11 May 2012
My thoughts #AICD – Fast, frictionless and disruptive with Mark #Pesce #FutureSt & Bruce #Linn http://wp.me/p2g64Q-2a
- 4.5 iPhones sold per second
- A wave of business interruption occurring
- The change is irreversible but we don’t know what the full change is
- This means we can shape the change
- We all have multiple connected devices, but business hasn’t changed their business to cater for this
- We are connected to 5B people but we don’t have anything to say
- Need to pay notice of the signals coming out to the market, so we need to listen
- Smart phones are the fastest selling device in history
An Indian Fisherman Story
- Indian Coast, many ports, many fisherman picked a port to sell fish at
- Some ports got too many fish and other not enough and hence high and low prices
- Mobile connection occurred and a fisherman went to the port that had less fish and hence got better price
- Months later the whole industry had connection and the port all served, maximising income to all.
- Phone paid back by all in months
An US Limo Company – Uber
- Need a booking for a limo as opposed to a taxi
- An app was developed for limos and customers
- Now has disrupted the taxi market across many cities
- Limo drivers doubled their income and up to 90% utilisation
- The capital cost a was minimal, no asset outlay, utilised an under utilised market, the limos
- Created a cheap business model with a great return
- Could work with logistics eg backloading
Kenyans – Kazi 560
- Poor African Country
- Can’t afford to be part of the job market
- But have access to the mobile phones
- Kazi 560 is an app to links job seekers with employers
- Low marketing costs, low search costs
- Becomes a connected market
Airtasker Australia
- Browse available work
- Connect labour and labour seekers via app
- Post work wanted, people respond and work awarded
- Could be used to get a lift from an airport when no taxis available, much the way it works in Russia, where every car is a taxi
Kick Starter
- Crowd Funding eg Kick Starter get capital when idea is launched and not when it hits markets
- Will change the approach of an IPO
SONY
- Currently suffering big time
- They lost touch
MICROSOFT
- Will they exist in the future
- If Windows 8 doesn’t work they will be irrelevant
- Area decade behind others
Vodaphone
- Skunworks
- Take a few people to innovate and huge company
- Mobile payment system in Kenya
- Mpesa a payment system was the result
- Money paid to shop, transferred via msm and recovered at another store
- 65% of country has an account
- The countries bank are suffering
- Created a financial system to the worlds poorest
Canada Mint
- MintChip
- Chip that holds funds and can transfer cash, but is not connected to banks
- Have invited developer to use the Mintchip
- Might challenge PayPal and others
- Worth watch to see if it gets traction
The cornerstones of business (New Entry Forces)
- Time – In time and when committed, no late delivery
- Territory – Communication is no global, available everyway, but location services can only be sold locally
- Talent – Can teach most people anything, need talented people in companies, companies being brought for their people
- Trust – Only do contracts with those we can see and trust. If you are trusted people will work with you.
- Tongue – English is world language, but Mandarin and Arabic are billions. We need to be able to translate to work locally
- Tension – Some people don’t get along, need to understand and deal with this
What’s it all mean?
- No staffing, compliance and regulatory issues in online environment
- Low capital requirements
- If you don’t keep an eye on the movement you will lose
- Innovation coming out of the developing world
- India and Africa will out innovate the rest the world
- Banking is necessary but banks are not, lot of small organisations providing the services of banks
- Pull them together and have a virtual bank
- Traditionally we smother innovations as they are against the norm
- Innovations and productivity gain needs protection to get ahead
- Book “the Lean Startup” is a worthwhile read
- Organisations need to create many “spunkworks” projects
- Innovation without disruption does not work
- Businesses need to change today, Boom or Bust
Questions
- Directors need to have a pulse and understand what might hurt and what might be an opportunity in the future
- Biggest changes in Medical is coming out of India, they are building the things the US used to build
- Nano technology will not have a good effect for 10-15 years
- Will be able to 3D print tissues
- The effect of Crowdsourcing on professional services? Works well on advisory site. Room for people in an Consulting Bases??
- Need papers on how the connected world affects our organisations.
- Invest in Angel Investment
- Taxes / Customs / Approvals – A connected world will change how we do and control trade
