In the coming years, an unusual trend will become steadily more obvious: it will become clear that technological innovation is now growing exponentially rather than via a linear curve. Within ten years, computers will be powerful enough to make as many calculations per second as the human brain. These developments will have a big impact on organizations’ business models.
Companies can’t avoid it; in the not too distant future, all organizations will go digital. If current developments keep growing exponentially, computer power (calculations per second) will be equal to the total calculations of all human brains put together within one generation. Moreover, various new technologies and their uses will have an impact on all sectors, such as blockchain, AI, robotics, Internet of Things and medical wearables.
Exponential, rather than linear thinking
Disruption as a result of these technological developments looms over every organization. Many companies today have need of new business models in order to face this disruption. Focusing on improvements within the current business model, the so-called ‘Horizon 1 and 2’ developments, is no longer sufficient. Continuous attention for new Horizon 3 business models must be anchored in the corporate culture.
There are already a fair few examples of senior management (don’t be that guy) hanging onto their tried and tested business models on the basis of personal experience and expertise. Because of this, they eventually had to deal with total disruption. Competition can often be found where you aren’t expecting it; start-ups use all available technologies to launch new business models.
That’s why it’s important to start thinking about the future now. In the coming years, for example, chatbots will become commonplace in customer service. In the healthcare sector, medical wearables are being developed which can not only cure certain illnesses, but prevent them entirely. The blockchain will eventually be put into use everywhere, cutting out the need for a ‘middle man’. Moreover, Artificial Intelligence technology will be integrated into our existences and will act as our co-pilots.
Prepare for the future
It’s difficult to fully anticipate upcoming developments. The human brain simply isn’t capable to predict and extrapolate such exponential trends. This means that anticipating the specifics is pointless. Set up your organization to be technologically flexible, so that it can quickly adjust itself according to the market.
Don’t stick to just ideas; anchor the technological models in the organization and put them into practice. Firstly, the senior management has to be made aware of the exponential growth curve that will impact all organizations. Then employees throughout the company must be stimulated to think and act in an innovative manner. Of course, this must happen with and for clients. This entails (minimum viable) products being launched cyclically in order to receive feedback as quickly as possible in order to improve. Only organizations that learn faster than the competition will survive.