We have already discovered the seven directions on the value proposition side, and in this video, we will explore the first direction on the value architecture side. In this direction, I will show you how introducing a technology can allow you to radically modify your value architecture. We mentioned in our introduction that innovation is not only about technology. However, while technology is not the only means of innovation, it is by far one of the most important and it is the one we are going to explore in this video. Many business models have been reinvented by the introduction of technology, in particular, but not exclusively, linked to the Internet. Thus, it is essential that companies identify or develop technologies that allow for the radical modification of the value architecture and usually therefore, also the radical modification of the value proposition. This direction is often explored by the R&D team, but other members in the company should also be involved in this effort. Developing a technology is obviously often costly, but its implementation may lead to significant cost reductions. Those cost reductions should eventually make up for the investments. Let me give the example of Valtis, a cash transportation company. As you will see, we're not talking about anything digital or the Internet. This company was a small cash transportation company transporting banknotes in France. This cash transportation is usually done in armored vehicles, such as the one you can see here, with armed men. Guns are at the heart of this business since this was seen as the only way to prevent attacks. One day, an employee of Valtis died in an attack and the CEO of this company had to announce his death to the widow. This was so difficult for the CEO that he decided that he would not stay in this business, unless he could get rid of the guns. After a couple of years, he came up with a completely different way of transporting cash. Along with partners, he developed Axytrans, a contrainer that is linked to a GPS system. This container is placed and transported in a completely ordinary, unmarked vehicle. In the event of an attack, the GPS detects either a deviation from the usual route or an attempt to break open the container. In this case, an ink-release system is triggered, smearing the banknotes. This makes the banknotes unusable for the offenders. Thus, the technology has completely modified the value architecture since there is no armored truck anymore and no need to protect the truck. It makes it possible to dispose of firearms and reduce costs at the same time. Part of the decrease in costs has been transferred to the clients through lower price, allowing Valtis to introduce a real game-changing strategy. Over 50% of cash transportation in France is nowadays done thanks to this type of technology. Another, more recent example is Qarnot Computing. This is still a start-up in its experimentation phase, but it is an interesting example of introducing a new technology. Qarnot Computing is trying to introduce a technology that could disrupt the data center industry. Data centers are places where big computers are performing calculations. Those centers are very expensive to maintain since calculations produce heat and the centers need to be cooled down. On the other hand, during winter we need to heat our apartments, and spend a considerable amount every year doing so. Qarnot combines those two issues with its technology. To understand Quarnot’s technology, I suggest that you watch the video available through this link. Did you understand what the technology is enabling? Qarnot has developed radiators that use computing processors as a heat source to heat a room. It can be your room. The device, which is really silent, receives its computing instructions online, using the existing Internet and power grid infrastructure. Qarnot can therefore develop distributed computing capacity and lend it to companies. On the other hand, individuals equipped with the radiators are heated for free. This is the technology, but what about the business model? As a small start-up, it would be very difficult for Qarnot to reach out to individuals in a B2C business. This is why Qarnot partnered with a real estate company and launched a full-scale experiment in 2014, in a social housing complex belonging to the Paris City Council. Approximately 100 homes were refurbished and equipped with Qarnot’s radiators. This decentralized, free source of energy makes it a very interesting example. A new technology introduces a radical change in the value architecture and very often, allows to build a radically new value architecture and value proposition. In the case of Qarnot, the conventional user of a data center can get the calculation at a cheaper price since Qarnot uses the space of individuals who themselves get their heat for free. More recently, Qarnot has gone even further and has released a crypto heater, that allows you to earn crypto currencies while heating. Indeed, the heat is generated by the two graphics cards embedded in the device that mine cryptocurrencies, a blockchain transaction. While heating, you create money. Artificial intelligence is another technology that will transform the value architecture in the coming years. Many bots are already replacing humans in call centers, for example. As always, in conclusion, here are the questions that you can ask yourself when exploring this direction number 8: Do your competitors use a technology that you could integrate? What are the existing technologies in other sectors that you could use? This was our first direction on the value architecture side. Please join me for the next video on direction number 9, the second on the value architecture side.