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FTMBA – Trim 2
Session 02 IS Stream
Sep-18
Innovation Theory
Moore’s Law
He predicted that the growth of semiconductors (electronic
components such as diodes, resistors and transistors, are
made with ‘semiconducting material’ and are referred to as
semiconductors) would be steady for many decades. Known
as Moore’s law, the prediction was that the number of
transistors packed into integrated circuits would double
almost every two years.
The law was found to be effective in its predictions and the
number of transistors indeed doubled on the integrated
circuit, which later became a computer chip.
The consequence of Moore’s law is a tremendous growth in
the power and capacity of the basic computing hardware
that drives innovation.
2
Innovation Theory
Disruptive Innovation
The idea of disruptive innovation was developed by Clayton
Christensen in 1997.
An example of this is digital cameras that were introduced in
world markets in the mid- 1990s.
3
Innovation Theory
Creative Destruction
Innovative change in the economy is often referred to as
‘creative destruction.’
This term also refers to the new situations brought forth by
changes in the economy and political landscape where entire
businesses and industries disappear to make way for newer
businesses and models.
This concept is attributed to the German economist Joseph
Schumpeter who coined this phrase, drawing on the works of
Karl Marx, to explain the constant change and chaos in
capitalist industrial societies.
4
Innovation Theory
Diffusion of Innovation
The theory of diffusion of innovations, as proposed by Rogers
(1983), states that there are four elements that enable the
process of diffusion. These are:
– An innovation – a new idea.
– Communication channels − which are the media or means by which the information about
the new idea is shared by people.
– Time – the period over which the innovative idea spreads.
– A social system − which is a combination of elements in a society that encourages or
inhibits the innovation.
5
Innovation Impact
6
Innovation Impact
Innovation Waves
With the massive scale and pace of innovations in IT, one
challenge managers face is that of deciding which of the
innovations are sound and can be investigated further,
versus innovations that are a flash and may disappear.
1. Industry transformation
2. Diversity and variety
3. Personalization
4. Experimentation
5. Plug-and-play innovations
6. New marketing opportunities
7. Use of smart technologies
8. Natural language interfaces
9. Analytics
10.Crowd sourcing
8
Management Issues: Challenges for Managers
9
SMAC – An Introduction
10
Confidential |
Confidential | 11
Fifth Wave of Corporate IT
Confidential | 12
Evolution of Technology
Confidential | 13
Changing Business Models
Confidential | 14
Transformation of Value Chain
Confidential | 15
Tight Coupling in Value Chains
16
Confidential |
SMAC - Advantages
17
Confidential |
AI
AI is Not Magical or
Mysterious
• Mathematical algorithms
in existence for decades
• Enabled by technology
and fueled by data
explosion
• Proliferation of embedded
and point solutions
• Pervasive across many
parts of our lives today
Cross-enterprise
capabilities are emerging
How We got Here
Enterprise Artificial
Traditional BI Advanced Analytics
Intelligence
Dynamic Big Data
Data Complexity Structured Data (RDB) Data Marts/ OLAP
(Structured and Unstructured)
Inferential NLP, Pattern
Algorithm Dashboards and Custom Modelling with
Recognition, Machine
Sophistication Visualizations Standard Statistical Tools
Learning
Goal Achievement &
Use Cases Reporting History Insight and Prediction
Automated Action
Explosion Of Data ● Need For Automated Action ● Driving Commercialisation of AI for Business
The Era of the Enterprise AI
ADOPTION
“The most important
general-purpose
technology of our era
is artificial intelligence,
particularly machine
learning”
Erik Brynjolffson and Andrew McAfee,
Harvard Business Review, July 2017
Sources: MIT, Boston Consulting Group, Harvard Business Review, McKinsey &
Co., World Economic Forum
The AI Enterprise
Level Of Complexity
Augmented Reality Driven
CPS
PLC Driven Robots
End of 18th Century End of 19th Century Q4 of 20th Century Start of 21st Century
Leveraging Industry 4.0-Challenges & Opportunities
1) An organization can
drive both revenue &
margin by leveraging
Industry 4.0
2) Transformation
opportunity: both biz.
models and biz.
processes
3) Digital maturity-
digital intensity &
transformation
management
4) Enablement on ‘new
skills’ fundamental
5) Digital-niche to ‘must
have’ skills
IoT Adoption trends