On building around technology…
Great video of a presentation by Benedict Evans at a Bloomberg conference, on the way that mobile technology (especially) is changing our world.
Essentially, those disrupting the space are not necessarily finding new business sectors to be in, rather, they are using new technology to improve the way their business is designed. The availability of cheap technology, powerful mobile devices and easy access to a global audience means that the no longer need to think about licensing and exiting to peers.
Key take-outs for me:
- With each new wave of technology, a host of companies are created, built around the technology of that time (colour printing – Condé Nast, Internet – Buzzfeed)
- The disruptors themselves are not new, but bow achieve the same thing IS
- Crashing costs of technology and ready access to global, mobile audiences allowing smaller tech businesses to go it alone – Global SMS hit 7.5trln messages in 2014. WhatsApp doing 7.2trln with just 30 people
- Fundamental shift towards companies that are built around current technology (instead of just making or buying-in technology)
- Amazon – perfect example of a retailer built around technology (and continues to invest every penny it can at the expense of profit) which seeks to take as much of the physical retail experience online – at the expense of profit (for now)
- Tech is outgrowing the technology industry – technology creators are becoming what would have been their old customers – Uber and Air BnB are using tech to make it them travel and holiday companies
- When tech is fully adopted, it disappears – Railways, Steel, Software – all things that are still around but are rarely discussed and searched for. Mobile (and social media I’d argue) is going the same way.
Of course, Benedict delivers this much more effectively and knowledgeably than I ever could, so do watch on!