New Technologies : Foreword

It is technologies for non-technical

Trying to keep the post as specific, as simple, and as jargon-free as possible without, in the process, losing the sight of the essence, or compromising on authenticity of information. It’s a difficult balancing act! It is not for technocrats – who already know a great deal about those technologies. It is meant for normal business people (including my friends from Finance faculty). I am trying to just give a general idea of those technologies, and how they are likely to affect our future – sooner than later. I am also focusing more on technologies with industrial or commercial application rather than medical, entertainment, space or defense. I will concentrate on technologies which are almost there or already in a maturing phase rather than the ones which are futuristic. The idea is to arouse interest, and enable non-technical people like me to have a conversation on these topics for further information gathering.

Phases of technological development

Technological development passes through three broad phases. The first is more visionary, widely futuristic. More like in science fiction. Such a technology is still to be invented. However the vision often inspires the scientists to really invent the products or services. Remember mobile telephones from Star Trek and many more applications from Steven Spielberg’s Back to the Future?

The second type of new technologies are available and running, but cost huge sums and hence are not yet mass produced. The first computer- ENIAC in 1946 weighed 30 tonnes (comparable with 43 Tata Nano cars), and prompted the infamous remark by Thomas Watson - Chairman of IBM - “I think there is a world market for maybe five computers.” Once it is produced on mass scale, costs come down drastically; and in return, there is more acceptance as products/services become more affordable. Remember our initial mobiles where the tariff was Rupees 16 a minute in mid-1990’s? Even an incoming call cost 12 Rupees?

The third is where the technology is already being used on a mass scale. For example, our mobiles. Anybody and everybody owns one...or more. With scale, newer services have come up, newer providers have mushroomed, and newer apps are developed.

Apart from this, new technologies often pass through a “hype phase”. The technology enthusiasts promise you the world with the new technology. And then suddenly there is a big disappointment since the promises are too unrealistic, or realizable in a distant future, or simply the cost-benefit does not match. Skepticism about the new technology grows. But soon wisdom prevails. And we see that realistic and affordable ways get evolved for developing products or services based on new technologies. Thus, we don’t get flying cars which follow your command, but we do get vehicles which are safer, more fuel efficient, more comfortable, more affordable, and come with a friendly female voice giving us the directions to navigate!

Why should Finance or Business people occupy themselves with the new technologies?

Well, human civilization is synonymous with the history of progress - enabled by use of technology. Presently, we are looking at various new technologies which are going to change the way we live, the way we work. We often hear about Big Data Analytics, Cloud Computing, 3-D Printing, Internet-of-Things, Smart Manufacturing, Robotics, Drones, Augmented Technology, Composite materials, Nano-technology, Artificial Intelligence and so on.

Business is changing fast. Shop-floor as well as Distribution channels looked totally different in the past. Somewhat senior people among us will recollect - how the offices looked like 30 years ago, how we worked without computers, without internet, and without mobile telephones. These three technologies have really transformed the face of the modern office. We have still not reached the goal of paperless office, but we are getting there! Disruptive technologies are changing business models in many industries. Retail business has changed with the emergence of Amazon, eBay, Flipkart, Snapdeal and Quikr. Air Travel is not the same after Amadeus, Yatra, Makemytrip and goibibo came in to play. These changes, and changes brought by the likes of Uber, airbnb, Zomato may sound like they are confined to service industry or to delivery model. What about old industry – producing mechanical machines, electrical tools, vehicles, material movement equipment, consumer products and so on? Here too, a lot of changes have taken place over last decades by way of assembly lines, PLCs (Programmable logic controllers), CNC machines, HMIs (Human-Machine Interfaces). The changes have not been as dramatic and as swift as in service industry. However, here too we are seeing a big shift taking place. And we should not be taken by surprise. In fact, we must be able to benefit from the technological revolution coming upon us.

Our roles are changing with the advent of new technologies. For example, as a CFO, one is expected to play a strategic role, and work on business priorities enabled through technologies. Obviously, one needs to be generally aware of the technologies. With the Tsunami of offers for “must-do” applications engulfing us, we need to decide – what is essential for us and what is superfluous, what suits our business model, our business culture, our competitive environment, what is sturdy and safe but also flexible and scalable, what is going to stay with us and what is “flavour of the day” application, who are real partners and who are “fly by night operators”. It is not an easy task but we must evolve in the new role.

Any technology howsoever advanced it is, is ultimately a tool to achieve our goals. Joining the fad of every newest technology, latest gadget, fastest equipment - in itself, does not lead us to reach our objective or fulfill our dreams. The new technologies are challenging us to take a thorough look at our business model and business processes - for survival as well as for success. “If it doesn’t challenge you, it won’t change you” – it is said. The wave of new technologies is already coming. In order to not to sink in the wave, but instead, to ride it and enjoy - we must make ourselves sufficiently aware of surfing techniques.

In the further posts, I will discuss about Big Data, Cloud Computing, 3-D Printing, Internet-of-Things and Smart Manufacturing.

(Source: Wikipedia, Googlesearch, Concerto, McKinsey, quora and others)