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Rotman ManagementRotman Management

Rotman Management Winter 2019

Published in January, May and September by the Rotman School of Management at the University of Toronto, Rotman Management explores themes of interest to leaders, innovators and entrepreneurs. Each issue features thought-provoking insights and problem-solving tools from leading global researchers and management practitioners. The magazine reflects Rotman’s role as a catalyst for transformative thinking that creates value for business and society.

País:
Canada
Idioma:
English
Editor:
Rotman School of Management, University of Toronto
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access_time3 min.
the disruptive issue ii

WHILE IT MIGHT SEEM IMPOSSIBLE, consider this: Most experts agree that the speed of change that we are experiencing today is actually the slowest it will be in our lifetime. Obviously, organizations of all shapes and sizes are feeling the effects. And yet, in a recent EY study, only 50 per cent of global CEOs said they feel prepared to take advantage of disruptive change. The good news is that disruption is not some mysterious, random or unpredictable event. By taking steps to understand how it is currently affecting an industry — and how it might affect it in the future — companies can avoid the fates of Kodak, Blockbuster and so many others. Our first issue on disruptive innovation was published in fall 2016, and not surprisingly, much has changed since…

access_time15 min.
exploring the impact of artificial intelligence: prediction vs. judgment

Recent progress in machine learning has significantly advanced the field of AI. Please describe the current environment and where you see it heading. In the past decade, artificial intelligence has advanced markedly. With advances in machine learning — particularly ‘deep learning’ and ‘reinforcement learning’ — AI has conquered image recognition, language translation and games such as Go. Of course, this raises the usual questions with regard to the impact of such technologies on human productivity. People want to know, will AI mostly substitute or complement humans in the workforce? In a recent paper, my colleagues and I present a simple model to address precisely what new advances in AI have generated in a technological sense, and we apply it to task production. In so doing, we are able to provide some insight…

access_time12 min.
thought leader interview: rita mcgrath

Sustainable competitive advantage sounds like a good thing to most people—but you believe companies need to stop basing their strategies on it and embrace a new strategic logic. Please explain. The high degree of change in today’s environment means that organizations have to adapt their strategy to new situations much more frequently than ever before. Historically, the preoccupation in strategy has been with seeking a long-term competitive advantage that is not easily duplicable by others in an industry, but we must all accept that this is an age of transient advantage. Previously, the sequencing has been: Identify a unique position in an attractive industry, throw up entry barriers like crazy, and then devote the rest of your efforts towards exploiting that position. In more and more areas of the economy, this…

access_time13 min.
behind every breakthrough is a better question

FOR THE PAST DECADE, my focus as a scholar and consultant has been on corporate innovation. In particular, I’ve been studying the effects of asking new questions in start-ups and established organizations. Twenty-five years ago, my very first conversation with Clayton Christensen — the Harvard professor who gained fame for his theory of disruptive innovation—focused on what causes people to ask the right questions. Our collaborations since—which include co-authoring The Innovator’s DNA — have only sharpened my appreciation for the critical role that questions play in breakthroughs. If you trace the origin of any creative breakthrough, it is possible to find the point where someone changed the question. Questions can do amazing things: Knock down the walls that have been constraining a problem-solver’s thinking; remove one or more of the ‘givens’…

access_time11 min.
the economics of autonomous vehicles

AUTONOMOUS VEHICLES (AVs) are widely expected to radically change mobility patterns and improve the efficiency of our transportation systems. The highest level of automation that is currently being tested allows for vehicles to travel without a human on board. This concept opens up abundant opportunities in the transportation industry, but it also has implications for road capacity — both positive and negative. As a result of the predicted benefits of AVs — which include smoother traffic and improved safety — more than 50 cities worldwide have committed to deploying them in the near future, and another 27 are preparing for automation by undertaking surveys of regulatory, planning and governance issues raised by these vehicles. Not surprisingly, the private sector is actively pursuing vehicle automation. By now, most car manufacturers have established an…

access_time4 min.
automotive’s new value-creating engine

In recent years, the automotive industry has been intensely discussing four disruptive and mutually reinforcing trends: autonomous driving, connectivity, electrification and shared mobility. These ‘ACES’ trends are expected to fuel growth within the market for mobility, change the rules of the sector, and lead to a shift from traditional to disruptive technologies and innovative business models. Artificial intelligence is a key technology for all four ACES trends. Autonomous driving, for example, relies inherently on AI because it is the only technology that enables the reliable, real-time recognition of objects around the vehicle. For the other three trends, AI creates numerous opportunities to reduce costs, improve operations and generate new revenue streams. For shared mobility services, AI can, for example, help to optimize pricing by predicting and matching supply and demand. It…

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