Disruptive technologies are constantly changing our lives and the way society functions. It used to take decades for new technologies to be adopted nationwide or worldwide but now it is taking only 5-7 years for full adoption, according to an analysis by the McKinsey Global Institute (MGI).
Dr. Jacques Bughin of MGI recently gave a presentation on disruptive technologies at INSEAD. He discussed the top new technologies that are or will soon be disrupting the economy (read the MGI report here). They include:
- Advanced materials
- Advanced robotics
- Advanced oil and gas exploration and recovery
- Energy storage
- Next generation genomics
- 3D printing
- Mobile internet
- Automation of work
- Internet of things
- Cloud technology
- Autonomous vehicles
- Renewable energy
Of course, I would like to focus on the disruption occurring in energy. There is clearly a natural gas exploration boom occurring, especially in the United States, that is disrupting the electricity sector with very low prices. This has caused numerous nuclear power plants to close or consider closing because of the high relative cost. In addition, subsidies for renewable energy are also making it less expensive. But is the government choosing which technologies to subsidize and which not, is it really economically disruptive?
When energy storage, both on the small and large scale, is perfected, it will surely be disruptive to the energy sector. More efficient small batteries will revolutionize personal device usage. Medium-sized batteries for are becoming more and more utilized in vehicles but still have limitations. Large scale energy storage technology for electricity will allow wind and solar energy to be more viable. More efficient electricity transition would also disrupt the energy sector.
In my operations class at INSEAD, Prof. Karan Girotra argues that it is not new technologies but innovative business models that disrupt the economy. For example, the innovation of the iPhone would have been nothing without the efficient production capacity and marketing of Apple. Keeping this in mind, I think that advanced nuclear technology has the potential to disrupt the energy sector but needs better business models to bring it to life. Small modular reactors can be a game changer but must be efficiently manufactured, shipped, and installed in order to capitalize on the large scale. We have the nuclear technology to disrupt the energy sector but now we need proper implementation.