Pioneeing Competitive Advantage in Cyber Physical Systems ( Platforms ) by Exponentialization of Corporate Management Systems
The following thoughts look strategic while building a competitive advantage in the Reality — Virtuality Conundrum of cyber physical systems for driving Corporate Management Systems and Business Models within them.
This helps a corporate position as Global Pioneer in deploying “Man Machine Interfaces ( MMI ) to usher in the way of Digital Life” ( towards exponential hybrid thinking and not linear thinking ) .
While Jeff Bezos in 2002 issued the API Mandate ( Application Programming Interfaces ) to lay the foundation of modern day platform centric Amazon , we could very well be the pioneer of MMIs .
The Future Is Closer Than it Seems and is mostly Counter Intuitive :
1. By 2029 , the computers shall reach levels of human intelligence as price performance of computing power grows exponentially . This shall transform the nature of work like never before .
2. So for us it shall be important to architect our platforms that shall drive all our business processes preparing well for a future seamless integration with augmented human minds ( synthetic neocortex acting as MMI )
4. Using diffractive waveguides etched into the glass material , the lens of the spectacles is becoming the new computer on which light when projected can overlay virtual objects on real world things . This company magicleap is driving such interface for Mixed Reality (Reality — Virtuality Conundrum ) beyond AR / VR .
5. No wonder why Google , JP Morgan , Morgan Stanley , Alibaba and tons of other major companies and institutional players are invested into it .
6. Waveguides also lay a crucial step towards optical computing where we make light programmable and photons instead of electrons perform digital computations as we progress towards programmable sound and quantum computing the future of telecommunications .
Next Steps for Scoping Exponentialization ( Riding the wave of Cyber Physical Systems )
1. Reengineer for exponentialization in corporate processes , systems and operating models currently quantified in Corporate Management Systems and Business Models Within Them .
2. Create a plan for completely removing human intervention in phases with the deployment of context specific exponential technologies listed below .
3. Deploy a plan towards 2029 to not just stay ahead of disruption but become a perpetual disruptor .
4. The following exponentialization methodology seems apt for such scoping exercise .
Exponentialization methodology from Singularity University :
1. Digitized — Not all of our systems and processes are digitized . When digitized , they enter the same exponential phase as computing power .
2. Deceptive — The processes when digitized lay dormant and deceptive as their impact towards disruption is not fully understood.
3. Disruptive — These deceptive things with identification lead to new exponential markets which disrupt the old school .
4. Demonetize — Money is increasingly removed from the equation as technology becomes more cheap and impacts costs drastically .
5. Dematerialized — Physical products get removed from the equation . ( Kodak going bankrupt and Instagram becoming the new photography tool in the same year 2012 )
6. Democratized — Mass adoption that makes the disruption transformative and a billion dollar entity .
1. Staff on Demand : The half-life of a learned skill used to be about thirty years. Today it’s down to about five years. In any information-enabled business a large internal staff seems increasingly unnecessary, counterproductive and expensive.
2. Community & Crowd : Leverage abundance of over a trillion man hours a year of free time that the world has to commit to shared projects
3. Algorithms : AI and algorithms mitigate and compensate for many of the heuristics in human cognition .
4. Leveraged Assets : Recently there’s been an accelerating trend towards outsourcing even mission-critical assets. Non-ownership, then, is the key to owning the future — except, of course, when it comes to scarce resources and assets.
5. Engagement : Properly implemented, Engagement creates network effects and positive feedback loops with extraordinary reach.
Taking the Moon Shot Step from API to MMI (competitive advantage worth building )
1. Amazon is the greatest example of these above six principles applied in the modern world as Jeff Bezos made it compulsory for all his departments to collaborate through APIs right in the beginning .
2. Through such MMI interface our workforce shall be integrated with corporate cloud which shall transform linear thinking into exponential thinking and revolutionize a corporate .
To enable organization wide MMI as biggest disrupting factor , the operating DNA defined in Corporate Management Systems and the Business Operating Models defined within them shall have to be engineered for exponential performance and eventually have a roadmap to evolve towards MMI .
Thus a corporate will become an organization that pioneers “Man Machine Interfaces as the way of Digital Life” which shall lead to create Unprecedented Bold Future Economic Value classified into following two parts .
