TRANSFORMING DISRUPTIVE TECHNOLOGY INTO OPPORTUNITY MARKET PLACE CHANGE & THE COOPERATIVE

Transcription

1 TRANSFORMING DISRUPTIVE TECHNOLOGY INTO OPPORTUNITY MARKET PLACE CHANGE & THE COOPERATIVE Michael J.T. Steep Executive Director, Stanford Disruptive Technology & Digital Cities Co-Bank Energy Directors Conference 2018 July in Colorado

2 SILICON VALLEY RULE OF EMGAGEMENT CHANGE If we wait for something to change without disrupting ourselves, we will be in big trouble. Cargill CEO David MacLennan We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten. Don t let yourself be lulled into inaction. Bill Gates

3 THEMES LEADING INTO TODAY S DISCUSSION Agribusiness Consolidation of smaller into larger farms Consolidation of co-ops Farm Supply Farmers Business Network changing model Ability to attain right price through technology Rural Power Declining revenue for many co-ops Move to renewable energy Electric batteries Rural Telecom move from land lines to broadband services Water and Waste Management Rural population decline Fragmentation Stanford Project on reading a city population health through waste analysis

4 Creates or enables new value proposition Changes underlying economics Displaces or disrupts a business model Creates sustainable innovation Speed of disruption overcomes resistance Creates enormous economic advantage for those who take advantage of the disruption DISRUPTIVE TECHNOLGY DEFINITION

5 OPPORTUNITY EXPONENTIAL EXPLOSION UNINTENDED CONSEQUENCES Exponential Tech Explosion Strategic Area of Focus How Do We Close the Gap? TIME Yet We Manage Tech Linearly

6 EMERGING TECHNOLOGY SOURCES OF DISRUPTION Computational Power Agribusiness Power Advanced Material Science High Resolution Radar & 5G Network Technologies Predictive Analytics & AI Predictive Analytics & AI Contextual Intelligence Radically New Digital Manufacturing Path to Innovation

7 OPPORTUNITY PROACTIVE VS. REACTIVE Disruptive technology creates enormous economic advantage for those who take advantage of the disruption Leadership and Board-Level support Complementary outside awareness and expertise Strategic focus on right technology with right business model 70 companies who made the transition small to large

8 COMPANIES MADE THE TRANSITION SOME EXAMPLES COMPANY EXAMPLE LEADERSHIP Air Bus Group Electric airplane Printing cables BMW I series $4B investment New CTO Board level Outside In New visionary Board level Outside In Idaho Forest Group Digital timber Change in CEO Adobe Subscription model Change in leadership Merrill and Ring Digital imaging President Apple Move to entertainment Change in CEO & Board Microsoft Move to Cloud Change in CEO

9 TECHNOLOGY S EXPONENTIAL ENGINE SECRET SAUCE QUANTUM PLATFORM 1. Ubiquitous Computing Power 2. Unlimited Free Storage 3. Software Algorithms 4. Imaging and Sensors 5. Continuous Network Connection Rocket engine under the hood enabling Rule of 10

10 TRADITIONAL MODEL RESOURCES PRODUCTS LOOKING FOR MARKETS LEGACY HIGH COST MISSED OPPORTUNITY INSIDE-OUT ` RISK AVERSE PROCESS

11 RESOURCES EXPERTISE LOOKING FOR A SOLUTION INSIDE- OUTSIDE-IN OUT OUTSIDE LOWER COST REDUCTION TECH RISK RISK ABATEMENT PROCESS

12 AGRIBUSINESS ENERGY

13 RADICAL NEW FARMING MODEL END OF FARMING AS WE KNOW IT? Case One-Point-One Robotic-Enabled Aeroponic Farming Fully-automated cultivation with LED lighting and no seasons or disease Direct farm to table no transportation or spoilage urban center focus Decimates labor costs robotic harvesting Minimized fertilizer with 1/10 the water usage Highest quality product with custom nutrient design 10,000 sq. ft. 55 acres - 64x increase profit/sq. ft. with massive energy consumption

