In segment four of my interview with Chunka Mui, we discussed the ultimate demise of our industry construct and the emergence of horizontal ecosystems that remove friction from our life experiences – one experience at a time. This platform-enabled transition can be witnessed in action today, as we watch the Mobility ecosystem form one piece at a time. We can no longer think of industries in isolation, as we witness the collision of various industries and a reconfiguration of the money flow – over $2.5 Trillion in car-related economic value. Chunka uses the example of the collision between the automotive and technology ecosystems to describe this phenomenon: the shift from cars with computers inside, to computers with wheels on them.
Chunka Mui is the managing director of the Devil’s Advocate Group, a consulting team that helps organizations design and stress test their innovation strategies. Mr. Mui published a popular book titled The New Killer Apps.
Segment four is a quick three minute video.
You can view segment one – Autonomous Vehicles: An Interview with Chunka Mui – here.
You can view segment two – Reimagining Our Driverless Future – here.
You can view segment three – The Ripple Effect – here.
Download A PDF Version of the transcript.
Beyond the Driverless Car
An Interview with Chunka Mui
SEGMENT 4 of 5: The Emerging Mobility Ecosystem
Frank Diana: So I want to shift gears because we talked about ecosystems and I’m a big believer that our current industry construct will eventually over time, and who knows how much time but over time, really disappear and be overtaken by more of an ecosystem construct that is really driven by life experiences and the number of industries and companies that have to come together or governments that have to come together to enable those kinds of experiences will be broad. And so, for example this is a mobility ecosystem that we are talking about, but there’s also a smart home ecosystems, or a smart city ecosystem which could be adjacent ecosystems to this mobility ecosystem. So, a couple of questions for you:
One, how do you view the industry structure and its potential path and ecosystem specifically? And then talk to me a little about the adjacencies of the mobility ecosystem with something like a smart home and a smart city ecosystem.
Chunka Mui: Sure, well I agree with you completely that it’s long past the time where we can think about industries in isolation. I mean, we’re already at the point where if you think about the economy as is today, our analysis shows that something in the order of $2.5 Trillion flow through “car related” industries, but that’s just not automotive. That’s not only tier 1 suppliers and manufacturers and dealers, but that hundreds of billions of dollars through financial services, in the form of financing and insurance, and then you have as you mentioned earlier, you have municipalities that are dependent upon fees and licenses, hospital systems that are dependent up injuries, energy all that so we already have
- If you follow the money, as opposed to thinking about just the products that always flows through many, many different industries
- What we have in front of us is I think a reconfiguration of that money flow and therefore a collision of industries we hadn’t thought about before
- So, one example of that is that:
- Historically we’ve thought about Information Technology as being car components, you know, so GM licenses components from Ford and Intel and things of that sort into the car, but they’ve been suppliers
- When you think about autonomous technology what you really have is a collision between technology and automotive ecosystems so,
- Cars of today are really cars with computers inside on them
- Cars of tomorrow may be more like computers with wheels on them
- So, we have this strange occurrence now where you essentially have technology companies, like Google, competing with automotive companies, like General Motors and Diamler, about who defines the next generation product;
- So, you now have suddenly have this massive collision between those ecosystems and the question is, who’s going to be dominant, who’s gonna’ call the shots, as opposed to being a supplier?
- And that ripple effect is going to fallout into all those other industries that touch automotive.
That’s just one example, I think.
Frank Diana: That’s a great example, great example.
Well fascinating stuff Chunk and unfortunately, we’re out of time. So, I want to thank you for joining us today with those great insights and look forward to working with you in the future. If you’d like to learn more about Chunka and his perspectives on the future, please visit Chunka Mui dot com. You can learn more about our work at TCS by visiting TCS dot com or additional perspectives from my blog at Frank Diana @ wordpress dot com.
Thanks all for joining.
For Additional Information
Tata Consultancy Services
Devil’s Advocate Group