Shifting Industry Landscapes
a. Energy / Fuels :
i. Derisking fossils fuels based products by migrating to alternative petchem or new verticals . The daily demand for oil shall drop by 2 Million barrel per day between 2020 and 2030 . India is planning to migrate all vehicles on electricity by 2030 . Shell has begun its fossil fuels divestment so have Exxonmobil , Cocono Phillips and others .
ii. With focus on the new fuel ( electricity ) for vehicles , it is strategic to equip fuel retail outlets with electric vehicles charging Infrastructure . ( Tesla Charging Stations )
iii. Creating Lithium Air/Ion Grid Connected Storage Infrastructure around sources of electricity to feed the charging stations . ( Tesla Giga Factory )
iv. Colonization of mars shall be a major driver for creating fuels for mars flights ( Liquid Hydrogen or Fuel Cells or Methane or Oxygen ) and local production of rocket fuel on Mars via in situ resource utilization (ISRU).
v. Clean / Renewables Energy Infrastructure ( Solar Power Walls , Mag Dev Solar Panels , Wind , GeoThermal , BioFuel , BioMass , Tidal Waves , Energy from Vacuum , Distributed Power ) .
b. Materials Manufacturing :
i. Cocreation and Micro manufacturing is the new assembly line : Reinventing corporate business model would be strategic along with analytics ( AI / ML / DL ) powered by sensorization ( IOT ) .
ii. Materials for Grid Connected Battery Storages : Lithium Air Batteries for storage is a new materials related opportunity . 14GW of battery storage is required by 2020. This market is expected to grow at 73 % CAGR till 2020 . A compound called lithium iodide (LiI) has been considered a leading material for lithium-air batteries, which could deliver more energy per pound compared to today’s leading batteries.
iii. Space Infrastructure Materials : Post mars colonization , human population on Mars would need similar products as we have on earth . There is a huge opportunity here in building materials that shall help infrastructure for space colonies and asteroids mining ( water + precious metals . One asteroid may contain more platinum than what we have collectively mined so far in human history . Resources from asteroids shall add tens of billions of dollars to the global GDP . Water sourced from asteroids will greatly enable the exploration of solar system ) . Opportunity lies here to evolve steel strength materials that can withstand gravity , extremely cold temperatures, radiation, vacuum of space and other performance traits necessary in near earth orbits and deep space . The design includes fully reusable launch vehicles , human-rated spacecraft, on-orbit propellant tankers, rapid-turnaround launch/landing mounts , Orbital Transportation Hub , Space Fuel Depot for restocking hydrogen and oxygen , Deep-Space Communication Relay ( inter-stellar broadband ) and many more . The near earth orbits satellites shall build the next laser speed internet . These satellites need special building materials which again is a big opportunity as the satellite companies intend to manufacture 3 satellites every day for orbit positioning .
iv. Materials for the Next Logistics Infrastructure : Building materials for HyperLoops the biggest logistics infrastructure of tomorrow . SpaceX is planning city to city rockets speeding at 17000 mph . These would need high performance materials which is another upcoming opportunity .
v. Industrial Biology : Microbial sciences shall create industrial products / materials in mass quantities.
vi. Smart materials : Polymers / Polyester etc that shall power a world of wearable’s with embedded computing . Google Jacquard is bringing smart clothing along with Levis .
vii. NanoTechnology : Building products at the convergence of biology , physics and chemistry .
viii. 3D Printing Materials : This is reinventing injection molding . Different materials can be used for 3D printing, such as ABS plastic, PLA, polyamide (nylon), glass filled polyamide, stereolithography materials (epoxy resins), silver, titanium, steel, wax, photopolymers , grapheme and polycarbonate . All these shall be in high demand for additive manufacturing .
c. Organized Retail :
i. Brick and mortar shops aren’t likely to go out of business, but the way people shop will change. Stores will become showrooms and brand ambassadors. Physical stores of the future will focus on delivering brand experiences. Shopping will become an immersive, sensory, brand engagement online and in store . Transition from Omni channel to Omni experience in line with the millennial mentality is the future of retail .
ii. Retail has to deliver personalized shopping suggestions at scale for our huge customer base . Opinions would carry more weight than ever . And opinions will be created by devices and in-app engagement driving footfalls .
d. Telecom + Digital Services ( JIO ) :
i. Stratosphere / Space communications infrastructure to reach to the unreached 4 Bn .
ii. Near Earth infrastructure shall play a major role . These shall replace the terrestrial towers that we have . This infrastructure does not suffer from the call drops problem .
iii. Quantum Communications to create seamless interstellar broadband for inter planetary communication infrastructure .
