In this issue:
Corporate Innovation and Innovation Strategy:
- What Amazon Gets About Innovation That Google Doesn’t
- 3 Proven Strategies that let big companies move as fast as start-ups
- 9 Tech trends that will make billions of dollars starting in 2017
- AI Agents Like Alexa, Siri and M will create the first trillion dollar company
Amazon is beating Google at the connected-home game because of its radical approach to corporate innovation.On Tuesday, Google parent company, Alphabet Inc., unveiled Home—its answer to Amazon Echo. So Google is now a player in the growing market of devices connecting the homes of millions of Americans.According to estimates by BI Intelligence, the connected-home market will grow at a compound annual rate of 67% over the next five years, much faster than the smartphone or tablet market. The total devices shipped will eventually hit 1.8 billion by 2019. Broadly speaking, connected-home devices include smart home appliances (such as washers, dryers, and refrigerators), safety and security systems (monitors, cameras, and alarm systems), and energy equipment (smart thermostats and smart lighting).
From top execs from GE, GM, and DDB Together, General Electric, General Motors, and advertising agency DDB have been around for a total of 299 years. But amid a digital revolution and an era of “fail fast,” all three are trying to defy their age. Speaking at the Fortune Most Powerful Summit on Tuesday, executives key to each company’s transformation discussed how to benefit from a long legacy while stillembracing disruption. Here are their top tips: Beth Comstock, vice chair, General Electric: Don’t just add new ideas and businesses. You have to strip away the old, too. After the financial crisis General Electric added more layers and resources as it focused intensely on the industrial parts of the business.
Banks collaborating with fintechs for mutual benefit has long been the preferred narrative when discussing the future of financial services. But this narrative may soon need to be updated, according to data from a new study by IDC and SAP. While a third of global banks continue to view fintechs as collaborators, nearly a quarter now see them as acquisition targets. The survey also showed that there are notable differences between how banks in different regions feel toward fintechs: Worldwide, six out of ten banks would partner with a fintech. Of that 60%, 34% would collaborate with a fintech, while 25% would consider acquiring one. Banks in Asia-Pacific are keenest to acquire fintechs. Thirty-one percent of banks said they view fintechs as acquisition targets, while banks in North America were similarly keen, with 30% seeing fintechs this way.
A friend of mine has spent more than the value of his San Antonio home on Amazon Prime in the last five years. That is precisely why the next big battlefield for marketing and advertisinglies with artificially intelligent digital agents like Alexa, Siri, Google Assistant, Facebook M, and Cortana. And it’s why the company that cracks AI-powered agents will be the next trillion-dollar corporation. Every communications technology that has ever been invented has been seized by brands as a new way to connect with customers.
The financial services industry is facing a wave of digital disruption that is starting to reshape the sector. The Fintech 100 celebrates the top companies this bold new space: the 50 leading established players creating change within financial services, and 50 of the emerging fintech stars of tomorrow. The Fintech 100 offers an in-depth view of the most exciting startups and organisations taking advantage of technology to revolutionise the industry. The report is a collaborative effort between H2 Ventures and KPMG.
Over the past six months, I’ve been exploring how “saving people money” extends beyond how we spend money, but also how we manage our money (or for many of us, our debts). I pulled some research and thinking together in the deck below, which I presented at Greylock’s annual LP meeting this past summer. In it, I outline why I think Americans, particularly young Americans (uh-oh, the dreaded buzzword: millennials!), have a burning need for new financial products, and why the timing is ripe for a new generation of startups. As always, these thoughts are evolving so if you have any comments / thoughts / ideas, I’m all ears (and reachable via email at tavel at greylock dot com).