Robotics - the Ethics of Digital Disruptions

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Referring back to McGrath’s steps to create a disruptive company, Uber is different than from Netflix as the reality is that it’s not financially profitable. It has only been able to provide an average of 41% of the standard taxi fare, through various subsidies and benefits. Further, it is only being supported by immense amounts of capital investments from tech giants in Silicon Valley, such as Jeff Bezos, just long enough for it to create its monopoly, allowing for maximum disruption in the industry. The numbers support this claim. Eric Newcomer (2016) from Bloomberg states, “the company is said to have lost at least $2 billion last year and is on track to lose $3 billion this year.” With an evaluation of $69 billion, Uber, which is larger than both Twitter and General Motors combined, is the definition of a ‘toxic’ Silicon Valley company, who are by no means is running an ethical business.

Businesses nowadays face a novel challenge in this highly competitive tech market in that they must learn to adapt to disruptive technologies. According to Katz and Paap, tech companies learn to function efficiently “to sustain the success of their business models while also incorporating the disruptive innovations, that will be enable them to be competitive in the future” (14). Corporations find this extremely difficult, as they must find ways to manage and internalize both sets of concerns. Katz and Paap continue, “they must simultaneously build internally contradictory and inconsistent structures, competencies and cultures; fostering more efficient and reliable processes while encouraging the experiments and explorations needed to re-create the future. (15)” Although it’s easier to say that companies should simply internalize their disruptions, it is much harder to enforce. Companies seeking to limit disruptions may also use the following techniques: firstly, corporations should monitor the outside technology landscape, in their respective industry to identify technologies that can address the current customer’s better than their own technology. Secondly, tech giants need to start focusing on the needs of their customers, and simply not hunt for a technology that “changes everything”. It’s also important to note that often times, disruptive innovations are created by actions or inactions of dominant competitors.

Finally, if the companies do not attempt to limit their disruptions or compensate citizens through subsidies or other financial means, the government needs to hold firms accountable for damage control when the market is disrupted. It is clear that all levels of government do have the power to hold companies at bay, as exemplified by preventing Amazon from testing autonomous drones on US soil. The government can further limit the negative influence of disruptions by keeping these three points in mind: maintaining awareness of potential disruptors (through predicting specific ones is near impossible), promotion of safe but innovative behaviours and practices, and having resources to quickly act and deal with upcoming disruptors.

There is no doubt that many disruptive innovations are extremely popular amongst the new generation, as many millennials tend to favour Uber’s over taxis, and Netflix over a conventional trip to the movies. Yet, the only way our society can drive forward and reap the benefits of up-and-coming technologies is collaboration at all levels, from consumers, to the municipal government all the way to Silicon Valley itself. A shift away from the mentioned toxic gung ho corporate culture requires working together, accountability, and keeping good ethics in mind. While one can never truly predict the next AirBnB, it is important that no matter what new idea springs up, everyone gets to enjoy its revolutionary benefits, including the companies and consumers themselves.

Works Cited

Barro, J. (2014, November 27). Under Pressure From Uber, Taxi Medallion Prices Are Plummeting. Retrieved December 23, 2016, from http://www.sas.upenn.edu/~holgers/urban/Uber_Taxi_Medallion_Prices.pdf

Cameron, A. (2015). The ethics of digital disruption: Why are so many tech companies toxic workplaces? Retrieved from http://www.abc.net.au/religion/articles/2015/10/20/4335621.htm

Knott, A. M. (2013, April 22). What Netflix and IBM Can Teach Us About Disruption. Retrieved December 24, 2016 from http://www.cnbc.com/id/100653971

McGrath, R. G. (2013, April 22). Recipe for Disruption: Lazy Incumbents. Retrieved December 24, 2016, from http://www.cnbc.com/id/100653837

Newcomer, E. (December 19). Uber's Loss Exceeds $800 Million in Third Quarter on $1.7 Billion in Net Revenue. Retrieved December 21, 2016, from https://www.bloomberg.com/news/articles/2016-12-20/uber-s-loss-exceeds-800-million-in-third-quarter-on-1-7-billion-in-net-revenue

Paap, J., & Katz, R. (2004). Anticipating disruptive innovation. Research-Technology Management, 47(5), 13-22.

Park, N. (2016, December 21). We Ranked Toronto City Council's 10 Worst Motions in 2016, and They're Really Bad | politics. Retrieved December 24, 2016, from http://torontoist.com/2016/12/2016s-10-worst-city-council-motions/

Wingfield, N., & Scott, M. (2016, December 14). In Major Step for Drone Delivery, Amazon Flies Package to Customer in England. Retrieved December 24, 2016, from http://www.nytimes.com/2016/12/14/technology/amazon-drone-england-delivery.html?_r=0