Investors have been scrambling to identify industries about to feel the brunt of all those dynamic forces that have gained momentum since the emergence of the Internet in the late 1990s.
A useful framework for this analysis involves understanding how innovation has driven disruption in the past, why it can take time to gather momentum, and how to assess the durability of change at different levels of a society’s infrastructure. With this background, it becomes easier to identify the most important building blocks for a successful technology business while also understanding the elements that will affect the rate of change. These may proceed very slowly for some time before a rapid acceleration.
The current pace of technological disruption raises thorny questions about the potential interference from artificial intelligence and the Internet of Things, as well as the consequences of consumer behavior and government regulation. This analytical roadmap should make it easier to explore initial answers.