TY - CHAP
T1 - Creative destruction
AU - Moloi, Tankiso
AU - Marwala, Tshilidzi
N1 - Publisher Copyright:
© 2020, Springer Nature Switzerland AG.
PY - 2020
Y1 - 2020
N2 - In this chapter, we discuss creative destruction theory. This is defined as the process by which information and communication technology destroys previous technological solutions and lays waste old companies in order to make room for the new companies. One may think about the creative destruction in recent times, where searches were previously done through sites such as “HotBot, Ananzi Excite, WebCrawler, Ask Jeeves, Ask.com, Yahoo, Dogpile, AltaVista, Lycos, MSN Search, Bing, AOL Search, Infoseek, Go.com, Netscape, MetaCrawler” (Schwartz in A look back at the old search engines, 2009.), all which have been replaced by Google. Google is the largest search engine today. Large amounts of data brought about the advent of Internet of Things can mean that there are plenty insights that companies that were affected by the gayle of destruction rarely knew it existed. Companies in the coalface would have had enormous data of people that use it; we think that with the AI-powered analytics, the idea of creative destruction as espoused by Schumpeter (1942) would hold as far as technology is concerned. However, companies that would be pioneers of the time may not necessarily fold and close doors. With regard to the impact of AI to the creative destruction theory, our view is that since data is the new gold, we think that companies that take advantage of AI for the purpose of advanced data analytics would be able to deploy this for the purpose of analysing large amounts of data brought about by the advent of the Internet of Things. Our hypothesis is that the above can only mean that there are plenty of insights for those companies in the coalface; the gayle of destruction in this regard will not bring about new entrepreneurs or new companies but the same companies and insights from data, and predictive analytics will show them which technology is to be destroyed and what it needs to be replaced with. Whatever the replacement will be, it will be based on troves of data, which allows these companies and gives them the competitive advantage to understand their market and where their market is headed.
AB - In this chapter, we discuss creative destruction theory. This is defined as the process by which information and communication technology destroys previous technological solutions and lays waste old companies in order to make room for the new companies. One may think about the creative destruction in recent times, where searches were previously done through sites such as “HotBot, Ananzi Excite, WebCrawler, Ask Jeeves, Ask.com, Yahoo, Dogpile, AltaVista, Lycos, MSN Search, Bing, AOL Search, Infoseek, Go.com, Netscape, MetaCrawler” (Schwartz in A look back at the old search engines, 2009.), all which have been replaced by Google. Google is the largest search engine today. Large amounts of data brought about the advent of Internet of Things can mean that there are plenty insights that companies that were affected by the gayle of destruction rarely knew it existed. Companies in the coalface would have had enormous data of people that use it; we think that with the AI-powered analytics, the idea of creative destruction as espoused by Schumpeter (1942) would hold as far as technology is concerned. However, companies that would be pioneers of the time may not necessarily fold and close doors. With regard to the impact of AI to the creative destruction theory, our view is that since data is the new gold, we think that companies that take advantage of AI for the purpose of advanced data analytics would be able to deploy this for the purpose of analysing large amounts of data brought about by the advent of the Internet of Things. Our hypothesis is that the above can only mean that there are plenty of insights for those companies in the coalface; the gayle of destruction in this regard will not bring about new entrepreneurs or new companies but the same companies and insights from data, and predictive analytics will show them which technology is to be destroyed and what it needs to be replaced with. Whatever the replacement will be, it will be based on troves of data, which allows these companies and gives them the competitive advantage to understand their market and where their market is headed.
UR - http://www.scopus.com/inward/record.url?scp=85085211663&partnerID=8YFLogxK
U2 - 10.1007/978-3-030-42962-1_10
DO - 10.1007/978-3-030-42962-1_10
M3 - Chapter
AN - SCOPUS:85085211663
T3 - Advanced Information and Knowledge Processing
SP - 89
EP - 94
BT - Advanced Information and Knowledge Processing
PB - Springer
ER -