Are we losing our innovation drift due to technology?

10

October

2019

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Nowadays, our live is full of technical comforts making our lives much easier. But because we are less confronted with problems, we are not as eager as before to find creative and new solutions. How do we make sure we don’t lose our innovation drift?

As we saw with the invention of the computer, the technology evolved from a huge (and really expensive) machine to a device which almost fits your pocket. A very important aspect of this development is ‘need’. As these enormous computers brought a lot of physical problems, there was a big need for them to evolve into smaller, and more user friendly devices. When the physical problem was solved, a new problem came up, consumers could not understand how to use the computers. The command prompt was replaced by an easy-to-understand user interface in just a few years.

But now most of these major problems are fixed, innovations start to slow down. According to professor Economy at Stanford, Nicholas Bloom, technology growth in the USA is decrease from 3% (in the fifties) to 1% per year. This is odd because engineers and researchers were almost doubled in the same year.

So much opportunities and yet we innovated slower than 60 years ago. How is that possible? When we are not confronted with real problems and challenges anymore, the need for new techniques decreases. The impact is simply too small. We saw the same phenomena in the Golden Age in the Netherlands. A similar decrease in innovations happened as our lives were becoming easier.

The reason why it is becoming more important to fully integrate IT departments in companies, is to boost the innovation drift in companies again. To bring together people who actually experience problems in working environment and people who can develop a solution. The new problem now is to fully understand the business problem. Is the need big enough to solve this problem in an innovative way?

 

References:

www.harvardecon.org/?p=3834

https://web.stanford.edu/~chadj/IdeaPF.pdf

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The hype around 5G: telco managers are not impressed

18

September

2019

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The network and the hardware devices which support the 5G network are planned to release around 2019. T-Mobile has already rolled out their 5G network in six locations in the USA. Combine this with the new Samsung Galaxy S10 5G, and you are already able to access the 5G network (Lifewire, 2019). But what exactly are the advantages compared to the 4G network, and how do managers of ‘telcos’ (telecommunication companies) see these advantages play out in the market?

The 5G network promises, amongst other thing, mainly faster connection with ultra-low latencies and the ability to connect even more devices to the internet, because of the enhanced mobile broadband. Especially the latter will give a great boost to Internet of Things (IoT), as more IoT devices are able to connect to the internet without any latency. The latency aspect of 5G will have major implications in sectors and devices where milliseconds can make a huge difference (e.g. enablement of connected cars on the 5G network). The hype around 5G networks, and most potential use cases for the 5G networks have been written in these sectors.

But according to a survey conducted on 46 different telco Chief Technology Officers (McKinsey, 2019), they see this latest wireless advance mainly as an opportunity to (re)gain network leadership (McKinsey, 2019). With 4G, we have seen KPN almost go bankrupt, but this created a huge entry barrier and is therefore a strategic investment to rule out competition. The ‘enhanced IoT connections’ even come after ‘increasing customer satisfaction’ and the ability of ‘capacity expansion’ as reasons for these CTO to engage in 5G developments. According to them, the current IoT capabilities are sufficient for most use cases (for now). The momentum to fully engage the company towards the 5G network lies with the CTO, so this probably won’t happen just yet. 61% of the CTOs think that peak rollout will happen between the period of 2020 and 2022. This let us think to ourselves, are the potential use cases for 5G going te be reality within now and 2 years?

References:

https://www.lifewire.com/5g-availability-us-4155914

https://www.mckinsey.com/industries/telecommunications/our-insights/cutting-through-the-5g-hype-survey-shows-telcos-nuanced-views

https://internetofthingsnederland.nl/gaat-5g-netwerk-nu-echt-brengen/

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