The Dawn of a New Age of Innovation
Merging Physical and Digital Scales for Success
In the words of Mohamed Kande, global chairman at PwC, “The third industrial revolution prioritized physical scale, the fourth focused on digital scale, and now, in the age of intelligence, success lies in merging physical and digital scales.” This convergence is seen as a defining factor for the next major shift in industry and innovation.
In an exclusive interview with ET’s Vinod Mahanta, Mohamed Kande and Sanjeev Krishan, chairman of PwC India, discussed the implications of this new era driven by artificial intelligence (AI) and the transformative potential for India.
Why a New Age of Innovation is Upon Us
Kande posits that over the last two decades, the ability to create new value has fundamentally reshaped various industries. “Many of today’s most valuable companies didn’t exist when 3G networks were launched,” he notes. The significant capital investment and technological innovation during that time laid the groundwork for growth in adjacent sectors.
Industries such as retail and media effectively utilized emerging networks to facilitate online sales and content delivery without incurring additional costs for telecom infrastructure. This transformation can be paralleled to today’s rapid advancements driven by massive investments in AI and energy, which Kande believes will yield far-reaching effects across multiple sectors.
Challenges for CEOs
This new era does not come without challenges, particularly for CEOs. Kande asserts that successful leadership is being tested and requires a fresh approach—what previously worked may not suffice anymore. The need to merge traditional physical methods and contemporary digital strategies is now imperative for sustained success.
Reinventing Business Models
When asked if existing companies are reinventing their business models amid technological disruptions, Kande pointed out that both incumbent firms and startups are actively rethinking their approaches. For many incumbents, this isn’t merely about reinvention but rather creating entirely new business models.
He refers to the rise of social media in the mid-2000s as an illustrative case; it wasn’t an evolution but rather a new paradigm. People couldn’t even conceptualize social media until it became a reality.
The Role of Investments in Innovation
Illustrating a consistent historical trend, Kande emphasizes that significant capital investments traditionally lead to innovation. Whether in previous industrial revolutions or today, increased investment often precipitates breakthroughs. This pattern suggests that we can expect radical shifts from today’s substantial investments in technology.
Is India Positioning Itself for Success?
Turning the conversation towards India, Sanjeev Krishan confidently stated, “Absolutely!” He highlighted India’s vast pool of skilled labor and talent, which positions the country uniquely to cater to the reinvention needs of both local and global businesses.
Krishan also shared insights about the emergence of several innovative startups across various tech domains in India. He noted the spirit of entrepreneurship and the need for continuous upskilling to ensure that this talent pool retains its relevance in a fast-evolving landscape.
A Transformative Phase Ahead
As the age of intelligence unfolds, both Kande and Krishan are optimistic about the future. The ongoing dialogue between innovation, technology, and business requires both legacy firms and newcomers to adapt and evolve.
In conclusion, this stage of industrial evolution will challenge traditional norms, encouraging a blend of physical and digital scales that can lead to unprecedented growth and opportunity across sectors.
Conclusion
The insights shared by industry leaders highlight a pivotal moment for innovation and adaptation within the economy. With AI, machine learning, and quantum computing advancing rapidly, the convergence of technology with traditional industries holds significant promise, particularly for a country like India.
Frequently Asked Questions
1. What is the significance of merging physical and digital scales in this new age of innovation?
Merging physical and digital scales allows organizations to capitalize on both traditional and contemporary methods, fostering growth and adaptability in an evolving market landscape.
2. How have previous industrial revolutions influenced today’s innovations?
Previous industrial revolutions established foundational technologies and value creation models, which paved the way for today’s rapid advancements in AI and digital transformation.
3. What role do investments play in fostering innovation?
Investments provide the necessary resources for research and development, driving breakthroughs and advancing technologies that can disrupt existing industries.
4. Why is India considered well-positioned for this technological transformation?
India boasts a vast, skilled labor force and a growing number of startups focused on various technological challenges, positioning the country as a key player in global innovation.
5. What challenges do CEOs face in this new landscape?
CEOs are challenged to navigate the complexities of merging physical and digital strategies while fostering a culture of innovation and adaptability within their organizations.