e. Media and Entertainment :
i. Decentralized creation of content / stories is the new business model which calls for reinventing our operations to the new reality .
ii. Reinventing advertising as infrastructure provider as consumers become prosumers ( High ROI and Highly Engaging ) .
iii. Addressable TV is going mainstream while linear TV is phasing out . This shall improve our profitability in this segment .
iv. Digital streaming of movies is going mainstream through data centres reinventing the Cinema Experience .
v. Convergence of online and TV ( programmatic ) is becoming the new business model as adtech and martech are converging .
vi. Driving Network Effect across all the digital / mobile properties to monetize the huge subscriber base .
vii. Geofencing is becoming major traffic driver with minimum violation of PII ( Personally Identifiable Information ) .
f. Life Sciences :
i. Kiosks to dispense drugs delivery chips that shall release drugs as per physicians prescribed programmable microchip .
ii. Polymeric Nanoparticles that shall turn genes off and on and deliver drug where desired in human body .
iii. Tracking medical adherence / Gene Editing / Stem cells based 3D printing or human organs .
iv. Point of Care diagnostics converging with systems biology ( ie omic sciences — — genome , lipidome , epigenome , proteome , glycome , transcriptome , metabolome , microbiome etc ) to generate the new fields of pharmacogenomics , toxicology and nutrigenomics ( food as medicine ) .
g. Smart City :
i. Smart cities are becoming innovation hubs or Innovation clusters with smart ( embedded ) computing as the driver of new livelihood discovery .
ii. This shall create digital services / board band / e-governance opportunities to drive the smart infrastructure .
h. Sports / MICE Industry / Smart Spaces / Hospitality :
i. Disrupting of the stadium experience , Disrupting broadcasting with drones , Disrupting athlete experiences with changes in biological science and sportswear ( materials ) , The immersive sports experience , The new model of sponsoring and advertising in sports , Reinventing of teams and leagues , e-sports and fantasy sports , The concept of quantified fan , Extreme + Adventure Sports , Fintech for payments + ticketing , Capturing the fanbase economics are some of the trends .
ii. Globally, the Meeting Incentives Conferences and Exhibitions industry amounts at around USD 280–300 billion . Increased use of technology shall drive value here to create a vibrant community of exhibitors , corporates .
iii. Hospitality destinations are becoming wellness destinations with engaging technology powered experiences ( smart hospitality ) . Asset light models like airbnb are disrupting this space .
i. Impact Creating Foundation :
i. There’s a major rotation around the world toward impact investment, with major yield opportunities in renewables, agriculture, rural / urban real estate and other sectors with low correlations to the equity markets. Depending on the industry, these are serious growth businesses that give alpha growth in businesses that don’t correlate . Impact Investing is impactful when it affects the next one billion people . Research investments in basic “pillars” of human need — food, water, energy, shelter, health care, communication, education — shall create asymmetrical return profiles, many of which act as a hedge against inflation . For example initiatives like machines that convert humidity into water are impactful so are those which convert foul pond water into drinking water to the underprivileged . Solving World’s Biggest Problems will bring the Biggest Economic Value through Foundations .
j. Scalerator :
i. A full stack model is emerging spread across pre acceleration , verticalization , more interactions with market corporates , more consolidated across the entire value chain .
ii. Innovating on the edge / on the go is the prevalent trend here and startups are organizing around a massive transformative purpose to become the next billion dollar entity .
2. Combination of Exponentials Technologies that shall make us disruptively competitive : ( Better , Faster , Cheaper , Different , Disruptive . Common to all our businesses as relevant to contextual use case )
i. IOT : For embedded computing to capture those data points about our business which we were not able to capture so far with aggressive sensorization .
ii. BlockChain : For data lineage , data provenance , audit trails , governance infrastructure . Supply chain audit trails for all business .
iii. AI / Big Data / ML / DL / EL / Cloud Computing / Cognitive Computing / Quantum Computing : For enhanced analytics on the databases which have been improved by steps 1 & 2 . Plus symbiosis in Man — Machine interface . Embedded intelligence becomes a utility here which can be extended as part of our products . For example the smart homes / gaming we displayed at Vibrant Gujarat were a huge attraction . But we have not followed it through for mass adoption .
iv. Robotics / Cybernetics / Machine Vision : Automated and dehumanized work flow processes .
v. Cyber Security : Spoofing , spying , phishing DDos , data assurance , employeerisk , stegnography and a host of other cybercrimes need to be dealt in here .
