What will happen on this last factor needed in the combination lock? Start changing their behavior. By the way, when going from this process over to this process, there is a reason. What is the reason? Most often we say it's because of digitalisation, and yes it is. It's digital tools that have made a new system far more efficient, towards end customers compared to before. But the thing is, it's not only digitalisation that does it. So, if we look on it under the surface, we will realize, after a while, that it's actually several things that need to happen in the same time for this whole process to become. Digitalisation is one extremely important, meaning new technologies needed for it, but it's not enough. So technology's role here is actually more like, the match into a fire, but it's not the fire as such. What we'll also need exactly for this cheap process to happen, is that we need customers who's changed their preferences. Then we quite often need new kinds of actors, and new kind of business modes. That's actually what we've seen in the music industry. It's not only that we can have digital tools to get access to a streaming services, we have new kinds of actors like for instance, Spotify that i did mention, or Apple Music, or Amazon, or Tencent, or T Series or well, it depends on where you are on the globe, but it's in quite a lot of them nowadays to be found. On top of that, we also quite often need new business models. The thing is, I don't pay per record anymore, I subscribe all records. So it's more like a combination lock, and this explains quite a lot if you look in other industries that, quite a lot of experts have claimed are in a situation that they should be disrupted, but haven't disrupted yet. We have new technology. We have new technology for instance on how to make a new health care system, a new finances system, a new educational system. But it still hasn't happened, and by the way we also find a lot of new kinds of actors entering in this industry. Still, no major disruptive situations as in the music industry, has happened yet. We also actually have new kinds of business models in these industries, still it hasn't happened. So what is the reason for it not happening? While a clue could be actually to look on customers. Customers are actually fairly satisfied with the existing system the way it is. Then the open question is, of course, what will happen when this last factor needed in the combination lock start changing their behavior? Now, if you're looking on the digital tools, it's quite often said that there's nothing new here. In some sense this is correct, I mean computers, how long have we have them? Well, it depends on how we count it, but we could at least go back to the late 1800's, an industry or factory work with computer tools since then. But how did we do it? Well, if we look on it, computers have existed far longer time than they've entered into industry, and the main reason was that it was too complicated, too expensive, to use them. It was actually not until the 1950's with output companies like IBM, Hewlett-Packard, and the other ones that you might have heard of, that actually, computers entered into industry. Because they were cheap and easy to use enough. That's when they entered. What did we do with computers at that time? Well roughly speaking, we work with productivity, meaning continuing doing what we've already been doing but faster, cheaper more efficient, if you like. A good case of that is book-keeping. We took a manual bookkeeping process and made it digital. Which means that we could cut down on costs in order to make bookkeeping, and make it more stable, and more efficient. But we continue doing bookkeeping roughly speaking in the same way as before. We increased productivity. Looking on what we do with digital tools today is still that we do them, or we use them in order to increase productivity, and we actually still should do. But what's happened during the road, is something more. So, if we go further on in time, after the 1950's and 1960's and 1970's, roughly speaking when the internet came, it became possible to do another thing, a second thing with computers and that I call business development. The difference here is, productivity is continuing doing what we already had been doing. Business development is doing things that we could not do before. In the early days of the Internet, we used it mainly as a productivity tool. For instance, we took a business card and made it digital, that's the first website we did so to speak. But after a while we realized that we actually could develop our business with that kind of internet connections. I mean, that's where the e-shopping industry is today. So, now we actually have two possible ways to utilize digital tools, increase productivity, and or increase business development. But then actually the digital development had continued. Roughly speaking, when we got these ones, something more became possible to do with digital tools, and that I call restructuring. Restructuring industries, restructuring companies, restructuring organizations. That seems to be what the time period that we're in now. So today we can do three things with digitalisation, increase productivity, increase business development, or and restructure fundamentally, and here we have companies like Amazon, Google, Alibaba popping up the scene. The thing is, restructuring is something fundamentally different than working with the productivity, or working with business development. Restructuring, a way to get a picture of what it means, it roughly explaining it would be like, close your eyes for a second, imagine that you have an industry in front of you. Imagine that you know all you can do with tools like this, and come up with a sketch on how the industry should look. That's likely very close to the kind of industry structure we find in the end, when these disrupted processes have played out for a while.
