When it comes to doing business, do you sometimes feels like you have to work harder and smarter all the time? Rapidly evolving technologies are constantly challenging not only how business gets done but which companies – and entire industries – will survive these ongoing changes.
So, it is little surprise that ‘disruption’ – the process by which a product or service essentially replaces or topples its predecessor within its marketplace – remains a business buzzword decades after academic Clayton Christensen coined the term ‘disruptive technologies’ in a 1995 essay. Navigating these drastic evolutions to the way businesses do business can sometimes feel like running to stand still, as companies struggle to survive –let alone prosper – in the wake of new tech. But, with a little foresight and vision, they can also take advantage of the opportunities presented by these massive changes.
For our purposes, let’s look at three technologies – 5G, the Internet of Things (IoT), and blockchain – and how they are impacting, respectively, autonomous vehicles, smart cities, and supply chains.
5G for Autonomous Vehicles
For me, the mistrust people have for self-driving cars is best brought to life by a scene in the sci-fi film Upgrade (2018) where the hero’s voice-activated vehicle gets hacked and crashes. It’s a scary moment because cars that essentially drive themselves are a reality – one made possible by 5G technology.
That’s because so-called ‘autonomous vehicles’ have to process a lot of information in real time in order to be safe. They do so via ‘low-latency connectivity’, i.e., the near instantaneous processing of info from sensors, cameras, radar, and lidar (light detection and ranging) – all of which is facilitated by 5G. These self-driving cars not only communicate with each other but are connected to city infrastructure like traffic sensors.
The increasing presence of autonomous vehicles will create both challenges and opportunities for business. Automotive and transportation companies, for instance, will need to form closer partnerships with telecom companies (a challenge), while tech companies will need to develop AI navigation systems, vehicle safety features, and fleet maintenance (opportunities).
IoT and Smart Cities
First, a couple of (very) basic definitions: the Internet of Things refers to physical objects that can communicate with one another, while ‘smart’ cities use the data they collect from the IoT (and other sources) to better the lives of their residents.
An example of this interaction between the IoT and smart city infrastructure would be IoT-enabled traffic management systems. These look at rush hour traffic and make adjustments to traffic lights to save drivers time on their commutes and reduce accidents.
The implications for many business sectors is vast, especially for construction, real estate, and utilities, as they will need to think about how to integrate IoT into their day-to-day operations in order to keep cities ‘smart’. They will also have to develop closer ties with local governments in order to jump over regulatory hurdles as the private and public sectors become even more intertwined.
Blockchain and the Supply Chain
When the ship Ever Given skidded out of control in March 2021 and blocked the Suez Canal for a week, the result was some US$10 billion in global trade lost every day. The fragility of global supply chains was also exposed.
Now, technology isn’t going to stop accidents from happening, but blockchain, the decentralized ledger best known for powering cryptocurrencies, has the potential to strengthen supply chains by reducing fraud and inefficiencies. It can also boost the security and transparency of global trade generally. This is because the whole idea of blockchain is to capture key data points along the path of a product’s life, from manufacture to sale, and make them visible to all relevant users.
For instance, the introduction of blockchain technology into supply chain management could be used to verify the provenance of the component parts of pharmaceutical drugs. Obviously, any disruption or contamination of this supply chain can quite literally kill people. Being able to verify the creation of pharmaceutical drugs can strengthen a manufacture’s reputation in the global marketplace and greatly reduce its legal exposure as the result of product contamination.
As businesspeople, it’s not easy to always be innovating. But technology – whether it’s considered an enhancement, an evolution, or a disruption of your business model – doesn’t stop for anyone. The key to not just survival but prosperity in the wake of non-stop technological disruption is to see the innovations coming, predict where they will lead, and to stay ahead of curves that are only becoming steeper and more difficult to navigate.
Sean Plummer | Contributing Writer
