Megatrends: Technological breakthroughs

Technological breakthroughs

CEOs told us that technology is one of the biggest disrupting forces in their organisations. The time it takes to go from breakthrough technology to mass market application is collapsing, re-shaping the economy at the same time.

 

Transcript

Breaking through to the masses

The price of new technologies continues to fall dramatically; the cost of DNA sequencing per genome has fallen from $96m in 2001 to less than $6,000 in 2013. New technologies are no longer solely the privilege of developed economies and the time it takes to go from breakthrough to the mass market is falling. In the US it took 76 years for the telephone to reach half of the population, the smart phone did it in less than 10.

The impact of digitisation has been particularly profound. The technology based around the internet has already created extraordinary value: in fewer than 10 years since its initial public offering, Google’s revenue grew from $3 million to $60 billion.

Technological breakthroughs

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What next?

The transformative potential of digital in the next decade is immense. In the consumer market, we think that this transformation will play out over three digital waves:

  • The First Digital Wave: mainly ‘another channel’ or ‘e-commerce’ through which to sell and communicate. This is already happening and even the most traditional businesses are adopting it.
  • The Second Digital Wave: digital will move beyond a channel to facilitate an economy of outcomes, where information shared through connected devices helps customers achieve the outcomes they care about – we can see this happening now, take for example Nike Plus.
  • But we believe the Third Digital Wave is just around the corner and will be driven by consumers taking back their digital identity and extracting value from it. Whether in the form of ‘buying brands’ that aggregate demand across groups of consumers or life providing platforms that will manage digital footprints and consumption.

Companies will find new value in this evolving market place by bringing together the four key aspects of digital: Social, Mobile, Analytics and Cloud. It will no longer be enough for companies to form a digital strategy to succeed in this world, they will need a business strategy fit for the digital age.