Just here.
So thanks a lot for being able to speak to you. First of all, I know nearly nothing about identity. Yeah. You all know much about identity as I've chosen, not to talk about identity here, but rather I would like to talk about digital information. I'd like to talk about disruption and then you can find out if you work in the right company, if you work in the right industry and you can give the answer to yourself, all I wanna do here is to give you some hints, right? What mistakes other companies have done in the past.
And then you can find out if your company in your industry is probably doing the same. Let me start with a common misunderstanding. If at least in Germany, people talk about blockchain. Most of them talk about Bitcoin and energy consumption of Bitcoin, which is indeed weird. We have countries like Iceland that push more energy into Bitcoin mining than in the energy need of the country. This is weird, but the central message is here. Blockchain is much, much more, much, much more than Bitcoin.
And the interesting point you probably wanna make is that the energy consumption thing is a question of Bitcoin and the Bitcoin blockchain. It is not a question of the other types of blockchain, which, which you can choose depending on the problem you really wanna solve. And that is one message I want to talk about.
Now, all people that thought blockchain would be different than other, probably disruptive technology that they will jump here from the top and increase always are not right. Right. Blockchain is on the way down in the Gartner hype cycle. And the only question is if it will be just one more disruptive technology we talk about now, right? Or if it will have this normal development here denoted with number two, now let's go some hundred and 18 years back. Some of you might see that this is fifth avenue.
And as you probably see here, if you sit in the front, you find 99 horse carriages and one motor car.
At this time, people were afraid about crisis. They feared the menu crisis. And so the fear was that London in New York, in all the harbors in the world, traffic will not be possible anymore due to manure.
Now, when our bus at the time had the forest ride on a motor carriage, he went down and said, this is a strange things. This, the car has no future. I'd rather put my money on the horse.
Now, if you look at the same situation in fifth avenue in New York, some 13 years later, you will find out that this forecast was wrong. We have still a horse carriage, but we have 99 motor cars godly LER who was here in Europe. One of the pioneers, he forecasted the number of cars on earth are limited to 1 million simply due to the leg of available. Cha you probably know Henry Ford, who said, if I asked my customers what they wanted, they would have said faster horses, right?
So both was wrong. This is a picture, I guess, most of you know, the Pope election, 2005, right?
And then there was the 9th of January, 2007. When Steve drops was standing on a place like here. And he said, well, I hear one more thing. And Steve Palmer, there's something wrong with it. Presenter he left when he saw this telephone without a number punching possibilities and so on, he said, there's no chain that this will ever be a success. He was wrong. Right. As you see here, the pop election from the year 2013, the world had changed. Not only the world had changed with the Pope elections. The world also has changed in the way our new generation is acting.
For instance, if you have, if you ask people that love cats, if in case of a fire of their home, they would rather save their smartphone or the cat 65% say they would rather save the smartphone. So bad luck for the cat, right? If you ask people, if they wanna spend the next weekend, rather without a smartphone or without sex, 60% of the young people say rather without sex with women, it's 70%, by the way, right now, if you look at the way people behave, the nice picture I have found is that one, right?
Yeah. You see that? We have a kind of regression to our predecessors.
Now, a interesting thing back to the cars, would you ever have imagined that a car company some 10 years ago, right? Would try to sell cars with the argument, make your it department jealous.
Now, if you think about that a couple of years ahead, right? When we talk about autonomous driving, it's not long ago that the CEO of Porsche Matthias, Milan, he stated that this is just a hype, not justified by anything. We talked with his people in fin house and they told us, well, even if O driving comes right, the last car that will ever have a steering will, will be a Porsche that might be possible, but it's not as very strong argument. If you think the people that were in the horse business or in the horse carriers business, right. To be the last one is not really a good thing.
Then you observe the last years when Uber and apple and all the other ones started to invest in auto, autonomous striving with all the things that happened.
And two years later, Martin Miller was now the CEO of VW. Two years later, he learned something, not with a diesel thing, right? But he learned something here that cars like the sea might be a normal part of the street scene. As you have probably realized, he's not the CEO anymore. That means he hasn't learned fast enough and he has wrong judgements. So this is the situation.
And now you can ask yourself, what is your situation in your business, in your industry, right? Will you also be a part of the problem, the advantages sooner or later, or will you be one of the winners of this, this, this, this transformation with our frown of a group, we performed some hundred 20 industry projects in the last six years. We at nowadays have about 20 of them, also 20 public funded projects. So our experience from all of these project and the studies we have done is that what you see here, right?
Think of Kodak and the digital photography.
Think of, I could give you 50 examples like that. It's always a bad idea not to destroy the own business model and to risk that somebody else does it before you do. Right. The other thing is digital transformation or transformation in general has not something got to do with technology first. Technology's always the second step, right? Then if you, if you understand your problem, if you understand the way the market, your customers change, then technology might be a part of the story, but it's not, not the starting point. Right? And the other thing is you're never ready.
Even if you have a good idea, if it's a good idea, somebody else will try to copy you. That means you have to be the next step ahead. So it's always a good story for young people. As I say to my students, right?
You will never be ready. You've always work. Yeah. It's great. You can always push things along, but you'll never be ready. Right. And the last thing, one central point, at least in the business, the consumer business is the permanent battle, who is the best at the customer interface is who knows the best ways to analyze the data it's transformed in the business models.
And not only just collecting data, set that some people think, and here again, it's not so, so much the technology side, it's the creativity side that decides on success or not now, as you probably have done in many projects in the last 10 years, the normal approach, if you have a normal innovation is you start with the use case, right? You ask your customers, you make design thinking, workshops and so on. And you come to the technology now with disruptive technologies, this is the wrong way, right?
