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