What Executives need to know about the fourth industrial revolution

By Mike Grandinetti, Global Professor of Innovation, Entrepreneurship Marketing at Hult International Business School (MBA, Yale) Business Disruption is not new. We’ve been observing its effects for decades. In the U.S., 50% of companies that had previously achieved Fortune 500 status prior to Year 2K have lost that prestigious designation. How Industry 4.0 will be a disruptive innovation Since we entered the â€Å"Era of Accelerated Disruption† beginning in 2006, executives now understand just how powerful and relentless this trend has become. With the introduction of the iPhone, Facebook and Uber, GitHub, Palantir and Hadoop—all within a two year period—we reached an inflection point, driving an accelerated rate of change. Each of these technologies has had massive disruptive power. As a result, Blackberry, Nokia, Yahoo!, and countless others now, or soon will, appear in the â€Å"Financial Obituaries†. It’s the issue that keeps executives awake at night. Today, we’re approaching an even more significant inflection point. Additive manufacturing, robotics, VR/AR, UAVs and driverless vehicles capture the public imagination, but their disruptive power is poorly understood by the majority of senior executives. As the 4th industrial revolution spreads globally, we’ll see business disruption accelerate faster than can be imagined. It is certain to be the most disruptive period in the history of business. Major threats facing Executives from the Cloud and CyberSecurity Disrupt or be disrupted. Business as usual leads to certain failure. Leaders must take a comprehensive, adaptive, and courageous approach in order to thrive in the Industry 4.0 Era, especially when it comes to harnessing the pervasive presence and power of the Cloud and the escalating challenges and threats around CyberSecurity. Executives must realize that: the Cloud literally connects everything, from traditional connected devices such as smart phones, tablets, and servers, to Industry 4.0 technologies such as sensors, robots, 3D printers, and â€Å"smart† cars; as a result, there has been a huge shift in the â€Å"intelligence† of these hyper-connected devices, where they can increasingly â€Å"think† on their own. This has driven the shift from the era of programmable computers to the era of cognitive, connected devices. Similar to Metcalfe’s Law, the value of this hyper-connected Cloud grows at a rate proportional to the square of the number of connected devices, dramatically amplifying the power of each connected device individually and the entire â€Å"Cloud† collectively. Business models that leverage the flow of real-time intelligence through the Cloud will dominate: Think of Tesla’s â€Å"recall†Ã¢â‚¬â€which only required a software update sent to all of their vehicles around the globe to instantaneously fix a problem with their vehicles’ low ground clearance—radically different than that of Toyota or GM, who have to have every single car brought to a dealer for physical repair and service. Similar to the war on terror, the CyberWar will be ongoing. It’s the cost of living in a hyper-connected, â€Å"always on† world. The Internet Storm Center identifies new security threats daily—and this trend is only going to accelerate. For example, the exponential rise of ransomware attacks has grown, partly because of the emergence of crypto-currencies like Bitcoin, which enable the Cyber Thief to remain anonymous. Persistent vigilance will be required to protect customer privacy, organizational IP, business processes, and trade secrets. The U.S.’s approach to Technology 4.0 The US approach relies on the private sector to invest in innovation. Privately funded investments include: Corporate RD: internal investments in new technologies Corporate MA: acquisitions of startups Open Innovation: collaboration through hackathons, open source projects, etc. Early Stage Venture Capital: investing in entrepreneurs Corporate RD investments Uber Advanced Technology Group (ATG). It focuses on self-driving technologies, mapping, and vehicle safety, with a mandate to develop long-term technologies that advance Uber’s mission of bringing safe, reliable transportation to everyone, everywhere. GE’s RD Lab in Niskayuna, NY, focuses on additive manufacturing. 3D Printing has radically transformed the time it takes for GE to manufacture jet engines, enabling them to create and test many iterations of critical jet engine parts in two weeks, vs. the previous two-plus years. Corporate MA Uber acquired  autonomous vehicle driverless truck startup Otto for $680 million, as they continue to move beyond their core ride-sharing market. GE acquired 3D Printing companies SLM Solutions Group and Arcam AB for a combined value of $1.5B USD. Open Innovation Uber partnered with global auto-makers Toyota, Volvo, and Ford to develop driverless technology. GE runs hackathons to invent and design new products, supplementing the work of its own engineering teams, attracting hundreds to thousands of global applicants. Corporate and Traditional Venture Capital GE Ventures invests in Cloud Infrastructure, the Data Value Chain, Cyber Security startups. They first invested in, and then GE acquired, startups Bit Stew Systems and Wise.io to expand its Predix platform for industrial internet applications. If you would like to find out more about Hult’s global business programs,  download a brochure here. Originally published in Italian in the April issue of Harvard Business Review Italy Download the Italian version, republished online by Accenture, here. Mike Grandinetti is  Global Professor of Innovation, Entrepreneurship Marketing at Hult International Business School. He teaches to EMBA, MBA, and Masters students  across  Hults London, Boston, San Francisco, Dubai, and New York campus locations as well as being Chief Marketing and Strategy Officer of Reduxio, a venture-capital backed advanced technology startup. He has an MBA from Yale School of Management and a Bachelor in Mechanical and Aerospace Engineering from Rutgers. Step up your game with executive education at Ashridge agile business school. To find out more, take a look at our blog Career mapping: How to become an executive in the next 5 years, or firm up your exec career footing with a Masters in International Business from Hult. Download a brochure or get in touch today to find out how Hult can help you learn everything about the business world, the future, and yourself. Hult Rotation offers you a chance to study in a truly global way. Our rotation program allows you to study and be immersed in some of the finest cities in the world. 