34
BUSINESS DAY
C002D5556
RESEARCH & INSIGHT A WEEKLY PUBLICATION OF BUSINESSDAY RESEARCH & INTELLIGENCE UNIT(BRIU)
Friday 07 September 2018
In association with research@businessdayonline.com
08094821958
Disruptive technologies: Sink or swim ABISINUOLA DAVID-OLUSA
T
networking has also in a way disrupted communication processes. Mobile computing has disrupted the need for physical structures as people can collaborate and network virtually. After thorough study, some of the most popular emerging technologies that are disrupting or would disrupt industries are the internet of things (IoT), blockchain technology, robotics, artificial intelligence (AI) and autonomous vehicles. The Internet of Things (IoT) has become an interesting conversation in and out of the workplace and it basically talks about a system of interrelated computing devices and digital machines that have the ability to transfer data over a network without the aid of human interference. IoT devices can be used in various areas such as health, mining, waste management, manufacturing amongst many others with some of its applications including smart homes, connected cars, IoT in agriculture etc. Blockchain Technology is a decentralized distributed ledger that records transactions in a way that it is efficient and incorruptible, enhancing transparency of transactions. Previously the functionalities of blockchain centred on Bitcoin but recently, studies have been carried out to find more uses for it
and research has shown that blockchain technology can be used in the financial services, by reducing errors in storing of records through encryption, government, by ensuring that all government-sourced data are available over the internet for all citizens. A report published by McKinsey and Company stated that this form of transparency would make the world richer by $2.6 trillion. Robotics has an exciting innovation that corresponds with capable robots that have enhanced dexterity; senses and intelligence which enables them perform tasks that were previously thought to be hard and expensive to automate. Robotics technology involves developing machines that can substitute or replicate human actions and they are used to perform tasks that are hazardous to humans such as defusing of bombs. Furthermore, Artificial Intelligence is a type of machine intelligence when machines copy the cognitive functions of the human brain in learning and solving complex problems. It is the study of devices and machines that would enable them perceive their environment and take an action that maximize the chances of achieving set goals and minimizes the risk of error. Areas of application of Artificial Intelligence include programming computers to pos-
sess traits such as problem solving, reasoning, knowledge, perception and learning. Robotics is a major field that is related to artificial intelligence as robots require intelligence to handle tasks that involve mapping, motion planning, navigation and so on. Autonomous vehicles, otherwise known as driverless cars, are vehicles that are capable of sensing the environment and navigating paths without human input. This increases safety, mobility, customer satisfaction and reduces traffic collision, injuries and crime. Top companies that are taking giant strides in the area of research and creation of autonomous vehicles according to Navigant include General Motors, Waymo, Daimler-Bosch, Ford and Volkswagen. These are a few disruptive technologies and tons of research and discoveries are being made every minute to ensure more efficient work processes and quality of life is available globally. Globally, research and studies are conducted to determine how various countries can begin to fully accept the changing environment and also how existing research can be advanced. According to the Global Innovation Index 2018, Switzerland emerged the most innovative country followed by Netherlands, Sweden, United King-
12734BDN
echnology refers to the systems, methods and devices which emanate as a result of scientific knowledge being used for practical purposes. Over the years, technology has only been attributed to devices such as the mobile phones and so on but in recent times, we have seen technology driven by methods and systems rather than the devices with which they are associated. Clayton M. Christensen, a Harvard Business School professor, in his best-selling book, ‘The Innovator’s Dilemma’, separates new technology into sustaining technology and disruptive technology, where sustaining technology tends to deal with innovative products that merely improve on existing technologies while disruptive technologies seek to completely alter the operating process of businesses and companies. Most times, these disruptive technologies force businesses to reshape its process and sometimes re-strategize or else it would put them at an increasing risk of losing market share to those who have found ways to integrate technology into their business process, or go into extinction in the industry. Due to its fresh and emerging nature, disruptive technologies are usually crude, unrefined and rudimentary and as such appeal to a very limited crowd as they don’t yet have a practical application. Since time immemorial, technologies have disrupted human activities, making structures leaner and processes more efficient but not every emerging technology will alter the business landscape, although some have the potential to disrupt the norm, alter processes, and re-arrange value pools. Some of such noteworthy technologies include: Electronic mails (E-mails) transformed the mode of communication, displacing letter writing and postal services. Smartphones disrupted the use of cell phones and the advent of downloadable apps also disrupted the use of calculators, GPS devices, MP3 players, pocket camera etc. Social
dom, Singapore, U.S.A., Finland, Denmark, Germany and Ireland, making up the top ten most innovative countries. The KPMG Nigeria CEO Outlook report 2018 indicates that Nigerian CEOs believe that technological disruptions are more of an opportunity than threat although, 88 per cent of them are of the opinion that technological and digital investments are more strategic and long term than tactical while 64 per cent of them expect to generate significant ROI in 12 months. One of the biggest threats they saw to technological disruptions is the threat of cybersecurity as 76 per cent of CEOs are very well prepared to manage stakeholders in the event of cyber-attack. The development of automation and leaner processes which is enabled by technologies bring the promise of a more efficient system leading to higher productivity, safety and convenience. However, these technologies also raise question on the impact of such automation on jobs and the future of work itself because most of the jobs carried out today has the potential to be automated. In addition, McKinsey Global Institute research discovered that about 60 per cent of jobs have at least 30 per cent activities could be technically automated based on currently demonstrated technologies. On a global scale, currently demonstrated technologies could affect 1.2 billion employees; however, it would create jobs that have never existed and a new category of knowledge-enabled jobs will become possible. So, the biggest challenge going forward is not the lack of jobs but the lack of qualified individuals to fill new job roles. Therefore, to prevent a massive unemployment churn, government and private individuals should begin to up skill of their employees so as to be capable of handling new jobs. One of such initiatives is currently handled by the Lagos State Government which is called CodeLagos, an initiative to train 1 million Lagos residents to code. This is a six-week program that will expose trainees to courses in Java, Web and Python programming.
WIDE OPEN MINDED RMB Nigeria. Solutionist Thinking.
Rand Merchant Bank Nigeria Limited is an Authorised Financial Services Provider
We believe in stretching ourselves. In broadening our horizons and embracing the unconventional to consider every possibility. Solutionist Thinking means deliberating together and collaborating with our clients to unlock exceptional prospects for the future. It’s the magic that inspires everything we do.
www.rmb.com.ng