Note: The future we all read about as kids is finally here. By 2020 there will be many game changers available to us all. However, as a business person, if you don't keep track of this stuff, you could be left behind. McKinsey & Company Consulting has painted a fabulous picture of this future, which is only 5 years away. As always, you can find all my blog posts from 2013 to the present on my website at http://stevemarshallassociates.com/steves-blog/.
People pay plenty of money for consulting giants to help them figure out which technology trends are fads and which will stick. You could go that route, or get the same thing from the McKinsey Global Institute’s in-house think-tank for the cost of a new book. No Ordinary Disruption: The Four Global Forces Breaking All the Trends, was written by McKinsey directors Richard Dobbs, James Manyika, and Jonathan Woetzel, and offers insight into which developments will have the greatest impact on the business world in coming decades. Below, you will find a recap of their recent their list of the “Disruptive Dozen”—the technologies the group believes have the greatest potential to remake today’s business landscape.
The book's authors predict that the price of lithium-ion battery packs could fall by a third in the next 10 years, which will have a big impact on not only electric cars, but renewable energy storage. There will be major repercussions for the transportation, power generation, and the oil and gas industries as batteries grow cheaper and more efficient.
As super computers make the enormously complicated process of genetic analysis much simpler, the authors foresee a world in which “genomic-based diagnoses and treatments will extend patients’ lives by between six months and two years in 2025." Sequencing systems could eventually become so commonplace that doctors will have them on their desktops.
The ability to manipulate existing materials on a molecular level has already enabled advances in products like sunglasses, bike frames, and medical equipment. Scientists have greater control than ever over nanomaterials in a variety of substances, and their understanding is growing. Health concerns recently prompted Dunkin' Donuts to remove nanomaterials from their food. But certain advanced nanomaterials show promise for improving health, and even treating cancer. Coming soon: materials that are self-healing, self-cleaning, and that remember their original shape even if they’re bent.
Autonomous cars are coming, and fast. By 2025, the “driverless revolution” could already be “well underway,” the authors write. All the more so if laws and regulations in the U.S. can adapt to keep up. Case in point: Some BMW cars already park themselves.
Wind and solar have never really been competitive with fossil fuels, but McKinsey predicts that status quo will change thanks to technology that enables wider use and better energy storage. In the last decade, the cost of solar energy has already fallen by a factor of 10, and the International Energy Agency predicts that the sun could surpass fossil fuels to become the world’s largest source of electricity by 2050.
The robots are coming! “Sales of industrial robots grew by 170% in just two years between 2009 and 2011,” the authors write, adding that the industry’s annual revenues are expected to exceed $40 billion by 2020. As robots get cheaper, more dexterous, and safer to use, they'll continue to grow as an appealing substitute for human labor in fields like manufacturing, maintenance, cleaning, and surgery.
Much-hyped additive manufacturing has yet to replace traditional manufacturing technologies, but that could change as systems get cheaper and smarter. “In the future, 3D printing could redefine the sale and distribution of physical goods,” the authors say. Think buying an electric blueprint of a shoe, then going home and printing it out. The book notes that “the manufacturing process will ‘democratize’ as consumers and entrepreneurs start to print their own products."
The explosion of mobile apps has dramatically changed our personal experiences (goodbye hookup bars, hello Tinder), as well as our professional lives. More than two thirds of people on earth have access to a mobile phone, and another two or three billion people are likely to gain access over the coming decade. The result: internet-related expenditures outpace even agriculture and energy, and will only continue to grow.
Automation of knowledge work
It’s not just manufacturing jobs that will be largely replaced by robots and 3D printers. Dobbs, Manyika, and Woetzel report that by 2025, computers could do the work of 140 million knowledge workers. If Watson can win at “Jeopardy!” there’s nothing stopping computers from excelling at other knowledge work, ranging from legal discovery to sports coverage.
Internet of things
Right now, 99% of physical objects are unconnected to the “internet of things.” It won’t last. Going forward, more products and tools will be controlled via the internet, the McKinsey directors say, and all kinds of data will be generated as a result. Expect sensors to collect information on the health of machinery, the structural integrity of bridges, and even the temperatures in ovens.
The growth of cloud technology will change just how much small businesses and startups can accomplish. Small companies will get “IT capabilities and back-office services that were previously available only to larger firms—and cheaply, too,” the authors write. “Indeed, large companies in almost every field are vulnerable, as start-ups become better equipped, more competitive, and able to reach customers and users everywhere.”
Advanced oil and gas exploration and recovery
The International Energy Agency predicts the U.S. will be the world’s largest producer of oil by 2020, thanks to advances in fracking and other technologies, which improved to the point where removing oil from hard-to-reach spots finally made economic sense. McKinsey directors expect increasing ease of fuel extraction to further shift global markets.
Next Week: Who is the predominant work group on LinkedIn?