change is the new norm. adapt or die. disruptive technology (and technology that disrupts) (june...
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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.TRANSCRIPT
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Disruptive Technology
Change is the new normAdapt 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 – Enterprise and Consumer Tech, BBC, Computing, Computer Weekly, Wired
Broadcaster – Consumer: BBC Rip off Britain, ITV Daybreak, CNN, Planet of the Apps
David McClelland
{Digital Revolution
Disruptive Technology
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
“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
{ {Disrupted
PCsCRT TVsWood, Metal, GlassFilm CamerasRailEncyclopedia Britannica
Disruptor
Tablets/SmartphonesLCD TVsPlasticsDigital CamerasCarsWikipedia
Disrupted
“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
{Today’s view of Tomorrow
Technologies
McKinsey Global InstituteDisruptive Technologies: Advances that will transform life, business and the global economy
Tomorrow
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 manipulated via the internet, whether it’s a toaster, a lightbulb or your car”
Christopher Mims, Quartz
Internet of Things
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
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
“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
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
Nest – estimated 2bn kWh energy saved Automatic – saves 30% fuel cost Wealthfront Investment Management
+ 4.6% return vs average mutual fund
Pattern Driven
Better decision making Humans can’t keep up Cognitive computing
Expands human cognition Learns with use Interacts naturally
Knowledge Automation
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
{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 $53.7m – income from selling card
details $55m – executive settlement to CEO
Steinhafel 46% drop in profits
Secure, Hack, Fraud
Heartbleed Bug eBay LinkedIn Target Spotify Gameover Zeus
“This is the new norm”, FBISecure, 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 privilege
P2P Attitudes
Airbnb – connects tourists with destinations
RelayRides – connects drivers with car owners
Lending Club – connects investor to borrower
Paypal M-Pesa
P2P Disrupts
#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 Interface
Far less friction Far more convenience
Attitudes
Know your customer > Better than anyone else
Know your limitations > Embrace Innovator
Still space for face to face > Augment online
Takeaways
@DavidMcClellandwww.davidmcclelland.co.uk
Thank you