Exponential Technologies that were once considered science fiction are becoming mainstream. Greater access to knowledge, funding, and digital distribution platforms are decreasing time to scale and redefining traditional business models. However, we still face massive global challenges: water, food, healthcare and energy. These significant challenges, however, present considerable opportunities.
Our Key Takeaways
First-to-market companies with the critical mass advantage survive
A projected 40% of today's Fortune 500 companies will cease to exist in 10 years. Technology speeds up our ability to explore and create new, breakthrough technology. It is not enough to simply keep up and try to survive.
Inexpensive energy, coming soon, from developing nations
The massive expansion of alternative power sources has allowed wind and solar energy to undercut the costs of natural gas and coal. Approximately 1.5 billion people do not have access to electricity, many of whom inhabit the "sunniest" regions. Thanks to new and improving generation and storage technologies, their economic viability could change with new energy sources.
3-D printing, Self-driving, and AI: Elementary my dear artificial Watson
Local Motors introduced "Olli," the world's first 3D-printed, self-driving vehicle, featuring IBM's Watson technology. Watson allows passengers to interact with the vehicle, giving directions or asking advice about local attractions.
Chinese tech investments continue to experience steady increase
A vast amount of technology requires a power supply and computer chips. China is investing $150 billion in developing a world-class semiconductor industry, an integral component used in manufacturing chips for every electronic device.
How innovation in technology can disrupt our economy
Disruption is created by innovative thinking that requires comfort in knowing that failure is part of the process. Companies who have adopted new disruptive business models are changing the global business landscape.
Examples of companies creating comfort while causing disruption:
- Airbnb: Owns no real estate, but is the world's largest accommodation provider
- Alibaba: Owns no inventory, but is the world's most valuable retailer
- Facebook: Creates no content, but is the world's most popular media owner
- Uber: Owns no vehicles, but is the world's largest taxi company
Bottom Line
We remain focused on companies positioned to capitalise on exponential growth technologies.