The Disruption of the Infrastructure Industry

Markus Venzin () and Emilia Konert ()
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Markus Venzin: Bocconi University, Innovation
Emilia Konert: Corporate Hangar, Inovation Catalyst

Chapter 5 in Disruption in the Infrastructure Sector, 2020, pp 149-168 from Springer

Abstract: Abstract This chapter does not offer a standard innovation formula to adapt to the rapidly evolving industry ecosystem. Instead we delve into the trends driving major changes and outline options that can lead firms to embrace adaptability in their investment decisions. Investing in infrastructure today is more complex than ever before. Not only is technology changing more rapidly, but regulations, internationalization, consumer behavior, and business models can quickly shift profits and alter social and environmental impact. This chapter aims to provide an understanding of how the infrastructure industry and the profitability of markets within it are evolving. We suggest infrastructure investment firms should create an infrastructure radar to detect disruptive firms, then analyze their business models, and discuss their impact on the industry as well as on other similar firms. By identifying disrupters—i.e. firms that are driving the changes—we show that investment decisions will become more dynamic and require more intelligence in the future. We conclude by recommending that an accelerator fund should be created to allow traditional infrastructure investment funds to continue to successfully invest in infrastructure assets. Such an accelerator would use a modest portion of the total investment volume to (1) protect core investments; (2) create champions by using core investments to speed up the business of start-ups; (3) increase the profitability of investments with an acceptable level of risk.

Date: 2020
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DOI: 10.1007/978-3-030-44667-3_5

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