Deloitte Consulting Partner Marcus Shingles delivered at NEWTalk on "Riding the Wave of Exponential Innovation” at the NEW Executive Leaders Forum 2015.
The world is changing at an accelerated pace and companies who take a traditional approach to business will find themselves victims of disruptive innovation, Marcus Shingles, partner with Deloitte Consulting, told more than 300 industry leaders during his NEWTalk, "Riding the Wave of Exponential Innovation,” at the NEW Executive Leaders Forum, July 29, 2015, at the Terranea Resort outside Los Angeles.
"Corporations are adopting game-changing technologies to disrupt the industry — some faster than others," Shingles said. "Uber yourself before you get Kodaked."
Companies must seek not just a competitive advantage, but a disruptive advantage, he said, citing Google and Tesla as market disrupters and innovators. "The democratization of technology is creating an entrepreneurial renaissance, allowing individuals to create things that only big companies could create previously. This is the brand new ecosystem you must stand out in."
As technology changes exponentially, we are all starting to sense things are becoming different. "Our next 20 years will be different than anything humans have experienced," he said.
Shingles offered this illustration: "The $1,000 computer in my pocket has the computer processing power, measured in calculations per second, as that of a mouse’s brain. By 2023, it is estimated that for a $1,000 you will be able to purchase the computing power in calculations per second as that equal to a human brain. By 2040-2050, all of the human brains on the planet."
Crowdsource for the win
Crowdsourcing, he added, will change the notion of what a firm is in the next five years. Companies like Kaggle, TopCoder, Gigwalk and Tongal are already disrupting the market. For example, a leading CPG company offered $17,000 in prize money to Tongal’s creative "crowd" community of actors, producers and directors to produce a video content for one of its premier consumer product brands. One winning video was so good, it was used as their commercial during the 2012 Super Bowl.
Shingles expanded on his NEWTalk during a 75-minute Deep Dive Discussion later. The session — facilitated by Christy Consler, founder and CEO of Sustainable Leadership Advisors — was attended by nearly 100 Forum attendees.
"It’s very easy to swing through 25 minutes and show you a bunch of shiny objects like AI [artificial intelligence], robotics, 3D printing, and crowdsourcing," Shingles said. "But this sometimes distracts from the real learning moment and takeaway. What I want you to do is understand and get a sense for the exponential — not linear — pace of change."
Shingles shared an innovation ambition matrix and change model emphasizing how organizations allocate across their core, adjacent and transformative business portfolio. Almost everyone in the audience said their organizations spend 70 percent of their time on "core" innovation in existing products and services and existing customers and channels. When Shingles asked session attendees how many were spending more than 10 percent of their time on truly "transformative" innovation, in new products and services and new customers and channels, no one raised a hand.
A few smart retail and consumer goods companies are scoping out Silicon Valley, exploring new disruptive ideas and startups, he said. "We identified 684 startups targeting CPG and retail — most of them are filtered out as true industry disruptors since they don't have what it takes," Shingles said. "However, 80 were qualified and 30 were proven powerful enough to be transformational, similar to what the POS technology innovation did in the late '80s and early '90s."
The best ideas are being underwritten by angel investors and venture capitalists in their first round — and more and more we are learning about key industry players, in some cases even the brand team of a particular CPG company, funding, supporting, backing and even acquiring these disruptive startups."
A member of the audience asked Shingles what she should look for in hiring new talent and Shingles said, "Don’t hire exclusively as your talent strategy. Crowd source your talent from around the world."