14 ONE-POINT-ONE

15 RURAL POWER A NEW SOURCE OF REVENUE

16 SMART SOLAR TRIALS CHANGE IN HOW WE THINK ABOUT ENERGY Energy Shandong Pavenergy and Wattway commercializing technology Cost of solar fallen by 90% in just ten years $11 square foot cost, $15/year per square meter in electricity 1 mile solar road powers 5,000-7,000 homes 2000 miles planned in China 600 miles next five years in Europe power for 6 million people Charge cars wirelessly while digitally assisting automated vehicles Trucking and transportation package tracking

17 STANFORD STRETCHABLE MATERIALS Wafer of thousands of sensors Integrated network and stretchable connectors Able to break apart and stretch the materials Embed in ANY material Local computing power Tremendous reduction in cost

18 STANFORD STRUCTURE AND COMPOSITES LAB Energy Sensors and network integrated into battery wafers Sensors marshal efficiency of battery Reduction in weight for same amount of energy generation Continuous monitoring of performance Multiple of power to weight versus traditional approach

19 META MATERIALS LEVERAGING PHYSICS

20 RADIATIVE COOLING DROPPED 8º C Reinvention of cooling Super cheap and effective Access to the atmosphere 8-11º C Drop Multiple formats from tarp, insulation for windows, to paint CO2 credits from energy savings in buildings

21 PRINTED ELECTRONICS & META- MATERIALS Print sensors into every material converging with 3D Printing Cost of sensors wireless connection coming down at dramatic rate Antennas integrated into sensor arrays Sensors now able to harvest lowvoltage power Revolutionize IoT becoming always connected

22 RURAL TELECOM & COMMUNICATIONS

23 META-MATERIAL ENABLED RADAR Lower cost higher resolution radar to replace or augment LIDAR AI engine leads to true 3D vision, object discrimination, and predictive analytics Fire pencil beams at objects up to 1000 feet Carry 5G signal on pencil beams into buildings No cell towers or other infrastructure investment Disruption of traditional business models A new way to get signal to people inexpensively enabling private operators

24 EVERYTHING & EVERYONE CONNECTED COMMUNICATIONS NOW MEANS DATA ACQUISITION Network Technologies Embedded wireless technology unifies every element of the value chain Massive proliferation of sensors Data from everywhere and everything Collection now includes devices, location, people, and processes like manufacturing Model moves to data usage versus ownership

25 MORE THEN AN ELECTRIC CAR CONTINUOUS CONNECTION Case Continuous monitoring Fully connected Collision data Distraction detection Manufacturing feedback

26 BOARD LEVEL LEADERSHIP ORGANIZATION RESILIENCY & ADAPTABILITY Path to Innovation Awareness Board level director from the tech sector with network Assessment disruptive Dedicated CTO expert in disruptive technology Organization assessment using methods like Red Teaming Rapid Response Team reporting to CEO comprised of technical expertise and industry gurus with quarterly Board review process Outside-In Approach endorsement of this approach Buy vs. Build endorse use third party companies to prototype like SRI Fast Fail - small investments with unfair advantages counting cards model Identify a Canary that is NOT you

27 COST-EFFECTIVE APPROACH INVESTING IN TECHNOLOGY & INNOVATION Cost-Effective Framework SMALL MEDIUM LARGE ASSOCIATION PARTNER OUTSIDE IN Chamber Tech Group Contracted CTO CTO Vanity Fair Tech Conference Outside In Outside In TDP Tool Partner Contracted Team Stanford EMBARK Program Angle Investor Stanford Disruptive Tech Program Silicon Valley Today Fast Fail Prototype to Roadmap

28 SUMMARY Path to Innovation Culture trumps innovation EVERY time Cost of digital innovation in startup world is plummeting below company s cost to innovate Technology expertise is critical to understanding future direction Networking skills critical to acquire technology expertise Software makes it possible to build anything that can be imagined Globalization driving knowledge everywhere Best & brightest foreign engineers coming to SV and to companies near you (3M) Engineering knowledge half life now 5 years

29 REDUCING THE RISK OF TECHNOLOGY INVESTMENT AND CULTURAL LEGACY Path to Innovation AWARENESS ENGAGE RIGHT PROBLEM EXPERTISE TRIAL EXPLORE INVEST

30 CONTACT INFORMATION