MRSE (1997) in his book The Innovators Dilemma

 MRSE2593 (Technology Management)Semester1, 2017/2018POSTMODULE ASSIGNMENT(DISRUPTIVETECHNOLOGY) LECTURER’SNAMEASSOC.

PROF. DR. ASTUTYBT AMRINDR.

ROSLINA MOHAMMAD                                                STUDENTSDETAILNOR ‘ADILAH BINTIMOHAMAD RAAZALI (MRS141033)     TABLE OF CONTENTS  CHAPTER                                     TITLE                                                             PAGE TABLE OF CONTENTS  2DISRUPTIVE TECHNOLOGY   31.1              Introduction  31.2              Current Trends of Disruptive Technologies  5BLOCKCHAIN TECHNOLOGY   62.1              Introduction  62.2              Hashing            72.3              Digital Signature  82.4              Blockchains & Bitcoin  92.

5              Blockchains Extension  102.6              Blockchains in Tech Companies  102.6.1      21 Incorporation  112.6.

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2      BTCJam   112.6.3      Microsoft Corporation (MSFT) 112.6.4      ProofofExistence  112.7              Implication to Society  12CONCLUSION   13REFERENCES  14                                                                                                                                   DISRUPTIVE TECHNOLOGY1.1        Introduction               Clayton M. Christensen (1997) in hisbook The Innovators Dilemma defines disruptive technology as lacks refinementdue to having performance problems often due to newly introduced, demanded by arestricted audience and may not have a proven real-world application.

McKinseyGlobal Institute (2013) defines disruptive technology as advances thattransform the life, business and global business. Investopia on the other hand,defines disruptive technology as the technology that alters the way businessesoperate significantly that may force different way for business approach,having risk of losing market share or products and services may becomeirrelevant.          Advancement in technology has becomemore challenging from time to time. Not being able to cope with the advancement,the businesses may become the victims as technology moves so rapidly in anydirections.

It provides new entrants to players in upsetting established ordersby enabling new business models thus changing the current way of living andworking. Yu & Hang (2010) reported that disruptive technology is not equivalent todestructive technology. Therefore, by identifying considering the potential newtechnologies, the disruptive powers can be controlled and overcome in theeconomy as well as society.              Figure 1 shows theevolution of disruptive technology.

Figure 1: Evolution of Disruptive Technology Theory.          In his book,Christensen mentions that lots of large corporations are designed to cope withsustaining technologies which make them the best at knowing the market hence,having the instrument to develop existing technologies thus, allow them to stayconnected to the customers. Nevertheless, once the low margin disruptivetechnologies get into the picture, they are having difficulties to capitalizeon the potential efficiencies, cost-saving or new marketing opportunities.Therefore, ii is very likely for a large corporation such as Nokia dismissedthe value of disruptive technologies by Samsung and Apple because it did notfollow the current trends on customers’ demands. By the time, Nokia tried tocope, it is already too late as the technologies of Samsung and Apple alreadymatures and having larger market share. BLOCKCHAINTECHNOLOGY2.

1        Introduction          Don & Alex Tapscott (2016) define the blockchain as an incorruptible digital ledger ofeconomic transactions. The blockchain technology can be programmed to recordnot only financial transactions but also virtually everything of value.Blockchain technology can be understood as duplicated spreadsheet shared acrossa computer network which is   updatedregularly. Blockchain technology is a shared and continually reconcileddatabase which makes it truly public and can be verified easily as it is notstored in a single location. Blockchain technology has no centralism ofinformation to allow hacker to corrupt due to hosted by millions of computersconcurrently as data is available to anyone on the internet. Blockchaintechnology by other means cannot be controlled by a single entity and has nosole point of failure.           Haseeb Rabbani (2017)explained that hashing and digital signatures are the means of existence to theblockchain technology.

Blockchain technology cannot exists without hashing anddigital signatures as hashing provides a platform on the blockchain technologythat everyone agree on the current state of the world  while digital signatures ensure alltransactions are made by the rightful owners only. These two properties are theones who ensure uncorrupted and uncompromised blockchain. 2.

