Disruption is the order of the day. They force organisations to change the way in which they operate. Some companies have been proactive and others turned out mere spectators.
For instance, Eastman Kodak saw these disruptive forces coming in but did not act thinking that it is not going to affect them. In the end, disruptive forces of miniaturisation pushed the company into bankruptcy in 2012; the same year in which Facebook went for an IPO. Phonogram Inc., which was writing records, saw the disruptive forces coming in the form of CD-ROMs, acted upon quickly by striking a deal with Goldman Sachs and sold the company. For print media companies, ‘Classifieds’ is a major source of revenue. A media giant saw disruptive forces in the form of Internet coming and overnight invest in Online Classifieds.
So, it is most essential for businesses to see how these forces would impact them – whether positively or negatively and channelise their investments accordingly.
INTERSECTION OF LAW AND TECHNOLOGY
We are in the starting stage of the fourth industrial revolution. Blockchain, SMAC (Social, Mobile, Analytics and Cloud), Internet of Things, Robotics, Augmented Reality, 3D Printing, Drones, Autonomous Vehicles and Artificial Intelligence have been the recent technological disruptors. If a human’s physical capabilities could be replaced by robots and mental capabilities by using Artificial Intelligence, the expected level of changes in business models are unimaginable. Consequently, concerns over contractual arrangements, privacy and data protection and security will arise and need to be addressed. Click wrap and shrink wrap contacts are the future of customer agreements. Privacy laws should insist upon the informed consent of the customers. European Union has come up with the GDPR (General Data Protection Regulation), which is framed to impose huge penalties for data breaches.
Some of the technological disruptors are additive manufacturing, augmented reality, automation and AI, platform economy, IoT ecosystems and block chain. Processes such as Supply Chain management, Point of Sale…. must be reviewed and the business model must be reimagined.
Examples of how the above methodologies are being deployed:
Monsanto, an agrochemical company has developed AQUATEK – a digital tool that would track water usage and set accurate, precise irrigation plans for farmers without having to install a costly irrigation management system. The University of New Castle, Australia has deployed virtual reality in neonatal resuscitation as a result of which the university is able to provide their midwifery students with a virtual emergency neonatal resuscitation scene. In the US, AI in medicine has helped to identify the drug seeking behaviour amongst the population.
