Session on disruptive technologies conducted for the Institute of Chartered Accountants, Sri Lanka on July 2014

1. Disruptive Technologies
Parakum Pathirana Principal Consultant – LOLC Technologies/ Vice President – ISACA Sri Lanka Chapter MSc, FBCS, CISA, CISM, CGEIT, CISSP, ISO 27001 LA, MCP, CHFI, QCS, ITIL

2. Disclaimer
•I’m employed in the #infosec industry, however not authorized to speak on behalf of my employer/ clients
•Everything I say can be blamed on the voices in your head

3. My credentials
•8+ years in #Infosec field
•Tutor, consultant/ advisor, auditor, head of InfoSec
•Sectors: financial, leisure, manufacturing, advertising, gov, insurance, etc.
•Crazy about #cycling, #infosec, #socialmedia
•Still learning and not an expert at anything
•lk.linkedin.com/pub/parakum- pathirana/2/a52/2a2/

4. Agenda
•Overview
•Realities
•Definitions
•Walsh & Kirchhoff (2000) Model
•Characteristics of disruptive technologies
•Disruptive Tech in IT – blast from the past
•Advantages – Disruptive Tech
•Disadvantages – Disruptive Tech
•Disruptive Tech : Performance over Time
•Potentially Economically Disruptive Technologies
•Case Studies

5. Overview
“Well-managed companies often fail because the very management practices that have allowed them to become industry leaders also make it extremely difficult for them to develop the disruptive technologies that ultimately steal away their markets” The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail (Management of Innovation and Change)... by Clayton M. Christensen (2013/11)

6. Realities
•Ongoing race in the digital economy to find better, faster and more efficient technologies
•Information technology platform should both effectively support the organization and simultaneously seek innovative technologies
•Organizations face enormous pressure to stay current in terms of innovative technology and simultaneously to maintain their competitive advantage

7. Definitions
•"innovations that create an entirely new market through the introduction of a new kind of service or product" - (Christensen and Bower,1995)
•“scientific discoveries that break through the usual product/technology capabilities and provide a basis for a new competitive paradigm” - (Kassicieh et al., 2002)
•“disruptive technologies have the potential to create a new marketplace and in consequence make other industries redundant” - (Tsui, 2001)
•“technology that changes the basis of competition by changing the performance metrics along which firms compete" - (Daneels,2004)
•"also described as risky because it challenges current technologies and is difficult to recognise especially in the early development stages - (Jones, 2005)
•"innovation diffusion” - (Clark, 2003)

8. Walsh & Kirchhoff Model (2000)

9. Characteristics of disruptive technologies
•cheaper when procuring and implementing
•simpler - consumer can use the technology without intensive training
•smaller - tech advancements
•convenient
•does not propose greater profits, but it would add value to lower margins
•forces a radical change
•can originate from outside the industry that they affect - exogenous effect
•unpredictable
•greater risks? - (Christensen, 2000)

10. Disruptive Tech in IT – blast from the past
Disruptive Tech
Displaced Tech
IP Suite
Networks that are proprietary
Mini Computers
Mainframe Computers
PCs
Mini Computers
Flash Drives
Floppy Disks
Wi-Fi
Standard Network Infrastructure

11. Advantages – Disruptive Tech
•new capabilities in a shorter development period
•can provide immediate profitability when used in the relevant environment
•implement technology on reduced costs.
•allows the user quick entry into the market place.
•provide a growth opportunity to companies that recognise the opportunities offered

12. Disadvantages – Disruptive Tech
•current production processes have to adopt new technology or discontinue production
•customers may resist new technology and therefore the business using the technology could experience failure
•demands a new way of marketing a product
•hard to quantify the commercialization of disruptive technologies
•constitutes a threat to most companies

13. Disruptive Tech : Performance over Time
•
(Christensen, 2000)

14. Potentially Economically Disruptive Tech’s
•

15. Potentially Economically Disruptive Tech’s
•

16. Potentially Economically Disruptive Tech’s
•

17. #opSriLanka

18. #MH17

19. Case Studies
•Sony
•Fuji vs. Kodak
•Blackphone vs. Blackberry

20. Q & A