2        Hashing           Haseeb Rabbani (2017)also explained that hashing is where a random amount of data is applied somealgorithm to produce a fixed-size data called the hash. The data may come froma single character up to big data such as an entire novel or the spreadsheet ofa banking history. The hash algorithm takes an infinite inputs of bits beforeapplying some calculations to generate the outputs of infinite number of bits.Hashing is used to verify that any file has not been modified or altered.           In blockchaintechnology, hashes represent the current world state where the entire state ofthe blockchain technology is the input. All the transactions take place willproduce the output of the current world state. All parties involved will agreeon the hash used that the world state is the same one.

Then, using thetransaction inside the first block, the hash first hash is calculated. Newblock calculation is based on the previous block. This is where the blockchainis created thus, no transaction can be tampered is guaranteed. Any modificationcan be easily detected by comparing the hashes. Investopia (2017) added thatever-growing size for the blockchain leads to storage and synchronizationissue. 2.

3        Digital Signature          Digital signaturesare the proof of original owners just like the real signatures. However, it ismore secured as it used cryptography or math. Digital signatures allow trust tobe established whenever users visit any website as the browser can verify theoriginality of the website whenever the connection is made.

As example, whenusers browse for Internet banking, digital signatures will verify whether thewebsite is genuinely from the bank.          A key pair, a publicand private keys are generated by users using an algorithm in adisproportionate encryption system. These keys are related to each otherthrough a mathematical relationship. Public key is disseminated to function asaddress to receive messages from other users where private key is used tosigned messages sent to other users. Private key must be kept confidential. Therecipient verifies the signature of sender using the public key. Therefore,only the account owner transfer the money from the account using the digitalsignature.2.

3        Blockchains & Bitcoin          The first and still the leadingexample of its type, Bitcoin is a cryptocurrency. It is a new form of digitalasset that is said can replace physical currency which is created by thecombination of encryption and peer-to-peer networking. Bitcoin blockchain is anexample of the technology that was invented in 2008 has been operated without asignificant interruption until in 2017. The Guardian reported that nearly USD64 million in Bitcoin Slovenian-based bitcoin mining marketplace NiceHash wasprofessionally hacked with a sophisticated social engineering thus, urging itsusers to change their passwords immediately.

                      Bitcoin transaction is transparentthat is controlled by a secret digital key as the proof that the certain amountof bitcoin is belongs to the owners. The key is similar a password. It allowsaccess to the money where spending means telling the entire network oftransferring the ownership. However, once the key is lost, resetting it isimpossible. So when someone gains the key, total control over the money isgained.

The record of transaction account of who own which bitcoin is calledthe blockchain. Through data mining, a new blocked is added to the blockchainin average of every 10 minutes. 2.

4        Blockchains Extension Investopiavisualized blockchain as the full history of a financial transaction where eachblock is an individual bank statement. Blockchain simplifies businessoperations of all users by aiding as an open electronic ledger as it is adistributed database system. Nowadays, more and more organizations inindustries such as diamonds, music and insurance becomes interested in theblockchain technology due to this reason.           New business models based on theblockchain technology is beginning to replace the expensive and inefficientaccounting and payment networks of conventional banking industry. Goldman Sachsreported that stock market operators could save up to USD 6 billion per year byusing the distributed ledger technology (DLT) by blockchain. The banks iscurrently exploring into this technology due to potential fraud as well as toincrease a significant amount for cost saving as transactions can become muchfaster.           Commonwealth Bank of Australia andWels Fargo & Co (WFC) as the brokers were reported having the firstinternational blockchain transaction worth USD 35000 with Brighann CottonMarketing in October 2016 to procure 88 rolls cotton from US to be sent toChina.

2.5        Blockchain Initiatives inFinancial Industry          Lotsof financial institutions has been funding the research into the methods toimprove blockchain technology in term of efficiency, accuracy and speed whichinclude R3 CEV, a fintech innovation company. The company by using multi-cloud technologyproviders has magnificently trialed five distinct blockchain in parallel and currentlypromoting its financial-graded distributed ledger platform for commercial use, “Corda”.

