MegatrendsHow Disruptive technologies create new business

opportunities

Spring, 2014

Imran Sayeed

2

Basic Stats

Internet, PC, and Mobile Usage

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Fundamentals Driving Disruption

Today In 5 Years In 10 Years

Processing1 10x 100x

Storage1 32x 1,000x

Bandwidth1 100x 10,000x

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Appears incredible until we look at history!

2000 2012

Processing1 256x

Data Storage1 3,000x

Bandwidth/Connecti

on Speed 1 4,000x

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2.5B Global Internet Users in 2014 —

8% Y/Y Growth*, Driven by Emerging Markets

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In India, Mobile Internet Traffic Surpassed Desktop Internet Usage in May, 2012 — Other Countries to Follow

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Global Snapshot

Towards the start of 2013 – there were 6.8 billion phones,

but only 3.2 billion people in the world have them out of

7.1 billion people.

1.5 billion are smartphones

Source: wearesocial.sg

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Smartphone Growth

Smartphones are expected to outsell features

phones this year for the first time ever

38% of US households are use only mobile

broadband

38% of 2 year olds use mobile devices

Smartphone customers spend an average of 115

minutes per week using social networking

apps on their device.

Source: wearesocial.sg

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There are over 2 million apps at Google Play

and Apple’s App Store.

50 billion Apple and 48 billion Google

apps have been downloaded.

Mobile App World

Source: wearesocial.sg

The most frequently used app in the world

is Google Maps. Followed by

Facebook and YouTube.

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Re-Imagination of Consumer Behavior

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Re-Imagination of Computing Devices

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Re-Imagination of User Interfaces

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Re-Imagination of Computing Operating Systems –

iOS + Android = 45% Share vs. 35% for Windows

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Re-Imagination of Connectivity

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125 Years In, Landlines Were Surpassed by Mobiles in 2002

Today globally there are 7 billion mobile phones and 1.5 billion smartphones

2002 was the birth of the

modern smartphone

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Re-Imagination of Knowledge

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244 Years In, Encyclopedia Britannica Went Out of Print in 2012

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Re-Imagination of News + Information Flow

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Re-Imagination of Magazines

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Re-Imagination of Note Taking

21

Re-Imagination of Content Organization/Aspiration

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Re-Imagination of Files & Folders

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Re-Imagination of Education

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Re-Imagination of Photography

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169 Years In, Standalone Compact Camera Shipments Were Surpassed by Smartphone (with Camera) Shipments in 2008

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Re-Imagination of Navigation + Live Traffic Info

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20+ Years In, Portable Navigation Device Unit Shipments Were Surpassed by Waze User Additions in Q1:12

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Re-Imagination of Cash Registers

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Re-Imagination of Borrowing/Lending Money

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Re-Imagination of Recruiting/Hiring

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Re-Imagination of Signatures

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Re-Imagination of Health Awareness

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Re-Imagination of Door Locks

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Re-Imagination of Thermostats

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Re-Imagination of Data

Data is projected to grow 66% through 2017 to 11.2 Exabytes per month.

Total traffic volumes from 2012 ALONE

exceed all previous years COMBINED.

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12

100% growth in 12 months

1.2 EB

1.0 EB

0.8 EB

0.6 EB

0.4 EB

0.2 EB

Source: wearesocial.sg

Mobile phones are projected to consume

more data this year than PCs, tablets and

other devices.

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Consumer & Enterprise Megatrends

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Mobility

• On many devices (Smartphones, Tablets, SMS)

• In many more places (Airplanes, rural, global, cars)

• Cheaper*

• Faster (processing, bandwidth)

• Smarter (location, context)

• With a lot more functionality, primarily through millions of Apps

Richer, More Interactive Online Experience

• Social networking (general, specialized, open, closed, deal of the day)

• Sharing Economy (AirBnb, Getaround, Parking Panda, Prosper)

• Crowdsourcing

• Multiplayer & social gaming

• Gesture computing & Voice as interfaces

Consumer Megatrends

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Asset-Light Generation

• Music (Spotify vs. CDs)

• Video (Netflix vs. DVDs)

• Textbooks (Amazon Rental vs. College

Bookstore)

• Services (TaskRabbit vs. DIY)

• Housing (Airbnb vs. Hotels)

• Office (Physical vs. Virtual)

• Getting around (Zipcar vs. dedicated car

owners)

• Working (Freelancer vs. Fulltime)

Emerging

• Autonomous cars

• Internet of Things

• Wearables (Fitbit, jawbone, Pebble,

Google Glass etc)

• 3D printing

?

• Alternative payment systems

• Holograms (entertainment, games, user

experience)

Consumer Megatrends

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Cloud

• Increasing adoption of Cloud esp.

Hybrid

• Standard apps (e.g. CRM) via SaaS

• Complex apps via Managed Services

• Cloud assessments and migrations

increasing from 2013

• Personal clouds replace office desktops

Mobility

• BYOD and Dual Persona

• Enterprise App Stores

• Increasing use of HTML5 vs. native app

development

• Mobility becoming a key aspect of every

business process

Big Data

• Actionable information is still elusive

• Predictive analytics (business and

technical) is a hot sub-trend

Enterprise 2.0

• Social Networking (collaboration, KM)

• Increasing use of social media in

enterprise apps

• Inbound marketing

Enterprise Megatrends

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Security & Privacy

• Cloud

• Mobile

• Increasing attacks on corporations

• Big Data -> from personalized to creepy!

Gamification

• Behavior reinforcement

• Skills development

• Solving difficult problems

Emerging

• Digital video (Tele-presence, training)

• Cloud based development environments

• Sharing Economy

Enterprise Megatrends

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Entrepreneurial Opportunities

Entrepreneurial Opportunities?

• Mega-Trends

– Consumer: Sharing economy, Asset Light, Emerging

– Enterprise: Big Data, Enterprise 2.0, Security & Privacy, Gamification,

• Regional

– Copy megatrend in a new region (Social networking in diff countries)

– Create a region-specific software solution (e.g SMS-based payments)

• Developing within an existing platform (Facebook, App Store,

IBM/Microsoft/Oracle) significantly helps

• Startups can be created to take advantage of the above

opportunities a LOT cheaper and faster Continued on next

slide

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The Startup ReDefined

• Ideation

– Quirky

• Funding

– Kickstarter

– AngelList

• Product Development

– Github, IAAS platforms, Freelancer, Offshore

• People

– Recruiting via LinkedIn

– Virtual teams meet via Skype and Google Hangouts

• Marketing

– Inbound Marketing (e.g via Hubspot)

• Distribution

– App Stores

• Billing & Finance

– Zuora43

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• Time it took to reach 50MM users

• Radio – 38 years

• Television – 13 years

• Internet – 4 years

• FB – 3.5 years

• Instagram – 6 months

• Angry Birds – 35 days

• Faster innovation in the consumer space

• Faster adoption of consumer trends by the enterprise

• Faster maturation of startups taking advantage of the above

• Thus the entire Cycle of Innovation is becoming faster…and

will continue to do so for the foreseeable future!

Summary