A Fresh Take at Solving Tomorrow’s Challenges Through Emerging Tech

In my last article, I shared some perspectives on how emerging tech is opening vast new avenues for companies to solve some of our biggest challenges ahead using innovative and emerging technologies. With this, it’s not only about creating a future-proof business model for the long-term, but unlocking entirely new market opportunities and perhaps even reshaping entire industries for the bold pioneers that take a leap forward. 

In our ongoing conversations with top leaders from across various industries, they often grapple with how to strike the right balance of keeping the business running strong today, while identifying where to invest in innovations for the longer term. While no easy answer exists, we try to take a horizon-based approach and forecast where and how emerging tech can play a transformative role in creating the future – and be a leading enabler for their business strategy ahead. 

Sustainability and the circular economy agenda

The transformation towards a circular economy (CE) has increasingly become the strategic priority for organisations across the globe. The CE operates on the principles of regeneration, keeping materials in use while reducing waste and reducing pollution. The CE thus replaces the ‘end-of-life’ approach with the principles of reducing, reusing, recycling, and recovering. 

The key to CE transformation is digital transformation, and real-time data, system integration and deep insights from across complex supply chain networks are crucial elements of this. Emerging technologies will be the key enablement vehicles to achieving a circular economy agenda. 

What is the real opportunity here? 

The application of diverse digital technologies such as AI, cloud and IoT can disrupt traditional, linear business models because they enable mass personalisation, allowing firms to select sustainable inputs to match customers’ requirements. These technologies also support the extension of product life by developing predictive maintenance requirements and thereby further enhancing the customer experience and reducing waste on the consumer end. 

Firms that are moving towards digitalisation can enhance overall opportunities in production, processing, logistics and waste recovery through improved visibility across all supply chain stages. The yet unmet opportunity in this transition has the potential to allow local and global economies and enterprise-level business models to be more productive and sustainable – and thus open vast new market opportunities for the leaders in this space. 

There are many examples of successful use of AI in the energy sector, including using deep mind to predict power generation from wind. In logistics, where a significant portion of global greenhouse gas emissions comes from freight transportation, AI-enabled platforms can chart efficient transport routes. By using sensors to track occupancy, employers can understand employee working styles to accurately measure and reallocate space capacity, which can shrink an office’s carbon footprint by 30%.

A product future powered by servitisation business models

Servitisation, or digitally-driven service management, involves the creation of new digital services – enabled by cutting-edge analytics, embedded sensors, machine-to-machine communication, and related forms of advanced technology that are bundled with products. These new manufacturing models, which require a relationship-based sales approach, have helped firms produce entirely new revenue streams, slash costs, lift customer relationships to new levels and carve out sharp advantages over competitors. In some cases, servitisation programmes have evolved into entirely new companies.

The concept of servitisation – the coupling of service offerings with products – emerged decades ago. Rolls-Royce’s pioneering “power by the hour” approach to supporting business jet engines in the 1960s marks an early servitisation milestone. What is new, however, is how manufacturers of all types can now leverage digital technology advancements to deploy servitisation models to drive significant growth and completely disrupt how they go to market.

Beyond this are limitless, door-opening possibilities of entirely new servitisation-based business models that can take flight from the creative use of emerging tech. Cloud will play a key role in unlocking data and aligning organisational systems, but core business processes and ways of working will also require a fundamental rethink. As a result, new market opportunities will be presented to the bold ones that lead industries ahead in this space. 

Solving our energy future

We are all feeling the pinch with high energy costs, inflation, and other supply/demand challenges that the energy sector is experiencing. With millions of new and smarter devices and decentralised generation assets connected to our distribution and transmission grids, as well as more demanding and tech savvy customers, energy companies are reviewing their operating models and technology to stay competitive and reliable. And more importantly, many are planning for a new future ahead to future-proof their businesses.

As an example, transmission and distribution grids are traditionally provided by large sources of energy to a large portfolio of customers, no matter their distance. In a distributed generation system, smaller producers are providing energy to smaller customers, significantly increasing the supply and demand efficiency. With renewables and cogeneration added to the mix, this allows utilities to optimise their supply and be ready for emergency scenarios, attract new customers and focus on their net zero journey. 

Highly “intelligent” cloud-based platforms, services and solutions are becoming available across the value chain to help accelerate these journeys – driven by data and insights. Many of these platforms offer companies a flexible and simplified deployment, allowing significant cost reductions, and creating vast new business opportunities.

The overarching take-away is that significant, market-altering innovations are within grasp across the energy and utilities space, and these will usher in new market entrants and players that will play a big role ahead in a sustainable and affordable energy future for businesses and consumers alike. Emerging tech, from AI, to the cloud to blockchain will help us solve many of these pressing challenges.