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Disruptive technologies such as artificial intelligence and machine learning have been hot topics in recent years. But how well are these technologies understood and adopted by organisations?
Richard Busby, the Principal Solution Architect at Amazon Web Services, discussed how the adoption of these technologies can be more easily achieved by organisations at CxO Disrupt in New Zealand in March.
Drawing on Amazon’s technologies such as Echo, Alexa and Polly, Busby highlighted how technology should be a key part of your business strategy.
The Two Types of Disruption
Before exploring the power of AI Busby started by explaining that their were two definitions, or “types”, of disruption.
“The first is a product to commodity substitution…
That’s a type of disruptive innovation that you should see coming,” Busby explained.
To illuminate the theory he used the common PC as a reference point. While the purchase and assembly of computers were complex 30 years ago, they have now become a utility and are therefore more readily available.
“The second type of disruption is this product to product substitution, and that’s where someone comes into the market with something that’s completely left field that you’ve never seen before and you couldn’t predict. These are the types of disruption that can up-end entire industries and turn incumbent providers on their heads.”
This second definition is what organisations fear and try to prevent happening to them.Busby also drew on Clayton Christensen’s theory that although one organisation may create a mature, feature-complete technology, the price and complexity consequently rises too. This provides other organisations with an opportunity to create a more cost-effective alternative.This is “good enough for a segment of the market so they start using that because it’s cheaper, innovative and it’s faster. So the disruptive technology is…where a new challenger in the market can offer something that’s very basic at the […]