Bandwidth is exploding, as is access to bandwidth, with the developing world catching up fast(1).
Processing speed continues to double every two to three years(2).
The cost of computer memory and storage continues to go down exponentially(3)
As a consequence, the amount of data generated in downstream value chains is growing exponentially, following LOAR: Kurzweil’s law of accelerating returns(4)
- We operate in turbulent change: advances in technology are game-changing.
- In the upstream value chain, this is already embraced: changeovers are measured in minutes, production runs are counted in units. As a consequence, Minimum Efficient Scale will continue to go down.
- Technological turbulence will reduce scale benefits in the upstream value chain – at the same time, it will increase scope benefits downstream:
- Those operators who increase their Maximum Efficient Scope© will be able to create order, where others only see chaos and call it complexity.
- Deconstructing value chain complexity to construct executional simplicity is a proven source of competitive advantage for our clients.
In complex markets, intuition and seniority used to rule, and top down KPI’s would measure performance ex post. By deconstructing and reconstructing disparate big data sets bottom up into relevant Key Performance Drivers’, operators are enabled to access and act on insights ex ante, instead of beating the data until it submits. Success is determined by superior execution, tracked in real time: facts not opinions.