vi. 3D Printing / Additive Manufacturing : Very relevant to our retail business where we could disrupt by creating a disruptive retail model of prototype , print and sell .
vii. Drones : Last mile delivery . Shop and leave we shall deliver model with drones .
viii. Digital Dressing Rooms , Curated experiences , Robotized customer service , Ultra-fast delivery , seamless stocking from home , integration with social networks ( share , buy , connect ) . Products jumping off screens with AR/ VR / MR . For our media and entertainment properties AR / VR / MR based story telling on the go .
ix. BlockChain is helping remove ad fraud which is the biggest waste .
x. Decentralized Social Networks on block chains are the new engagement model to create unprecedented brand equity engaging all stakeholders ( employees , customers , vendors , govt , civil society ) .
The above are some of my thoughts about approaches we may like to adopt while going to the drawing board doing things that are critically strategic for us to createunprecedented bold future economic value .
Blockchain happens to be one of the many exponentials that has got promise in creation of Exponential Competitive Advantages and hence considered a “shiny object.”
Permissioned and Private Distributed ledgers have a long role in a collaborative working like ours. Possible use cases includes our operations , supply chain , audit trails , stakeholder engagement and at large corporate governance ( my article ) .
Other exponentials include Big Data, AI, Robotics, Cybernetics, Additive Manufacturing, Quantum Computing, Industrial Biology, Cyber Security, Drones, IOT, 3D Printing, Autonomous Vehicles, Space Communications and many more .
But in our three- to five-year strategic plans, significant game changes in industry landscapes will likely need much more than a technology strategy.
It would pay long term to keep a goal about developing organizational capabilities in the following dimensions , particularly related to innovation intent, to navigate the pace of change as about understanding and determining the implications of any individual breakthrough.
1. Trend Sensing : First dimension is about finding ways to stay on top of new developments in technology, identifying and understanding exponential forces and sustaining advances affecting established fields.
2. Ecosystems / Platforms : Second dimension is about creating new relationships with shifting ecosystems — the communal networks in which companies partner, compete, collaborate, grow, and survive through platforms .
3. Experimentation : In the third dimension, experimentation, organizations rewire planning, funding, and delivery models so they can explore new concepts and ideas.
Building Exponential Organizations — The New Game Changing Business Model
Why Exponential Organizations : There is this wonderful book by Salim Ismail from Singularity University called exponential organizations which you might like to read . This book details how an Exponential Organization is one whose impact (or output) is disproportionally large — at least 10 x larger — compared to it’s peers because of the use of new organizational techniques that leverage accelerating technologies.
There is a special breed of motivation behind such Exponential Organizations . There’s a name for this breed of motivation. It’s called massive transformative purpose or MTP. Setting out to solve big problems brings purpose and meaning to work — it gives us a compelling reason to get out of bed in the morning and face another day. Futurist Peter Diamandis likes to say, “Find something you would die for, and live for it.” The more we organize around massive transformative purpose, the harder we’ll work, the more dedicated we’ll be, the faster we can solve big problems — and maybe most importantly, the more fulfilled we’ll feel about the work we do.
Futurist Ray Kurzweil ( Chief Engineer at Google ) , who has studied this phenomenon for thirty years, to make four signature observations:
1. First, the doubling pattern identified by Gordon Moore in integrated circuits applies to any information technology. Kurzweil calls this the Law of Accelerating Returns (LOAR) and shows that doubling patterns in computation extend all the way back to 1900, far earlier than Moore’s original pronouncement.
2. Second, the driver fueling this phenomenon is information. Once any domain, discipline, technology or industry becomes information-enabled and powered by information flows, its price/performance begins doubling approximately annually.
3. Third, once that doubling pattern starts, it doesn’t stop. We use current computers to design faster computers, which then build faster computers, and so on.
4. Finally, several key technologies today are now information-enabled and following the same trajectory. Those technologies include: artificial intelligence (AI), robotics, biotech and bioinformatics, medicine, neuroscience, data science, 3D printing, nanotechnology and even aspects of energy
Exponential organizations dwells on the following external characteristics :
- Staff on Demand , Community & Crowd , Algorithms , Leveraged , Assets , Engagement
Exponential Organizations can become as a basis for creating our own MTP and drive the change towards Platform Centricity with the Goal of Exponential Organization in mind .
Platform Centricity as Defined within the USA Federal Segment Architechture Methodology ( FSAM / FEA )
The following benchmarking with the US Federal Methodology of Platform Centered Transformational Approach ( FSAM / FEA ) can be used by corporates to Program Manage the entire Platform Centric Organization Project .
