"About 100 senior Euro 500 executives from 13 countries convened in Geneva for BCG’s ninth European Strategy Leadership Summit. The theme—“The Beauty of Disruption”—challenged participants to see disruption as a friend, not a foe."
Of the group:
- 95% reported that their businesses had been affected by disruption
- 60% named new technologies and business models as the primary types of disruption they face
- 60% describing their organization’s ability to adapt to it as average or worse
The key takeaways for surviving/embracing an increasingly disruptive world included:
- External innovation (partnering with stronger innovators) is emerging as a trend as only 21% of organizations felt they had the internal talent.
- Digital transformation that is taken on proactively has a 50% higher ROI than doing it reactively
- Emerging market leaders are embracing digital more aggressively than those in developed markets
- The pace of change will narrow windows of opportunity for exploiting new products and services
- Organizations must shift from product-based value propositions to digital ones; from global supply chains to local globally-integrated ones, and from standard global offerings to more regionalized approaches.
- Embrace AI, which the article describes as 10% algorithm, 20% technology, and importantly, 70% business processes.
Fast food, real estate, military operations, even home improvement — many large industries will have to shift their strategies in the wake of driverless cars.
The article points to 33 industries that stand to win or lose when humans take a back seat to driving. The more interesting ones include:
- Parking garages/lots: According to Mckinsey, driverless cars could eliminate the need for 61 billion square feet of unnecessary parking space. Remaining spaces will need to be reconfigured for the new normal.
- Residential real estate: Bloomberg predicts a devaluation of urban residential space allocation of space. An increase in urban sprawl is predicted by many. Homeowners may repurpose garages as living space.
- Commercial real estate: The phrase "location, location, location" will lose its importance.
- Healthcare: Collision-free driving could reduce US healthcare costs by $500B/year.
- Insurance/Legal professions: 94% of car crashes are due to human error. Driverless cars will shift the insurance burden to the manufacturers/fleet owners and reduce litigation.
Fast food, real estate, hotels, and airlines — many large industries will have to shift their strategies in the wake of driverless cars.
Think 20 years out, what are driverless cars likely to do to your industry? This disruptor will change more than just the obvious ones.
"In short, we will see more disruptive innovation than in the whole of the 20th century...Increasingly, in most business sectors, we will be able to work wherever we want to. In this ‘anywhere economy’ the glue that holds everything together as a fluid and functioning dispersed work eco-system will be hyper-connected digital networks"
I love the sentence about being "liberated by the tyranny of geography." The author talks about the impact of BYOD, fear of being replaced by technology, flying cars, eating bugs, and more.