAT from lowest to
highest
Commonwealth Bank
 Generational Attitudes
 Baby Boomer - Collateral
 Gen X - Convenience
 Gen Y – Contact
 Customer Centricity
 User I...
 Know your customer > Better than anyone else
 Know your limitations > Embrace Innovator
 Still space for face to face ...
@DavidMcClelland
www.davidmcclelland.co.uk
Thank you
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Change is the New Norm. Adapt or Die. Disruptive Technology (and Technology that Disrupts) (June 2014)

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A presentation delivered by David McClelland for the UK Wealth Management industry at the 'A Meeting of Minds' conference at the Berkeley Hotel in London, 5th June 2014.

Lots of notes in the accompanying speaker notes - do take a look here.

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  • 1996 – Reuters in London, technical role
    2000 – IBM
    2005 – Freelance Consultant, worked on IT major transformation projects in US Chicago Mercantile Exchange, Bangkok with Reuters, Amsterdam with ING and DELL
    2011 – Joined technology startup; 2013 acquired by IBM > we’ll talk about this later

    I’ve been a Consulting Editor at Computing, contributor to Wired, Computer Weekly, CNET; for the BBC I am an expert in N&CA, Rip Off Britain etc;
    Host consumer technology show Planet of the Apps (Challenge TV, Virgin Planes!), write and host shows online for various technology brands, pop up on the news for ITV, CNN, C4 etc

    Disclosure – IBM is a current client of mine, I may use some of their stats today, among many others, but I’ve no intent to endorse their products or services here today
  • Google destroyed more value than it created – Richard Dobbs, Director at McKinsey Global Institute

    Lending Club CEO Renaud Laplanche: History has show that it’s difficult for incumbent providers to drive costs down, adopt new technologies and processes as *quickly* as the innovators
  • Could easily add – Movie rentals (Blockbuster) disrupted by the likes of Netflix, Amazon, iTunes (++ convenience, ++ choice than Blockbuster, advice through trailers, ++ cost – one movie rental equivalent of one month’s subscription to Netflix (still model with iTunes and some Amazon). It will be interesting to keep an eye on Sky, and how it fights to maintain its position against cheaper services – for movies certainly, Sports is an interesting high value/high risk battlefield too (eg BT Sport).

    Coming back to movies, the PwC Entertainment and Media Outlook report earlier this week shows revenue from online services will overtake box office revenues by 2018.
  • Ref: http://www.accenture.com/microsites/10-challenges-2014/Pages/challenge08.aspx

    Or: keep your enemies close
  • Dive into some of the technologies frequently bandied around as ‘disruptive’.
  • Report is from 2013, well worth a read – management summary is still very comprehensive. It pulls out 12 different disruptive technologies that will have impacts on various sectors, along with some challenger technologies

    Link: http://www.mckinsey.com/insights/business_technology/disruptive_technologie

    I’m going to add my own too – different spins, some with more relevant to financial services


  • MGI has 12 disruptive technologies in its report, here just for completeness are some others that we’ll not be covering in detail today

    I’ve a few more of my own that I want to cover here – not all of them fit the ‘disruptive technology’ definition nicely, but they do have the potential to disrupt on their own or in concert and they are all in the technology bucket.

  • To paraphrase McKinsey
  • Change is the New Norm. Adapt or Die. Disruptive Technology (and Technology that Disrupts) (June 2014)

    1. 1. { Disruptive Technology Change is the new norm Adapt or die A Meeting of Minds @DavidMcClelland 5 June 2014
    2. 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. 3. {Digital Revolution Disruptive Technology
    4. 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. 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. 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. 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. 8. {Today’s view of Tomorrow Technologies
    9. 9. McKinsey Global Institute Disruptive Technologies: Advances that will transform life, business and the global economy Tomorrow
    10. 10.  Smartphone  Tablet  Data  Connected staff  Connected customer Mobility & Mobile Internet
    11. 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. 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. 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. 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. 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. 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. 17.  Better decision making  Humans can’t keep up  Cognitive computing  Expands human cognition  Learns with use  Interacts naturally Knowledge Automation
    18. 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. 19. {Reinforcing each other and potentially driving greater impact Combinations of Technologies Multiply Impact
    20. 20.  Top down / waterfalls too slow  Online demands faster response  Good cloud fit Agile Development
    21. 21.  D Analogue vs Digital Culture
    22. 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. 23.  Heartbleed Bug  eBay  LinkedIn  Target  Spotify  Gameover Zeus “This is the new norm”, FBI Secure, Secure, Secure
    24. 24.  Built for the internet  Sound technology platform  Infrastructure investment Cryptocurrencies
    25. 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. 26.  Airbnb – connects tourists with destinations  RelayRides – connects drivers with car owners  Lending Club – connects investor to borrower  Paypal  M-Pesa P2P Disrupts
    27. 27.  #FinTech  Nutmeg  Wealthfront (US)  OpenFin Financial Technology
    28. 28.  Still space for Face to Face  Cs Commerce Platform  Content  Community  Commerce Commerce Got Social
    29. 29.  ‘Connected customer’ transformation  CSAT from lowest to highest Commonwealth Bank
    30. 30.  Generational Attitudes  Baby Boomer - Collateral  Gen X - Convenience  Gen Y – Contact  Customer Centricity  User Interface  Far less friction  Far more convenience Attitudes
    31. 31.  Know your customer > Better than anyone else  Know your limitations > Embrace Innovator  Still space for face to face > Augment online Takeaways
    32. 32. @DavidMcClelland www.davidmcclelland.co.uk Thank you

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