Banking on Disruption: TCS and the Clayton Christensen Institute

TCS and the Clayton Christensen Institute have collaborated to produce a series of articles and whitepapers that explore the future of industries through the lens of a set of fundamental theories developed by Harvard Business School Professor Clayton Christensen (Mr. Christensen is a TCS Board member). The theories offer a form of what-if analysis that leaders can leverage to better understand the cause and effect between actions and results. These theories include Disruption Theory, the Theory of Jobs to Be Done, and Modularity Theory. In this case, the author focuses on the disruptive potential of innovation, and this first piece in the series tackles Disruption in the Banking Industry.

The approach represents one aspect of a Future Thinking exercise which seeks to understand the disruptive potential of current innovations in each domain. It is a component of the “See” phase within the future framework described recently via this Post. The scenarios in this case are domain specific (payment, wealth management, and lending), with the ecosystem component of the framework focused on the current financial infrastructure. The response component represents a conclusion based on the application of the above-mentioned theories. Some key findings from the article:

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Uncertainty Drives the need to Sense and Respond

“The rhythm of technology is changing the rhythm of business, and we’re all going to need to adapt”Jeff Gothelf and Josh Seiden, Authors of Sense and Respond

Back in 2013, in a post on sense and respond systems, I talked about the drivers that would push organizations towards a sense and respond paradigm. There are no bigger drivers than volatility and uncertainty, and nearly four years since that post, that fact is becoming clearer. In a recent book by Jeff Gothelf and Josh Seiden, they elevate sense and respond to a position that is core to achieving an adaptive enterprise. They see feedback loops and a movement away from command and control as the enabling mechanisms that allow us to thrive in the digital age.

Management expert Gary Hamel summarizes the challenges we face as the structures of the industrial age collide with the digital age:

“Modern management is one of humanity’s most important inventions. But it was developed more than a century ago to maximize standardization, specialization, hierarchy, control, and shareholder interests. While that model delivered an immense contribution to global prosperity, the values driving our most powerful institutions are fundamentally at odds with those of this age – zero-sum thinking, profit-obsession, power, conformance, control, hierarchy, and obedience don’t stand a chance against community, interdependence, freedom, flexibility, transparency, meritocracy, and self-determination. It’s time to radically rethink how we mobilize people and organize resources to productive ends”.

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Intersections Promise to Drive Multiple Paradigm Shifts

Since the time I completed this post on Disruptive Power and Intersections, it continues to receive attention. It is by far the most effective component of any Future Thinking effort. Given the continued traffic to this two year old post, I am updating with current content. By way of reminder, the anchor emerging futures visual is available via this PDF. An expansion of the science and technology foundation is visualized via this PDF. The visual below connects the intersections of 8 combinatorial scenarios. This is not an exhaustive set of connections; it is strictly intended to describe the scenarios at a high level. This visual can be downloaded via this PDF.disruptive-power

Figure 1: Intersections amplify both power and impact

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The Collapse of Traditional Structures: An Ecosystem Evolution

In my previous post on the Transformation of Interaction, I mentioned the emergence of ecosystems and their likely impact on how we experience life. Together, the evolution of interaction and ecosystems plays a significant role in how we view experiences going forward. I referred to this in 2013 as the movement towards Next Generation Experiences. In the coming months, I will share a point of view that captures a finite set of future ecosystems. To position that discussion, it is helpful to look at how this evolution may ensue.


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Coffee Break with Game Changers: An Innovation Explosion

On November 30th, I had the pleasure of participating in another Game Changers show. I was joined by Futurist Gerd Leonhard and SAP Innovation executive Timo Elliott. The show was expertly moderated by Bonnie D. Graham, starting with her positioning of the topic: “Impossible is not a fact. It is an opinion” (Muhammad Ali). A unique clustering of inventions in the century after the U.S. Civil War improved the American and European standard of living – human well-being – more than any period before or after, with advances in everything from food and energy to health and work. Can our current innovation explosion have a similar impact despite unintended consequences? 

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