
Digital Disruptors - M1L
http://www.m1l.asia/articles/50
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M1L
During 1800’s investors in the stock market traded with paper securities,
yelling and screaming at the top of their voices in order to ‘transact’ and
own stacks of those paper. Little did they know that those physical papers
would fade in oblivion in future and that securities would be held virtually
in digital formats.

Although the transition from physical world to today’s all-encompassing
virtual lives has been slow, such changes have been important catalyzers for
technology companies to begin innovating and redefining how traditional
processes work. Paper security converted to virtual demats was just one of the
numerous examples of how technology made its way into traditional processes.

Ones and zeros are eating the world. The creation, storage, communication, and
consumption of information is being digitized - turned into the universal
language of computers at breathtaking pace. All forms and types of enterprises
– from small businesses to large corporations, from non-profits to government
agencies – are going through “digital transformation”, taking the help of
digitisation to create new processes, activities, and modes of transactions.

Digitization is changing the way we work, shop, bank, travel, educate, govern,
manage our health, and enjoy life. The technologies of digitization enable
conversion of traditional forms of information storage such as paper and
photographs into binary codes (ones and zeros) of computer storage. The
process of converting analog signals into digital signals is a sub-set of such
a workflow. Its noteworthy to note though that the digital transformation of
economic transactions and human interactions is more pronounced than
conversion of various forms of media into bits and bytes. In the last decade
or so, the rates at which technology has been evolving have become
overwhelmingly steep. From driverless cars to artificial intelligence, high-
tech companies are competing to strive to achieve the unthinkable; a life
where WORK IS FOR MACHINES AND LIFE IS FOR HUMANS.

Recent developments in technology industry has been quite fascinating.
Artificial intelligence (AI), which refers to the use of computer systems to
perform tasks that normally require human understanding, has been around for
nearly 60 years. But, it is only recently that AI appears on the brink of
revolutionizing industries as diverse as health care, law, journalism,
aerospace, and manufacturing, with the potential to profoundly affect how
people live, work, and play.

Within 3 to 5 years, it is expected that commercial uses of AI would increase
exponentially. The idea is that AI embedded in product applications would
benefit end customers. AI is also being used in process applications and in
corporations to automate processes and enhance customer satisfaction.
Automated voice response systems have been used for a few years now to replace
human customer service agents for customer support. Eg. The Hong Kong subway
system has employed AI to automate and optimize the planning of workers'
engineering activities, building on the learning of experts. Insight
applications harness advanced analytical capabilities such as machine learning
to uncover insights that can inform operational and strategic decisions across
an organization. Chipmaker Intel employs predictive algorithms to segment
customers into groups with similar needs and buying patterns effectively using
this information to prioritize its sales efforts and tailor promotions (Intel
expects that their AI-based approach will generate an additional $20 million
in revenue once it is rolled out globally).

The next big disruptor is the Blockchain technology. Blockchain is a secured
and reliable technology that is used to securely stock and share data or list
transactions on an infinitely large and democratized networked system called
the ledgers. It enables to perform transactions in a relatively fast and cost
effective manner and ejects brokers out of the system leading to direct peer-
to-peer interactions.

The Blockchain data storage technology is predicted to be a massive disruptor
in the next 3-5 years. Because the existing cloud storage services are
centralized, users have to trust a single storage provider. With Blockchain,
this can become decentralized. Eg. Filecoin is testing cloud storage using a
Blockchain-powered network to improve security and decrease dependency.
Additionally, users can rent out their excess storage capacity, Airbnb-style,
creating new marketplaces.

Blockchain technologies make tracking and managing digital identities, both,
secure and efficient, resulting in seamless sign-on and reduced fraud. Be it
banking, healthcare, national security, citizenship documentation or online
retailing, identity authentication and authorization is a process intricately
woven into commerce and culture worldwide. Blockchain offers a unique service
called smartcontracts. These are legally binding programmable digitized
contracts entered on the blockchain. What developers do is implement legal
contracts as variables and statements that can release of funds using the
bitcoin network as a ‘3rd party executor’, rather than trusting a single
central authority. For example, if two people would like to exchange $100 at a
specific time in future when a set of preconditions are met, the conditions,
payout, and parties’ details would be programmed into a smart contract. Once
the defined conditions are met, funds would be released and sent to the
appropriate party as per terms.

Virtual reality is all set to take over the way we experience and view media.
Some experts call it the ultimate empathy machine because VR helps to live
vicariously in others’ shoes. Currently, the gaming industry has the hottest
VR applications because it is fun and people can understand easily why VR adds
value to their experience.

The education industry has started to embrace VR for teaching students. For
example, Schools would invest into Google Cardboard (VR Headset), give it to
students in classes and experience the Google Expedition app on Android/IOS.
This app allows students to go on field trips from Galapagos to the
International Space Station. It makes learning more interesting because it is
more likely that they will remember what they have experienced rather than
just reading a book.

As the advertising space becomes more and more congested with competition, VR
has opened up a new space for brands to communicate to their customers. For
example, Audi´s Sandbox experience which uses real-time trackers, an Oculus
Rift, a driving seat and a sandbox to create a unique experience. The idea is
that you can create a real track in the sandbox that is referenced in VR where
you drive an Audi.

The real estate sector is also set to benefit from the VR technology.
Companies are giving virtual tours on VR headsets for prospective buyers, with
just a camera and software that is available on cloud. The whole process of
making a Virtual tour of a mansion takes around 2 – 3 days. In addition, the
camera only costs $3600 and the software is around $49 – $149 a month. The
speed, price and ease of doing, makes this a real disruptor in the industry.

Disruptive technologies usually start out performing worse than their current
generation counterparts, which are much used and are, so called, incumbents.
This leads to a tendency to ignore disruptors until it’s too late or 'in your
face'. History is testament to the fact that transformational ideas emerge
victorious in the end. So could be the cases of AI, Blockchain, AR, VR, Drones
etc., and a few others that are hidden but lurking around the corner.