You, you, the enabling function is important at this point where you still should, should ask yourself, what can the technology solve problems? People don't know even yet that they, they have them. Right. So think about, for instance, in the car business, I mentioned, think 10 years ahead, how will the world look like if there are autonomous vehicles, if there are new mobile concepts, if, if it's not sexy anymore, at all, at least in the cities to own a car, what new problems will then arise? And what answers does your company need to give? What are the margins that you lose in this world?
And how can you start now thinking about what you do when, so this is the approach of disruptive innovation, not stick with technology, but start with it. Now, one thing that really has, in my opinion, a lot of potential in this area are the old design patterns.
Yeah. More than 40 years old, you analyze which design patterns were successful in some market, right? And then you can classify a type of problems that was probably successful 20, 25 times, million times in the last 40 years, and then extrapolate what this might mean to your market, to your industry. Right?
And maybe I give you a few examples. No, maybe with, with this one, if, if we then perform workshops, what are probably areas and discuss with people that use blockchain technology, I would classify them roughly in that way, about 50% of the projects where block blockchain technologies used don't make sense at all, right? The technology is not understood. There is not a problem that the blockchain could solve. Just a board member has read something, have a business review or something. Right.
And then it's a good idea maybe for your career, at least in the short term to say, oh, okay, we also have a blockchain to make your boss happy right now with the other 50%, I would say some 25 of them is really a thing with this trusted third party.
You wanna, maybe you have a bank, you have an insurance company or whatsoever that works as trusted third party that earns a lot of money with them. And you have the idea that either their role is substituted right. Or changes completely. That that is one thing.
And this are projects that make, make sense, depending on the market conditions, right. Might be successful or might not. But at least this kind of project makes sense. And then you have another 25% where there is no trust problem. And everybody has high blockchain. If there is no trust, trust problem. And the interesting thing is, even though if you have no trust problem, blockchain can be a part of this solution. If many market participants want that no central party gets powerful. And then you use it as a platform technology where you can have competition and all things.
And project-wide with them like these, we are also doing together with business partners and they make some sense. They are also, they are rice questions who is then running the platform who is making money with it. How is the competition organized?
And that, but this is sort the, the, the other category. Now, one example for the workflow pattern I wanna give you is together with a bank here in Germany, where we looked at the document letter of credit process. If you're not from the banking scene, it's simple question. If you are an exporter and you ship goods over the ocean, you want to be sure that you get your money. And if you're the importer, you wanna be sure that if you pay, you get the goods and that they work, right. And then the banks have established a incredible complex process, which by the way, is well defined.
Right.
And then you can of course, optimize that process using blockchain one example. Yeah. Let me give you some other words, right? Car blockchain approaches, for instance, to organize open mobility systems. I have already introduced together with Hilty. We make projects with the internet of things, world. If all these machines have chips and are connected with the internet. And the third thing I want to talk about is refugees, right? And this is by the way, in example, where you don't have the stress problem between the authorities involved, but still right.
We have a nice project together with the federal office of immigration refugees here in nuremburg north of Munich, where prototype is, is, is established to make sure that all the involved parties, right. Make define steps, according to the rules and, and legislation and so on. And this is another example where you don't have the trust problem between the authorities, but nobody, at least the very, not once that any of these involved parties get too powerful.
Right? And the last thing I want to mention here in this area are these open platforms right here.
I brought you an example together with the startup of the energy innovation hub. We also make the study and just have an application of public funding running, right? Where you just say, I don't want that Google or come manufacturers, or the German railways, or somebody gets this strong central party that is organizing mobility. Maybe in 10 years, we want to have this platform, character and competition on these areas with different approaches. So these are three examples, right? And the interesting thing is now in the last two, three years, blockchain really become a hype theme in Germany.
In other countries, I heard in some discussions in the morning and with lunch, that many companies we are discussing that many years before now in the coalition agreement of our new new government.
We have seven times the world blockchain and an announcement that our government is ready to spend a lot of money in this area. So this is interesting for F Hoover might be interesting for some of you, and maybe we do do something together in this area. So very last slide so that the organizer is relaxed.
Although I am a professor I've never given, talking in 17 minutes, but this, these were the rules. I want to bring you two, these two things, Martin macand, who said, if you have done something for two years, look at it carefully. If you've been something for five years, look at it, especially. And then if you have done something for 10 years, do it differently, right? So if you think what in your companies also in my university, also with fr or for how many things we have done for 10 years in a similar way than today, then you know where the problem is and the wind of change they blow.
And the question is how we react to that. So thanks a lot for your curiosity. Thanks a lot for listening. And I'm looking forward to answering your question. Thanks a lot.
So thank you very much. And maybe let's look now at the questions please. So maybe I should have used the single artist instead of the blue role. We have at least one question. I think it's a very interesting one. So you talked about sort of getting out of the conference zone. Singing ahead. When I look at many companies, I know it is, oh, this, I don't think it's so much my comfort zone. It works well.
I don't want to do the new things. So how can you push your employees?
Absolutely might be many countries. A problem in Germany definitely is. Right. And especially if things work out well, yeah. In the country like Germany and many of our companies, you really have a problem at exactly this point.
And well, this has got something to do with leadership because your problem is the following. If the last one has understood, right, that you have to change to survive, then the money is missing to be successful within that stage.
That my, that means you have to create the crisis as long as you have enough money to master it.
Good point.
I,
This is a question of leadership. Yeah. This is a question of frightening people. This is also a question of showing ways to survive, but then to do it directly and
Exactly, and do it, do it when you can afford to do it. Thank you very much again for your presentation. Excellent. Thank you for being here. Okay.
