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EMPOWERING LIVES - CREATING VALUE FOR THE YOUTH THROUGH INFORMATION

TECHNOLOGY AND INNOVATION April 2018

How can young people create value for themselves from new realities and

opportunities through the effective leveraging of information, technology

and innovation?

Organised by:

Transformative

Development

Capacities (TDC) &

DaySeven Group

Objectives

How can young people create value for themselves by using information, technology and innovation to reduce transactional costs, and improve processes and productivity?

Change your thinking

Context

McEdward Murimbika - 2018 Innovation & Entrepreneurship - WBS

•Demographic trends

•Expertise trend

•Attention trend

•Democratic trend

Common societal trends transforming Global Society?

To become a successful Entrepreneuer/innovator You need

the approach and mindset of designer.

You need Design Thinking to Connect to Human Experience

in all its sophistication & complexity.

• Collaboration in multidisciplinary teams.

Engineering, business, design, social sciences should be

combined as they are combined in our real life experience;

• Ability to tackle ill-defined problems.

Systematic approach to work with qualitative information –

“finding it, gaining insights, organizing it optimally for

conceptualization, evaluation and communication”*;

• Co-creation with your customer new business models,

new markets and, ultimately, a new world.* Charles L. Owen Design Thinking: Driving Innovation

Two ways of thinking, two modes of seeing

Context

McEdward Murimbika - 2018 Innovation & Entrepreneurship - WBS

TECHNOLOGY

Technology developmentModern economic system from the 1st to 4th Industrial Revolutions have been based on 3 foundations –

• Energy,

• Communication and

• Transport

Technology is the thread that holds them all - It is central to the facilitation of high-growth opportunities.

Technology plays a big role in securing and nourishing competitive

advantage

Underscore the need for entrepreneurs to keep up with technological

advances

Information is currently one of the most potent competitive weapons

Understanding technology

• Technology = application of science to solving problems or improving operations, especially in industry

• Technology = means to convert inputs into outputs• Dorf and Byers (2008) provide seven key characteristics

of a new basic technology:

- Functional performance

- Acquisition cost

- Ease of use

- Operating cost

- Reliability

- Serviceability

- Compatibility

Understanding technology (Cont.)

• Dorf & Byers (2008) identify 9 categories of opportunity

created by technology:

- Increasing value (product/service)

- New applications

- Mass markets

- Customisation

- Increasing reach

- Managing supply chain

- Convergence of change

- Process innovation

- Increasing the scale of the firm.

Types and forms of technology

• Online technologies - based on the internet

• Computer and mobile technology - includes PCs,

laptops, smartphones, tablets

• Software - ‘symbiotic technology’ which increases

functionality and drives other technologies

• ‘Apps’ - software application programme that performs

very specific function for end-user, usually from internet

to smartphone or tablet

• Manufacturing technologies - include machinery for

making particular products plus design software, e.g.

CAD or 3-D printing

Categories of technology

• Base technologies - common to all players in a particular industry, e.g. sewing machines inclothing

• Key technologies - unique to handful of

players because of cost, accessibility and

level of skill required, e.g. nuclear-associated

technologies

• Pace technologies - have potential to

revolutionise an industry. Can also be called

“emerging technologies”, e.g. renewable energy,

artificial intelligence, biotechnology,

nanotechnology, etc.

Exponential Technology

Exponential growth in the InternetTechnology more powerful, becoming cheaper and

Accessible

Moore’s Law, processing power of microprocessors effectively

doubles every 18 months

Metcalfe’s Law, states that the value of a network will

increase with the square of the number of its participants

South African entrepreneurs should consider an e-commerce

strategy.

The disruption theory of Singularity University’s co-founder Peter Diamandis is playing out across industries:

As technologies become digitized and thus able to dematerialize existing products and solutions, there is potential for them to become democratized, which could threaten the market positions and demonetize the margins of existing players.

6Ds of Disruptive Technologies

1. “Digitalization” – The chain reaction resulting from advances in information technology starts here and makes collaboration easier.

2. “Deception” – Growth is so tiny at this stage that it’s hard to see and appreciate.

3. “Disruption” – The impact of an innovation becomes obvious to a larger audience. At this level, “either disrupt yourself or be disrupted by someone else.”

4. “Demonetization” – This means “the removal of money from the equation.” Chris Anderson, former editor of Wired and the author of Free, writes that giving stuff is “one of the easiest ways to make money.” He is also a beneficiary of “free”: he uses an inexpensive netbook not a laptop, runs a free Linux operating system and free Google Docs, and taps into free Internet access at a coffee shop.

5. “Dematerialization” – Once-solid objects take less-solid forms. The typical cellphone now carries software apps that would have cost $900,000 retail in the early 1980s.

6. “Democratization” – At this stage, the hard costs of buying and owning a piece of equipment drops so low that just about anyone can afford it.

Source: Peter H. Diamandis and scientist Steve Kotler - Abundance - getAbstract © 2015

Law of Disruption

Source: PwC analysis in ‘Sizing the Prize’ report on AI (June 2017)

Source: PwC analysis in ‘Sizing the Prize’ report on AI (June 2017)

Technology and Competitive

Advantage

Technology

Competitive

Dynamics

Competitive

AdvantageValue

Creation

Imagining Incubating Demonstrating Promoting Sustaining

Creating unique

product ideasProving product

viability

Build

prototypes

Build products &

introduce to

markets

Build markets

& improve

products

Find interested

people & money

Find resources to

build prototypes &

identify markets

Build initial

markets &

plan market

expansions

Develop

market growth

strategies

Product

planning

steps

Business

planning

steps

Technology Commercialization Process

Resource Needs

People Small Moderate Medium Large

Physical None Moderate Medium Large

Financial None Moderate Large Largest

Context

McEdward Murimbika - 2018 Innovation & Entrepreneurship - WBS

THANK YOU FOR YOUR PARTICIPATION