Exponential price/performance improvements in technology are driving disruption because they enable new ways of adding value for customers and new business models.
For example, Uber is set to IPO in 2019 at a valuation $120 billion – which is more than the value of every taxicab company in North America added together and doubled!
Many taxi companies are spending $250,000 to develop their own app; however, they don’t understand that the rules of the game have changed. Similar to the Lord of the Rings, I want one ring to rule them all.
I don’t want to download 19 Toronto taxi apps and key my data into each one on my smartphone with my fat thumbs.
To survive and thrive in this fast-changing business environment, companies must be customer-focused, agile, and continue to innovate. How can organizations achieve this? Their infrastructure must enable agility and flexibility to allow the organization to rapidly innovate and pivot.
Here are some staggering facts to consider:
- More data has been created in the last two years than all prior human history combined.
- A gigaflop is a billion transactions per second. In 1961, it cost $153 billion per gigaflop. In 2018, it cost only two cents, so computing is practically free.
- My $1,000 smartphone has more raw computing power than a $30 million Cray supercomputer of 20 years ago.
- While it took the aviation industry 68 years to reach 50 million customers, it took Pokémon Go just 19 days – the rate of change is accelerating.
These advancements are leading the way for dozens of technologies that are exponentially improving on a price performance basis. If you feel the rate of change is head spinning today, it’ll be even faster tomorrow:
Innovation is ultimately a people story. If I have a brand-new computer on my desk but don’t know how to turn it on, it doesn’t offer me any strategic advantage.
So, we must ask ourselves: Do people inside the organization have the tools they need? Is the organization continually investing in people and promoting teamwork, collaboration, and innovation?
If you’re in Toronto, there’s a unique opportunity to further examine this very topic. Attend SAP Intelligent Enterprise Tour on Tuesday, February 19, at the Marriott Downtown at the Eaton Centre. Reserve your spot today for this free event. You can also follow along on social media, #IETour.