With the press overhyping 3D printing, virtual reality, and Bitcoin, it’s hard for CIOs to track the startup trends impacting business today. Below are two trends we see startups and their investors focused on, and a future trend we expect to gain interest in the next 12 to 24 months that CIOs should care about.
Self-service business models disrupting industries. Startups are coming up with creative ways to reengineer cumbersome analog business processes with technology. Uber uses cloud, mobile, and analytics to recreate and bypass parts of the taxi/private car value chain. It connects customers directly to drivers, and uses data and analytics to make more efficient use of vehicle capacity. Other examples of startups developing new approaches to old industry processes include Oscar in health insurance and Simple in retail banking. What’s next? As 3D printers and connected products become more mainstream, and digital is further embedded in the physical world, we’ll see entrepreneurs apply self-service to new markets. Sols hopes to shake up orthotics by allowing customers to customize and print custom-insoles on 3D printers.
Lenovo’s made three strategic moves in just one month: 1) Buying IBM’s x86 server business, 2) Reorging into four business units – most importantly including one called “ecosystem and cloud group”, and 3) Buying Motorola Mobility. The later two are driven by the mobile mind shift – the increasing expectation of individuals that they can access information and service, in context, in their moment of need. Smartphones are central to that – as are the ecosystem and cloud services that deliver value through the smartphones.
Lenovo has stated intentions to become a leading smartphone maker globally, building on their leading position in the China market. Buying Motorola Mobility is a much quicker way for Lenovo to access the premium smartphone market with a leading Google Android (not forked Android) offering - than trying to do it with their existing design teams and brand reach. Using Motorola, just as Lenovo used the IBM ThinkPad brand, to gain quick credibility and access to desirable markets, and built critical mass makes a lot of sense.
But Motorola has not been shooting the lights out with designs or sales volumes in smartphones. So the value is simply in brand recognition to achieve market recognition faster - and to dramatically expand the design and marketing team with talent experienced at US and Western markets.
I’ve been experimenting for the past year or so with several proactive assistant apps to guide my day — they remind me to get on conference calls with clients, offer to text participants if I'm running late to an in-person lunch, and keep me in touch with friends and colleagues. Some of these apps also integrate Salesforce, Yammer, and BaseCamp for job-specific context and assistance.
Among the most popular apps, Google Now personalizes recommendations and assistance by applying predictive analytics to data stored in email, contacts, calendar, social, docs, and other types of online services users opt in. Other examples include Tipbit applying predictive analytics to make a more intelligent inbox, and EasilyDo using the notification system to recommend ways to automate common everyday tasks. Expect Labs is tackling this space from the other end of the spectrum, offering an intelligent assistance engine for enterprises to plug into and add proactive features to their own apps.
Here’s what we think:
• Vendors will experience burnouts and early customer frustration, much like in voice recognition. In the music industry, it’s said that an artist is only as good as her last hit. We saw that analogy apply to voice recognition when users got frustrated at Siri as soon as she failed once on them. Expect a similar dynamic with all types of predictive apps.
How much stuff do you own? The answer for most people ranges from a few changes of clothing to a large house full of possessions – your material self. It turns out that most of us also have a digital self – the information and items we create or that others collect about us. It is your footprint, your impact on the digital world. Without a digital self, you don’t exist in the world of computers and the Internet.
The era of Internet has spawned riotous new forms of business disruption as cheap tools and services combined with Internet reach and social media have empowered anyone on the planet to compete with the largest, most established businesses. James McQuivey’s reports and book on digital disruption highlight the fast rise of new hardware devices such as Microsoft’s Kinect and Apple’s iPad, and the fast mainstreaming of new Internet services such as Dropbox, Twitter, and Facebook. Companies in the business of retail, books, movies, and music have been toppled or transformed, with more to come.