Emerging technologies and their impact on business

We live in an age of seemingly ceaseless digital transformation. Business leaders must adapt to rapid, often disruptive, technological shifts or risk losing market share, relevance and commercial momentum.

The most significant of these shifts might be the growing role of AI in business, but that is just one example of several emerging technologies that have tremendous impact on business strategy and customer experience. This blog looks at some key examples of those emerging technologies, such as AI and blockchain, and considers how they are changing the modern business world.

What is emerging technology and why does it matter?

In this context, emerging technology refers to tools and techniques capable of transforming or disrupting traditional business strategies and practices.¹ Emerging technology is the automated process that reduces lead times or increases efficiency. Alternatively, we can identify emerging technologies in the data sciences, where predictive analytics is driving better forecasting and price optimization.

Emerging technologies are having a profound impact on business competitiveness and long-term sustainability, as some of the examples below demonstrate.

Emerging technologies examples driving change

Emerging technologies in business include AI, blockchain and the network of objects known as the Internet of Things (IoT). We see these technologies deployed in a multitude of innovations, sometimes reshaping industries. Indeed, the World Economic Forum is encouraging business leaders to think in terms of the "3C Framework" — Combination, Convergence, and Compounding — as a way to harness emerging technologies and develop truly transformative solutions.²

We can see concepts like this in action in products such as the smart power grid, which combines the capabilities of AI and IoT to create a more efficient and resilient system for storing and distributing electricity.³

For business leaders, understanding the technological trends that affect industry and commerce is as important as understanding their supply chain or accounting principles. The impact of emerging technologies on business is one of the most significant drivers of strategy in today's world.

The role of AI in business

Artificial Intelligence (AI) has become ubiquitous in business. At the individual level, many employees have become accustomed to using AI interfaces to draft emails or help with research. But that barely scratches the surface of the way AI has powered digital transformation in business.

AI is used to power 24/7 customer service agents, automate expense report processing and monitor production lines.⁴ AI is also behind some of the most widely used emerging technologies examples in the modern world: Amazon and Netflix both use AI to provide personalized recommendations to customers based on past preferences and habits.⁵

Blockchain and IoT in business

Blockchain is a decentralized digital ledger that offers a high level of trust and security. It's the technology that powers Bitcoin and several other cryptocurrencies^.6 It also has applications in other areas, such as supply chain management — Walmart is one of the more high-profile users of a blockchain-based inventory tracking system.⁷

While blockchain in business is still primarily associated with financial applications such as cryptocurrency, it has tremendous potential utility in areas such as food safety and guarding against counterfeit medications.⁸ In essence, it's a very useful technology for record-keeping and information verification.

Another emerging technology on both the consumer and operational side of business is the Internet of Things (IoT). A recent Forbes report cited research estimating the number of global IoT connections would more than double in less than a decade (from 10.3 billion in 2018 to 25 billion in 2025).⁹

IoT is used in countless applications around the world, ranging from automated manufacturing to self-driving vehicles, home thermostats and citywide traffic management systems.¹⁰

A recent McKinsey report estimated the total value of IoT in business could exceed $12 trillion by 2030¹¹ — about four times the estimated value of the global pharmaceutical industry in roughly the same period.¹²

Achieving digital transformation in business

Successfully integrating emerging technologies in business is one of the most important challenges for today's leaders to understand. Change management in organizations is a skill that can be learned and is one of the concepts taught in a reputable MBA program.

Broadly, the best advice is generally to be patient and methodical. Pilot programs built around clear, measurable outcomes deliver scalable outcomes.¹³ New techniques and tools can be shared over time, without rushed implementations or unnecessary disruption to established workflows. Test your technology in a controlled environment and use the results to demonstrate the value of adopting new techniques to a broader group.

When new technological trends begin to affect your industry, it can be tempting to move quickly to adopt them, fearing you'll fall behind the competition. But a methodical approach will help to deliver more productive and lasting change.

Some consultants recommend an "exploration" model for enterprises that wish to remain innovative. The basic idea is that a successful organization can afford to maintain small teams working on non-core business ideas or future projects without radically changing the company's entire business model. If one of those exploration ideas is successful, it can be deployed at a larger scale.¹³

Perhaps the best modern example of this approach is the origin story of Amazon Web Services (AWS). AWS was essentially born out of Amazon's struggle to develop what was rapidly becoming the world's biggest online marketplace. The company experimented internally with the idea of developing its own site infrastructure and storage, a system it could fully control that would make it easier for internal developers to collaborate and expand Amazon's online shopping services. AWS is now one of the most significant cloud computing services in the world, a massive profit center for Amazon.¹⁴

Lead the Future of Innovation with a KU MBA

Mastering emerging technologies empowers business leaders to transform business strategy and elevate customer experiences.

The AACSB-accredited online MBA program from the University of Kansas School of Business is designed to develop the next generation of innovative business leaders. Core courses in subjects such as Business Analytics and Strategic Management combine a tradition of academic excellence with real-world applications.

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To discuss how a KU MBA can help advance your career, schedule a call with an admissions outreach advisor today.