📠¸: @jasminmanzano . Hult Rotation offers you a chance to study in a truly global way. Our rotation program allows you to study and be immersed in some of the finest cities in the world. 📠¸: @jasminmanzano . Each year, Hult seeks to enroll a talented and ambitious incoming class from all over the world. We look for diverse students with a wide range of experiences, perspectives, and interests—students who will thrive in our unique educational atmosphere. Are you ready for a truly global experience? 📠¸: @iambrunadiniz . Each year, Hult seeks to enroll a talented and ambitious incoming class from all over the world. We look for diverse students with a wide range of experiences, perspectives, and interests—students who will thrive in our unique educational atmosphere. Are you ready for a truly global experience? 📠¸: @iambrunadiniz . We’re excited to start 2020 on a ranking high! Hult is proud to have been placed #28 in Poets Quants 2020 rankings for Best Undergraduate Business Schools in the US. Taking a huge leap of 32 places from our 2019 position, we’re also very happy to have secured top positions in key categories like: life-changing experience, practicality of the degree, and global immersion. . With five global campuses, a student body of over 130 nationalities, and a learn-by-doing approach—Hult offers a student experience like no other. . We’re excited to start 2020 on a ranking high! Hult is proud to have been placed #28 in Poets Quants 2020 rankings for Best Undergraduate Business Schools in the US. Taking a huge leap of 32 places from our 2019 position, we’re also very happy to have secured top positions in key categories like: life-changing experience, practicality of the degree, and global immersion. . With five global campuses, a student body of over 130 nationalities, and a learn-by-doing approach—Hult offers a student experience like no other. . â€Å"I’m from an engineering background and needed a whole new skill set for the industry I wanted to switch to. I learned a lot about myself and how I deal with being out of my comfort zone. I learned both soft and hard skills, from how to work in very diverse teams to key accounting metrics and strategy. I was surprised by how weak I was at certain tasks in English or how strong I actually was in other areas. Hult gave me opportunities to try new things and meet people from places I never thought I would have friends. . My internship experiences gave me the chance to broaden my view of different cultures and different companies. I had the opportunity to work and live with people whose values differed from people in my home country. I thought that this would be difficult, but it gave me the chance to reflect on my own values and assess if they were a result of my home country environment or if they were intrinsically mine. . Diederick ter Kulve (@diederick.terkulve) Netherlands Masters in International Business . â€Å"I’m from an engineering background and needed a whole new skill set for the industry I wanted to switch to. I learned a lot about myself and how I deal with being out of my comfort zone. I learned both soft and hard skills, from how to work in very diverse teams to key accounting metrics and strategy. I was surprised by how weak I was at certain tasks in English or how strong I actually was in other areas. Hult gave me opportunities to try new things and meet people from places I never thought I would have friends. . My internship experiences gave me the chance to broaden my view of different cultures and different companies. I had the opportunity to work and live with people whose values differed from people in my home country. I thought that this would be difficult, but it gave me the chance to reflect on my own values and assess if they were a result of my home country environment or if they were intrinsically mine. . Diederick ter Kulve (@diederick.terkulve) Netherlands Masters in International Business . Say a big hello to our Bachelor of Business Administration program cover star, Elisa Orus Plana âÅ" ¨ . â€Å"I’m excited for the future—especially that I cant predict whats going to happen. Maybe Ill end up in Mexico working for a trading company or maybe in Africa, developing my own business. Everything is possible, and the options are constantly changing. I love the idea that Im never going to be stuck doing the same job until the end of my life if I dont want it to be like this. . Hult really supports me and my ambitions and truly believes that we deserve to be considered as professionals as well as students. Here, I get to express not just my opinions but all elements of myself. From my creative side with the Fashion Society to my finance and business sides in Trading Club and the Management Consulting Club. We get a different type of learning here. Not just essential knowledge and theory, but practical skills and mindset. The school is always evolving. We’re encouraged to innovate and to always look for new ways of doing traditional things. We learn how to be more confident and become aware of how we can impact our environment. The school aims to help you become a better version of yourself and to stand out from the crowd.â€Å" . Elisa Orus Plana French Bachelor of Business Administration Class of 2021 Say a big hello to our Bachelor of Business Administration program cover star, Elisa Orus Plana âÅ" ¨ . â€Å"I’m excited for the future—especially that I cant predict whats going to happen. Maybe Ill end up in Mexico working for a trading company or maybe in Africa, developing my own business. Everything is possible, and the options are constantly changing. I love the idea that Im never going to be stuck doing the same job until the end of my life if I dont want it to be like this. . Hult really supports me and my ambitions and truly believes that we deserve to be considered as professionals as well as students. Here, I get to express not just my opinions but all elements of myself. From my creative side with the Fashion Society to my finance and business sides in Trading Club and the Management Consulting Club. We get a different type of learning here. Not just essential knowledge and theory, but practical skills and mindset. The school is always evolving. We’re encouraged to innovate and to always look for new ways of doing traditional things. We learn how to be more confident and become aware of how we can impact our environment. The school aims to help you become a better version of yourself and to stand out from the crowd.