Innovation and disruptive technologies - the new industrial revolution

Disruptive technologies - the new technologies which have the potential to disrupt the status quo have never been more prevalent in the last ten years than the earlier industrial revolutions which occured half a century or more than a century ago. The newest applications emerging during the information age continue to alter the way people live and work, rearrange value pools and create entirely new products and services. Of note rapidly evolving, transformative technologies are moving across the horizon and into deployment leading to significant structural change. These new technologies share four characteristics, according to McKinsey & Co which are as follows:

• The technology is rapidly advancing or experiencing breakthroughs: demonstrating a rapid rate of change in capabilities in terms of price/performance relative to substitutes or alternatives. Gene sequencing, and nano materials such as graphene are examples;
• The potential scope of impact is broad: the technology has a broad reach affecting companies, industries and a wide range of machines, products or services. The mobile Internet is one such example;
• Significant economic value could be affected: the potential to create massive economic impact is a key characteristic - advanced robotics has an estimated impact of $6.3b in labour costs and Cloud technology around $3 trillion in global IT expenditure;
• Economic impact is potentially disruptive: the potential to dramatically change the status quo is the fourth characteristic thus transforming how work and life are approached, changing comparative advantage for nations or shifting surpluses for businesses. New-generation genomics are a good example which impact health in both diagnostic and therapeutic uses.

12 of the potentially most disruptive technologies currently influencing the redesign of industries and whole economies are listed in the table below together with their estimated financial impact measured in trillions of dollars:

Technology	Description	$t impact
Mobile internet	Increasingly inexpensive and capable mobile computing devices and internet connectivity.	3.7-10.8
Automation of knowledge work	Intelligent software systems that can perform knowledge work tasks involving unstructured commands and subtle judgements.	5.2-6.7
The Internet of things	Networks of low-cost sensors and actuators for data collection, monitoring, decision making, and process optimization.	2.7-6.2
Cloud technology	Use of computer hardware and software resources delivered over a network or the Internet, often as a service.	1.7-6.2
Advanced robotics	Increasingly capable robots with enhanced senses, dexterity and intelligence used to automate tasks or augment humans.	1.7-4.5
Autonomous or near autonomous vehicles	Vehicles that can navigate and operate with reduced or no human intervention.	0.2-1.9
Next-generation genomics	Fast, low-cost gene sequencing, advanced big data analytics and synthetic biology.	0.7-1.6
Energy storage	Devices or storage energy for later use, including long life batteries.	0.1-0.6
3D printing	Additive manufacturing techniques to create objects by printing layers of material based on digital models.	0.2-0.6
Advanced materials	Materials designed to have superior characteristics (ie strength, weight, conductivity) or functionality.	0.2 -0.5
Advanced oil and gas exploration and recovery	Exploration and recovery techniques that make extraction of unconventional oil and gas as economically viable.	0.1-0.5
Renewable energy	Generation of electricity from renewable sources (wind, solar, tidal, biomass) with reduced harmful climate impact.	0.2-0.3

Source: McKinsey and Co.
  

Martin Aircraft jetpack under demonstration

The aircraft and airborne devices industry (including drones) is a highly competitive, global market with domination by the major industrialised economies (United States, United Kingdom, France, Russian Federation) and had tended to function with linear research and development. The concept of a functional jet pack which can operate in restrictive surroundings otherwise inaccessible to fixed wing aircraft or helicopters is one example of a disruptive technology development (as shown by the Martin jetpack). Whether it achieves commercial success with large scale take-up will determine whether this potential disruptor succeeds in altering small level aerial transport.

Disruptive technologies are already impacting many industries particularly bricks & mortar retail, travel and hospitality and the information industry. But is it all as positive as advocates would suggest thus empowering for the consumer, or is the impact actually shifting liability and risk under the guise of greater choice ?