In a world where “aliens, magicians and barbarians” are shaking up the world at large with their tech and tech change is happening at an exponential rate, organisations have to ensure digital literacy at every level if they are to transform successfully.
Rohit Talwar, futurist and CEO of Fast Future (pictured above), speaking at the Sabre Travel Exchange last week in Singapore, said that US$800 billion are spent on IT projects that don’t deliver “and half of that is down to digital literacy”.
That means leaders who don’t understand what tech works and are not listening to others, managers in the front line who don’t understand the tech and what can be done, developers who understand the tech but don’t know how to integrate – “these three components must work together so that technology can sing and free up people to do exceptional things for customers, beyond what they can do today”.
He said organisations must “future proof” themselves by addressing three horizons. One, focusing on customer and employee and addressing operational excellence; two, enhancing digital capability in the search for growth and three, working on concept/business model innovation to understand future drivers.
“Organisations must build digital literacy to manage in a new world and how to create solutions in a changing world” especially in Asia, the global travel growth leader.
Talwar said there was a collision between two planets – the physical world with its airlines and hotels which use tech to do what they do and the digital world which does not see passengers or guests but data. “We have to be digital in thinking and application.”
Companies in the physical world spend about 3-10% of revenues on R&D and are competing with companies who are spending 10-15% of revenues on R&D, he said.
“They are creating tech for customers that are not yet buying products and services that do not exist in a form that doesn’t exist or a price that doesn’t exist.
“These companies speak in a different language. The aliens, the 1% of companies, they are reshaping our world. The magicians get paid when the price drops and every wave of innovation brings in barbarians – people like Airbnb who are willing to fight everyone.”
Talwar spoke of the fourth Industrial Revolution “which is bringing smart and AI to everything” and the Chinese government, he said, was spending US$492 billion in AI R&D.
“Everyone’s trying to understand the concept (of AI), most haven’t experienced it and a lot of us think we won’t see it in our lifetime.”
From smart shoes to next gen spa treatments (where you get your genetic profile before you arrive), we are entering a new world, he said, as he rattled off examples of new tech-driven businesses.
Deep personalisation is happening – at Schipol, you can order food from Deliveroo to anywhere at the airport and you can even personalise the time you go through security.
“Imagine that, like having a doctor’s appointment,” he said.
Meantime, get digitally literate before you get carried away by these flights of fancy.