â€Å" . Elisa Orus Plana French Bachelor of Business Administration Class of 2021"> During the final days of 2019, you probably reflected on what you’ve accomplished this year—and even this decade—and what you’d like to achieve in 2020. Let us know in the comments below. During the final days of 2019, you probably reflected on what you’ve accomplished this year—and even this decade—and what you’d like to achieve in 2020. Let us know in the comments below. â€Å"The first time we did group work on the program, I went head-to-head with a colleague. It taught me a lot about how I see people, how people see me, and how conflict can be resolved in a kind and productive way. The best feedback you get, when delivered constructively, is the most critical because it really feeds into how you lead. I’ve completely reversed my leadership style—the result is so much richer and more powerful when you lead from behind and lead with strength. . Studying in tandem with working, whilst challenging, gave me the perfect platform to directly apply learning concepts into my business environment, the competitive landscape, and the real-estate industry as a whole. When I started the program, I was very happy in my corporate role. But my courage and aspirations grew to the point that I took on a whole new direction. Having my career coach, Joanna, as a sounding board allowed me to really be strategic and get to know myself. She coached me thro ugh all the interviews, the research, and the questions. It went in parallel with what I was doing academically and after six months everything just clicked. . I went into the EMBA knowing I had nothing to lose and I’ve come out with everything. Great strength, global friends, amazing learning, mentors from professors, a job I love, and the knowledge that I can set my mind to achieve anything and with the right support and resources I’ll get there.† . Kashani Wijetunga British, New Zealand Sri Lankan Associate Director Senior Strategy Consultant CBRE EMBA Class of 2019 . â€Å"The first time we did group work on the program, I went head-to-head with a colleague. It taught me a lot about how I see people, how people see me, and how conflict can be resolved in a kind and productive way. The best feedback you get, when delivered constructively, is the most critical because it really feeds into how you lead. I’ve completely reversed my leadership style—the result is so much richer and more powerful when you lead from behind and lead with strength. . Studying in tandem with working, whilst challenging, gave me the perfect platform to directly apply learning concepts into my business environment, the competitive landscape, and the real-estate industry as a whole. When I started the program, I was very happy in my corporate role. But my courage and aspirations grew to the point that I took on a whole new direction. Having my career coach, Joanna, as a sounding board allowed me to really be strategic and get to know myself. She coached me thro ugh all the interviews, the research, and the questions. It went in parallel with what I was doing academically and after six months everything just clicked. . I went into the EMBA knowing I had nothing to lose and I’ve come out with everything. Great strength, global friends, amazing learning, mentors from professors, a job I love, and the knowledge that I can set my mind to achieve anything and with the right support and resources I’ll get there.† . Kashani Wijetunga British, New Zealand Sri Lankan Associate Director Senior Strategy Consultant CBRE EMBA Class of 2019 . â€Å"It was now or never. I knew that I’d have likely stayed in my neighborhood for years to come if I didn’t take this opportunity. I’d not lived or studied outside of the U.S. before. So I left my job as a global strategist at an advertising agency and moved halfway around the world. I’ve come back a more culturally aware, well-versed person. I’ve realized that everything is a learning experience and an opportunity for growth. Ill definitely carry this mindset with me into the future. Technology and social media allow us to be different people in several places at once. Im excited to see how I can establish myself in whatever city Ill be lucky enough to call home and still maintain deep connections with people all over the world. I’m inspired by my classmates every day. Hearing some of their life stories and how getting this degree fits into their greater mission has been very humbling. My biggest challenge has been finding the ‘right’ path for me. There have been rooms Ive felt like I shouldnt be in, but now Im proud to feel as though I truly belong, wherever I am.† . Dwayne Logan, Jnr. American MBA Class of 2019 . â€Å"It was now or never. I knew that I’d have likely stayed in my neighborhood for years to come if I didn’t take this opportunity. I’d not lived or studied outside of the U.S. before. So I left my job as a global strategist at an advertising agency and moved halfway around the world. I’ve come back a more culturally aware, well-versed person. I’ve realized that everything is a learning experience and an opportunity for growth. Ill definitely carry this mindset with me into the future. Technology and social media allow us to be different people in several places at once. Im excited to see how I can establish myself in whatever city Ill be lucky enough to call home and still maintain deep connections with people all over the world. I’m inspired by my classmates every day. Hearing some of their life stories and how getting this degree fits into their greater mission has been very humbling. My biggest challenge has been finding the ‘right’ path for me. There have been rooms Ive felt like I shouldnt be in, but now Im proud to feel as though I truly belong, wherever I am.† . Dwayne Logan, Jnr. American MBA Class of 2019 . Happy New Year, Hultians! . Happy New Year, Hultians! .