Bankrolling 2.6        Blockchains in Tech Companies            Tech startups start to adopt theblockchain technology fascinated by the idea of eliminating the brokers andmoving towards decentralization and democratization.2.6.1   21 IncorporationIncorporation is reported has started to leverage the blockchaintechnology into Internet of Thing (IOT) devices where it received USD 116million in 2015 to be used in embedding the Bitcoin chips into connected IOTdevices and cellphones.

2.6.2  BTCJamBTCJamheadquartered in San Francisco is a P2Plending platform specializing inproviding Bitcoin based loans of more than USD 15 million.2.6.3  Microsoft Corporation (MSFT)a)            MSFT formed a partnership witha blockchain firm ConsenSys reacting to its interest in blockchain technology. Theyannounced Ehereum Blockchain as a Service (EBaaS) on the Microsoft’s cloudcomputing platform, Azure, in December 2015 to provide its customers asingle-click cloud-based environment.

They continuously to develop an opensource, blockchain-based identity system for products, people, services andapps in Jun 2016.2.6.4            ProofofExistenceb)            One of the first non-financialcompanies to utilize blockchain technology is ProofofExistence where itprovides a platform to execute contracts to enable a transaction that cannot bereplicated linked to a unique document by using DLT to store encryptedinformation.2.7     Advantages of Blockchains          DLT is very efficient which makes itpossible to streamline internal operations thus, reduce the expenses, mistakesand delays significantly for businesses and bank caused by the traditionalmethods of records reconciliations in these areas:a)     Cheaper costs are associated inmaintaining electronic ledgers compared to conventional accounting systems asthe number of employees can be reduced greatly.

b)     DLT systems is nearly fullyautomated, thus reducing huge numbers of errors by removing repetitive validationsteps.c)     Less capital is being heldagainst the pending transactions risks as processing delays can be minimized.          Blockchain technology reduces the needof intermediaries that can save millions. It allows greater transparency andauditing can be done much easier thus leads to savings as the regulatory compliancecosts in anti-money laundering. Other than that, the cross-border tradesusually take longer processing time due to time-zone issue. However, blockchainsystems allow smart contracts to be set up or payment to be triggered whencertain conditions are met. CONCLUSIONBarriers+in adopting blockchain technology                REFERENCESd)           “The Innovator’sDilemma,” Clayton M.

Christensen (1997).e)            http://whatis.techtarget.com/definition/disruptive-technologyf)             https://www.mckinsey.

com/business-functions/digital-mckinsey/our-insights/disruptive-technologiesg)            Yu, D., & Hang, C. C.

(2010). A Reflective Review of Disruptive Innovation Theory. InternationalJournal of Management Reviews, 12(4), 435–452.https://doi.org/10.1111/j.1468-2370.2009.00272.xh)            https://www.investopedia.com/terms/d/disruptive-technology.aspi)              https://disruptionhub.com/15-disruptive-technology-trends-watch-2017/j)              https://richtopia.com/emerging-technologies/11-disruptive-technology-examplesk)            https://richtopia.com/tech/blockchainl)              https://blockgeeks.com/guides/what-is-blockchain-technology/m)          https://www.investopedia.com/terms/b/blockchain.aspn)            https://www.investopedia.com/news/mapping-bitcoin-interest-us/o)            https://www.computerworld.com/article/3191077/security/what-is-blockchain-the-most-disruptive-tech-in-decades.htmlp)            https://www.forbes.com/sites/insideasia/2017/12/10/why-blockchain-is-real-and-bitcoin-is-a-mirage/#5ad4d86b4215q)            https://www.forbes.com/sites/groupthink/2017/11/28/to-blockchain-or-not-to-blockchain-its-a-valid-question/#19dd84b2229dr)             https://www.theguardian.com/technology/2017/dec/07/bitcoin-64m-cryptocurrency-stolen-hack-attack-marketplace-nicehash-passwordss)             https://www.theguardian.com/technology/2017/nov/11/everything-you-ever-wanted-to-know-about-bitcoin-but-were-to-afraid-to-ask-cryptocurrencies