Disruption! Chapter 2

In Tech world, Moore’s law brought a fundamental change. It introduced an aggressive goal setting mechanism of tangible Tech outcomes and speed. That mechanism not only fast paced the IT industry it also created an Eco-system momentum across multiple industries. As we reached to second half of chessboard in famous “Rice grains and Chessboards“ example we entered the exponential age. But Moore’s Law was not only about speed, it had another dynamics of cost too. Compare the development of IT industry against other industries like automotive, aircrafts etc. and one begins to realize how far IT went ahead of others in outcomes and cost in comparison. As the impact spread in allied industries e.g. Telecom moved from architectures designed for POTS to more IT look-a-likes, compounded impact got us hyper connected, inclusive and super affordable business environment. The access, data, connectivity, capital and other barriers were brought down so quickly that traditional businesses and for that purpose regulators could not match up the speed to protect themselves. That was rise of Disruption 1.0.  Purpose of this article is not to reproduce the success stories of Chapter-1 as by now we are well aware and experience them in our daily life.

As world moves to next chapter, what awaits us is the biggest question. With 5G already being tested, costs further going down and amount of data growing even faster, machines are not only learning but taking quantum shift, the growth curve will only go steeper. It will be only matter of time that left over barriers like Industry knowledge, customer trust, risk profiles, regulatory frameworks etc. that saved traditional Enterprises from Disruption 1.0 will come down. This time the threat will be not only from Outsiders but also more from Enterprises that embraced the change and began their transformation early as they have customers, capital and resources that Innovators of Disruption 1.0 lacked. Look at the organizations that are transforming! They are bold in initiatives (not taking baby steps), Agile to outpace industry peers, open to integrate with any one and very focused on playing with the new rules of customer centricity and outcomes. In a booming business of futurism it’s hard to predict exact recipe for survival but learning from Chapter 1.0 gives us insight to a potential model.

Leadership

The challenge of leadership has compounded in all fields and more so in business world. Disruption 1.0 tells us Winners had their leader’s first and last name in the same sentence as of their organization’s success. Winners had leaders carrying “Transformation” as number 1 goal in personal agenda not outsourcers to their leadership team below. Transformation 2.0 is not just another challenge it’s the matter of life and death of organization. In Chapter 2 it will become more binary i.e if you have a leader that has transformation as number 1 personal goal, you will survive and thrive.

Shift to Outcomes and Outreach

Dynamics have moved from “Outputs” to “Outcomes”, not just outcomes but “outcomes at faster pace”, “Outreach” and “more impact” than your peers and outsiders. Chances of having more efficient output from anywhere around the globe against you is almost 100%. Businesses have to move from running efficient processes to creating new, impactful and affordable outcomes to their existing and more importantly untapped new potential customers. Challenge lies in connecting outcomes to business goals. It is becoming easier to tie up things like Net Promoters Score to Revenue and Profits in services industries. With the advancement in technologies like Quantum computing other industries will see the shift at faster pace. Sooner you shift to Outcome based financial models better readiness you will have for Chapter 2.

Artificial Intelligence

 Artificial Intelligence is the largest driver of above shift. Concepts like Segmentation and General Purpose actions are disappearing fast. It’s all about personal, contextualized and fulfilling experience. It’s no more about BOTs for engagement, RPA for efficiency and specific Use Cases with good business case. It’s about an Information Architecture that collects and organizes your data to collect insights and your Organization’s capability to act in real time. If your organization does not have an AI strategy irrespective of the field you are in, you are not even in the game for Chapter 2. AI is not about piece meal or baby steps, it’s about being bold, creative, at scale with trusted Data foundation. Your enterprise memory will become chief differentiator in outcome based hyper personalized world.

Cloud

Chapter 1 for cloud was Public, peripheral applications, cost driven and incremental innovation. Now water has touched the foundation and unless core is modernized for innovation and agility, the transformation will be superficial and patchy. Chapter 2 is about Hybrid, Multi-Cloud and Transformation to the core. The gigantic core applications need to be broken down to micro-services, new capabilities & external innovations need to be infused and run in most optimal scheme. Also Cloud will be very closely coupled with AI, Security and Experience for a consistent pace and innovation. What you need in Chapter 2 is an IT capability that is modern, open and running on Multi-cloud environment (which is already an unnoticed reality in 90% plus organization) with Integrated Management. Again shift has happened from Virtualized OS layers to Virtualized Environments using containers across platforms and clouds with self-managing and healing capabilities. Your business Innovation will be a direct function of your Cloud Strategy and its execution.

Trust

Trust is transformed from a periodic organizational declaration, to transparent display of what you do every day in ethical, trustworthy and secure way. Data world has far more sensitivity for trust and security of information for obvious impact on outcomes and privacy. Blockchain is the fundamental game changer in business trust and Information Security is fundamental to consumer trust in Enterprises. This dynamic will only accelerate and pressure will only exponentially rise to demonstrate your strength in these areas. In Chapter 2 your customers will have much higher weightage on trust as Chapter 1 has taught hard lessons.  

Skills

 Skills is area of boldest intervention as old skills cannot create new outcomes and now machines can do far better job in many areas. In Chapter 2 your individual employment contract has to be modified with a commitment to Life Long Learning. A major investment is needed in identifying skills needed for each organization for upcoming period, open communication to its employees on what do they need to learn to stay employable. Organizations need to create meaningful programs to in-source and outsource right skills. Catch is, skills plan will be unique for each organization with no shot-cuts in Chapter-2 for both organizations and employees with altogether new design of skill based engagement.

In short in exponential era change is fast, unpredictable and very impactful. It would need a different leadership style and execution in Chapter 2 as motivation and boldness will beat the size and ability.