It is easy to become numb to the onslaught of new technologies hitting the market, each with its own promise of changing (more often “revolutionizing”) the business world. But our analysis of some of the more meaningful tech trends lays out a convincing case that something significant is happening.
These tech trends are generally accelerating the primary characteristics that have defined the digital era: granularity, speed, and scale. But it’s the magnitude of these changes—in computing power, bandwidth, and analytical sophistication—that is opening the door to new innovations, businesses, and business models.
The emergence of cloud and 5G, for example, exponentially increases compute power and network speeds that can enable greater innovation. Developments in the metaverse of augmented and virtual reality open the doors to virtual R&D via digital twins, for example, and immersive learning. Advances in AI, machine learning, and software 2.0 (machine-written code) bring a range of new services and products, from autonomous vehicles to connected homes, well within reach.
Much ink has been spilled on identifying tech trends, but less attention has been paid to the implications of those changes. To help understand how management will need to adapt in the face of these technology trends in the next three to five years, we spoke to business leaders and leading thinkers on the topic. We weren’t looking for prognostications; we wanted to explore realistic scenarios, their implications, and what senior executives might do to get ready.
The discussions pinpointed some broad, interrelated shifts, such as how technology’s radically increasing power is exerting a centrifugal force on the organization, pushing innovation to expert networks at the edges of the company; how the pace and proliferation of these innovations calls for radical new approaches to continuous learning built around skills deployed at points of need; how these democratizing forces mean that IT can no longer act as a centralized controller of technology deployment and operations but instead needs to become a master enabler and influencer; and how these new technologies are creating more data about, and touchpoints with, customers, which is reshaping the boundaries of trust and requiring a much broader understanding of a company’s security responsibilities.
Source: Mckinsey
