In early May, several of our team members traveled to the Automate show in Detroit, Mich., looking for opportunities to further advance manufacturing technologies within our Correct Craft companies. In early June, some of us traveled to Silicon Valley to learn more about technological developments that will soon impact all areas of our business. My takeaway from both trips? Brace yourself; change is coming.
Computational power is increasing exponentially, and it is driving all kinds of technological change. Today’s cellphones have the computational power of a $50 million supercomputer from the late 1990s. However, today’s cellphones will seem as outdated as an abacus when compared with what we will be using a decade from now. Increasing computational power is driving new technologies, which are converging, resulting in new business models we can’t even imagine.
Do not underestimate the magnitude of the forthcoming changes; they will significantly impact your organization. And the changes are coming faster than you might think. Blockbuster, Kodak and other companies did not go bankrupt because their leaders didn’t see changes coming; they went bankrupt because their leaders did not see how fast changes were coming. Many intelligent leaders have been caught unready for change, and their companies paid a high price. Don’t let your organization suffer the same fate.
Leaders face a critical choice: Prepare for the upcoming changes or wait and react. If you decide to wait, the best case is that your organization will be dragged along with the changes. However, the most likely outcome of waiting is that your organization will be put out of business. Waiting is not a viable strategy.
Those attending Automate realized that manufacturing technology is advancing quickly while getting much less expensive. Our team came home from Detroit with 12 projects that could materially impact our operations. Robotics we considered just three years ago have become much more powerful and cheaper. Autonomous material movement will be in every manufacturing plant before long, safely and efficiently moving materials around our facilities. And while we are already using 3D printing at multiple Correct Craft facilities, the advancements in this technology are also impressive. Our conclusion after Automate was that technologies previously affordable only for high-unit production facilities are becoming affordable for everyone.
Mixed reality received a big boost recently with the introduction of the Apple Vision Pro headset. It’s expensive, but remember that the Vision Pro will never be more rudimentary or as costly as it is today. In a few years, we will look back on this new product like we now look at the mobile phones we used to carry around in a big bag. Before long, all of us will be using virtual reality in our marketing and augmented reality in our production processes.
Many people worry about artificial intelligence disrupting our lives without realizing AI is already here. Face identification used by your phone and apps, spam filters, digital assistants, smart home devices and recommendations you get from various sources — social media, Netflix, Amazon — are all AI.
Of course, these are rudimentary examples of what is coming, but there’s no doubt that AI is already here and will soon significantly impact almost everything you do. The newest AI headline is ChatGPT, a version of AI that some have said may put Google out of business. If Google is at risk, don’t think for a second that your organization is not at risk, too.
The portmanteau “fintech” describes the technological revolution impacting financial services. AI, blockchain, cloud computing, big data and cryptocurrency are technologies that will transform the financial industry. We need to understand these technologies because they will impact our organizations.
Almost all new cars have some form of autonomous technology, and they are collecting data that is being used to continuously improve autonomous technology. Boats face unique challenges adopting autonomous technology because we don’t have a road system to serve as a grid, nor can we collect the billions of miles of data car companies collect. Because of this, autonomous boating will lag behind cars a fair bit, but I have no doubt that it is coming.
Sensors, or the Internet of Things, are already prevalent in our industry and will continue to proliferate. Our telematics company, Osmosis, has been offering telematics to boat companies for a few years, and the results have been extraordinary. Not only can we collect information that makes our boats better, but in many instances, we can service customers without bothering them or the dealer. The benefits of these telematic systems are amazing.
Electrification is taking over the auto industry but is likely to be less quickly adopted in marine because boats require much more battery power to push them through water. It will probably take a significant battery breakthrough before electrification proliferates through the boating industry. However, our telematics data indicates that nearly 90% of boat uses fall into the range of electric-boat capability. We have sold many electric boats to customers who love performance and convenience, and I have one at my house. We are also studying hydrogen and other sustainable fuels that are likely to have an impact in the years ahead.
The real game-changers are developing more slowly but are clearly on the way: quantum computing and nanotechnology. Quantum computing, which is beyond the scope of this article, is exponentially more powerful than today’s digital computers. Quantum computing will make obsolete every computer and security system in use today. Nanotechnology isn’t just working with small stuff; it is modifying atoms to change their very nature and produce new materials. Imagine going to the beach and modifying the atoms in the sand to generate materials to produce a car — this technology will be a global disrupter.
So now that we understand some of the coming changes, what should we do? First, every leader should engage. Don’t wait until changes are thrust upon you; keep aware of developments and think about what your organization should be doing.
Second, see change as an opportunity. Most leaders will not stay aware of coming developments or, if they do, will adjust too late. Staying aware of upcoming changes and preparing your organization to benefit from them will be a major competitive differentiator.
Not liking the upcoming changes or lacking the desire to focus on them matters. The changes are coming, and great leaders will be scanning the horizon to determine how to prepare their organizations for the future.
Bill Yeargin is president and CEO of Correct Craft and has authored five books, including the bestseller Education of a CEO.
This article was originally published in the August 2023 issue.