They use it for OMB ( Office of Management and Budget ) compliance and Platform centric Business Transformation .
In the USA , the Federal Segment Architecture Methodology (FSAM) is an enterprise architecture process for developing and using segment architectures . All big corporationsIBM / Oracle engaged by the Federal use this architecture for Platform Centricity . There are eight levels of scope for implementing an Enterprise Architecture using FSAM viz — : International , National , Federal , Sector , Agency , Segment , System , Application. The FSAM supports all three segment types as defined in the OMB / FEA ( Office of Management and Budget / Federal Enterprise Architecture ) Practice Guidance . The FSAM consists of process steps for developing a core mission area segment architecture and includes guidance for tailoring the approach to develop business service and enterprise service segment architectures. FSAM consists of the following segments ofArchitecture Model wherein an Enterprise Architecture model is created at above 8 different levels of detail & scope . All Business Transformations are structured around acommon model / approach / understanding of Federal Enterprise Architecture to facilitate Collaborative Planning Methodology :
- An Enterprise level model (an Enterprise Architecture) covers the whole organization or extended organization . It is focused for Strategic Outcomes . An enterprise service segment includes common or shared IT services supporting core mission areas and business services. Enterprise services are defined by the agency service model and include the applications and service components used to achieve the purpose of the agency (e.g., knowledge management, records management, mapping/GIS, business intelligence, and reporting).
- A Segment level model (a Segment Architecture) is a subset of an Enterprise Architecture model for a specific programme or business domain within an organization . It is focused for Business Outcomes . A business service segment includes common or shared business services supporting the core mission areas. Business services are defined by the agency business model and include the foundational mechanisms and back office services used to achieve the purpose of the agency (e.g., inspections and auditing, program monitoring, human resource management, and financial management).
- A Solution level model (a Solution Architecture) is a subset of an Enterprise Architecture model and may also be a subset of a Segment Architecture model . It is focused for Operational Outcomes . A core mission area segment represents a unique service area defining the mission or purpose of the agency. Core mission areas are defined by the agency business model (e.g., tactical defense, air transportation, energy supply, pollution prevention and control, and emergency response).
- There are 6 sub architecture domains in this common approach viz Strategic , Business Services , Data and Information , Enabling Applications , Host Infrastructure , Security .
Definitions for FSAM : A segment architecture is :
· ‘A detailed, formal description of areas within an enterprise, used at the program or portfolio level to organize and align change activity’.
· “A detailed results-oriented architecture (baseline and target) and a transition strategy for a portion or segment of the enterprise”
A federal enterprise architecture framework (FEAF) is the enterprise architecture of a federal government. It provides a common approach for the integration of strategic, business and technology management as part of organization design and performance improvement.
Platform Infrastructure is referred to as Consolidated Reference Model ( CRM ) . This reference model of FEAF equips OMB and federal agencies with a common language and framework to describe and analyze investments . It consist of a set of interrelated reference models designed to facilitate cross agency analysis and identification of duplicative investments , gaps and opportunities of collaboration within and across the agencies . Transformation is continuously channeled around the following reference models within CRM .
1. Performance Reference Model (PRM) : This reference model supports architectural analysis and reporting in the strategy sub-architecture view of the overall EA. The PRM links agency strategy, internal business components, and investments, providing a means to measure the impact of those investments on strategic outcomes.
2. Business Reference Model (BRM) : This reference model, which combines the Business and Service Component Reference Models from FEAF v1/2 , supports architectural analysis and reporting in the business services sub-architecture view of the overall EA. The BRM describes an organization through a taxonomy of common mission and support service areas instead of through a stove-piped organizational view, thereby promoting intra- and inter-agency collaboration.
3. Data Reference Model (DRM) : The DRM facilitates discovery of existing data holdings residing in “silos” and enables understanding the meaning of the data, how to access it, and how to leverage it to support performance results.
4. Application Reference Model (ARM) : The ARM categorizes the system- and application-related standards and technologies that support the delivery of service capabilities, allowing agencies to share and reuse common solutions and benefit from economies of scale.
5. Infrastructure Reference Model (IRM) : The IRM categorizes the network/cloud related standards and technologies to support and enable the delivery of voice, data, video, and mobile service components and capabilities.
6. Security Reference Model (SRM) : The SRM provides a common language and methodology for discussing security and privacy in the context of federal agencies’ business and performance goals.