Page 19 - DIY INVESTOR MAGAZINE - NOVEMBER 2018
P. 19

       and are able to better tailor products and services. The ability to mass-personalise the news has
elevated both Facebook and Twitter at the expense of newspapers while on-demand or over the top TV has seen Netflix grow its base dramatically while traditional broadcast peers founder.
This same dynamic is clearly playing out elsewhere as algorithms – and increasingly Artificial Intelligence (AI) – replace the need for curated content while
the unprecedented scale of today’s networks fuels disintermediation.
Trusted intermediaries including travel agents, stockbrokers and minicab controllers to name a few, are each falling foul of a better-informed consumer, empowered by their smartphones, price transparency and the so-called network effect.
As a result, past is prologue as it relates to incumbent businesses that now find themselves under siege like never before from new competitors, distribution and pricing models, together with demographic headwinds associated with digital natives – younger consumers brought up during the so-called digital age.
The need to remain both relevant and competitive in an increasingly digital world is driving a so-called digital transformation, the business imperative of being able to respond to the needs of a new generation of consumers, partners and suppliers who expect transactions to be seamless and real-time – Facebook like in experience, Amazon-like in reliability.
Together with a strengthening US economy and aided by tax reforms that have put more money in company coffers, the need for reinvention has resulted in a much- improved IT-spending backdrop with budgets forecast to grow in excess of 6% y/y this year, the highest level this cycle.
While current concerns and trade-war rhetoric may continue to provide buffeting (and increased stock market volatility) disruption and its causes are likely to persist.
While it may be a truism that history books are written by the victors, they are also littered with myriad examples of corporate failure at times of momentous, often technology-driven, change.
We also know that often the most tumultuous periods of change occur after a disappointing initial wave where early expectations cannot be met by immature technology and/or price points that are incompatible with mass adoption.
The second wave of the internet is likely to prove every bit as disruptive as steel, railroads, electricity and automotive once they reach equivalent levels of maturity and ubiquity.
THE SECOND WAVE OF THE INTERNET IS LIKELY TO PROVE EVERY BIT AS DISRUPTIVE AS STEEL, RAILROADS, ELECTRICITY AND AUTOMOTIVE
       19 DIY Investor Magazine | Dec 2018





















































































   17   18   19   20   21