Today’s leaders capture three things in order to take advantage of the new wave of stream digital potential heading there way:
First we saw the dot-com era which made information ubiquitous while bringing down the transaction costs. Companies that banked on consolidating and selling information such as the Encyclopedia Britannica lost out to Microsoft Encarta which basically put their information on a CD for free!
Then came web 2.0 where large self-organizing communities got together to create things of value such as the Linux open source and Wikipedia.
Companies that could not accommodate this in their business models like Blockbuster lost out because they could not do as much as the communities could do. Netflix leveraged technology not only to deliver a large inventory of movies but also to understood their customers better; allowing them to offer recommendations.
Next on the horizon are large interconnected ecosystems. Different nodes in these ecosystems will play different roles simultaneously sometimes collaborating and sometimes competing with the same entities in the ecosystem. On one hand these ecosystems can be is very large and not really controlled by one company but on the other the nodes are made up of entities that could be potentially very small.
There are a few emerging examples who’s going to win in this space is anyone’s guess?
With a mounted solar panel or a farmland with the windmill. Individuals can generate electricity and supply it to the grid. Other business entities will empower such individuals by facilitating transactions much like what Uber is doing today with cars. However competition may be fierce.
Traditional companies will still play a part in this new ecosystem but their roles will change drastically. In other words business models will change and leaders need to know which pieces have to be protected which repurposed and which abandoned to define itself in the new ecosystem.
Here is a sense of changes happening in the digital world communication computing and storage will be cheap.
Taking these factors into account it opens up a whole world of possibilities! If your organization is dynamic and can adapt it will find more and more great places to be in this ecosystem if not it’ll be irrelevant.
For example, to explore say your organization sells auto insurance here’s the future cars have a lot of sensors so instead of attaching a special device to track an individual’s driving habits they are instead integrated. Moreover with hundreds of other sensors in the car; car manufacturers can integrate all this information. All car related information companies like Google can track the car’s location, where it’s parked, how long the drive to work is and who owns the house where the car is parked. This will all be customer information.
If companies collaborate it’s possible to have more real-time and up-to-date information than your organization. Essentially they can evaluate risks much more accurately and make more money even if they offer insurance premiums at a cheaper rate. And if cars become self-driving they can easily become shareable.
We are steadily moving toward a world where data is immense, linked, cheap, noisy and shared an this is going to disrupt the status quo of business and economies that don’t anticipate treads and changes and adapt accordingly; so make sure you and your business is ready.
Hope this helps…