The explosion of data is enabling disruptions

Mrutyunjay Mahapatra, Member Board Of Directors and Chairman Audit Committee, Reserve Bank Innovation Hub (RBIH)

"As you work, travel, engage, interact, strategize and position your organizations, things based on which you are doing these things are changing. When there are many moving parts, how do we deal with it? So, what we need to understand is that the world is changing.

Disruption is a disturbance or a problem which interrupts an event, activity or a process. It is not simply disturbing, but the action completely changes this traditional way that an industry or market operates by using new methods or technology.

We will not be looking at disruptions in a common-sense way. It is fashionable to use AI, disruption, and digital transformation, but we must understand what exactly it is. So, disruption are two things - one, it must do a disturbance, an interruption and the action has to change the traditional way completely.

Earlier, when you were driving a car, you were just driving a car. Today, your car has a multitude of computers. As you turn your steering wheel, a chip gives the indication based on the pressure on your steering wheel as to which direction you want to turn, it is the so-called power steering. In most modern cars today, you can start it using your mobile phone. What is the result? The result is that data is getting captured. Today you will see advertisements where daily insurance is available, based on the past 365 days rolling average of your driving habit - the amount you are driving, where are you driving, whether you are caught in the traffic, the insurance premiums could be fixed. These are disruptions. So, the first thing is that the explosion of data is enabling these things. Second, technology is there to harness this. Today, for example, every moment is shared in social media because suddenly the camera facility is available on your mobile phone. So, availability of technology, data, and the growing expectation of the consumer. Disruption is coming because all the moving parts are ready."