At the time, the internet was pervasive. Facebook had million users , and Netflix was streaming 2 billion hours of content each quarter. Most people would have said we were finally fully immersed in the technology era and that the internet had changed everything. In other words, the future was here. Uber was founded in and launched its service in Smart players do not necessarily build out their entire vision of the future from top to bottom.
Netflix — while far from a startup in — is also an interesting case. Like Uber and Airbnb, Netflix looked around at the platforms and infrastructure available to them first the USPS, then broadband internet and asked what they could do on top of those platforms that either no one had thought of shipping DVDs or had previously been unfeasible.
In they took the discontinuous leap from technology provider and service to content creator. Now they think of themselves far more as a movie studio like HBO that creates original programming, albeit one with a vast and unique understanding of viewing behavior derived from the analytics of its subscriber base.
This is a recurring pattern of innovation. They look around for inspiration on the problems they can solve for people getting a ride, finding a place to stay, killing time and then leverage the platforms available to them to come at the problem in an entirely new way.
Of course, having the vision is one thing, making it real is another challenge in its own right — hence lesson number two….
For a traditional industrial or service company, making the transition to acting like a software company is a massive undertaking. For example, Uber and its ride-sharing competitors are eating cars. The service Uber provides creates a connection between a person and a car and a person who needs a ride, rather than the old model of selling the person a car.
All across the spectrum, businesses and people are giving up their ownership of tangible assets and software products and exchanging them for the use of services.
The buyer gains benefits of the use of the software and what the software runs on, rather than having to acquire data centers and software to get the usage.
This has a lot of advantages. In the case of cloud and other elastic models, companies can move to much more efficient models because they can reap economies of scale from an asset perspective as well as from a software perspective.
It underlies much of what companies are doing with digital transformation. It gets companies closer to delivering the result rather than getting the components. The nature of services is that it is an intangible offering that creates a tangible result. This is further complicated as services themselves are constantly changing across multiple vectors, such as how the end-user consumes them, the tech stack, operating model and talent model.
It is this intangible quality combined with continuous change which makes this hard for firms to handle. Not spending time focusing on owning and integrating assets is compelling and often irresistible.
Firms that embrace using services are able to avoid the complexity of integrating components and spend their time on how to use the benefits of those services. This allows companies to focus on things that create value for their customers rather than focusing on the components.
It allows companies to spend less time on clutter that comes from owning assets and, instead, focus on creating value. Among the challenges in a services world is a significant complication with services in that companies face a change in velocity across multiple elements and vectors that is much faster than other environments.
And that change is driven by several factors. Lost in Trarclation Focusing the dialogue on this channel, rather than more substantive channels, such as automation, diverts the public debate to unproductive policy options. Walls , The wall. A New York hospital system tests a new way to use telemedicine, where E. Example: air traffic controller.
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